sustainable holidays report 2014 - tui group...sustainable holidays report 2014 welcome to the tui...

Sustainable Holidays Report 2014

OVERVIEW

SUSTAINABLE HOLIDAYS PLAN

DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS DATA

TUI AG’S SUSTAINABILITY UPDATE

Sustainable Holidays Report 2014

Welcome to the TUI Group 2014 Sustainable Holidays Report.

Highlighting performance from the 2014 financial year (1st October 2013 to 30 September 2014).

This interactive PDF allows you to access information easily, search for a specific item or go directly to another page, section or website.

Guide to buttons

Go to front cover page

Search this PDF

Link to www.tuigroup.com

Go to previous page

Go to next page

Links in this PDF

These icons are dynamic links – clicking on them will take you to further information within the document, or to a web or video link.

Link within this document

Website link

Video link

Tell us what you think:We’re keen to hear what you have to say about this report.Please email your views to [email protected]

How to use this report

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS DATA


mailto:[email protected]

01 Sustainable Holidays Report 2014

WelcomeIn December 2014, we completed the merger of TUI Travel PLC and TUI AG to form the world’s leading tourism business.

This Sustainability Update covers 2014, the final year of TUI Travel’s three-year Sustainable Holidays Plan ( pages 6 to 39), and includes highlights of TUI AG’s sustainability performance in 2014 ( pages 40 to 47).

We are currently implementing our joint sustainability programmes. The full details of our 2020 sustainability strategy will be released this Summer.

Futureproofingourbusiness

“TUI is the world’s leading tourism business – and leaders have to take responsibility. Our society increasingly expects respected brands and companies like TUI to demonstrate leadership for a sustainable future.

TUI has been recognised as a leader in sustainable tourism. We have worked hard to embed environmental and social considerations into business operations, because we believe it is vital to our company’s future.

We believe a clear focus on sustainability differentiates us from the competition and generates value. Our listing in the Dow Jones Sustainability Index for the ninth year in succession is endorsement of our sustainability strategy, and is a spur to our unbroken commitment to environmental, economic and social objectives. We also achieved joint first place in the FTSE 350 with a ‘perfect 100’ score for climate change reporting and transparency from the Carbon Disclosure Leadership Index in the UK.

Our business case is clear. Sustainability delivers a range of benefits: cost efficiencies, quality improvements and the enhanced engagement of our stakeholders, including customers, colleagues, suppliers and destination governments. It future-proofs our business and the global industry.

We are looking forward to continuing this record as TUI Group. Both TUI Travel and TUI AG had a strong history and good reputation in this area, and the joining of our businesses can only enhance and improve our sustainability performance.

In short, sustainability is an integral component of a modern, efficient, forward-thinking tourism company.’’

Fritz Joussen, Joint CEO, TUI Group

PeterLong, Joint CEO, TUI Group

Fritz Joussen and Peter Long, Joint CEOs, TUI Group

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.tuigroup.com


Market capitalisation**

€10bRevenues of

€18.7bUnderlying EBITA

€869mFTSE 100 business

Global Company – domiciled in Germany

77,000 colleagues in 130 countries

More than

30m customers from 31 source markets travelling to 180 destinations

Over 300 hotelswith 210,000 beds

136 aircraft

13 cruise ships

1,800 retail shops in Europe

TUIataglance

The world’s leading tourism business at a glance*

*Based on numbers from FY 2013/14

**As of 13th May 2015

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




Carbon Disclosure Project In 2014, TUI was featured in the Climate Disclosure Leadership Index (CDLI) in the UK and Germany for its approach to carbon disclosure. In the UK, TUI was ranked joint first with 100 points in the FTSE 350.

Dow Jones Sustainability Index TUI is the only tourism group to feature in the reputable Dow Jones Sustainability Indices (DJSI) – World Enlarged and Europe Indices.

FTSE4Good TUI is listed on the FTSE4Good Index in recognition of our transparency and for meeting strict social, environmental and governance standards.

Other indices TUI is also listed in the sustainability indices DAXglobal Sarasin Sustainability Germany Ethibel Excellence Index, ECPI Ethical Index €uro and STOXX Global ESG Leaders Indices.

Indices and awards

Our commitment to sustainability extends beyond the TUI Group. We take great pride in the recognition we receive from external experts who assess our achievements and give us awards.

TUIfly was awarded ‘most climate-efficient airline with one million passengers’ and ‘most climate-efficient charter airline’ in the 2014 atmosfair Airline Index.

Our brands in Sweden (Fritidsresor), Denmark and Norway (Star Tours) were ranked most sustainable travel company in the 2014 and 2015 Sustainable Brand Index.

Arkefly achieved ISO 14001 certification for its airline operations in 2014.

Aitken Spence Travels won the ecotourism category at the 2014 PATA Awards (Pacific Asia Travel Association).

Thomson Airways was awarded ‘best aviation programme for carbon reduction’ at the 2014 World Responsible Tourism Awards.

TUI UK & Ireland achieved ISO 50001 certification for energy management in 2015.

Jane Ashton, TUI Group Sustainability Director, received the Ambassador Award for Sustainable Tourism at the 2014 British Travel Industry Hall of Fame.

TUI was a finalist in the business category of the WTTC’s 2014 Tourism for Tomorrow Awards.

TUI Nordic was the first tour operator in the Nordic region to achieve ISO 14001 certification in 2014.

Sportsworld achieved ISO 20121 for sustainable event management in 2014.

Jetairfly won the Airline Environment Award at the 2014 Brussels Airport Aviation Awards.

TUI UK was the first travel company in the UK to achieve the new Travelife certification for Tour operators in 2014.

Arkefly achieves the sustainability award at the 2014 Amsterdam Airport Schiphol Awards.

Jetairfly achieved ISO 14001 certification for its airline in 2015.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



James Whittingham, Group Environment Manager, presented at the Boeing Eco-Summit in Seattle, USA.

Elise Allart, Sustainable Tourism Manager, TUI Benelux presented on child protection at World Travel Market Latin America.

Jane Ashton, Director of Sustainability, presented at ITB 2015 on tourism and climate change.

Harald Zeiss, TUI Deutschland received the 2015 Columbus prize of honour for sustainable tourism from the Association of German Travel Journalists.

Arantxa Garcia, Head of Sustainable Development for Destination Services spoke at the Fitur conference in Madrid in 2014.

We communicate with our stakeholders – those who have an interest in our company and its activities – to help us develop as a business and to improve our sustainable development strategy.

Our stakeholders include customers, colleagues, investors, industry partners, academia, suppliers, destination partners, governments, non-governmental organisations and experts in sustainable tourism. We engage with them regularly, and incorporate their feedback into our plans.

As a tour operator flying 136 aircraft, our position on aviation and climate change is particularly important. We have developed collaborative partnerships with several stakeholders whose insight and guidance help us develop this position, including CDP, the Sustainable Aviation Fuel Users Group (SAFUG), Sustainable Aviation and Forum for the Future.

We are conscious of the pressures that tourism can place on local populations and resources. We work in partnership with communities, governments and others to support the sustainable management of destinations. Our partners include the Global Sustainable Tourism Council, the Dutch Association of Travel Agents & Tour Operators, Deutscher ReiseVerband, the UK’s travel industry association ABTA, German development agency GIZ, and The Travel Foundation.

Seniormanagersareadvocatesforsustainabletourism

Since we developed our Sustainable Holidays Plan in 2012, TUI executives have publicly advocated sustainable tourism at over 90 events with a wide range of international stakeholders.

Some of the most high-profile examples include:

• Harvard University in Boston, USA• FITUR, the international tourism trade fair

in Madrid, Spain• Corporate water risk conference in London, UK• UNEP Annual Symposium GPST in Agadir,

Morocco• Smarter Sustainability Reporting conference

in London, UK• ITB (International Tourism Bourse) CSR day

in Berlin, Germany

• CDP climate change conference, London, UK• International Conference on Responsible

Tourism in Manchester, UK• World Travel and Tourism Council (WTTC)

Global Summit in Hainan, China• World Travel Market Latin America in

Sao Paulo, Brazil• eeST (Energy Efficiency and Sustainability

in Tourism) Congress in Mallorca, Spain• Boeing Eco-Summit in Seattle, USA• OECD workshop on Effective Policies for

Tourism Growth in Bern, Switzerland• SETE Tourism & Development conference

in Athens, Greece• World Travel Market in London, UK

Stakeholderengagement

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Promoting greener and fairer holidays online

Training customer facing colleagues on sustainability

Greening our coach fleet

Engaging customers in sustainable tourism

Sustainability awareness raising in destinations

Driving best practice sustainability performance with suppliers

Our sustainable holiday journey

We are working to embed sustainability throughout the holiday journey.

PROTECTING BIODIVERSITY

SAVING WATER

REDUCING WASTE

ANIMAL WELFARE

REDUCING CARBON

SUPPORTING COMMUNITIES

PROTECTING CHILDREN

INVESTING IN TRAINING

Operating our cruise ships more efficiently

Flying more fuel-efficient aircraft

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Jane Ashton


SUSTAINABLE HOLIDAYS PLANIn this section we report back on the third and final year of TUI Travel’s Sustainable Holidays Plan.

“It is often easy for companies like TUI who have a clear leadership position on sustainable tourism, to sit back and let the rest of the industry catch up. But instead, TUI continues to strive for excellence. Not only do we see tangible performance improvements on carbon, but TUI keeps pioneering better ways for the whole industry to operate. The Group is determined that they, and the wider industry, add economic value to destinations, but not at a cost to sustainability. The resulting Total Impact Measurement and Management pilot of a way to evaluate a tour operator’s economic impact, alongside social and environmental costs and benefits is really commendable. It shows the value that the industry can bring, but also highlights the areas such as energy and upskilling local people where more could be done. We need to be careful about numbers as absolute truths, but pioneering this approach for the industry could shape the way that both destinations and tour operators measure future performance – and that is what leadership is all about!’’

Stephanie Draper, Director of Systems Innovation, Forum for the Future

www.forumforthefuture.org

Driving sustainability change at scale

‘’Looking back on the three years of our Sustainable Holidays Plan, I’m pleased with the progress we made in improving the sustainability impacts of our business.

Following years of sustained effort to reduce fuel consumption, our airlines are now Europe’s most carbon efficient. In 2014, TUI airlines’ CO

2 emissions

were just 69.9g per revenue passenger kilometre, and over the last three years we tracked more than €53 million in savings from environmental efficiencies across TUI Travel’s operations.

We also exceeded our ambition to deliver 10 million ‘greener and fairer’ holidays, taking over 11.5 million customers to hotels with credible sustainability certifications between 2012 and 2014.

Finally, we committed to taking customers with us on our journey. Holidaymakers in five of our six key source markets now rank us as the number one holiday company for sustainability.

The future looks even more exciting. Following the merger of TUI Travel PLC and TUI AG in December 2014, we are implementing our joint sustainability programmes. The full details of our sustainability strategy will be released this Summer and will capitalise on the sustainability ethos of both businesses and set clear, stretching goals for 2020. We do not underestimate the sustainability challenges that lie ahead. With international tourist arrivals set to grow from 1.1 billion in 2014 to 1.8 billion by 2030, we recognise a responsibility to seek new ways of protecting the finite natural resources on which our own business and the travel industry depend, whilst maximising the social and economic benefits that holidays can create for host destinations.’’

Jane Ashton, Group Director of Sustainability, TUI Group

08 DESTINATIONS

16 CARBON24 COLLEAGUES32 CUSTOMERS

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


www.forumforthefuture.org


GOAL BY 2015: We will deliver 10 million ‘greener and fairer’ holidaysOur customers rely on us to provide them with special holidays at beautiful and welcoming tourist destinations. We need to make sure our holidays benefit local people and protect the environment, so that we can maintain the quality, viability and desirability of our products for many years to come.

Destinations Betterontheground Takingcareindestinations

08 HIGHLIGHTS

09 CERTIFICATIONS

10 MEASURING IMPACTS

11 HUMAN RIGHTS

12 WORKING WITH SUPPLIERS

14 PROJECTS

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



11.5m customers have stayed in hotels with sustainability certifications since 2012

We featured over

5,900 hotels with sustainability certifications in 2014

66% of our differentiated hotels had sustainability certifications in 2014, up from 17% at the start of our Sustainable Holidays Plan

43% of our differentiated hotels had environmental management standards in 2014, up from 26% at the start of our Sustainable Holidays Plan

Our differentiated hotels have reduced energy consumption per person per night by

10%over the last 3 years

43 of our differentiated hotels saved

€2.2m by reducing energy and water consumption in one year

89% of our businesses supported environmental or socio-economic projects in destinations1

540 of the hotels we feature had Travelife certifications in 2014

Destinations highlights

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers)

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




Destinations certifications

The travel and tourism sector accounts for 9% of the world’s GDP, is responsible for one in 11 jobs globally1 and is the main source of foreign exchange in one-third of developing countries2.

