SUSTAINAbIlITy by liuhongmei


									S U S TA I N A b I lI T y


2	   Seabourn’s Sustainability Commitment
4	   Sustaining the Yachts of Seabourn
6	   Our Stakeholders
8	   Our Report
10   Our Company
14   Our Public Policy
18   Our Development
20   Our Awards and Accolades
22   Our People
40   Our Planet
48   Our Performance

    Seabourn’s Sustainability
Thank you for your interest in The Yachts of Seabourn. We are a
company with a shared vision to provide the finest travel
experiences to our guests. We endeavor to fulfill that vision by
consistently creating exceptional yachting vacations, and by
personally owning the fulfillment of each guest’s expectations.

Our business involves efforts to attract guests through marketing
and sales activities, as well as properly serving those guests before
they embark on our vessels, while they are in our care, and after
they leave us, should they require further assistance. Our business     “ We h a v e e m b a r k e d
also involves protecting, transporting, accommodating, feeding,
and entertaining those guests, as well as providing opportunities       on a n in it ia t i ve
for them to enjoy meaningful, enriching travel experiences in our
ports of call around the world. Each of these activities has impacts    improve         our
on our various stakeholders and on the environments in which we
                                                                        performance wherever
operate. We have embarked on an initiative to better understand
those impacts, to improve our performance wherever possible, and
                                                                        possible...     ”
to maximize the benefits of our activities where appropriate, with
the aim of managing our company for long-term sustainability.

This report is an annual summary of our sustainability initiatives.
The aim of the report is to provide our own employees and our
stakeholders with information about the impacts of our various
activities in a clear and transparent manner. We welcome your
comments and questions about anything contained in this report.

Pamela C. Conover
Pre sident & C EO

            Seabourn Odyssey

                                            SUS TA INING
                     The Yacht s of Seabourn

OUr COMPANy IS PrIvIlEGEd TO PrOvIdE SErvICES ThAT fOSTEr TrAvEl                     executive body is even smaller. This
fOr PlEASUrE, ENlIGhTENMENT, ANd ENrIChMENT. WE bElIEvE IN ThE                       enables a nimble, responsive agility
                                                                                     that has benefits both in a competitive
hAS POWErfUl ANd POSITIvE EffECTS ON ThE COMMUNITIES ThAT                            commercial climate and in the
OUr yAChTS vISIT. A COUNTry’S CUlTUrE, hISTOry ANd lEGACy Of ArT,                    company’s ability to deliver on its
architecture, and antiquities               needs of future generations to meet      brand promise to customers on a
comprise a rare commodity in the            their own needs . Thus it is incumbent   consistent and constant basis. A
world economy because they are              upon us to measure and manage the        company with fewer “moving parts”
essentially inexhaustible. Thus they        economic, environmental and social       fosters improved accountability.
can provide a sustainable source of         impacts of our business and of its       Strengths are readily identified and
income, as well as a source of pride        development. We further accept a         weaknesses quickly become evident
and self-worth to generations of those      responsibility to disclose those         and can be addressed. The overall
who claim them as their own. The            impacts to our stakeholders in a         scope of the product we deliver is
learning that occurs when travelers         reasonable and balanced way, as          likewise modest in scale. To put our
visit new places and interact with the      a part of defining our commitments,      capacity in perspective, our present
local people is a two-way process in        strategies and management approach       fleet’s total lower-berth capacity is
which both parties gain insights and        within the global community.             just over a thousand guests, or less
understanding that broaden their                                                     than one third of the capacity
world views. For many individuals,          Delivering the value promised by the
                                                                                     of many individual cruise vessels in
travel embodies the fulfillment of          Seabourn brand requires a
                                                                                     the industry.
dreams they have cherished for much         commitment to do ‘whatever it takes’

of their lives. For all of these reasons,   to ensure the customers’ experiences

we seek to develop our business and         wherever their journeys may take

provide even more people and                them – this philosophy is no different

communities with the benefits               in regard to our commitment

of leisure travel.                          to sustainability.

At the same time, we recognize that to      Achieving this vision at Seabourn

develop our business in a sustainable       benefits from a few features of our

way, we must meet the needs of the          business: Our overall size is very

present without compromising the            modest, and the decision-making

“. . . t h e   Seabourn brand
 requires a commitment to

     d o ‘ w h a t e v e r i t t a k e s ’. . .
          this philosophy is no
  different in regard to our
                    commitment to
      s u s t a i n a b i l i t y. ”

                Our        S TA kEhOldEr S


    O U r E M Pl Oy EE S            Operating an ultra-luxury service organization requires a passion for
                                    excellence. Identifying, nurturing and rewarding that passion is a key part
                                    of Seabourn’s interaction with its employees. Aside from meeting the
                                    standard human resources needs, Seabourn works to ensure that all
                                    employees are familiar with, and share the company’s vision and mission.

    O U r GU E S T S                Seabourn enjoys an unusually strong bond with its guests. Guest
                                    satisfaction is measured systematically and regularly. The majority of
                                    our guests book their cruises through a professional travel agent. Thus
                                    the agency community is in many ways our first customer. Decisions about
                                    marketing initiatives, sales policies and even onboard product design
                                    must take into account not only the end user, but also the agents who
                                    interpret the value of our services to their clients. In recent years, we have
                                    constantly expanded the means by which we communicate with both
                                    agents and guests, including subscribed email messages, on our own
                                    website, and social media including a blog, Facebook, Twitter and other
                                    channels. Returning past guests constitute over half of our annual
                                    business, and nearly a third of them book their next Seabourn voyage
                                    while they are still on board. This provides us with permission to continue
                                    communications with them. Recent sponsored surveys of first-time guests
                                    revealed an exceptionally high satisfaction rate and a very high rate of
                                    referral. Interviewed guests reported that they told an average of 30
                                    people about their Seabourn cruise experience.

    CO r P O r AT E                 As an operating brand of Carnival Corporation & plc, the world’s largest
    Sh A r Eh O l d Er S            cruise company, Seabourn 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
                                                                  SE ABOURN’ S SUS TAINABILIT Y REPORT          7

O U r SU PPl I Er S              Seabourn endeavors 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 in the ultra luxury
                                 segment. Thus it is in our interest to maintain established relationships so
                                 long as they deliver the required goods and services and remain
                                 competitively priced. Seabourn 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. We understand that these groups have an
                                 interest in our activities and plans. We endeavor to satisfy that interest,
                                 not least by the creation and publication of this and subsequent reports
                                 on our achievements and progress toward sustainability.

r EGU l AT O ry b O d I E S      Seabourn is subject to regulation and monitoring by a number of local,
(I N T Er N AT I O N A l ,       national and international regulatory bodies. Seabourn’s standard
N AT I O N A l , S TAT E A N d   operating procedures are established to meet or exceed the guidelines
lOC Al)                          and requirements of these entities at all times on board. 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.

l O C A l C O M MU N I T I E S   Inbound tourism creates manifold effects within a community. There are
Wh Er E WE O PEr AT E            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. While the size of our vessels and the limited guest capacities have
                                 much less effect on a community than does a larger vessel in communities
                                 where larger vessels often call, we also visit ports where we are either the
                                 sole or one of the very few vessels calling in a year. Thus 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.

                            Our Report:                       SCOPE
ACTIvITIES IN fISCAl yEAr 2009, WhICh bEGAN ON dECEMbEr 1,	2008	
ANd ENdEd ON NOvEMbEr 30,	20 09. ThIS IS SEAbOUrN’S fIrST

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. A matrix of these reported performance indicators can be
seen on pages 50-54. The current report is focused on the operation of our
vessels and on our shoreside headquarters and offices.

         f O r f U r T h E r I N f O r M AT I O N C O N TA C T:

         b rU C E G O O d
         (305) 463-3105


         E M I ly E A S T Er
         (212) 255-6541

                                                                                      Seabourn Spirit & Seabourn legend

                                      Our        COMPANy

The Yachts of Seabourn is a pioneer of ultra-luxury cruising that has earned
unanimous accolades from cruising guidebooks, travel critics and traveler polls
since its launch in 1987. With three identical, all-suite vessels touring the globe
– and three new vessels on the way – Seabourn has earned a reputation for
extraordinary levels of personalized service, with nearly one staff member per
guest; sumptuous accommodations in spacious suites, many with balconies;
exceptional shoreside experiences in the world’s most desirable destinations
and award-winning cuisine served in open-seating restaurants.

Seabourn Cruise Line Ltd. is an operating line within the Carnival Corporation
& plc (NYSE and LSE: CCL; LSE: CLUk). Seabourn markets, sells, and operates
cruises calling at over 250 ports in 68 countries on six continents.

ThE flEE T
Carrying just 208 guests each, the three Yachts of Seabourn – Seabourn Pride,
Spirit and Legend – offer a wealth of onboard touches and luxuries to
assure smooth sailing whatever the destination. Guests can look forward                              Captain karlo buer

to spacious accommodations of 277 square feet or more, 40	percent with
balconies; complimentary wines and spirits throughout each cruise; innovative
Massage Moments on deck; festive Caviar in the Surf beach parties; designer
soaps, molton Brown toiletries and Pure Pampering therapeutic bath menu
– and all of the above with no tipping required or expected.

With the addition of Seabourn Odyssey, the line’s 450-guest new yacht launched
in June 2009, guests are able to enjoy the same exceptional levels of service that
distinguish the Seabourn brand with the added amenities and features made
possible by a larger vessel. Two additional new-builds of the same class are to
be added to the fleet. Seabourn Sojourn debuted in 2010 and Seabourn Quest
will join in 2011. All vessels are registered in the Bahamas.

                                                                                                     Seabourn Ser vice
                                                                                    SE ABOURN’ S SUS TAINABILIT Y REPORT       11

                                             yE Ar IN SErvICE

                                yE Ar IN                                   GUESTS
    CUrrENT ShIPS                                    TONNAGE                                      CrEW
                                SErvICE                                     (d/O)

     Seabourn Pride                1988                10,000                 208                   165

     Seabourn Spirit               1989                10,000                 208                   165

    Seabourn Legend                1993                10,000                 208                   165

   Seabourn Odyssey               2009                 32,000                 450                   335

   Seabourn Sojourn                2010                32,000                 450                   335

    Seabourn Quest                 2011                32,000                 450                   335

The world is Seabourn’s port of call, with more than 250 seasonal destinations including:
Europe: Greece, Turkey, Dalmatian Coast, Italy, France, Scandinavia, Russia, British Isles, Norwegian Fjords, mediterranean,
Black Sea, Spain, Rivers of Western Europe, Slovenia, Portugal.
North America and The Caribbean: Barbados, Antigua, B.V.I., Puerto Rico, martinique, St. Lucia, Grenada, St. Vincent,
Grenadines, Nevis, St. kitts, St. Thomas, U.S.V.I., Guadalupe.
Asia: Thailand, Vietnam, India, China, Japan, korea, Singapore, Indonesia, malaysia, Sri Lanka
Africa and the Middle East: Egypt, Jordan, Oman, United Arab Emirates
South & Central America: Argentina, Peru, Ecuador, Uruguay, French Guiana, Chile, Panama, Belize, Costa Rica, the Amazon

AddrESS                                    NOrTh A MErIC A
THE YACHTS OF SEABOURN                     rESErvATIONS: (800) 929-9391 | 		WEbSITES: WWW.SEABOURN.COm
6100 BLUE LAGOON DRIVE, SUITE 400          M ANAGEMENT: Pamela C. Conover, President & CEO
mIAmI, FL 33126                            Jack Anderson, SVP Sales & marketing
TEL. (305) 463-3000                        Gerry Ellis, VP marine & Technical Operations
FAx (305) 463-3010                         Andrew magowan, VP, Europe, middle East, Africa
                                           Helen Panagos, VP Shoreside Operations
                                           Lourdes Pineda-Garcia, VP Finance, CFO
                                           Lawrence Rapp, VP Fleet Operations
                                           Doug Seagle, VP of Sales, The Americas and Asia Pacific
                                           Adam Snitzer, VP marketing
                                           Bruce Good, Director of Corporate Communications
                                           Jorge Leon, Director of Safety & Environmental Compliance
                                           Timothy Littley, Director, Itinerary & Land Development

