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Sustainability Report 2009/2010 Guests in Paradise


Milestones 20 Years of Commitment to the Environment and Sustainability

1990

1995

2000

2005

2010

1990

TUI is the first mainstream tour operator to set up an environmental management unit

1990

TUI launches destination monitoring to observe the state of the local environment

1991

TUI awards its first International Environment Award

1992

TUI’s first Environment Forum at the ITB fair in Berlin

1995

Active contribution to the Charter for Sustainable Tourism in Lanzarote

1995

The Annual Report starts to include environmental reporting

1995

TUI Sponsorship adopts its first charitable project in Hanover

1996

TUI selects the first Environment Champions

2000

TUI co-founds the Tour Operators’ Initiative for Sustainable Tourism Development

2000

The Preussag Foundation (now: TUI Foundation) is established

2001

TUI AG co-founds econsense

2003

Contribution to UNWTO’s Djerba Declaration on Tourism and Climate Change

2003

TUI Deutschland receives its ISO 14001 certificate

2004

TUI AG is listed on FTSE4Good

2004

TUI AG publishes the first Group Environment Report

2005

TUI AG receives its ISO 14001 certificate

2006

First involvement in the Carbon Disclosure Project (CDP)

2006

TUI AG joins the Dow Jones Sustainability Index

2006

First EcoResort award for a Group hotel brand

2007

TUI AG publishes the first Group Sustainability Report

2007

TUI AG wins first place in the Good Company Ranking environment category

2007/08

Group-wide Year of the Dolphin campaign with the UNEP Bonn Convention

2007

Contribution to UNWTO’s Davos Declaration on Tourism and Climate Change

2008

TUI AG signs the Diversity Charter

2008

TUI AG joins the Business & Biodiversity Initiative set up by the German Environment Ministry

2009

TUI AG co-founds the sustainability initiative Futouris


Sectors

TUI has built a robust position as a tourism group. The structure includes TUI Travel – one of the world’s largest tourism companies – alongside Europe’s leading holiday hotel provider TUI Hotels & Resorts, and cruises for the German-speaking luxury and premium segment. TUI Travel TUI Travel was created by the merger of TUI Group’s retail section, tour operating business, airlines and incoming activities with the British company First Choice Holidays PLC. TUI Travel services over 30 million customers in 27 source markets with a portfolio of more than 200 products and brands. Its business is structured into four sectors: Mainstream, Specialist & Emerging Markets, Activity and Accomodation & Destinations. TUI Travel offers a broad choice of leisure travel ranging from package tours to individual niche products like chartering yachts, expeditions and student trips. TUI AG has a majority shareholding in TUI Travel. TUI Hotels & Resorts TUI Hotels & Resorts manages the TUI Group’s hotel companies and is Europe’s largest holiday hotel provider. Its business portfolio covers around 240 hotels with more than 150,000 beds. The hotels of the various brands are situated at premium locations in attractive holiday regions and offer guests a diverse range of hotel concepts with the highest levels of service and quality, and with exceptional environmental standards.

Cruises Hapag-Lloyd Cruises is the leading provider of discovery and luxury cruises in the German-speaking countries. The fleet comprises the cruise liners Europa, Hanseatic, Bremen and Columbus. In 2008, TUI Cruises was formed, paving the way for TUI AG to set its mark in the German volume market for premium cruises. With the liner Mein Schiff (which translates as ‘My Ship’) operations started in spring 2009.


About us TUI is Europe’s leading travel group

Putting a smile on people‘s faces – this is our mission. And this is what we work for – 65,000 employees around the world work day after day to create unforgettable holiday experiences for our over 30 million customers. As an integrated travel group, our brands offer the complete range of services associated with holiday and travel. Our three business sectors TUI Travel, TUI Hotels & Resorts and Cruises form the World of TUI.

What drives us Our mission Putting a smile on people‘s faces Our values Opening doors An open door is a welcome. An invitation to discover new things. Gaining new experiences. Experiencing new perspectives. Going beyond We constantly do our best. But we want to go even further. We seek to give our customers that little extra, the unexpected, the surprising. Going beyond the ordinary and improving day after day – this is what drives us. Enjoying life Success is the result of hard work. But what would life be without enjoyment? Everyone deserves to enjoy life. Our services are designed to help achieve this goal. Creating values Sustainable economic, ecological and social action is an indispensable element of TUI’s corporate culture. We seek to create value for our customers, investors and employees.


Table of Contents

1 2 3

4

5 6

Forewords

8 10 11 12 13

Responsible Governance Corporate Governance Code of Conduct Compliance Risk Management Key Performance Indicators

22 23 26 27 31

Sustainable Development Sustainability Aspects Organisation Internal and External Reporting Cooperation Schemes and Dialogue Sustainability Rating

34 36 42 44 50 53

Environment Climate Strategy Climate Action Biodiversity Strategy Biodiversity Action Resource Efficiency Certifications

56 57 59 60 61 62 63

Our People Training HR Development and Staff Motivation Health and Safety at the Workplace Work-life Balance Diversity Co-determination Innovation and Ideas

66 69 71 77

Society Committed to Human Rights Corporate Citizenship Globally active – Globally engaged Futouris e. V.

Product Responsibility and Consumers 80 Sustainable Product Development 85 Consumer Information 88 Safety and Crisis Management GRI Index Contact


Dear Reader,

As a global player aspiring to market and brand leadership in the tourism sector, TUI feels a particular commitment to the principle of sustainability.

Dr Michael Frenzel, Chairman of the TUI AG Executive Board

Our springboard for sustainability-oriented management is the belief that we must place our activity within the context of an overall social perspective and integrate responsibility into our core business as a corporate value driver. The principal challenge to the Group, primed by the various expectations of our stakeholders, is to resolve genuine and perceived conflicts between economic, ecological and social objectives in a manner that creates value. For us, the long-term benefits to be gained from integrating and networking these three fields amount to more than the sum of the parts. This applies not only to our product and service portfolio, but also to our performance at company sites and tourist destinations around the world. To generate innovate responses, we need motivated employees, positive partnerships, a strong will to shape our own environment, and most of all a long-term view of our day-to-day operations.

For the fourth time in a row, TUI has scored top marks in the Dow Jones Sustainability World Index in the categories climate strategy, stakeholder engagement and brand management. We are delighted to see that our efforts are being recognised in this way. It spurs us on to keep improving our sustainability strategy and to continue playing a decisive role in setting the standards for solution-oriented products and services. This Sustainability Report sets out to make that social “investment� visible and reflect upon the socio-ecological consequences of our activities. Even at a time when the economic environment is difficult, we intend to press ahead along our chosen road of commercial operation geared to responsibility. We see this as an opportunity to hone our social profile and ensure our future viability. Let me invite you to accompany us further down this road to sustainability. Measure us against our achievements and support us with your suggestions. We look forward to dialogue with you!

Yours, Michael Frenzel

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TUI Sustainability Report 2009/2010


This TUI Sustainability Report bears the title “Guests in Paradise”. The first association this sparks in your mind might be our clients, who want to spend the best weeks of their year in first-class hotels surrounded by beautiful landscape and cultural authenticity. But TUI itself, as a company, also sees itself as a guest in Paradise. Ambience, culture, landscape and natural resources are not capital assets in our own inventory, but precious and above all limited resources whose intelligent use provides the basis for our core business. That is why we wish to make sure that the tourism services we provide in our destinations are not detached from ecological and social conditions in the receiving country, and why we see ourselves as an integral part of a networked economy that can sustain its future and reflects the specific character of each region. Creating decent local working conditions, preserving the dynamics of self-determined culture and ensuring natural habitats are all major challenges in this, and we want to adopt appropriate strategies to tackle them. Our commitment has already become a tradition, and in 2010 we shall be celebrating an anniversary that – for the tourism industry – is itself impressive: 20 years of environmental and sustainability management at TUI.

A good guest behaves impeccably. We, too, have refocused the guidelines for our work in the TUI Code of Conduct. Legality, social responsibility, openness, tolerance and encouragement for innovation are the fundamental principles which clearly define the actions of every Group employee. Observing human rights, respecting the values underlying different cultures, fair competition and shunning corruption are the solid cornerstones of our creed. We openly pledge to pursue the ten principles of the UN Global Compact, seeking to implement and disseminate them together within our sphere of influence. Our reliable network of committed partners in many holiday regions will support us in this undertaking.

Dr Peter Engelen, TUI AG Executive Board Member Human Resources, Legal Affairs and Sustainable Development

Finally, we firmly believe that responsible action is not merely a duty on the part of a courteous guest, but above all a key factor in sustainable corporate success. A good guest arrives on the heels of a good reputation. A good guest attracts trust and is always welcome. A good guest eventually becomes a valued partner. We want to be good guests.

Yours, Peter Engelen

TUI Sustainability Report 2009/2010

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1

Responsible Governance


Transparency TUI is committed to responsible and transparent corporate management geared to the long-term success of the enterprise. Our behaviour towards business partners is professional, transparent, respectful and fair. This is the case both for internal cooperation as well as for business transactions with external partners.

TUI Sustainability Report 2009/2010

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1

Corporate Governance

Good and responsible corporate governance The actions of TUI AG’s management and oversight bodies are determined by the principles of good and responsible corporate governance. TUI has consistently based its corporate governance on the recommendations and suggestions of the German Corporate Governance Code. The most recent version of the Code is dated 18 June 2009. It contains new elements, in particular concerning remuneration issues. TUI AG has adopted and implemented all amendments to the Code. The Executive Board and the Supervisory Board discussed corporate governance issues several times in the short financial year 2009 and jointly submitted an updated declaration of compliance for 2009 on 28 October 2009, pursuant to section 161 of the German Stock Corporation Act. The declaration was made permanently accessible to the general public on TUI AG’s website. The current and all previous declarations of compliance have been made permanently available on the internet at www. tui-group.com

Declaration of compliance for 2009 “In accordance with section 161 of the German Stock Corporation Act, the Executive Board and Supervisory Board of TUI AG hereby declare: The recommendations of the Government Commission on the German Corporate Governance Code in the version of 6 June 2008, as published by the Federal Ministry of Justice in the official section of the electronic Federal Gazette on 8 August 2008, have been and are fully complied with. TUI AG will additionally fully comply with the recommendations in the currently valid version of 18 June 2009, as published by the Federal Ministry of Justice on 5 August 2009. In addition, TUI AG also complies with the suggestions set out in the Code.” Working methods of the Executive Board and Supervisory Board. TUI AG is a company under German law, which also forms the basis of the German Corporate Governance Code. One of the fundamental principles of German stock corporation law is the dual management system involving two bodies, the Executive Board and the Supervisory Board, each of which is endowed with independent competences.

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TUI Sustainability Report 2009/2010

TUI AG’s Executive Board and Supervisory Board cooperate closely and in a spirit of trust in managing and overseeing the Company. The Supervisory Board advises and oversees the Executive Board in the management of the Company. It is involved in strategic and planning decisions and all decisions of fundamental importance to the Company. In accordance with the terms of reference, decisions taken by the Executive Board on major transactions such as the annual budget, major acquisitions or divestments require the approval of the Supervisory Board. The chairman of the Supervisory Board coordinates the work in the Supervisory Board, chairs its meetings and externally represents the concerns of the body. The Executive Board provides the Supervisory Board with comprehensive up-to-date information at regular meetings and in writing about the budget, the development of business and the situation of the Group, including risk management, and compliance. An extraordinary Supervisory Board meeting may be convened if required when events of particular relevance occur. The Supervisory Board has adopted terms of reference governing its work. In the run-up to the Supervisory Board meetings, the representatives of shareholders and employees meet separately, where necessary. TUI AG has taken out a D&O insurance policy with an appropriate deductible for all members of the Executive Board and Supervisory Board. As of calendar year 2010, a deductible of 10 % of the damage or one and a half times the fixed annual remuneration has been agreed. Composition of the Supervisory Board. In accordance with the Articles of Association, TUI AG’s Supervisory Board comprises twenty members, with ten representatives elected by the shareholders and ten by the employees for an identical period of office. In accordance with the new recommendations of the German Corporate Governance Code, the shareholders’ representatives were elected individually in the last elections to the Supervisory Board at the Annual General Meeting


on 10 May 2006. Factors taken into account in nominating candidates for election to the Supervisory Board are the knowledge, skills and expertise required to implement the tasks as well as diversity. The Supervisory Board does not comprise any former Executive Board members. It comprises a sufficient number of independent members not maintaining any personal or business relationship with the Company or its Executive Board. The Supervisory Board has been elected for a period of five years that will expire at the end of the 2011 ordinary Annual General Meeting. Committees of the Supervisory Board. The Supervisory Board has established three committees from among its members: the Presiding Committee, the Audit Committee and the Nomination Committee, which prepare and complement its work. The Presiding and Audit Committee have six members each, with an equal number of shareholder and employee representatives. The chairman of the Audit Committee is independent and, based on practical professional experience, has special knowledge and experience in the application of accounting principles and internal control methods. The Nomination Committee consists exclusively of shareholder representatives in accordance with the German Corporate Governance Code. Its task is to suggest suitable candidates to the Supervisory Board for its suggestions to the Annual General Meeting. There is no plan at present to establish any further committees. The Executive and Supervisory Board members are obliged to act in TUI AG’s best interests. In the completed financial year, there were no conflicts of interest requiring immediate disclosure to the Supervisory Board. None of the Executive Board members of TUI AG sat on more than three Supervisory Boards of listed nonGroup companies.

Risk management Good corporate governance entails the responsible handling of commercial risks. The Executive Board of TUI AG and the management of the TUI Group use comprehensive general and company-specific reporting and monitoring systems to identify, assess and manage these risks. These systems are continually developed, adjusted to match changes in overall conditions and reviewed by the auditors. The Executive Board regularly informs the Supervisory Board about existing risks and the development of these risks. The Audit Committee deals in particular with monitoring the accounting process, including reporting, the efficiency of the internal control system, risk management and the internal auditing system, compliance and audit of the annual financial statements. More detailed information about risk management in the TUI Group is presented in the Risk Report. It also contains the report on the accounting-related internal control and risk management system required in accordance with the German Accounting Modernisation Act. Transparency TUI provides immediate, regular and up-to-date information about the Group’s economic situation and new developments to capital market participants and the interested public. The annual report, the half-year financial report and the interim reports for the quarters are published within the applicable timeframes. The Company publishes press releases and ad hoc announcements, if required, on topical events and any new developments. All information is published simultaneously in German and English and is available in print as well as by appropriate electronic media such as e-mail or the internet.

