2009 Sustainability performance summary. Towards a sustainable Heathrow

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1 2009 Sustainability performance summary Towards a sustainable Heathrow

2 Performance summary This document provides a summary of Heathrow s performance across a range of sustainability issues. A series of sustainability briefings help explain the data provided in this report. These briefings, along with more detailed information on our approach to creating a sustainable future Heathrow, are available at Performance measure General business Underlying revenue ( million) NA 1,325 1,583 1,662 Underlying operating profit ( million) NA HAL 1 employees 4,527 5,197 5,844 5,498 Passengers (million) Airlines Destinations served Flights 470, , , ,026 Cargo (1,000 tonnes) 1,264 1,314 1,401 1,278 QSM - Security queue time rating (departing passengers) QSM - Overall airport experience rating (arriving passengers) QSM - Overall airport experience rating (departing passengers) Environment Climate change CO 2 emissions from energy use (tonnes) 271, , , ,084 Scope 1 CO 2 emissions (tonnes) 4 NA NA 98,346 81,474 Scope 2 CO 2 emissions (tonnes) 5 NA NA 239, ,735 Scope 3 CO 2 emissions (tonnes) 6 NA NA 2,038,813 1,975,673 Air quality Air traffic movements with NO X emissions at least 20% better than CAEP/4 standard (%) Air traffic movements with NO X emissions at least CAEP/4 standard (%) Airline compliance to Auxiliary Power Unit (APU) standard (%) NA HAL 1 vehicles powered by hybrid, electric or LPG (Total) HAL 1 vehicles powered by hybrid, electric or LPG (%) NA NA NA 17 Noise Chapter 3-high aircraft (%) Average Continuous Descent Approach (CDA) per quarter (%) NA NA Departing aircraft on track (%) Infringements of Government day and night take off limits Noise complaints 6,370 5,430 5,238 4,283 Adherence to the arrival runway alternation pattern ( local) (%) NA NA Waste Waste produced (tonnes) 7 27,942 27,950 29,502 26,489 Waste recycled or composted (%) Hazardous waste produced (tonnes) NA NA Hazardous waste recycled (%) NA NA Construction waste recycled (%) NA NA Water quality Prosecutions for non-compliance to discharge consents Biological Monitoring Working Party Score 9 (BMWP) - River Crane 56/54 53/59 54/61 NA 10 upstream/downstream (Spring) Biological Monitoring Working Party Score 9 (BMWP) - Clockhouse Lane 25/45 27/42 48/40 NA 10 Pit upstream/outlet (Spring) Water consumption Metered water used (m 3 ) 2,698,565 2,434,574 2,259,360 2,140,934 Harvested rainwater used (m 3 ) 11 NA NA NA 27,597 Borehole water used (m 3 ) NA NA NA 318,243

3 Performance measure Our people Employment Permanent employee turnover (%) Internal promotions External recruits 882 1,216 1, Engaging our people Active members in pension scheme 4,224 4,648 5,350 4,991 Pensioners 2,543 2,662 2,707 2,831 Ratio of male:female employees 66:34 61:39 60:40 61:39 Employees from non-white ethnic backgrounds (%) Training & skills Training days 7,080 9,267 12,847 10,898 Employees receiving training (%) Health and safety Category 3 accidents per 1,000,000 passengers Reportable accidents per 100,000 employees Employee lost time injuries per 100,000 hours worked Construction: reportable accidents per 100,000 hours worked Community investment and economic development Business support Buyers attending annual Heathrow Meet the Buyer event Suppliers from 5 local boroughs attending Meet the Buyer Value of business generated through Meet the Buyer ( million) NA Employability Employed residents of 5 local boroughs working at Heathrow (%) NA Unemployed or economically inactive residents of 5 local boroughs accessing airport employment through HAL 1 supported programmes Students from schools and colleges within 5 local boroughs attending NA NA Heathrow Apprentice Fair Exhibitors attending Heathrow Apprentice Fair NA NA Education and skills People completing NVQs managed by HAL 1 NA People completing apprenticeships managed or supported by HAL Students from schools and colleges within 5 local boroughs NA NA 1,899 3,918 participating in HAL 1 education programme Community investment HAL employees volunteering in community projects Voluntary expenditure 13 ( million) NA NA HAL 1 investment required under a legal obligation ( million) NA NA HAL 1 community noise mitigation and compensation schemes ( million) NA NA Total community investment ( million) NA NA Congestion Passengers using public transport to and from Heathrow (%) Heathrow Airport Limited 2 QSM rating: 1 = very poor, 5 = Excellent 3 In 2008, we amended our greenhouse gas (GHG) reporting methodology to align with the DEFRA GHG Guidelines. This changed the carbon emissions factor from electricity that we buy from the grid to from 0.43 used previously. This means that although we had reduced energy use at the airport, our CO2 emissions increased 4 Emissions from fuel consumption in utilities and company owned/leased operational vehicles/equipment 5 Emissions from electricity consumption 6 Emissions from aircraft in the landing and take-off cycle (as defined by ICAO), passenger and staff surface access, third party operational vehicles and equipment, airport employee business travel, waste management, water supply and treatment 7 Includes HAL 1 contract waste and hazardous waste but not other waste streams such as aircraft food waste. We are planning to develop our reporting of total airport waste in future 8 Comprising T5c and T2 phase 1 construction waste 9 BMWP score: Higher score indicates better water quality 10 In 2009 a ten year review of biological monitoring was undertaken as an alternative to provision of annual score 11 Rainwater harvesting commissioned in November 2009 and not operated during periods of de-icer application 12 Estimated value 13 Including BAA Communities Trust and third party funds raised for charity of the year

