Costa Cruises Releases Fourth Sustainability Report

Highlights Include Reduced Consumption and Increased Water Recycling 

The fourth edition of Costa Cruises’ Sustainability Report is now available online at www.costacruises.com. It was drafted in accordance with the Global Reporting Initiative (GRI) Guidelines. Highlights of Costa’s environmental performance in 2008 include a 5% reduction in fuel consumption per mile sailed and in consumption of potable water per person; 30% (273,458) kg of special waste recycled; 2,126 m3 of glass and aluminum recycled; and an 8.5% reduction in garbage.

“In 2008, which marked Costa Cruises’ 60th anniversary, we recorded substantial growth accompanied by increased commitment to social and environmental responsibility, despite the impact of rising oil prices and the onset of the financial crisis and economic downturn,” commented Costa Crociere S.p.A. Group Chairman & CEO Pier Luigi Foschi. “In this context we have invested in resources and process optimization in order to maintain the high level of sustainability of our business.”

Costa Cruises not only operates in accordance with the prevailing laws but also, where possible, seeks to preempt legislation, setting higher standards for itself and more ambitious objectives by means of internal procedures that go beyond the scope of mandatory requirements of local, national and international regulations. For the December 2007/ November 2008 fiscal year, the company achieved the following results in the area of environmental protection: 

• A 5% reduction in fuel consumption per mile traveled (at approximately 339 kg compared to 356 kg in 2007), with an equivalent reduction in the amount of CO2 produced. This reduction was attained due to the implementation of various energy-saving measures on board, including the use of ecological silicone-based coatings for the ship’s hull. These antifouling coatings enhance hydrodynamic performance and reduce the growth of microorganisms on the hull surface without any toxic effects. Also, awareness campaigns were conducted on board to inform crewmembers and guests on how to rationalize the consumption of electricity.
• A 5% reduction in consumption of potable water per person on board the ships (mainly produced from seawater using desalination plants), down from 240 liters in 2007 to 228 liters in 2008.
• An increase in the proportion of special waste recycled, up from 26% in 2007 to 30% in 2008, amounting to 273,458 kg. The special waste (e.g. cooking oil, used batteries, neon lamps, photo developing fluid, etc.) generated on board Costa’s ships is handled using procedures and technologies that allows adequate collection, storage and subsequent disposal ashore. Overboard discharge of special waste is not permitted by Costa Cruises under any circumstances. In 2008, approximately 30% of this type of waste was recycled to produce energy or new material, including 163,133 kg of cooking oil.
• A 8.5% reduction in the amount of garbage produced per day per person (type of urban solid waste: paper, plastic, glass, metal), down from 8.2 liters in 2007 to 7.56 liters last year.  This included 1,675 m³ of glass and 451 m³ of aluminum sent for recycling. Additionally, the garbage recycling program was extended to the ports of Civitavecchia (Italy), Tianjin (China) and St. Lucia (Caribbean).
• Costa Cruises’ commitment to the defense of the marine environment is reflected by the extension of its partnership with the World Wildlife Federation (WWF), the world’s largest independent conservation organization. Within the framework of this venture, Costa Cruises and WWF are working together on a global strategy for the Mediterranean, known as the “Mediterranean Initiative.” The alliance between Costa Cruises and WWF involves four marine protected areas, with the dual aims of making existing areas (Miramare in Italy and Cabrera in Spain) more efficient and effective while promoting the establishment of new ones (Cap d'Agde in France and  La Galite in Tunisia). The marine protected areas are vital to the conservation of biodiversity in the Mediterranean and the protection of various species in danger of extinction. Testimony to Costa Cruises’ engagement in this area is its policy banning overboard discharge of bilge water (even when suitably treated) within the “Whale Sanctuary,” an area of the Ligurian Sea covering approximately 100,000 km² with a particularly high concentration of Mediterranean marine mammals.
• The company’s environmental commitment goes beyond its fleet. In April 17, 2008 Costa implemented the “Palazzo Costa” project, an architectural plan to extend and redevelop the company’s headquarters in Genoa.  The new offices will be a perfect blend of creativity, innovation and respect for the environment, with features that will be at the cutting edge of Italian architecture. The innovative building will be one of the country’s first with zero CO2 emissions on site.

