What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-01-27 compared with 2024-01-26 · 178 added, 474 removed, 483 unchanged (57% of the section changed)

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Together with their consolidated subsidiaries, Carnival Corporation and Carnival plc are referred to collectively in this Form 10-K as “Carnival Corporation & plc,” “company,” “our,” “us” and “we.” We are the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines - AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises and Seabourn.

During 2024, we announced that we will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025.

Purpose & Mission, Vision, Values and Priorities

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Every one of us, regardless of level or role, speaks up when we have questions, comments, concerns, or new ideas.

If we see something wrong or that doesn’t seem right, we say something and trust our voices will be heard without fear of retaliation.

If we see something wrong or that does not seem right, we say something and trust our voices will be heard without fear of retaliation.

• Respect & Protect - The health, safety and well-being of our people and the planet are vital.

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• Empower - We and our team members have the time, tools and support we need to do our best work.

We’re empowered to take personal ownership and accountability to succeed, and we take pride in our work.

We are empowered to take personal ownership and accountability to succeed, and we take pride in our work.

• Improve - Our business is built on forward motion.

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Set the pace with the industry’s smartest solutions that deliver on our sustainability roadmap to 2030.

Our earth, ecosystem and environment mean everything to us.

Our earth, ecosystem and environment are vital to our success.

Without the incredible communities and scenic spaces we operate in, our purpose & mission of inspiring unforgettable happiness would be impossible.

We’re determined to lead the way in sustainable cruising by promoting positive climate action, contributing to a circular economy, partnering with the communities we sail to and from and reducing our environmental footprint.

To do this, we are investing in technology upgrades and fleet improvements, piloting alternative fuel types, optimizing itineraries and cultivating a workforce that mirrors the diversity of the communities we encounter along the way.

We are determined to lead the way in sustainable cruising by promoting positive climate action, contributing to a circular economy, partnering with the communities we sail to and from and reducing our environmental footprint.

To do this, we are investing in technology upgrades and fleet improvements, piloting alternative fuel types and optimizing itineraries.

Strengthen our balance sheet and deliver long-term shareholder value.

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With our operations now at full strength and the continued support of our guests, team members, investors and other stakeholders, we are focused on our financial fitness.

We’re determined to drive revenue, operate effectively and efficiently at scale, generate record levels of cash from operations and invest our capital wisely.

We believe this will allow us to responsibly reduce our debt over time and return to strong profitability, improve our return on invested capital as well as approach investment-grade leverage metrics.

We are determined to drive revenue, operate effectively and efficiently at scale, generate record levels of cash from operations and invest our capital wisely.

We believe this will allow us to responsibly reduce our debt over time, improve our return on invested capital as well as return to investment-grade leverage metrics.

Global Cruise Industry

In the face of the global impact of COVID-19, we paused our guest cruise operations in March 2020 and began resuming guest cruise operations in 2021.

In 2023, we completed our return to guest cruise operations.

Cruising offers a broad range of products and services to suit vacationing guests of many ages, backgrounds and interests.

Each brand in our portfolio meets the needs of a unique set of consumer psychographics and vacation needs which allows us to penetrate large addressable customer segments.

Each brand in our portfolio meets the needs of a distinct set of consumer psychographics and vacation needs which allows us to penetrate large addressable customer segments.

The mobility of cruise ships enables us to move our vessels between regions in order to meet changing demand across different geographic areas.

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2027 823,630 277,710

2026 789,860 274,380

(a) 2024-2026 data is estimated based on announced newbuilds and ship retirements and does not include an estimate for unannounced ship retirements.

(a) 2025-2027 data is estimated based on announced newbuilds and ship retirements.

(b) In accordance with cruise industry practice, passenger capacity is calculated based on the assumption of two passengers per cabin even though some cabins can accommodate three or more passengers.

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Holland America Line 22,920 8 % 11

P&O Cruises (Australia) 7,230 3 % 3

P&O Cruises (Australia) 7,230 (a) 3 % 3

Seabourn 2,640 1 % 6

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Costa Cruises (“Costa”)

35,380 (a) 14 % 10

31,140 12 % 9

AIDA Cruises (“AIDA”)

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269,970 100 % 94

(a) As of November 30, 2023 Costa includes Costa Firenze, passenger capacity of 4,240, which will be transferred to Carnival Cruise Line in 2024.

(a) During 2024, we announced that we will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025.

Pacific Encounter and Pacific Adventure will be transferred to Carnival Cruise Line in early 2025 and Pacific Explorer is expected to leave the fleet in February 2025.

We also have a Cruise Support segment that includes our portfolio of leading port destinations and exclusive islands as well as other services, all of which are operated for the benefit of our cruise brands.

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Ships Under Contract for Construction

As of November 30, 2023, we have a total of 4 cruise ships expected to be delivered through 2025.

As of November 30, 2024, we have a total of six cruise ships expected to be delivered through 2033.

Our ship construction contracts are with Fincantieri in Italy and Meyer Werft in Germany.

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Carnival Cruise Line

Carnival Jubilee December 2023 5,360

Newbuild April 2027 5,330

Newbuild March 2028 5,330

Newbuild July 2029 6,160

Newbuild July 2031 6,160

Newbuild June 2033 6,160

Princess Cruises

Sun Princess January 2024 4,310

Star Princess July 2025 4,310

Queen Anne April 2024 2,960

Star Princess September 2025 4,310

Descriptions of Cruise Brands

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Carnival Cruise Line creates an environment where guests can be their most playful selves on ships that are designed to inspire the experience of bringing people together, with limitless opportunities for guests to create their own fun.

In the spring of 2023, Carnival Cruise Line introduced Carnival Fun Italian Style TM , a new concept which marries the great service, food and entertainment that Carnival’s guests enjoy with Italian design features.

Princess Cruises is The Love Boat®, the brand that introduced the world to the elegance and romance of modern-day cruising and has delivered dream vacations to millions of guests for over 55 years in the most sought-after destinations.

During 2024, we announced that we will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025.

Pacific Encounter and Pacific Adventure will be transferred to Carnival Cruise Line in early 2025 and Pacific Explorer is expected to leave the fleet in February 2025.

Princess Cruises is The Love Boat®, the brand that introduced the world to the elegance and romance of modern-day cruising and has delivered dream vacations to millions of guests for nearly 60 years in the most sought-after destinations.

Princess combines extraordinary large ship amenities with elite service personalization and simplicity to create meaningful connections and unforgettable moments in the most incredible settings across the globe.

Holland America Line has been exploring the world for over 150 years and pioneered cruising in Alaska and Yukon.

Its fleet offers an ideal mid-sized ship experience.

Holland America Line’s ships feature a diverse range of enriching experiences focused on destination exploration and personalized travel.

Live music at sea fills each evening at Music Walk, and dining venues feature exclusive selections from a Culinary Council of world-famous chefs.

For over 90 years, P&O Cruises (Australia) has taken Australians & New Zealanders on dream holidays to the most incredible destinations along the Australian coast as well as the idyllic South Pacific.

The home-grown cruise line delivers a holiday with great entertainment, world-class dining and unforgettable onboard experiences.

Delivered in the Aussie way, guests can choose to do everything, or nothing at all.

Holland America Line has been exploring the world for over 150 years with expertly crafted itineraries, extraordinary service and genuine connections to destinations.

Holland America Line visits over 100 countries around the world and has shared the thrill of Alaska with guests for more than 75 years with its ideal mid-sized ships.

Guests enjoy extraordinary entertainment at sea and dining venues featuring exclusive dishes by world-famous chefs.

Seabourn, a leader in ultra-luxury cruising, sails to legendary cities and less-traveled ports.

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Seabourn’s fleet includes two purpose-built ultra-luxury expedition ships offering amenities such as submarines, Zodiacs® and kayaks.

For 75 years, Costa’s ships have sailed the seas of the world, offering a diverse choice of cruise holidays.

Costa primarily serves guests from Continental Europe and South America, enriching them through the exploration of destinations and unique experiences, both onboard and ashore.

Its warm hospitality, entertainment and gastronomy, featuring a true European touch and Italian passion makes Costa different from any other cruise experience.

AIDA is the leading and most recognized brand in the German cruise market.

AIDA delivers unique travel experiences with modern comfort, where guests of all ages feel at home and enjoy consistently excellent service accompanied by the AIDA smile.

Guests across generations enjoy the German-inspired modern premium lifestyle cruise experience with a wide variety of culinary delights, first-class entertainment, unforgettable shore excursions, numerous sports activities, and spacious wellness areas to relax.

P&O Cruises (UK) is Britain’s largest cruise line, welcoming guests to extraordinary travel experiences designed in a distinctively British way - through a blend of discovery, relaxation and exceptional service catered towards British tastes.

For over 75 years, Costa has brought wonder to guests’ lives, allowing them to discover unique destinations and experiences both onboard and onshore.

Costa's warm hospitality and high-quality onboard services feature a true European touch and Italian passion, setting Costa apart from any other cruise experience.

AIDA is the most recognized brand in the German cruise market.

Its ships visit many beautiful destinations around the world and bring together people of all ages.

AIDA inspires guests with excellent service and a variety of extraordinary experiences.

The smile on the bow of the ships represents the unique AIDA attitude on life — relaxed, friendly, colorful, cosmopolitan and uncomplicated.

P&O Cruises (UK) is Britain’s largest cruise line and its heritage can be traced back over 185 years.

P&O Cruises (UK) welcomes guests to extraordinary travel experiences designed in a distinctively British way - through a blend of discovery, relaxation and exceptional service catered towards British tastes.

