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Environmental Report 2015/2016 1

Contents 5 Introduction 6 Facts about Sunwing Family Resorts 18 Environmental work Facts about the EU Ecolabel and Travelife 20 Environmental Report Energy Water Waste Awareness Awards 26 Action plan Environmental Policy Objectives Environmental targets 28 More information / Contact us 2 3

Introduction Sunwing Resorts has been practising sustainability issues for many years. Thus, this is the sixth issue of our environmental report which reflects the approach for continuous improvement in contributing to a sustainable tourism sector. Sunwing Family Resorts are either operated by Thomas Cook Hotels & Resorts or by franchisees. Sunwing Family Resorts welcomes every year 250.000 hotels guests from Thomas Cook s Tour Operators. The resorts can be found in Rhodes, Crete (Greece), Majorca, Gran Canaria, Tenerife (Spain), Cyprus, Phuket (Thailand) and Side (Antalya coast-turkey). Sunwing Family Resorts has been a Thomas Cook premium product for families since 1967 with a high percentage of returning customers around 30%. 95% all guests are satisfied or very satisfied with their stay at our resorts. In the following pages you can read about our work in relation to the environment. We believe that in the future, it will be even more important to offer sustainable tourism accommodation and we want to continue to be first in mind and first in choice. Environmental considerations are part of a successful future at home and on holiday and make an important contribution to preservation of the natural environment. Peter Grandell Managing Director for Sunwing Nordics & Director of Operations Thomas Cook Hotels & Resorts 4 5

Facts about Sunwing Family Resorts CYPRUS: GREECE: SPAIN: THAILAND: TURKEY: Sunwing Sandy Bay Beach Sunwing Kallithea Beach Sunwing Makrigialos Beach Sunwing Alcudia Beach Sunwing Cala Bona Beach Sunwing Arguineguin Beach Sunwing Fañabé Beach Sunwing Bangtao Beach Sunwing Kamala Beach Sunwing Side Beach Number of customers at Sunwing Family Resorts : 250.000 Number of employees at Sunwing Family Resorts : 2.600 6 7

SUNWING SANDY BEACH AYIA NAPA, CYPRUS SUNWING KALLITHEA BEACH RHODES, GREECE Opened : 1989 Rooms : 364 Pools : 9 Restaurants : 2 Operates : Full year Employees : 182 EU-Ecolabel Award in 2006 Opened : 1975 Rooms : 549 Pools : 6 Restaurants : 4 Operates : April to October Employees : 260 First hotel in Europe with EU-Ecolabel Award in 2003 International Blue Flag since 1994 18,88 22,01 22,11 21,82 22,16 22,76 23,02 21,87 23,67 24,00 11,70 12,67 12,21 10,20 12,91 12,17 12,59 12,51 12,18 12,35 195 201 194 203 194 180 172 175 173 187 180 186 181 221 238 232 229 224 237 363 8 9

SUNWING MAKRIGIALOS BEACH CRETE, GREECE SUNWING ALCUDIA BEACH MALLORCA, SPAIN Opened : 1984 Rooms : 262 Pools : 10 Restaurants : 4 Operates : April to October Employees : 150 EU-Ecolabel Award in 2007 International Blue Flag since 1994 Opened : 1971 Rooms : 476 Pools : 7 Restaurants : 2 Operates : Full year Employees : 180 EU-Ecolabel Award in 2012 International Blue Flag since 1994 13,21 14,17 15,57 14,79 13,38 17,03 17,69 18,32 18,35 19,08 17,51 16,02 14,28 16,85 17,85 15,56 16,20 17,66 17,87 17,22 228 287 269 266 236 217 180 141 116 171 260 279 228 204 214 204 177 251 242 267 10 11

SUNWING CALA BONA BEACH MALLORCA, SPAIN SUNWING ARGUINEGUIN SEAFRONT GRAN CANARIA, SPAIN Opened : 1990 Rooms : 363 Pools : 5 Restaurants : 2 Operates : April to October Employees : 160 EU-Ecolabel Award in 2005 First in Balearics. Opened : 1986 Rooms : 252 Pools : 3 Restaurants : 2 Operates : Full year Employees : 155 EU-Ecolabel Award in 2004 First in Spain. 10,33 10,34 10,72 11,23 12,94 11,69 13,28 12,93 15,45 14,98 20,49 20,10 19,11 19,88 16,64 18,20 19,73 19,95 20,92 19,51 260 279 228 204 214 204 177 251 242 267 168 178 189 181 173 166 159 171 191 183 12 13