We are proud of the positive role our industry plays in the world, but we know that travel and tourism can also have unintended negative consequences. Our industry faces some significant environmental challenges: water, for example, is likely to become increasingly scarce in the coming decades, particularly in island states. In addition, the socio-economic impacts of tourism can be complex, and vary widely across the world.

Our challenge is to maximise the positive social and economic impacts of tourism in all our destinations, and to minimise environmental impacts. Where possible, we want to do so in partnership with destination governments.

Recent UN research shows that only 34% of countries said that their tourism sector was guided by a ‘sustainable tourism’ policy3 – so there is a real opportunity for us to support the inclusion of sustainability considerations into tourism planning.

Greenerandfairer

We encourage our hotels to implement credible sustainability certifications to show their commitment to social and environmental good practice. As well as being good for the environment and people, we have also found that our most sustainably-managed hotels deliver higher quality and customer satisfaction.

Our goal was to deliver 10 million ‘greener and fairer’ holidays (that is, hotels with credible sustainability certifications) between 2012 and 2014. In 2014, we took over 5.5 million customers to hotels certified as sustainable, bringing our total to 11.5 million customers since 2012 – much higher than our initial goal.

We define a ‘credible sustainability certification’ as one recognised by the Global Sustainable Tourism Council (GSTC) or which conforms to international environmental standards such as ISO 14001 and the European Union’s Eco-Management and Audit Scheme (EMAS) standard.

www.gstcouncil.org

Between 2012 and 2014, the number of hotels we highlighted with sustainability certifications increased considerably, from 850 to 5,900. Of these, approximately 1,300 were GSTC recognised schemes, and the remainder were environmental management standards.

We lend particular support to the Travelife sustainability certification scheme. TUI is the largest supporter of Travelife, and we featured over 540 hotels with this certification in 2014. We play an active role on the Travelife Board and Steering Committee and helped to develop new, stricter criteria which were launched in June 2014. The new criteria adhere to international standards (including GSTC and Ecolabel standards) and cover areas such as: reducing waste and use of water, energy and harmful chemicals, supporting the local community and protecting employees, human rights and wildlife.

www.travelife.org

GOAL BY 2015: Wewilldeliver10million‘greenerandfairer’holidays.We will measure this by the number of customers we take to hotels with credible sustainability certifications from 2012-2014, e.g. sustainability certifications working with the Global Sustainable Tourism Council (such as Travelife) and international environmental management standards such as ISO 14001 and EMAS.

PERFORMANCE ACHIEVED

We took over 5.5 million customers to hotels with credible sustainability certifications in 2014, making a total of 11.5 million since 2012.

Commitment #1Wewillfeatureover3,000hotelscertifiedasmoresustainable


In Winter 2013/14 and Summer 2014 we featured over 5,900 hotels with sustainability certifications (up from 850 in 2012).

1UNWTO, 20142UNEP, 20143UN, 2014

TUI UK & Ireland was the first travel company in the UK to be certified to the Travelife standard for tour operators. Sawadee also achieved certification in 2014. TUI Nederland was the first major travel company in the world to be certified, in 2013.

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.gstcouncil.org

http://www.travelife.org



Measuringtourism’simpact

We are trialling a ‘big picture’ approach to measuring and understanding the impact of tourism. In partnership with The Travel Foundation, and using a methodology developed by PricewaterhouseCoopers (PwC), we aim to value the various economic, fiscal, social and environmental impacts of tourism in Cyprus.

PwC’s Total Impact Measurement & Management (TIMM) framework will be applied to our tourism operations, focusing on a selection of hotels in Cyprus. This is the first time the methodology has been applied to tourism. Cyprus was chosen for this project as it is a mainstream destination, and an important one for TUI.

The pilot project is expected to provide new insights into the impacts, both positive and negative, of mainstream tourism on a holiday destination and to highlight the practical implications of undertaking holistic impact measurement more widely in the industry and/or in other destinations.

All the impacts will be measured and valued, so that they can be considered alongside the more traditional financial metrics used for strategic business decisions. The impact of transport to and from the hotels, hotel operations, the entire tourism supply chain within Cyprus, and customer and employee spending impacts were all within scope, covering aspects of tourism such as: working conditions, social and community benefits, local economic benefits, and tax contributions. The Travel Foundation will be publishing a white paper in Summer 2015.

www.thetravelfoundation.org.uk

Read more about TIMM on the PwC website: www.pwc.com

Destinations measuring impacts

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.thetravelfoundation.org.uk/projects/destinations/cyprus/measuring_tourisms_impact

http://www.pwc.com/gx/en/sustainability/publications/total-impact-measurement-management/index.jhtml



Destinations human rights

Commitmenttohumanrights

Human rights are basic rights that allow individuals the freedom to lead a dignified life, free from fear or want, and free to express independent beliefs. TUI is committed to the protection of human rights in compliance with applicable laws, conventions and regulations throughout our worldwide operations.

We acknowledge the UN Guiding Principles on Business and Human Rights and have many policies and initiatives in place to identify, prevent, mitigate and account for how we are addressing key human rights issues and challenges.

• TUI signed up to the UN Global Compact in September 2014, committing the Group to 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. www.unglobalcompact.org

• Our employee Code of Conduct commits us to respecting and observing human rights.

• Our Supplier Code of Conduct sets out the minimum standards we expect from suppliers and their employees, contractors, agents and subsidiaries when working on our behalf. The code covers human rights and labour laws, support for local communities and environmental impacts, as well as bribery and corruption.

• Our internal policies, practices and guidelines also cover anti-discrimination, grievance and whistle-blowing procedures, health & safety, sustainability, anti-bribery & corruption, fraud, conflicts of interest, data protection and security, various sanctions and third party due diligence.

• TUI joined Transparency International UK’s Business Integrity Forum in 2014.

• We have been named a Top Member of the Code of Conduct for the Protection of Children from Sexual Exploitation in Travel & Tourism in 2014 and our businesses support child protection projects and campaigns.

• The majority of our businesses have incorporated environmental and social minimum standards into contracts for accommodation suppliers.

• We reached our goal to deliver 10 million ‘greener and fairer’ holidays and to encourage our hotel suppliers to implement credible sustainability certifications. Travelife is the system of choice for the majority of our businesses and we helped them to develop new, stricter criteria, including human rights (incorporating the principles of the Ethical Trading Base Code), which were launched in 2014.

We continue to work with stakeholders to understand and respond to human rights issues better.

TUI has formed a three-year partnership with the German development agency GIZ, The Code and other industry partners to focus on child protection in Thailand.

TUI Nederland won the ‘Overall winner’ award and the ‘Best for child protection’ award at the 2013 World Responsible Tourism Awards.

www.responsibletravel.com

BlueTravel and Hotelbeds in the Dominican Republic have partnered with UNICEF to protect children from exploitation.

In 2014, we refreshed our programme to raise awareness of child protection issues with our colleagues across our ground handling businesses. As part of the Don’t Look Away campaign, colleagues were sent a video, reporting procedure framework and access to online training to help them identify and report suspected cases of child exploitation.

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.unglobalcompact.org

http://www.responsibletravel.com/awards/winners/2013.htm



Destinations working with suppliers

Improving energy and water management and achieving sustainability certification benefits both our suppliers and TUI’s own sustainability goals. We work in partnership with our hotels across the world to improve their environmental management, and to help them share best practice with one another.

• We have incorporated environmental and social minimum standards into contracts with accommodation and excursion suppliers.

• The TUI Supplier Code of Conduct, launched in 2013, sets out the minimum standards we expect from suppliers.

• We organised supplier workshops on sustainability in Germany, Greece, Italy, Morocco, Spain, Tunisia and Turkey in 2014.

• We communicate with suppliers on sustainability – for example, our tour operator in the Netherlands publishes a regular e-newsletter on sustainability for suppliers.

• Many of our businesses recognise their top performing sustainability hotels. TUI UK & Ireland presented an award to Kassandra Bay Resort in Skiathos, Greece, in 2014 because of its impressive efforts to source locally. TUI Deutschland named Hotel Casabela in Portugal their top TUI Environmental Champion due to excellent customer feedback on sustainability.

• We have an animal welfare strategy in place across TUI, and audit attractions against the Global Welfare Guidance for Animals in Tourism.

www.tuitravelplc.com

Differentiatedhotels

We classify a portion of our hotels as ‘differentiated’. These are hotels which offer experiences carefully designed by us to meet the specific needs of the target customer. Within the Sustainable Holidays Plan, we focused on differentiated hotels as we are the exclusive customer within our source markets, and we have a level of influence and control over how they operate. This means we can make a real difference to their sustainability performance.

We have incorporated energy and water consumption benchmarks – and, in 2014, social criteria – into our contracts with differentiated hotels (see Commitment #4 for details).

One of our commitments was for all our differentiated hotels to hold a credible sustainability certification by 2015. At the end of 2014, 66% held a certification (up from 17% in 2011), falling short of our stretching target.

Similarly, we aimed for 50% of our differentiated hotels to have an environmental management standard by 2015. At the end of 2014, 43% of our 321 differentiated hotels had achieved this – a huge improvement on the 26% who held similar standards in 2011, but still short of our target.

Commitment #2Alldifferentiatedhotelswillhavea crediblesustainabilitycertification

PERFORMANCE PARTIALLY ACHIEVED

66% of our 321 differentiated hotels had a sustainability certification in 2014, up from 17% (of 202 hotels) in our baseline year (2011).

num

ber o

f hot

els

202

246

17%

36%

FY12

297

FY11 FY13

58%

321

FY14

66%

PROGRESS Commitment #350%ofdifferentiatedhotelswillhave anenvironmentalmanagementstandard


43% of our 321 differentiated hotels had achieved an environmental management standard in 2014, up from 26% (of 202 hotels) in our baseline year (2011).

num

ber o

f hot

els

202

246

26% 24%

FY12

297

37%

FY13

321

43%

FY14FY11

PROGRESS

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.tuitravelplc.com/sustainability/our-approach/policies



Differentiatedhotelscontinued

These goals proved to be some of the most difficult in our Sustainable Holidays Plan, for two main reasons:

• Differentiated hotels are popular with customers and TUI’s strategy is to increase our offering in this area. That means our target group of differentiated hotels increased every year (from 202 in 2011 to 321 in 2014) – and new hotels needed some time to make the changes required to gain their certification.

• We increased the robustness of our certification criteria each year to ensure our standards were always at the leading edge of best practice. In particular, we helped to develop new, stricter criteria for Travelife in 2014. That means that the bar was set higher for our hotels – and that many still have work to do to meet our targets.

Even though we haven’t achieved all our targets in this area, we’re still proud of the progress we made against them. Hotel sustainability is a critical element of making our holidays special, and we’ll continue to support and encourage our suppliers to improve their performance and seek certification.

Our differentiated hotels met the energy benchmark we set them, on average reducing energy consumption per person per night by 10% between 2012 and 2014. We targeted a 20% reduction in water consumption at our differentiated hotels and had made good progress in 2013 – but the new additions to our differentiated hotel portfolio in 2014 increased average water consumption significantly. Since water is likely to become scarcer in many destinations, this is a critical area for us to influence.

Monitoringandimprovinglocaleconomiccontribution

Monitoring and improving the local economic contribution of a hotel is challenging. In 2013, we invested in a system which has allowed us to track and influence the environmental impact of some of our key suppliers, as well as to begin to monitor social indicators such as local employment and procurement.

Information provided by 170 hoteliers shows the following socio-economic benefits from our hotels:

• 58% of employees in these hotels are from the local region (and 89% are from the same country)

• 45% of food is from the local region (and 80% is from the same country)

• These hotels have a ratio of around one staff member to four guests

In 2014, we worked with global experts to better understand the local economic contribution of our hotels so that we can seek to improve our impacts.

Destinations working with suppliers

Commitment #4Ourdifferentiatedhotelswillachieveanaverage24kWh and 400 litres forenergyandwaterconsumption per person pernight


Our differentiated hotels achieved an average 23.9kWh energy consumption per person per night in 2014, compared to 27.1kWh in 2011.1 This represents a reduction of 10%, even though the number of hotels in our target group doubled in this period.

Water consumption at our differentiated hotels decreased from 516 litres per person per night in 2011 to 513 litres in 2014.2 The hotels in the 2013 target group had reduced their water consumption to 470 litres per person per night, but the additions to our portfolio in 2014 were heavier water users and increased the average significantly. We will continue to work with our differentiated hotels – particularly the new additions – to reduce water consumption.