ThE SE AbOUrN E XPErIENCE                     Yachting life aboard Seabourn is           Seabourn’s exclusive Tour manager’s
Traveling the high seas with Seabourn         geared to the intimate scale. Suites       Choice, from a private visit to the
is luxurious, yet relaxed; elegant, yet       are comfortable, spacious enclaves         Peggy Guggenheim museum in Venice
casual; sumptuous yet understated –           – large enough for extended journeys,      to a Czarist-era extravaganza in
all experienced in vessels of a size,         as well as inviting guests in for meals    St. Petersburg’s Yusupov Palace.
style, and intimacy that feel more like       or cocktails. In-suite bars and            Seabourn’s Destination Services staff is
yachts than cruise ships.                     refrigerators are pre-stocked with         ready to arrange private tours or create
                                              requested choices, and personalized        customized experiences of any sort in
Seabourn vessels can access ports             stationary is resting on the desk. Every   ports around the world.
that many larger ships must bypass            suite offers an ocean view.
– smaller, more intimate and less-                                                       COMPANy hISTOry
populated locations that very few             Public rooms are scaled for                Seabourn Cruise Line was founded in
travelers have the opportunity to visit,      socializing, creating friendly spaces      1987 by Norwegian industrialist Atle
creating a cruising environment with          that encourage conversation and            Brynestad. The fleet’s first ultra luxury
rich potential for authentic discovery.       relaxed camaraderie. A variety of          vessel, Seabourn Pride, made her
Seabourn vessels share harbors with           entertainment options unfolds              maiden voyage in November 1988.
private yachts, navigate rivers, and          nightly. Complimentary open bars           Her sister, Seabourn Spirit, sailed her
dock in the heart of town.                    throughout the vessel nurture a            maiden voyage in November 1989. And
                                              convivial, club-like atmosphere.           the third sister, Seabourn Legend, was
Seabourn guests are also able to                                                         acquired in January 1996. In 1991,
access onshore experiences designed           Dining is a nightly celebration, with      Carnival Corporation (NYSE:CCL), the
specifically for small groups. These          onboard options including a fine-          largest and most successful operator
include private visits to sites of interest   dining restaurant with open seating,       of cruise vacations in the world,
that may be closed to the general             as well as bistro-style enclaves and       purchased 25 percent of Seabourn,
public, and interactions with local           breezy al fresco grills on deck. Dining    and in 1996 purchased an additional
families and dignitaries. Seabourn’s          may also be enjoyed in-suite during        25 percent. In 1998, Seabourn Cruise
Destination Services staff can create         extended service hours, with meals         Line and Cunard Line merged to form
private tours and customized activities       served course-by-course in the             Cunard Line Limited when a
ranging from simple car-and-driver            privacy of suites or verandas.             consortium including Carnival
excursions to elaborate celebrations                                                     Corporation acquired Cunard Line
and even business meetings.                   ShOrESIdE E XPErIENCES
                                                                                         from kvaerner ASA. In 1999, Carnival
Seabourn’s Personal Shopper program           Seabourn provides a wide range of
                                                                                         Corporation exercised its option to
provides luxury transportation and the        travel experiences ashore including
                                                                                         purchase the merged company in
services of local shopping experts to         overland tours, journeys and
                                                                                         total. In 2004, subsequent to the
guide guests to the best outlets for          excursions. The crème de la crème of
                                                                                         formation of Carnival Corporation and
fashion, art and antiques.                    small-group shore excursions make up
                                                                                         plc (NYSE & LSE: CCL and NYSE: CUk),
                                                                            SE ABOURN’ S SUS TAINABILIT Y REPORT         13

Seabourn Cruise Line was reorganized       place, and a long history of adhering      with ethical principles that reflect
as a stand-alone company                   to, and promoting, high ethical            the highest standards of corporate
headquartered in miami, Florida.           standards and the law.                     and individual behavior. Integrity of
                                                                                      performance is a Seabourn standard
COdE Of CONdUC T                           It takes more than having the right        wherever we do business, and
As indicated in Carnival Corporation &     mechanisms, standards and training         ignorance of that standard is never
plc’s Corporate Health, Environmental,     in place to ensure an ethical business     an acceptable excuse for improper
Safety and Security Policy, Seabourn       environment. Ethics are an integral        behavior. We cannot rationalize
is committed to fully complying with       part of how a company and its              improper behavior as being in the
or exceeding all legal and statutory       employees - from the executive and         company’s interest. No act of
requirements related to health,            Board level on down - conduct              impropriety advances the interest of
environment, safety and security           themselves every day.                      the company; no act of impropriety
throughout our business activities.                                                   will be tolerated.
To implement this policy, we promptly      As a part of Carnival Corporation & plc,

report and properly investigate all        a global cruise operator and one of
                                                                                        CArNIvAl COrPOr ATION

health, environmental, safety and          the largest vacation companies in the
                                                                                        & PlC COdE Of bUSINESS
security incidents, and take appropriate   world, we recognize our responsibility       CONdUCT ANd EThICS
action to prevent recurrence.              to provide industry leadership and to
                                           conduct our business as a responsible
During FY 2009, Seabourn did not           global citizen. Our corporate
receive any significant fines or           leadership is manifested in our Code
non-monetary sanctions for                 of Business Conduct and Ethics and
noncompliance with laws and                requires that every employee and
regulations.                               member of the Board of Directors will
                                           use sound judgment, maintain high
Tr AINING IN COMPANy ANTI -                ethical standards and demonstrate
                                           honesty in all business dealings. As
                                           a responsible global citizen, we are
In our business, adherence to the rule
                                           ardently committed to achieving and
of law, ethical working practices, good
                                           maintaining the highest standards of
corporate governance and
                                           professional and ethical conduct.
transparency are critically important
to our guests, our employees and our
                                           Every Seabourn employee is
investors — and to our sustainable
                                           responsible for adhering to business
business success. We have strong
                                           practices that are in accordance with
corporate policies and safeguards in
                                           the letter and spirit of the law and

        Our P U b l I C P O l I C y
  & Participation in Public Policy
         Development & Lobbying

CArNIvAl COrPOrATION & PlC ESTAblIShES ITS PUblIC POlICy POSITIONS                     partnerships with every sector. The
                                                                                       FCCA works with governments, ports
Of SEAbOUrN, vIA ThE ASSOCIATIONS lISTEd bElOW. SEAbOUrN                               and all private/public sector
rEPrESENTATIvES PArTICIPATE dIrECTly IN SElECTEd ACTIvITIES Of ThESE                   representatives to maximize cruise
                                                                                       passenger, cruise line and cruise line
rEPOrT ArE AddrESSEd ON ThE WEbSITES Of ThESE ASSOCIATIONS.                            employee spending, as well as
                                                                                       enhancing the destination experience
CrUISE lINES INTErNATIONAl                 educate, train its travel agent
A SSOCIATION                                                                           and the amount of cruise passengers
                                           members, and promote and explain
Carnival is a part of and actively                                                     returning as stay-over visitors.
                                           the value, desirability and affordability
participates in the Cruise Lines           of the cruise vacation experience.
International Association (CLIA), the
world’s largest cruise association,        flOrIdA C ArIbbE AN CrUISE
which is dedicated to the promotion        A SSOCIATION

and growth of the cruise industry. CLIA    Carnival is a part of and actively
                                                                                                                             dining in The restaurant
is composed of 23 of the major cruise      participates in the Florida Caribbean

lines serving North America. CLIA serves   Cruise Association (FCCA), a not-for-

as a non-governmental consultative         profit trade organization composed of

organization to the International          10 member cruise lines operating more

maritime Organization, an agency of        than 100 vessels in Floridian, Caribbean

the United Nations.                        and Latin American waters. Created in
                                           1972, the FCCA’s mandate is to provide
CLIA was formed in 1975 and in 2006        a forum for discussion on legislation,
merged with the International Council      tourism development, ports, tour
of Cruise Lines (ICCL), a sister entity    operations, safety, security and other
created in 1990 dedicated to               cruise industry issues. By fostering an
participating in the regulatory and        understanding of the cruise industry
policy development process of the          and its operating practices, the FCCA
cruise industry. CLIA exists to promote    seeks to build cooperative relationships
all measures that foster a safe, secure    with its partner destinations and to
and healthy cruise ship environment,       develop productive bilateral
                                                                                   SE ABOURN’ S SUS TAINABILIT Y REPORT             15

    EUrOPE AN CrUISE COUNCIl                  n   Encourages high standards of               n   Raises the profile of the cruise
    Carnival is a part of and actively            operation and the provision of high            sector with the EU Institutions in
    participates in the European Cruise           quality and efficient shipping services.       relation to its economic and social
    Council (ECC). The ECC represents the                                                        contribution to Europe.
    leading cruise companies operating
                                              n   Strives for an EU regulatory

    in Europe, and aims to promote the            environment that supports safe             n   Promotes cruising with the general

    interests of cruise operators with the        shipping operations and protection of          public and the travel trade as a

    EU Institutions (European Parliament,         the environment, and that recognizes           reliable, affordable and enjoyable

    Council of the European Union, and            the international dimension of the             holiday experience.

    European Commission) in all matters           sector and the role played by ImO/ILO
                                                  in particular.
                                                                                             n   Cooperates with the EU institutions
    of shipping policy and ship operations.
                                                                                                 and non-governmental organizations
    The ECC also promotes cruising by the
                                              n   Works for an EU regulatory                     in the pursuit of these objectives.
    European public and encourage
                                                  environment that will foster the
    expansion of the European cruise                                                         n   Anticipates whenever possible and
                                                  continued growth of the cruise
    market. To accomplish this, the ECC:                                                         responds wherever appropriate to
                                                  sector in Europe.
                                                                                                 policies and actions which conflict
                                                                                                 with the above.

yachting life                                                                                            Seabourn in Monaco

                                                                                      ICS has consultative status with a
                                                                                      number of intergovernmental bodies
                                                                                      that have an impact on shipping. Its
                                                                                      close ties with ImO stretch back to this
                                                                                      body’s inception in 1958. Other
                                                                                      partners include the World Customs
                                                                                      Organisation, the International
                                                                                      Telecommunications Union, the
                                                                                      United Nations Conference on Trade
                                                                                      and Development and the World
                                                                                      meteorological Organization. ICS also
                                                                                      enjoys close relationships with
                                                                                      industry organizations representing
                                                                                      different maritime interests such as
                                                                                      shipping, ports, pilotage, the oil
                                                                                      industry, insurance, and classification
                                                                                      societies responsible for the surveying
                                                                                      of ships.