SUNWING FAÑABÉ BEACH GRAN CANARIA, SPAIN SUNWING BANGTAO BEACH PHUKET, THAILAND Opened : 2003 Rooms : 241 Pools : 3 Restaurants : 2 Operates : Full year Employees : 105 EU-Ecolabel Award in 2007. First in Tenerife. International Blue Flag since 2000 Opened : 2006 Rooms : 300 Pools : 6 Restaurants : 2 Operates : Full year Employees : 250 EU-Ecolabel Award In progress. 21,89 23,15 23,79 23,98 23,07 23,18 24,52 25,41 23,80 23,92 YEAR 2010 2011 2012 2013 2014 2015 32,13 32,60 31,21 30,32 27,22 30,24 231 242 227 184 204 178 200 197 194 197 YEAR 2010 2011 2012 2013 2014 2015 580 627 932 714 703 798 14 15

SUNWING KAMALA BEACH PHUKET, THAILAND SUNWING SIDE EAST BEACH ANTALYA, TURKEY Opened : 2009 Rooms : 311 Pools : 7 Restaurants : 2 Operates : Full year Employees : 190 EU-Ecolabel Award in 2012. First in Asia. Opened : 2012 Rooms : 300 Pools : 7 Restaurants : 4 Operates : April to November Employees : 230 EU-Ecolabel Award in 2013 YEAR 2012 2013 2014 2015 YEAR 2012 2013 2014 2015 21,29 12,89 21,72 15,57 22,94 21,30 19,67 11,29 YEAR 2012 2013 2014 2015 YEAR 2012 2013 2014 2015 286 349 451 331 494 404 375 277 16 17

Environmental work In 1995, Sunwing Family Resorts initiated a unique program, called 100 steps towards a better environment. In 2001 we took a step further by implementing a program based on the eco label Nordic Swan which aims to improve environmental awareness and promote tourism by enabling holiday-makers to make an environmentally aware choice. The Nordic Swan Label is only awarded to hotels located in the Nordic countries, so we are applying for the EU-Ecolabel, equivalent to the Nordic Swan, for all of our resorts. The EU-Ecolabel award for hotels was developed by the European Union and introduced in spring 2003. It focuses on the use of energy, water, and chemicals and the minimisation of waste. Sunwing Family Resorts have for many years sought to address environmental concerns. These range from the sorting of waste at our resorts to co-operation, at a European level, in order to create guidelines for the tourist accommodation service industry. In recognition of our work, Sunwing Family Resort Kallithea in Rhodes was in September 2003 the first hotel in Europe to receive the EU-Ecolabel for its accommodation. Furthermore in 2008, Sunwing Side West became the first hotel in Turkey and in 2012 Sunwing Kamala the first hotel in Asia also to receive the EU-Ecolabel. In 2010, we decided to move a step further, so we joined Travelife which is a sustainability scheme recognised by the GSTC (Global Sustainability Tourism Council) that covers full spectrum of sustainability issues. Environment, Ethical Trade, Labour, Social, Cultural, and Economic. The subscriptions were renewed in 2013 and in 2015 and all Sunwing Family Resorts have achieved their third Gold Award. The sustainability responsibilities in Thomas Cook Northern Europe Hotels & Resorts include: monitoring and reporting sustainability performance every year working with external sustainability organisations to further our knowledge and support best practice integrating sustainability processes into the day-to-day operations of our businesses EUROPEAN ECO LABEL CRITERIA FOR TOURIST ACCOMMODATIONS We actively support the European Union s Ecolabel Scheme by having awarded 10 Sunwing Family Resorts so far with the 11th Sunwing award in progress and by participating in its revision process and openly share our experience and knowledge from its implementation in our resorts. Having being awarded with the European Ecolabel is the best way to tell our guests about our efforts regarding environmental measures and quality improvements. Enterprises bearing the Flower logo have officially been distinguished as being amongst the most environmentally friendly in their area since it is the Europe s official trademark with high reputation based on strong and reliable criteria. The European Ecolabel is a guarantee for high environmental performance, since independent auditors are awarding the label after an on site audit which is being effected before the awarding and can also be effected whenever during the label award. The tourist accommodation must comply with all criteria (best practice & performance) in order to be awarded the EU Ecolabel, which aims to ensure a green future and sustainable development. In parallel we actively support Travelife which is a sustainability scheme supported by the major tour operators. Therefore, the hotel has to fulfil not only environmental criteria, but social ones as well. All our Sunwing Family Resorts achieved the Golden Award! The auditing was effected by the management of Travelife itself who has conducted the majority of the audits and the rest were conducted by independent consultants, since we feel that this approach has a greater impact and seriousness behind it. Moreover, using Travelife s system now, we have the most objective, accurate and updated sustainability database of our hotel s performance. 18 19