1 We gather data from as many of our differentiated hotels as possible. Our energy data from 2014 is based on 262 hotels (out of 321 differentiated hotels) and the baseline data from 2011 was based on 124 hotels (out of 202 differentiated hotels).

2 Our water data from 2014 is based on 248 hotels and the baseline data from 2011 was based on 102 hotels.

Blue Village Aegean Park in Rhodes uses cutting-edge geo-thermal cooling for air-conditioning

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




Destinations projects

Commitment #6TUIwilldemonstrateresponsibleleadershipbyinfluencingthesustainablemanagementoftouristdestinations


We work with many partners to support and advocate the sustainable management of tourism destinations, including The Travel Foundation, Global Sustainable Tourism Council, GIZ and UNEP. Since we developed our Sustainable Holidays Plan in 2012, TUI executives have presented to international stakeholders at over 90 events. page 4

Commitment #5Wewillinvestinprojectswhichdriveenvironmentalandsocio-economicimprovementsinkeydestinations and replicate them elsewhere


In 2014, 89% of TUI businesses supported environmental or socio-economic projects in destinations1 (up from 80% in 2011), and helped contribute over €4.4 million to good causes.

We are involved in projects all around the world that support communities and reduce negative environmental impacts. Where we can, we focus on those destinations where we send the most customers and where we believe we can make the greatest difference.

Here are some examples:

• In Spain, we have come to the end of a six-year project in Mallorca, in cooperation with the Environment department of the Balearic Islands. We planted over 57,600 wild olive and pine trees on a nature reserve to rehabilitate the area.

www.tui-group.com

• In Thailand, we participated in a project with WWF, to identify the impact of tourism on biodiversity in the Andaman Sea.

• In Tunisia we partnered with the German development agency GIZ to support a major

project in Tunisia which focuses on training hotel managers, working with hotel schools, promoting tourism employment opportunities for women and linking local artisans with hotels.

www.tui-group.com

Stakeholders in destinations have a significant role to play in sustainable tourism management. We work closely with communities, local and national governments, non-governmental organisations and trade associations to support the sustainable management of destinations.

TUI is on the Board of the Global Sustainable Tourism Council (GSTC) and we encourage destinations to participate in their destinations programme. We presented at the GSTC Destinations Community Summit in Barcelona in late 2014, where committed destinations came together to reinforce the application of the GSTC Criteria.

www.gstcouncil.org

We are also part of the sustainable tourism task force of the UNEP ten-year framework for sustainable consumption and production, adopted at the Rio+20 conference. Jane Ashton sits on the multi-stakeholder advisory panel.

www.unep.org

TheTravelFoundation

TUI has a longstanding partnership with the Travel Foundation, a sustainable tourism charity. The Travel Foundation has supported us on our sustainability journey, providing a wide range of resources and expertise, and collaborating with us on strategic projects that have helped us address the sustainability issues facing our industry. We have raised over £6.4 million in customer donations for the charity since 2003.


Examples include:

• In Jamaica, we are supporting projects to develop cultural excursions and boost tourist expenditure in Montego Bay.

• In Cape Verde, we helped to set up a destination council to tackle sustainability issues. This led to the development of programmes on crafts, excursions and better beaches.

• In Turkey, we are creating linkages between hotels and local farmers through the Taste of Fethiye project. Our customers are now enjoying fresh, local produce in hotels and visiting the farms on excursions.

• In Mexico, we are supporting a beekeeping community that sells honey-based products to local hotels, including ours.

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers)

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.tui-group.com/en/sustainability/env_management/biodiversity/projekte/tui_bosque

http://www.tui-group.com/en/sustainability/social_commitment/project_for_the_advancement_of_women

http://www.gstcouncil.org

http://www.unep.org/resourceefficiency/Policy/SCPPoliciesandthe10YFP/The10YearFrameworkProgrammesonSCP.aspx

http://www.thetravelfoundation.org.uk


Carbon Better in the airReducingcarbonemissions


16 HIGHLIGHTS

17 REPORTING

18 IN THE AIR

22 ON THE GROUND AND AT SEA

GOAL BY 2015: We will operate Europe’s most fuel-efficient airlines and save more than 20,000 tonnes of carbon from our ground operationsWe know that the future must be a low-carbon one, and we need to prepare for it. That means we’re committed to reducing our own environmental impact, and encouraging our suppliers, customers and the rest of our industry to do the same.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



69.9gof CO

2 emissions per

revenue passenger kilometre (RPK) across TUI airlines – making our airlines the most carbon efficient in Europe

TUI airlines reduced CO

2 emissions per

passenger km by

10.3% in 6 years

97% of our aircraft are now fitted with fuel-saving blended winglets, reducing fuel burn by up to 5%

1st in Europe to use the innovative split scimitar winglets, reducing fuel burn by an additional 2%

We currently operate

13 787 Dreamliner planes, which are 20% more carbon efficient than comparable aircraft

We have saved

€53m through environmental efficiencies since 2012

5 of our charter airlines have ISO 14001 certification, covering

95% of our aircraft fleet

Our ground transport operations reduced CO

2 emissions by

22%since 2012

Our retail shops have reduced CO

2 emissions by

25% since 2012

We have printed

8.2bfewer brochure pages since 2011

TUI scored

100% for CDP carbon reporting in the UK

Carbon highlights

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




Carbon reporting

The challenge of climate change has never been more urgent than today. We know that the future must be a low-carbon one, and we need to prepare for it by reducing our environmental impact, and encouraging our suppliers, customers and the rest of our industry to do the same.

Our customers trust us to make their holiday experiences special. But many of the things that make a holiday special – beautiful destinations, predictable weather and personal comfort – are threatened by climate change.

Travel and tourism accounts for around 5% of global carbon emissions1, half of which is attributable to aviation. In 2014, TUI’s carbon footprint was 6,242,792 tonnes of CO

2 and emissions from aviation account for over 88%

of our carbon footprint.

That is why carbon management is a critical part of our business practices. Our carbon management strategy covers not only aviation but also hotels, major premises, retail shops, water transport and ground transport emissions.

Managing our carbon footprint also saves us money, now and in the future. Across TUI, improved management of energy, natural resources and fuel has saved a total of €53 million over the last three years (2012-2014)2.

Carbonreporting

We have been reporting our carbon emissions on a voluntary basis for many years now, and have done so transparently and consistently. We use the airline carbon intensity metric of grams of CO

2 per revenue passenger kilometre (RPK),

and have commissioned PricewaterhouseCoopers (PwC) to audit and verify this metric.

Some of our industry peers report with the same level of transparency, but many do not. We believe that a standard metric and methodology for aviation carbon reporting would create the basis for fair and informative comparisons between airlines, enabling those holidaymakers who monitor their carbon footprint to make an informed choice of airline.

TUI has reported on all of the greenhouse gas (GHG) emission sources required under the UK Companies Act 2006 (Strategic and Directors’ Reports Regulations 2013). We have also invested in a web-based sustainability data software solution that has improved the accuracy of our data. We report on carbon, water and waste and socio-economic data.

For more details on our reporting, see the Data section on page 38.

TUI airlines** and aviation 88.4%

Water transport 4.1%

Ground transport 0.4%

Major premises 0.6%

Differentiated hotels 5.5%

Other (indirect emissions including business travel by air) 1.0%

BREAKDOWNOFTUITRAVEL’SCARBONFOOTPRINT

1 UNEP, 20142 An approximate figure of Group savings that have been tracked, gross of any upfront investments required to achieve those savings in 2012, 2013 and 2014. Part of previously identified cost savings.

2013/14*

* Carbon footprint covers Scope 1 (direct emissions) and Scope 2 & 3 (indirect emissions).

**The scope of the TUI airlines carbon data is as follows: for the absolute fuel burn and carbon data calculations, all flights conducted under each airline’s flight number including sub-charters flown by TUI airlines but excluding sub-charters the TUI airlines fly for other airlines are included in the scope.

GLOBAL GHG EMISSIONS DATA FOR PERIOD 1 OCTOBER 2013 – 30 SEPTEMBER 2014 ABSOLUTE FIGURES

Source

CO2 [t] (tonnes of

carbon dioxide)

CO2e [t] (tonnes of carbon

dioxide equivalent)

Total Scope 1 emissions 5,865,385 5,927,861Total Scope 2 emissions 315,201 315,374Other (Scope 3) emissions 62,206 62,391Grand total 6,242,792 6,305,626

Scope 1 covers direct emissions

Scope 2 & 3 covers indirect emissions

TUI was ranked joint first in the FTSE350 in the UK, with a score of 100%, for our approach to carbon disclosure and governance (CDP, 2014). This placed TUI in the Carbon Disclosure Leadership Index (CDLI) for the seventh year running.

www.cdproject.net

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.cdproject.net


Jetairfly won the Environment Award at the 2014 Brussels Airport Aviation Awards

Arkefly won the Sustainability Award at the 2014 Amsterdam Schiphol Airport Aviation Awards


Carbon in the air

Thomson Airways won ‘best aviation programme for carbon reduction’ at the 2014 World Responsible Tourism Awards.

www.responsibletravel.com

“Winning this award is a fantastic achievement for the airline and one we are very proud of. At Thomson Airways, ‘responsible leadership’ is one of our core values and underlines our commitment to sustainable development and carbon reduction. Embedding carbon management into our key business practices is something we have done for many years.”

John Murphy, MD Thomson Airways

100806040200

Global airlines (average)** 98.6g

European Scheduled airlines (average) 96.4g

European Budget airlines (average) 83.4g

TUI airlines (average) 69.9g

TUIfly Nordic 65.4g

gCO2/RPK (grams of CO2 per revenue passenger kilometre)

TUIAIRLINES’CARBONEFFICIENCYVERSUS THE LARGEST AIRLINES IN EUROPE*

*Data from the 4 largest budget and 4 largest scheduled airlines in Europe based on passenger numbers. Latest publicaly available data, June 2015.

**Global airlines emissions metrics, taking an average of short & long haul operations (UK Government).

Ourairlinesareworldleading

TUIfly was named ‘most climate-efficient charter airline’ for the third year in a row – and ‘most climate-efficient airline with more than one million passengers’ for the second year in a row – in the 2014 atmosfair Airline Index.

www.atmosfair.de

“We are very proud to be heading the atmosfair Airline Index again in 2014. This top ranking re-confirms that we are implementing a successful strategy, based on investing in modern technology and the skills of our employees. We will continue to strive to make our fleet even more climate efficient because, for TUIfly, climate-efficient flights are a top priority.” Dr Dieter Nirschl, MD TUIfly

GOAL BY 2015: WewilloperateEurope’smostfuel-efficientairlinesandsavemorethan20,000tonnes ofcarbonfromourgroundoperations. We will measure this through TUI airlines’ average carbon emissions per revenue passenger kilometre (gCO

2/RPK) and CO

2 saved from our

major premises, retail outlets, brochure paper production, differentiated hotels and fleets of vehicles (against 2011 baseline).


TUI airlines’ carbon emissions were 69.9g per revenue passenger kilometre (gCO

2/RPK) in 2014, making our airlines the most fuel-efficient in Europe.

TUIfly was independently ranked the world’s most climate-efficient airline with more than one million passengers per year in the 2014 atmosfair Airline Index, for the second year in a row. Against our baseline year, we saved 17,580 tonnes of carbon from our ground operations, largely through reducing emissions from retail shops, brochure print runs and ground transport. We fell short of our 20,000 target as the hotel occupancy rates increased significantly.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.responsibletravel.com/awards/categories/low-carbon.htm

https://www.atmosfair.de/en/atmosfair_airline_index


Airlinesachievefuelefficiencytarget

TUI operates Europe’s most fuel-efficient airlines – six in all, flying a total of 136 aircraft. We are investing in cutting-edge aviation technology and implementing fuel conservation and operational efficiencies.

In 2009, our airlines committed to reduce carbon emissions per revenue passenger kilometre (gCO

2/RPK) by 6% by 2015, against a baseline of

2008. Our emissions reductions have exceeded our expectations, and in 2012 we extended the target to 9%.

In 2014, TUI airlines’ relative carbon emissions were 69.9g per revenue passenger kilometre (gCO

2/RPK), representing a reduction of 10.3%

since 2008 – exceeding our target of 9% again.