4 Performance against targets Target topic 2009 target 2009 performance 2010 target Climate Change Publish a 2008 carbon footprint together with an outline CO 2 emission reduction programme Published carbon footprint Publish a 2009 carbon footprint together with an outline CO 2 emission reduction programme Energy Reduce site CO 2 emissions by 2% against the business as usual forecast through improvements in energy efficiency 11.5% reduction against business as usual forecast to 331,084 tonnes of CO 2. An absolute CO 2 reduction of 0.97% Reduce absolute site CO 2 emissions to 330,367 tonnes through improvements in energy efficency 1 Air quality Improve compliance with the APU operating restrictions as measured by turnaround audits by 5% in 2009 from a baseline of 78% in % compliance Meet 85% APU compliance (as measured by HAL s 2 methodology) against the revised APU criteria Noise Maintain performance on 15 of the 22 operational noise indicators that are measured by the Flight Evaluation Unit Publish the Heathrow Noise Action Plan and complete the actions contained therein which are due in Waste Increase recycling for the general waste handled by the airport waste contract to 45% by 31st December 2009 Target not achieved Recycled 40.6% of general waste Increase recycling of the general and landscaped waste handled by the airport waste contract to 50% Waste At least 85% of construction waste recycled Recycled 90.3% of construction waste 3 At least 85% of construction waste recycled Water consumption Reduce water consumption by 4% from business as usual forecast between January and December 2009, through improvements in water conservation 8% reduction against business as usual forecast Set a long-term mains water reduction target for Heathrow Water quality BAA Asset Stewardship standards implemented for all BAA owned surface water critical assets Substantial progress made Asset stewardship programme implemented 4 Initiate the first phase of de-icer recovery during the 2009/2010 winter season and set a long term de-icer recovery goal Congestion 40% of passengers to take public transport to the airport by % Public transport use 40% of passengers to take public transport to the airport by We significantly over achieved our 2009 target. Although our 2010 represents a small additional % reduction, we believe it remains a challenging target given our forecast energy use in 2010 and the need to sustain emissions cuts from Heathrow Airport Limited 3 Target relates to T5C and T2B phase 1 major projects, which have centralised waste logistics. In 2010 we will progressively expand data to include all construction projects and believe 85% remains a challenging recycling target. We will continue to review this target post The full implementation of some requirements established in the standards can only be achieved after 12 months from the start of the standards implementation. Heathrow is committed, and on track, to achieving those requirements in full 5 We maintain our committment to increase this to 45% in the longer term with the introduction of new strategic public infrastructure such as Airtrack