P&O Cruises (UK)’s fleet of premium ships deliver authentic travel experiences around the globe, combining style, quality and innovation with a sense of occasion and attention to detail, to create a truly memorable holiday.

For over 180 years, the iconic Cunard fleet has perfected the timeless art of luxury ocean travel.

While onboard, Cunard guests experience unique signature moments, from Cunard’s white gloved afternoon tea service to its renowned Insights Speaker program.

Guest expectations are exceeded through Cunard’s exemplary White Star Service®.

From the moment a guest steps onboard, every detail of their voyage is curated to ensure they feel special and are inspired by unique events.

Onboard Cunard, guests are free to do as much or as little as they please.

For nearly 185 years, the iconic Cunard fleet has perfected the timeless art of luxury ocean travel.

Cunard’s distinct voyages are meticulously crafted to offer fine dining and bars, unique entertainment, and the famous White Star Service®, comfort and style.

A pioneer in transatlantic journeys and World Voyages, its destinations also include Europe, the Caribbean and Alaska.

Trademarks and Other Intellectual Property

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We own or license the trademarks for the trade names of our cruise brands, each of which we believe is a widely-recognized brand in the cruise industry, as well as our ship names and a wide variety of cruise products and services.

Passengers Carried and Principal Source Geographic Areas

In 2023, we carried 12.5 million passengers, consisting of 8.6 million carried by our NAA segment and 3.8 million carried by our Europe segment.

In 2022, we carried 7.7 million passengers, consisting of 5.6 million carried by our NAA segment and 2.1 million carried by our Europe segment, which was lower than our historical levels as a result of the pause and subsequent resumption of our guest cruise operations.

Passengers Carried by Principal Source Geographic Areas

Carnival Corporation & plc

Passengers Carried

(in thousands) 2023 2022 2021 Brands’ Main Source Market(s)

(in thousands) 2024 2023 2022 Brands’ Main Source Markets

United States and Canada 7,938 7,410 5,140 Carnival Cruise Line, Cunard, Holland America Line, Princess Cruises and Seabourn

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Total 13,509 12,460 7,730

Data for 2022 and 2021 is not representative of a full year of operations.

Data for 2022 is not representative of a full year of operations.

Cruise Programs

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100 % 100 % 100 %

Data for 2022 is not representative of a full year of operations.

Cruise Pricing and Payment Terms

Each of our cruise brands establishes pricing for the upcoming seasons which are made available primarily through the internet, although published materials and electronic communications are also used.

Our brands have multiple pricing levels that vary by source market, category of guest accommodation, ship, season, duration and itinerary.

Cruise prices frequently change in a dynamic pricing environment and are impacted by a number of factors, including the number of available cabins for sale in the marketplace and the level of guest demand.

Prices vary depending on a number of factors, including the source market, category of guest accommodation, ship, season, duration and itinerary.

We offer a variety of special promotions, including early booking, past guest recognition and travel agent programs.

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Typically, the longer the cruise itinerary, the further in advance the bookings are made.

This lead time allows us to manage our prices in relation to demand for available cabins through our revenue management capabilities and other initiatives.

This lead time allows us to manage our prices in relation to guest demand and the number of available cabins through our revenue management capabilities and other initiatives.

The cruise ticket price typically includes the following:

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In addition, to secure preferential berth access to third-party ports, we enter into berthing agreements and commitments.

In May 2022, Carnival Cruise Line broke ground on its new exclusive cruise port destination, Celebration Key, expected to open in 2025 and located on the south side of Grand Bahama Island.

Celebration Key will include a pier able to accommodate up to two of our largest ships simultaneously, welcoming guests to a stunning beach and further expanding our experience offerings with an abundance of features and amenities for our guests.

Additionally, our investment in Celebration Key will support our efforts to design more energy efficient itineraries based on its strategic location and will be an important addition to our current portfolio of six corporate operated ports and destinations:

We recently announced plans to enhance Half Moon Cay, our highly rated and award-winning exclusive Bahamian destination.

The enhancements will lean further into this destination’s natural beauty and pristine appeal, reinforcing its new name – RelaxAway, Half Moon Cay.

Featuring a newly constructed pier that is expected to open in the summer of 2026, the destination will allow two ships to dock, including Carnival Cruise Line’s largest ships that will be able to visit for the first time.

During 2024, we continued construction on our new exclusive cruise port destination, Celebration Key, which is expected to open in the summer of 2025, with an additional pier opening in the fall of 2026.

Celebration Key, located on the south side of Grand Bahama Island, will welcome guests to a stunning beach and further expands our experience offerings with an abundance of features and amenities for our guests.

Once the additional pier is completed, Celebration Key will be able to accommodate up to four of our cruise ships simultaneously.

Additionally, our investment in Celebration Key will support our efforts to design more energy efficient itineraries based on its location and will be a strategic addition to our current portfolio of six owned or operated ports and destinations:

• Puerta Maya in Cozumel, Mexico

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• Amber Cove in the Dominican Republic

• Half Moon Cay, an exclusive island in The Bahamas

• RelaxAway, Half Moon Cay, an exclusive island in The Bahamas

• Princess Cays, an exclusive island in The Bahamas

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Our goal has always been to increase consumer awareness for cruise vacations and further grow our share of their vacation spend.

We measure and evaluate key drivers of guest loyalty and their satisfaction with our products and services that provide valuable insights about guests’ cruise experiences.

We proactively gather and evaluate guest feedback about their cruise experiences for valuable insights on key drivers of guest loyalty and satisfaction, with a focus on continuous improvement.

We closely monitor our net promoter scores, which reflect the likelihood that our guests will recommend our brands’ cruise products and services to friends and family, including those new-to-cruise.

During 2023, we continued our increased marketing and advertising programs after significantly reducing both during the pause and initial resumption of guest cruise operations.

Our brands have comprehensive marketing and advertising programs across diverse mediums to promote their products and services to vacationers and our travel agent partners.

Each brand’s marketing activities have generally been designed to reach a local region in the local language.

We are focused on driving further brand differentiation and clarity around each of our brand’s optimal target segments, ensuring that our creative marketing speaks to each brand’s target audience and launching more effective digital performance marketing and lead generation approaches.

Our marketing efforts historically have allowed us to attract new guests online by leveraging the reach and impact of digital marketing and social media.

Over time, we have invested in new marketing technologies to deliver more engaging and personalized communications.

This has helped us cultivate guests as advocates of our brands, ships, itineraries and onboard products and services.

Substantially all of our cruise brands offer past guest recognition programs that reward repeat guests with special incentives such as reduced fares, onboard activity discounts, complimentary laundry and internet services, expedited ship embarkation and disembarkation and special onboard activities.

During 2024, we increased our marketing and advertising programs, driving even greater demand across our portfolio of world-class cruise lines.

Each of our cruise lines is focused on creating further brand differentiation and clarity around its unique value proposition, executing on a range of carefully targeted, results-driven marketing and advertising programs to reach its optimal market segment of new and loyal guests and travel agent partners.

Among these programs are increasingly effective digital performance marketing and lead generation approaches that have attracted new guests online by leveraging the reach and impact of digital marketing and social media.

We have also invested in new marketing technologies to deliver more engaging and personalized communications, further enhancing their effectiveness.

Collectively through these programs, we have cultivated cruising advocates creating word-of-mouth demand and preference for our brands, ships, itineraries and onboard products and services.

In addition, substantially all of our cruise brands offer guest loyalty and recognition programs that motivate future purchases from our repeat guests.

Each brand strategically leverages its catalog of demand-generating rewards and incentives to bring repeat guests back time and again with finely honed offers, such as special fares, onboard activity discounts, complimentary laundry and internet services, expedited ship embarkation and disembarkation and special onboard activities.

Sales Channels

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Our individual cruise brands’ relationships with their travel agent partners are generally independent of each of our other brands.

Our travel agents’ relationships are generally not exclusive and travel agents generally receive a base commission, plus the potential of additional commissions, including discounts or complimentary tour conductor cabins, based on the achievement of pre-defined sales volumes.

Travel agent partners are an integral part of our long-term cruise distribution network and are critical to our success.

We utilize local sales teams to motivate travel agents to support our products and services with competitive pricing, promotional policies and joint marketing and advertising programs.

We utilize local sales teams to motivate travel agents to support our products and services with competitive pricing, promotional policies

and joint marketing and advertising programs.

During 2024, no group of travel agencies under common control accounted for 10% or more of our revenues.

We also employ a wide variety of educational programs, including websites, seminars and videos, to train agents on our cruise brands and their products and services.

In 2023, we held a variety of virtual and in-person trainings and educational programs to continue to support and develop our travel agent partners, including ship visits to familiarize our travel agent partners with our products and services.

In 2024, we held a variety of trainings and educational programs to continue to support and develop our travel agent partners, including ship visits to familiarize our travel agent partners with our products and services.

All of our brands have internet booking engines to allow travel agents to book our cruises.

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We approach our spend strategically and look for suppliers who demonstrate the ability to help us leverage our scale in terms of cost, quality, service, innovation and sustainability.

Our supply base is diverse and many of our business partners provide goods and services across our portfolio of brands.

Our supply base is diverse and many of our suppliers provide goods and services across our portfolio of brands.

We have continued to map our supply chains and evaluate risks, including the categories of products and services sourced and their geographic locations.

To support this effort, we are members of Supplier Ethical Data Exchange, a leading ethical trade organization, which supports businesses to operate ethically and sustainably and fight modern slavery.

We strive to build strong relationships with our suppliers and business partners.

Our Business Partner Code of Conduct and Ethics outlines our expectations and requirements for all our business partners.

