Carnival Corp explains how it’s going green
Carnival Corporation, the world’s largest leisure travel company, recently shone a light on its emission management strategy as it looks to make the cruise line industry more sustainable. Speaking at a roundtable industry debate in London last month, the company’s senior vice president of maritime affairs, Tom Strang, told listeners that: “sustainability is core for our business. We are committed to being responsible citizens as without clean destinations we do not have a product in the future.”
Carnival Corp’s share price has risen by 28% year to date
SOURCE: Yahoo Finance
Carnival Corp has set a number of sustainability goals for 2020, and Strang said that two are paramount: reducing its carbon footprint and deploying exhaust gas cleaning systems.
To achieve the first of these goals, the company is championing the use of Liquefied Natural Gas (LNG). Strang explained why during the talk: “We are looking at technology for the future and LNG future-proofs us. It has the best emissions profile of any fossil fuel and meets and exceeds all current [regulatory] requirements and those in the foreseeable future. We are not saying it is a silver bullet but goes a long way with regards to emissions profile reductions.”
The company’s other goal is to clean up its exhaust fumes using scrubbers, and it’s already implemented them widely across its fleet. Strang said that 59% of the company’s ships are currently fitted with them and that Carnival’s experience with the technology validates their use:
“We believe the technology delivers a very good product. It has taken us a long time for us to get to where we need to, but we are there. We are working very closely with regulators to make sure that the [scrubber’s] wash water meets and exceeds all current regulatory requirements. We have had this independently verified.”
Carnival is betting on green technology for three very good reasons. The first is that Carnival’s business model simply doesn’t make sense without good environments to enjoy. The second is that greener energy, in the long run, will almost certainly be a cost cutter (LNG is already a cheap alternative to other fossil fuels). And the third is that consumers are more environmentally aware than ever before. Taken together, that makes a great case for better business.
Dominion holds Carnival Corporation in its Global Trends Luxury Fund.
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