5 Assurance Heathrow has a programme of external assurance covering the indicators included in the sustainability report. The programme captures different indicators each year, enabling independent review of a wide range of measures. DNV Assurance Statement Det Norske Veritas (DNV) carried out an independent verification of selected information presented in Heathrow Airport Ltd s ( Heathrow ) Sustainability performance summary 2009 ( the Report ). The Management of Heathrow is responsible for all information provided in the Report as well as the processes for collecting, analysing and reporting that information. DNV s responsibility regarding this verification is to Heathrow only, in accordance with scope of work carried out. DNV disclaims any liability or responsibility to a third party for decisions, whether investment or otherwise, based on this Assurance Statement. Scope DNV s scope of work included the verification of the process undertaken by BAA Heathrow to select the Key Performance Indicators (KPIs) and targets to be reported on (materiality review). It also included the verification of the accuracy and completeness of data presented in the Report in relation to the KPIs and targets listed below and indicated by DNV s logo in the Report. These were selected by Heathrow as part of a rolling programme for External Assurance. CO2 emissions from energy use; Aircraft on track; Compliance with Auxiliary Power Unit standard; Waste produced; Category 3 accidents per 1,000,000 passengers; Students from schools and colleges within 5 local Boroughs participating in BAA Education Programme; Implementation of Asset Stewardship Standards (surface water critical assets only). This verification focused solely on the information presented in the Report and did not include an assessment of the adequacy, effectiveness or efficiency of Heathrow s strategy or management of issues relating to the KPIs and targets. Methodology This verification was carried out in between January and April 2010 by a multidisciplinary team of suitably qualified and experienced professionals, in accordance with the DNV Protocol for Verification of Sustainability Reports. The following methods were applied: Desktop review of the process and outputs from the materiality review carried out by Heathrow; Interviews with Heathrow personnel responsible for collecting, aggregating and reporting information in relation to the KPIs and targets verified; Review of relevant supporting information relating to the KPIs and targets, including performance records, data management procedures and instructions; Testing of information presented in the Report through the review of data at source and discussions with the originators of the data; Reporting of the findings to Heathrow data/target owners, enabling data to be corrected or provided, wherever errors or omissions where found; Review of relevant information presented in the Report and assessment of the alignment with the findings of the External Assurance. DNV states its independence and impartiality with regards to this assurance engagement. In 2009, DNV did not work with Heathrow or any of its stakeholders on any engagements which could compromise the independence or impartiality of our findings, conclusions or recommendations. Moreover, DNV was not involved in the preparation of any text or data provided in the Report, with the exception of this Assurance Statement. Conclusions Based on the scope of work carried out, DNV concludes that: Heathrow has carried out a structured materiality review and the content of the report reflects the material issues related to Heathrow and the decisions made by the Heathrow personnel involved in the process; The report provides an appropriate representation of Heathrow s performance against the KPIs and targets within the scope of this assurance engagement, in the 12-month period ending on 31 December 2009; Heathrow has made substantial progress in applying the Asset Stewardship Standards to surface water critical assets (those rated 4 and 5 in accordance with the airport s risk assessment). The full implementation of some of the requirements established in the standards can only be achieved after 12 months from the start of implementation. For the purpose of this report, DNV s assessment was based on progress made by the end of Recommendations DNV recommends that Heathrow: Ensures consistency of data managed, recorded and reported in different data repositories; Continues to raise awareness of accident reporting processes amongst own staff, contractors and other relevant third parties; Ensures consistency in the application of the risk assessment process in the rating of assets, and continues its efforts to progressively apply all elements of the Asset Stewardship Standards to surface water critical assets; Assesses the extent to which the target relating to the implementation of the Asset Stewardship Standards to surface water critical assets is met at the end of Increases oversight of waste contractor activities and performance, through the application of audit and quality control processes. Antonio Ribeiro Assurance Engagement Manager Christopher Luck Lead Verifier Det Norske Veritas, London, 19 April 2010 DNV is a global independent provider of certification, assurance and advisory services, focusing on sustainability, climate change, environmental and health and safety issues across a range of sectors, including aviation.

6 Working towards a sustainable Heathrow We are proud of the services that Heathrow Airport provides and of the role it plays in connecting London and the UK to the world. We recognise the contribution that aviation makes to economic, social and cultural development in the UK and worldwide. We also recognise the impact aviation can have on local communities and the environment. We believe that both aviation and Heathrow Airport can expand sustainably, enhancing economic and social benefits while also respecting environmental limits. Achieving a sustainable Heathrow is key to our vision for Heathrow to be Europe s hub of choice. This means creating a future Heathrow which: Is safe and secure for staff, passengers and the airport community. Enables the achievement of positive social and economic effects. Seeks to prevent, reduce or offset significant effects on communities and the environment. Has surface access which limits congestion and other local effects. We have strategies and action plans to achieve these commitments which cover all aspects of our business: What we design the design of our infrastructure, transport links and buildings. How we build how we construct and redevelop our airport. What we buy the products and services we buy, the organisations we do business with and the contracts we manage. How we operate the people, technology and processes in place to operate our airport. How we collaborate working with partners who are based at and around Heathrow Airport. About this briefing This document is part of a series of bi-monthly briefings which outline our approach and our performance in delivering a sustainable airport at Heathrow. The series replaces the annual Corporate Responsibility Report we have previously published and is designed to provide an accessible and more frequent insight into key sustainability issues. We will include a short annual summary of key performance data in the series. The series will cover the following issues through 2010: 2009 Sustainability performance summary Climate change Noise Air quality Employment, training and skills Economy Detailed information on the issues contained in these briefings as well as our wider sustainability programme is available at About BAA UK airports BAA owns and runs Heathrow, Stansted, Southampton, Glasgow, Edinburgh and Aberdeen airports. We sold Gatwick Airport during Rail BAA owns and operates the public rail services Heathrow Express and are joint owners of Heathrow Connect. Other interests BAA has a 65% interest in and operates Naples Airport, and manages retail operations at Baltimore Washington International Airport, Boston Logan Airport and Pittsburgh International Airport. Information relating to BAA and the airports it owns is available at Contact us us about this briefing via heathrowsustainability@baa.com Heathrow Airport Limited 2010 THD v1 0510

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