It also highlights our commitments related to human rights and forced labor, respectful treatment and equal opportunity, anti-corruption, environmental protection and sustainability.

Global supply markets and supply chains have been impacted by certain global events, resulting in shortages, extended lead times and increased inflation impacting our operations and profitability.

While we are experiencing stabilization in a number of supply markets and some easing of inflation, we continue to apply a number of different strategies to mitigate the impact of these challenges on our operations, including extending our demand planning, placing purchase orders earlier to secure supply, leveraging our enterprise scale through corporate-wide agreements, utilizing short-term or long-term contracts as needed, seeking alternative sources, utilizing substitute products and leveraging our supplier relationships.

We strive to build strong relationships with our suppliers based on shared values.

Our Business Partner Code of Conduct applies to all of our suppliers and other business partners.

It outlines our expectation that our suppliers will respect and follow applicable laws and regulations and promote ethical decisions in all aspects of their business.

We have also established a Responsible and Sustainable Sourcing Policy (“RSSP”) that builds on existing policies, such as our Business Partner Code of Conduct, and our human rights and environmental policies.

RSSP establishes a framework that helps us monitor compliance with our standards and helps our business partners, including suppliers, meet our requirements for compliance and progress towards industry best practices.

It is designed to ensure that our sourcing practices align with our values of social responsibility and environmental stewardship.

RSSP addresses labor, environmental, business ethics, management systems and health and safety risks.

It also covers sustainability priorities such as sustainable food ingredients, animal welfare and sustainable shore excursions.

In recent years, global supply markets and supply chains have been impacted by certain global events and increased inflation, impacting our operations and profitability.

While we have experienced stabilization in supply markets and easing of inflation, we continue to apply a number of different strategies to mitigate the impact of these challenges on our operations, including extending our demand planning, placing purchase orders earlier to secure supply, leveraging our enterprise scale through corporate-wide agreements, utilizing short-term or long-term contracts as needed, seeking alternative sources, utilizing substitute products and leveraging our supplier relationships.

Human Capital Management and Employees

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We believe in investing in our team members through the training and development of both shoreside and shipboard team members.

We leverage a combination of virtual and in-person training to ensure that our teams are well-prepared to carry out their individual and collective responsibilities.

We facilitate trainings to ensure that our teams are well-prepared to carry out their individual and collective responsibilities.

For our shipboard team members, our goal is to be a leader in delivering high quality professional maritime training, as evidenced by the Arison Maritime Center.

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We continually strive to foster the professional development of management and team members.

As a result, we have developed a very experienced and strong group of leaders, with their performance subject to ongoing monitoring and evaluation, as potential successors to our senior management, including our CEO.

Gender Diversity

Approximate Average for 2023 (a)

Shoreside Employees 8,000 6,000

Shipboard Employees 17,000 75,000

Total Employees 25,000 81,000

As of November 30, 2023

Boards of Directors (b) 4 6

Non-Director Senior Management and Company Secretary 5 8

Non-Director Senior Management and Company Secretary Direct Reports

(a) These amounts are approximations and at times, fluctuate significantly;

for example, Holland America Princess Alaska Tours significantly increases its work force during the late spring and summer months in connection with Alaska’s cruise season.

(b) One member of the Boards of Directors preferred not to disclose.

Ethics and Compliance

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To further heighten the focus on ethics and compliance, our Boards of Directors have Compliance Committees, which oversee the Global E&C department and maintain regular communications with our Chief Risk and Compliance Officer.

Information Technology and Data Privacy

With the increasing size and sophistication of cruise ships, the technologies employed to enhance guest experiences and operate ships have grown ever more complex and integrated.

All our brands actively collaborate to maximize the business value of our information technology solutions, standards and processes to eliminate redundancies and drive process efficiencies, while increasingly leveraging our scale and common technologies.

In order to achieve our goals, we are focusing on several key factors including applications, innovation, connectivity, infrastructure, modernization, cloud migration, cybersecurity, data privacy and compliance.

Our global information technology model is designed to positively contribute to our guests, crew, shoreside team members and other stakeholders.

In response to the increasing threat of continuously evolving cybersecurity risks, we continue to invest in our information technology and operational technology cybersecurity programs.

We manage risk and protect our company’s business operations through targeted people, process and technology-focused improvements, including the implementation of data privacy and security focused training for our shoreside and select shipboard team members.

We have a Chief Information Security Officer who reports to the Chief Information Officer and is responsible for leading global cybersecurity risk reduction efforts and compliance.

Protecting data and the privacy of personal information is of critical importance to our business.

As a company, we are entrusted with personal data belonging to our guests, team members and business partners.

In light of this and the numerous jurisdictional data privacy and security laws/regulations, we have data privacy and security standards across the corporation.

Our Chief Privacy Officer and Data Protection Officers oversee our focus on the proper processing of personal information in alignment with our privacy policy and applicable privacy laws and regulations.

Our Chief Information Officer and Chief Privacy Officer are responsible for risk management with respect to information technology operations, cybersecurity and data privacy.

In addition, the Audit Committees are responsible for oversight of our risk management with respect to information technology operations and cybersecurity while the Compliance Committees oversee risk management in the area of data privacy.

Despite our efforts with respect to information technology operations, cybersecurity and data privacy, we have been, and may continue to be, impacted by breaches in data security and lapses in data privacy, which occur from time to time.

In 2023, the penalties and settlements paid in connection with cyber incidents were not material.

We maintain insurance to cover a number of risks associated with owning and operating our vessels and other non-ship related risks.

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We believe that our U.S.

source income and the income of our ship-owning subsidiaries, to the extent derived from, or incidental to, the international operation of a ship or ships, is currently exempt from U.S.

source income and the income of our ship-owning subsidiaries, to the extent derived from, or incidental to, the international operation of a ship or ships, is exempt from U.S.

federal income and branch profit taxes.

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operations, principally the hotel and transportation business of Holland America Princess Alaska Tours, are subject to federal and state income taxation in the U.S.

We do not believe we were a passive foreign investment company (“PFIC”), within the meaning of Section 1297 of the Internal Revenue Code, for the 2023 taxable year and do not currently expect to be a PFIC in the 2024 taxable year.

Application of Section 883 of the Internal Revenue Code

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source, does not qualify for the Section 883 exemption.

Among the activities identified as not incidental are income from the sale of air transportation, transfers, shore excursions and pre- and post-cruise land packages to the extent earned from sources within the U.S.

Among the activities identified as not incidental are income from the

sale of air transportation, transfers, shore excursions and pre- and post-cruise land packages to the extent earned from sources within the U.S.

Exemption Under Applicable Income Tax Treaties

We believe that the U.S.

source transportation income earned by Carnival plc and its subsidiaries currently qualifies for exemption from U.S.

source transportation income earned by Carnival plc and its subsidiaries qualifies for exemption from U.S.

federal income tax under applicable bilateral U.S.

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UK and Australian Income Tax

Cunard, P&O Cruises (UK) and P&O Cruises (Australia) are divisions of Carnival plc and have elected to enter UK tonnage tax regime under a rolling ten-year term and, accordingly, reapply every year.

Cunard, P&O Cruises (UK) and P&O Cruises (Australia) are divisions of Carnival plc and have elected to enter the UK tonnage tax regime under a rolling ten-year term and, accordingly, reapply every year.

Companies to which the tonnage tax regime applies pay corporation taxes on profits calculated by reference to the net tonnage of qualifying ships.

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For a company to be eligible for the regime, it must be subject to UK corporation tax and, among other matters, operate qualifying ships that are strategically and commercially managed in the UK.

Companies within UK tonnage tax are also subject to a seafarer training requirement.

Companies within the UK tonnage tax regime are also subject to a seafarer training requirement.

Our UK non-shipping activities that do not qualify under the UK tonnage tax regime remain subject to normal UK corporation tax.

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Italian and German Income Tax

In 2015, Costa and AIDA re-elected to enter the Italian tonnage tax regime through 2024 and can reapply for an additional 10-year period beginning in early 2025.

In December 2024, the European Commission formally approved the Italian tonnage tax rules for 10 years.

In 2025, Costa and AIDA will elect to remain in the Italian tonnage tax regime through 2034.

Companies to which the tonnage tax regime applies pay corporation taxes on shipping profits calculated by reference to the net tonnage of qualifying ships.

Most of Costa’s and AIDA’s earnings that are not eligible for taxation under the Italian tonnage tax regime will be taxed at an effective tax rate of 4.8% in 2023 and 2022.

Our non-shipping activities that do not qualify under the Italian tonnage tax regime remain subject to normal Italian corporation tax.

Substantially all of AIDA’s earnings are exempt from German income taxes by virtue of the Germany/Italy income tax treaty.

Global Minimum Tax

In December 2021, the Organization for Economic Co-operation and Development (“OECD”) issued Model Rules for implementation of a 15% minimum tax for multinational enterprises as part of its initiative intended to address the tax challenges arising from globalization.

A number of countries, including the UK and EU member states, have agreed to adopt the OECD’s minimum tax rules and several countries, including the UK, have already implemented these rules.

The phased implementation of these rules could affect us in 2026 with the potential for a one-year deferral.

Prior to any mitigating actions, we believe the annual impact could be approximately $200 million.

The application of the rules continues to evolve, and its outcome may alter our tax obligations in certain countries in which we operate.

We continue to evaluate the impact of these rules and are currently evaluating a variety of mitigating actions to minimize the impact.

The Organization for Economic Co-operation and Development (“OECD”) issued Model Rules for implementation of a 15% minimum tax for multinational enterprises as part of its initiative intended to address the tax challenges arising from globalization.

Subject to certain requirements, the OECD Model Rules provide an exclusion for international shipping income.

