Carnival to Pay $20 Million Fine, Up Environmental Compliance

Carnival Sunrise

Carnival Corporation has reached a deal with federal prosecutors in which the company will pay a $20 million fine and agree to more environmental compliance measures. The deal is subject to approval by a judge.

The company admitted it had committed violations and violated terms of its previous probation and its Environmental Compliance Plan.

Carnival will reorganize and enhance existing policies as they related to its environmental management system, including improvements to its waste management, according to court documents. 

New “Tiger Teams” will be created to develop an action-plan on food waste and other key areas.

Carnival Corp. agreed to issue a statement to all employees in which its CEO will accept responsibility for the violations.

In addition, the company said it failed to establish a Corporate Compliance Manager, which it will now do, as well as appoint a Chief Compliance Officer with “substantial control” to oversee compliance functions, reporting directly to the CEO with a dotted line to the Audit and HESS committees.

A new executive compliance committee will also meet monthly with the Chief Compliance Officer and Corporate Compliance Manager.

Further annual training on compliance topics will be implemented, and an environmental action plan is expected by August 14.

The agreement is vast, including more third-party fleetwide compliance audits

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