TUI Sustainability Report 2009/2010

Moreover, the company website provides comprehensive information on the TUI Group and the TUI share www.tui-group.com

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1

Code of Conduct

Exemplary behaviour Sustainable economic, ecological and social activity is an indispensable part of the TUI corporate culture. This also includes integrity in dealings with employees, business partners, shareholders and the general public – and this is best achieved by exemplary behaviour. As a services group it is incumbent on us to win and maintain the trust of our customers. We want to be regarded as being credible, trustworthy and reliable and we therefore act accordingly. A Code of Conduct has been drawn up for the entire Group to ensure consistent standards of exemplary action and behaviour. It is intended to set out guiding principles for each Group employee to follow, i.e. the Executive Board, managers and all Group employees. The Code of Conduct is not only based on applicable laws and policies but also refers to our corporate vision, core competences and values. It thus sets minimum standards and indicates how all employees can work together in implementing these standards. Strict legality principle TUI’s Code of Conduct focuses on five areas. The first area addresses the fundamental values: legality, social and environmental responsibility, openness, tolerance and encouragement for innovation. They determine the actions of each individual within the Group and demonstrate how we pursue our objectives. The second area relates to national and cultural rules. The top priority for our Group is to respect the law and recognised values of different cultures. The third area of the Code of Conduct is a clear commitment to respect and honesty: TUI commits to observing human rights. We respect the dignity, privacy and personal rights of every individual. Our corporate culture is characterised by mutual respect, team spirit, openness and professionalism. The fourth area relates to our business relationships with other companies and customers – the fundamental goals of the TUI Group include fair competition and the prevention of corruption at all levels. And last but not least, we accept our overall social and ecological responsibility. It is a key factor in the sustainable success of a tourism company. That is why we engage 10

TUI Sustainability Report 2009/2010

in activities to promote the economic, ecological and social development of our Company sites and in our destinations. UN Global Compact Apart from the fundamental values of our Code of Conduct, we embrace the ten principles of the United Nations’ Global Compact and intend to roll them out and implement them within our sphere of influence.


Compliance

Law, in-house rules and voluntary commitments Compliance denotes securing the observance of legislation, the Articles of Association, in-house rules and voluntary commitments. It forms a key element of TUI’s good corporate governance. Compliance issues include e. g. the prevention of corruption and worldwide anticorruption measures, strict observance of applicable health and safety standards for our employees and customers, securing the legal requirements on product liability, Group-wide observance of environmental provisions and many other aspects of the law. TUI’s Code of Conduct. The centrepiece of our compliance management is the TUI Code of Conduct, which is based on applicable legislation, internal rules and policies but also enshrines our corporate vision, our core competences and our values. The purpose of the Code is to assist our employees in mastering the ethical and legal challenges arising in their everyday work and provide orientation in conflict situations. By means of correct and ethical behaviour we also help secure our future economic success. In the interest of all stakeholders and our Company, we will investigate any infringements and remove their causes. This also includes the consis- tent persecution of misbehaviour in the framework of applicable national provisions.

Organisation. Our Compliance function helps to communicate the above-mentioned values into our Group structure and anchor them in a sustainable manner. It ensures Group-wide implementation of our compliance programme. The Executive Board of TUI AG has appointed the Board member in charge of HR, Legal Affairs and Sustainable Development as Chief Compliance Officer. In this function, he regularly reports any material incidents or infringements of compliance provisions to the Board. Whistleblower system. In order to reflect the international character of our Group, a worldwide whistleblower system is being implemented. It enables all Group employees to report any infringements on an anonymous basis. Any incidents reported are immediately analysed by an evaluation committee specifically formed for that purpose, which initiates any measures required. Training, both attendance- and web-based, is offered to managers and employees to teach them the corporate values listed in the Code of Conduct. The central Compliance Department supports implementation of the Code of Conduct within the Group and answers questions. It aims to play a preventive role in raising our employees’ awareness and achieving competence and confidence within the TUI Group.

Sector

Basis/performance indicator

Target for 2011

TUI Group

Implementation of the Code of Conduct and installation of a communication and training system

Complete Group-wide TUI Code of Conduct training for all employees

TUI Sustainability Report 2009/2010

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1

Risk Management

Identifying, monitoring and controlling risk The TUI Group is a global player operating worldwide in particular in Tourism, its core business. Depending on the type of business, Tourism operations and financial exposure in Container Shipping entail various inherent risks. Risks may arise from the Group’s own entrepreneurial action or external factors. In order to identify and actively control these risks, the Group has introduced Group-wide risk management systems. Risk policy. TUI’s risk policy is designed to steadily and persistently enhance the Group’s corporate value, achieve its medium-term financial goals and secure the Company’s ongoing existence in the long term. It is thus an integral component of the Group’s corporate policy. For the complete Risk Report of the TUI Group, see the TUI AG Annual Report 2009

Risk management. In order to meet its overall responsibility within the Group, TUI AG’s Executive Board has set out policies incorporating the essential elements of the risk management system. They are applicable to all Group companies. The Board has also installed monitoring and control systems to regularly measure, assess and manage business development and the related risks. Responsibility for the early identification, reporting and handling of business risks lies with the management of the respective companies, with control functions over each tier exercised by the management level above. The Executive Board and operative management employ multi-stage integrated reporting systems for risk management purposes. Within the planning and auditing system, deviations of actual from projected business developments are analysed on a monthly basis so that risks that might jeopardise the Company’s performance are quickly recognised.

In addition, special independently organised reporting systems have been introduced for the early identification of risks threatening the 12

TUI Sustainability Report 2009/2010

existence of the Company. These risks are reported through a separate system, organised with its own distinct structure alongside operational risk management. Early risk identification aims to provide reports, both regular and case-by-case, in order to identify potential risks within the Group companies, assess these risks with the aid of uniform parameters and summarise them in an overall Group-wide system. Environmental risks. In the short financial year 2009, both current companies of the TUI Group and companies already sold were involved in the use, processing, extraction, storage or transport of materials assessed as hazardous to the environment or human health. TUI takes preventive measures to counter environmental risks arising from current business transactions and has taken out insurance policies to cover certain environmental risks. Where environmental risks have not passed to the purchaser in divestment transactions, TUI has built appropriate provisions in the balance sheet to cover any potential claims.


Key Performance Indicators

Group economic indicators The TUI Group and its operating companies are active in the tourism sector. Its core segments include TUI Travel, TUI Hotels & Resorts and Cruises. Following the sale of Hapag-Lloyd AG to a Hamburg-based consor- tium, TUI holds a 43.33 % stake in Hapag-Lloyd, consolidated at equity. The Annual General Meeting on 13 May 2009 decided to change TUI AG’s financial year from the calendar year to the tourism year (1 October to 30 September). As a result, the short financial year 2009 only has nine months. In order to enhance comparability, the key

performance indicators and headcount numbers for the short financial year 2009 are presented alongside the figures for the comparative period in 2008 (1 January to 30 September) and the balance sheet figures as per 30 September 2008. By contrast, comparing the figures for the short financial year with those for the full financial year 2008 is of limited value. A different system was used for the environmental indicators, facilitating a year-on-year comparison with the 12-month period in 2008.

Development of divisional turnover Divisional turnover

SFY 2009

9M 2008

Var. [%]

2008

Tourism

€m

13,054.3

15,136.2

-13.8

18,585.8

TUI Travel

€m

12,636.1

14,690.6

-14.0

18,015.1

TUI Hotels & Resorts

€m

276.2

290.1

-4.8

370.7

Cruises

€m

142.0

155.5

-8.7

200.0

Central Operations

€m

49.3

64.8

-23.9

85.8

Continuing Operations

€m

13,103.6

15,201.0

-13.8

18,671.6

SFY 2009

9M 2008

Var. [%]

2008 620.5

Development of divisional earnings Underlying divisional EBITA Tourism

€m

695.6

664.1

+4.7

TUI Travel

€m

571.2

520.0

+9.8

453.7

TUI Hotels & Resorts

€m

123.1

132.9

-7.4

160.0

Cruises

€m

1.3

11.2

-88.4

6.8

Central Operations

€m

-39.0

0.4

n/a

-54.4

Continuing Operations

€m

656.6

664.5

-1.2

566.1

Divisional EBITA

SFY 2009

9M 2008

Var. [%]

2008

Tourism

€m

274.4

177.3

+54.8

127.2

TUI Travel

€m

150.0

33.2

+351.8

-35.8

TUI Hotels & Resorts

€m

123.1

132.9

-7.4

156.2

Cruises

€m

1.3

11.2

-88.4

6.8

Central Operations

€m

-39.0

0.4

n/a

-52.6

Continuing Operations

€m

235.4

177.7

+32.5

74.6

TUI Sustainability Report 2009/2010

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1

Net profit for the year

€m

Earnings per share

SFY 2009

9M 2008

Var. [%]

2008 restated

400.7

44.9

+792.4

-141.9

1.25

0.07

n/a

-0.57

9 ,116.0

7,903.9

+15.3

7,344.7

Asset structure Non-current assets

€m

Current assets

€m

4 ,426.2

9 ,847.8

-55.1

9 ,358.1

Total assets

€m

13,542.2

17 ,751.7

-23.7

16 ,702.8

Equity and liabilities

€m

2,380,0

2 ,918.3

-18.4

2 ,242.5

Non-current liabilities

€m

5 ,035.3

6 ,018.0

-16.3

5 ,796.2

Current liabilities

€m

6 ,126.9

8 ,815.4

-30.5

8 ,664.1

Total equity and liabilities

€m

13 ,542.2

17 ,751.7

-23.7

16 ,702.8

Equity ratio

%

17.6

16.4

+1.1*

13.4

Cash flow from operating activities

€m

1,134.6

2 ,058.9

-44.9

945.8

Capital expenditure

€m

340.4

810.1

-58.0

952.4

Net debt

€m

2,329.9

2 ,792.3

- 16.6

4 082.8

Capital structure

Differences may result from rounding * in percentage points SFY: short financial year 2009 (1 Jan – 30 Sep 2009) 9M: comparative 9-month period in 2008 (1 Jan –30 Sep 2008)

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TUI Sustainability Report 2009/2010


Group employee indicators In the short financial year 2009, the TUI Group’s headcount decreased to 69,536. This decline was primarily due to the sale of Hapag-Lloyd AG.

yed the largest proportion of personnel at 93 %, up from 84 % in 2008. As before, around 1 % of employees worked for Central Operations. Discontinued Operations accounted for 7 % after 15 % in the previous year. This change in the structure of the Group headcount resulted from the sale of Container Shipping.

Changes in headcount. At the balance sheet date, the TUI Group’s worldwide headcount was 69,536, around 12 % down year-on-year. The Tourism Division emploEmployees by division 30 Sep 2009

30 Sep 2008

Var. [%]

31 Dec 2008

Tourism

64 ,336

66,294

-3.0

59 ,706

TUI Travel

50 ,285

52 ,920

-5.0

48 ,508

TUI Hotels & Resorts

13,832

13,167

+5.1

10 ,989

Cruises*

219

207

+5.8

209

Central Operations¹)

675

762

-11.4

665

65,011

67,056

-3.0

60 ,371

4 ,525

12,136

-62.7

9 ,883

69,536

79,192

-12.2

70 ,254

Continuing Operations Discontinued Operations Total

* excl. TUI Travel cruise companies ¹) of which Corporate Centre: 200 employees as at 30 Sep 2009; 257 employees as at 30 Sep 2008

At the end of the short financial year, the headcount in Tourism totalled 64,336, down 3% year-on-year. The individual sectors recorded different trends. The headcount in TUI Travel fell by 5 % on the first nine months in 2008 to 50,285. The Mainstream Sector had 35,353 employees, 5 % down year-on-year. This decline was mainly attributable to synergies in the UK and further integration. The Specialist & Emerging Markets Sector recorded a decline in headcount of around 34 % to 1,581 due to ongoing restructuring measures. The Activity Sector reported a decrease in headcount to 4,212, down around 6 % year-on-year due to the clo- sure of a business segment and ongoing restructuring measures. Accommodation & Destinations did not report any major changes.

The headcount in TUI Hotels & Resorts rose by 5 % year-on-year to 13,832. This headcount growth was attributable to capacity increases driven by the opening of new hotels and shifts to full-year operation. The Cruises Sector reported a slight increase in headcount of around 6 % to 219, above all due to the assumption of new functions in accounts receivable and accounts payable accounting and the integration of a call centre.

TUI Sustainability Report 2009/2010

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1 Employees by region

Germany UK/Ireland

30 Sep 2009

30 Sep 2008

Var. [%]

31 Dec 2008

9 ,562

12 ,549

-23.8

11,313

19 ,409

19,775

-1.9

19 ,311

Nordics

1,717

1,940

-11.5

2 ,070

France/Benelux-countries

7,245

9,284

-22.0

8, 063

Spain

10 ,168

11,848

-14.2

8 ,224

Rest of Europe

9,239

9 ,487

-2.6

5 ,608

America

6 ,815

7, 572

-10.0

8,434

Rest of World

5,381

6 ,737

-20.1

7,231

69,536

79,192

-12.2

70 ,254

Total

Central Operations recorded a year-on-year decline in headcount of around 11% to 675 as at the end of the short financial year, primarily resulting from the fall in the number of employees working for the Corporate Centre by around 22 % to 200 due to contractual reallocations. The headcount in Discontinued Operations of 12,136 declined by 63 % to 4,525 at balance sheet date. This decline was attributable to the divestment of Container Shipping and the associated loss of 7,682 employees. The headcount in Magic Life grew by 2 % year-on-year due to capacity adjustments.

Personnel by region (in %)

UK/Ireland 28

Spain 15

Germany 14

Rest of Europe 13

France/Benelux 10

International headcount. The number of employees working in Germany declined by 24 % to 9,562, above all due to the sale of Hapag-Lloyd AG. Accordingly, the Group’s headcount in Europe fell by 12 % to 57,340 or 82 % of the Group’s overall headcount. The number of employees working for Group companies outside Europe declined by 15 % to 12,196. They accounted for 18 % of the overall headcount, the same proportion as in 2008.

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TUI Sustainability Report 2009/2010

Nordic countries

2

America 10 Rest of world

8

As of 30 September 2009


Personnel costs. Personnel costs of Continuing Operations decreased by 12 % to € 1,550m in the period under review. This was attributable to changes in the group of consolidated companies as well as cost savings

due to synergies achieved by the integration of the former First Choice and the TUI Group. The proportion of employees in training in Germany fell to 5.3 % due to the divestment of Container Shipping.

Personnel costs SFY 2009

9M 2008

Var. [%]

2008 restated

Wages and salaries

€m

1,288,7

1,481,0

-13.0

1,935.9

Social security contributions

€m

261.1

283.2

-7.8

355.7

Total

€m

1,549.8

1,764.2

-12.2

2 ,291.6

Other staff indicators 30 Sep 2009

30 Sep 2008

Var. [%]

%

5.3

6.7

-1.4*

workforce

%

65.6

66.9

-1.3*

part-time

%

15.1

14.3

+0.8*

management

%

41.8

50.1

-8.3*

executive staff

%

44.3

26.1

+18.2*

Staff in training (German TUI companies) Proportion of female employees (TUI Travel)

* in percentage points

Environmental performance of the TUI Group The TUI Group uses the collection and processing of data to obtain meaningful indicators as a key tool in monitoring performance. Before effective action can be implemented, the extent of the environmental impact first needs to be measured and determined. For this reason, we have operated a Group-wide monitoring system for many years. With a view to selectively identifying potential and implementing measures, our annual monitoring is carried out in the emission-intensive areas: airlines, cruises and hotels. An overview of the key environmental indicators in Tourism is presented below. To permit comparison between the short financial year 2009 and previous years, the environmental indicators for 2009 are those for the pro forma financial year (1 October 2008 to 30 September 2009 [PF]). In line with the G3 guidelines of the Global Reporting Initiative, the calculation of indicators was based on the principles of materiality, stakeholder

context, completeness, balance, comparability, accuracy, timeliness, clarity and reliability.