Fuel efficiency examples:

• Fuel-saving blended winglets fitted to 97% of our aircraft, reducing fuel burn by up to 5%

• The first in Europe to use the new innovative split scimitar winglets, reducing fuel burn by up to an additional 2%

• High passenger load factors (that is, we ensure that each flight is as full as possible)

• Operational efficiencies such as single-engine taxiing, continuous descent approaches and optimised flight planning

• Reducing weight on our aircraft through lighter catering trolleys, lighter seats and optimising the amount of water and goods we carry on board

• Maintenance efficiencies such as engine wash programmes, lighter paint, and surface sealant applications that reduce drag on the aircraft by stopping dirt and grime adhering to it

• Implementation of an enhanced fuel monitoring and management system in four airlines

787 Dreamliner

We fly Europe’s largest Boeing 787 Dreamliner fleet, which emits around 20% less CO

2 per passenger

kilometre than comparable aircraft. It also produces considerably less noise pollution – more than 60% less than those of the airplanes it replaces.

TUI airlines were the launch customers for the Dreamliner in the UK, Belgium and the Netherlands.

We currently operate 13 Boeing 787 Dreamliner planes, and this will expand up to 17 aircraft by 2019. We carried one million long-haul passengers on the Dreamliner in 2014 and receive exceptional feedback from our customers on their experience.

Carbon in the air

Commitment #7TUIairlines’perpassenger carbon emissions will reduce by 9% (baseline 2008)


In 2014, TUI airlines’ per passenger carbon emissions were 69.9g per revenue passenger kilometre (gCO

2/

RPK), 10.3% below the 2008 baseline.

g CO

2 / R

PK

77.9 78.1

76.1 75.9

73.0

6% reduction

10.3% reduction

2012YEAR 4

70.7

2013YEAR 5

69.92014YEAR 6

2011YEAR 3

2010YEAR 2

2009YEAR 1

2008BASELINE

TUIAIRLINES’CARBONEMISSIONS Measured by average carbon emissions per revenue passenger kilometre (CO

2/RPK),

with reductions against the baseline year

AIRLINE GHG EMISSIONS DATA FOR PERIOD 1 OCTOBER 2013 – 30 SEPTEMBER 2014 INTENSITY (RELATIVE) METRIC

TUI airlines

gCO2/Revenue Passenger

Km

gCO2e/Revenue Passenger

Km

Arkefly 71.0g 71.7gCorsair 83.4g 84.3gJetairfly 73.0g 73.8gThomson Airways 67.1g 67.8gTUIfly 66.3g 67.0gTUIfly Nordic 65.4g 66.1gTUI airlines (average)* 69.9g 70.6g

* When calculating the carbon-efficiency [relative or intensity metric] the focus is on ‘Revenue’ flights, i.e. RPK. This includes all flights conducted under TUI airlines flight numbers. It excludes sub-charters flying for TUI airlines; sub-charters TUI fly for other airlines; positioning flights (but includes ferry flights); ad hoc flights such as for training, technical, all-cargo.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Carbon in the air

Innovationintheskies

We have partnered with Boeing for the next phase of their ecoDemonstrator Programme, which aims to accelerate the development and testing of environmental technologies to reduce noise and carbon emissions from commercial aviation.

New technologies being tested on the ecoDemonstrator 757 include coatings on a wing’s leading edge to reduce aerodynamic drag from insects. Also in collaboration with NASA, the Boeing team is testing ‘active flow control,’ which may help to shrink an airplane’s vertical tail and thereby reduce weight, fuel use and emissions.

The first test flight took off from Seattle in March 2015, and trials will continue into the summer.

“The ecoDemonstrator 757 furthers our commitment to accelerate innovative technologies for current and future airplane programs. The Boeing ecoDemonstrator program is focused on putting new, more environmentally efficient technologies and airplanes in the hands of our customers sooner.”

Mike Sinnett, vice president of Product Development, Boeing Commercial Airplanes

“We are very pleased to partner with Boeing for the next phase of their ecoDemonstrator program. TUI Group is committed to achieving further environmental efficiency across our whole business and remaining the industry leader on carbon efficiency with our airlines.”

Jane Ashton, Director of Sustainability, TUI Group

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




Sustainablefuels

Sustainable fuels represent a real opportunity for the aviation industry to reduce its carbon footprint. There has been significant progress in recent years, but sustainable fuels are not yet financially competitive with kerosene, the current aviation fuel.

TUI is a Council member of Sustainable Aviation, which brings together key players in the UK aviation industry – including airlines, airports and manufacturers – to discuss the challenges and opportunities for aviation in the long term. We contributed to Sustainable Aviation’s roadmap for sustainable fuels, published in December 2014 which outlined some key points to help accelerate the commercialisation of sustainable aviation fuels.

Sustainable Aviation believes that, with the right policy and investment framework, UK aviation can reduce its CO

2 emissions by up to 24% by

2050 through sustainable alternative fuels. This could generate up to £265 million in economic value for the UK, and support up to 4,400 jobs.

www.sustainableaviation.co.uk

In 2014, TUIfly Nordic joined the Nordic Initiative for Sustainable Aviation (NISA), which brings together key players from the Nordic aviation sector to push forward the development of sustainable aviation fuels.

TUI Nederland’s airline Arkefly is partnering with AlgaePARC (part of Wageningen University and Research Centre in the Netherlands) to facilitate the development of sustainable biofuel from algae. An algae photobioreactor has been sponsored as part of the partnership.

TUI is also a member of SAFUG (Sustainable Aviation Fuel Users Group), a coalition of global airlines that account for approximately one-third of global aviation fuel use.

Recyclingon-board

Our airlines are recycling as much cabin waste as possible, focusing on drink cans, paper and plastic bottles. Reducing cabin waste is an operational challenge because of space constraints, international legislation regarding catering waste and, in some cases, lack of recycling infrastructure at airports. In 2014, waste was segregated on 66% of TUI airline flights, up from 58% in 2013.

Thomson Airways also donated over £100,000 worth of recycled old-style crew uniforms to a Luton-based homelessness charity called NOAH, to be used by those who need them for job interviews and work placements.

ISO14001certifications

All five of our charter airlines are now covered by the internationally recognised ISO 14001 environmental management certification scheme, with Arkefly achieving their certification in September 2014, and Jetairfly in February 2015.

Carbon in the air

Commitment #9Wewillrecyclecabinwastegeneratedonboard50% ofTUIairlineflights(cans,paperandplasticbottles)


Five of our airlines were segregating waste in 2014, equating to 66% of all airline flights. Arkefly started recycling in April 2015 – meaning that all six airlines are now recycling, up from three airlines in 2012.

Commitment #10TUIairlineswillbeISO14001certified(aninternationalenvironmentalmanagementstandard)


All five of our charter airlines are now ISO 14001 certified, covering 95% of our aircraft. Arkefly achieved certification in September 2014 and Jetairfly in February 2015 (first airline in Belgium to achieve this certification). TUIfly, Thomson Airways and TUIfly Nordic remained ISO 14001 certified in 2014.

Commitment #8Wewilltrialsustainablefuelonflightsandexplore along-termsustainableaviationfuelsstrategy


In 2014, TUIfly Nordic joined the Nordic Initiative for Sustainable Aviation (NISA), which brings together key players from the Nordic aviation sector to push forward the development of sustainable aviation fuels. TUI contributed to Sustainable Aviation’s roadmap on sustainable fuels, published in December 2014.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.sustainableaviation.co.uk/wp-content/uploads/SA-SAF-Roadmap-FINAL-24-Nov.pdf


Carbon on the ground and at sea

Commitment #13We will make measurable environmentalimprovementstoourgroundtransportoperations


We reduced CO2 emissions by 22%

against our 2011 baseline year. This was largely achieved through more efficient use of the coach fleet.

ReducingCO2emissionsfromoffices,shops

and brochures

We focus our carbon reduction efforts on our 50 major premises – most of which are offices with over 100 people in them – and from 1,650 retail shops.

Highlights:

• TUI Nordic was the first tour operator in the region to achieve ISO 14001 certification in 2014 and TUI Deutschland successfully renewed its ISO 14001 certification, which it has held since 2003.

• An ‘energy dashboard’ was rolled out to all Thomson and First Choice shops, giving a simple, real-time indication of how each shop is performing against its energy targets. It has helped reduce CO

2 emissions by 24% over three

years. When the behaviourial change aspect was introduced in the fourth year we achieved

a 19% reduction in a single year. Retail shop managers were able to respond to regular updates, follow advice and encourage their teams to be proactive to save energy.

• TUI UK & Ireland achieved the international energy management standard ISO 50001 in January 2015.

• Since 2012, we have reduced CO2 emissions

from the manufacture of brochures by 51%. TUI Deutschland reduced brochure pages by 4.7 billion between 2011 and 2014.

• The TUI Digital Assistant app is a ‘one stop shop’ for everything customers need when booking a holiday and preparing for their trip. It has now been downloaded over 1.4 million times, and is available in eight countries. The app has made significant reductions to customer printed material.

Greenercruising

Our water transport operations make up the third largest area of TUI’s carbon footprint, contributing just over 4% of our total carbon emissions. We are committed to making environmental improvements in this area of our business.

Thomson Cruises is the UK’s third largest cruise line, carrying 250,000 passengers per year. It operates five cruise ships in destinations including the Mediterranean, Canaries and Caribbean.

The company has introduced a wide range of more efficient procedures and technology including single engine running, or drifting on passage, where speeds allow; so that the engines can run at their most efficient speed and installing new equipment on board, from the laundry to air conditioning plant – cutting the demand for energy produced by the ship.


Quark Expeditions operates six ships in the Arctic and Antarctic. Read more about their sustainability initiatives here:

www.quarkexpeditions.com

Greenergroundtransport

We operate over 800 vehicles and we have been working to make measurable environmental improvements across these operations. We have reduced CO

2 emissions by 22% over the last

three years.

Ultramar, our largest ground transport company, based in Spain and carrying 10 million passengers per year, has several measures in place to improve fuel efficiency. These include training drivers on more efficient driving techniques, investing in new, fuel-efficient vehicles, and installing satellite navigation in all vehicles to monitor fuel consumption.

www.youtube.com

Commitment #12Wewillmakemeasurableenvironmental improvementstoourwatertransportoperations


We reduced absolute CO2 emissions by 5% against our 2011

baseline year. Thomson Cruises has reduced per passenger CO

2 by 24% since 2007, from 142kg of CO

2 per passenger

night to an industry-leading 108kg by replacing cruise ships with more efficient models, saving energy on board and changes to itineraries.

Commitment #11We will reduce CO2fromourmajorpremises, retail shops and brochure production by 15% (baseline 2011)


We reduced CO2 emissions by 27% compared

to our baseline of 2011, exceeding our target (Retail reduced by 25% and CO

2 from offices

by 5%). Brochures reduced by 51% with 8.2b fewer brochure pages printed since 2011.

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.tuitravelplc.com/sustainability/in-focus/advocating-smarter-carbon-legislation/greener-cruising

http://www.quarkexpeditions.com/en/about-quark/our-sustainability-initiatives

https://www.youtube.com/watch?v=wK6Jejh5aGE&feature=youtu.be



GOAL BY 2015: Our colleagues will rate TUI as a leader in sustainabilityLike most companies, we want our colleagues to be engaged, enthusiastic and proud to work for TUI. We believe that our commitment to sustainability is central to this. Our colleagues, in turn, play a vital role in delivering on our sustainability goals.

24 HIGHLIGHTS25 ENGAGEMENT28 VOLUNTEERING30 INNOVATION

Colleagues take action Involvingandempowering colleagues

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Colleagues have dedicated over

33,000 hours to volunteering since 2012

Our businesses, colleagues and customers contributed

over €4.4m to more than 70 charities in 2014

Over 700people took part in the Big Holiday Beach Clean in Summer 2014, cleaning over 30 beaches around the world

86 Project Discovery volunteers have participated in 31 sustainable tourism projects in 18 destinations since the scheme started in 2007

120 ideas were generated by colleagues in our sustainability innovation competition, and 1,500 colleagues voted for their favourite ideas

TUI executives have presented on sustainable tourism to international stakeholders at over

90 events since the launch of our Sustainable Holidays Plan

Colleagues highlights

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


www.tuigroup.com



Today’s employees are motivated not only by money and status, but also by the knowledge that their employer’s values align with their own. This is even more evident among young people: 80% of 13-25 year olds want to work for a company that cares about its impact on society1 .

Our employee Code of Conduct sets out clearly the behaviours we expect from all our colleagues. It includes human rights, business ethics and transparency, and is inspired by the guiding principles of the UN Global Compact.

We were shortlisted for an HR Excellence Award in 2014 for embedding the Sustainable Holidays Plan throughout our Company. We want our colleagues across the world to consider TUI a leader in sustainability, and to feel that they can take action in their day-to-day lives.