                                                                                      ICS is committed to the principle of
INTErNATIONAl ChA MbEr Of                  (ImO), the United Nations agency with      maritime regulation being formulated
ShIPPING                                   responsibility for the safety of life at   at an international level. Shipping is by
Carnival actively participates in the      sea and the protection of the marine       nature international: the regulations
International Chamber of Shipping          environment. ICS is heavily involved       that apply to a ship when it sails from
(ICS), the international trade             in a wide variety of areas including       Buenos Aires must apply equally when
association for merchant ship              any technical, legal and operational       it arrives in Brisbane. The alternative
operators. ICS represents the              matters affecting merchant ships.          to an international system of shipping
collective views of the international
                                                                                      legislation would be a chaotic web of
industry from different nations, sectors   ICS is unique in that it represents the
                                                                                      local rules and regulations that would
and trades. ICS membership comprises       global interests of all the different
                                                                                      result in commercial distortions and
national shipowners’ associations          trades in the industry: bulk carrier
                                                                                      mass economic deficiencies. The
representing over half of the world’s      operators, tanker operators, passenger
                                                                                      objective of ICS is the maintenance
merchant fleet.                            ship operators and container liner
                                                                                      of a sound, well considered global
                                           trades, including shipowners and
                                                                                      regulatory environment in which
A major focus of ICS activity is the       third-party ship managers.
                                                                                      well-run ships can operate safely
International maritime Organization
                                                                                      and efficiently.
                                                                           SE ABOURN’ S SUS TAINABILIT Y REPORT          17

Carnival participates in the European
Community Shipowners’ Associations
(ECSA), formed in 1965, which is
comprised of the national shipowner
associations of the EU and Norway.
ECSA works through a permanent
secretariat in Brussels and a Board
of Directors, as well as a number of
specialized committees. Its aim is to
promote the interests of European
shipping so that the industry can best   public on behalf of the sectors that        of solutions for emissions reductions
serve European and international         make up the shipping industry               that are sustainable, cost effective and
trade and commerce in a competitive      (including deep-sea bulk, short-sea         achievable. Founding sponsors include
free enterprise environment to the       bulk, containers, ferry, cruise, offshore   shipping and oil companies committed
benefit of shippers and consumers.       support and specialized operators) to       to exploring and implementing cost
most ECSA members are also               ensure that the Uk continues to be a        effective methods of reducing
members of ICS.                          global center for shipping business         emissions. SEAaT membership
                                         - with world-class standards and an         represents the broader shipping
ThE ChAMbEr Of ShIPPING (Uk)             internationally competitive and             community, and includes ship owners,
Carnival is a part of and actively       consistent fiscal and policy                brokers, technology companies and
participates in the Chamber of           environment.                                fuel suppliers.
Shipping, the trade association for
the Uk shipping industry, which works    ShIP EMISSION AbATEMENT
                                         ANd Tr AdING (SE A AT )
to promote and protect the interests
                                         Carnival is a sponsoring member of
of its members both nationally and
                                         Ship Emission Abatement and Trading
internationally. With 144 members
                                         (SEAaT), a cross-industry, unique,
and associate members, the Chamber
                                         proactive and self-funding group,
represents over 860 ships of about 23
                                         whose mission is to encourage and
million gross tonnes and is recognized
                                         facilitate efficient reduction of
as the voice of the Uk shipping
                                         harmful emissions to air from shipping.
industry. The Chamber works with
                                         Formed in 2002, SEAaT raises
Government, Parliament, international
                                         awareness and promotes acceptance
organizations, unions and the general

                Our      dEvElOPMENT
IN SPrING 2009,	2010	ANd 2011. ThE SISTEr yAChTS ArE bEING bUIlT by
2009	 ANd SEAbOUrN SOJOUrN lAUNChEd IN JUNE 2010. ThE ThIrd,
brANd. EACh 32,000-GrT vESSEl WIll ACCOMMOdATE 450 GUESTS IN	 225	
CUrrENT flEET CAPACITy by MOrE ThAN	200 PErCENT TO 1,974 bErThS.

                                                                      Seabourn Odyssey

           “. . . S e a b o u r n ’s
           new-builds              are designed
           to enable delivery of the

           highly     personalized
           experience              that is the

           hallmark of the brand. ”

                Seabourn Odyssey Patio bar

                         A W A r d S, Our
               CErTIfIC ATIONS &

       SEAbOUrN: WOrld’S bEST SMAll-ShIP CrUISE lINE            SEAbOUrN lEGENd: bEST SMAll ShIP
       2010 Travel +Leisure “World’s Best” Awards -             2009 Porthole Readers’ Choice Awards
       Two Consecutive Years
                                                                SEAbOUrN SPIrIT: bEST SMAll ShIP
       SEAbOUrN: bEST SMAll-ShIP CrUISE lINE                    Porthole Magazine 2007 & 2008 Readers’ Choice Awards
       2008 Condé Nast Traveler Readers’ Choice Awards
                                                                SEAbOUrN: WOrld’S bEST vAlUES
       SEAbOUrN: bEST SMAll-ShIP CrUISE lINE                    2007 Travel + Leisure World’s Best Awards
       2009 Virtuoso Advisors’ Awards – Two consecutive years
                                                                SEAbOUrN: “GOld lIST”
       SEAbOUrN: bEST lUXUry lINE                               Condé Nast Traveler 1994-2010 (sixteen consecutive years)
       2009 Porthole Readers’ Choice Awards
                                                                SEAbOUrN: fAvOrITE SMAll CrUISE lINE
       SEAbOUrN: bEST lUXUry dINING                             (bEST OvErAll CrUISE lINE SCOrE)
       2009 Cruise Critic Editors’ Picks Awards                 Departures Luxury Survey: Readers’ Favorites
                                                                (American Express Platinum/Centurion)
       2009 Porthole Readers’ Choice Awards                     SEAbOUrN PrIdE, SPIrIT ANd lEGENd – fIvE STArS
                                                                2010 Berlitz Complete Guide to Cruising and Cruise Ships
       2009 Global Traveler GTTested Awards                     SEAbOUrN PrIdE, SPIrIT, lEGENd, OdySSEy - SIX PlUS
                                                                blACk STArS (hIGhEST rATING)
       SEAbOUrN OdySSEy: bEST NEW CrUISE ShIP                   2010 Stern’s Guide to the Cruise Vacation
       2010 TravelAge West Wave Awards – Editors’ Pick
                                                                SEAbOUrN CrUISE lINE – bEST OvErAll ONbOArd
       SEAbOUrN OdySSEy: bEST NEW lUXUry ShIP                   dINING (SMAll ShIP)
       2009 Cruise Critic Editors’ Picks Awards                 2007 TravelAge West WAVE Awards - Winner

                                                                  T hE yAC h T S O f SE A b O Ur N ’ S r EC EN T r ECO G NI T I O NS

         Our People &                          COMMUNIT y
       WOrkING fOr SE AbOUrN
       To its core, Seabourn is based on a culture of service. The anticipation, recognition
       and fulfillment of customers’ desires and expectations are the key tenets of the
       company’s mission and its modus operandi. Employees are recruited, trained,
       and managed to cultivate this service ethic. For a certain type of hospitality
       professional, one who possesses a passion for excellence, this provides a very
       challenging and satisfying work environment. Those who find this culture
       stimulating often remain with the company for extended periods. For example,
       see Chris Prelog’s story on page 26. Seabourn encourages employee retention
       by providing ongoing training, subsidized specialty education during
       off-contract periods, and leadership and advancement opportunities within
       the organization.

       The following table reflects the figures for people added, people leaving,
       and people returning during the subject period.

                                                              20 09 creW movement

                                            fIrST QUArTEr           SECONd QUArTEr             ThIrd QUArTEr   fOUrTh QUArTEr

               Total Number Active                1,218                     1,327                  1,686            1,562

                 Total Signed Off                  793                       559                    665             704

                 End of Contract                   608                       485                    584             640

                Leavers Voluntary                  179                        57                    72               49

               Leavers Involuntary                  6                         17                     9               15

                 Total New Hires                   158                       103                    140             126

                  Total Returners                  422                       686                    439             530

Seabourn Spirit Crew Tour to Petra

       rECrUITMENT                                  junior officer trainees are allowed to       Seabourn complies with all regulations
       Recruitment for shipboard                    be employed as young as 16, yet none         and guidelines for equal opportunity
       employment is conducted globally.            have been. Fluent command of English         employment in its shoreside
       Frontline service personnel are hand-        – the service language on board – is a       operations. Human Resources services
       picked by senior management, and             requirement, in line with international      for Seabourn shoreside operations are
       mostly recruited from hospitality            safety standards. A few positions, such      administered by Carnival Cruise Lines
       schools and establishments in Europe         as housekeeping stewardesses, are            Employee Services staff for the miami
       and South Africa. Deck, engine and           gender-specific, but most, such as           headquarters, and by the Carnival Uk
       kitchen personnel are also recruited         dining service, administrative support,      Human Resources department for
       from Asia, mainly the Philippines, by        and guest services, are gender-neutral.      employees in the Uk and Germany,
       contract with staffing agencies.             The fact that some shipboard                 including work records, benefits
       marine and Technical department              employees must share onboard                 and compensation.
       officers are provided under contract         accommodations has a small influence
       with VShips Leisure, a monaco                on the gender of employees selected.
       corporation, which uses a similar, hand-     See Figure 2 for a breakdown of
       picked style of recruitment. Figure 1        employee gender on
       shows the predominant regions from           Seabourn’s vessels.
       which Seabourn shipboard personnel
       are recruited.                               Shoreside employees are recruited
                                                    by advertised open positions, and are
       The minimum age for employment               interviewed personally by
       on board is 21, except in the case of        management. All positions in shoreside
       medical staff, where it is 18. Technically   operations are gender-neutral.

                    fIGUrE 1: brE AkdOWN Of                                                          fIGUrE 2: brE AkdOWN Of
                ShIPbOArd PEr SONNEl by rEGION                                                     S h I P b O A r d S TA f f b y G E N d E r

                            185,	12%
                                                                                              257,	19%
                    6,	0%
           37,	2%

                                                              617,	40%

     697,	45%

                                                     16,	1%                                                                             1069,	81%

          Asia       Africa     South   North Europe Australia                                               Females     males
                               America America
                                                                                               SE ABOURN’ S SUS TAINABILIT Y REPORT        25

   Tr AINING                                   served on one of the original Seabourn           Training is ongoing during employees’
   In 2009 Seabourn created the                vessels, to ensure the cross-pollination         time on board. Seabourn employs four
   Seabourn Academy, a structured              of Seabourn service style and                    full-time trainers who travel
   system for training classes of              philosophy to the new vessel. Trainee            throughout the fleet to ensure that
   recruits for service positions to           accommodations are built into the                training is accomplished. marine and
   efficiently instill the technical,          new vessels specifically dedicated               technical officers receive an average
   philosophical, and practical aspects        to this activity. This supplemented              of 60 hours of training per year. marine
   of shipboard employment on a larger         the existing “Big Brother” system of             and technical crew receives an
   scale. The company removed four             support for new recruits on board,               average of 53 hours per year, and
   guest suites from the revenue roles         whereby each new hire is assigned a              service and hospitality staff receive
   on each of its three vessels to house       mentor to assist with adjustment and             an average of 57 hours per year.
   sixteen trainees during four-week           integration into the shipboard                   Employees also receive supplemental
   training “waves.” The trainees received     “family.” The shipboard “family” is              training in advanced firefighting,
   intensive instruction, beginning with       nearly universally used by Seabourn              bridge team management, and
   general crew safety and policy              shipboard staff to describe their                environmental compliance, and have
   training such as Public Health              onboard associates, and it is cited as           access to specialized training from
   standards, harassment, and then             one of the best aspects of working on            expert associates, such as training in
   specific duty training. They also           a Seabourn yacht. In the high-pressure           wines from a master Sommelier. A
   “shadowed” regular contracted staff         environment of maintaining a top-                summary of total training hours is
   performing their future duties. It was      quality customer service environment,            displayed in Figure Three.
   determined that, where possible, no         employees truly value the support and
   new crew member would serve on              camaraderie of their teammates
   Seabourn Odyssey without first having       and supervisors.