“In the framework of our recurring audit, we have checked the plausibility of the TUI Group’s environmental indicators. To this end, we had access to all relevant documents and obtained explanations on the documents. The method used to determine the indicators is comprehensible and well-documented. The indicators determined appear plausible. The continuous collection and updating of the environmental indicators is also exemplary.“ Arqum – Consulting corporation for occupational safety, quality, and environmental management

TUI Sustainability Report 2009/2010

17


1 Energy consumption within the TUI Group. Energy consumption in the TUI Group’s continuing operations declined by 4.2 % as against 2008 in the pro forma year 2009. This was primarily attributable to lower fuel consumption by the airlines. Indirect energy consumption remained almost constant. Unit

2009 [PF]

2008

85,289

89,418

Direct CO² emissions (2009 [PF]) Cruises* 449,233 tonnes (7 %) TUI hotel companies* 115,347 tonnes (2 %)

TUI Airlines

TJ

Cruises*

TJ

6,365

6,388

TUI hotel companies*

TJ

3,608

3,638

Total

TJ

95,262

99,444

Direct energy consumption

TJ

92,948

97,126

Total: 6,343,292 t

Indirect energy consumption

TJ

2,314

2,318

* incl. TUI Travel companies

Total

TJ

95,262

99,444

TUI Airlines 5,778,712 tonnes (91 %)

* incl. TUI Travel companies

Total emissions by the TUI Group. In pro forma year 2009, carbon emissions by the emission-intensive areas within the TUI Group totalled 6,343,292 tonnes. This corresponds to a decline of 4.4 % on 2008. The bulk of CO² emissions was caused by the business operations of TUI airlines. Specific CO² emissions of TUI Airlines. Specific CO² emissions show how much carbon dioxide was emitted per 100 passenger kilometres [kg/100 pkm]. The increase from 7.78 kg/100 pkm in 2008 to 7.81kg/100 pkm in 2009 [PF] results from the change in the fleet portfolio and a slight decline in the total number of flights. Unit TUI Airlines

kg/100 pkm

2009 [PF]

2008

7.81

7.78

At fuel consumption of 3.03 litres of aircraft fuel per 100 pkm TUI Airlines continue to be among Europe’s most efficient airlines.

18

TUI Sustainability Report 2009/2010

Specific CO² emissions by Cruises *. Specific CO² emissions by Cruises rose to 80.55 kg per 100 passenger nautical miles [pnm]. This resulted from changes in the fleet portfolio such as the commissioning of the “Mein Schiff“ cruiser by TUI Cruises. Unit Cruises*

kg/100 pnm

2009 [PF]

2008

80.55

76.75

* incl. TUI Travel cruise companies

Specific CO² emissions by hotel operations*. In the pro forma year 2009 specific CO² emissions were 12.28 kg per bednight. The slight year-on-year increase on 2008 was attributable to higher heating and electricity consumption. Unit TUI hotel companies*

kg/bednight

* incl. TUI Travel hotel companies

2009 [PF]

2008

12.28

12.00


Other emissions within the TUI Group. Apart from carbon dioxide, other emissions caused by the use of fossil fuels are also monitored. Indicators are used to quantify emissions of nitrogen oxides, sulphur oxides, carbon monoxide and hydrocarbons. Emissions of other greenhouse gases are insignificant. TUI Airlines Nitrogen oxides (NOX)

Unit

absolute

t

specific

g/100 pkm

Carbon monoxides (CO)

Unit

absolute

t

specific

g/100 pkm

Hydrocarbons (HC)

Unit

absolute specific

2009 [PF]

2008

37,752

40 885

51.01

52,39

2009 [PF]

2008

1,869

1,981

2.53

2.54

2009 [PF]

2008

t

188

231

g/100 pkm

0.25

0.30

Cruises* Nitrogen oxides (NOX)

Unit

absolute

t

specific

kg/100 pnm

Sulphur oxides (SOX)

Unit

absolute

t

specific

kg/100 pnm

The specific water consumption per bednight has risen continually in recent years. Reasons differ regionally and include stronger irrigation of gardens due to less precipitation in the holiday destinations, climate change and changes in bednight numbers. Waste volumes have remained relatively constant over recent years and amounted to 1.7 kg per bednight in 2009. Operative indicators Operative indicators are the business indicators of relevance to the environment. The number of aircraft, ships and hotels relates to the end of the respective financial year at TUI AG. 2009 [PF]

2008

As at 30 Sep 2009

As at 31 Dec 2008

155

151

TUI Airlines Aircraft

Number

Average age

Years

9.5

9.8

Flight cycles

`000

161.5

175.9

2009 [PF]

2008

8,213

8,677

1.47

1.48

2009 [PF]

2008

Ships

Number

5,259

5,294

Average age

Years

0.94

0.90

Beds

Cruises* 19

19

23.6

23.3

Number

11,896

11,811

Hotels

Number

243

238

Beds

Number

153 ,537

149 ,424

* incl. TUI Travel cruise companies

Consumption of resources. Besides emissions, water consumption and waste volumes are also continually analysed.

TUI Hotels & Resorts

TUI hotel companies* Unit Water consumption Waste volume

l/bednight kg/bednight

2009 [PF]

2008

497.0

468.5

1.7

1.6

TUI Travel hotel companies Hotels

Number

44

43

Beds

Number

21,060

20,812

* incl. TUI Travel cruise companies * incl. TUI Travel hotel companies

TUI Sustainability Report 2009/2010

19


2

Sustainable Development


Dialogue TUI’s understanding of sustainable development is to achieve a long-term permanent balance between economic, ecological, social, societal and cultural requirements. We are actively engaged in our European source markets and our tourism destinations. We are committed to transparency, cooperation and open dialogue with all our stakeholders in anything we do.

TUI Sustainability Report 2009/2010

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2

Sustainability Aspects

Dialogue with our stakeholders Successful sustainability management requires a fundamental understanding of the key interaction between ecological and social systems. This forms the basis for TUI’s measures for the continual improvement of its environmental and sustainability performance at its locations and destinations. In order to balance the internal and external perspectives, a stakeholder survey was carried out in 2009. It dealt with the sustainability aspects of relevance to TUI and TUI’s perceived commitment to these aspects. The outcome of this survey served to identify further potential for sustainable action.

sustainability aspects for TUI and assessed the extent to which TUI already addresses these aspects. Based on statistical methods, sustainability aspects are closely interdependent.¹ Aspects considered to be of high (low) relevance are correlated with a high (low) level of intensity with which TUI addresses them. “Climate” and “water” have been ascertained to be extremely relevant for TUI. A further aspect perceived as strongly addressed by TUI is “safety” in combination with the implementation of safety and crisis management. Other issues considered to be highly relevant are “sensitising guests”, “corporate governance” and “sustainable products”.

The following internal and external stakeholders in direct contact with TUI took part in the survey: shareholders, Supervisory Board and Executive Board, employees, non-governmental organisations, corporations, consultants, researchers and rating agencies, the public sector, science and research. More than 76 % of the respondents commented on the relevance of different

Safety

Extent to which TUI addresses aspects

Biodiversity

Water Waste Employees

Stakeholder Dialogue Landscape

Human Rights

Supply Chain Management Diversity Management

Energy

Climate Corporate Governance Sustainable Products

Personnel Development

Community Development Other

Demografic Development

Relevance for TUI

22

Sensitization of Guests

TUI Sustainability Report 2009/2010

1 The correlation ratio may be any value in between -1 and +1. In this survey it is 0.66. The relationship between the axes in this diagram has been adjusted for clarity of presentation and does not correspond to scale.


Organisation

Sustainability strategy Thanks to many years of open dialogue with our stakeholders on the basis of trust, we are able to understand the expectations and requirements of different parties and integrate them early on. The outcome of the survey will be followed by adjustments and fine-tuning of TUI’s sustainability strategy at the local, national and international levels. Measures already launched in connection with certain aspects will be intensified, while new activi- ties will be developed for other aspects in order to re- inforce sustainable approaches for TUI’s processes. This Sustainability Report presents examples of best practice on many aspects to illustrate our commitment to sustainability. TUI AG The CSR Council of TUI AG is coordinated by the Group Environmental Management/Sustainable Development department. The heads of the respective Group functions represented on the Council report relevant issues to the Board member in charge of Sustainable Development. The individual sectors and Group companies cooperate closely on effectively implementing our sustainability strategy and rolling it out throughout the Group. The companies of our Tourism, Hotels & Resorts and Cruises divisions network through their environment and sustainability coordinators or departments. In 2009, the Group Environmental Management/Sustainable Development department employed around 4.5 full time equivalents (FTEs). TUI Travel TUI Travel has established sustainability management along its new corporate structure. A Sustainable Development department manages and coordinates the design and implementation of objectives for the tourism companies. In financial year 2008/2009, TUI Travel PLC employed around 23 FTEs in Sustainable Development.

Executive Board TUI AG

Group HR

Group Marketing

Group Development

CSR Council Investor Relations

Group Communications Group Environmental Management/ Sustainable Development

TUI Travel

TUI Hotels & Resorts

Cruises

The Sustainable Development Coordinators are drawn from all sectors within TUI Travel PLC. TUI AG’s Group Environmental Management/Sustainable Development has an advisory function. The Sector Coordinators report to the Group Sustainable Development Steering Committee, which is composed of the Sector managing directors of participating TUI Travel companies. The sustainability coordinators meet on a quarterly basis around workstreams and address the following issues: Climate Change (broken down into Airlines, Water Transport, Ground Transport, Major Premises, Flagship Hotels) Destinations (broken down into Supplier Management, Projects) Our People Our Customers

TUI Sustainability Report 2009/2010

23


2 TUI Green Days 2009

Communication and awareness-raising Apart from firmly embedding sustainability within our organisational structure, we consider our key task to be raising our employees’ awareness of these issues and communicating goals and programmes. Code of Conduct of the TUI Group. A Code of Conduct has been drawn up for the entire Group to ensure consistent standards of exemplary action and behaviour. It is intended to set out guiding principles for each Group employee to follow, i.e. the Executive Board, managers and all Group employees. The Code of Conduct also refers to our corporate vision, core competences and our values: legality, corporate citizenship, openness, tolerance and innovation. The contents addressed by the Code of Conduct are communicated to our managers and employees in attendance- and web-based training schemes.

TIP Intranet

Intranet. The intranet platform of the TUI Group continually informs our employees about our commitment to sustainable development. Separate information sections are offered, for instance, on “TIP Intranet” at TUI AG, “Discover Intranet” at TUI Travel PLC and “TUItimes online” at TUI Deutschland.

TUI Green Days. In 2009, the TUI Green Days were carried out for the fifth time in succession in Hanover on the premises of TUI AG and TUI Deutschland. In the framework of the Green Days, employees are informed about issues of relevance to the environment on an annual basis and sensitised for social issues. Various organisations and companies exhibited their products and services in the foyers of a “market square” under the motto “Social commitment and sustainable consumption”. Futouris e. V. and Betterplace.org gave presentations, explaining their approach to sustainable development and social commitment to the Executive Board and interested employees. By taking part in an environment quiz, employees were entitled to enter the raffle. The winners were drawn on the second day by members of the football team Hannover 96. Key issues at TUI Green Days: 2004 – Energy and mobility 2005 – Health and fair trade 2007 – Climate change and climate protection 2008 – Biodiversity and conservation of species 2009 – Social commitment and sustainable consumption

24

TUI Sustainability Report 2009/2010


Photo contest on TUI’s Sustainability Report. In July 2009, TUI employees were invited on the intranet to submit photos they had taken. We were on the look-out for a strong, expressive photo on the theme “People and nature” to place on the cover page of the present Sustainability Report. Employees from all over the world sent us fascinating snapshots of people, animals and nature.

A selection of award-winning photos

An independent jury from different sectors of our company determined the winner of the contest. The awards for the photos were granted at the 2009 TUI Green Days. The photo chosen for the cover page of the present report was shot by the winner of the contest, Michael Langer. It shows gorillas in the African jungle, observed on an expedition in the jungle of Rwanda. The jury chose this striking photo because it also illustrates our support for activities to preserve species under the Bonn Convention (CMS) during the “Year of the Gorilla 2009”. The photo awarded the second prize (rear cover of the report) was taken by Monika Giuliani in Kenya. It shows a native canoeist on a lake with mangrove forests. Kenya was a priority destination in the framework of our activities during the “Year of the Dolphin 2007/2008”. The many different themes were also presented to employees in an exhibition. The photo gallery was opened at TUI AG’s head office in Hanover in September 2009 and will move to TUI Deutschland’s headquarters in early 2010.

TUI Sustainability Report 2009/2010

25


2

Internal and External Reporting

TUI Group monitoring In order to coordinate and collect information about activities, projects and initiatives in all TUI companies, TUI has operated a Group-wide network for many years which is known as TUI Group monitoring. Under this Group-wide internal reporting programme adopted in 2002, the managing directors and sustainability co-ordinators for the Group companies regularly have to report their consumption figures and activities to promote sustainability, including outstanding projects and programmes, to TUI AG as per the end of the financial year. The central Group Environmental Management/Sustainable Development department then analyses the environmental and sustainability performance of the companies, pools the information at Group level, establishes the key performance indicators across all Group companies and develops strategic and operating control tools to facilitate systematic improvements. Data surveys and reporting thresholds The monitoring programme covers all the TUI Group’s continuing operations. In order to determine climateoriented indicators such as carbon emissions, the highemission sectors TUI Airlines, Cruises and TUI Hotels report their consumption figures. This helps to determine the concrete status quo and derive strategies and programmes with an optimum cost/benefit ratio. Methodology. The quantitative data from the TUI Group monitoring programme are tested for plausibility, aggregated and run through statistical analysis. Internationally recognised conversion factors are used to complete the calculations. Both absolute and relative values are used to determine the environmental indicators, e. g. absolute carbon emissions and emissions per unit, for instance per kilometre. The indicators show how environmentally relevant factors are developing and are used as control parameters.