The implementation of these rules will affect Carnival plc and its subsidiaries beginning in fiscal 2025 and Carnival Corporation and certain of its subsidiaries beginning in fiscal 2026.

We expect Carnival plc and its subsidiaries will be eligible for the international shipping income exclusion based on their current structure.

Carnival Corporation and certain of its subsidiaries intend to align into a single tax jurisdiction where the international shipping income for its North American brands is also expected to qualify for this exemption.

As a result, we do not believe the application of these rules will have a material impact on our consolidated financial statements.

In addition to or in place of income taxes, virtually all jurisdictions where our ships call impose taxes, fees and other charges based on guest counts, ship tonnage, passenger capacity or some other measure.

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Many countries have joined together to form regional Port State Control authorities.

Our Boards of Directors have Health, Environment, Safety and Security (“HESS”) Committees, which were comprised of five independent directors as of November 30, 2023.

Our Boards of Directors have Health, Environment, Safety and Security (“HESS”) Committees, which were comprised of six independent directors as of November 30, 2024.

The principal function of the HESS Committees is to assist the boards in fulfilling their responsibility to supervise and monitor our health, environmental, safety, security and sustainability policies, programs and initiatives at sea and ashore and compliance with related legal and regulatory requirements.

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• Performing regular shoreside and shipboard audits and taking appropriate action when deficiencies are identified

• Developing, reviewing, and working to improve policies and procedures designed to prevent, detect, respond and correct various regulatory violations and other misconduct

• Developing, reviewing, and working to improve policies and procedures designed to prevent, detect, respond and correct various regulatory and other violations

• Supporting a comprehensive HESS incident investigation program that is designed to prevent re-occurrence, promote learning, and support continuous improvement

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In January 2023, MARPOL changes in support of the IMO’s GHG emission reduction goals went into effect and include an operational measure called the Carbon Intensity Indicator (“CII”), an annual ship-level CO 2 intensity emissions performance measure, and a technical measure called the Energy Efficiency Existing Ship Index (“EEXI”), a one-off measure similar to the Energy Efficiency Design Index (“EEDI”) for newbuilds, that confirms for a specific condition that a ship meets a target CO 2 emission intensity.

The EEXI has not had a material impact and the impact for CII is uncertain as the enforcement mechanism of the regulation is still to be defined.

In 2023, the IMO adopted its 2023 Strategy on Reduction of GHG Emissions from Ships (“IMO Strategy”) that would require international shipping to reduce total GHG emissions on a well-to-wake basis to net zero by or around 2050.

In addition, the framework introduces checkpoints in 2030 and 2040 that seek reductions in the absolute GHG emissions from international shipping by at least 20% and 70%, respectively, compared to 2008.

The EEXI has not had a material impact and the impact for CII is uncertain as it remains under review and the enforcement mechanism of the regulation is still to be defined.

The IMO’s 2023 Strategy on Reduction of GHG Emissions from Ships (“IMO Strategy”) strives to peak GHG emissions from international shipping as soon as possible and to reach net zero GHG emissions on a well-to-wake basis by or around 2050.

The IMO Strategy includes checkpoints in 2030 and 2040 that seek reductions in the absolute GHG emissions from international shipping by at least 20% and 70%, respectively, compared to 2008.

It also includes a target of a 40% reduction in CO 2 emissions intensity by 2030 compared to 2008.

The IMO Strategy includes a range of measures planned for implementation in 2027, including fuel standards and market-based measures that could result in changes to itineraries or increased compliance related costs for which the impact is uncertain and may individually and collectively have a material impact on our profitability.

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In addition to the requirements associated with these discharges and more stringent vessel-specific requirements, the VGP includes requirements for inspections, monitoring, reporting and record-keeping.

In 2018, the Vessel Incidental Discharge Act (“VIDA”) was signed into law and was intended to clarify and streamline discharge requirements for the incidental discharges covered by the VGP and certain U.S.

Coast Guard (“USCG”) regulations for ballast water.

The National Invasive Species Act (“NISA”) gives the U.S.

Coast Guard (“USCG”) the authority to establish U.S.

ballast water management requirements to prevent the spread of invasive species.

Pursuant to NISA, the USCG issued ballast water

regulations which include requirements for ballast water management (including type-approved ballast water management systems), monitoring, record-keeping and reporting.

In October 2024, the EPA published the final rule on the VIDA National Standards of Performance.

The VIDA requires the USCG to develop corresponding implementation, compliance and enforcement regulations within two years.

Until the USCG regulations are final, effective and enforceable, vessels continue to be subject to the existing discharge requirements established in the VGP and the USCG’s ballast water regulations, as well as any other applicable state and local government requirements.

The National Marine Sanctuaries Act provides the National Oceanic and Atmospheric Association with the authority to identify, designate and protect marine areas with special national significance.

There are currently 17 National Marine Sanctuaries and two Marine National Monuments in force, some of which are transited through by our ships.

Each area is governed by site-specific requirements that prohibit most discharges from ships.

The state of Alaska requires permitting for certain discharges from cruise ships in designated Alaskan waters.

Further, the state of Alaska requires that certain discharges be reported and monitored to verify compliance with standards and repeat violators of

the regulations could be prohibited from operating in Alaskan waters.

Further, the state of Alaska requires that certain discharges be reported and monitored to verify compliance with standards and repeat violators of the regulations could be prohibited from operating in Alaskan waters.

Environmental regimes in Alaska are more stringent than the U.S.

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The state of California also has environmental requirements significantly more stringent than federal requirements for water discharges and air emissions.

EU Regulations

EU and EU Member State Regulations

The EU has adopted a broad range of substantial environmental measures aimed at improving the quality of the environment.

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The EU adopted a series of significant reforms as a part of its Fit for 55 package to meet its 2030 emissions reduction goal.

The main instruments for reducing emissions are the Emissions Trading System (“ETS”), FuelEU Maritime initiative and the Energy Taxation Directive (“ETD”) as well as amendments to the alternative fuels infrastructure and renewable energy directives.

The main instruments for reducing emissions are the Emissions Trading System (“ETS”), FuelEU Maritime regulation and the Energy Taxation Directive (“ETD”) as well as amendments to the alternative fuels infrastructure and renewable energy directives.

The ETS regulates emissions through a “cap and trade” principle, where a cap is set on the total amount of certain emissions that can be emitted.

The maritime shipping sector is included in the scope of ETS effective January 2024 and requires ships to procure emission allowances covering 40% of their 2024 emissions inside EU waters to be surrendered in 2025, 70% of 2025 emissions to be surrendered in 2026 and 100% of annual emissions thereafter, to be surrendered in the following year.

The FuelEU Maritime initiative, which will be effective in January 2025, is a long-term framework to reduce maritime emissions by increasing the use of sustainable alternative fuels and, for the cruise industry, the use of shore power.

The initiative requires compliance with the maximum limits of GHG intensity of energy used on board.

The 2024 cost of the ETS regulations was $46 million.

The FuelEU Maritime regulation, which became effective in January 2025, is a long-term framework designed to reduce maritime emissions by increasing the use of sustainable alternative fuels and, for container and passenger ships (including cruise ships), the use of shore power.

The regulation requires compliance with the maximum limits of GHG intensity of energy used on board.

The stringency of these limits increases over time, and there are financial penalties for non-compliance.

The initiative also includes requirements for ships to connect to shore power when at EU ports.

The regulation also includes requirements for ships to connect to shore power when at EU ports.

We estimate the 2025 impact of complying with the FuelEU Maritime regulation to be approximately $10 to $15 million.

The ETD is a framework for the taxation of energy products and sets minimum rates of excise duty to encourage a low carbon economy.

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To date, there is no timeline for adoption of these amendments.

We estimate the 2024 impact of the ETS regulations to be approximately $51 million, based on a European Union Allowance cost of $75 per metric ton of emissions.

The exact impact of the Fit for 55 regulations is uncertain as elements of the proposals have not yet been finalized and enacted and will depend on future deployments.

Norway has and is considering additional regulations that supersede IMO requirements for certain air emissions from vessels.

For example, all ships operating in the Norwegian World Heritage Fjords (“WHF”) must meet IMO Tier III NOx requirements

by January 1, 2025.

Additionally, Norway has proposed that large ships operating in the WHF may not emit any GHG starting in 2032.

Norway is also currently considering a carbon tax on fuel bunkered by international shipping in Norway.

The exact impact of the Fit for 55 and the Norwegian WHF regulations are uncertain as elements of the proposals have not yet been finalized and enacted and will depend on future deployments.

Maritime Health Regulations

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In addition, the UK plans to include domestic shipping under its national ETS beginning in January 2026.

To date, they have not defined if the domestic legs or port calls of ships engaged in international voyages will be included.

To date, they have proposed that the domestic legs and port calls of ships engaged in international voyages will be included, consultations with stakeholders is ongoing.

We are, or may in the future become, subject to other laws and regulations which require our compliance, including those addressing antitrust, anti-money laundering, bribery, corruption, data privacy, human rights, securities and sanctions, reporting on sustainability matters, as well as human resources related matters.

Sustainability

We strive to be a company that people want to work for and to be an exemplary global corporate citizen.

Our commitment and actions to keep our guests and crew members safe and well, protect the environment, develop and provide opportunities for our workforce, strengthen stakeholder relations and enhance both the communities where we work as well as the port communities that our ships visit, are reflective of our brands’ core values and vital to our success.

We strive to be a desirable workplace and a model global corporate citizen.

Our efforts to ensure the safety and well-being of our guests and crew, protect the environment, create opportunities for our workforce, build strong stakeholder relationships and support the communities we operate in and visit, reflect our core values and are key to our success.

