Sustainable Development Report 2011

Transcription

1 Sustainable Development Report 2011

2 1 TUI Travel PLC Sustainable Development Report 2011 Peter Long s welcome Contents Welcome 02 TUI Travel overview 03 What others say 04 Strategy and management 05 Carbon Management 06 Carbon Management targets 07 Destinations 08 Supplier Management targets 08 Destination Projects targets 09 Our Colleagues 10 Our Colleagues targets 11 Our Customers 12 Our Customer targets 13 Data and materiality 15 Global Reporting Initiative 17 References 18 Contacts Welcome to TUI Travel PLC s latest Sustainable Development Report where we report data and targets relating to the financial year 1 October 2010 to 30 September I am pleased to introduce this latest review of our responsibilities and update on progress in our priority areas of Carbon Management, Destinations, and Colleague and Customer engagement. TUI Travel s vision is to make travel experiences special. We seek to achieve this whilst minimising environmental impact, respecting culture and people, and bringing economic benefits to communities. Despite the challenges of today s operating environment, at TUI Travel we see sustainability as a serious business issue, now more than ever. The past year has seen our businesses continue to drive eco-efficiencies, which have brought financial as well as environmental benefits and sustainability has also stimulated a number of product innovations. There is evidence that our most sustainably managed hotels are also those which are delivering higher quality and customer satisfaction. Our commitment in this area has positioned us as a leader in our Sector on sustainability indices over the last year. TUI Travel was the only tour operator to be featured in the Carbon Disclosure Leadership Index and our score placed us in the top 10% of the FTSE 350 on our approach to carbon disclosure and performance. We were also featured in the Dow Jones Sustainability Year Book for the second consecutive year, this time with a Silver Class distinction and Sector Mover status for outstanding achievements in the area of corporate sustainability. A key focus for 2010/11 has been to set long-term Group goals for each of our sustainability strategic priorities. I am therefore pleased to present TUI Travel s three-year Sustainable Holidays Plan four over-arching sustainable development goals, underpinned by 20 challenging and measurable commitments which businesses across TUI Travel will work to deliver and through which we aim to lead the industry. Peter Long Chief Executive You can read about our new Sustainable Holidays Plan: here:

3 TUI Travel PLC Sustainable Development Report TUI Travel overview TUI Travel PLC (referred to in this report as TUI Travel and the Group ) is one of the world s leading leisure travel companies. We are headquartered in the UK and listed on the London Stock Exchange. 30+ million customers from over 31 source markets Operations in over 180 countries 200+ products and brands 145 aircraft and circa 3,500 retail shops in Europe 53,000 colleagues operating across six continents Revenues of 14.6bn and an underlying profit before tax of 360m TUI Travel is recognised for its commitment to sustainable development and is listed on the FTSE4Good Index. Our structure TUI Travel is organised and managed through four Sectors Mainstream; Accommodation & Destinations; Specialist & Activity and Emerging Markets. Mainstream Sector The Mainstream Sector is the largest in the Group, in terms of scale and scope, financial performance and number of employees. It comprises instantly recognisable power brands, leading tour operators, approximately 3,500 retail travel shops and a fleet of 145 aircraft during the period this report refers to. The Sector has three operational divisions the Northern Region, Central Europe and Western Europe. It serves more than 20 million customers each year and top selling brands include Thomson, First Choice, TUI and Holland International. Accommodation & Destinations Sector The Accommodation & Destinations Sector (A&D) is a global provider of travel services. Its businesses provide hotel accommodation, transfers, excursions and tours, meetings and events and cruise handling services to tour operators, travel agents, corporate clients and customers worldwide. A&D competes in fast growing areas of the travel sector in four business lines: accommodation wholesale; accommodation online travel agent (OTA); destination services and cruise handling. It serves over 12 million passengers and 21.4 million room nights and top selling brands include Hotelbeds, LateRooms and TUI Espana. Specialist & Activity Sector This Sector s ethos is, if you can dream it, we can take you there. The Sector comprises over 100 global travel businesses to fulfil the holiday and independent travel needs of customers with a wide range of interests and passions. It operates under six divisions Adventure, Education, Marine, North American Specialist, Sport and Specialist Holiday Group. It serves more than 1.5 million customers each year and top-selling brands include Crystal, The Moorings and Hayes & Jarvis. Emerging Markets Sector The Emerging Markets Sector is a portfolio of travel businesses focusing on the specific source markets of Brazil, Russia & CIS, India and China. We have a tour operator in Russia & CIS and are currently determining our strategy in Brazil, India and China using our inbound businesses in these countries to explore opportunities. It serves more than 0.5 million customers each year and top-selling brands include TUI Russia and CIS. Sources of further information: For further information about TUI Travel, visit:

4 3 TUI Travel PLC Sustainable Development Report 2011 What others say Indices FTSE4Good TUI Travel is listed on the FTSE4Good Index in recognition of our transparency and for meeting strict social, environmental and governance standards. We are also ranked above average for our sector. Carbon Disclosure Project In 2011, for the fourth consecutive year, TUI Travel was featured in the Carbon Disclosure Leadership Index. TUI Travel is the only tour operator to be featured in this index and our score places us in the top 10% of the FTSE 350 for our approach to carbon disclosure and performance. To view our submissions visit:. Dow Jones Sustainability Yearbook TUI Travel was featured in the 2011 and 2012 Dow Jones Sustainability Year Book which features the best performing 15% of companies who submit data to the index in each industry sector. In 2012, TUI Travel received a Silver Class distinction and Sector Mover status for its outstanding achievements in the area of corporate sustainability. Forest Footprint Disclosure Project TUI Travel completed its second submission to the Forest Footprint Disclosure Project in 2011 and was one of eight companies listed in the Travel and Leisure Sector. Awards Our commitment to Responsible Leadership extends beyond our Group. We take great pride in the recognition we receive from external experts who assess our achievements and give us awards. We have won a number of awards this year. We also continue to be well positioned on sustainable development indices. Partner statement Forum for the Future is a non-profit organisation working globally with businesses and governments to create a sustainable future. They have 15 years experience inspiring new thinking, building creative partnerships and developing practical innovations to change our world. We ve been working with Forum since 2002 to help set our strategy and put it into action (initially as First Choice Holidays PLC, subsequently as TUI Travel PLC). Forum selects a handful of companies as Pioneer partners; leading organisations at the cutting edge of sustainability. TUI Travel has been selected as one of these partners. As a Forum for the Future Pioneer partner, TUI Travel lead their sector, and also recognise that they need to work with others so that sustainable business becomes the norm. So they are working with leaders like O2 and M&S to find better solutions to shared social, environmental and economic challenges. During a difficult economic climate TUI Travel have demonstrated their long term commitment to a sustainable future by investing in pilot projects such as running test flights using biofuels and researching how to enhance livelihoods in destinations whilst simultaneously minimising environmental impact. It is vital that the lessons from these projects help to drive sustainability performance across the business and help TUI satisfy their customers long into the future. TUI Travel s new Sustainable Holidays Plan recognises the need to combine external engagement with internal performance. It is great to see a strong commitment to engaging customers in more sustainable holidays, but also pushing the development of new, innovative products that can deliver these holidays in ways that really decouple growth from environmental impact. This approach shows the increasing maturity of TUI Travel s sustainability journey differentiating themselves through sustainability in tricky times and starting to shape the market for a better future. Stephanie Draper Director, Systems Innovation Forum for the Future Tourism for Tomorrow Awards Intrepid Travel received the Global Tourism business award in 2011 UNESCO Tourism Awards Easy Market received the Tourism Culture Award in 2011 Travel Feather Awards Sawadee was awarded the Green Feather in 2011 for its sustainable tourism activities West-Flanders Charter for Sustainable Development Award Jetair received the award for a fourth year in a row ( ) For details of previous sustainability awards, visit:

5 TUI Travel PLC Sustainable Development Report Strategy and management Integrating sustainable development Sustainable development strategy TUI Travel s sustainable development strategy is based on consideration of the key issues affecting the Company, now and in the future. It is regularly reviewed in consultation with internal and external stakeholders. Our four strategic priorities for sustainable development align with TUI Travel s strategy. We encourage all TUI Travel businesses to develop their own strategies, aligning with Group and Sector priorities and the related targets, where appropriate. Our sustainable development goal is to minimise our environmental impact, respect the culture and people in our destinations and offer real economic benefit to local communities. Our four strategic priorities for sustainable development are: Responsible Leadership one of our four Company values Carbon Management Goal: To reduce TUI Travel s airlines per passenger carbon emissions by 6% by 2013/14 (against a baseline of 2007/08) Destinations Supplier management goal: All suppliers in each destination follow sustainability practices and have continuous improvement programmes in place Destination projects goal: TUI Travel, working with partners, will make measurable improvements to local livelihoods and environmental protection in destinations Our Colleagues Goal: TUI Travel colleagues are engaged and empowered to take action on sustainability for the future success of the Company Our Customers Goal: TUI Travel businesses deliver quality communications designed to raise customer interest and demand for sustainable holidays Managing sustainable development This year, the Group has enhanced its governance structure for sustainable development. Jane Ashton has been appointed Director of Group Sustainable Development, Jacky Simmonds, Group HR Director, now has responsibility for reporting on sustainable development to the Group Management Board and Johan Lundgren, Deputy Chief Executive, is responsible for reporting on sustainable development to the TUI Travel PLC Board. The Group Management Board acts as the Steering Committee and sets the Group s strategic direction and long-term objectives for sustainable development. The Group Sustainable Development Department s role is to drive change towards a more sustainable company and to forge Sector leadership. Our Group-wide work streams meet regularly to tackle issues and develop programmes of work. Each Sector within the Group has a sustainable development coordinator or team with a remit to develop and implement sustainable development strategy, supported by a network of champions. To review performance and to measure progress, we have incorporated sustainable development questions into regular employee surveys at Sector and Group level and we conduct an annual Sustainable Development Evaluation of TUI Travel tour operating businesses, as well as specific surveys of airlines, hotels and water transport operations. For further information about our approach and policies, visit:. To watch a video from Jane Ashton, Director of Sustainable Development, talk about our sustainability challenges and progress, visit:

6 5 TUI Travel PLC Sustainable Development Report 2011 Carbon Management Reducing carbon emissions across our operations Thomson Airways makes aviation history Thomson Airways became the first UK airline to operate commercial flights on sustainable biofuel when TOM 7446 took off from Birmingham Airport to Arrecife in Lanzarote on 6 October Carrying 232 passengers on a Boeing , the landmark flight, which was given full backing by Aviation Minister Theresa Villiers, confirmed Thomson Airways position at the forefront of sustainable aviation. Breakdown of TUI Travel s carbon footprint in 2010/11 iii 0.7% 0.7% 4.2% 2.5% TUI Travel airlines and aviation Water transport Ground transport Premises 91.9% Flagship hotel properties iv Travel and tourism are responsible for around 5% of global CO 2 emissions (UNWTO, 2007). As a leading tour operator, our challenge is to prepare for a low-carbon society by further reducing our environmental impacts. Three years ago TUI Travel airlines set a target to reduce carbon emissions by 6% by 2013/14, against a baseline of 2007/08, both on a total and on a relative basis. In 2010/11 TUI Travel airlines total carbon emissions were 5,467,814 tonnes, i.e. 9% less than in 2007/08 i, whilst our relative carbon emissions in 2010/11 were 75.9g per revenue passenger kilometre (CO 2 /RPK), i.e. 2.6% less than 2007/08. We will continue to work towards achieving our 6% relative reduction target by 2013/14. TUI Travel has a carbon management strategy in place covering aviation, water transport, major premises, ground transport and flagship hotel properties. We are monitoring and preparing for regulatory proposals on climate change that could have a fiscal impact. We have developed collaborative partnerships with many stakeholders whose insight and guidance is helping us to develop our position on aviation and climate change. Examples include: Forum for the Future, EU Cleansky project, UK Sustainable Aviation and Sustainable Aviation Fuel Users Group. For further information on risks, the business case and case studies, visit: Key achievements in 2010/11 include: Circa 21m cost savings realised via environmental initiatives between 2008 and 2011 ii 2010 airline data externally verified by PwC and submitted to the relevant authorities in preparation for the EU Emission Trading Scheme CO 2 per Revenue Passenger Kilometre (RPK) across TUI Travel airlines in 2010/11 of 75.9g (an improvement of 2.6% since 2007/08) making us one of the most efficient airlines in Europe and beyond Thomson Airways was the first UK airline to achieve ISO certification for its engineering operations On 6 October 2011, Thomson Airways became the first UK airline to fly customers on sustainable biofuel Le Boat introduced a fleet of environmentally-friendly vessels in 2011 allowing cruising under solar-generated electric power Two of TUI Deutschland s river cruises achieved Green Globe certification (the first in the world to achieve the new cruise standard) and Thomson Cruises trialled the Travelife Sustainability System on board TUI Nordic has replaced the majority of overseas employees cars with eco-vehicles (<130g CO 2 /km) in destinations across Europe and Turkey TUI Nederland built a new head office to BREEAM v Excellent standard (a rating for green buildings) TUI Travel scored in the top 20% of the UK Government s 2011 Carbon Reduction Commitment Energy Efficiency Scheme Performance League Table. This recognises TUI UK s commitment to measuring, managing and reducing its carbon emissions through the achievement of the Carbon Trust Standard and rolling out Automatic Meter Readers across the retail estate to improve day-to-day energy management

7 TUI Travel PLC Sustainable Development Report Carbon Management targets Carbon Management goal: To reduce TUI Travel s airlines per passenger carbon emissions by 6% by 2013/14 (against a baseline of 2007/08) Workstreams Our targets for 2010/11 How we performed Workstream 1: Airlines Reduce TUI Travel s airlines per passenger carbon emissions by 6% by 2013/14 (against a baseline of 2007/08) Group: Develop a TUI Travel Airlines biofuels strategy Group: Each TUI Travel Airline to set a waste management and environmental training target TUI UK & Ireland: Achieve ISO certified Environmental Management System in Thomson Airways TUI UK & Ireland: Achieve the Carbon Trust Standard TUI UK & Ireland: Thomson Airways to recycle over 1 million cans in 2010/11 (this represents 30% of cans) Partially achieved: Biofuels position developed and Thomson Airways became the first UK airline to fly customers on sustainable biofuel on 6 October 2011 Partially achieved: Thomson Airways and TUIfly Nordic set targets and other airlines due to set targets in 2011/12 Achieved: Thomson Airways achieved ISO certification in May 2011 for its engineering division Achieved: TUI UK & Ireland achieved the Carbon Trust Standard in June 2011 Partially achieved: Thomson Airways recycled 800,000 cans in 2010/11 Workstream 2: Water Transport Reduce carbon emissions from our cruise operations (those we operate or where we control fuel use) Workstream 3: Major Premises Reduce carbon emissions from TUI Travel s major premises (those we own or where we control energy use) Workstream 4: Ground Transport Reduce carbon emissions from our ground transport operations (those we own and our ground transport suppliers) Workstream 5: Flagship Hotel Properties Reduce carbon emissions from TUI Travel s flagship hotel properties and ensure they are built and operated to best practice sustainability standards TUI UK & Ireland: Trial Travelife Sustainability audits onboard Thomson Cruises TUI Central Europe: Achieve Green Globe certification on two of TUI Deutschland s six River Cruise ships Specialist & Activity: Le Boat to introduce new environmentally friendly eco vessels into the fleet TUI Western Europe: Build a new TUI Nederland s head office to BREEAM v Excellent standard TUI UK & Ireland: Reduce carbon emissions from retail shops by 4% by the end of 2010/11 TUI Central Europe: Reduce TUI Deutschland s head office energy consumption by 5% by the end of 2012 TUI UK & Ireland: Reduce the volume of brochure pages by 3% during 2010/11 TUI Nordic: Reduce energy consumption by 5% annually until 2015 in Nordic offices and shops (against 2009/10 baseline) TUI Central Europe: TUI Deutschland to achieve a FSC-certificate which allows them to label brochures with the FSC-label Group: Improve carbon reporting systems together with TUI Travel s Business Assurance department TUI Nordic: Replace overseas staff cars with eco-vehicles (< 130g CO 2 /km) at our destinations in Europe and Turkey Group: Cascade TUI Travel s Guidelines for Environmental Sustainability in Hotels across the Group Group: Support flagship hotels with expert consultants to achieve measurable reductions in water and energy at TUI UK & Ireland and TUI Nordic hotels Achieved: A Travelife audit took place on Thomson Celebration in Spring 2011 and work is on-going with ABTA (Association of British Travel Agents) on this project Achieved: Two boats achieved Green Globe certification in 2011 Achieved: Le Boat introduced a fleet of environmentally friendly vessels in 2011 allowing cruising under solar-generated electric power Achieved: The Enschede office opened in Summer 2011 with BREEAM v Excellent standard Partially achieved: Carbon emissions reduced by 3% at TUI UK & Ireland retail shops Partially achieved: Energy consumption reduced per head by 3.8% in 2009/10 but no further reductions in 2010/11. An energy monitoring system has now been installed Achieved: TUI UK & Ireland reduced the number of brochure pages printed by 10% Partially achieved: TUI Nordic reduced energy consumption in offices and shops by 3% year on year Not achieved: TUI Deutschland will focus on this target in 2011/12 Achieved: Improvements made to key priority findings and a new Group Environment Reporting Executive was appointed in December 2010 Achieved: 78% of all TUI Nordic s overseas staff vehicles are now eco vehicles (<130g CO 2 /km) and they are working to replace the rest Achieved: The guidelines were translated into 5 key languages and cascaded to our key accommodation suppliers Partially achieved: Consultant worked with TUI Nordic s Blue Village hotels. All of these hotels are now ISO certified and oil and gas use has decreased by 21% largely due to the installation of solar heating at some of these hotels. To find out about our Carbon goal and commitments for the next three years view our Sustainable Holidays Plan:

8 7 TUI Travel PLC Sustainable Development Report 2011 Destinations Taking care in destinations TUI Travel launches guidelines TUI Travel launched Guidelines for Environmental Sustainability in Hotels. The guidelines aim to help our hotel suppliers achieve best practice sustainability performance and highlight case studies where eco-efficiencies have saved suppliers significant sums. Protecting forests in Kenya TUI Travel supports a project in Kasigau Wildlife Corridor, Kenya, which is preserving 75,000 acres of dry forest under threat from agriculture and charcoal production. The project provides alternative livelihoods for locals, for example, as game wardens, in sustainable charcoal making and at a clothing factory. It is the world s first project to be issued with Reduced Emissions from Deforestation & Degradation (REDD+) credits. Depending on how impacts are managed, we know that the leisure travel industry can have both positive and negative effects on communities and the natural environment. We are committed to learning more about how our holidays can benefit local livelihoods and protect the environment and are putting this into practice. This is fundamental to preserving the quality of our product in years to come. Supplier management TUI Travel has an extensive supply chain operating across the world. These businesses are the gatekeepers to TUI Travel s sustainability performance in destinations. By focusing on sustainability, our suppliers are able to achieve cost efficiency savings which ultimately give customers better value for money. Our challenge is to extend the reach of influence to all suppliers and to monitor their progress. Key achievements in 2010/11 include: Launch of Guidelines for Environmental Sustainability in Hotels the guidelines aim to help our hotel suppliers achieve best practice sustainability performance and highlight case studies where eco-efficiencies have saved suppliers significant sums Adoption of environmental and social contractual minimum standards for accommodation suppliers by our Mainstream tour operating businesses and other businesses across the Group Sustainability certifications for over 700 hotels by the end of Summer 2011 Organisation of sustainability supplier conferences in the Canaries and London Launch of bluecontec a sustainability and energy consultancy business for tourism companies, especially hotels by TUI Deutschland Incorporation of sustainability flagship hotel standards into Holiday Village, Sensatori and the Couples hotel specification contracts in TUI UK & Ireland Introduction of eco-cotton shirts for all retail, overseas and flight crew colleagues by TUI Nordic Destination projects TUI Travel is involved in hundreds of projects designed to improve the livelihoods of local people in destinations and to protect the environment. Key achievements in 2010/11 include: Initiation of a project to understand the key sustainability issues in three destinations (Turkey, Cape Verde and Tunisia) we are now planning our operational response Commissioning of a study and report Measuring and improving the socioeconomic impact of an all-inclusive hotel in Turkey with the Travel Foundation and Overseas Development Institute. Recommendations have been implemented at this hotel and are being replicated at other hotels Investment in renewable energy projects in key destinations, which are scheduled to deliver in excess of 1 million tonnes of CO 2 reductions by 2014 Support of initiatives to help protect sea turtle populations in Turkey and Greece by many businesses across the Group Support of clean water projects through Just a Drop and Pump Aid in Kenya, Bolivia, Uganda, Zimbabwe, Malawi and Liberia We are conscious of the pressures that tourism can place on local populations and resources and therefore work collaboratively with communities, local and national governments, non-governmental organisations (NGOs) and trade associations to support sustainable management of destinations and to shape our strategy in this area. Examples include: Dutch Association of Travel Agents and Tour Operators, Deutscher ReiseVerband, Association of British Travel Agents, The Tour Operators Initiative, Global Sustainable Tourism Council, Sustainable Travel International, The Overseas Development Institute, Born Free and The Travel Foundation. For further information on risks, the business case and case studies, visit:

9 TUI Travel PLC Sustainable Development Report Destinations targets Supplier management goal: All suppliers in each destination follow sustainability practices and have continuous improvement programmes in place Workstream objectives Our targets for 2010/11 How we performed TUI Travel suppliers adhere to contractual environmental and social standards Support the improvement of supplier performance on sustainable development Increase the proportion of sustainable products available to customers Improve captive animal welfare in excursion venues used by TUI Travel Group: Work with ABTA to incorporate minimum sustainability criteria in industry excursion standards Group: Review sustainability procurement processes with TUI UK & Ireland and Group procurement departments TUI UK & Ireland: Incorporate sustainability flagship hotel standards into Holiday Village, Sensatori and Couples hotel specification contracts Group: Develop a sustainability supplier section on the TUI Travel PLC website TUI Nordic: Introduce eco-cotton (GOTS certified vi ) blouses, shirts and polo shirts for all staff in retail, overseas staff and flight crew TUI Central Europe: Organise a destination accommodation supplier conference focussing on energy reduction TUI UK & Ireland: 50% of customers staying in Travelife awarded hotels by end of Summer 2011 Accommodation & Destinations: Intercruises to develop voluntourism shore-based excursions for cruise passengers Group: Develop a TUI Travel public-facing animal welfare policy and strategy Not achieved: Work is on-going with ABTA to help achieve this target Achieved: Review took place and sustainability procurement strategy is being developed Achieved: All Holiday Village, Sensatori and Couples hotels now have industry-leading sustainability performance indicators included in the hotel specification contracts Achieved: Working with suppliers section launched on sustainability area of corporate website Achieved: TUI Nordic has started replacing old uniforms with eco-cotton uniforms Achieved: Sustainability supplier conferences were held in Tenerife and Gran Canaria in early 2011 focussing on energy reduction Partially achieved: 27% of TUI UK & Ireland customers stayed in awarded or subscribed Travelife hotels Achieved: Voluntourism shore-based excursions were developed and are now offered to cruise passengers Partially achieved: Animal welfare policy and strategy was developed but launched in 2011/12 Destination projects goal: TUI Travel, working with partners, will make measurable improvements to local livelihoods and environmental protection in destinations Workstream objectives Our targets for 2010/11 How we performed Develop practices and research to increase socio-economic and environmental benefits to communities where we operate Implement the principles of the Child-Protection Code across TUI Travel businesses Influence improvements in the sustainable management of key destinations Group: Understand the key sustainability issues in three destinations and plan our operational response Group: Save more than 75,000 tonnes of CO 2 emissions by investing in clean energy and energy efficiency projects in destination countries in 2010/11 Group: Complete further studies at hotels in Tunisia and Rhodes to measure and improve our socio-economic impacts Specialist & Activity: Engage with UK stakeholders and industry to improve voluntourism guidelines TUI Western Europe: TUI Nederland will support an education project for vulnerable girls in North East Brazil 240 girls to find employment by June 2013 Specialist & Activity: Specialist Holidays Group businesses to work towards implementing the six criteria of the Child Protection Code Group: Work with TUI Travel Hotels in Rhodes to reduce solid waste produced by 10% Group: Work with stakeholders in Turkey and Greece to help protect sea turtle populations Group: Support clean water projects through Just a Drop and Pump Aid Achieved: Initiated a project to understand the key sustainability issues in destinations in Turkey, Cape Verde and Tunisia. We are now planning our operational response Achieved: TUI Travel s investment in renewable energy projects in key destinations is on track to deliver in excess of 1 million tonnes of CO 2 reductions by 2014 Achieved: Extensive socio-economic impact studies undertaken at two hotels in Rhodes and Tunisia, which have helped to inform our destinations strategy Achieved: Played a key role in helping to set up ABTA s Volunteer Tourism working group and develop industry commitments Partially achieved: 100 young people were helped in 2010/11, through this child protection project in Brazil Partially achieved: A child protection policy and strategy was developed for the Specialist & Activity Sector and was launched in 2011/12 Not achieved: On-site audits, consultancy visits and waste management training conducted. Hotels will work towards the 10% reduction target in 2011/12 Achieved: Project Discovery volunteers worked with stakeholders in Dalaman (Turkey) and Zante (Greece) on sea turtle protection projects Achieved: Our businesses supported clean water projects through Just a Drop and Pump Aid in Kenya, Bolivia, Uganda, Zimbabwe, Malawi and Liberia To find out about our Destinations goal and commitments for the next three years view our Sustainable Holidays Plan:

10 9 TUI Travel PLC Sustainable Development Report 2011 Our Colleagues Involving and empowering our colleagues to take action for sustainability Global Responsible Leadership programme Our Global Responsible Leadership programme has been developed by the Group Management Development team. Our project in Thailand has been developed with businesses that have particular experience of the country, including i-to-i and Pacific World. The programme aims to develop delegates leadership skills while benefiting local communities. In 2011 and 2012, groups of senior managers travelled to Baan San Noi to work with a local community to build business skills and engage with a local school by organising activities as well as constructing and renovating facilities Advocates for sustainable tourism TUI Travel colleagues presented on several sustainability topics at the International Tourism Bourse Berlin CSR day in 2011 and at the World Travel Market World Responsible Tourism Day events in London in November Our aim is to make sustainable development tangible to each and every colleague within the Group. We communicate regularly about the progress we have made on our journey towards securing a sustainable future for our industry and continue to build sustainability into our colleague inductions and training programmes, including development programmes for managers. We have a Group Code of Conduct which covers a wide range of sustainability issues, including human rights, business ethics and transparency and commits TUI Travel to upholding the principles of the UN Global Compact. We have developed a number of core questions relating to Responsible Leadership and sustainable development that businesses and Sectors include in colleague opinion surveys. Our 2011 Leadership Voice survey for senior management confirmed that: 88% of leaders agreed that TUI Travel acts responsibly on environmental matters (77% in 2009/10) 80% of leaders agreed that TUI Travel acts responsibly in the local communities in which we operate (73% in 2009/10) Our 2011 Opinion Survey for all colleagues confirmed that: 79% agree that their business acts responsibly on environmental matters (70% in 2009/10) 70% agree that their business acts responsibly in the community in which we operate (67% in 2009/10) We also gather feedback from colleagues on sustainability issues through focus groups. For further information on risks, the business case and case studies, visit: Key achievements for 2010/11 include: Organisation of sustainability awarenessraising initiatives at head offices and overseas, for example the Accommodation & Destinations Sector held an inaugural Green week, hosting sustainability lunch and learn sessions at their head office in Palma as well as activities across the world. Jetair organised a Green Day for colleagues including a car-free day and sustainable lunch Colleagues within the Specialist & Activity Sector are each given a day to volunteer for their chosen charity, supporting charities such as the Chestnut Tree Children s Hospice in the UK Volunteers at TUI UK supported sustainable tourism projects in Cyprus, Turkey and Crete and launched Project Discovery UK giving all colleagues one day a year to volunteer in the UK TUI Travel s senior management were regular public advocates for more sustainable tourism in the media, at industry and governmental events. For example, senior executives presented at the Hungarian EU Presidency conference in Budapest, the 5th International conference on Responsible Tourism in Destinations in Edmonton (Canada), ITB Berlin s Corporate Social Responsibility Day and World Travel Market s World Responsible Tourism Day in London. Charitable giving In 2010/11, businesses across TUI Travel supported more than 200 source market and destination charities with donations of over 2.8m vii (145 charities supported with 2.6m in 2009/10). Our Group-wide charity policy and guidelines help businesses to ensure transparency, report annual monies collected and manage charity relationships. Key achievements in 2010/11 include: We are the largest corporate sponsor of the Family Holiday Association (FHA) a charity that provides holidays to disadvantaged children and their families. Since 2009 we have donated more than 1m Street Child World Cup has been selected as the Specialist & Activity Sector s chosen charity for the next three years. Colleagues will be involved in raising as much money as possible for millions of vulnerable children living on the streets around the world Many TUI Travel businesses support the Travel Foundation, a charity which helps the travel industry understand, manage and take effective action on sustainable tourism. To date we have donated more than 3m

11 TUI Travel PLC Sustainable Development Report Our Colleagues targets Our Colleagues goal: TUI Travel colleagues are engaged and empowered to take action on sustainability for the future success of the Company Workstream objectives Our targets for 2010/11 How we performed Embed sustainable development into existing learning and development and internal communications strategies at Group, Sector and business level Develop and provide support for colleagues with direct responsibility for sustainable development Develop and provide sustainable development training for specific Group-wide audiences (senior managers, future leaders and International Management Graduates) Group: Include sustainable development in new Group e-learning induction Group: Organise sustainable development colleague awareness-raising initiatives at head office and overseas to drive engagement and involvement Group: Hold colleague surveys for senior managers and all employees where possible and demonstrate improved sustainability scores Group: Extend volunteering opportunities for colleagues Group: Develop tailored e-learning module for colleagues with Group and Sector information in one or more Sectors Group: Develop a Global High Performance Leadership programme in collaboration with a European Business School, incorporating sustainable development Group: Develop group sustainability projects for the International Management Graduates Achieved: Group e-learning induction tool includes information on sustainability Achieved: Businesses across TUI Travel organised sustainable development colleague awareness raising activities Achieved: Senior manager survey (Leadership Voice) and our wider colleague survey (Opinion Survey) showed improved scores for environmental and community responsibility (see page 9) Achieved: Specialist & Activity Sector extended colleague volunteering programme to the Specialist businesses that joined their Sector. TUI UK & Ireland began work on a UK colleague volunteering scheme which has now been launched Achieved: Dedicated sustainable development e-learning modules were developed in TUI UK & Ireland and Specialist & Activity Sector Partially achieved: Programme developed and piloted in 2010/11 Achieved: Initiated 2 projects in 2011 with International Management Graduates on sustainability risks in destinations and a sustainability innovation competition for colleagues To find out about our Colleagues goal and commitments for the next three years view our Sustainable Holidays Plan:

12 11 TUI Travel PLC Sustainable Development Report 2011 Our Customers Creating and satisfying demand for more sustainable holidays Holidays Forever In 2010/11, TUI UK unveiled a new consumer sustainable tourism campaign called Holidays Forever. The campaign brings together the Company s sustainability strategy under four ambitions supported by 20 commitments to be achieved by It focuses on reducing carbon emissions; taking care in destinations; living our values; and inspiring customers by engaging 1 million holidaymakers in sustainable tourism. Across the business we have been proactive in raising awareness of sustainability issues with our customers. To achieve many of our goals we need customers support both through the purchases they make and the personal actions they take. We are working to raise awareness, influence choice, change behaviour and develop and promote new products to encourage responsible holiday choices. Today s customer needs and demands are changing. Our research of 4,000 holidaymakers in eight major TUI Travel source markets showed a clear aspiration for more sustainable holidays on a significant scale. The exponential growth in fair trade and locally-sourced goods in recent years is proof that consumers will purchase more sustainably when the option to do so is easy, affordable and well communicated. There is also evidence that those hotels which are delivering higher quality and customer satisfaction are also the most sustainably managed. TUI Travel businesses request feedback from customers regularly and some offer the opportunity to comment on the environmentally and socially responsible aspects of their holiday. For further information on risks, the business case and case studies, visit: Key achievements for 2010/11 include: Launch of the internal Sustainability Customer Communication Awards encouraging businesses to showcase best practice in this area Over 300,000 parents, teachers and children were engaged in sustainable tourism through the UK schools Eco-traveller programme (teaching children how they could make a difference on holiday) developed by TUI UK in collaboration with the National Schools Partnership TUI Nederland launched a green loyalty programme for travel agencies (including third party) to stimulate sales of green holiday accommodation TUI Deutschland and TUI UK & Ireland are now including carbon emission information on the flight element of the holiday in customer communication Commissioning of the Sustainable Holiday Futures report: showing how travel will have to change in order to save the world s dwindling resources Analysis from TUI UK & Ireland s Summer 2010 Customer Satisfaction Questionnaires revealed a statistically significant correlation between good customer ratings on our approach to the environment and community and overall holiday satisfaction Sustainable Holidays Future Report Carried out for Thomson by The Future Laboratory, the Sustainable Holiday Futures report shows how travel will have to change in order to save the world s dwindling resources. Experts from diverse sectors including green technology, sustainability and scenario planning were interviewed and their views served to expel current myths about sustainable tourism. To read the report visit:

13 TUI Travel PLC Sustainable Development Report Our Customer targets Our Customers goal: TUI Travel businesses deliver quality communications designed to raise customer interest and demand for sustainable holidays Workstream objectives Our targets for 2010/11 How we performed Extend and improve TUI Travel businesses customer communications on sustainable development Share customer research on sustainable development from all our source markets Establish Group-wide guidance on specific customer engagement issues Group: 97% of TUI Travel consumer-facing businesses to communicate with customers on SD issues Group: Improve the customer grading system results 75% of businesses to be grade B and above Group: Launch the internal TUI Travel Sustainability Customer Communications Award TUI Western Europe: TUI Nederland to launch a green loyalty programme for travel agencies (including third party) to stimulate sales of green accommodation TUI UK & Ireland: Engage 200,000 children in sustainable tourism through the UK schools Eco-traveller programme (teaching children how they can make a difference on holiday) and though our Kids Clubs TUI UK & Ireland: Launch a three-year Holidays Forever strategy TUI Central Europe: 50% of TUI Deutschland brochures and TUI UK & Ireland s websites to include carbon emission information on the flight element of the holiday TUI Nordic: Launch a new and common website for all TUI Nordic brands to communicate with customers on socio-economic and environmental issues Group: 75% of businesses to collect customer feedback on sustainable development issues Group: Develop and communicate Group-wide guidance on communicating animal attraction products Partially achieved: 87% of TUI Travel consumer-facing businesses communicated with customers on SD issues vii Partially achieved: 71% of businesses were a grade B and above. With a significant increase in grade A (1% in 2009/10 to 29% 2010/11) vii Achieved: Awards launched in Summer 2011 with three categories and judged by internal and external stakeholders Achieved: TUI Nederland launched Green Smiles4U a green loyalty programme for travel agents Achieved: Over 212,000 children were engaged via the UK schools Eco-traveller programme and Kids Clubs Achieved: Three-year Holidays Forever strategy launched in March 2011 Achieved: Over 50% of TUI Deutschland brochures include carbon emissions information and TUI UK & Ireland include this information on their websites for Sensatori and Holiday Village holidays Achieved: Customer sustainability information has now been aligned on all TUI Nordic brand websites Partially achieved: 66% of businesses collected customer feedback on sustainable development issues vii Partially achieved: Guidance developed but launched in 2011/12 To find out about our Customer goal and commitments for the next three years view our Sustainable Holidays Plan:

14 13 TUI Travel PLC Sustainable Development Report 2011 Data and materiality Breakdown of TUI Travel s carbon footprint in 2010/11 Source CO 2 [t] Absolute figures (tonnes of carbon dioxide) TUI Travel Airlines and aviation viii 5,910,364 Water transport 271,369 Ground transport 41,745 Premises 46,227 Flagship hotel properties iv 158,458 Other ix (scope 3) 38,478 6,466,642 This update, published in August 2012, is TUI Travel PLC s fourth Sustainable Development Report. You can find our past Sustainable Development Reports, and First Choice Holidays PLC reports from 2005 onwards, at /reporting Scope The scope of this report includes data and progress on sustainable development activities from businesses owned by TUI Travel, for the financial year 2010/11, running from 1 October 2010 to 30 September 2011, except where otherwise stated. We have indicated where data refers to joint ventures or Group suppliers. Materiality We recognise that we must play our role in sustaining the communities and the environment that we depend on. Our contribution needs to be relevant to the impacts and expertise of our business. In June 2006, the First Choice Holidays PLC Group Management Board worked with Forum for the Future to articulate the company s business case for sustainable development. We identified four main drivers for sustainability: Aviation and climate change Protecting destinations from the impact of climate change Protecting destinations from the impact of tourism Shifting demographics and consumer trends In 2007/08 we developed our sustainable development strategy in consultation with internal and external stakeholders, including Forum for the Future, and this resulted in the four pillar strategy on which our activities and this report is based: Carbon Management, Destinations, Colleagues and Customers. In 2008/09 we played an active role in the Tourism 2023 initiative which, through a multi-stakeholder process, identified a long term sustainability vision and strategy for the outbound leisure industry. This gave us the opportunity to once again work in consultation with internal TUI Travel stakeholders to check our Sustainable Development reporting for materiality and refine our approach. In 2009/10 PricewaterhouseCoopers (PwC) benchmarked our performance against current sustainability leaders and evaluated the Group-wide risks and opportunities sustainable development presents to the company. PwC made a number of recommendations in relation to regulatory preparedness, cost efficiency opportunities and customer opportunities, the majority of which have been acted upon. Our focus in 2010/11 has been to set long-term Group goals for each of our sustainability strategic priorities. You can read about our new Sustainable Holidays Plan: here: This report outlines our performance on key sustainable development issues that we consider to be material to our Company. We aim to ensure that the content of our Sustainable Development Report is relevant to our stakeholders, both internal and external. In determining the contents of this update, we took into account feedback on our strategy and previous reports from colleagues, investors and other stakeholders. Data sources For this report we gathered data for our performance indicators from two main sources: the 2011 Group Sustainable Development Evaluation and our 2012 submission to the Carbon Disclosure Project. Group Sustainable Development Evaluation The 2011 Group Sustainable Development Evaluation was used to assess and report on sustainability performance from our businesses across the Group. The 2011 Evaluation consists of questions relating to Embedding, Carbon Management, Destinations, Our Colleagues and Our Customers. In October and November 2011, the Evaluation was sent to the Managing Directors of TUI Travel businesses, and 99% responded (representing 50,948 colleagues). The reporting period relates to the 2010/11 financial year (1 October 2010 to 30 September 2011). To ensure the responses reflected the size of the businesses that responded, we weighted them by colleague numbers.

15 TUI Travel PLC Sustainable Development Report TUI Travel s carbon footprint in 2007/08, 2008/09, 2009/10 and 2010/11 (tonnes of carbon dioxide equivalent) 2007/ / / /11 Scope 1 emissions x 6,564,026 6,297,794 5,981,254 6,259,723 Scope 2 emissions xi 53, , , ,441 Scope 3 emissions xii 70,597 45,167 38,541 38,478 Total 6,688,097 6,447,370 6,138,664 6,466,642 In October 2011, we sent an amended version of the Group Sustainable Development Evaluation to TUI Travel s hotels and cruise ship operations. We tailored the survey questions to the recipients, focusing on their carbon emissions and environmental management practices. The survey was sent to the environmental managers of our flagship hotels (e.g. Atlantica Hotels, Sensimar and TUI Travel Hotels) and the operations directors of our cruise businesses (e.g. Thomson Cruises, Quark Expeditions and TUI Deutschland River Cruises). The next Group Sustainable Development Evaluation is planned for the end of the 2011/12 financial year. Carbon Disclosure Project In 2011, for the fourth consecutive year, TUI Travel was featured in the Carbon Disclosure Leadership Index. TUI Travel is the only tour operator to be featured in this index and our score places us in the top 10% of the FTSE 350 for our approach to carbon disclosure and performance. TUI Travel s Carbon Disclosure Project submissions from 2008 can be found at Carbon and water footprint We continue to focus on improving our relative carbon emissions per passenger, replacing older less efficient aircraft and driving a programme of fuel conservation across our airlines. This has helped us reduce our relative carbon emissions per passenger by 2.6% since 2007/08. The increase in TUI Travel s carbon footprint in 2010/11 is due to more flights, responding to customer demand for our products. The 2010/11 relative figure for TUI Travel airlines is 75.9g of CO 2 per revenue passenger kilometre. TUI Travel cruise and expedition ship operations emitted an average of 300g CO 2 per passenger kilometre in 2010/11. In 2010/11 the water footprint from TUI Travel s flagship hotel properties iv was million cubic metres of water. In this period over a quarter of hotels had their water data verified as part of their ISO environmental management system standard process. Third party verified data To comply with EU ETS regulations, all TUI Travel airlines filed their Revenue Tonne Kilometre (RTK) Reports (part of the Monitoring Reporting & Verification requirements) in March 2011 with the competent authority in each of the countries the airline is based, e.g. The Environment Agency in the UK. All submissions have since been approved. In addition, our 2011 airline data has been externally verified by PwC, which make up more than 85% of TUI Travel s Scope 1 and 2 emissions.