26

TUI Sustainability Report 2009/2010

Applied standards. The environment indicators are calculated on the basis of internationally applicable standards (for instance the greenhouse gas protocol of the GHG Initiative) and are externally verified. Direct carbon emissions, primarily from the use of fossil fuels, are the result of fuel consumption by airlines and cruise ships. Other greenhouse gases such as nitrogen oxides or sulphur oxides depend on the type and quality of the fuel used. The model devised for the airlines calculates emissions as a function of flight duration, aircraft type, engine type and thrust. This calculation takes account of the information provided by the International Civil Aviation Organisation (ICAO) on relevant emissions in aviation. Specific indicators also refer to a comparative number, e. g. passenger kilometres or passenger nautical miles¹. This means emission trends can be visualised independently of any changes in organisational structure. In order to improve the Group’s environmental performance, evaluations of the reported data and benchmark information have been sent back to the hotel brands of TUI Hotels & Resorts since the 2008 reporting period. This enables each brand to compare the performance of its hotels internally and externally with other hotel brands and to compile measures to realise their savings potential, such as by enhancing resource efficiency. TUI’s Group monitoring programme is based on recognised reporting policies. We enhance the transparency of the TUI Group’s organisation, processes, programmes and goals by applying the G3 Guidelines of the Global Reporting Initiative (GRI). The GRI has checked that we meet the relevant criteria and confirmed application level B. An overview of the GRI criteria and how they are applied is given on the inside back cover. 1 Passenger kilometre or passenger nautical mile denotes kilometres/nautical miles travelled multiplied by the number of passengers per journey


Cooperation Schemes and Dialogue

Cooperation creates competence to act We attach importance to dialogue with our stakeholders in the various sites and tourist destinations. Continuous exchange with all stakeholder groups promotes understanding of mutual concerns and helps identify and settle conflicting interests early on. Key issues can be meaningfully addressed by means of cooperation with expert partners from the economic and scientific, political and public arenas, suppliers and negotiation partners. Cooperation with non-governmental organisations (NGOs), in particular, helps us to act with a high degree of competence. econsense – Forum for Sustainable Development of German Business econsense is an initiative launched by German industry under which leading companies and organisations operating nationally and internationally have committed to a common vision. They engage in dialogue to discuss tasks and opportunities for sustainable development with business organisations, policymakers and stakeholders from NGOs, scientific organisations and the public at large. This approach is based on the understanding that industry, with its power to innovate and invest, must assume special responsibility for the success of sustainable development. Voluntary commitment and activities. TUI AG is a founding member of econsense and thus voluntarily committed to ecological, economic and social sustainability. In 2008, TUI took part in compiling the econsense climate technology atlas to present innovative approaches to climate protection. In 2009, the focus remained with issues like climate protection, biodiversity preservation and “sustainable financial markets”.

Working conference of the Business & Biodiversity Initiative at TUI AG in January 2009

Business & Biodiversity Initiative In 2008 TUI was invited by the German Ministry for the Environment, Nature Conservation and Nuclear Safety to join its Business & Biodiversity Initiative. This initiative is coordinated by the German technical aid agency GTZ and aims to promote stronger integration of the private sector in the goals of the Convention on Biodiversity (CBD) relating to the worldwide protection of species.

www.business-andbiodiversity.de

www.econsense.de

Dialogue and research. The over 40 members of the initiative from different sectors and representatives of the German Environment Ministry and GTZ meet regularly to exchange experience and ideas. In order to include major stakeholder groups in this dialogue, a conference with representatives of German key organisations for the protection of nature and species was held in November 2009. In the spring of 2010, the initiative will publish a manual entitled “Managing diversity – Entrepreneurial biodiversity management”, written together with the Centre for Sustainability Management (CSM) of Leuphana University of Lüneburg. The manual analyses the influence of entrepreneurial activities on biodiversity and shows areas for protective measures, illustrated by practical examples gained during the initiative.

TUI Sustainability Report 2009/2010

www.klimatechatlas.de

27


2 “The Business & Biodiversity Initiative aims to achieve stronger integration of business in implementing the goals of the Biodiversity Convention. With TUI, we have won a partner clearly committing to these goals and systematically working towards entrepreneurial biodiversity management.” Edgar Endrukaitis, GTZ, coordinator of the Business & Biodiversity Initiative

www.count down2010.net

www.europarc.org

www.bfn.de

28

Countdown 2010. To mark the opening of International Year of Biodiversity 2010, the initiative will launch the travelling exhibition “Diversity in business requires diversity in nature”, illustrating the links between business and biodiversity. The initiative will present its results and further goals at the 10th conference of the CBD states parties to be held in Nagoya, Japan, in October 2010. Sustainability Leadership Forum TUI AG engages in the Sustainability Leadership Forum (SLF) to promote active development and implementation of its sustainability strategy. The SLF is an initiative run by the CSM of the University of Lüneburg and B.A.U.M. (German campaign for environmentally-aware management). Open exchange. The SLF understands its role as a working and discussion group of pioneers of sustainable corporate development. The participants meet three times a year for an open exchange on core issues, trends and practice-centred implementation of sustainability management. In 2009, the participants discuss- ed for instance the development of the international sustainability standard ISO 26000 and coporate risk management.

TUI Sustainability Report 2009/2010

Federal Agency for Nature Conservation Since 1990, TUI has cooperated with the Federal Agency for Nature Conservation (BfN) in Germany to inform guests about the rules of the Washington Convention (CITES – Convention on International Trade in Endangered Species). Biodiversity Initiative. In 2009 TUI AG intensified its activities to sensitise guests to species conservation. Together with the BfN, it produced a souvenir guide informing readers about illegal souvenirs and about alternatives that promote the local economy. Since November 2009, the TUIfly airline has also included biodiversity ads produced by the BfN in the in-flight viewing schedule. EUROPARC Federation EUROPARC Federation was founded in 1973 as the Federation of European Nature and National Parks. It is an independent European nature protection organisation. Its members include more than 500 protected areas and public agencies in charge of protected areas in 39 countries. Sustainable tourism in protected areas. As a member of the evaluation committee of the European Charter for Sustainable Tourism in Protected Areas (EUROPARC), TUI AG maintained its involvement in implementing standards for the sustainable use of European protected areas for tourism in 2009. At the Charter Network Meeting in 2009, TUI AG discussed the conditions tourism needs to meet in protected areas with representatives of national parks from the perspective of a tourism company.


Bonn Convention In 2005, TUI AG and the Bonn Convention (Convention on the Conservation of Migratory Species of Wild Animals/CMS) concluded a cooperation agreement. The CMS, signed in Bonn in 1979, is run by the United Nations Environment Programme. TUI is also a founding member of Friends of CMS, comprising representatives from the economic, political, scientific and media arenas. Protection programmes. Every year TUI contributes various activities to the CMS protection measures. In 2007 and 2008, TUI was the only private sector partner cooperating with the Bonn Convention and the Whale and Dolphin Conservation Society (WDCS) in the Year of the Dolphin. In 2009, TUI AG supported the Year of the Gorilla, carried out in cooperation with the UNEP Great Ape Survival Project. 2010 has been declared International Year of Biodiversity by the United Nations. The CMS will run its own activities in this overall context in 2010. Global Nature Fund The Global Nature Fund (GNF) is an international foundation for nature and the environment, dedicated in particular to the preservation of species. The Global Nature Fund also takes part in designing pilot projects to promote sustainable economic action. EU Life+. In 2008, TUI AG supported the GNF’s application for a Business & Biodiversity project as part of the EU Life+ sponsorship programme. Together with IUCN and other partners, the GNF is planning to run a European information and awareness-raising campaign for companies on Business and Biodiversity. The project will be launched in 2010.

Futouris e. V. TUI AG co-founded the industry initiative Futouris e.V. together with TUI Deutschland, TUI Austria, TUI Suisse, airtours, Gebeco and TUI Leisure Travel. Tour operators Thomas Cook and Neckermann joined the non-profit association on 1 July 2009. It is run under the patronage of the German Travel Industry Association (DRV). www.cms.int

Sponsorship areas. Futouris supports projects in the fields of socio-cultural responsibility, environmental and climate protection and biodiversity preservation. It cooperates with Leuphana University of LĂźneburg to devise concepts aiming to further expand the activities of the initiative. DRV committee on culture and the environment Since 1990, TUI has been a permanent member of the culture and the environment committee of the German Travel Industry Association (DRV) and thus supported the active work by the DRV to promote an environmentally and socially compatible development of tourism. The committee mandate is exercised by TUI Deutsch- land. Goals. The DRV committee promotes the development of environmentally sound concepts for travel agencies and tour operators. It takes part in various bodies (tourism associations, ministries, European Union) and is thus involved in decision-making processes for tourismrelated environmental laws. Engaging in an exchange of ideas and experience with business associates, regional and supra-regional decision-makers and environmental and tourism ministries in the holiday destinations, the committee aims to directly influence the development of sustainable tourism.

TUI Sustainability Report 2009/2010

www.globalnature. org

www.futouris.org

www.drv.de

29


2

www.toinitiative. org

www.thetravel foundation.org.uk

www.oekoprofithannover.de

www.ecpat.net

Tour Operators’ Initiative So as to spread and promote the idea of sustainable tourism development, TUI has launched the Tour Operators’ Initiative for Sustainable Tourism Development (TOI) in cooperation with other tour operators and with the support of UNEP, UNESCO and the World Tourism Organisation (UNWTO). Voluntary commitment. All members of this worldwide initiative undertake a voluntary commitment to ecological, economic and social sustainability in the development of tourism. Since 2008, the mandate on the Tour Operators’ Initiative has been held by TUI Travel. Travel Foundation TUI Travel and the British Travel Foundation cooperate closely in focusing on the protection and improvement of the environment and the preservation of cultural traditions in holiday destination communities. The Foundation, created in 2003 by the British government in cooperation with the tourism sector, promotes the sustainable development of destinations by sensitising guests, developing appropriate business models and implementing concrete projects. Project work. A variety of projects are initiated in cooperation with the incoming agencies and local partners to present ideas and test solutions. The results of these projects are then merged into guidelines for the British tourism sector. The Travel Foundation thus promotes sustainable tourism by means of concrete initiatives. TUI Travel supports the work of the Travel Foundation with its active involvement in various bodies and has donated over £ 1.5 million to date.

30

TUI Sustainability Report 2009/2010

Ökoprofit To improve in-house environmental protection at our Hanover site, the TUI head office has been working since 2002 with Ökoprofit, the Ecological Project for Integrated Environmental Technology, in a cooperation project between local authorities and companies aimed at ecological optimisation of entities in the private and public sector. The consultancy system regularly offers workshops to inform participants about issues of relevance to the environment, i.e. energy efficiency, waste, wastewater and storage of hazardous substances. It helps them identify savings potential and thus cut operating costs. Ökoprofit is a Local Agenda 21 project. ECPAT All major TUI tour operators cooperate with ECPAT (End Child Prostitution, child pornography And Trafficking of children for sexual purposes) to fight child prostitution. The influential international organisation was founded in Bangkok, Thailand, in 1990 and is represented in many countries. Its mission is to promote the rights of children worldwide. ECPAT runs campaigns on an international level to raise people’s awareness of the sexual abuse of children. ECPAT’s main goals are education and prevention.


Sustainability Rating

Indices offer sustainability-oriented investors a chance to channel investments into companies which meet globally recognised standards of responsibility for the environment and stakeholders. At the same time, dialogue with analysts and investors provides key inputs to companies. In developing our external reporting, we take constant account of requirements by sustainability ratings and rankings and of inquiries from independent index providers, research agencies and specialised investment funds.

FTSE4Good. As a result of the semi-annual review by EIRIS/imug, TUI AG was admitted to the international ethical index FTSE4Good with effect from March 2004. TUI Travel PLC is also listed in the FTSE4Good. ASPI Eurozone. TUI AG has been represented on the sustainability index ASPI Eurozone of the French rating agency VIGEO since 2001.

International rating agencies and sustainability analysts confirm the success of TUI‘s activities in the context of sustainability.

Ethibel Excellence Index. In March 2005, TUI AG was admitted to the Ethibel Excellence Index. The review carried out in August 2009 confirmed the Group’s positioning in the index. The research provider is Stock at Stake, a member of the Ethibel Group.

9 10

ECPI Ethical Index €uro. With effect from 31 January 2007, TUI AG was admitted to the ECPI Ethical Index €uro managed by E.Capital Partners.

Dow Jones Sustainability World Index. Since 21 September 2009, TUI AG has been the only tourism company worldwide to be listed on the Dow Jones Sustainability World Index (sub-sector Travel & Tourism) for the fourth time in succession. In the annual review of the composition of the index, TUI AG scored best in the categories climate strategy, stakeholder engagement and brand management. Positive scores were also obtained in social reporting and environmental management. The Dow Jones Sustainability World Index comprises the 317 of the 2,500 members of the Dow Jones Global Index leading the field in terms of corporate sustainability.

DAXglobal Sarasin Sustainability Germany. Since 2007, TUI AG has been listed on the DAXglobal Sarasin Sustainability Germany (Deutsche Börse). Investment Status “Prime“. oekom Research AG again awarded TUI the “Prime” investment status in 2009.

Internet platform under the patronage of UNEP to improve transparency for sustainable investments in Europe: www.sustainable-investment.org

TUI Sustainability Report 2009/2010

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3

Environment


Perspectives TUI is committed to maintaining a responsible approach to the environment and nature. In particular in the areas of climate protection and conservation of natural biodiversity we want to make a contribution. We invest in efficient energy and drive technologies. Careful use of natural resources and the reduction of negative effects on the environment secure the continuing success of TUI.

TUI Sustainability Report 2009/2010

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3

Climate Strategy

Climate change is one of the biggest global challenges to the international community. Drawing on the scientific findings of the Intergovernmental Panel on Climate Change (IPCC) in 2007, it is seen as very probable that global warming is encouraged by the release of greenhouse gases due to human activity. Society, individuals and above all companies therefore have a responsibility to reduce the so-called “anthropogenic” greenhouse effect in coming years and decades in order to contain the negative consequences. Climate change and tourism The climate change scenarios produced by researchers include, among other things, changing climate conditions in different regions of the planet, melting ice caps and glaciers, rising sea levels, the additional release of greenhouse gas due to thawing permafrost and more frequent extreme weather events such as hurricanes. This means that in coming years global warming is likely to have (more) direct and indirect effects on tourism and to influence TUI’s commercial activities. Many people regard travelling as a feature of their life quality. When they are on holiday they want to recuperate and relax, but they also want to gain some impression of the natural landscapes, culture and people in the host country. These days even long distances can be covered quickly, comfortably and for a relatively low price. For TUI, which provides tourism worldwide, mobility is a key element of our business. Mobility often still entails the use of fossil fuels leading to emissions with an impact on climate. In the light of this, TUI has for many years been taking concrete measures to reduce or eliminate emissions, especially in energy-intensive operations.