                           f I G U r E 3 : T O TA l h O U r S O f S h I P b O A r d T r A I N I N G





                             SAfETy                      hEAlTh                ENvIrONMENTAl                   SECUrITy

Seabourn Odyssey               3780                         618                        741.6                       618

 Seabourn Spirit                969                         323                         338                        323

Seabourn legend                1570                         314                         314                        314

 Seabourn Pride                1320                         331                         268                        335

                                                                                                                                 Chris Prelog
 C A S E            S T U D Y              and since I wasn’t sure what to take       the construction of a new class of
                                           I pretty much packed everything I          Seabourn yachts. He likes working
C A SE STUdy: ChrISTOPhEr                  owned, so I had four huge suitcases.
PrElOG, dIrEC TOr Of hOTEl                 When I showed up at the ship, with all
                                           these bags, they thought I was a guest!”
Like many of the senior management
in Seabourn’s operations department,       With no specific orientation in an
Christopher Prelog started at              unfamiliar working style, Prelog’s first
the bottom.                                period on board was difficult, and he
                                           was demoted until he found himself
Prelog studied tourism and hospitality
                                           polishing silverware. “That’s when         in a real situation. He cites the
management in Austria. He worked
                                           something snapped in me and I              introduction of the alternative dining
for three years at an Austrian hotel,
                                           decided that I would show them that        venue called Restaurant 2 on board.
eventually becoming a restaurant
                                           I could do this.”                          “Tony [Egger, director of culinary and
manager. During that time, he met
                                                                                      beverage operations] had come up
Peter Tobler, at the time the head         He started methodically
                                                                                      with the concept of doing small-plates
of Seabourn’s food and beverage            re-establishing all his relationships
                                                                                      tasting menus on board. No other
operation. Prelog was intrigued by         on board, and worked his way steadily
                                                                                      ships were doing that. So Tony and I
what Tobler told him about the             up through the service brigade. Within
                                                                                      basically created the whole thing. We
Seabourn ships and how they traveled       two years he was a maitre d’ Hotel
                                                                                      just started and as we ran into things
all over the world. Prelog worked at       and being trained to move up to Hotel
                                                                                      we hadn’t thought of, we fixed them.
the Hilton Hotel in Vienna for another     manager, the top hotel position on the
                                                                                      That’s the way I love to work. Then we
two years, eventually becoming front       vessel. Just as he was preparing to take
                                                                                      went on board and created it on each
office manager, before he contacted        the position, the manager of hotel
                                                                                      ship, because if you send a memo,
Tobler again. A week later Tobler called   operations in the miami headquarters
                                                                                      everyone will interpret that and it will
and said he wanted Prelog to start on      prepared to depart. “He called me and
                                                                                      be different in each case.”
January 8, 1998 in Sydney, Australia       asked me if I wanted to come ashore
as assistant maitre d’ hotel.              and take over hotel operations. I was      Another example is the launch of
                                           thrilled with the challenge and said       Seabourn Odyssey. The ship was a
“I asked him what I needed to take, or
                                           yes right away.”                           prototype; nobody had served meals in
what I was supposed to know, and he
                                                                                      a restaurant like that before. The ship
said ‘Don’t worry about it, everything     Prelog came to miami in 2003. He
                                                                                      was delivered late and there wasn’t
is there and they’ll show you when you     spends about half his time in the office
                                                                                      enough time for thorough shakedown.
get there,’ and hung up,” said Prelog.     and the rest of the time on the ships.
“There was no orientation, no              He especially likes building a new         “We were having trouble in The
instructions, nothing. I flew to Sydney,   product from the ground up, with           Restaurant,” Prelog said. “So I put on a
                                                                                SE ABOURN’ S SUS TAINABILIT Y REPORT          27

uniform and manned Station 12. I was
very soon reminded how hard those
people work. But I did see a lot of things
we could do better. We changed the
mis en place and the way the brigade
was assigned, and after a couple of
days we really got a lot better.

Probably Prelog’s brusque
introduction to Seabourn life on board
is partly why he has taken extra care
to be certain that newcomers are well
oriented and supported when they             atmosphere of creativity and initiative      basic wages plus the aforementioned
embark, as described in this section         that is part of what Seabourn guests         accrued leave. They are responsible for
of our report. It also helps that he can     notice and comment on when                   paying any taxes due based on their
vividly imagine what affect each             describing the service they receive          country of residence. Employees are
decision made in headquarters will           on board.                                    covered for medical services while
have on board, and he can                                                                 traveling, and officers are covered also
communicate to onboard staff in a way        PrOvIdING fOr OUr                            while on leave. The doctors and nurses
that is authentic and understandable         EMPlOyEES                                    on staff on board administer medical
to them.                                     In order to provide an environment           services. In the case of workers paid by
                                             that enables our staff to live the culture   a Philippine manning agent, the
M ANAGEMENT                                  of the Seabourn experience, we ensure        company also pays for insurance
management of onboard staff is               our employees are comfortable and            coverage for their families.
tailored to cultivate the anticipatory       happy. Frontline service staff is
style of service that Seabourn               typically contracted for terms of four
promotes. Employees are encouraged           months on board, followed by two
to remain alert for any opportunity          months of leave. Deck and engine
to add a service flourish or an              mariners are contracted for longer
unexpected extra touch that will             periods, generally nine months on,
surprise and delight a guest. It is a        three months off. All employees have
clearly stated policy that an employee       pay for scheduled leave calculated
will never be reprimanded for sincerely      into their contract pay, allowing for a
trying to do something extra for             uniform income on an annualized basis.
a guest. This liberty results in an          All shipboard employees work for


lIfE ON bOArd                             dIvEr SIT y ON bOArd                         are identified and agreed upon, and
Working hours are consistent with the     Seabourn does benefit from diversity         individuals are assessed for potential
employee’s contract. most staff work      among its shipboard employees.               for promotion. Seabourn prefers to
some hours each day during their          Although this creates some increased         promote from within the organization,
contract. In accordance with labor laws   cost and effort in terms of recruiting, it   and succession planning is integral to
in the Philippines, staff originating     is inevitable given the high standards       the management style.
from this country are employed by         required and the diversity of cultures
the staffing agency, and assigned to      from which employees are recruited.          The Yachts of Seabourn aims to

Seabourn under a contract with the        The company regularly informs all            continue to recruit qualified candidates

agent. Records of hours are maintained    employees of its established policy and      worldwide, to train and integrate them

daily according to the rules of the       process for reporting complaints of          into the expanding workforce required

International Labor Organization,         harassment or discrimination, and has        for our scheduled fleet expansion, and

and signed by the employee and            received none in the subject period.         to maintain the service levels which

the supervisor.                           All shipboard employees are covered          our guests expect and which are a key

                                          by negotiated labor agreements.              element of our reputation.
Probably the most challenging aspect
of working on a cruise vessel is the      dEvElOPING OUr PEOPlE
crew accommodation, which is small        All employees are given regular
by the standards of shoreside             appraisals by their supervisors. There
employment, for instance. Seabourn        are monthly reports on each individual,
does make a structured effort to          and employees receive mid- and end-
support staff morale by means of          of-contract reviews. Tasks and goals
recreational opportunities,
celebrations such as crew barbecues
and dinners, parties, tours ashore in
ports, etc. meals are supplied in
separate crew and officers’ messes,
and the food standards are high, with
accommodation made for regional
preferences, such as Indian and
Philippine cuisines for employees
from those regions.

                                                                                                                New Trainees Graduate on board
                                                                              SE ABOURN’ S SUS TAINABILIT Y REPORT            29

SAfE T y ANd SECUrIT y                      During 2009 Seabourn Cruise Line            SAfE T y ON bOArd
health, Safety, and Security Aboard         reported 32 lost time injury incidents,     Complying with international safety
Seabourn yachts:                                                                        standards:
                                            (defined as a work-related injury that
To ensure issues of safety and health                                                   Seabourn is committed to a
                                            results in one or more full days off work
are readily communicated by our                                                         comprehensive program to ensure the
                                            following the injury or hospitalization
employees, and to promote a                                                             safety of our guests and personnel.
                                            of 24 hours or more).
cooperative effort and awareness in                                                     Seabourn supports and adheres
this area and help motivate employees       Seabourn places the highest priority        to stringent, internationally agreed
to become actively involved, each vessel    on guest and crew health, safety, and       standards for the design, construction,
has a Health & Safety Committee,            security. We go to great lengths to         and operation of ocean-going cruise
comprised of individuals from various       ensure that our crew has a safe and         vessels as set forth by the
levels of the organization, both officers   healthy working environment and that        International maritime Organization
and crew. This organizational structure     guests are safe and have a healthful        (“ImO”, a specialized agency of the
allows the committee to represent           and enjoyable vacation experience.          United Nations) in the Safety of Life
100% of all shipboard employees.                                                        at Sea (SOLAS) Convention. This
                                            Seabourn maintains an excellent             document has been ratified and is
This committee actively monitors the        health, safety and security record, and     enforced by virtually all the major
overall shipboard safety, environmental     strives to further improve our health,      “seafaring” nations of the world,
health conditions and acts as a forum       safety and security standards and           including the United States.
where employees, can bring forward          procedures. This excellent safety record
safety issues through their committee       and the high level of quality service       SOLAS prescribes, in great detail, safety
representatives, to help prevent unsafe     provided on board cruise vessels is a       specifications in all areas of passenger
practices and conditions, reduce            major reason that cruising is one of the    vessel operations, including design,
injuries and illnesses.                     most popular vacation options. We           construction methods and materials,
                                            are committed to providing a secure         refurbishment standards, life-saving
The Safety Committee meets on a
                                            environment for all of our guests, and      equipment, fire protection, safety
monthly basis. minutes of the meeting
                                            will continue to work with all              training, and drill procedures, among
are posted on bulletin boards
                                            appropriate national, state and local       dozens of other precautions. All
throughout the vessel, and issues
                                            agencies to ensure the safety and           materials from hull steel to upholstery
raised are brought to the attention of
                                            well-being of all guests on board           must comply with ImO standards that
the master and ship management for
                                            our vessels.                                result from extensive material and
their review and action.
                                                                                        type testing by ImO’s special
                                            The following measures described            technical committee.
                                            apply to all of the ships in The Yachts
                                            of Seabourn fleet.

Since SOLAS was first drafted in 1948,      Carnival Corporation & plc has also          systems are tested daily; other
it has been continually updated and         developed and issued a comprehensive         equipment is tested weekly. In
expanded to increase the safety             set of Corporate Safety Standards that       addition, a safety video covering
requirements based on practical             go beyond regulatory requirements            lifeboat, fire, and general safety is
experience and/or scientific research.      to further ensure the safety of its          aired on the in-cabin television
In North America, we also cooperate         passengers, ship personnel and ships.        system for passenger viewing.
fully with the U.S. Coast Guard, which      These standards are implemented and
is empowered by Congress to inspect         enforced via The Yachts of Seabourn’s        If any of the above inspections identify

all foreign-flag vessels operating from     management systems.                          an unacceptable condition or situation,

U.S. ports and to issue a Certificate                                                    it is reported to shipboard

of Compliance. Such a certificate is        SAfE T y INSPEC TIONS                        management, or shoreside

required before a passenger vessel          Shipboard safety inspections are             management if appropriate, to ensure

can embark passengers in a U.S. port,       designed to verify that watertight           that prompt, effective action is taken.

and is issued only after the vessel         doors, firefighting equipment, fire-
                                            and smoke-detecting systems, fire            SAfE T y Tr AINING
passes a rigorous Control
                                            screen doors, alarm systems, lifeboats       Seabourn has procedures designed
Verification Examination to ensure
                                            and life rafts, lifejackets and buoys, and   to ensure that all onboard personnel
that it is in compliance with the ImO
                                            other safety devices and measures are        possess the required knowledge of
SOLAS regulations.
                                            in place and working properly. These         their safety-related duties and

In addition to SOLAS, all Seabourn          inspections are accompanied by               responsibilities, and that they receive

yachts meet stringent safety                extensive lifeboat, damage control,          the training necessary to competently

standards of the country where the          and firefighting drills.                     perform their safety functions in both

ship is registered (the “Flag State”).                                                   routine and emergency situations.