In addition, the report also describes the many initiatives undertaken in the field of social responsibility, including: 

• The extension of training programs and associated initiatives in order to enhance the professional growth of employees.
• Implementation of numerous activities in order to improve safety on board (by means of new fire, injury and accident prevention systems and procedures) and ashore (by means of new procedures for management and control of operations and servicing of equipment at the Savona Palacrociere cruise terminal and occupational health and safety measures at the Genoa warehouses).
• Implementation of cultural and social initiatives either by Costa Cruises directly or through important partnerships. 

The 2008 edition of the Sustainability Report was produced in cooperation with the “less CO2” project. The amount of CO2 produced in printing the report will be offset by investing in an innovative industrial technique designed to reduce methane emissions in Italian landfills and by providing local communities in Kenya with low energy stoves.

The Sustainability Report is a purely voluntary form of reporting designed to provide comprehensive and transparent information on the effects of corporate activity on the environment and the community. In addition to its social, environmental and economic performance, the report also conveys the basic operating principles of Costa, currently the only cruise line in Italy that has its own environmental management system developed in accordance with the latest international standards (UNI EN ISO 14001, issued in 2004) and is also certified for social accountability (SA 8000, issued in 2001).

The Report has its roots in the application of the “B.E.S.T. 4” (Business Excellence Sustainable Task), an integrated management system that encompasses four types of voluntary certification of corporate compliance with the highest standards in the areas of quality (UNI EN ISO 9001, issued in 2008), environment (UNI EN ISO 14001, 2004), safety (OHSAS 18001, 2007) and social accountability (SA 8000, 2001), guaranteeing the measurement of company performance and continuous improvement.  Costa obtained the B.E.S.T. 4 from RINA in 2004, thus becoming the first company in the world to do so.

Costa Cruises’ environmental excellence is also reflected in the assignment of RINA’s (the Italian Shipping Register’s) Green Star. In 2005, Costa became the first company in the world to achieve this important form of recognition of voluntary compliance, certifying that all its vessels comply with environmental standards for the prevention of pollution of the marine environment. That same year, in partnership with the Joint Research Centre of the European Commission, Costa launched a project for monitoring climate change in the Mediterranean.

Costa Cruises’  2010 brochure includes around 240 eco-tourism excursions, comprising visits to parks, oases and nature reserves, with programs that minimize the impact on the ecosystem and create economic opportunities for the local communities.

Costa Cruises is Italy’s largest tourism group and Europe’s Number One Cruise Line.  For more than 60 years its ships have sailed the seas of the world, offering the best in Italian style, hospitality and cuisine and providing dream vacations filled with fun and relaxation. In 2008, 1.2 million guests chose to cruise with Costa, a record for the European cruise industry. The company’s 14 fleet members, each with her own distinctive characteristics and unique style, all fly the Italian flag and sail each year to 250 destinations in the Mediterranean, Northern Europe, the Baltic Sea, the Caribbean, South America, the United Arab Emirates, the Far East and the Indian Ocean. Three more new ships are due to enter service by 2012.

In Mediobanca’s 2009 survey of over 3,700 Italian enterprises that recorded revenue of at least 50 million Euros the previous fiscal year, Costa Crociere S.p.A. ranked 10th in terms of profitability and 65th in terms of sales. In the “Global Reputation Pulse 2009” international study, Costa Cruises ranked first among Italian “service industry” companies. Pulse scores are a measure of corporate reputation of the 600 largest enterprises located in 32 countries worldwide. Costa Crociere S.p.A. is a member of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world’s largest cruise company.