Sustainabilitytraining

We are embedding sustainability into key parts of the training calendar – for example, inductions for new starters – and also deliver bespoke sustainability training where it is needed.

For example:

• Sustainability is part of online learning platforms – for example, TUI Nederland has developed seven sustainable tourism modules for colleagues and TUI UK has rolled out a new online induction for retail with sustainability as a core module. Thomson Airways also rolled out an environmental management system e-learning module designed to engage its teams of people right across the airline, i.e. colleagues in In-Flight Operations, Cabin Crew, Engineering, Ground & Customer Operations.

• Face-to-face sustainability training is also key – for example, TUI Nordic delivered sustainability training to sales colleagues in Stockholm this year.

• TUI’s Learning and Development team worked with City & Guilds to develop a new, innovative qualification that includes two units on sustainability – nearly 100 colleagues are currently working towards this qualification.

• Our international graduates work on a sustainability challenge during their 18-month placement – for example, developing sustainable excursions and sustainability features for hotels.

• The business case for sustainability is integrated into our ‘high potential’ training programmes across TUI.

GOAL BY 2015: OurcolleagueswillrateTUIasaleader in sustainability

We will measure this through the Your Voice global opinion survey results – aiming to meet High Performing Company scores for responsibility towards the environment and community for all colleagues and senior leaders.


Your Voice was last undertaken in 2012, and was due to be repeated in 2014. However, our merger at the end of 2014 meant that our HR department’s priority was to ensure a successful transition, and the survey did not take place. We plan to launch a new TUI-wide employee survey in 2015. Our most recent results are from

2012, when 74% of colleagues agreed that we act responsibly on environmental matters, 68% agreed that we are socially responsible, and 78% of senior leaders agreed with both statements.

That means we won’t be able to judge our progress against this Sustainable Holidays Plan goal. We will develop a colleague engagement metric alongside our next sustainability strategy.

1 www.forbes.com2 Sustainable Development Evaluation 2014 (weighted by colleague numbers)

Colleaguesengagement

Commitment #14Wewilldeliversustainabilitytrainingtonewcolleagues,customer-facingcolleaguesandmanagementdevelopmentprogrammes


In 2014, 74% of our businesses cover sustainability in inductions and 74% of our businesses offered training on sustainability for colleagues (both up from 71% in 2012)2. Our businesses have been particularly focused on training customer-facing colleagues in retail and in resort. Sustainability has been embedded into Group management development programmes.

TUI branded bikes are available for colleagues in Hanover to travel between the offices

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.forbes.com



Motivatingourcolleagues

We want our colleagues to take action on sustainability, and we communicate both our successes and challenges on sustainability, so that they understand why we are committed to further improvement.

Our local communications teams use their expertise to choose the best channels for their audience. Across TUI, sustainability information can be found in recruitment materials, intranets, newsletters, inductions, blogs by senior managers, short videos and e-learning modules.

Here is a selection of initiatives from 2014:

• Specialist Holidays Group organised a sustainability week with a different theme for each day, including Go-Green Tuesday and Switch Off Friday.

• TUI Belgium organised a free breakfast for colleagues who cycled to work during their sustainability event in March.

• TUI Nederland produced an engaging booklet on sustainability to share with colleagues, and a dedicated newsletter for their product department.

• TUI UK & Ireland had a sustainability stand at a company-wide Product Day and a dedicated Sustainability Day (as part of Make Holidays Greener month) with stalls from local producers and a very popular clothes swapping event.

• TUI Deutschland also organised a Sustainability Day, encouraging colleagues to cycle to work together and shared information about TUI’s sustainability-related projects.

Many of these initiatives are now annual events, showing their enduring popularity with TUI colleagues.

Champion networks

Our networks of sustainability champions stretch across the whole of TUI, bringing together colleagues who know how to inspire change in their area of the business. For example, TUI Nordic runs a network of ISO-coordinators who helped to implement ISO 14001, TUI Deutschland has a group of environmental ambassadors who meet regularly and help to raise awareness of sustainability, TUI Nederland has placed sustainability champions in each product department, and TUI UK & Ireland has established champion networks in retail, head office and overseas.

In 2014, championed by the HR Director and executed by the reward team, TUI UK & Ireland added a Sustainability category to its annual recognition awards. The category recognises individuals who played their part in delivering our sustainability strategy. Sarah Clarke, IT Project Manager, was the winner in 2014 because of her endless energy when working on sustainability projects, striving to advocate sustainability among her colleagues.

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers).

Commitment #15We will launch a Group-wide sustainability communications campaign


98% of our businesses communicate with colleagues on sustainable development1 (up from 91% in 2011). During 2014, sustainability has been further embedded into Group communication channels including the TUI e-magazine, intranet, fortnightly e-newsletters, and sustainability campaigns and competitions.

BeecampaignWe ran a colleague campaign to support a beekeeping community in Mexico that had recently started a business selling honey-based products to nearby hotels, including TUI ones. The project was kick-started by the Travel Foundation. We received over 1,600 ‘likes’ from colleagues (for every ‘like’ TUI donated €1.50) which was then matched by the business raising over €5,000 for the project.

We also ran a competition for colleagues to win some of the products. One winner from Germany said: “It is great that TUI provides our guests in our hotels with very special and carefully selected natural cosmetics that are locally produced! This will contribute to a unique customer experience for the guest, adding to special memories about their TUI holiday!”


www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.thetravelfoundation.org.uk/projects/destinations/mexico/melipona_bee_project




* Sustainable Development Evaluation 2014 (weighted by colleague numbers).

Supportinggoodcauses

We encourage our colleagues across the globe to support charitable causes. In 2014, our businesses contributed over €4.4 million to more than 70 charities. We are the largest corporate sponsor of the Family Holiday Association, a charity that provides simple holidays for disadvantaged children and their families in the UK. Since 2009, we have raised more than £2.5 million for the Family Holiday Association. Peter Long, CEO of TUI Group, was

appointed its President in 2013 with other senior leaders from TUI providing their time e.g. by being Trustees.

Colleagues working for our B2B websites and ground handling agencies supported more than 20 charities and good causes across the world. Many of these good causes were local charities and hospitals in destinations such as Peru, Sri Lanka and India, who received donations of food, clothes and toys as part of a Christmas charity campaign.

Sustainable tourism competition

During 2014, we ran a TUI-wide competition asking for our colleagues’ tips on how to make holidays ‘greener and fairer’. Colleagues from TUI Benelux, TUI France, TUI UK & Ireland, in our destinations and specialist and activity businesses and Group functions submitted their top tips, including using refillable drinking bottles, looking for hotels with sustainability certifications, encouraging use of public transport, supporting

local attractions, shops, restaurants and crafts, packing lighter, and saving water with shorter showers. The winner, chosen by Salli Felton, CEO of the Travel Foundation, was the idea for each destination to provide a set of tips for holidaymakers, to help them make eco-friendly choices and provide valuable information about the destination. We will be looking to see how we can implement many of these ideas throughout the customer journey.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


TUI t

ea

ms supported the Big Holiday Beach Clean

30+beach

cleans in July

700+people involved

over

35,000 piecesof rubbish

collected


Community volunteering programmes are one of the most popular ways in which we engage our people in sustainability. Colleague volunteering has a positive impact not only on the projects, but on our volunteers as well, allowing them to experience sustainable tourism firsthand and to develop their own skills.

TheBigHolidayBeachClean

In July 2014, TUI organised a series of beach cleans for the Travel Foundation’s Big Holiday Beach Clean, part of Make Holidays Greener month. The purpose of the campaign is to build understanding of the simple steps that everyone can take to protect the environment and local wildlife on holiday. Teams of colleagues from across the world, including Cape Verde, Dominican Republic, Greece, Jamaica, Mexico, Portugal, Spain, Sri Lanka, Turkey and the UK, took part.

TUI organised over 30 beach cleans in 20 destinations, involving 700 colleagues and holidaymakers. Approximately 400 bags of rubbish were collected, representing over 35,000 pieces of rubbish from 30 kilometres of beach worldwide.

In one region in Spain, our annual beach clean has prompted the municipality to reinstate the official beach cleaning service.

1Sustainable Development Evaluation 2014 (weighted by colleague numbers).

Colleaguesvolunteering

Commitment #16Ourcolleagueswilldedicate100,000hourstovolunteering


We have been able to track 33,000 hours of colleague volunteering since 2012, but we believe that the real number of hours dedicated to volunteering is much higher than those we have captured in our data. We know that 80% of our businesses support volunteering1, an increase of 7% since 2011, and many of our businesses allow colleagues one day per year to volunteer for a charity in their local area, many of them using the opportunity to work together in teams further enhancing collaboration and team work when back in the office. In our next strategy we will look at other ways to measure our colleagues’ contribution to the community.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Colleaguesvolunteering

ProjectDiscovery

Jill Carter, Director of Retail at TUI UK, visited Montego Bay as part of our Project Discovery overseas volunteering scheme. Jill, who is also responsible for developing knowledge of sustainability among the company’s retail teams in the UK, used her skills to help villagers at the Rastafari Indigenous Village to develop a tour. The trip had a profound effect on Jill. “Since the trip, I’ve been thinking about what I can do to incorporate everything I learnt into a training plan,” she says. “I was passionate before the trip, but it was a really overwhelming experience.” Project Discovery, run by TUI UK & Ireland in partnership with The Travel Foundation, has been running since 2007, and has taken 86 volunteers to 31 sustainable tourism projects in 18 destinations.

LendingahandintheDominicanRepublic

In July 2014, over 30 TUI colleagues in the Dominican Republic supported a month-long summer camp for 40 children at Juanillo Basic School. The theme of the camp was ‘recycling’, brought to life through painting, drawing, gardening, crafts, jewellery, African dance and Zumba. Thirty TUI employees participated in these activities, and also organised a movie night for the children, showing the environmentally-themed film The Lorax. The camp ended with an exhibition of all the projects undertaken by all the children, as well as performances of zumba dance, moonwalking and a sale of desserts donated by employees.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Colleaguesinnovation

Commitment #17Wewilldriveproductandprocessinnovationsthroughsustainability


The focus in 2014 was on implementing the ideas generated via the Green Ideas Factory colleague innovation competition launched in the first year of the strategy. Many of the ideas submitted by our colleagues have now come to fruition.

Ideascometolife

In the first year of our Sustainable Holidays Plan, we ran the Green Ideas Factory competition, asking for colleague ideas on how we can green our business and generate commercial benefits. We had over 120 ideas from 18 countries and nearly 1,500 colleagues voted for their favourite idea. Now, at the end of our Sustainable Holidays Plan, we look back to see how many of the ideas and themes have come to life across the Group.

Greener airlines

• One of the winning Green Ideas Factory submissions was implemented in early 2014, as Jetairfly introduced electric cars for ground colleagues at Brussels Airport. Arkefly has also introduced electric vehicles at Schiphol Airport, Amsterdam – its main operating base.

• Colleagues from Arkefly suggested a central hub for new airline sustainability ideas. We have since established a dedicated network of airline environmental managers from across TUI, who meet regularly to share best practice.

Goingdigital

• There has been a significant reduction in brochures across the business – a reduction of 22% in brochure pages in the last year alone.

• Two of our airlines, TUIfly and Thomson Airways, have switched to e-ticketing.

• The TUI Digital Assistant app has now been rolled out in eight countries and downloaded over 1.4 million times as a ‘one stop shop’ for everything a customer needs to maximise their holiday experience before and during their holiday. This has reduced customer printed material.

• Many technological trials have taken place in resort, including digital welcome meetings, free Wi-Fi on transfers, digital notice boards in resorts, and airline and resort colleagues using iPads. Many of these trials have been rolled out more widely.

Choosingsustainablehotels

• We have been working hard with our hotel suppliers to encourage them to achieve sustainability certifications. We now highlight approximately 5,000 hotels with sustainability certifications, up from 700 in 2012.

• We also took 11.5 million customers to these hotels over three years, exceeding our target of 10 million.

• Our tour operators and B2B websites such as hotelbeds.com and bedsonline.com are making it easier for customers to find these hotels by using logos and search functions.

Makingourexcursionsgreener

• In Summer 2014, the Collection was launched – a set of excursions tailored to give customers a true taste of the destination. As well as other criteria, excursions have to meet specific sustainability standards in order to be included in the Collection. page 33

• Sustainability clauses have been integrated into contracts with excursion suppliers and we helped develop and roll out animal welfare guidelines across TUI.

• The ‘shared transfer’ initiative (where customers from different TUI source markets travelling to the same hotels join the same coach) from our destinations services team has been very successful and has now been rolled out in many destinations.