The vessels are inspected annually by       In addition to these required
                                            inspections and drills, Seabourn             SECUrIT y ON bOArd
the Flag State and quarterly by the
                                            conducts ongoing safety programs             Seabourn recognizes the security of
U.S. Coast Guard. In addition, surveyors
                                            on board our vessels. Boat drills for        our guests and crew as an issue of
from specialized ship safety
                                            passengers and crew and fire drills          primary importance. We make every
verification agencies (“classification
                                            for crew take place on every voyage.         effort to provide a secure environment
societies”) inspect each vessel in detail
                                            Passenger boat drills -- at which            for all guests and crewmembers that
annually and make spot checks at
                                            attendance is taken and life jackets         sail on board our vessels.
other intervals. All vessels that visit
Canada also are inspected annually          are worn -- take place in most ports
                                                                                         First and foremost, Seabourn
by the Canadian Coast Guard. Similar        of embarkation before departure and
                                                                                         recognizes the importance of
inspections are also performed by the       never later than 24 hours after
                                                                                         partnerships in creating a secure
maritime safety authorities in other        departing the port of embarkation.
                                                                                         environment on board Seabourn
countries visited by Seabourn’s yachts.     Watertight doors and fire detection
                                                                                         yachts. Our security professionals
                                                                                               SE ABOURN’ S SUS TAINABILIT Y REPORT       31

   maintain close working relationships          onboard equipment; completion of               report that our ships also meet or
   with law enforcement, coast guard,            specific training, drills, and exercises       exceed the requirements of mTSA and
   and naval authorities around the              by onboard personnel; monitoring and           domestic regulations in other countries
   world. The resulting information-             controlling access; monitoring activities      we visit.
   sharing arrangements and                      of people; ensuring security
   collaborative efforts are essential           communications are readily available;          Carnival Corporation & plc has also

   to our security program.                      and regular external audits of the             developed and issued a comprehensive

                                                 vessel security program. We are proud          set of Corporate Security Standards
   SECUrIT y STANdArdS                           to report that all of our vessels meet         that go beyond regulatory
   Our internal security efforts begin from      or exceed the requirements of the              requirements to further ensure the
   the premise of meeting or exceeding           ISPS Code.                                     safety of its guests, ship personnel
   the applicable regulatory requirements.                                                      and ships. These standards are
   Our ships are subject to the                  Seabourn yachts are also subject to            implemented and enforced via the
   International Ship and Port Facility          domestic security regulations in the           management systems of each Carnival
   Security (ISPS) Code, a set of regulations    countries they visit. For example, ships       Operating Line including The Yachts
   and guidelines created and approved           that visit U.S. locations are subject to       of Seabourn.
   by the ImO. The ISPS Code includes            the maritime Transportation Safety
   requirements for creation of a vessel         Act (mTSA), a set of regulations
   security plan; appointment of vessel          enforced by the U.S. Coast Guard during
   and company security officers; certain        regular inspections. We are proud to

                        C r E W r E C E I v I N G O N b O A r d T r A I N I N G , b y d E PA r T M E N T





                       SEAbOUrN OdySSEy              SEAbOUrN SPIrIT            SEAbOUrN lEGENd             SEAbOUrN PrIdE

      deck                        55                          66                          20                       102

     Engine                       53                          44                          18                       94

      hotel                       510                         489                        276                       674

Other Contractors                 48                          456                         84                        7

Tr AINING ANd SUPPOrT                      emergency telephone line that may be        Seabourn in its privacy programs.
Seabourn employs a cadre of trained        used to report alleged criminal activity.   Based on these standards and
and professional security personnel on     Security staff will respond to and          guidelines, Seabourn has developed
each vessel. These security personnel      document each allegation.                   its own privacy policy, describing the
are responsible for monitoring and         Circumstances may require shipboard         principles and practices that guide the
enforcing security policies. Guests        security personnel to safeguard             way personal information is collected,
and crew will notice a visible security    evidence and possible crime scenes.         used, shared, safeguarded, and
presence while embarking the vessel        Persons suspected of committing an          disposed of during the normal course
and throughout each cruise.                offense may be detained in a secure         of business.
                                           location or removed from a vessel
Security personnel maintain strict         depending on the severity of an             In addition, Seabourn has developed
access control to our Seabourn yachts.     offense. Depending on jurisdictional        processes, policies and procedures
Only persons whose names appear on         considerations and the severity of          to support the principles established
an official vessel manifest may board      alleged offenses, Seabourn coordinates      in the privacy policy, while providing
that vessel. All persons, parcels, and     investigative efforts with appropriate      training to employees to create and
supplies boarding must pass through        government authorities.                     maintain awareness of our
a screening checkpoint. The screening                                                  privacy practices.
process is designed to limit access only   Seabourn vessels operate within an
to authorized persons while ensuring       international legal framework that          Seabourn has also developed a privacy

that no prohibited items are               provides for overlapping investigative      incident response plan designed to

brought onboard.                           jurisdiction. Guests and crew are made      address incidents of unauthorized

                                           aware that they may be subject to the       access to, disclosure, or use of personal
Seabourn employs a variety of              laws of foreign countries while on          information, maintained by Seabourn
technologies to assist security            board and while ashore enjoying             or its service providers.
personnel. These technologies may          foreign ports. Prior to embarkation on a
include surveillance technologies such                                                 On an annual basis, starting in 2010,
                                           cruise, we encourage guests to educate
as closed circuit television (CCTV) and                                                Seabourn will review the adequacy
                                           themselves regarding the local laws
screening technologies such as metal                                                   of its privacy program addressing, for
                                           and customs of the places to be visited
detectors and x-ray machines.                                                          example, the estimated losses incurred
                                           during the cruise. We also encourage
                                                                                       by Seabourn or its customers due to
                                           all guests and crew to research and
CrIME PrEvENTION                                                                       breaches, training status of employees,
                                           practice tips for safe travel.
While we endeavor to prevent the                                                       and attempted and actual unauthorized
occurrence of crime onboard, we            SAfEGUArdING PrIvAC y                       access to personal information and
occasionally receive reports of alleged    Carnival Corporation & plc has              management response.
criminal activity. Each vessel in          established standards and guidelines
Seabourn’s fleet maintains a dedicated     to be observed by The Yachts of
                                                                                 SE ABOURN’ S SUS TAINABILIT Y REPORT           33

SANITATION STANdArdS                        rOUTINE SANITATION                           n   The potential for contamination of
                                            INSPEC TIONS                                     food and water – to determine what
The Yachts of Seabourn is committed
to providing a safe, healthful              Every Seabourn vessel that calls on a            interventions are needed
environment for all of our guests. We       U.S. port is subject to unannounced,             for protection.
voluntarily work with the Centers for       twice-yearly inspections by VSP staff.

Disease Control and Prevention (CDC),       The vessels must meet the criteria           n   The practices and personal hygiene

an agency of the U.S. Department of         established by the CDC in the “VSP               of employees – to ensure cleanliness

Health and Human Services, which            Operations manual.” The vessel is                and the use of appropriate hygienic

oversees health and sanitary                given a score based on a 100-point               practices.

conditions on all passenger vessels         scale. To pass the inspection, a vessel
                                            must score 86 or above. If the vessel
                                                                                         n   The general cleanliness and physical
visiting U.S. ports.
                                            fails an inspection, it is re-inspected,         condition of the vessel – to ensure

The CDC established the Vessel              usually within 45 days.                          cleanliness and the absence of insects

Sanitation Program (VSP) in the early                                                        and rodents.

1970s as a cooperative activity with        These inspections are conducted by
                                            Environmental Health Officers (EHO)
                                                                                         n   The training programs in general
the cruise industry. The VSP assists the
                                            of the VSP, and take place only in U.S.          environmental and public health
industry in fulfilling its responsibility
                                            ports. Typically two EHOs are assigned           practices – to ensure the scope and
for developing and implementing
                                            to conduct the inspection, which may             effectiveness of such training.
comprehensive sanitation programs
in order to minimize the risk for           take from five to eight hours to
                                                                                         The results of cruise ships’ sanitation
gastrointestinal diseases. We maintain      complete, depending on the size and
                                                                                         inspections, including inspection
frequent communication with the CDC         complexity of the vessel. The scope of
                                                                                         scores, inspection reports, and cruise
and proactively report any                  the VSP inspections includes:
                                                                                         line corrective action statements are
communicable illness. We work closely                                                    published on the CDC’s VSP website.
                                            n   The water supply – to ensure that
with the CDC during the entire life of
                                                water is safely stored, distributed,
a ship. The CDC provides guidelines,                                                     During 2009, only Seabourn Spirit and
                                                protected and disinfected.
reviews plans and conducts on-site                                                       Seabourn Legend were inspected by
inspections on all new ship builds or       n   The spas and pools – to ensure           the CDC. Legend scored 97 in April of
renovations. We continue to work with           adequate filtration and disinfection.    2009 and 95 in November of 2009. Spirit
the CDC to maintain the ship through                                                     scored 94 in November of 2009.
regular inspections, crew training and      n   The food – to determine how it is
guest education.                                protected during storage, preparation    Seabourn vessels perform routine

                                                and service.                             internal sanitation self-assessments
                                                                                         to ensure that a safe, healthful
                                                                                         environment is maintained.

Carnival Corporation & plc has also          number of guests and crew, and length       of art, architecture, and antiquities
developed and issued a comprehensive         and itinerary of the voyage. Guests         comprise a rare commodity in the
set of Corporate Health Standards            requiring more comprehensive or             world economy because they are
that go beyond regulatory                    specialized care are referred to a          essentially inexhaustible. Thus they
requirements to further ensure the           shoreside facility.                         can provide a sustainable source of
health of its passengers and ship                                                        income, as well as a source of pride
personnel. These standards are               As an operating line of Carnival            and self-worth to generations of those
implemented and enforced via the             Corporation & plc, Seabourn is              who claim them as their own. The
management systems of each Carnival          committed to the Corporate Health,          learning that occurs when travelers
Operating Line, including Seabourn.          Environmental, Safety and Security          visit new places and interact with the
                                             Policy, and to complying fully with or      local people is a two-way process in
MEdIC Al fACIlITIES                          exceeding all legal and statutory           which both parties gain insights and
Seabourn has taken a proactive role          requirements related to health,             understanding that broaden their
in addressing the quality of shipboard       environment, safety and security            world views. For many individuals,
medical care. We participate in the          throughout our business activities.         travel embodies the fulfillment of
CLIA medical Facilities Working Group        To implement this policy, we promptly       dreams they have cherished for much
that developed, published and                report and properly investigate all         of their lives. For all of these reasons,
maintains industry-wide guidelines for       health, environmental, safety and           we seek to develop our business and
the facilities, staffing, equipment and      security incidents, and take appropriate    provide even more people and
procedures in medical infirmaries on         action to prevent recurrence. During        communities with the benefits of
cruise ships.                                FY2009, Seabourn did not receive any        leisure travel.
                                             fines or non-monetary sanctions for
The medical Facilities Guidelines are        noncompliance with laws                     CUSTOMEr SATISfAC TION
designed to foster the goals of: (1)         and regulations.                            Every guest on every cruise aboard
providing emergency medical care for                                                     The Yachts of Seabourn is provided the
passengers and crew; (2) stabilizing         CUlTUrE & SOCIE T y
                                                                                         opportunity to express his or her
patients and initiating reasonable           Our company is privileged to provide        satisfaction with the experience in
diagnostic and therapeutic                   services that foster travel for pleasure,   both general and specific terms. Aside
intervention; and (3) facilitating the       enlightenment, and enrichment. We           from a written invitation to address
evacuation of seriously ill or injured       believe in the redemptive power that        any issues verbally with the onboard
patients when deemed necessary by a          recreational travel brings to people’s      Hotel manager, they are invited to fill
qualified physician. All of Seabourn’s       lives. Beyond its immediate effects on      out a confidential questionnaire and
medical staff meets the qualification        the traveler, this form of travel has       score a wide variety of features and
standards in the guidelines. Facilities      powerful and positive effects on the        aspects of the voyage, as well as
and personnel vary based on several          communities that our yachts visit. A        submit any verbatim comments.
factors, including the size of the vessel,   country’s culture, history and legacy
                                                                                SE ABOURN’ S SUS TAINABILIT Y REPORT           35