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TUI Sustainability Report 2009/2010

TUI’s climate strategy The climate strategy at TUI focuses primarily on reducing or eliminating greenhouse gases right along the chain of value creation. We monitor the emissions that result both directly from the use of fossil fuels (by, for example, airlines and cruise vessels) and indirectly from the use of electricity. We take concrete measures to encourage the careful use of resources and efficiency gains in technologies and processes. At TUI Travel, five of the new core working groups in the field of sustainable development are addressing ways to reduce the carbon footprint. These “workstreams” set out to identify targets and action for TUI Travel operations in the fields of Airlines, Water Transport, Major Premises, Ground Transport and Flagship Hotel Properties. Climate adaptation techniques are also a theme. Apart from reducing and eliminating greenhouse gases in the business units, one thread of TUI’s strategy is to adapt to climate change. We continually assess the risks and opportunities posed by climate change. Preserving ecological, social and cultural resources in the destinations and thereby placing out commercial activities on a sustainable basis are pivotal objectives here. We can only counter those risks and tap those opportunities by adapting swiftly and efficiently to changes in the climate. Our climate strategy applies throughout the Group. Here is a summary of our strategic objectives and positions, with some notes on the concrete processes and measures we have set out to implement:


TUI climate strategy objectives: 1. To integrate climate protection into our business processes effectively, we systematically analyse our commercial operations to determine their impact on the climate. 2. Relevant emissions are observed in Group-wide performance monitoring. We have defined suitable indicators and update them continuously through dialogue both internally and with outside partners. The process of designing and interpreting these indicators is transparent and subject to external review. 3. The Group’s Environmental Management/Sustainable Development department provides specialist support across the Group, working closely with those responsible in companies and units. A whole range of approaches have already been developed, with concrete examples of effective climate protection and further environmental measures all the way down the value chain. Binding quantitative and qualitative (reduction) targets have been defined for emission-intensive operations. Experience and best practice are exchanged and promoted across the Group. 4. The commitment to climate protection is enshrined in the Code of Conduct of TUI AG. This responsibility is communicated throughout the Group through staff training. We implement this responsibility by setting targets for action and quality which are then translated into practical measures across the Group. 5. Regular reviews of our progress and broad internal and external communication, e. g. in the Annual Report and Sustainability Report and on our website www.tui-sustainability.com, serve critical analysis of our measures and help to build awareness and confidence among our guests, employees and partners. 6. We continually encourage the sensitivity of our partners throughout the value chain to issues of climate change, progressively involving them in our objec- tives.

7. We draw on the expertise of researchers and academics, government departments and NGOs. We build our competence through dialogue and exchange with cooperation partners and other stakeholders. Measures and processes: Promotion and implementation of political measures to reduce or eliminate emissions (e. g. EU Emissions Trading Scheme, Single European Sky) Operational process optimisation and application of innovative technologies to increase efficiency Greater use of renewable energies Wider certification of environmental management systems Sensitisation of employees, guests and partners (e. g. information events, voluntary options to offset carbon emissions, contractual clauses) Sustainable product development Follow-up assessment of adaptation impacts Cooperation with non-government organisations, political institutions and research bodies Provision of environmental advice to decisionmakers and contributions to expert panels Climate network TUI is engaged in close dialogue with the scientific and political communities. Potential ways of mitigating greenhouse gas emissions and designing concrete adaptation measures are identified and developed together. Carbon Disclosure Project In 2009 TUI AG took part in the Carbon Disclosure Project (CDP) for the fourth time, responding to the survey by interested institutional investors by outlining the opportunities and risks to business activities that are posed by climate change.

TUI Sustainability Report 2009/2010

www.cdproject.net

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3

Climate Action

A TUIfly winglet

TUI Airlines According to the IPCC, international air traffic accounts for about 2 % of global anthropogenic carbon dioxide emissions. The Panel forecasts that this contribution will continue rising, reaching about 3 % by 2050 due to increasing demand and the resulting realisation of growth potential in aviation. In both these figures, the percentage of purely tourist travel is lower. Flying at higher altitudes may reinforce the warming effect of emissions. This impact is reflected in the Radiative Forcing Index (RFI). From 2012 CO² emissions from civilian air traffic in Europe will be regulated under the Emissions Trading Scheme of the European Union (EU ETS). Reduction target. Quite apart from the future integration of our aviation services into EU ETS, we already believe that we have an ecological responsibility for the contribution we make to emitting greenhouse gases, which is primarily the result of using fossil fuels. For that reason, our climate strategy has a focus on reducing our carbon footprint by increasing our energy efficiency. TUI Airlines have been carrying out a number of measures for some years now to prevent emission levels from keeping pace with growing transport capacities. Aviation performance is already highly efficient, but to improve on that even further TUI Airlines have set themselves the target of cutting absolute CO² emissions by at least 6 % by the winter of 2013/14. Reduction

Fuel consumption following fleet renewal

Fuel consumption (t)

CO₂ saved by fleet renewal

Saison

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TUI Sustainability Report 2009/2010

S14

W13/14

S13

W12/13

S12

W11/12

S11

W10/11

S10

W09/10

S09

W08/09

S08

W07/08

Season

The baseline for comparison will be emissions during the winter season 2007/08. Another measure to help achieve that target is renewal of the TUI Airlines fleet. The plan is to gradually replace aircraft of the older generation with the latest, much more efficient new-generation models by 2014. TUI has placed an order with Boeing for the cutting-edge B 787 Dreamliner, and the first delivery should be taken in 2012. Fleet renewal could save more than 2.8 million tonnes of carbon emissions by 2014. Climate protection. Apart from this ongoing fleet renewal, TUI Airlines is implementing 30 more measures to enhance fuel efficiency and thereby cut emissions. Winglets mounted on the tips of aircraft wings, for example, help to reduce the consumption of jet fuel by 3.5 to 4 %. Regularly clearing dirt from the engines (water wash) also lowers fuel consumption, potentially cutting the carbon emissions of a Boeing 737 by up to 100,000 kg per year. Other action taken by TUI Airlines includes adjusting speed to cut back on aircraft fuel input, more efficient flight scheduling to avoid unnec- essary taxiing and flying, and weight reduction thanks to the use of lighter materials in aircraft design. TUI Travel PLC is furthermore an active member of SAFUG (Sustainable Aviation Fuel Users Group) and takes part in discussions about the use of sustainable biofuels in aviation.


Carbon offsetting. In addition to this, we are able to offer many of our guests the option of making a voluntary donation to offset their carbon emissions. The donations are invested in international mitigation projects so that the carbon dioxide emitted during their flights can be offset by reductions elsewhere. Thomson Airways has for many years been supporting the World Care Fund, and every time a guest makes a donation the company donates another pound of its own. TUIfly has been working since 2007 with the Swiss foundation myclimate and has very successfully integrated the offset option into its online booking procedure. From the introduction of this scheme until November 2009, TUIfly passengers have made this dedicated donation in about 6 % of bookings. That is higher than average for the sector and equates to more than 660,000 euros

A solar cooker in use at Ejeda, Madagascar

in money terms, or to a offsetting of approximately 33,000 tonnes of CO². This is currently being used to finance low-energy cookers in Madagascar.

Sector

Basis/performance indicator

Targets for 2011 (or as stated)

TUI Airlines (total)

absolute CO2 emissions of TUI Airlines in pro forma year 2009: 5,778,712 tonnes (share of total CO 2 emissions produced by the Group: 91%)  specific emissions during this period: 78 grams per passenger kilometre

Reduce CO2 emissions: 6 % by 2013/14 (baseline: 2007/08)

TUIfly Nordic

Use winglets Fuel savings of up to 4 % Noise abatement

Retrofit an aircraft with winglets

TUIfly Nordic

Implement (certified) environmental management systems  systematic management of environmental impacts   TUIfly Nordic first TUI airline to gain ISO 14001 certification

Maintain and expand the environmental management system under ISO 14001

TUIfly

Offset CO 2 emissions from business air travel

Introduce carbon offsetting for business travel at TUIfly in financial year 2009/2010

TUI Sustainability Report 2009/2010

37


3 TUI Hotels & Resorts The brands managed by TUI Hotel & Resorts are among the pioneers of local environment action, whatever the location. Broad support and advice from Environmental Management at centre and the environment officers designated within each hotel company ensure an active approach to environmental management and make an important contribution to quality, appeal and sustainable development in our holiday destinations. ROBINSON Club works around the globe for a sustainable use of natural assets. High priority is attached to ISO 14001 certification of environmental management systems. Numerous measures are applied to protect the climate and carbon reduction principles have been integrated into the corporate strategy. Energy consumption is being consistently pruned back thanks to appropriate measures such as switching to low-energy light bulbs. A sustainable approach to energy genera- tion has likewise been adopted, for example by install- ing plant that can convert renewable energy sources such as solar energy and biomass. Over half the ROBINSON Clubs have solar collectors to produce heat. Solar panels at the ROBINSON Club Agadir in Morocco

About 90 % of Morocco’s energy is imported because the country has hardly any fossil deposits. As energy demand has also been rising steadily in recent years, the development of sustainable energy conversion has been proceeding apace. The ROBINSON Club in Agadir has taken advantage of the many days of sunshine during the year and entered into a partnership with a specialist company to build the biggest solar facility in the country. The solar panels are installed on the Club roofs. They have a surface area of over 900 m² and a capacity of 2,600 kWh/day. The heat is used for the hot water supply and to keep the pool complex warm. The facility has been such a success that similar projects are now being designed for companies and hotels in the area. The ROBINSON Club Amadé at Kleinarl (Austria) obtains heat from a carbon-neutral biomass plant which uses the latest condensing technology, set up in spring 2004 by a partnership involving the Club investors, local farmers and the energy companies Nahwärme GmbH and AESG. Nearby farmers supply the fuel in the form of forest chippings – a self-regenerating commodity. Having such a large client enabled Nahwärme Kleinarl to provide district heating to the entire village centre: many local residents are also supplied by the power station. The Club was able to avoid the expense of an oil-fired heating system and 100 % of its heating and hot water is provided by the biomass plant. The facility has saved about 800,000 litres of heating oil per annum. The hotel brand RIU has consistently pursued energysaving measures for more than ten years, thereby helping to protect the climate. In RIU hotels lamp bulbs are progressively being replaced by low-energy bulbs and LED lighting. That cuts carbon emissions by nearly 7,500 tonnes. Power consumption is also being reduced by using energy-efficient domestic appliances and screens, and smart controls have been installed to manage heating and air conditioning.

38

TUI Sustainability Report 2009/2010


Grecotel has also introduced a range of measures and initiatives to reduce pressure on the environment and climate. A number of Grecotels have installed solar technologies, using the sun’s energy for hot water and heating supplies. The Hotel El Greco on Crete has fitted air conditioning cooled by sea water to save further energy and resources. Dorfhotel is similarly committed to protecting the environment and natural resources at its locations in Germany and Austria. Dorfhotel Fleesensee, for example, has supported the “Forest Share” campaign launched by the tourism association in the state of MecklenburgWestern Pomerania. In October 2009 hotel staff planted locust trees in the Climate Forest at Mirow. “Forest shares” were then handed over to guests to raise awa-

Sector

Basis/performance indicator

Iberotel

The TUI hotel brand Iberotel has demonstrated consistent commitment to protecting the climate for many years. It was back in mid-April 2004 that the Iberotel Sarigerme Park became the world’s first-ever hotel to commission a parabolic trough collector. The hotel’s solar collectors are the perfect solution to cooling buildings in sun-soaked countries. Heat from the collectors is also used by the system to power the hotel air-conditioning and generate its hot water.

Targets for 2011 (or as stated) Installation of solar energy panels / Club expansion and conversions to intensify the use of renewables

ROBINSON Club

Dorfhotel Fleesensee

reness for climate protection and encourage people to take part in the reforestation effort.

absolute CO2 emissions by hotel operations in pro forma year 2009: 115,347 tonnes (2 % of total CO2 emissions generated by the Group)

Reduce carbon emissions by updating the fleet and using electric vehicles Support for the reforestation project “Climate forest“ and subsequent sales of 25 “Forest shares“ (in 2010) Greater use of renewable energies, e. g. for garden lighting

TUI Sustainability Report 2009/2010

39


3

Sector

Cruises overall

Basis/performance indicator absolute CO² emissions by Cruises in pro forma year 2009: 449,223 tonnes (7.1 % of total CO² emissions generated by the Group)   specific (average) emissions in this period: 0.81 kg per passenger nautical mile

Cruises TUI’s cruise operators have introduced various measures to protect ecosystems, maritime biodiversity and the climate. The vessels operated by Hapag-Lloyd Kreuzfahrten and TUI Cruises and equipped with stateof-the-art environment technology. In the Arctic and Antarctic cruise liners use diesel rather than heavy oil, and they are encouraged to use diesel in other waters, too. As a member of the International Association of Antarctica Tour Operators (IAATO) and the Association of Arctic Expedition Cruise Operators (AECO), HapagLloyd Kreuzfahrten observes their environment guidelines on all Arctic and Antarctic voyages, thereby actively showing respect for the environment and climate in these sensitive regions.

40

TUI Sustainability Report 2009/2010

Targets for 2011 (or as stated) definition of indicators to measure environmental impacts of TUI Travel PLC Cruise operations (Workstream Water Transport) active support for climate protection programmes at Hapag-Lloyd Kreuzfahrten, e.g. voluntary use of diesel and adjusting cruise speed to save fuel

TUI head office, tour operators, distribution Green power. The 700 or so retail outlets within the German TUI travel agency structure receive their electricity from NaturEnergie AG. The annual supply of about 10 million kilowatt-hours corresponds to the annual power consumption of 3,000 households. Generating this volume from hydroelectricity saves almost 6,000 tonnes of CO². Most branches of TUI Nordic and 230 First Choice travel agents in the United Kingdom buy “green” power from renewable energy sources. Train to plane. In partnership with German rail operator Deutsche Bahn AG and the Association of German Transport Companies (VDV), TUI Deutschland has for many years offered clients a comprehensive service to help them on their way. Every package flight booking with TUI includes a rail ticket to get people from home to the airport and back anywhere on the German network. They can also use any public transport in Germany’s twelve big urban systems. This offers clients a convenient, cheap and climate-friendly alternative to taking the car, and it is a way of avoiding more air miles by taking a domestic flight to the point of departure.


Voluntary carbon offsetting. Many operators in the TUI Group work with independent partners to promote carbon offsetting. Clients’ donations are invested in projects around the world to cut emissions: Since June 2008, as part of the TUI Climate Initiative, clients of TUI Deutschland have been able to offset their entire trip (including accommodation) through myclimate, contributing in this way to climate protection. TUI Deutschland adds € 0.50 every time a booking is made with this donation. Thomson and First Choice support carbon offsetting for outbound and inbound flights via the World Care Fund in partnership with ClimateCare. The operator adds £1 to each donation. TUI Nederland tells clients how they can offset their carbon emissions through a provider like GreenSeat. TUI Suisse also lets holiday-makers use the offset option through myclimate. TUI Nordic offers clients in Scandinavia the chance to arrange carbon offsetting through the providers atmosfair and ClimateCare. TUI AG has decided to offset carbon emissions from unavoidable business trips by air. In 2008 individual departments chose to compensate for their work-related flights through the organisation myclimate, and in the short financial year 2009 all business flights for TUI AG went carbon-neutral. Sector

TUI-biking in Hanover

TUI business bikes. Members of staff suggested introducing business bikes for fast, healthy and environment-friendly travel between TUI premises in Hanover. Following Board support, eight TUI companies took part from the start in acquiring the bicycles, which were available to borrow at four locations. Even in winter months staff make frequent use of the TUI bikes. That has saved about 3 tonnes of carbon emissions since the project was launched. The bikes have proven so popular and successful that TUI AG backed the “Bike Fit to Work” project organised by B.A.U.M., a national campaign for environmentally-aware management, where they have publicised the progress and development of the Hanover initiative.