In 2021, we established goals for 2030 which incorporate six focus areas listed below that align with elements of the United Nation’s Sustainable Development Goals and build on the momentum of our successful achievement of our 2020 sustainability goals.

Sustainability Goals Progress

The tables below represent our progress through November 30, 2023 in each of our six focus areas and associated goals:

2030 Climate Action Goals Status (a) Our Progress

Achieve 20% GHG intensity reduction relative to our 2019 baseline measured in both grams of CO 2 e per ALB-km and kilograms of CO 2 e per ALBD

Accelerated • Accelerated the expected achievement of this goal by four years to 2026

• Achieved 14.0% GHG intensity reduction on an ALB-km basis relative to 2019 and 35.4% relative to 2008

• Achieved 14.1% GHG intensity reduction on an ALBD basis relative to 2019 and 39.3% relative to 2008

Reduce absolute particulate matter air emissions by 50% relative to our 2015 baseline

Increase fleet shore power connection capability to 60% of the fleet

Achieved 64% of the fleet has shore power connection capability, up from 57% in 2022 and 46% in 2021

Expand our LNG program

Ongoing Eight LNG ships in operation, representing 16% of fleet capacity, and three more on order

Optimize the reach and performance of our Advanced Air Quality System program

Ongoing 93% of the fleet has Advanced Air Quality Systems installed (b)

Expand battery, fuel cell and biofuel capabilities

Ongoing Successfully piloted the use of biofuels as a replacement for fossil fuel on one ship in 2023 and two ships in 2022

Reduce Scope 3 (indirect) emissions associated with food procurement and waste management

Ongoing Food and waste management Scope 3 emission estimates were similar to the 2019 base year

Identify carbon offset options only when energy efficiency options have been exhausted

Ongoing Continuing to monitor the carbon offset market and other alternatives

2030 Circular Economy Goals Status (a) Our Progress

Achieve 50% single-use plastic item reduction in 2021

Achieved Removed hundreds of millions of single-use plastic items from the fleet

Achieve 30% unit food waste reduction by 2022, 40% by 2025 and 50% by 2030

Achieved/ On Track • Achieved our 2022 goal

• 2025 and 2030 goals on track, as we delivered a 38% unit food waste reduction in 2023

Increase Advanced Waste Water Treatment System coverage to >75% of our fleet capacity

On Track Achieved 70% coverage of fleet capacity and 70% of ships

Send a larger percentage of waste to waste-to-energy facilities where practical

Partner with primary vendors to reduce upstream packaging volumes

Ongoing Achieved an approximately 50% reduction in plastic-based packaging materials with one primary vendor since 2022

2030 Good Health and Well-Being Goals Status (a) Our Progress

Committed to continued job creation

Ongoing Continued to open and fill a number of shoreside positions

Establish measurable Company Culture metrics and set annual improvement targets

Ongoing Completed annual culture survey for our shipboard and shoreside employees and began tracking associated metrics

Implement global well-being standards by 2023

Achieved Implemented shipboard employee well-being standards, including preventive health offers, such as vaccination protection and the prevention and detection of mental illnesses, among other benefits

Reduce the number of guest and crew work-related injuries

Ongoing Continued to implement and monitor impact of initiatives to prevent guest and crew injuries

2030 Sustainable Tourism Goals Status (a) Our Progress

Animal Welfare – responsible sourcing

• Achieve 100% cage free eggs by the end of 2025

• Achieve 100% responsible chicken sourcing by the end of 2025

• Achieve 100% gestation crate-free pork by the end of 2025

On Track Continued to work with our supply chain and met our glidepath targets for fiscal year 2023 - sourced 55% cage free eggs, 34% responsible chicken and 40% gestation crate-free pork purchases

Establish partnerships with destinations focused on sustainable economic development, preservation of local traditions, and capacity management

Ongoing • Continued construction on a new cruise port destination, Celebration Key, on Grand Bahama Island which is expected to open in 2025.

Celebration Key will provide business opportunities for the residents of Grand Bahama with an estimated 1,000 local jobs

• Continued to support the Alaskan region through community projects and the Alaska Green Corridor partnership to explore methods to accelerate the reduction of GHG emissions

• Continued to support our community efforts in the Caribbean through educational ship tour programs, celebratory events and community volunteerism

Continue to support disaster resilience, relief, and recovery efforts

Ongoing • Donated to Direct Relief to fund relief efforts in Hawaii after the devastating wildfires

• Supported disaster relief efforts in Acapulco after hurricane Otis

Build stronger community relationships in our employment bases and destinations via employee volunteering programs

Ongoing • Conducted multiple coastal cleanups involving shipboard- and shoreside employees and partners in various locations around the world

• Costa Cruises continued with its program donating meals to those who need them the most in local communities

• AIDA Cruises continued with its initiatives to provide sustainable support to local communities through the construction of new school facilities, providing numerous children with access to education

2030 Biodiversity and Conservation Goals Status (a) Our Progress

Support biodiversity and conservation initiatives through select NGO partnerships

Ongoing • Completed efforts to support Giglio Island’s marine biodiversity

• Engaged with several NGOs on potential partnership opportunities

Conduct audits and monitor animal encounter excursions regularly

Ongoing Continued audit and monitoring program

2030 Diversity, Equity and Inclusion Goals Status (a) Our Progress

Ensure our overall shipboard and shoreside employee base reflects the diversity of the world

Ongoing • Continued to employ shipboard crew members from approximately 150 countries around the world

• Our CEO signed the CEO Action for Diversity & Inclusion pledge

Expand shipboard and shoreside diversity, equity, and inclusion across all ranks and departments

Ongoing • Our company was recognized with several top employer awards more broadly for advancing diversity, equity and inclusion in the workplace

• Launched the employee resource group Women Officer Network

• Re-joined the International LGBTQ+ Travel Association

(a) Accelerated - Quantifiable/numerical goals whose timeline has been moved forward.

On Track - Quantifiable/numerical goals that are showing a positive trend towards achieving the goal.

Ongoing - Qualitative/non-numerical goals which are currently in progress.

(b) Excluding LNG ships.

A key focus of our sustainability efforts is climate action, therefore, we have developed a four-part strategy to help us achieve our GHG intensity goals:

Since then, we have achieved several goals ahead of schedule, accelerated the timeline of others and established intermediate goals.

During 2024, we conducted a comprehensive review of our 2030 sustainability goals to align with our ongoing vision and progress.

This review included revising existing goals, setting new targets, and retiring goals that have already been achieved.

The enhancement of our sustainability road map reflects our adaptive approach to addressing evolving environmental and social challenges, both globally and within the cruise industry.

• Climate Action

• Circular Economy

• Good Health and Well-Being

• Sustainable Tourism

• Biodiversity and Conservation

• Inclusion and Belonging

We voluntarily publish Sustainability Reports that address governance, stakeholder engagement, environmental, labor, human rights, society, product responsibility, economic and other sustainability-related issues and performance indicators.

These reports are not incorporated in this document and can be viewed at www.carnivalcorp.com , www.carnivalplc.com and www.carnivalsustainability.com.

For further information on our 2030 sustainability goals, refer to our Sustainability Report.

We have developed a four-part strategy to help us achieve our climate action goals as follows:

• Fleet optimization:

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• Energy efficiency:

continuing to improve our existing fleet’s energy efficiency through investment in projects such as service power packages, air lubrication systems and expanding shore power capabilities

continuing to improve our existing fleet’s energy efficiency through investment in projects such as service power packages (or power saver packs), air lubrication systems and expanding shore power capabilities to leverage renewable energy sources while in port, where available

• Itinerary efficiency:

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investing in a first-of-its-kind lithium-ion battery storage system and assessing carbon capture and storage.

We also support the adaptation of alternative fuels including biofuels such as methanol, which we are assessing as a future low GHG emission fuel option for our ships

In addition to our 2030 sustainability goals, we are committed to continuing our reduction of GHG emissions.

Our absolute GHG emissions peaked in 2011 and since that time we have decreased our emissions (on a tank-to-wake basis) by over 10%, despite capacity growth of 30% over the same period.

Additionally, we are pursuing net zero emissions by 2050, aligned with the revised IMO Strate gy.

Achieving this goal will require energy sources and technologies that do not yet exist.

We also support alternative fuels including biofuels such as bio-methane and bio-methanol, as well as synthetic or e-fuels such as e-methane and e-methanol, which we are assessing as future low GHG emission fuel options for our ships

We are working to further reduce our absolute GHG emissions.

We reduced our absolute GHG emissions from ship fuel by approximately 11% as compared to our peak year of 2011 despite capacity growth of nearly 37% over the same period.

Additionally, we are pursuing our aspiration of net zero emissions by 2050, aligned with the revised IMO Strate gy.

Achieving this goal will require energy sources and technologies that do not yet exist at scale.

While fossil fuels are currently the only scalable and commercially viable option for our industry, we are closely monitoring technology developments and pioneering important sustainability initiatives in the cruise industry.

We have partnered with companies, universities, research bodies, non-governmental organizations, and other key organizations to help identify and scale new technologies not yet ready for the cruise industry.

For example, we are piloting maritime scale battery technology, working with classification societies and other stakeholders to assess lower GHG emission fuel options for cruise ships and assessing carbon capture and storage technologies.

We have successfully piloted the use of biofuel as a replacement for fossil fuel on three ships.

The certified biofuels used in these pilots offer environmental benefits compared to using fossil fuels alone through their lifecycle GHG reductions.

We have leveraged third party studies and partnered with companies and other organizations to help identify and scale new technologies.