During 2009, returns of this                Seabourn voyages are port-intensive,          practices, as well as for the quality of
questionnaire averaged 50 percent.          with most days spent in ports and             their operations. Operators are
Scores and verbatim comments are            travel between ports scheduled at             required to carry sufficient liability
collated, read and discussed by senior      night. Whenever possible, port calls          insurance coverage to protect
onboard staff and sent to the               are scheduled to avoid crowding and           Seabourn. Seabourn tends to avoid
company’s headquarters and                  provide a more exclusive experience to        “off-the-shelf” sightseeing excursions
reviewed by senior management there         our guests. Taking advantage of the           in favor of more authentic, in-depth
as well. There are standard procedures      limited guest capacity of its yachts,         tours. Because we operate in small
established for follow-up actions           Seabourn endeavors to provide access          groups, we are often able to provide
based on unsatisfactory scores. The         to destinations without unduly taxing         privileged access to sites and places
scores are posted internally and all        the local infrastructure. Excursions are      unavailable to larger groups, such as a
employees discuss these in regular          designed to operate with small groups.        single family farm in Asia or a museum
training and planning meetings. During      The key elements in selecting a port          or other site when it is closed to the
2009, general impression ratings            are the safety and utility of the facility,   general public. Onboard Destination
averaged 9.47 out of a possible 10.         the access to features of interest from       Services managers are thoroughly
                                            the port, and other factors that might        briefed on local customs, safety and
dEPlOyMENT dECISIONS                        affect the guest experience such as           security alerts and other miscellany
The deployment of Seabourn fleet is         restrictions, customs and immigration         that may be of use to guests such as
based on assessments of the                 clearance procedures and costs.               shopping tips, banking details and
desirability/marketability of               Political or ethical considerations may       so forth.
destinations, combined with the             occasionally affect decisions as well.
logistical feasibility of access both
from the maritime and the shoreside         ShOrESIdE E XPErIENCES
delivery points of view. Seabourn           Seabourn maintains an expert
frequently endeavors to select ports of     Destination Services department to
call that take advantage of the             plan and execute shore excursions for
intimate size and maneuverability of        guests. Generally, a selection of
its vessels, to differentiate itself from   optional general- and special-interest
competitors as a marketing                  tours is offered for sale. Guests are
advantage. most itineraries are             further encouraged to utilize these
designed to provide a mix of well-          experts to plan custom-tailored
known marquee ports and lesser-             experiences in ports of call. Logistics
known ports that offer especially           are arranged with local inbound
authentic and unusual regional              operators who are carefully vetted for
experiences to guests. The majority of      legal, ethical and human rights

PhIl ANThrOPy                              2009, Seabourn forwarded $5,800 to the         donation of Shipboard facilities for
On deck for the Cure:                                                                     fundraising Events:
                                           komen Foundation from this activity.
Seabourn participates in a corporate                                                      In November, 2009, Seabourn provided
initiative on behalf of the Susan G,       In-kind donations of Cruises for               an overnight voyage on board Seabourn
                                           Charitable Causes:
komen for the Cure Foundation                                                             Odyssey for the benefit of four
                                           Seabourn donates cruises, either at no
against breast cancer. The program,                                                       charitable arts organizations in the
                                           cost or at a minimal fee, to charitable
called “On Deck for the Cure,”                                                            miami-Dade region. The organizations
                                           causes throughout the year. The
encourages Seabourn guests                                                                were the Adrienne Arsht Center for the
                                           organization is then free to auction the
participating in its onboard team trivia                                                  Performing Arts, the New World
                                           cruise and realize the profit for its cause.
competitions to donate to the Susan G.                                                    Symphony, The miami City Ballet and
                                           In 2009, Seabourn donated over 30
komen for the Cure Foundation on                                                          Florida Grand Opera. The organizers
                                           cruises worth an estimated $585,000 to
board all of its vessels. Guests who                                                      sold tickets and Seabourn provided full
                                           organizations large and small including
donate a minimum of $25 are provided                                                      ship services including food and
                                           arts organizations, youth programs, and
with a commemorative visor and                                                            beverage service, accommodations,
                                           major national multi-cause charities
silicone wristband. Net proceeds of                                                       transportation and entertainment.
                                           such as United Way.
these donations, less only the cost of
the visor and wristband, are remitted
quarterly to the komen Foundation. In

            “. . . S e a b o u r n             donates
            cruises, either                at no cost
            or at a minimal fee, to

            charitable                           causes
            t h r o u g h o u t t h e y e a r. ”
               SE ABOURN’ S SUS TAINABILIT Y REPORT            37

Adrienne Arsht and bernadette Peters at An Ar t s Odyssey aboard
Seabourn Odyssey November, 20 09. Taken by Seth browarnik at
red Eye Productions.

      “Sea b ourn is

         committed to

g e t t i n g b e t t e r. o u r
co mmit m e nt to
t h e environment

    is no different. ”

                                          Our         PlANET

business. Every Seabourn vessel has      the impact of those activities insofar
a full-time Safety and Environmental     as possible by increasing efficiency
Officer on board at all times. This      and reducing waste wherever we can.
position is responsible to the ship’s
master for onboard oversight of          Seabourn takes advantage of its
                                                                                    flower Market in Aix-En-Provence
environmental compliance,                smaller size in comparison to its sister

implementation of environmental          companies, regarding the ability to

procedures, documentation                make quick and nimble decisions, to

management and record keeping,           experiment with new technologies

and responding to any environmental      for measuring or reducing our

issues that may arise. Seabourn’s        environmental impacts (see

Compliance department oversee            bio-sludge bacteria example in water

these activities as well as activities   treatment below), finding new ways to

beyond the borders of our vessels,       support our destination communities

such as changes to environmental         (See Hunting Caye case study on page

requirements and legislations in         47), and more.

destinations Seabourn vessels visit.
                                         This section outlines our recent

We consider it important to measure      environmental performance and

the consumption of materials and         describes some of the ways Seabourn

energy and the production of waste       demonstrates its commitment to

and byproducts resulting from our        continual improvement.

business activities, and to mitigate

                                                                                    Prickly Pear Island
                                               SE ABOURN’ S SUS TAINABILIT Y REPORT          41

             ENvIrONMENTAl                              products and services to minimize
             M ANAGEMENT SySTEM                         environmental impact. ISO 14001
Angkor Wat
             Seabourn, has adopted the                  focuses on the processes – the
             requirements of International              comprehensive outcome – of how
             Standard ISO 14001:2004 for its            services are delivered and products
             environmental management system.           are produced, rather than on the actual
             This standard enables Seabourn to          service or product itself. ISO 14001 also
             develop and implement policies and         presents a structured approach to
             objectives which take into account legal   setting environmental objectives and
             requirements, other requirements to        targets and provides a framework for
             which we subscribe, and information        any organization to apply these broad
             about significant environmental            conceptual tools to their
             aspects. We apply these requirements       own processes.
             to those environmental aspects that
             we can control and/or influence. A key     Seabourn maintains processes for
             element of our environmental               identifying and prioritizing the
             management system is the                   environmental aspects of its activities,
             requirement to set objectives and          products and services that it can
             targets for improvement of                 control or over which it can expect to
             environmental performance.                 have an influence. Seabourn has
             Seabourn’s environmental                   identified those operations and
             management system is audited by an         activities that are associated with the
             independent, third-party registrar, Det    identified significant environmental
             Norske Veritas, who have certified         aspects and plans these activities to
             Seabourn’s conformity with ISO 14001.      ensure that they are carried out under
                                                        controlled conditions. These
             ISO 14001 is one of the series of ISO      controlled conditions include well-
             14000 environmental management             documented environmental
             standards that was developed to help       management systems and procedures.
             organizations manage their processes,

       Seabourn management has set its objectives and targets for improvement of
       environmental performance. These objectives and targets are regularly reviewed
       at the Seabourn’s management review meetings and are reported to Carnival’s
       corporate offices. Seabourn’s 2009 objectives and targets for include:

                          2 0 0 9 O b J E C T I v E S & TA r G E T S

                                                         TArGET (dECrEASE frOM
              ENvIrONMENTAl ASPECT
                                                             PrEvIOUS yEAr)

                   Fuel consumption                                    3%

                  Water consumption                                    2%

               Generation of bilge water                               5%

        PERC (dry-cleaning fluid) consumption                          5%

                   Waste production                                    5%

       ENErGy                                        electrical power from three                  transportation vehicles. Thus fuel is
       Fuel efficiency is a significant priority     separate diesel generators for all other     not just used to move the vessel, but
       to Seabourn. Consumption of fuel to           shipboard operations and electrical          also to heat, cool, light and ventilate
       move and power our ships is our               services. Seabourn Odyssey (and her          the vessel’s working areas, public
       largest cost for operating our business.      sister ships) operates on electrical         rooms and guest accommodations,
       As such, attention to measures to             power created by four diesel                 as well as for the preparation of food,
       reduce our fuel consumption through           generators, which supply electricity         disposal of waste and all other
       efficient navigational practices,             both for propulsion and for other            mechanical functions. Conserving
       technologies, and changes in behavior         shipboard operations and electrical          fuel in any way possible is both an
       aboard the ship are always being              services. In both cases, energy is           ecological and an economical
       considered.                                   directly consumed in the form of fuel.       imperative for Seabourn.

       Seabourn’s vessels operate by two             In contrast to a simple transportation
       different methods. The three smaller          vehicle such as a truck or a jet aircraft,
       vessels use direct power from four            Seabourn vessels are essentially full-
       diesel engines for propulsion and             service resort hotels housed in
                                                                               SE ABOURN’ S SUS TAINABILIT Y REPORT           43

CASE STUdy:                                 CASE STUdy:
                                                                                         CASE STUDIES
fan cooled Air Chillers on Seabourn         Planning Itineraries to reduce fuel
Odyssey.                                    Consumption.
                                                                                         adjustments to arrival and departure
Among the major consumers of                The selection of ports of call and the
                                                                                         times are now made as a standard
energy on a Seabourn yacht are the          sequence in which they are visited
                                                                                         operating procedure, where practical,
systems and equipment used to cool          have always been important elements
                                                                                         to minimize fuel consumption.
the interior spaces in warm climates.       of itinerary planning for Seabourn. The
Since electricity is generated on board,    distances between the ports, and the         ShOrESIdE
this imperative creature comfort            planned activities for guests ashore         Our 99 shoreside employees that
requires significant consumption of         were factors that affected these             coordinate the overall management
fuel. Anything that can be done to          decisions. In 2009, Seabourn undertook       and planning of our business primarily
increase the efficiency of air              a comprehensive re-survey of all sailing     consume energy for heating, cooling,
conditioning will have a direct effect      itineraries with the aim of reducing         lighting, and office equipment usage.
on fuel consumption and on resultant        overall fuel consumption by adjusting
greenhouse gas emissions and other          port sequences, arrival and departure        AIr QUAlITy
possibly negative effects. On the new       times to minimize the fuel                   Seabourn uses an array of equipment,
Seabourn Odyssey, the air conditioning      consumption required, while                  methods, and systems to monitor and
systems use fan cooled chillers that        maintaining appropriate times in each        control air emissions that result from
operate much more efficiently than          port for the guests to enjoy a               the operation of its vessels. Such
more traditional systems. The system        satisfying experience. Since Seabourn        emissions include nitrous oxides
pumps chilled water to local air chillers   vessels operate with multiple engines,       (NOx), sulfur oxides (SOx), particulate
that cool the air closer to the area        the exact balance of the number of           matter (Pmx), and ozone depleting
being cooled. This is in contrast to a      engines operating makes a measurable         substances (refrigerants). All of these
less efficient central air conditioning     difference in the fuel required to           gasses are scrupulously measured
system where bulk air is chilled and        accomplish the same result. Although         and reported as a part of Seabourn’s
then ducted throughout the vessel.          itineraries vary slightly from year to       environmental management system.
This system is much more efficient,         year, and factors such as weather, sea
not only because there is less heat lost    conditions and other variables have          Controls for NOx emissions are built

in transit, but also because it is much     unpredictable affects on fuel                into the design of the engines. Newer

more responsive to changing                 consumption, as a result of this survey,     engines, such as those on Seabourn

temperature conditions in the spaces        Seabourn adjusted virtually all sailing      Odyssey are designed to produce

being heated or cooled. The                 itineraries, which contributed to            significantly lower NOx emissions.