Volunteeringfortheenvironment

Many of our colleagues’ ideas covered how we can work together to conserve the local environment. We have several volunteering schemes in place across the Group, with colleagues dedicating tens of thousands of hours to local causes.

page 28

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




Customers who careCreatingdemandforsustainableholidays

GOAL BY 2015: Customers will regard TUI as a leader in delivering more sustainable holidaysOur purpose as a business is to make holidays special for our customers. We need to make clear the links between sustainability and those special experiences – and encourage them to take action themselves.

32 HIGHLIGHTS33 INSIGHTS34 ENGAGEMENT35 COMMUNICATING SUSTAINABILITY

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



84,000 customers enjoyed Collection excursions in 2014, all of which meet sustainability criteria

68% of customers say they ‘really valued’ the local flavours element of their Collection excursion

1m UK schoolchildren have been engaged in sustainable tourism through the Eco-traveller education programme since 2011

90% of customers rated TUI UK & Ireland’s brands as ‘good’ or ‘excellent’ for their sustainability performance

Holidaymakers in 5 of our 6 key source markets rank us as the

No. 1holiday company for sustainability

Over 6mholidaymakers have been actively engaged in sustainable tourism since 2012

Over €1.8m was raised through the World Care Fund customer donation scheme in 2014

25 pupils sit on TUI Nederland’s Kids Counsel – exploring the future of holidays

Customers highlights

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


www.tuigroup.com



Customers insights

Our customers are critical to delivering some of our most important sustainability goals. We need to make sure that clear links are made between sustainability and the holiday experiences they value, and encourage them to take action in a way that is engaging and memorable.

Recent research from the German Federal Ministry of the Environment1 found that 61% of consumers want to book a sustainable holiday. This mirrors our own research2 which also found that modern mainstream consumers are more engaged with sustainability compared to traditional mainstream consumers:

• One in two would be willing to book a more sustainable holiday if available

• One in two want their holiday company to be clear about what they do to make their holidays more sustainable

• They are more interested in social and community issues than traditional mainstream consumers

• The sustainability aspects that interest them most in the destination are: fair working conditions; learning about the country and the people; and changing their behaviour to help the environment.

We have also found a positive correlation between more sustainable holidays and customer satisfaction3. This confirms our belief that our sustainability commitments support the drivers of consumer holiday preference – price, quality, food, service and unique destinations. Minimising waste in energy and resources helps us deliver value for money. Hotels that treat their people and the local environment with consideration are developing a quality product with friendly staff. Beautiful and unique destinations rely on the tourism industry for protection.

Our goal is for TUI brands to be recognised for providing customers with more sustainable holidays. We measure this through our annual brand performance survey in key source markets, carried out by an independent company.

The Collection

The Collection is a set of new, exclusive excursions that have been tailored to give customers a true taste of the destination. They were launched in 2014 and are now offered by the majority of our tour operators.

Each excursion in the Collection must be exclusive to TUI and meet specific criteria for sustainability (based on ABTA’s sustainable excursion criteria), showing that it is bringing benefit to local people and minimising its impact on the environment.

Over 84,000 customers enjoyed these excursions last year, and customer satisfaction research showed that they valued the ‘sustainability’ and ‘local flavour’ aspects most of all.

GOAL BY 2015: CustomerswillregardTUIasaleaderindeliveringmoresustainableholidays We will measure this by our performance in consumer research in our key source markets.


Consumers in five of our six key source markets (Belgium, France, Germany, the Netherlands and Sweden) consider our brands to be the leading holiday companies in terms of environmental and social responsibility in 2014. In the UK, we were ranked second. Fritidsresor, our brand in Sweden, was named the most sustainable travel company in Sweden in the 2014 Sustainable Brand Index and by the Differ survey.

Collection: Turtle watch excursion in Turkey and Discover the west excursion in Mallorca

1 German Federal Ministry of the Environment 2015, www.bmub.bund.de

2 TUI Group Marketing Research 20123 Analysis of TUI UK & Ireland Customer Satisfaction Questionnaires in 2012 and 2013 revealed a statistically significant correlation between good customer ratings on our approach to ‘environment and community’ and overall holiday satisfaction.

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.bmub.bund.de



Customers engagement

Across TUI, we’re working to help customers to experience sustainable tourism in a way that is engaging and memorable – reaching them through Kids’ Club activities, school education initiatives, customer donation schemes and sustainable tourism campaigns.

We set ourselves a goal of engaging five million holidaymakers in sustainable tourism between 2012 and 2014. In 2014, we exceeded our goal by engaging over six million people over the period.

Here are just a few examples:

• Customers can take an excursion to visit local farmers involved in the Taste of Fethiye project in Turkey.


• TUI Nordic’s Blue Village hotels hold Environment Days as part of their Kids’ Club activities, in which children learn to recycle with the help of Skalman the turtle.

• Over one million UK schoolchildren have participated in the Eco-traveller programme, which teaches them how to make a difference on holiday, since 2011.

• 84,000 customers enjoyed the new Collection excursions in 2014.

• TUI Nederland appointed a Kids Counsel to its business, in collaboration with the Missing Chapter Foundatio, founded by HRH Princess Laurentien van Oranje. The Board consists of 25 pupils and explores the ideas of the younger generation around the future of holidays.

• Customer donations to TUI UK & Ireland’s World Care Fund raised over £1.4 million in 2014. The funds are channelled into projects that help address the environmental impact of tourism and support communities around the world.

• i-to-i, one of our volunteer tourism companies, has sent over 60,000 volunteers around the world over the last two decades, supporting 80 projects in 29 countries. Volunteers have built hundreds of homes across Thailand and Central America, taught thousands of hours of English, and helped to release over 500,000 sea turtles in Costa Rica.

www.i-to-i.com

Commitment #18Wewillengagefivemillionholidaymakersinsustainabletourism


We have engaged 6.1 million holidaymakers in sustainable tourism since 2012. We calculate this number by totalling the number of holidaymakers who engaged in initiatives such as ‘voluntourism’ (volunteer travel), carbon offsetting, sustainability activities in Kids’ Clubs, sustainable tourism campaigns, school projects, sustainable excursions and customer donation schemes.

Customers can visit the farms where the Taste of Fethiye produce is grown in Turkey

TUINederlandkids’packs

TUI Nederland’s Kids Counsel has given advice on the design and content of the kids’ pack distributed to children on board its aircraft. The new pack, developed in partnership with publisher Mercis, contains a book, crayons, an inflatable ball and an SOS children’s bracelet. The contents are carried in a backpack made from recycled plastic bottles, and the weight of the whole pack has been reduced by more than a quarter to save weight on-board the aircraft which saves fuel.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.thetravelfoundation.org.uk/projects/destinations/turkey/farming_in_fethiye

http://www.i-to-i.com

Research

Book

Pre-trip

On holiday

Journey

After Holiday


Customers communicating sustainability

Sustainability is not yet a primary driver of consumer preference for mainstream holidays. But the more we link the aspects of a holiday that we know customers value (quality hotels, great food, friendly staff and unique destinations) to sustainability, the more we will build a shared understanding of its role in supporting what makes holidays special. Most of TUl’s businesses communicate with customers on sustainability. In 2014, many of our businesses enhanced the sustainability content on their websites:

• TUI Deutschland revised and updated its sustainability website, including its TUI Environmental Champion and EcoResort hotels. www.unternehmen.tui.com

• TUI Nederland developed a sustainable accommodation landing page. www.arke.nl

• TUI Nordic enhanced functionality so customers can search for hotels with sustainability certifications on its websites.

www.fritidsresor.se

• Hotelbeds used a logo to highlight over 5,000 hotels with sustainability certifications on its B2B website. www.hotelbeds.com

As an integrated tour operator, our relationship with customers is unique because of the many touchpoints along the customer journey. This gives us an opportunity to communicate with customers throughout their holiday, and really bring sustainability to life. We plan to focus on this area over the coming years.

For example:

• Research stage – we communicate how we are managing the impacts of holidays and highlight ‘greener and fairer’ hotels (those with sustainability certifications) using logos.

• Booking stage – we ask for contributions to customer donation schemes that support good causes around the world.

• Pre-holiday stage – many of our businesses include sustainability information in their pre-holiday literature (for example, advice on acting responsibly and with cultural sensitivity).

• Journey stage – our airlines include articles and features on sustainability in their inflight magazines, and screen short films on relevant topics.

• On holiday – there are plenty of opportunities to communicate with customers, including at welcome meetings, during hotel activities (local cooking displays, market evenings and kids’ club activities) and outside the hotel (village walking tours and excursions).

• After the holiday – sustainability is highlighted in e-newsletters and via social media.

Commitment #19Wewillreachallcustomerswithimprovedsustainabilitycommunications


93% of our businesses communicated with customers on sustainable development issues in 20141 (up from 87% in 2011). In 2014, many of our businesses updated the sustainability content on their websites, making it easier for customers to find out what their holiday company is doing in this area.

Commitment #20Wewillpromotegreenerandfairerholidaystocustomersonline


79% of our businesses identified ‘greener and fairer ‘holiday products and promoted them to customers in 20141 (up from 76% in 2012). These businesses are now focusing on making it easier for customers to identify and search for more sustainable hotels online.

72% of our businesses are promoting ‘greener and fairer’ holiday products on their website in 2014* (up from 68% in 2012).

Examples of the labels used across TUI to highlight ‘greener and fairer’ holidays to customers.

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers).

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://unternehmen.tui.com/de/verantwortung/nachhaltigkeit/nachhaltige-hotels

http://www.arke.nl/verantwoord-reizen

http://www.fritidsresor.se

http://www.hotelbeds.com


SustainableHolidaysPlan2012-14progress

Destinations

GOAL BY 2015:Wewilldeliver10million‘greenerandfairer’holidays

#1 We will feature over 3,000 hotels certified as more sustainable

#2 All differentiated hotels will have a credible sustainability certification

#3 50% of differentiated hotels will have an environmental management standard

#4 Our differentiated hotels will achieve an average 24kWh and 400 litres for energy and water consumption per person per night

#5 We will invest in projects which drive environmental and socio-economic improvements in key destinations and replicate them elsewhere

#6 TUI will demonstrate responsible leadership by influencing the sustainable management of tourist destinations

PRIORITY AREAS OUR THREE YEAR GOALS AND COMMITMENTS HOW WE PERFORMED

ACHIEVED We took over 5.5 million customers to hotels with credible sustainability certifications in 2014, making a total of 11.5 million since 2012.

ACHIEVED In Winter 2013/14 and Summer 2014 we highlighted over 5,900 hotels with sustainability certifications (up from 850 in 2012).

PARTIALLY ACHIEVED 66% of our 321 differentiated hotels had a sustainability certification in 2014, up from 17% (of 202 hotels) in our baseline year (2011).

PARTIALLY ACHIEVED 43% of our 321 differentiated hotels had achieved an environmental management standard in 2014, up from 26% (of 202 hotels) in our baseline year (2011).

PARTIALLY ACHIEVED Our differentiated hotels achieved an average of 23.9kWh for energy (10% reduction since 2011) and 513 litres for water consumption per person per night.

ACHIEVED We have invested in many projects covering our 8 key themes. 89% of our businesses supported environmental or socio-economic projects in destinations*, (up from 80% in 2011).

ACHIEVED We have invested in a number of projects which influence the sustainable management of tourist destinations. Since we developed our Sustainable Holidays Plan in 2012, TUI Travel executives have presented to international stakeholders at a total of 90 events.

*Sustainable Development Evaluation 2014 (weighted by colleague numbers)

Carbon

GOAL BY 2015: WewilloperateEurope’smostfuel-efficientairlinesandsavemorethan20,000tonnesofcarbonfrom ourgroundoperations

#7 TUI airlines’ per passenger carbon emissions will reduce by 9% (baseline 2008)

#8 We will trial sustainable fuel on flights and explore a long-term sustainable aviation fuels strategy

#9 We will recycle cabin waste generated on board 50% of TUI airline flights

#10 TUI airlines will be ISO 14001 certified (an international environmental management standard)

#11 We will reduce CO2 from our major premises, retail shops

and brochure production by 15%

#12 We will make measurable environmental improvements to our water transport operations

#13 We will make measurable environmental improvements to our ground transport operations

ACHIEVED TUI airlines’ carbon emissions were 69.9g per revenue passenger kilometre (gCO2/RPK) in 2014, making

our airlines the most fuel-efficient in Europe. We saved 2,207 tonnes of carbon from our ground operations, bringing the total to 17,580 tonnes of CO

2 since 2012.

ACHIEVED TUI airlines reduced their per passenger carbon emissions by 10.3% (baseline 2008), to 69.9g per revenue passenger kilometre (gCO

2/RPK).