For example, we implemented maritime scale battery technology and are working with classification societies and other stakeholders to assess lower GHG emission fuel options for cruise ships and assessing carbon capture and storage technologies.

We have successfully used biofuel as a replacement for fossil fuel on 6 ships.

The certified biofuels used offer environmental benefits compared to using fossil fuels alone through their lifecycle GHG reductions.

These biofuels can be used in existing ship engines without modifications to the engine or fuel infrastructure, including on ships already in service.

To provide a path to net zero emissions, alternative low GHG emission fuels will be necessary for the maritime industry;

however, there are significant supply challenges that must be resolved before viability is reached.

We continue to make progress on the implementation of Service Power Packages, a comprehensive set of technology upgrades, which will be implemented over the next several years across a portion of the fleet.

however, there are significant supply and cost challenges that must be resolved before viability is reached.

Without clarity on low and zero carbon fuel availability, we are not currently able to make absolute emissions reduction commitments along a prescribed timeline.

In our view, a commitment to achieve an absolute greenhouse gas emission reduction pathway without a clear understanding of how this will be achieved is not aligned with our approach to goal setting.

While we continue to pursue our aspiration of net zero emissions, our defined goals and targets are set based on feasible, achievable, and available pathways.

We continue to implement Service Power Packages (or Power Saver Packs), a comprehensive set of technology upgrades, which will be completed over the next several years across a portion of the fleet.

These upgrades include the following elements designed to reduce both fuel usage and GHG emissions while also contributing to cost savings:

• Comprehensive upgrades to each ship’s hotel HVAC systems

• Technical systems upgrades on each ship

• State-of-the-art LED lighting systems

• Comprehensive upgrades to each ship’s hotel HVAC (heating, ventilation, and air conditioning) systems

• LED lighting systems

• Remote monitoring and optimization of energy usage and performance

The Service Power Package upgrades are part of our ongoing energy efficiency investment program and are expected to further improve energy savings and reduce fuel consumption.

Upon completion, these upgrades are expected to deliver an average of 5-10% fuel savings per ship.

We have nine Air Lubrication Systems (“ALS”) currently operating in our fleet and have additional installations in progress and planned for the future.

ALS cushion the flat bottom of a ship’s hull with air bubbles, which reduces the ship’s frictional resistance and the propulsive power required to drive the ship through the water, which generate approximately 5% savings in fuel consumption for propulsion and reductions in GHG emissions on ALS equipped ships when operating in a specific speed range.

We have eight LNG powered cruise ships in operation as of November 30, 2023 and three that are expected to join the fleet through 2025.

In total, these 11 ships are expected to represent over 20% of our total future capacity by summer 2025.

All our LNG ships also have the capability to run on MGO and bio-LNG.

While LNG is a fossil fuel and generates GHG emissions, its direct CO 2 emissions are lower than those of conventional fuels and it emits effectively zero sulfur oxides (only the sulfur in the pilot fuel is present), reducing nitrogen oxides by 85% and particulate matter by 95%-100%.

Both on a tank-to-wake and well-to-wake basis when measured using the scientifically accepted 100-year global warming potential (“GWP”) time frame, LNG has lower overall GHG emissions than conventional fuels and in the absence of market-ready zero-emission fuels, is currently the best readily available fuel to help reduce ship GHG emissions now.

The types of engines that we use are subject to small amounts of methane slip (the passage of un-combusted methane through the engine).

There are different views relating to the measurement of the environmental impact of LNG, including the methane slip.

Our disclosures report our emissions, including methane slip, as part of our total GHG emissions (reported as CO 2 e) using the 100-year GWP and are measured on a tank-to-wake basis.

We are working closely with our engine manufacturers and other technology providers to further mitigate methane slip and we are part of the Methane

Abatement in Maritime Innovation Initiative (“MAMII”), where we are partnering with other major maritime players to seek solutions for this challenge.

We are also evaluating options to remove unburnt methane from exhaust streams.

Service Power Package (or Power Saver Packs) upgrades are the main part of our ongoing energy efficiency investment program and are expected to further improve energy savings and reduce fuel consumption.

Upon completion, these upgrades are expected to deliver approximately 5% fuel savings per ship.

We have ten Air Lubrication Systems (“ALS”) operating in our fleet as of November 30, 2024 and have additional installations in progress and planned for the future.

ALS cushions the flat bottom of a ship’s hull with air bubbles, which reduces the ship’s frictional resistance and the propulsive power required to drive the ship through the water and generate approximately 5% savings in fuel consumption for propulsion and reductions in GHG emissions on ALS equipped ships when operating in a specific speed range.

We have ten LNG powered cruise ships in operation as of November 30, 2024, which represent nearly 20% of our fleet capacity and six more that are expected to join the fleet through 2033.

While LNG is a fossil fuel and generates GHG emissions, its direct CO 2 emissions are lower than those of conventional fuels.

It emits virtually zero sulfur oxides (only the sulfur in the pilot fuel is present), reduces nitrogen oxides by 85% and cuts particulate matter by 95%-100%.

The types of engines that we use experience small amounts of methane slip (un-combusted methane passing through the engine).

There are varying views on measuring LNG’s environmental impact and our disclosures report our emissions, including methane slip, as part of our total GHG emissions (reported as CO 2 e) using the scientifically accepted 100-year global warming potential (“GWP”) time frame and are measured on a tank-to-wake basis.

We are part of the Methane Abatement in Maritime Innovation Initiative, partnering with other major maritime players to find solutions for this challenge, including evaluating options to remove unburnt methane from exhaust streams.

The latest generation of LNG-fueled engines show significantly reduced methane slip and we are working with the engine manufacturers to update our existing engines to improve their methane slip performance.

As a result of these efforts, LNG’s advantage over conventional fuels in terms of reduced GHG emissions is expected to grow.

A new ship capable of running on LNG also provides flexibility and future optionality.

LNG engines are dual-fuel engines, capable of operating on MGO and LNG, including fossil, biofuel and, when available, synthetic versions of those fuels.

The type of tank and system arrangements that we have on our LNG-fueled ships also allows for future conversion to other low GHG fuels such as green methanol.

LNG ships are also built with larger fuel tanks, with the space necessary to retrofit for other fuels.

Given the expected life of a cruise ship, this provides us with more options to continue to fuel our ships regardless of how the alternative fuel markets develop in the future.

The combined impact of the factors above makes LNG the best readily available fuel to reduce GHG emissions in the absence of market-ready zero-emission or near-zero-emission fuels.

We pioneered the use of Advanced Air Quality Systems on board our ships to aid in the reduction of sulfur and are promoting the use of shore power.

Shore power enables our ships to use shoreside electric power, where available, while in port rather than running their engines to power their onboard services, resulting in reduced engine emissions and noise in port.

We now lead the industry in ships capable of plugging into shore power with twice as many ships ready to plug in as there are ports able to provide shore power.

Nearly two-thirds of our ships are equipped with this capability, and that number will increase over time as more ports provide shore power.

We also pioneered the use of shore power in 2001.

More than two-thirds of our ships are equipped with this capability, and that number will increase over time as more ports provide shore power.

We have continued our work with several local port authorities to utilize cruise ship shore power connections.

We have considered the above planned strategy in connection with the preparation of our financial statements and any estimates used in the preparation of our financial statements.

We have considered our sustainability goals and efforts, as described above, in connection with the preparation of our consolidated financial statements and any estimates used in the preparation of our consolidated financial statements.

We have voluntarily reported our GHG footprint via the CDP each year since 2006.

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Carnival Corporation & plc’s GHG emissions inventory management plan follows the guidance in The Greenhouse Gas Protocol and ISO 14064-1:2018 and our environmental management system is certified in accordance with the ISO 14001:2015 Environmental Management System standard.

These reports are not incorporated in this document and can be viewed at www.carnivalcorp.com , www.carnivalplc.com and www.carnivalsustainability.com.

Climate-Related Financial Disclosures

Under the UK Listing Rule LR 9.8.6R, Carnival plc is required to report certain climate-related financial disclosures.

With a goal towards transparency and consistent disclosure amongst our filings and stakeholders, we are including the UK required disclosures in our Form 10-K filing.

Accordingly, we set out below our climate-related financial disclosures fully consistent with the Task Force on Climate-Related Financial Disclosures (“TCFD”) Recommendations and Recommended disclosures, taking into account guidance published by the TCFD including the Guidance for All Sectors.

Our consistency with the TCFD’s four pillars, Governance, Strategy, Risk Management and Metrics and Targets, and the recommendations thereof, are represented in the table below.

TCFD Pillar Recommended disclosures Section Reference

Governance a) Describe the Boards’ oversight of climate-related risks and opportunities.

b) Describe management’s role in assessing and managing climate-related risks and opportunities.

Strategy a) Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term.

Qualitative scenario analysis

b) Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning.

Quantitative Scenario Analysis

c) Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

Risk Management a) Describe the organisation’s processes for identifying and assessing climate-related risks.

Risk Management:

Climate Risk and Opportunity Identification, Owner Assignment and Assessment

b) Describe the organisation’s processes for managing climate-related risks.

Risk Management:

Climate Risk and Opportunity Monitoring, Management and Reporting

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management.

Risk Management:

Integration into our overall risk management

Metrics and Targets a) Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process.

Metrics and Targets

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks.

c) Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.

The Chief Climate Officer (“CCO”) and the Boards of Directors are responsible for the oversight of climate-related matters and are directly supported by members of executive management.

In addition, the CCO and the Boards of Directors set the tone at the top with regards to embedding a climate risk culture through fulfilling their responsibilities as outlined in the climate risk management framework.