Environmental report ENERGY In all Sunwing Family Resorts in Europe, 95% of light bulbs have been replaced by low-energy bulbs and timers and photocells have been installed for the controlled operation of outdoor lights. Now, we take a step further and we have already started to change all low-energy bulbs to LED ones. Room temperatures are individually controlled by thermostats and there are automatic systems which turn the lights and the air conditioning off when guests leave their rooms: these have been installed in 85% of the guest rooms and there is a programme for further installation during renovation periods. In five Sunwing Family Resorts, (SW Arguineguin, SW Sandy Bay, SW Calabona, SW Kallithea and SW Makrigialos), heat recovery systems have been installed which produce hot tap water from the air conditioning chillers, covering the resort s needs for hot water during the months in which the air conditioning systems operate. In SW Alcudia, solar or photovoltaic panels are installed heating the pool s and apartment s water and Building Management Systems in six Sunwing Family Resorts (SW Side East, SW Side West, SW Sandy Bay, SW Calabona, SW Kallithea and SW Makrigialos) are centrally adjusting the operating time of high energy consumption machinery. Additionally, we have installed in two Sunwing FamilyResorts (SW Arguineguin and SW Sandy Bay) innovative application systems as a fuel device in burners achieving 96% efficiency - saving oil consumption and reducing CO2 and Nox emissions respectively, and in all electrical networks we have installed energy saving devices reducing electricity consumption per hotel. New technology generators have been installed in six hotels (SW Arguineguin, SW Side East, SW Side West, SW Sandy Bay, SW Kallithea and SW Makrigialos pool plant rooms which by a chemical reaction with the sea water use at the pools, produce the chlorine needed for their safe and healthy operation and reduction of the chemicals purchase. Sand filters have been replaced with crystal filters reducing the number of back washes needed to keep the clearance of the water and by this way also reducing energy and water consumption. Moreover, special maintenance procedures have been drawn up and documented for these energy-consuming machinery and equipment so as to achieve high efficiency and low energy consumption. Electricity, gas and oil consumption is closely controlled, documented and followed up with provisions for better information. Last, cooperation with Universities trying to find ways to improve the energy performance of the buildings, by implementing a methodology for calculating their integrated performance and setting standards based on certification schemes. Despite the continuous improvement in the services offered to Sunwing Family Resorts guests, including the new spa & pool installations, new appliances in the rooms (microwave ovens, toasters, boilers, etc.) or the introduction of all inclusive concept and OBC, has resulted a slight decrease in energy consumption. Nevertheless, in constructing or purchasing decisions, environmental criteria are still considered thus minimising environmental effect without compromising the comfort of Sunwing Family Resorts guests. 20 21

WATER All room taps and showers have been equipped with aerators which reduce water flow while maintaining water pressure and 80% are of the single mixer type. Toilet flushers are adjusted to less than 6lt of water per flush and during renovations double flushing system is installed. Showers in kitchens or outdoors have a system to stop the flow of water automatically after a certain time or if not occupied, and the gardens are normally irrigated during night hours to avoid water evaporation from the hot summer sun. Finally, periodic inspections checking for water leakages are documented and forwarded to maintenance staff for corrective actions. During the past year we have cooperated with the Travel Foundation on a water project in Rhodes, in order to retrieve ways to further develop in water management. Continuous improvement in the services offered to Sunwing Family Resorts guests, including the new spa installations, new sports pool construction, new private pools, new water slides, the introduction of all inclusive concept and OBC, or climate change (global warming) has resulted a slight increase in water consumption. However in constructing decisions, environmental criteria are considered thus minimising environmental effect without compromising the comfort of Sunwing Family Resorts guests. 22 23