Basis/performance indicator

Targets for 2011 (or as stated)

absolute CO2 emissions from business air travel in SFY 2009: 156 tonnes

fully offset carbon emissions from all business air travel in the financial year

cut in carbon emissions from use of TUI business bikes in pro forma year 2009: 3,000 kilogrammes (compared with 100 % car use)

analyse lower-carbon options for business travel and daily commuting to promote sustainable staff mobility

TUI Deutschland

absolute CO2 emissions from business air trips

offset carbon emissions from all business air travel for the first time in financial year 2009/2010

TUI Nordic

absolute CO2 emissions from administration and sales in 2007/2008: 1,504 tonnes

15 % reduction in energy consumption by administra- tion and sales by 2012/20133

TUI AG

TUI Sustainability Report 2009/2010

Further details at www.tui-klima initiative.de www.myclimate.org www.greenseat.nl www.atmosfair.de

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3

Biodiversity Strategy

Biodiversity – variety among flora and fauna, ecosystems and genetic resources – plays a central role in the survival of the planet, and today it is increasingly under threat: from depletion, overexploitation and the consequences of global warming. Ensuring biodiversity is the task of the international community. A Convention on Biological Diversity was adopted in 1992 at the United Nations Conference on Environment and Development. The governments of the states parties, who now number 190, have expressed their desire to achieve a significant decline in the current rate of loss of bio- diversity by 2010.

www.count down2010.net

With the decision to declare 2010 International Year of Biodiversity (IYB), the UN General Assembly is seeking to bring the protection of species diversity to everyone’s attention as a global task. Biological diversity and tourism As a global player, TUI is aware that its business operations all the way along the value chain at local, regional and global level have an impact on biodiversity. At the same time, tourism is more dependent than any other sector on a healthy natural environment. TUI has been committed since the early 1990s to concrete projects and partnership agreements in a dialogue with scientists, politicians and conservationists with a view to protecting diversity. The TUI Group has set itself the strategic objective of valorising biological diversity on an enduring basis as the natural capital of holiday destinations and the living foundations on which tourism is founded – today and for future generations.

42

TUI Sustainability Report 2009/2010

TUI’s biodiversity strategy In 2008 TUI was invited by the German Ministry for the Environment, Nature Conservation and Nuclear Safety to join its Business & Biodiversity Initiative. This initiative highlights the important role played by the private sector in preserving the natural resources from which all life springs. The companies concerned commit to strong links between commercial operation and the safeguarding of species diversity. This campaign is run and supported by the German technical aid agency GTZ. By signing a Leadership Declaration at the 9th UN Conference of Parties to the Convention on Biodiversity (CBD), we pledged to back the German government’s initiative by taking concrete action to protect species and to integrate the preservation of biodiversity even further into our business practice. As a member of this initiative, TUI is assuming its share of the responsibility for helping the international community to achieve the goals set out in the Biodiversity Convention. In the light of this we have drawn up a Biodiversity Strategy which takes account of the goals formulated in the Leadership Declaration.


TUI biodiversity strategy objectives: 1. To integrate climate protection into our business processes effectively, we systematically analyse our commercial operations to determine their impact on biodiversity 2. In deriving the most urgent protective measures, we define suitable indicators and update them continuously through dialogue both internally and with outside partners. 3. The Group’s Environmental Management/Sustainable Development department directs all activities in the field of biodiversity and directly reports to the Executive Board. A whole range of approaches have already been developed, with concrete examples of successful biodiversity projects and further environmental measures all the way down the value chain. Our future focus will be to consolidate these initiatives, systematically derive lessons from the experience we have gained and promote best practice across the Group. 4. The commitment to protecting natural biodiversity is enshrined in the Code of Conduct of TUI AG. We implement this by setting targets for action and quality which are then translated into practical measures across the Group. 5. Regular reviews of our progress and broad internal and external communication, e. g. in the Annual Report and Sustainability Report and on our website www.tui-sustainability.com, serve critical analysis of our protective measures and help to build awareness and confidence among our guests, employees and partners. 6. We continually encourage the sensitivity of our partners throughout the value chain to issues of biodiversity, progressively involving them in our objectives. 7. We draw on the expertise of researchers and academics, government departments and NGOs, thereby building our competence.

Measures and processes: Respect for international agreements and conventions on protecting nature and species (e. g. the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora, or CITES) Support for a policy of designated protection areas in holiday destinations with clearly defined rules for protecting and using each category with a view to ensuring biodiversity (e.g. under the EUROPARC Federation’s European Charter for Sustainable Tourism in Protected Areas) Biodiversity campaigns in destinations to educate guests and local residents (e. g. cross-company campaigns like the Year of the Dolphin in cooperation with UNEP and the Convention on the Conservation of Migratory Species of Wild Animals [CMS]) Partnership projects with scientists and researchers (e. g. the scientific case study “Wildlife Watching and Tourism“ with UNEP/CMS) Active environment policy advice for decisionmakers and contributions to expert panels (e. g. on the “Principles for Preserving Biodiversity“) Partnerships with non-governmental organisations to support local biodiversity projects (e. g. support for the conservation society Archelon in protecting sea turtles) Sustainable product development (e. g. responsible whale-watching excursions which observe prescribed guidelines) Sensitising consumers to responsible interaction with flora and fauna in holiday destinations (e. g. through information in brochures, hotel folders and on the internet) Sensitising staff (e. g. through regular environment information in internal Group media and inclusion of “environment modules” in initial and continuous training)

TUI Sustainability Report 2009/2010

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3

Biodiversity Action

www.global reporting.org www.sustainable tourismcriteria.org

The value of biodiversity Initial findings from the study commissioned by the European Commission and the German Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) entitled “The Economics of Ecosystems and Biodiversity” (TEEB Study) demonstrate the enormous value of biodiversity and ecosystem performance world- wide. Coral reefs alone contribute 170 billion dollars a year to ecological value creation by protecting the coastline and acting as a nursery for young fish. These findings also show that the economic livelihoods of about half a billion people depend directly or indirectly on the reefs (see TEEB Climate Issues Update 09/2009, page 8). TUI would like to play its part in factoring the value of biodiversity more robustly into relevant decision-making processes at company sites and, in particular, holiday destinations. Implementing the Leadership Declaration We consistently pursue the objectives defined in our biodiversity strategy, drawing on the content of the Business & Biodiversity Initiative’s Leadership Declaration and the German Environment Ministry’s National Biodiversity Strategy. By signing the Leadership De- claration, we highlighted the particular significance of preserving biological diversity as a holiday destination asset. TUI believes that long-term valorisation of the natural environment will guarantee a future for tourism. We regard our biodiversity management as an instrument to minimise commercial risks while tapping into commercial opportunities. Below we list the seven pledges that TUI has under- taken as a member of the Business & Biodiversity Initiative and explain how we are putting them into practice.

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TUI Sustainability Report 2009/2010

(1) Analysis of commercial operations and their impact on biodiversity TUI has regularly monitored the environment in des- tinations, hotels and associated companies since the 1990s, steadily expanding its scope and taking its cue from the latest international standards (e.g. the Global Reporting Initiative guidelines and the Global Sustain- able Tourism Criteria). Biodiversity factors have played their part in this from the outset and are regularly revised and expanded in line with international rules. Analytical findings are used to describe current status and provide a basis for sustainability reporting. They also serve to identify risks and opportunities with regard to the various aspects of sustainability and biodiversity, and these are taken into account in present and future business operations. TUI Hotels & Resorts. Each year the TUI AG hotel brands report on their environmental and sustainability performance to the Group’s Environmental Management/Sustainable Development department. One biodiversity indicator is the distance between the hotel and any local conservation areas. About a third of the hotels in which TUI invests are close to protected areas. The operation of the hotel also has a direct effect on local biodiversity. Other important factors in our assessment are the hotel’s commitment to conservation projects and the observation of species that deserve protection in the hotel surroundings.¹ 1 In this way, the reporting system takes note of the Red List of Endangered Species published by the International Union for the Conservation of Nature and Natural Resources (IUCN). In terms of size, practicability and language, however, we can only make limited use of this instrument. We are working on a practicable approach.


Cruises. Biodiversity analysis in the Cruises sector primarily yields information about whether voyages cross ecologically sensitive areas and how this might affect biological diversity. Going ashore in protected areas that are otherwise difficult to reach and are therefore largely untouched can, in particular, result in lasting damage to an ecosystem if those who take part in the expedition have not been made sufficiently aware of the issues. Here, the boundary between commercial opportunity and risk is fragile, and must be regularly reviewed and weighed up. As a co-founder of the Association of Arctic Expedition Cruise Operators (AECO) and long-established member of the International Association of Antarctic Tour Operators (IAATO), Hapag-Lloyd Kreuzfahrten has been committed for decades to respecting the flora and fauna we encounter. As members of these associations, both Hapag-Lloyd Kreuzfahrten and Quark Expeditions conduct all visits to these destinations in accordance with the agreed behaviour guidelines.

through staff action or support for conservation projects). (2) Inclusion in the environmental management system and definition of indicators It is natural that holiday travel usually aims for beautiful landscapes, which often boast a great variety of species. Many of these will be “biodiversity hotspots”. Conservation International has identified 34 of these around the world. While they only account for 2.3 % of the Earth’s surface, over 50 % of the vegetation consists of endemic species and 42 % of their terrestrial vertebrates cannot be found anywhere else. A significant percentage of our guests in the classical operator business spend their holidays in countries with areas like this that provide homes to many species. All the activity that takes place there needs to be appropriately sensitive.

Destinations. The impact of our operator business on biodiversity in our holiday destinations is considered in the light of the Global Sustainable Tourism Criteria, which TUI took part in formulating in 2008. TUI ana- lyses the excursions we offer to conservation areas and adjoining zones. Other points of examination are land take-up by tourist infrastructure and how this influences natural habitats, and the incidence of protected areas and endemic species in our destinations.

Protected areas with a high degree of biodiversity can be impaired by tourism and by hotels in the vicinity. Proper management of the environment must include controlled disposal of waste and wastewater and continuous awareness-raising among guests, and these factors reduce the negative effects of hotel operation. That is why we have been keen to promote the implementation of environmental management systems in hotels for many years. It is also why we support sustain-able products and services in tourism and nature conservation projects to preserve biodiversity in the destinations.

Business partners and suppliers. TUI operators in the UK and Ireland, TUI Nederland and TUI Belgium use the European Travelife System to assess sustainability factors in tourism. Hotels can log on to this web-based system to verify the quality of their management system with regard to environmental and social issues. The subscriber is also offered tips on how to reduce the environmental impact of business activity and save on costs in the process. With a view to sustainable practices among tour operators, the check list headed “Nature conservation and biodiversity” also addresses commitment to preserving species (for example

(3) Biodiversity in the corporate structure Back in 1990 TUI was the first major tour operator in the world to appoint an environment officer and set up a department of environmental management, which has been expanding continuously. Biodiversity has been a priority in this commitment ever since TUI began working for the environment. The Group’s sustainability coordinators regularly exchange information about the initiatives they are taking and their approach to bio- diversity. There is a web-based platform for posting best practice, technical information and discussion papers. The database encourages an exchange of TUI Sustainability Report 2009/2010

Hapag-Lloyd Kreuzfahrten supports the Antarctic Research Trust (ART), which conducts scientific studies on Antarctic and sub-Antarctic wildlife within their habitats

www.biodiversity hotspots.org

The section on “Organisation” contains further details about how this has been anchored within the Group

45


3 experience about dealing with biodiversity issues and helps to publicise successful conservation projects within the Group. Documents with information for guests can for example, be downloaded here by anyone in the Group.

TUI defines the following quality and action targets which directly or indirectly address the preservation of biodiversity:

(4) Biodiversity targets The TUI Group’s Code of Conduct expresses a clear commitment to preserving natural biodiversity. This calls in particular for a prudent use of natural resources as one way of reducing the strain on the environment. A process of continuous improvement involving all Group employees is pivotal in this respect.

Sector

Basis/performance indicator

Targets for 2011 (or as stated) More internal and external communication in International Year of Biodiversity 2010

TUI AG

Internal and external communication on biodiversity in the Annual Report in the Sustainability Report   on the internet   on the internet   at TUI Green Days

TUI AG TUI Deutschland

Monitor TUI companies and destinations based on species preservation criteria

Expand monitoring processes, stronger integration of species preservation indicators

TUI AG TUI Deutschland TUI Service TUI Hotels & Resorts TUI Agencies

Combat trading in illegal souvenirs Detailed reports about trading in illegal souvenirs from 15 holiday regions Since 11/2009 “TUI‘s Little Guide to Preserving Species“ has been distributed in more than 20 holiday destinations

Sensitise guests and include the local population in information campaigns   Translate “TUI‘s Little Guide to Preserving Species“ into other languages for use across the Group

Implement (certified) environmental management systems From end of November 2009: 87 TUI hotels and companies certified under a recognised environmental standard, including 73 hotels under ISO 14001 (for a complete list of certified companies go to report.tui-sustainability.com)

Expand ISO 14001 certifications

TUI hotel companies (incl. TUI Travel hotel companies)

Projects to conserve species 116 hotels supporting specific projects to conserve species

46

TUI Hotels & Resorts

Use typical regional plants in designing hotel grounds

TUI Service

Nature adventure excursions Nature adventure excursions are offered in 28 holiday regions

TUI Sustainability Report 2009/2010

Expand activities in cooperation with local nature conservation groups   More projects to conserve species and protect nature in the holiday regions Use more endemic plants in gardens   Expand the nature-centred product portfolio in the holiday countries offered   Discuss the issue at the 2010 meeting of heads of destinations and the meeting of Sustainable Development Coordinators


(5) Internal and external communication on biodiversity TUI Annual Reports have described work in the environment field since 1995. The separate Environment and Sustainability Reports in recent years have publicised projects and action to protect biodiversity in specific chapters. In 2009 the Group website managed by TUI AG was revamped and now has an “Environment” section which provides a detailed account of our commitment to protecting species. Our employees are sensitised to issues like preserving biological diversity through the intranet and at annual information events known as TUI Green Days. This broad presentation of our activities in the field of biodiversity is intended to generate transparency on the inside and outside and momentum for the systematic improvement and crosscompany expansion of our activities to protect species. Clients. Since the 1990s, TUI has been keeping guests informed and aware about the environment, conservation and biodiversity through catalogues, posters, brochures and leaflets. Together with the Federal Agency for Nature Conservation (BfN) in Germany, TUI AG published a souvenir guide in 2009 which takes account of biodiversity issues. It is distributed in over 20 holiday regions where illegal trading in souvenirs often involves endangered species. Since November 2009, the TUIfly fleet has also included biodiversity ads produced by the BfN in the in-flight viewing schedule. (6) Sensitising and progressively involving suppliers As an integrated tourism group with its three business segments TUI Travel, TUI Hotels & Resorts and Cruises, the World of TUI offers the full spectrum of holiday and travel services. TUI monitoring instruments assist our companies, among other things, with raising awareness among business partners and their employees for the problems surrounding biodiversity.