The CCO leads the identification of climate-related risks and opportunities and oversees how these are embedded in our strategic decision-making and risk management processes.

To further support our climate-related efforts, we created a Strategic Risk Evaluation (“SRE”) Committee in 2022.

The SRE Committee consists of members of executive management and an advisor and reports to the CEO and CCO, who in turn, reports to the Boards of Directors.

As of November 30, 2023, the SRE Committee was comprised of the following:

• Josh Weinstein - President, Chief Executive Officer and Chief Climate Officer

• David Bernstein - Chief Financial Officer and Chief Accounting Officer (Chair of SRE Committee)

• William Burke - Chief Maritime Officer

• Richard Brilliant - Chief Risk and Compliance Officer

• Jan Swartz - Executive Vice President of Strategic Operations (appointed to the SRE Committee in October 2023)

• Stein Kruse - Advisor to the CEO & Chair of the Boards

The primary responsibility of the SRE Committee is to assist the CCO in fulfilling his responsibility to identify, monitor and review the management of climate-related risks and opportunities.

The diagram below sets out the function of the SRE Committee and illustrates the interaction between the Boards of Directors, executive management and the SRE Committee.

Common recurring activities of the SRE Committee include:

• Discussing climate considerations in the planning processes to further support its focus on reducing GHG emissions

• Considering if any new climate risks or opportunities should be included in the list of identified climate risks and opportunities

• Ensuring appropriate assignment of identified climate risks and opportunities to risk owners, who are responsible for their day-to-day evaluation and management

• Obtaining at least annual reporting from the risk owners on the monitoring and management of identified risks and opportunities and reviewing, scrutinizing and challenging management of climate-related risks and opportunities

• Tracking of energy efficiency spend and progress on the installation of Service Power Packages

• Monitoring progress against our 2030 Climate Action Goals

• Reviewing and approving the climate risk management framework

• Reviewing and approving the SRE Committee charter

The SRE Committee meets at least once a quarter and in 2023, five SRE Committee meetings were held.

From these discussions, the SRE Committee has provided a quarterly update to the Boards of Directors on climate-related matters such as:

• Additional costs that will be included in the strategic, capital, itinerary and other long-term Plans

• Updates from risk owners on the monitoring and management of identified risks and opportunities for all of our monitored risks

• Updates on evolving regulations

• Results of our Scope 3 emissions quantification

Board Education Program

To enable the CCO and Boards of Directors to fulfil their responsibility to oversee climate-related risks and opportunities, a Board sustainability and TCFD education program was established in 2022, with core education components and optional self-study courses.

This sustainability and TCFD education program was developed with support from external advisors and the Senior Independent Director.

The core education components of the program were completed in November 2022.

A refresher education program, including updates to sustainability and TCFD considerations was performed in February 2023.

Risks and opportunities are reviewed and developed as part of our climate risk management framework described below.

In 2022, we performed a qualitative and quantitative scenario analysis to assess our climate-related risks and opportunities over the short, medium and long-term.

The qualitative and quantitative scenario analysis were reviewed by the SRE Committee in 2023 and no changes were identified.

Qualitative scenario analysis

In 2022, we qualitatively applied two (and quantitatively applied three) distinct plausible climate scenarios, global warming limited to below 1.5 o C above pre-industrial levels by 2100 “Steady Path to Sustainability” and global warming of 2.8 o C above pre-industrial levels by 2100 “Regional Rivalry.” The scenarios were used to generate the climate-related risks and opportunities listed in the table below.

As part of our qualitative scenario analysis, a series of workshops with the SRE Committee and a cross-section of management was conducted to identify material climate-related risks and opportunities, based on likelihood and degree of potential financial impact, over the following time horizons:

• Present – 2025 (short-term) - consistent with our internal forecasting

• 2025 – 2035 (medium-term) - aligns with our existing sustainability goals

• 2035 – 2050 (long-term) - consistent with the useful life of our ships

Following the workshops, the SRE Committee selected certain risks and opportunities for further assessment and quantification.

The process of selecting these risks and opportunities included an in-depth assessment by each participant of the proposed risks and opportunities.

The process incorporated the use of a feasibility matrix and subsequent group discussion to arrive at consensus on which risks and opportunities were most appropriate for quantification.

Feasibility was evaluated on the availability of internal and external climate-related data, the estimated number of assumptions required and the magnitude of impact and likelihood of occurrence.

Climate-related risks identified through qualitative scenario analysis

Our initial selected risks and opportunities for quantification are in bold :

TCFD risk categories Risk summary Impact time horizon

Markets and Products / Shifting Markets (1) Cruising no longer aligns to consumers’ climate values Medium Term

Reduced availability and access to fuel* Medium Term

Unable to meet climate-related requirements reduces access to capital / insurance Medium Term

Policy and Legal (1) Increased costs driven by climate-related regulations* Short-Medium Term

Risk is that cruising (as a high-GHG emissions industry) is severely restricted or subject to bans Medium Term

Reputation (1) Failure to attract and retain talent due to climate credentials Medium Term

Increased demand for reducing GHG emission practices Medium Term

Technology (1) Lack of viable low GHG emission technology to replace fossil fuels Medium Term

Physical Chronic climate change impacting supply chain availability and price Medium Term with expected increases in the Long Term

Itineraries are not viable due to extreme weather and/or sea level rise Medium Term with expected increases in the Long Term

(1) Transition Risks

*Due to the similar nature of these risks, we have combined them for the quantitative analysis into a combined risk:

“How does a transition to a low-GHG emissions future impact the price of the fuels needed to power our ship engines?”

Climate-related opportunities identified through qualitative scenario analysis

TCFD opportunity categories Opportunity summary Realisation time horizon

Energy Source Support the adaptation of sustainable technological advances for the cruise industry Medium Term

Market Access Access to new financing options available for organisations working on a low-GHG emission future Short-Medium Term

Access to private destinations or islands with infrastructure built by us

Short-Medium Term

Attract and retain new customers and improve reputation through sustainable itineraries and activities for changing climate-induced preferences Short-Medium Term

Positioning as a sustainability leader Short-Medium Term

Products & Services Opportunities for the ship to be the destination Long Term

Resilience Engage with more sustainable and economically favourable alternative suppliers Short Term

Improve resilience to physical climate risk through adaptation of itinerary routes and investment in port infrastructure Short Term

Resource Efficiency Improved operational efficiencies arising from technological advancements Medium Term

Increased fuel efficiency through alternative itinerary planning and reduced energy use Short - Medium Term

Increased resource efficiency through reduced on-board energy demand and consumption

We presently consider transition risks to be the most significant in terms of likelihood and impact.

The risks with the highest impact and likelihood of occurrence are associated with the transition to a low-GHG emission future, in a scenario where low GHG emission technology does not exist, or where we have not been able to access these technologies and where we have reduced availability and access to fuel.

The climate-related opportunities with the highest impact are a mix of mitigation and adaptation opportunities.

These include the positive impacts of supporting the adaptation of sustainable technological advances for our business, improved operational efficiencies from technological advancements, and more energy efficient itineraries from investing in port and destination projects.

Quantitative Scenario Analysis

In 2022, we quantitatively applied three distinct plausible climate scenarios to determine the potential impacts of the risks and opportunities assessed.

Using transition scenario assumptions from the International Energy Agency (“IEA”) and climate and transition scenarios from the Intergovernmental Panel on Climate Change (“IPCC”), we utilised two interlocking types of pathways, the Representative Concentration Pathways (“RCPs”) and Shared Socioeconomic Pathways (“SSPs”) to create three sets of scenarios to understand the relative materiality and possible range of impacts to the business from the selected climate-related risks and opportunities under different potential futures.

Steady Path to Sustainability (average temperature increase limited to 1.5°C above pre-industrial levels by 2100) SSP1 / RCP1.9

Under this scenario, the world takes the rapid and strong policy measures required to meet the ambition of the 2015 Paris Agreement (to keep the mean global annual temperature rise to well below 2 °C warming above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels ).

Under this scenario, low GHG emission technology takes over from fossil-fuels, and reduced economic growth is also important for reaching net zero emissions by 2050

We selected this scenario, as it provides us insight into a low-GHG emissions world that would benefit us and our Climate Action Goals.

Under this scenario, transition risks identified are material and our resilience is dependent on our ability to effectively adopt low GHG emission technologies, refer to XX.

Sustainability for further details on ways we are monitoring and piloting technology developments.

A transition to low GHG emission technologies would help us adhere to increasing requirements to transition to a low-GHG emissions future, including existing and emerging regulations, consumer preferences, and talent market expectations.

Our most impactful opportunity is the enhancement of our reputation and competitiveness, by supporting the adaptation of sustainable technological advances for the cruise industry.

This would also further help us to mitigate our transition risks.

Regional Rivalry (average temperature increase limited to below 2.8°C above pre-industrial levels by 2100) SSP3 / RCP7.0

This scenario explores a possible route in which the world is seeing an emergence of tribalism and nationalism.

Low international priority for addressing environmental concerns leads to strong environmental degradation in some regions.

The combination of impeded development and limited environmental concern results in poor progress toward climate sustainability.

Growing resource intensity and fossil fuel dependency along with difficulty in achieving international cooperation and slow technological change imply high challenges to mitigation.

We selected this scenario, as it provides an indication of the world we would operate in if we do not achieve the Paris Agreement target.

This scenario presents a higher emissions future where physical risks are material.

Business resilience under this scenario is dependent on our ability to adapt to extreme weather events and chronic physical risks.

Under this scenario we can remain resilient by taking advantage of the mobility of our cruise ships, which enables us to move our vessels between regions and adapt itineraries in cases of extreme weather events.