specifications indicate that the system     reducing fuel consumption over similar
                                                                                         To reduce SOx emissions, which can
will save an estimated 464,000 kWh of       periods of operation in the previous
                                                                                         potentially contribute to urban smog
energy per year.                            year. As new ports are added and new
                                                                                         and acid rain, there are many
                                            itineraries are sailed for the first time,

international, national and state            immediately. To permit early detection     efficient systems for processing food
regulations that require sea-going           of leaks, HFC sensors have been            and waste. Seabourn also solicits
vessels to use low-sulfur fuel when          installed in the engine room, although     voluntary cooperation from guests in
operating within certain areas. Since        ventilation makes rigorous monitoring      reducing the frequency of laundering
Seabourn Pride, Spirit and Legend            difficult. Losses are monitored and any    linens and water-conserving practices
require 24 hours to switch from using        leakage is promptly repaired. Certain      in bathing, shaving, and so forth.
higher sulfur to lower sulfur fuel, which    jurisdictions are considering legislated   Processed wastewater that is returned
adds cost and time to their journeys,        mandates regarding refrigerant             to the sea is therefore in a sense being
they operate on low sulfur fuel at all       leakage and Seabourn intends and           recycled to its source.
times. The result is a significant           expects to be fully compliant with
reduction in SOx emissions throughout        these mandates.                            WASTEWATEr TrEATMENT ANd
every itinerary. Seabourn Odyssey,
                                             WATEr CONSUMPTION                          In addition to the domestic uses
which is able to quickly switch fuel
                                             The Yachts of Seabourn manufacture         described above, water is also used
grades, uses higher sulfur fuel where
                                             most of the fresh water used on board      on board for operational and other
permitted in the open sea, and low
                                             from seawater by an evaporative            purposes. Both uses of water result
sulfur fuel where regulations require it.
                                             process using waste heat from power        in the generation of wastewater,

Particulate matter emissions, which          generation equipment. Some fresh           which is treated to cleanse it of foreign

are visible as soot, and are directly        potable water is also purchased from       substances in advanced wastewater

related to the sulfur content of fuel, are   shoreside sources in cases where           treatment (AWT) systems before being

controlled by cameras that visually          consumption is unusually high or           discharged. Discharge of treated waste

monitor the ship’s engine exhausts           where desalination is inhibited, such      water is always conducted in strict

from the engine control room.                as when navigating in fresh or             accordance with international,

                                             brackish water (in the Amazon River,       national and local regulations. These
Refrigerant gases (CFCs & HCFCs) are         for instance). Fresh water is used for     systems and the waste stream are
also potentially harmful emissions           human consumption including food           diligently monitored and meticulous
from ship operations, due to their           and beverage preparation and               records are maintained as a part of
ozone depleting and/or global                washing and cleaning processes             Seabourn’s environmental
warming properties. These emissions          on board.                                  management system.
result from leakage in refrigeration and
air conditioning systems. Because            Because we must create or store all
leakage is an indicator of problems in       of our fresh water, we take water
our systems, we pay close attention to       efficiency very seriously. We aim to
any needs to ‘top off’ equipment             reduce water consumption through a
containing refrigerants to catch leaks       number of ways, including more
                                                                               SE ABOURN’ S SUS TAINABILIT Y REPORT              45

This section describes the                    (‘permeate’) that can be discharged          is processed through approved oil
generation, treatment and discharge
                                              overboard in most operating areas.           filtering equipment, and the oil
of four different types of
wastewater: blackwater, graywater,            These systems also produce biosolids         content of the effluent without
bilgewater and ballast water.                 (which is not untreated sewage) that         dilution does not exceed 15 parts per
n   Blackwater is sanitary waste from         are discharged into the open sea at a        million, all in strict compliance with all
    toilets and medical facility sinks.       controlled rate only when the ship           applicable international and national
                                              is more than 12 nautical miles from          laws and regulations.
n   Graywater is wastewater from              land, and traveling at more than 6
    cabin sinks and showers, laundry          knots, in strict accordance with all
                                                                                       n   Seabourn is the only cruise line whose
    room, galleys, and salons.                applicable environmental regulations.        vessels also use a bio-digesting

                                              Biosolids are not discharged into what       system in the treatment of bilgewater,
On all of the Seabourn ships, all                                                          which utilize living bacteria (hence the
                                              are considered ‘closed systems’ such
blackwater and some of the graywater                                                       “bio”) that actually digest oils in the
                                              as the Baltic Sea, or in other
is treated by an Advanced Wastewater                                                       water prior to filtering and discharge.
                                              environmentally sensitive areas.
Treatment (AWT) system using
membrane bioreactor (mBR)                 n   Bilgewater is water that collects in
                                                                                       n   Seabourn Odyssey uses ballast water,
technology, which is based on                 the very bottom of the ships’                which is seawater, to maintain the
biological degradation and membrane           machinery spaces (the “bilge”), and          ship’s stability and trim. Seawater
separation, to purify these waste             comes from various operational               used for this purpose may
streams. Such systems, designed               sources such as water-lubricated             inadvertently transport non-
to meet the stringent wastewater              shaft seals, propulsion system               indigenous flora or fauna from one
discharge requirements of the                 cooling, evaporators, and other              body of water to another. Seabourn
International maritime Organization,          machinery. The bilge may also                Odyssey manages its ballast water
and of the U.S. Coast Guard for the           collect oil that leaks from                  in strict compliance with applicable
State of Alaska, produce a high quality       machinery fittings and engine                ballast water regulations, thus
discharge without requiring any               maintenance activities. In order to          avoiding the introduction and spread
addition or generation of chemicals           maintain ship stability and eliminate        of aquatic nuisance species.
hazardous to the maritime or                  potential hazardous conditions from          Seabourn Pride, Spirit and Legend
shipboard environment. As a final step,       oil vapors in engine and machinery           do not use ballast water.
the purified wastewater is processed          spaces, the bilge spaces are
through an ultraviolet filter that            periodically pumped dry.
monitors and helps to assure
effluent quality.                         n   All bilgewater from Seabourn’s ships
                                              is discharged only when the ship is
n   The AWT systems on Seabourn’s             proceeding en route, the oily mixture
    ships produce a clean effluent

WASTE MANAGEMENT                           bIOdIvErSITy                                n   Observing regulatory and voluntary
Seabourn makes every effort to reduce      The health of our oceans and remote             discharge restrictions in particularly
the amount of solid waste generated        ecosystems is critical to the business of       sensitive marine sanctuaries and
by its operations. One major source of     Seabourn – without natural beauty we            other special areas, including those
solid waste is the packaging of goods      don’t have destinations. Seabourn’s             around coral reefs.
delivered to the vessels. While the        operations have the potential to have
transportation of sometimes                an impact on biodiversity in protected      n   Pursuing global and local community
perishable goods to the vessels in ports   areas and areas of high biodiversity            environmental stewardship
around the world requires a certain        value outside of protected areas.               programs. Seabourn’s shipboard and
level of packaging to preserve quality     Seabourn has developed several                  shore side employees participate in a
and freshness, Seabourn endeavors to       approaches designed to mitigate these           number of environmental outreach
reduce the impact of this on the           potential impacts.                              programs and charitable activities,
environment. Solid waste is compacted                                                      including beach clean-ups and marine
                                           Seabourn implements several strict
and, where possible, incinerated on                                                        eco-system habitat restoration.
                                           actions to protect marine animals
board, in compliance with applicable       including:
air quality regulations. On Seabourn       n   Observing speed restrictions and
                                                                                                                                    Clown fish in anemone
Odyssey, wet food waste is dried and           avoiding migration areas to protect
incinerated. Recyclable materials are          North Atlantic Right Whales.
rigorously separated and offloaded to
reliable recycling facilities ashore.      n   Treating wastewater effluent streams
Hazardous waste such as paints,                to prevent harm to marine animals.
batteries, cleaning products and
petroleum products are likewise            n   Recognizing marine mammals and
offloaded to reputable processors in           birds and their protection as
various ports of call. Crewmembers are         significant aspects of our business
encouraged to dispose of packaging             under our ISO 14001 environmental
from any goods they purchase in port           management system, and taking
before bringing them on board. While           appropriate actions to minimize the
this obviously does not reduce the net         impact of our operations on these
amount of packaging involved, it               animals.
nevertheless avoids the further
transportation of that packaging
before it reaches another destination.
                                                                             SE ABOURN’ S SUS TAINABILIT Y REPORT           47

                                                    Caviar in the Surf
                                                                                      C A S E           S T U DY
                                                                                      destinations for snorkeling and
                                                                                      scuba diving.

                                                                                      Hunting Caye is home to a small
                                                                                      Belizean Coast Guard station and a
                                                                                      small facility occasionally used by the
                                                                                      University of Belize for natural history
                                                                                      classes. Seabourn contacted the Belize
                                                                                      ministry of Agriculture and Fisheries,
                                                                                      which manages the Reserve, and
                                                                                      inquired about the possibility of using
                                                                                      the beach as a site for its water sports
                                                                                      day. As it turned out, the idea was
                                                                                      eagerly accepted by the government
CASE STUdy:                               Hunting Caye is one of over 450 cayes       agency which, like so many, operates
What is hunting Caye?                                                                 on a tight budget to manage its
                                          that dot the Belize Barrier Reef Reserve
One of the highlights of a cruise                                                     237,000-acre domain. Seabourn’s
                                          System, which in turn is a 186-mile
through Central America is the day                                                    activities have small environmental
                                          portion of the mesoamerican Barrier
when your Seabourn yacht anchors at                                                   impacts, and the few physical
                                          Reef, the second largest coral reef in
Hunting Caye in Belize for a signature                                                improvements required, such as the
                                          the world, stretching 560 miles from
Champagne and Caviar in the Surf                                                      tender-landing pier, are actually a
                                          the Yucatan peninsula in mexico in the
beach barbecue. For years, Seabourn                                                   boon, since they are used by other
                                          north to Guatemala in the south. The
looked for a beautiful coral sand                                                     visitors who otherwise might resort to
                                          Reserve System has been designated
beach where it could re-create this                                                   improvised solutions to getting ashore
                                          a UNESCO World Heritage Site since
unforgettable experience, which                                                       that could have a negative impact. And
                                          1996, cited for its great natural beauty,
was so popular during cruises in the                                                  so a mutually beneficial cooperation
                                          significant on-going biological
Caribbean islands, along its Panama                                                   developed. Seabourn contributes to
                                          processes and important and
Canal route between Fort Lauderdale,                                                  the construction, maintenance and
                                          significant natural habitats for
Florida and Puerto Caldera, Costa Rica.                                               cleaning of the site, and Seabourn
                                          conservation. It contains over 500
Hunting Caye is also an exemplary                                                     guests get to spend an unforgettable
                                          species of fish, over a hundred hard
demonstration of Seabourn’s                                                           day in a tropical coral paradise.
                                          and soft coral species, as well as a
commitment to protecting the natural
                                          myriad of invertebrates. It is
world for its own sake, as well as
                                          considered one of the world’s best
supporting destination communities.

               Our       PErfOrMANCE

                                                       GrI InDe X tABLe

                                   MANAGEMENT APPrOACh ANd PErfOrMANCE INdIC ATOrS

                                     ElEMENT                                 rEPOrT SECTION                 PAGE NO.

                                            Economic                            Philanthropy                    36

                                          Environment                            Our Planet                     40

                                                                            Working for Seabourn
                                              Labor                                                             22
                                                                             Safety and Security

                                          Human Rights                      Working for Seabourn                22

                                             Society                           Our Company                      34

                                      Product Responsibility                 Safety and Security                36


                            ECONOMIC PErfOrMANCE                             rEPOrT SECTION                 PAGE NO.

                         Direct economic value generated and distributed,
                           including revenues, operating costs, employee
                EC1       compensation, donations and other community           Philanthropy                    36
                         investments, retained earnings and payments to
                                capital providers and governments.

                                                                                         Shopping with the Chef at the local Market
                                                                           SE ABOURN’ S SUS TAINABILIT Y REPORT   49

                                         GrI InDe X tABLe


                       ENErGy                                     rEPOrT SECTION           PAGE NO.