Hotels. For many years we have been motivating our hotel partners by awarding titles such as the TUI Environment Champion or, within the Group, the EcoResort label for sustainable hotel management. Both awards include biodiversity issues among the criteria. The winners gain a competitive advantage because they are flagged up by the special label and explicitly mentioned in TUI catalogues and on the booking websites. In 2009 TUI Nederland set up a dedicated website to inform its business partners about the Travelife Standard, which also addresses aspects of biodiversity.

www.TUIGreen.com

www.tui-group.com on biodiversity

Business partners. To ensure the quality of excursion services, TUI Travel adopted guidelines in 2008 on protecting animals in captivity. The Group Captive Animal Welfare Guidance is geared to the animal and species protection guidelines from Travelife, which the company played a lead role in drawing up. Conservation associations were consulted over the Travelife Animal Attractions Handbook. The manual includes, for example, a quality check for dolphinariums based on the IUCN requirements and the provisions of the Washington Convention (CITES). (7) Cooperation and dialogue for biodiversity Many of our biodiversity activities are the outcome of dialogue and cooperation with conservationists and other non-governmental organisations (NGOs), academic and public institutions and associations like econsense. TUI firmly believes that competence, effectiveness, transparency and credibility can all be improved by working together. Bonn Convention. TUI’s key activities in the field of biodiversity include its support for the UN “Year of …” campaigns, which are coordinated by the Secretariat of the Convention on the Conservation of Migratory Species of Wild Animals (CMS). This ongoing cooperation is founded on a partnership agreement between CMS and TUI AG signed in 2005. During 2006, the Year of the Turtle, TUI guests were given leaflets with information about how to visit the beach without upsetting the turtles.

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3 In 2007/2008, Year of the Dolphin, there were numerous actions throughout the Group to raise awareness among TUI guests big and small about the protection of endangered whales and dolphins. In the same context, TUI also supported the 2008 WATCH Conference (Western African Talks on Cetaceans and their Habitats) initiated by the Bonn Convention with a view to designating a protected area for these creatures in the Eastern Atlantic. The event brought together various government representatives, NGOs, scientists and the business community. Year of the Gorilla in 2009 was devoted to protecting this species threatened with extinction in Central Africa, with an information campaign for TUI guests and local residents. TUI will use the International Year of Biodiversity 2010 to continue sensitising guests to the need to protect species. CITES. Every year millions of protected animals and plants and products made from them are traded. This has faced many species with extinction. Since the1990s, we have been involved in specialist exchange about this issue with the BfN, the German public agency responsible for observing the Convention on Illegal Trade in Endangered Species nationally. Warnings about illegal souvenirs have been included in TUI brochures ever since. Creating a protected section of beach for sea turtles to nest

EUROPARC. In 2009 TUI AG supported the inauguration of a new visitor centre at Torfhaus in the Harz Mountains. The exhibition module on National Natural Landscapes tells visitors to the well-known Charter park about biodiversity in this low mountain range. To mark the centenary of Europe’s national parks in 2009, TUI funded the EUROPARC publication “Living Parks: 100 Years of National Parks in Europe“. Balearic agreement. Since 2005 TUI and the Environment Ministry of the Balearic Islands have been working together to develop sustainable tourism, with

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conservation and biodiversity playing essential roles. This agreement, which was renewed in 2009, provided the basis for a reforestation project near Alcudia on Majorca. Projects and partnerships in destinations TUI companies are locally active in numerous concrete projects to protect endangered species and animal welfare. Morocco. The ROBINSON Club in Agadir is helping Sous-Massa National Park to provide a protected habitat for rare and endangered species of fauna. With the help of the German technical aid agency GTZ, nearly extinct species such as the screwhorn antelope and the Mhorr gazelle are now returning. Club guests can discover indigenous Moroccan flora and fauna in the adjacent national park. Cape Verde. RIU Hotels, in which TUI has a stake, and the local conservation group SOS Tartarugas were busy in 2008 and 2009 protecting the loggerhead sea turtle (Caretta caretta), a severely threatened species that lays its eggs along the shores of the Cape Verde Islands. A range of edutainment events were held to educate guests, who were also able to take part in moving these endangered nests to fenced off areas.


Cyprus. 20 employees of the destination agency Aeolos planted 500 trees in the Cypriot Trodos Mountains after the forest had been damaged by fire. About € 3,500 were also donated for other reforestation projects. Employees have also taken part in action to clean up beaches. Kenya. During Year of the Dolphin in 2007/2008, TUI and Pollmans Tours & Safaris in Kenya worked with local conservation groups to raise awareness among the indigenous population. Target groups were local representatives of tourism interests, boat owners and fishermen. They were informed not only about the general threat to these marine mammals, but also the immediate impact of boat excursions and fishing on cetacean habitats. As a result of the campaign, a large local association of boat providers along the southern coast of Kenya offered to gear their future activities to a jointly formulated Code of Conduct for sustainable boat trips. Another outcome was the broad replacement of fishing nets in the coastal region near Watamu. The local fishing community were able to exchange the fine nets they had been using for legal nets that complied with international standards free of charge. The illegal nets damage reefs and endanger young fish stocks, which in turn are the food source for dolphins. Greece. To protect the nesting areas of the endangered loggerhead sea turtle (Caretta caretta) on Crete and in Western Peloponnesia, Grecotel, a TUI participation, has been working for many years with Archelon, an association devoted to protecting species. Key protection measures include raising guest awareness and setting protective cages. During regular nocturnal patrols along the beach, which guests can accompany, the cages are placed over exposed clutches of eggs until the young are hatched.

Egypt. To protect coral reefs in the Red Sea, Egyptian Iberotels have been working with Hurghada Environmental Protection and Conservation Association (HEPCA). Guest information campaigns and regular stints of beach cleaning help preserve this underwater world so rich in diversity from damage caused by holiday-makers and pollution. Animal welfare worldwide. Animal welfare in holiday destinations – especially for cats and dogs – plays an important role in TUI’s environmental activities. In partnership with international and local organisations like the International Fund for Animal Welfare (IFAW), Dodecanese Animal Protection Society (DAPS) and dog rescue centres, we are committed to improving the lives of animals in our sphere of influence. TUI supports regular neutering campaigns, provision of veterinary services, guest education and collections of donations in the destinations. TUI Deutschland and the European animal welfare association ETN (Europäischer Tier- und Naturschutz e. V.) signed a cooperation agreement in 2009 to protect cats in hotel grounds on the island of Lanzarote. “Protecting Cats on Lanzarote” is a pilot project with TUI’s partner hotels that could be extended to other destinations if it proves successful. ETN has taken responsibility for neutering toms and treating sick animals. Unlike other aid projects in Southern Europe, the aim here is not to bring the strays back to Germany and find homes for them there, but to help the animals enjoy a better life where they are. Neutering has the added appeal of monitoring the feline population, containing its growth in a manner which does not harm the cats.

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3

Resource Efficiency

An initiative launched by TUI Deutschland and OSRAM in October 2008 promotes the use of low-energy light bulbs in hotels on Majorca

Energy, water and waste Our global activities call for natural resources to generate value. Efficient resource management in TUI’s companies helps to reduce the consumption of resources gradually while spending less on energy, water and waste disposal. Energy. Consuming fossil fuels like jet fuel and oil is a major contributory factor to global warming. The efficient use of energy in our business units steadily re- duces our impact on the environment and the climate. Drawing on renewable sources such as biomass and solar energy can make a particularly substantial contribution to saving other resources. Most of our energy is consumed in the operation of TUI Airlines. Wide-ranging programmes to enhance the efficiency of flight schedules, flight operation and technology can achieve big energy savings.

TUI Airlines target in the section “Climate Action”

The airlines in the TUI Group have drawn up a list of over 30 measures to cut flight emissions progressively. They include mounting winglets, regular water washing for engines, gradually renewing the fleet, adjusting speed and selecting optimum routes for flying and taxiing at the airport. Basis/performance indicator

Sector aQi Dorfhotel Grecotel Grupotel Iberotel Jaz Hotels RIU ROBINSON Club Sol Y Mar ROBINSON Club Fleesensee

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Energy consumption of TUI Hotels* in pro forma year 2009: 3,608 terajoules (3.8 % of total Group energy consumption), mostly for electricity * incl. TUI Travel hotel companies

Targets for 2011 (or as stated) Identify and implement measures to cut electricity consumption in hotels. To include: use of energy-saving light bulbs, intelligent setting of monitoring and control technology

Install a district heating power station to produce heat and power from cogeneration (by 2010)

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Efficient energy use is also a key aspect of environmental management in TUI Hotels & Resorts, and here too it contributes to protecting the climate: To cut power consumption on hotel premises, RIU has made it a purchasing policy that low-energy bulbs must be used in almost all areas of the complex. Energy management systems, master switches and thermostats (contact breakers) for air conditioning and heating are standard in all guest rooms with ROBINSON Club. Technical innovation: equipping the main laundry with an ozone system at the ROBINSON Club Cala Serena means washing machine temperatures can be cut by 80 % and daily truck deliveries are no longer necessary. Hapag-Lloyd Kreuzfahrten is investing in ships with cutting-edge environment technology. State-of-the-art engines permit the efficient use of fuels. When cruising in the Arctic and Antarctic, vessels use diesel instead of heavy oil. Adjusting speed reduces fuel input exponentially. Selective route management is practised by both Hapag-Lloyd Kreuzfahrten and TUI Cruises.


Water. The Earth is a watery planet. However, only 2.5 % is freshwater and only a fraction of that is fit for human consumption. This makes water one of the most precious of all resources. In some countries of the world, including many tourist destinations, demand for water exceeds natural reserves. That is why we are committed to the thrifty use of drinking water, and in our case the bulk of that is consumed by TUI Hotels & Resorts. We have instituted numerous measures to cut water consumption per bednight further. Examples include retrofitting water- saving technologies in bathrooms and detailed awareness-raising among our clients. Gardens are increasingly being planted with endemic species in response to climate conditions and they are irrigated with service water. RIU Hotels use xeriscaping in their gardens. This means investigating various factors, such as climate conditions, and then dividing the design into areas of high, average and low water consumption. The areas with high consumption, such as lawn, are kept to a minimum and only laid out in areas easily visible to guests. The choice of plants is based on this classification according to water requirements and other factors such as soil, light and temperature. Irrigation times are planned and adjusted to dry periods and humidity. Protective vegetal layers prevent erosion and soil dehydration, helping to reduce the need for irrigation and making the gardens more attractive. In Spain and Portugal, the ROBINSON Clubs have devised their own programme for sustainable water management. The Mediterranean clubs have deliberately dispensed with bath tubs in single and double rooms. Other savings result from sophisticated taps and dual flush for WCs. Apart from this, suitably selected plants in the Club gardens are drip-irrigated to prevent evaporation losses.

The ROBINSON Club Cala Serena has its own tertiary water treatment. Service water is used to flush all WCs and for irrigating the gardens. This saves 110,000 cubic metres of drinking water a year. Hapag-Lloyd Kreuzfahrten and TUI Cruises also make careful use of drinking water. Sea water is purified and treated on board using innovative technologies and can then be used as drinking water.

Sector aQi Dorfhotel Grecotel Grupotel Iberotel Jaz Hotels RIU ROBINSON Club Sol Y Mar

Basis/performance indicator

Water consumption by TUI hotels* in pro forma year 2009: 18,979,274 m続 (domestic services and irrigation) * incl. TUI Travel hotel companies

ROBINSON Club Daidalos

Targets for 2011 (or as stated) Identify and implement measures to cut water consumption, including: sensor water taps, dual toilet flush, fresh towels and bed linen as requested by guests

Grow 10 % more in-house vegetables and herbs without increasing water consumption

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3 Waste. Controlled waste management and recycling reduce the pressure on precious resources, cut pollution and make a major contribution to containing operating costs at company locations. TUI’s associated hotels have consistent strategies to cut down on waste. Sorting recyclable materials, progressively increasing the reutilisation rate and disposing of unavoidable residual waste in a due and proper manner are focal aspects of environmental management systems. With this commitment we have to push at boundaries in some countries, where municipal waste disposal and treatment do not yet meet our expectations – or those of our guests. Here we engage in cooperation to achieve tangible improvements through dialogue with local decision-makers and governments. The most effective ways of avoiding waste include purchasing policy (for example, buying local produce and bulk quantities), the wider use of deposit bottles and avoiding the individual portions and disposable packaging so common in hotels. RIU firmly rejects mini-portions of butter, jam and honey. That means 295 million individual packages that the RIU hotels did not use between 2000 and 2007, and 4,731 tonnes of plastic waste that the chain avoided generating. The Grecotels on Crete meet much of their demand for fresh fruit, vegetables and salad by buying organic produce from the island’s Agreco Farm. Purchasing local and regional products reduces carbon-emitting transport and cuts down on packaging.

Sector

Basis/performance indicator

Targets for 2011

Grecotel

Waste volume of TUI hotels* in pro forma year 2009: 65,494 tonnes

Expand the waste disposal system and improve recycling

Dorfhotel

* incl. TUI Travel hotel companies

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Implement measures to reduce waste volumes

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The ROBINSON Clubs avoid carbon miles and packaging by making their own sparkling table water in carbonators. Organic garden and kitchen waste is composted and put to good use. The ROBINSON Club Jandia Playa uses old cardboard boxes to package souvenirs for guests and to protect the works of art they can make in the studio. CILECCTA TUI AG is a partner in a consortium of 19 companies from 12 countries led by Nor-Tek (Norway) developing software to assess the life cycle cost of construction objects as part of an EU research mandate. CILECCTA (a user-oriented, knowledge-based suite of Construction Industry Life Cycle Cost Analysis software for pan-European determination and costing of sustainable project options) is the title of the four-year project launched on 1 October 2009, which takes account of construction costs but also subsequent operating, maintenance and disposal costs (i.e. the entire life cycle of a building). TUI is contributing around € 400,000 (including an EU grant of around € 190,000) and providing a hotel for the simulation of the application of the software.


Certifications

Continuous improvement Environmental management systems are voluntary instruments of precautionary environment protection for the systematic monitoring, mitigation and control of environment impacts. The internationally acknowledged environment standard EN ISO 14001 provided by the International Organisation of Standardisation (ISO) and the European Union’s EMAS standard are widely recognised as schemes for improving environment performance on a continuous basis. Every year an independent expert reviews compliance with requirements, the implementation of processes described in the environment handbook, and the environment programme. Environment policy is pivotal to implementing an en- vironmental management system if processes of relevance to the environment are to be properly anchored throughout the company. A company will only be granted certification and receive the certificate if all requirements have been met. By November 2009, 87 TUI hotels and companies had been certified according to a recognised environment standard. A total of 73 (last year: 68) hotels run an environmental management system based on ISO 14001. Other hotels have gained certification under, for example, the Austrian ecolabel or Travelife, a standard for the tourism industry that has been promoted by the European Union.

The growing number of certified TUI companies demonstrates the systematic integration of environment and sustainability objectives in business processes. Apart from helping to improve environment performance continuously, these systems also serve the early detection and management of risks. We remain committed to promoting and expanding certification both locally and Group-wide.