CHEMICALS The use of disinfectants and chemicals is limited: where this unavoidable however, environmentally friendly products are sought out. All the chemicals are biodegradable and the quantity is measured through dosing devices. New generation generators which by chemical reaction produce the chlorine needed for a safe pool have been installed. Chemical-free cleaning methods are also promoted. WASTE All Sunwing Family Resorts have introduced the sorting of waste into at least five categories. Recycling stations are placed strategically around the resort areas, even though in some locations the local authorities have been slow to respond. We routinely avoid buying small quantities or materials which are over-packaged or are even designed for one use; such products include shampoos, soaps, shower caps, and breakfast portions such as butter or marmalade. We introduced purchasing of bio-degradable bags replacing the plastic ones used in our Mini Markets. We recognize that purchasing decisions can contribute significantly to environmental protection. AWARENESS In Sunwing Family Resorts we try to raise awareness of environmental issues both internally and externally through a variety of educational and training initiatives. Our employees participate in Sustainability and Environmental training programs each year which include general education on climate change, methods of controlling the amount of detergents and disinfectants used, reducing electricity and water consumption, separating waste into the appropriate receptacles with separate collection of the hazardous waste, and general environmental issues. A key element in Sunwing Family Resorts focus on quality and environment issues is our recognition of the importance of staff involvement. Proper training and information for staff have encouraged their involvement in environmental initiatives. Our hotel executives, the sustainability manager and the environmental coordinators have worked together with local authorities and individual stakeholders so as to improve awareness and general conditions on the destinations. By convincing others to undertake similar plans, we hope to advance sustainable tourism generally. 24 25

Action plan ENVIRONMENTAL POLICY Sunwing Family Resorts believe that continuing success in the hotel industry depends on: Offering high quality services in a clean, safe and well-protected environment. Constant adaptation of its services and products to new environmental standards and to the demands of its guests as these are shaped by the economy, technology and social changes. Consistent training of staff so that they understand and adopt these new technologies and practices which protect the environment. Each hotel department and its employees participate in this effort: it is necessary to ensure that products and services are always safe and do not damage the environment but if possible protect it and improve it. We also motivate and put pressure on our partners, suppliers and local authorities to accept and implement similar practices, always keeping in mind local circumstances and national legislation. Our company is committed to the environmental targets it has set itself, using material and human resources to achieve the targets. We make this policy known to our guests, staff and stakeholders. Our activities are examined with respect to our policy and relevant legislation. Our environmental work is reported openly and objectively. OBJECTIVES Continuous improvement is based on measurable environmental objectives such as : Reduction of energy consumption. Reduction of water consumption. Elimination or limited use of harmful chemicals. Limited production of wastes. ENVIRONMENTAL TARGETS Sunwing Family Resorts environmental action plan is designed to guarantee the reduction in consumption of energy, water and chemicals and reduction in wastes and to increase the points acquired by each resort every year from the optional criteria of the EU-Ecolabel and the mandatory criteria of Travelife. Our targets include the following: Average optional EU-Ecolabel points from all Sunwing Family Resorts to increase to 55 by the end of 2016. All Sunwing Family Resort to achieve the Travelife Gold Award according to the new criteria implemented from April 2014. Ensure a continuous reduction in the consumption of natural resources by a percentage that every resort will set based on its detailed action plan. Ensure that all new employees are informed of our environmental activities by completing training in basic environmental issues and business-related environmental aspects every year. 26 27

More information/ Contact us On our environmental web pages you will find supplementary information about the individual resorts, as well as a PDF-version of this environmental report. Our Internet sites: Sweden: www.ving.se/sunwing Norway: www.ving.no/sunwing Denmark: www.spies.dk/sunwing Finland: www.tjareborg.fi/sunwing For further information on our environmental activities, please contact info@ving.se or our Sustainability CSR Manager Mina Splagkounia-Zahariou at mina.zahariou@sunwing.net 28