ACHIEVED TUI airlines are collaborating with a number of stakeholders to drive understanding and action for sustainable aviation fuel. Thomson Airways were the first UK airline to fly customers on sustainable fuel in October 2011.

ACHIEVED Five of our airlines were segregating waste in 2014 (up from three airlines in 2012), and our sixth airline started in April 2015 (equating to over 66% of TUI airline flights).

PARTIALLY ACHIEVED All five of our charter airlines are now ISO 14001 certified, covering 95% of our aircraft. Arkefly achieved ISO 14001 in 2014 and Jetairfly in 2015.

ACHIEVED We reduced CO2 by 27% against our baseline of 2011, exceeding our target.

ACHIEVED We reduced absolute CO2 emissions by 5% against our 2011 baseline year.

ACHIEVED We reduced CO2 emissions by 22% against our 2011 baseline year.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



SustainableHolidaysPlan2012-14progresscontinued

Customers

GOAL BY 2015: CustomerswillregardTUIasaleader indeliveringmoresustainableholidays

#18 We will engage five million holidaymakers in sustainable tourism

#19 We will reach all customers with improved sustainability communications

#20 We will promote greener and fairer holidays to customers online

Colleagues

GOAL BY 2015:OurcolleagueswillrateTUIasaleader in sustainability

#14 We will deliver sustainability training to new colleagues, customer facing colleagues and management development programmes

#15 We will launch a Group-wide sustainability communications campaign

#16 Our colleagues will dedicate 100,000 hours to volunteering

#17 We will drive product and process innovations through sustainability

PARTIALLY ACHIEVED 78% of TUI Travel’s senior leaders agree that TUI acts responsibly on environmental matters and is socially responsible. 74% of all colleagues agree that TUI Travel acts responsibly on environmental matters and 68% agree for social responsibility.

ACHIEVED 74% of our businesses cover sustainability in inductions and 74% of our businesses offer training on sustainability for colleagues (both up from 71% in 2011). Sustainability has been embedded into Group management development programmes.

ACHIEVED 98% of businesses communicate with colleagues on sustainable development* (up from 91% in 2011).

PARTIALLY ACHIEVED Colleagues have dedicated over 33,000 hours to volunteering since 2012.

ACHIEVED Implementation of ideas generated via the Green Ideas Factory colleague innovation competition launched in 2012.

PARTIALLY ACHIEVED Consumers in five of our six key source markets consider TUI brands to be the leading holiday company in terms of environmental and social responsibility.

ACHIEVED Over 6.1 million holidaymakers were engaged in sustainable tourism since 2012.

ACHIEVED 93% of our businesses are communicating with customers on sustainable development issues* (up from 87% in 2011).

ACHIEVED 79% of our businesses are identifying green/fairer holiday product and identifying them to customers* (up from 76% in 2012). 72% of our businesses are promoting green/fairer holiday product on their website* (up from 68% in 2012).

PRIORITY AREAS OUR THREE YEAR GOALS AND COMMITMENTS HOW WE PERFORMED

*Sustainable Development Evaluation 2014 (weighted by colleague numbers)

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



Scope

The scope of this report from pages 6 to 37 in the Sustainable Holidays Plan section includes data and progress on sustainable development activities from businesses owned by TUI Travel. Data is for the financial year 2013/14 (referred to throughout as 2014 or FY2014), running from 1 October 2013 to 30 September 2014, except where otherwise stated. We have indicated where data refers to joint ventures or Group suppliers.

Data sources

For this report we gathered data for our performance indicators from two main sources: the 2014 Group Sustainable Development Evaluation and our 2014 annual sustainability data collection process.

GroupSustainableDevelopmentEvaluation

The 2014 Group Sustainable Development Evaluation was used to assess and report on performance from our businesses across the Group. The 2014 Evaluation consisted of questions relating to Embedding Sustainable Development, Carbon Management, Destinations, Colleagues and Customers.

In December 2014, the Evaluation was sent to the Managing Directors of TUI Travel businesses, and responses represented over 51,000 colleagues. To ensure the responses reflected the size of the businesses that responded, we weighted them by colleague numbers.

In September 2014, 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 differentiated hotels and the operations directors of our cruise businesses.

Carbon Disclosure Project

In 2014, for the seventh consecutive year, TUI Travel was featured in the Climate 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, governance and performance.

www.cdproject.net www.tuitravelplc.com

Thirdpartyverifieddata

TUI Travel’s 2014 airline carbon intensity metrics have been externally verified by PwC. PwC also assure our airline EU Emissions Trading Scheme data. Our airline carbon data methodology document and PwC’s Assurance Report in full can be found at:


TUI Travel also commissioned the environmental consultancy company Arqum in Germany to audit the processes of monitoring emissions, data collection and calculations of environmental KPIs. This audit covered all of TUI Travel’s Scope 1 and Scope 2 emissions and included Scope 3 emissions where relevant.


BREAKDOWNOFTUITRAVEL’SCARBONFOOTPRINTINFY2014

CO2 [t] CO

2 [t]

Absolute figures Absolute figures (tonnes of Source (tonnes of carbon dioxide) carbon dioxide equivalent))

TUI airlines and aviation 5,520,695 5,577,828

Water transport 257,019 261,983

Ground transport 24,974 25,159

Premises 35,110 35,261

Differentiated hotel properties 342,788 343,003

Other (scope 3) 62,206 62,391

6,242,792 6,305,626

Data

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS DATA


http://www.cdproject.net

http://www.tuitravelplc.com




Data


Carbonandwaterfootprint

We continue to improve our airlines’ carbon emissions per passenger km, replacing older, less efficient aircraft and driving a programme of fuel conservation across our airlines. This has helped us reduce our carbon emissions per passenger km by 10.3% since FY2008.

In FY2014, the efficiency of TUI Travel airlines was 69.9g of CO

2 per revenue passenger kilometre (CO

2/

RPK). TUI Travel cruise and expedition ship operations emitted an average of 301g CO

2/RPK in FY2014.

In FY2014 the total water footprint from TUI Travel’s differentiated hotel properties was 19,436 million cubic metres of water.

Sustainabilitydatasoftwaresolution

During FY2014, TUI Travel further developed their a web-based sustainability data software solution. Using multiple methods of data capture, this software has enabled us to improve data accuracy and provide advanced monitoring and reporting tools. This has allowed us to comply fully with UK mandatory greenhouse gas reporting requirements with robust and auditable data.

Greenhousegasemissions

TUI Travel has reported on all of the greenhouse gas (GHG) emission sources required under the Companies Act 2006 (Strategic and Directors’ Reports Regulations 2013). The organisational boundary used for its Scope 1 & 2 and, where appropriate, Scope 3 inventory of GHG emissions is operational control and it corresponds to the Company’s consolidated financial statements. TUI Travel is disclosing carbon dioxide equivalent (CO

2e) data for both its absolute and relative

emissions. CO2e refers to CO

2 and the other five

Kyoto GHGs – (Methane (CH4); Nitrous oxide (N

2O);

Hydrofluorocarbons (HFCs); Perfluorocarbons (PFCs); and Sulphur hexafluoride (SF6).

All material GHG emissions have been included and disclosed following a thorough review of entities and the emissions sources across the Company’s UK and international operations. The methodology for the assessment is based on voluntary and mandatory GHG reporting guidance issued by DEFRA (the UK Government’s Environment Department).

TUIAIRLINES’ABSOLUTEANDRELATIVECARBONEMISSIONSSINCEFY2008

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Relative (gCO

2/RPK) 77.9 78.1 76.1 75.9 73.0 70.7 69.9

Absolute (tonnes of CO

2) 6,016,083 5,778,712 5,260,500 5,467,814 5,248,262 5,101,532 5,014,068

TUITRAVEL’SCARBONFOOTPRINTINFY2008,FY2009,FY2010,FY2011,FY2012,FY2013&FY2014 (tonnes of carbon dioxide)

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Scope 1 emissions 6,564,026 6,297,794 5,981,254 6,259,723 6,169,809 5,936,608 5,865,385

Scope 2 emissions 53,475 104,408 118,869 168,441 220,058 303,759 315,201

Scope 3 emissions 70,597 45,167 38,541 38,478 35,549 52,084 62,391

Total 6,688,097 6,447,370 6,138,664 6,466,642 6,425,416 6,292,451 6,242,792

Scope 1 covers direct emissions. Scope 2 & 3 covers indirect emissions

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS DATA


Thomas Ellerbeck

Robinson Club Agadir


TUI AG SUSTAINABILITY UPDATE In this section we report highlights of the sustainability performance of TUI AG’s cruise ships and hotels in 2014.

41 TUI CRUISES42 HAPAG-LLOYD CRUISES43 TUIHOTELS&RESORTS47 GOOD CAUSES

Tourism as a force for good

‘’Tourism plays a hugely positive role across the world, delivering nearly 10% of global jobs and GDP. It also generates significant indirect and induced economic benefit – a ripple effect that is particularly important in developing countries, where tourism is often a significant export.

2014 saw TUI AG continue its excellent track record on sustainability.

In September, we signed the UN Global Compact, committing TUI AG to 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. TUI’s employee Code of Conduct, which applies to all its businesses, is inspired by the guiding principles of the Global Compact.

In 2014, TUI Cruises launched Mein Schiff 3, a cruise ship with exceptional environmental credentials. It is 30% more carbon efficient than comparable ships and sets a new standard for the industry.

I am proud of our ongoing commitment to training for young people in destinations. Three of our Robinson Clubs support hospitality training schools, ensuring a strong future for the tourism industry and fulfilling careers for the next generation.

It is initiatives like these that convince me of the fundamental importance of tourism – and of the need to continue improving our performance every year.’’

Thomas Ellerbeck, Member of the Group Executive Committee, TUI Group

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


Mein Schiff 3 is 30% more carbon efficient than comparable ships


TUI AG TUI Cruises

TUI Cruises is a joint venture with Royal Caribbean offering premium voyages. The fleet currently consists of four vessels, with the new ship, Mein Schiff 4, launched in June 2015.

Reducingenvironmentalimpacts

In order to cut fuel consumption – and hence greenhouse gas emissions and air pollutants – TUI Cruises has optimised voyages continually and improved intelligent route planning. Furthermore, silicone anti-fouling paint has been applied to the hulls of all its vessels. This enhances flow dynamics, as do the ducktails installed on the aft ship.

Advanced exhaust gas purification and selective catalytic reduction work together to cut sulphur emissions by up to 99% and particle emissions by 60%. The catalyst reduces nitrogen oxide emissions by 75%.

www.tuigroup.com

More sustainable shore excursions

The ‘green and fair’ category of shore excursions was introduced in 2013. The shore excursion department has developed clear criteria for ‘green and fair’ excursions and used these to highlight tours that are particularly environmentally and socially beneficial.

Guests have responded very well to the excursions offered in this category. For every ticket booked, TUI Cruises donates €5 to environmental projects and organisations. During Summer and Winter 2014/2015, more than €100,000 was raised in this way for charitable purposes.

Protectingbiodiversity

In the field of marine biodiversity, TUI Cruises is working with the SECORE foundation, a leading coral conservation initiative, to protect coral reefs. With the support of TUI Cruises, SECORE designs restoration measures to counteract the decline of the reefs.

A coral breeding station in Curaçao, Dutch Antilles nurtures endangered elkhorn corals and transplants them along the reefs. This means that the project is not only helping to preserve and develop the coral reefs on Curaçao, but also contributing new insights into the restoration of coral, which will support the protection of threatened coral species all over the world.

To read TUI Cruise’s dedicated environmental reports, visit: www.tuicruises.com

CARBON DIOXIDE EMISSIONS FOR CRUISE OPERATIONS

DatafromTUICruisesandHapag-LloydCruises

tonnes 2013/14 2012/13 Var. %

Cruises 319,722 294,741 +8.5*

* The 8.5% increase in absolute CO

2

emissions from cruise operations mainly resulted from Mein Schiff 3 joining the TUI Cruise fleet.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://annualreport2013-14.tui-group.com/magazine/setting-new-standards

http://tuicruises.com/nachhaltigkeit/


TUI AG Hapag-Lloyd Cruises

Hapag-Lloyd Cruises has four ships and is the leading provider of expedition and luxury cruises to the German-speaking market.

On-boardtechnologyandshipmanagement

Hapag-Lloyd Cruises are equipped with modern environmental technology, maintained through regular shipyard stays and enhanced with state- of-the-art technological features. All ships have seawater desalination systems for water treatment, a biological sewage treatment system for wastewater, TBT-free underwater coatings and modern waste incinerators.

Hapag-Lloyd Cruises has chosen the latest in ship technology for the newly-built MS EUROPA 2. It is equipped with a catalyst that reduces nitrogen oxide emissions by almost 95% and partially filters soot.

