2009 Sustainability Report

(1)

2009

(2)

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.

Introduction

Princess Cruises is a subsidiary of Carnival Corporation & plc, whose cruise brands are dedicated to being responsible corporate citizens.

(4)

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

(5)

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

• 315 ports worldwide

• 115 unique itineraries

• Crew from 77 countries

• 1.3 million passengers from 180 countries

• 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

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,

(6)

Our Company

Princess Cruises Profile

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,

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 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.

(7)

Our Company

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:

Europe

The Exotics

Asia, Africa & India • Australia & New Zealand Hawaii, Tahiti & South Pacific • South America World Cruises

Alaska

The Americas

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.

(8)

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.

Direct to the Wilderness Rail Service®

Alaska Cruisetour

(9)

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. 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

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.

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.

Our Company

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.

(10)

Our Company

A Timeline of Milestones in Princess Cruises History

1965

• Company founder Stanley B. McDonald charters Princess Patricia and forms Princess Cruises. The first winter season of Mexico cruises starts in November

1967

• Princess Italia (one of the first modern ships built specifically for cruise vacations) chartered

1968

• Princess Carla chartered

• Princess Cruises’ now-famous “seawitch” logo makes first appearance

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

A Timeline of Milestones in Princess Cruises History

1989

• Star Princess joins fleet. With this ship, Princess introduces concept of affordable private balcony cabins, expanding this feature beyond suites

1990

• Crown Princess joins fleet

• Kenai Princess Wilderness Lodge opens in Alaska

1991

• Regal Princess joins fleet

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

(11)

Our Company

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.

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.

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.

(12)

Our Values

Strong companies are guided by shared principles that reflect their essential character and culture. These core values are a compass providing direction and inspiration to employees about what is truly important to the organization.

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

on different experiences, talents, and perspectives to produce better ideas for our business and our customers.

We Innovate.

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.

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.

(13)

We take seriously the consideration of the individuals, organizations and other companies that comprise our stakeholders. We have identified several distinct groups of stakeholders which include:

Our Employees

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 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.

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. Corporate Shareholders

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.

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

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.

(14)

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.

(15)

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)

Pacific Princess 30,277 680 1999 (built)

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.

(16)

Our Ships

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,

(17)

Our Ships

Safety Standards

Safety Management System

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.

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.

Shipboard Safety Committees

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.

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.

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.

(18)

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, computer-based 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 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

Shipboard fire fighting teams regularly train and drill

(19)

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.

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

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.

(20)

Our Ships

Safety Standards

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.

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

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. 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.

(21)

Our Ships

Safety Standards • Health

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).

Health

Public Health

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

(22)

Our Ships

Health

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 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.

(23)

Our Ships

Health • Shore Excursions

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.

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

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.

(24)

Princess Cruises makes its living on the oceans, and therefore we are committed to environmental 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

Environmental Management System

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. 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

(25)

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. 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.

Employees at all levels of our organization are

responsible for ensuring that environmental concerns

are a key part of our planning and decision-making process, and for guaranteeing that environmental practices are executed fleetwide.

Regulatory Framework

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.

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:

(26)

Our Planet

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 foreffluent 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 dischargesincidental 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

(27)

Our Planet

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 transporta-tion 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)

(28)

Our Planet

Limits on fuel

sulfur content Requires compliancecertificate; 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.

(29)

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.

(30)

Our Planet

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.

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.

Cooking oil prepared for collection

A sign on Cape Eleuthera describes the program

(31)

Our Planet

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 appro

2009 Sustainability Report

Table of Contents

Introduction

Our Company

• 115 unique itineraries

Our Company

Our Company

Alaska

Our Company

Our Company

A Timeline of Milestones in Princess Cruises History

A Timeline of Milestones in Princess Cruises History

Our Company

Our Values

Our Stakeholders

Our Ships

Our Ships

SOLAS 2010

Our Ships

Our Ships

Our Ships

Our Ships

Health

Our Ships

Our Ships

Deployment Decisions

Our Approach to

Our Planet

Our Planet

Our Planet

Our Planet

Our Planet

Our Planet

Our Planet