Additionally, based on a study performed, we are well placed to respond to increased physical risks at our new port development projects, see Investment in Port and Destination Projects.

Fossil-fueled growth (average temperature increase limited to below 4°C above pre-industrial levels by 2100) SSP5 / RCP8.5

The 4°C scenario explores a possible route in which as countries emerge from the coronavirus pandemic, governments around the world focus on restoring growth through direct support to fossil fuels and reverting to the tried and tested methods of the past.

This scenario presents the highest emissions future where physical risks have the potential to be most significant and would therefore allow us to model the impact of these extreme climate risks.

Akin to Scenario 2, business resilience under Scenario 3 will be dependent on our ability to adapt to extreme weather events and chronic physical risks as well as the impacts to our supply chain across different geographical areas.

Our experience with previous supply chain disruptions suggests that under this scenario, we would be resilient to supply chain risks given our ability to adapt to supply chain disruptions.

Key assumptions and limitations

The results of our quantitative scenario analysis have a high degree of uncertainty as there are assumptions made for all modelling inputs.

This means that results should be taken as an indicative “order of risk”.

Furthermore, the analysis assumes that the future conditions from climate change are shifted to today to contextualize impacts in relation to the current business size.

The analysis does not include:

• Forward-looking forecasting of our business operations;

• Potential mitigation or adaptation measures that could be taken either by us, or by other parties over the period considered (e.g., sustainable ship fuel development, governments building flood defenses).

Estimations and projections

In 2022, we completed several scenario analyses over three time horizons (2025, 2030, and 2050).

Any assumption made about fuel prices acknowledges the 2022 energy crisis and assumes that by 2025, oil prices will stabilize in line with IEA price projections, at the time of analysis.

We have also projected physical and transition risks at a global level due to the high mobility of our assets.

The degree of potential impact was determined on a linear scale range of “Low”, having no material impact or “High” having a material impact on Carnival Corporation & plc’s financial statemen ts.

Results of the Quantitative Scenario Analysis:

Potential Impact on Operating Income

How does a low-GHG emissions future impact the price of the fuels needed to power our ship engines?

There is an increased global regulatory focus on GHG and other emissions.

Climate-change related regulatory activity and developments that require us to reduce our emissions, which includes both the EU regulations and the IMO Strategy, may require us to make capital investments in new equipment or technologies, pay for emissions, purchase allowances and/or carbon offset credits, or otherwise incur additional costs or take additional actions related to our emissions.

Such activity may also impact us indirectly by increasing our operating costs, including fuel costs.

Additionally, fossil fuels are currently the only viable option for our industry at present, we are closely monitoring technology developments and partnering with key organizations to help identify and scale new technologies not yet ready for the cruise industry.

Refer to XIX.

Governmental Regulations and XX.

Sustainability.

How would changing consumer sentiments drive changes in demand for our offering ?

To mitigate the impact of this risk, our short and medium-term GHG emissions goals focus on GHG intensity reduction, measured in both grams of CO 2 e per ALB-km and kilograms of CO 2 e per ALBD.

In addition, we are committed to our reduction of GHG emissions and pursuing net zero emissions by 2050, aligned with the IMO Strategy and are at the early stages of developing our transition plan .

To provide a path to net zero emissions, alternative low GHG emission fuels will be necessary for the maritime industry;

however, there are significant supply challenges that must be resolved before viability is reached.

Sustainability.

How are our profits affected by an increase in food commodity prices?

Under Scenarios 1 and 2, the impacts on food prices are indistinguishable from the historical commodity market volatility.

Under Scenario 3, we could face higher food costs which may impact our value chain and operating profit.

Our existing supply chain management strategies have remained resilient through the more recent supply chain issues experienced globally, demonstrating our ability to mitigate global-scale disruptions.

In addition, our Circular Economy 2030 Goals include achieving a 50% unit food waste reduction per person by 2030.

Refer to XIII.

Supply Chain and XX.

Sustainability.

What are the future savings associated with operational efficiency improvements?

Under each scenario, the estimated total price of the fuel is the same, but the amount of fuel demanded differs based on assumptions about operational efficiency improvements.

To capture this potential upside, we are investing in projects that improve the energy efficiency of our fleet.

A premium for lowering our GHG emissions, ranging between $75 and $100 per metric ton depending on the type of fuel, was added to the cost of fuel during the strategic, capital, itinerary and other long-term planning processes and is used to evaluate the payback period and return on investment for capital projects.

We are also ensuring that our brands design more energy efficient itineraries through our Corporate Itinerary Reviews.

For further details of our strategies in place to capture this opportunity, refer to XX.

Sustainability.

How could providing a service geared towards changing consumer sentiment drive long-term growth for us?

Under scenarios 2 and 3, an immaterial number of consumers would align to low-GHG emissions services.

Under Scenario 1, from 2025 to 2050 across all countries, there is an increase in the expected price per Passenger Cruise Days that we will be able to charge.

By continuing to reduce our GHG emissions through our strategies such as investing in energy efficiency projects, fleet changes, itinerary changes, and port developments, we can remain resilient under Scenario 1.

For further details of our strategies in place to capture this opportunity, refer to XX.

Sustainability.

Investment in Port and Destination Projects

In addition, a climate study was undertaken in 2022 by a third party for two of our port development projects at Celebration Key and Half Moon Cay Pier Project (The Bahamas), to enhance climate resilience.

Based on the results of this study, we are well placed to respond to the physical risks of climate change at the two planned port locations and will have a number of measures in place to address physical climate impacts.

These results were reviewed by the SRE Committee and presented to the Boards of Directors in 2022 for an investment decision, which was approved.

Furthermore, our investments in these ports and destinations support our efforts to design more energy efficient itineraries based on their strategic locations.

Risk Management

We utilize a process for managing our climate risks and opportunities which begins with climate risk and opportunity identifica tion then fol lows with owner assignment, assessment, monitoring, management and reporting.

This process is ongoing and iterative.

Climate Risk and Opportunity Identification, Owner Assignment and Assessment

The qualitative scenario analysis is the foundation of our climate risk and opportunities identification and assessment process and began with the evaluation of a long list of climate-related risks and opportunities we may face, to generate an initial list of

possible risks and opportunities.

As discussed above, we considered a high-GHG emissions and a low-GHG emissions scenario.

Input from key stakeholders in the business was obtained through facilitated workshops to identify additional climate risks and opportunities and refine the list before prioritizing those identified.

Assessment of these risks and opportunities was performed by the SRE Committee and a cross section of management, who qualitatively evaluated the impact and likelihood of these risks and opportunities.

Certain financial, regulatory, reputational and physical risks and opportunities were then selected for more detailed quantitative scenario analysis.

The SRE Committee reviews the selected risks and opportunities from our qualitative scenario analysis quarterly and considers if any risks or opportunities no longer need monitoring, and if any new climate risks or opportunities should be identified.

Each climate risk has been assigned an owner who has responsibility for the day-to-day evaluation and management of the risk.

Following the climate risk identification process, climate risks are assessed based on expected impact, likelihood, time horizon and speed of onset.

Climate Risk and Opportunity Monitoring, Management and Reporting

The primary method for review, scrutiny, and challenge of climate risks, involves the risk owners monitoring, assessing and reporting how each risk and opportunity is changing over time based on climate risk indicators and discussing options with the SRE Committee to reduce, accept, avoid or transfer risk.

Integration into our overall risk management

Overall, the Boards of Directors are responsible for determining the strategic direction of the company and the nature and extent of the risk assumed by it.

Within our risk management framework, the Boards of Directors have ultimate oversight of climate-related risks, which have been identified as a principal risk.

Refer to the Governance pillar for a description of how climate-related risks are overseen.

Metrics and Targets

Our most material quantified risks are the transition risks .

To mitigate the impact of these risks, we have identified a four-part strategy, including fleet optimization, energy efficiency, itinerary efficiency, and new technologies and alternative fuels.

The metrics and Climate Action Goals associated with these risks and opportunities, are outlined above within XX.

Sustainability.

To demonstrate our commitment to achieving our Climate Action Goals, our executive compensation targets are linked to our progress toward achieving certain of our 2030 Sustainability Goals.

Our direct (Scope 1), indirect (Scope 2) and indirect value chain (Scope 3) GHG emissions are quantified and reported.

Additionally, limited assurance is provided on our GHG emissions by an independent third party.

These are disclosed in our Carnival plc Annual Report but are not incorporated by reference into this Form 10-K.

In 2022, we stated that our climate disclosures were consistent with 10 of the 11 TCFD recommendations.

The one area where we were not consistent related to the disclosure of scope 3 emissions.

In 2023, we performed an inventory of our Scope 3 GHG emissions using the U.S.

EPA Supply chain GHG Emission Factors v1.2 and determined that our Scope 3 emissions were estimated to be approximately 40% of our total emissions.

We have made progress over the past 15 years reducing our GHG emissions intensity and achieved our 2020 goal (to reduce the intensity of CO2e by 25% relative to a 2005 baseline, measured in grams CO2e / ALB-km) three years early, in 2017.

We have also made progress towards our 2030 GHG intensity reduction goal of 20% from our 2019 baseline, measured in both grams of CO 2 e per ALB-km and kilograms of CO 2 e per ALBD.

In 2023, we reduced our GHG emission intensity on a lower berth distance basis by 14.0% and on an ALBD basis by 14.1% relative to our 2019 baseline.

Relative to 2008, our GHG emissions per ALBD have been reduced by 39.3% while our capacity has grown by 55%.

Sustainability.

Website Access to Carnival Corporation & plc SEC Reports

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Item 1. Business