                  Direct energy consumption by
EN3                                                                  Our Planet              42/53
                     primary energy source.
                   Indirect energy consumption
EN4                                                                  Our Planet              42/53
                        by primary source.

                        WATEr                                     rEPOrT SECTION           PAGE NO.

         Initiatives to provide energy-efficient or renewable
EN6     energy-based products and services, and reductions           Our Planet              43/53
       in energy requirements as a result of these initiatives.

EN8             Total water withdrawal by source.                    Our Planet              44/53

       EMISSIONS, EfflUENTS, ANd WASTE                            rEPOrT SECTION           PAGE NO.

               Total direct and indirect greenhouse
EN16                                                                 Our Planet              44/53
                     gas emissions by weight.
            Emissions of ozone-depleting substances
EN19                                                                 Our Planet              44/54
                           by weight.
          NOx, SOx and other significant air emissions
EN20                                                                 Our Planet              43/54
                     by type and weight.
                 Total water discharge by quality
EN21                                                                 Our Planet              44/54
                        and destination.
                Total weight of waste by type and
EN22                                                                 Our Planet              46/55
                        disposal method.

EN23      Total number and volume of significant spills.             Our Planet                55

            PrOdUCTS ANd SErvICES                                 rEPOrT SECTION           PAGE NO.

           Initiatives to mitigate environmental impacts
EN26            of products and services, and extent                 Our Planet              41/55
                         of impact mitigation.

                    COMPlIANCE                                    rEPOrT SECTION           PAGE NO.

           monetary value of significant fines and total
             number of non-monetary sanctions for
EN28                                                                Our Planet                 55
            non-compliance with environmental laws
                        and regulations.

                                                        GrI InDe X tABLe

                                           SOCIAl: l AbOr Pr AC TICES ANd dECENT WOrk

                                    EMPlOyMENT                                   rEPOrT SECTION        PAGE NO.

                        Total workforce by employment type, employment
                LA1                                                             Working for Seabourn      24
                                      contract and region.
                        Total number and rate of employee turnover by age
                LA2                                                             Working for Seabourn      22
                                   group, gender and region.

                        lAbOr /MANAGEMENT rElATIONS                              rEPOrT SECTION        PAGE NO.

                               Percentage of employees covered by
                LA4                                                             Working for Seabourn      28
                                collective bargaining agreements.

                          minimum notice period(s) regarding significant
                LA5    operational changes, including whether it is specified   Working for Seabourn      27
                                     in collective agreements

                       OCCUPATIONAl hEAlTh ANd SAfETy                            rEPOrT SECTION        PAGE NO.

                             Percentage of total workforce represented
                          in formal joint management–worker health and
                LA6             safety committees that help monitor              Safety and Security      29
                               and advise on occupational health and
                                          safety programs.

                        Rates of injury, occupational diseases, lost days and
                LA7                 absenteeism, and number of                   Safety and Security      29
                                  work-related fatalities by region.

                            Health and safety topics covered in formal
                LA9                                                              Safety and Security      29
                                 agreements with trade unions.

                            Tr AINING ANd EdUCATION                              rEPOrT SECTION        PAGE NO.

                        Average hours of training per year per employee by
               LA10                                                             Working for Seabourn      25
                                       employee category.
                            Percentage of employees receiving regular
               LA12                                                             Working for Seabourn      28
                          performance and career development reviews.
                                                                         SE ABOURN’ S SUS TAINABILIT Y REPORT   51

                                      GrI InDe X tABLe

                                       SOCIAl: hUMAN rIGhTS

             NON-dISCrIMINATION                                rEPOrT SECTION            PAGE NO.

        Total number of incidents of discrimination and
HR4                                                           Working for Seabourn           28
                         actions taken.

          frEEdOM Of ASSOCIATION
                                                               rEPOrT SECTION            PAGE NO.
         ANd COllECTIvE bArGAINING

      Operations identified in which the right to exercise
       freedom of association or collective bargaining
HR5                                                           Working for Seabourn           28
        may be at significant risk, and actions taken to
                     support these rights.

                  ChIld lAbOr                                  rEPOrT SECTION            PAGE NO.

            Operations identified as having significant
HR6   risk for incidents of child labor, and measures taken   Working for Seabourn           24
         to contribute to the elimination of child labor.

      fOrCEd ANd COMPUlSOry lAbOr                              rEPOrT SECTION            PAGE NO.

       Operations identified as having significant risk for
         incidents of forced or compulsory labor, and
HR7                                                           Working for Seabourn           24
       measurements to contribute to the elimination of
                 forced or compulsory labor.

                                           SOCIAl: SOCIET y

                  COrrUPTION                                   rEPOrT SECTION            PAGE NO.

        Nature, scope, and effectiveness of any programs
       and practices that assess and manage the impacts
SO1                                                              Our Company                 35
       of operations on communities, including entering,
                     operating, and exiting.

       Percentage of employees trained in organization's
SO3                                                              Our Company                 13
           anti-corruption policies and procedures.

                 PUblIC POlICy                                 rEPOrT SECTION            PAGE NO.

       Public policy positions and participation in public
SO5                                                              Our Company                 14
               policy development and lobbying.

                  COMPlIANCE                                   rEPOrT SECTION            PAGE NO.

      monetary value of significant fines and total number
SO8             of non-monetary sanctions for                    Our Company                 55
         non-compliance with laws and regulations.

                                                        GrI InDe X tABLe

                                                   SOCIAl: PrOdUC T rEPONSIbIlIT y

                         CUSTOMEr hEAlTh ANd SAfET y                            rEPOrT SECTION        PAGE NO.

                        Life-cycle stages in which health and safety impacts
                              of products and services are assessed for
                PR1                                                             Safety and Security       29
                       improvement, and percentage of significant products
                        and services categories subject to such procedures.

                       Information on all legal proceedings and incidents of
                PR2       non-compliance can be found in the Company’s          Safety and Security       30
                                 Annual Report on the Form 10-k.

                        PrOdUCTS ANd SErvICE lAbElING                           rEPOrT SECTION        PAGE NO.

                        Practices related to customer satisfaction, including
                SO5                                                             Culture and Society       34
                        results of surveys measuring customer satisfaction.

                                CUSTOMEr PrIvACy                                rEPOrT SECTION        PAGE NO.

                             Total number of substantiated complaints
                PR8         regarding breaches of customer privacy and          Safety and Security       35
                                     losses of customer data.

                                                                                                      Seabourn Chef
                                                                                        SE ABOURN’ S SUS TAINABILIT Y REPORT   53

    S e A B o u r n e n v I r o n m e n t A L P e r f o r m A n c e I n D I c A t o r S 2008 - 2009

                                                               20 09 PErfOrMANCE               20 08 PErfOrMANCE
   (GrI rEfErENCE)                   MEASUrE**

       Direct energy               Fuel Oil, kg/ALB-km                  0.2806                             0.2997
  by primary source (EN3)        Total Fuel consumption,
                                                                       1,112,153                       880,671

     Indirect energy
                                  Shoreside, total mWh
 consumption by primary                                                   388                               344
       source (EN4)

Initiatives to provide energy
    efficient services and
     reductions in energy                             Please refer to Our Planet – Energy (p. 43).
  consumption because of
    these initiatives (EN6)

                                Total water withdrawal by
                                                                        30,279                             28,060
                                       source (EN8)

  Total water withdrawal        Total withdrawn (produced
                                                                       125,685                             91,823
      by source (EN8)               from seawater), mT

                                Consumption/person, mT
                                                                          274                        not available
                                    (guests & crew)

 Description of significant
    impacts of activities,
 products, and services on
 biodiversity in protected                      Please refer to Hunting Caye, Belize Case Study (p. 47).
  areas and areas of high
 biodiversity value outside
   protected areas (EN12)

                                 Total CO2 equivalent, mT
                                                                        90,167                             74,967

 Total direct and indirect
                                 Total CO2 equivalent, mT
greenhouse gas emissions                                                  277                               246
                                   (indirect, shore only)
    by weight (EN16)

                                kg CO2 from fuel/ ALB-km
                                   (direct, ship only, no               0.8741                             0.9334

                 S e A B o u r n e n v I r o n m e n t A L P e r f o r m A n c e I n D I c A t o r S 2008 - 2009

             INdICATOr dESCrIPTION            SEAbOUrN UNITS Of
                                                                          20 09 PErfOrMANCE   20 08 PErfOrMANCE
                (GrI rEfErENCE)                  MEASUrE**

                                             Total mT of all emissions          2.459                3.912

                Emissions of ozone-
              depleting substances by        mT of CFC-11 equivalent             135                 215
                   weight (EN19)

                                                kg emissions/ALB                0.126                0.345

                                             NOx emissions, kg/ mile             9.07                7.50

                 NOx, SOx, and other
             significant air emissions by     SOx emissions, kg/mile             5.87                 5.1
               type and weight (EN20)

                                             Pm10 emissions, kg/mile            0.167                0.139

                                            Total mT/yr (all wastewater
                                                                               140,702              120,904

                                             Discharge of untreated
                                                                                 196                 711
                                                 blackwater, mT

                                               Discharge of treated
                                            blackwater plus permeate
                                                                                90,439              67,716
                                              discharge (treated BW
                                                  from AWTs), mT
                                              Discharge of untreated
              Total water discharge by
                                             graywater and permeate
               quality and destination                                          45,100              46,447
                                              discharge (treated GW
                                                  from AWTs), mT

                                             Discharge of biomass &
                                                                                2,752                4,133
                                               sewage sludge, mT

                                            Discharge of ballast Water
                                                                                  0                   0
                                                  (liters/ mile)

                                              Discharge of treated
                                                                                 11.3                10.1
                                             bilgewater (liters/ mile)
                                                                                   SE ABOURN’ S SUS TAINABILIT Y REPORT   55

    S e A B o u r n e n v I r o n m e n t A L P e r f o r m A n c e I n D I c A t o r S 2008 - 2009

                                                             20 09 PErfOrMANCE            20 08 PErfOrMANCE
   (GrI rEfErENCE)                  MEASUrE**

                               mT of non-hazardous waste
                                                                     1,390                        1,069
                                    discharged to sea

                               mT of non-hazardous waste
                                                                      1,247                        643
                                   disposed of ashore
 Total weight of waste by
type and disposal method
                               mT of non-hazardous waste
                                                                      371                          289

                                 mT of hazardous waste
                                                                       39                          4.3
                                  disposed of ashore

                                # of reportable spills and
                                 volume by oil, fuel, and
Total number and volume
                               chemical. Include location              0                            0
of significant spills (EN23)
                                 if spill was reported in
                                      financial report

   Initiatives to mitigate
 environmental impacts of
  products, services, and             Please refer to Our Planet – Environmental management System (p. 41).
extent of impact mitigation

    monetary value of
significant fines and total
number of non-monetary
    sanctions for non-          # of fines and their value             0                            0
     compliance with
 environmental laws and
    regulations (EN28)

                                           * * UNI T S O f ME A SUrE :

                    kg = kilograms
             Alb = Available Lower Berth                        CfC = chlorofluorocarbon, a class of chemical
                                                                       compounds that deplete ozone
                    km = kilometer
                                                              bW = blackwater, sanitary waste from toilets and
                MWh = megawatt hours
                                                                            medical facility sinks.
                 CO2 = carbon dioxide
                                                              GW = graywater, wastewater from cabin sinks and
                  MT = metric tonnes                             showers, laundry room, galleys, and salons
NOx = nitrogen oxides produced during fuel combustion          AWT – Advanced Wastewater Treatment system
SOx = sulphur oxides produced during fuel combustion
6100 Blue Lagoon Drive, Suite 400, miami, FL 33126	   Carnival House, 100 Harbour Parade                 PO Box 2006
1.800.929.9391 (U.S. and Canada)                      Southampton SO15 1ST, United kingdom               North Sydney NSW 2059, Australia
or 1.305.463.3000                                     0845 070 0500 (U.K.)                               13 24 02
(Asia, Central/South America & Caribbean)	            00800 180 84180 (Austria, Germany & Switzerland)


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