Royal Caribbean Cruises Ltd. (RCL) — ESG & Values Scores

Environment story

Environmental score reflects absence of disclosed Scope 3 emissions trends and a disclosed net-zero target year in the reviewed filings, offset partially by verified physical decarbonization investments (AEP exhaust-scrubber systems on over 70% of the fleet and LNG-powered newbuilds). No offset-driven emissions claims or net-zero-operations-only messaging were identified in the reviewed sources, so greenwashing caps were not triggered. This is descriptive research output, not investment advice.

Criticisms on file

Risk factor disclosure of NGO/community opposition to land-based destination and port development projects on environmental-impact and land-use grounds
Source: RCL_10k.txt - Item 1A Risk Factors, 'Our expansion into new markets and investments in new ventures...'
Ongoing regulatory exposure under IMO GHG Strategy, EU ETS, and FuelEU Maritime regulations citing potential material compliance cost increases
Source: RCL_10k.txt - Environmental Regulations section

Disclosed initiatives

Advanced Emissions Purification (AEP) systems

More than 70% of fleet equipped with AEP scrubber systems reducing sulfur emissions; installed on all new ships since 2014

Reduces sulfur oxide emissions toward MARPOL ECA compliance (0.1% sulfur content)
LNG-powered newbuilds

Majority of ships on order being delivered with Liquified Natural Gas propulsion technology meeting sulfur regulations without AEP

Physical infrastructure reducing operational air emissions
TCFD-aligned climate disclosures

Company publishes climate-related disclosures following Task Force on Climate-related Financial Disclosures recommendations

Improved transparency; impact on actual emissions reduction not quantified

Social story

Social score is reduced due to leadership representation (board and executive officers) falling below the 30% diversity threshold used in this rubric. Labor relations metrics disclosed (87% CBA coverage, no reported strikes or NLRB actions in source documents) do not trigger a deduction. CEO-to-median-worker pay ratio was referenced as a proxy statement section but the specific ratio figure was not present in the reviewed excerpt, so no penalty was applied for that factor. This is descriptive research output, not investment advice.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Learning and development programs

Workforce invested ~1.8 million hours across ethics, compliance, leadership, safety and technical training in 2025; ~2.8 million courses completed

Supports skills development and career growth
Employee engagement (pulse) surveys

Periodic surveys used to monitor shoreside employee experience; 2025 scores above global industry benchmarks per company disclosure

Self-reported engagement improvement

Governance story

Governance score is high based on disclosed board independence (~92%), absence of a dual-class voting structure, no poison pill, majority voting standards, and no disclosed active antitrust, consumer-safety, or fraud proceedings in the reviewed filings. A related-person ship charter transaction with a director-affiliated entity was reviewed and approved under the company's related-person transaction policy at arm's-length terms. This is descriptive research output, not investment advice.

Criticisms on file

Related-person transaction: entity affiliated with director Eyal Ofer entered a $4.2 million ship charter agreement with the company in June 2025, reviewed and approved by the Audit Committee as arm's-length
Source: RCL_proxy.txt - Certain Relationships and Related Person Transactions

Disclosed initiatives

Shareholder engagement program

Outreach to top 25 shareholders (69% of outstanding shares) with meetings held representing 43% of outstanding shares in 2025

Structured feedback loop on governance and compensation
Anti-hedging/pledging and clawback policies

Prohibits directors and Section 16 officers from hedging or pledging company securities; incentive plans include recoupment provisions for financial restatements

Reduces misaligned executive risk-taking incentives
No poison pill; majority voting; annual director elections

Shareholder rights include annual election of directors, majority-vote standard, and ability for holders of 50%+ of shares to call special meetings

Supports shareholder accountability mechanisms

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Royal Caribbean Cruises Ltd.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Royal Caribbean Cruises Ltd. in the app for interactive charts and portfolio building.

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