Responsibility for the management of the ships is assumed by Hapag-Lloyd AG, which is certified in accordance with ISO 14001 (environmental management) and ISO 9001 (quality management).

Efficientcruising

All Hapag-Lloyd Cruises routes are calculated on the basis of an economical average speed which is significantly lower than the ship’s maximum performance. This lowers fuel consumption by approximately one third – currently one of the best and most effective methods of reducing fuel consumption.

Cruisinginthepolarregions

As a member of the International Association of Antarctica Tour Operators (IAATO), Hapag-Lloyd Cruises observes their guidelines on all Arctic and Antarctic voyages. In order to protect the sensitive polar waters, the cruise ships use marine diesel rather than heavy fuel oil. The cruise company also engages customers and crew in saving energy, and use efficient on-board technologies to reduce energy consumption.

OffsettingCO2 emissions

In partnership with the climate protection organisation atmosfair, Hapag-Lloyd Cruises is the first cruise operator to offer its guests the opportunity to offset their cruise-only carbon emissions. Using an online climate calculator, passengers can calculate the greenhouse gas emissions of their cruise in advance and offset them by contributing to a project that provides solar lamps in rural areas of India. A quarter of the offset amount is paid by Hapag-Lloyd Cruises.

www.hl-cruises.com

Hapag-Lloyd’s EUROPA 2 was the first cruise ship awarded EEDI certification (Energy Efficiency Design Index) by Germanischer Lloyd.

Photo credits: Hapag-Lloyd Kreuzfahrten

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.hl-cruises.com/company/environmental-management



TUI AG TUI Hotels & Resorts

TUI owns over 220 hotels, including brands such as RIU, Grecotel and Robinson Club. TUI Hotels & Resorts brands are among the environmental leaders in their destinations and are committed to climate protection.

EcoResort

The EcoResort label, created by TUI Hotels & Resorts in 2005, is a seal of quality for sustainability in holiday hotels and is audited by independent, accredited specialists. It focuses on commitment to sustainable development, and environmental performance must always be evident to the guests.

Commitments made by hotels under this certification includes buying domestic produce (preferably from local farms), working with nature conservation groups, drawing on renewable

energies, conserving natural resources, and offering adventurous excursions into the natural surroundings, a shuttle service, or hotel-based nature trails.

Hotels and clubs in the TUI Hotels & Resorts portfolio can display the EcoResort quality label if they have been ranked among the TUI Environment Champions and hold a recognised international or national environmental standard. As well as sound environmental performance, they must also demonstrate commitment to improving their local socio-economic impact. In 2015, 44 hotels displayed the EcoResort quality seal.

The EcoResort website describes in detail how the TUI hotel brands express their responsibility towards nature and the environment.

www.ecoresort-tui.com

Energy

Many clubs and hotels in the TUI Hotels & Resorts portfolio obtain their energy from renewable sources.

The Robinson Clubs in Spain and Portugal annually generate more than 1,500 megawatt hours with their solar collectors and photovoltaic arrays, providing the energy to heat up to 85 % of the hot water consumed. The Iberotel Palm Garden in Turkey also covers 75% of its hot water consumption as well as the energy for heating the children’s and baby pool with a photovoltaic system. The Robinson Club Agadir uses a solar system with a total area of 900m² – the largest for a hotel in Morocco – to produce hot water and keep the pool complex warm.

Heat production in the Robinson Club Cala Serena in Mallorca is entirely carbon neutral. Three 200-kW biomass boilers generate hot water, heating and pool heating. Thanks to the installation of a wood pellet system, around 220,000 litres of conventional heating oil are saved every year.

The Dorfhotel Sylt has committed to local sustainability by installing an extremely efficient gas-fired combined heat and power (CHP) generator. The power station has the capacity to produce 680 megawatt-hours of heat per year (MWh/a) and 392 MWh/a of electricity, which would be enough to supply power to around 100 households. This has the potential to cut annual emissions of CO

2 by approximately 165 tonnes.

CARBONDIOXIDEEMISSIONSFORTUIHOTELS&RESORTSFY2014

Energy kWh per person per night 27.3 kWh

Carbon dioxide CO2 per person per night 10.8 kg CO

2

Commissioning the new combined heat and power generator at Dorfhotel Sylt

Solar panels on the roof of Robinson Club Agadir

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.ecoresort-tui.com/

The soda making machine at the Robinson Club Maldives significantly reduces plastic bottle waste



Water

Water is one of the most precious resources on the planet. In some countries of the world, including many holiday destinations, demand for water exceeds natural reserves. TUI Hotels & Resorts has implemented several measures to save water and steadily cut water consumption per guest and bednight. Hotel guests are informed about ways of saving water.

Many hotels use endemic plants for their gardens, as they are ideally adjusted to the environmental conditions. Drip irrigation at times of the day when the sun is less intense helps save precious water supplies. Some RIU hotels also use xeriscaping, which involves investigating factors such as climate conditions, light and soil conditions before selecting suitable plants.

Waste

Controlled waste management aims to conserve resources, reduce environmental impacts and costs, and recycle waste into a recovery loop. TUI Hotels & Resorts implement many measures to cut waste volumes. It starts with buying more local or regional produce, as long as it is available in appropriate quantities and quality. This avoids unnecessary food miles and additional packaging. The Grecotels on Crete, for example, obtain fresh food from their own Agreco Farm, which supplies the hotels with organic fruit and vegetables.

There has also been a focus on separating waste materials, increasing reuse, and disposing of waste properly. However, this approach depends in part on local infrastructure for waste disposal and processing.

Plastic waste poses a particular danger at sea, because it can be eaten by marine life or enter the food chain indirectly by being ground down over time. Robinson Club Maldives is avoiding waste from plastic bottles thanks to its sustainable treatment of drinking water. In June 2013, the Club began operating its own soda-making facility. The system uses reverse osmosis to desalinate and purify seawater. By adding minerals and carbonic acid, the freshly generated drinking water is converted into soda water and decanted into one of 7,500 new glass bottles, which are cleaned locally. This cuts out plastic waste altogether, eliminating the transport and disposal of around 400,000 plastic bottles annually.

Castelfalfi

A little medieval village in Tuscany, which lost its last resident in the 1960s and had been largely neglected ever since, is now the nucleus of a tourism project launched by TUI AG. The 1,100-hectare Castelfalfi estate is being carefully restored by TUI in an investment programme worth €250 million, with the involvement of local stakeholders. The renovation project of Castelfalfi has been developed in line with the latest environmental considerations by applying the most sensitive environmental techniques and the

alternative sources of energy. At the heart of the organically farmed estate is the village, with its ancient castle dating back to the Lombards. It’s agricultural and production sites have been restored, and the cultivation of grapes and olives has been expanded. The vineyards, olive groves and arable land now largely reflect the pattern that once dominated this agrarian region. The farming activities are carried out in full respect of the environment and the landscape conservation. Working with the well-known School of Sant’Anna in Pisa since 2014, TUI’s Castelfalfi estate is

conducting a three-year trial around the production of biomass, the aim being to become as self-sufficient in energy as possible. Thanks to the collaboration the existing internal production of natural biomass (that originally comes from the pruning of the self-farmed olive groves, vineyards and woods) was implemented with 3 hectares of poplar tree and common cane. The TUI project has created new jobs in one of the most structurally disadvantaged areas of Tuscany, and it is a shining example of how to revive a cultural and agricultural gem.

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA



TUI AG Group Environmental Management/Sustainable Development Karl-Wiechert-Allee 4 30625 Hanover Germany

Phone +49 (0) 511 566-2201Fax +49 (0) 511 566-2222E-Mail [email protected]

www.tui-sustainability.com

We are grateful to the Education and Science Centre of the Bundesfinanzverwaltung in Münster and Kuramathi Biostation (Rasdhoo Atoll, Maldives) for providing some of the illustrations.

TUI‘s Little Guide to Preserving SpeciesFair Souvenirs and Biodiversity

0320_Leaflet U 54x76_RZ engl2012 2 20.03.12 10:53


Biodiversity

As a global business, we are aware that our activities have an impact on biodiversity at the local, regional and global levels. At the same time, tourism is more dependent than almost any other economic sector on having an intact environment and natural landscape.

TUI has defined biodiversity quality and action targets, which are implemented throughout the Group in the form of specific programmes. Achievements are reviewed on a regular basis, and comprehensive internal and external communication is provided, including on the Group’s website. Through model projects, partnerships and actions of our own, we also hope to influence opinion among the decision-makers in destination countries.

Sea turtles

Since 2011, RIU Hotels & Resorts and the conservation organisation BIOS.CV have engaged in joint projects to protect sea turtles on the Cape Verde island of Boa Vista. RIU provides logistical and financial support to the organisation in all its projects.

In Cape Verde, the egg-laying and nesting season for sea turtles begins in July and continues until mid-October. Boa Vista’s Lacaçao beach, where the Riu Touareg hotel is located, attracts especially large numbers of breeding turtles. Every night, rangers watch over the egg laying, protecting the animals and later moving the nests to a safe place where the eggs can hatch in peace.

To educate tourists and the local population, RIU supports BIOS.CV with its information and awareness-raising campaigns. Weekly events for guests are held at the Riu Touareg, including documentaries about biodiversity in the area and details of the measures that are being taken to protect the environment.

Other projects to protect endangered sea turtles are carried out by the TUI hotel brands Iberotel in Turkey, Grecotel in Greece and Robinson on the Canary Islands, always in partnership with local conservation groups.

Souvenirsandspeciesprotection

TUI has developed a souvenir guide in cooperation with the Federal Agency for Nature Conservation (BfN). In destinations where this kind of information is needed, ‘TUI’s Little Guide to Preserving Species’ briefs TUI customers about illegal souvenirs associated with endangered species and about alternatives that promote the local economy.

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




CostaRica:Abiologicalhotspot

RIU has set up a private conservation area in Costa Rica. The protected site covers 200 hectares of land in the coastal mountain range of Matapalo, close to two of the company’s hotels. The reserve is home to more than 250 plant and animal species – some of them facing extinction – and is therefore extremely valuable for biodiversity in the region. The site is also part of the biological corridor called Chorotega, helping to maintain vital links between the nature conservation areas.

By designating this area as a protected zone, RIU is playing a significant role in preserving the unique flora and fauna of Costa Rica. A detailed management plan has been drawn up, setting out all the measures and activities to be undertaken – including combating illegal hunting and preventing forest fires. To preserve Costa Rica’s natural heritage in the long term, there is close cooperation with the national Ministry of Environment and Energy under the SINAC Programme (Sistema Nacional de Areas de Conservación).


www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA




TUI AG Good causes

It was back in 1995 that TUI companies based in Hanover began collecting for charity, selecting one charitable project to adopt each year. Since then, colleagues in Hanover have raised around €530,000 for these good causes. The projects have ranged from counselling groups via educational day centres and free lunches for disadvantaged children, to associations helping children suffering from cancer. Funds are raised over a period of twelve months through sale events and collections.

In 2014, TUI’s good cause was an outpatient hospice serving children and teenagers in the region around Hanover. AKHD provides emotional and financial support for youngsters confronting a terminal illness, and also for their parents and siblings.

TUI Foundation

In 2000, TUI set up a trust, the TUI Stiftung, to mark the 75th anniversary of Preussag AG, now TUI AG. Since its inception, the trust has funded projects to the tune of nearly €5 million, and it is endowed with capital of €12.5 million. The purpose of the trust is to promote education and training for children and young people, culture and the arts. The TUI Stiftung is currently amending its profile, and from 2015 has started to run projects of its own in the field of education and culture.

www.tui-stiftung.de www.tuigroup.com

www.tuigroup.com

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS

DATA


http://www.tui-stiftung.de

http://www.tuigroup.com/en/doris-schr%C3%B6der-k%C3%B6pf-opens-up-tui-foundation%E2%80%99s-dialogue-about-europe


Designed and produced by Boone Design and Magenta Digital

Contact

Jane Ashton Director of Sustainability

TUI Group Crawley Business Quarter Fleming Way Crawley West Sussex RH10 9QL

Telephone: +44 (0)1293 645 700

[email protected]

www.tuigroup.com

For more information about sustainability at TUI Group visit:

www.tuigroup.com/sustainability

OVERVIEW


DESTINATIONS

CARBON

COLLEAGUES

CUSTOMERS DATA


http://www.boonedesign.com

http://www.magentadigital.co.uk

mailto:[email protected]


http://www.tuigroup.com/sustainability

sustainable holidays report 2014 - tui group...sustainable holidays report 2014 welcome to the tui...

Documents