The full list of associated companies that have received certification can be found on the internet: report.tui-sustainability.com

TUI AG’s ISO certificate

Sector

Performance indicators

TUI AG TUI Deutschland TUI Dienstleistungsgesellschaft

Implement (certified) environmental management systems in Group companies

Grecotel

TUI AG, TUI Deutschland and TUI Dienstleistungsgesellschaft succeeded in September 2009 in having the environmental management systems at their headquarters (re-)certified and were able to improve their sound environmental performance at company locations. Long-term involvement in the Agenda 21 project Ă–KOPROFIT and successful review have also confirmed local commitment to sustainability.

Grupotel End of November 2009: 87 TUI hotels* and companies certified under a recognised environmental standard, including 78 under ISO 14001

Iberotel ROBINSON Club

TUIfly Nordic

* incl. TUI Travel hotel companies

TUIfly Nordic first TUI airline to gain ISO 14001 certification

Targets for 2011 Maintain and develop the environmental management systems in accordance with ISO 14001 Expand ISO 14001 certifications Expand existing ISO 14001 certification Expand ISO 14001 certifications Establish an environmental management system in the ROBINSON Club Maldives and further develop the environment strategy Maintain and expand the environmental management system in accordance with ISO 14001

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4

Our People


We regard the commitment and creativity of our employees, efficient working practices and a good working atmosphere as essential prerequisites for maintaining a good reputation and achieving business success. Our corporate culture is characterised by mutual respect, team spirit, openness and professionalism. Employees, customers and partners form a unique network featuring an exchange of knowledge, intercultural cooperation and individual development opportunities.

Team Spirit

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4

Training

In order to offer young people opportunities to start their career and secure the Group’s competitiveness in the long term, the German companies offered vocational training for a total of about 500 young employees as of the balance sheet date 2009. The excellent quality of the training has been confirmed time and again by the chambers of industry and commerce in granting awards to those finishing their traineeship, some of whom have been crowned “best regional trainee”. Around 70 % of those who finished their training in 2009 were offered an employment contract. At 5.3 %, the proportion of the headcount in training declined year-on-year due to the divestment of Container Shipping. Overall, TUI offered traineeships in 13 different jobs and two sandwich courses, including commercial clerk, travel advisor and the Bachelor of Arts in Tourism.

The 2008/09 trainees receiving their certificates

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ROBINSON Hotel School. Under the motto “Success through vocational and continuous training”, ROBINSON opened a hotel school, the Centre Formation Apprentissage, in the ROBINSON Club Agadir in Morocco in May 2008. The hotel school offers young people aged 18 to 30 the opportunity to complete a 12-month training programme with the hotel company, covering reception, house-keeping, bar & restaurant and kitchen.

TUI Sustainability Report 2009/2010

The programme is offered by the Club in partnership with the German technical aid agency GTZ and the regional vocational training agency of Agadir. In the first year 2008/09, 55 trainees completed their statecertified training course. In the second year 2009/10, 60 trainees were chosen from over 1,000 applications from all over Morocco. The Senegalese Ministry for Education is already examining whether the successful German-Moroccan scheme would work in Senegal. ROBINSON Club Agadir sees the vocational training scheme as an opportunity for young Moroccans in a country where tourism has grown very rapidly. The local transfer of knowledge opens up new prospects for the trainees and contributes substantially to the development of the destination. ROBINSON trains its own junior staff and offers permanent jobs to many of the trainees who complete the course. TUI Youngsters. TUI Youngsters, located in Hanover, is a commercial operation within TUI Deutschland and is completely managed by trainees from all departments, B.A. students and interns working for the companies taking part in the scheme, i. e. TUI AG, TUI Deutschland and TUI InfoTec. Working for TUI Youngsters is regarded as an ideal complement to their training. The trainees learn how to think and act in an entrepreneurial manner and gain key core competences such as customer orientation, cost awareness, decision-making skills and, in particular, independence and initiative. The goals have been clearly formulated: Getting to know business processes with all the tasks and workflows involved, generating and implementing business ideas, taking responsibility for what they do and decision- making. The young employees also learn how to organise their own work, manage their time and handle finances professionally with constant budget moni- toring.


HR Development and Staff Motivation

In today’s business world, with its many social and economic changes, a company’s employees are its crucial competitive factor. Winning, retaining and promoting employees is thus the key challenge for companies, including TUI. Demographic change Demographic change is among the key issues on the sustainability agenda. Under the patronage of Vladimir Spidla, EU Commissioner for Social Affairs, econsense, the Forum for Sustainable Development of German Business, co-founded by TUI AG, has joined with a number of companies to form the European network Demographic Change Laboratory, a think tank dealing with the strategic challenges of demographic change in Europe. It engages in dialogue with stakeholders to develop strategies for sustainable HR policies in Europe, promote a shift in corporate paradigms, strengthen competitiveness and actively support the CSR Alliance launched by the EU Commission. Further details at www.econsense.de www.demographicchange.info www.demographic-risk-map.eu Development of senior and executive staff In 2009 numerous employees and managers benefited from development schemes. They received assistance and active support from various quarters including TUI Consulting & Services GmbH. The Group’s procedures for diagnosing potential focused on recruiting junior staff and developing managers. Apart from the tried-and-tested assessment centres, TUI drew increasingly on innovative management profiling. Selective training served above all to improve capacity planning and the efficacy of tourism purchasing negotiations. These training priorities were flanked by strengthening intercultural and language skills for all teams working on a cross-national basis. Now that new IT systems have been introduced in distribution, special seminar

series have been designed to harmonise the networking of front, middle and back offices. In order to secure the recruitment and development of junior staff for technical and management positions at all levels in the long term, the International Management Trainee Programme of the TUI Group has offered attractive opportunities for university graduates for many years. In 2009, the programme was given a stronger international orientation and enabled junior management staff from all over the world to gain insights into all facets of the worlds of work in tourism. The trainee assignments formed an important basis for stronger cooperation and integration within the Group. In addition, further trainee programmes tailored to the specific needs of tour operation and airlines were run at the national level. After they began in July 2008, TUI Travel also implemented three additional leadership programmes in Costa Rica in 2009. Almost 80 managers took part in one of the five rounds of the four-day programme. Apart from consultation and hands-on assistance for a Costa Rican community, the participants gained valuable cross-divisional and intercultural experiences. TUI excellent! Under the motto “TUI excellent! You are the expert”, TUI Deutschland had already launched new, self-reliant process management in 2008. The project aims to optimise functions and business processes so as to improve profitability and competitiveness, but also customer and employee satisfaction. Based on workplace analyses and optimisation workshops, over 800 immediate initiatives were prepared during the reporting period with a view to securing continual process optimisation. They were implemented autonomously by employees and managers. To optimise workflows on a continuous basis, TUI Deutschland also started to create broad transparency by standardising process visualisation. This extensive involvement encourages employees to develop efficient and sustainable workflows.

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4 Employee shares. For many years now, TUI AG has been running a programme to issue employee shares, enabling company employees to participate in profits. This programme is open to employees and pensioners of German companies and employees in several other European countries. In 2009, the beneficiaries were again offered the chance to subscribe to up to 250 shares at a reduced price in 2009. TUI Travel PLC also offers UK staff an opportunity to participate in the company by buying shares at reduced prices.

TUI Spirit. The TUI Spirit initiative, launched by TUI Travel in 2008, expresses the vision “We seek to create extraordinary travel experiences”. In 2009, new activities and projects were launched to spread the TUI Spirit to additional companies. TUI Spirit workshops were held at TUI Deutschland in Hanover and at TUI España. The participants worked together on ideas for implementing the TUI Spirit values. A comprehensive multi-media presentation, which was made available across the Group, documented from a management and employee perspective how the TUI Spirit had been successfully implemented in the individual source markets and sectors.

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Great Workplace Award. In 2009, ROBINSON Club, German quality and market leader in the premium segment for club holidays, received the Gallup Great Workplace Award for the first time. ROBINSON is thus one of only 23 companies worldwide with the most committed and productive employees. The TUI hotel company ROBINSON is the only German company to receive an award. Over 15 million employees and a total of 300 companies worldwide took part in the survey on employee commitment. The international employee survey has shown that a particularly noteworthy feature in ROBINSON is its employees’ strong emotional bond with the brand.


Health and Safety at the Workplace

Health management The “fit with TUI” programme is an example of modern health management. In accordance with the Luxembourg Declaration, signed by TUI AG, the Group offers a series of measures underlining the significance of health and well-being at the workplace. Apart from opportunities for exercise, such as in company sports, there are health seminars designed for particular target groups and programmes for the prevention of substance abuse are offered. Employees can also take part in annual campaigns such as flu vaccination, eye tests and prevention of/therapy for back problems. The highlight in 2009 was the “Check in for a check-up” campaign, which offered employees a chance to take part in a range of cancer screening measures. Health activities are devised and run in consultation with the employees. This involves regular staff information campaigns and surveys, and meetings between the health coordinators, the works doctors, health and safety officials and representatives of management and staff. Company health insurance fund. The company health insurance scheme TUI BKK offers a comprehensive range of services providing cover for illness and preventive health services. Since the introduction of the German Health Fund in 2009, members’ contributions have no longer been paid directly into the scheme but allocated as per capita lump sums based on age, gender and risk.

Corporate Health Award 2009. TUI was awarded the Corporate Health Award 2009 for its exemplary health system at the Hanover site and ranked among the TOP 50 in Germany. The Corporate Health Award is granted by Handelsblatt, TÜV SÜD Life Service and EuPD Research under the aegis of the German Ministry for Labour and Social Affairs to companies demonstrably showing above- average commitment to their own employees’ health, pursuing a sustainable HR strategy and documenting these activities accordingly in the framework of the Corporate Health Audit. Health and safety systems Health and safety is a key aspect of everyday working life. In cooperation with health and safety experts, activities at the Hanover site included workplace- specific hazard analyses, permanent training of first-aid and fire protection assistants and noise measurements. Employees’ health also enjoys top priority at the international level. Based on a health and safety declaration, there are various systems for distributing relevant health and safety information, disseminating best practice among the workforce and training new staff.

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4

Work-life Balance

nal information sources – the Intranet and staff newsletter. Employees on parental leave can also spend brief periods filling in for colleagues, which helps them keep in touch with company life.

Little World of TUI

Work-life balance TUI is one of the founding members of the national “Success factor family” network. Group-wide programmes are aimed at enabling employees to achieve a better work-life balance. Employees can obtain financial support for child-care or take their children to the company crèche, the Little World of TUI, in Hanover. The Group also offers flexible models to work parttime or from home and an option to apply for an extended period of unpaid leave. Little World of TUI. With our Little World of TUI, we have created a crèche with places for 15 children aged one to three. Three state-recognised nurses are on site from 8 a.m. to 5 p.m. every day to take care of the toddlers. The Reggio Emilio method used by the crèche is a holistic approach to promote and retain children’s experimental learning skills. The crèche is based on a generation mix approach: encounters between toddlers and senior citizens promote exchange between generations. Close contact during parental leave. TUI is an employer that likes to support its employees during pregnancy and after childbirth, for instance through personal interviews to discuss all aspects of returning to work. Employees on parental leave can take part in further training and continue to make use of our inter-

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Pension schemes The companies in the TUI Group offer their em- ployees many different ways of participating in private pension schemes, alongside the company-based pension schemes funded by the employer. Specific legal conditions and the economic position of each company are taken into account in designing the models. Private pension schemes for employees in Germany were devised so as to take advantage of fiscal and social security opportunities. Apart from pension fund contracts and direct insurance schemes, private pension insurance funds (“Riester” pensions) were offered to obtain co-sponsorship from public funds. In addition, deferred compensation models were offered to enable employees to choose their pension scheme according to their individual preferences. Part-time early retirement The German Group companies made substantial use, in their HR and succession planning, of the opportunities provided under the German Part-Time Early Retirement Act to shift gradually from employment to retirement. In almost all cases, working hours in the part-time early retirement phase were based on a block model, enabling the participant to retire early. The resulting assets for the employees working under part-time early retirement contracts are hedged against employer insolvency using a capital investment model in accordance with the provisions of the German Part-Time Early Retirement Act. Approx. € 9.6 million were provided for the 267 employees working under part-time early retirement contracts.


Diversity

Diversity Charter A global player such as TUI lives out diversity in everyday operations. That is why TUI AG has committed to the Diversity Charter, a national German corporate initiative to promote diversity, fairness and respect in companies. Over 600 companies have meanwhile signed up to the initiative for tolerance and fairness in corporate culture. In signing the Charter in May 2008, TUI AG committed to creating a working environment free from prejudice where nobody is excluded. Origin, cultural specificities and health are topics highlighted by TUI in this context in the form of projects.

Some things we do to promote diversity: Intercultural environment, open dialogue, corporate citizenship, e. g. TUI trainees and staff coaching students with learning disabilities in reading aloud, Open Door exchange programme for children of employees, TUI sponsorship and TUI Foundation projects Health promotion schemes, e. g. seminars on trainee health, first aid, nutrition and exercise. Family-friendly schemes

Staff with disabilities People with and without disabilities are already working side by side at TUI. TUI’s German companies currently employ around 230 employees with a severe disability. TUI AG seeks continuous improvements in the integration of people with disabilities in the Group. Every new vacancy is therefore looked at to see whether it can also be performed by a trained employee with a severe disability. The TUI Group also outsources certain external services to sheltered workshops. Trainees with disabilities have to meet the same conditions as any other applicant, which means they need the right qualifications. They are expected to show commitment, motivation and a sound school-leaving certificate, above all in German, English, Maths and IT. Of course, they should also have an all-round interest in travel.

Apart from integrating and assisting colleagues, including their children and in particular young people from immigrant families, TUI AG supported international youth exchange schemes for employees’ children and ran TUI Initiative schemes for people with health impairments in 2009.

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Co-determination

Employee representation In the TUI Group, employees are represented nationally and internationally, both in individual Group companies and at Group level. In accordance with the staff participation culture fostered by the Group, employee representatives were involved in strategic decisions and the implementation of these decisions in their respective areas of responsibility in the interest of the overall workforce and supported corporate interests in doing so. TUI European Forum The TUI European Forum was established even before the German parliament adopted an Act on European Works Councils in 1996. Its composition results from the number of employees in the business sectors and the respective countries in the European Union, the European Economic Area and Switzerland, in which TUI directly or indirectly holds majority holdings. In 2009, a total of 53 representatives from 15 countries were delegated to the TUI European Forum. Group management briefs the Select Committee of the TUI European Forum several times a year and attends meetings to discuss the current economic and HR situation within the Group. The TUI European Forum meets once a year. It makes a significant contribution to the international character of the Group and acts as a multiplier to enhance the transparency of transnational corporate decisions. Select Committee of the TUI European Forum 2009

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Health and safety and environmental protection committee of the Group works council The health and safety and environmental protection committee comprises an equal number of employee and employer representatives. Six members of the Group works council discuss current Group developments and issues with six employer representatives from different sectors and companies.


Innovation and Ideas

Quality pledge For our customers, the “TUI brand” is a quality pledge promising professional, comprehensive performance, reliability and competitive prices. In November 2009, TUI topped the Superbrands ranking as the most popular brand among German consumers in the tour operator category. In a pre-selection stage, independent economic experts from Superbrands nominated outstanding product and corporate brands in a given country, which were then evaluated by an independent jury. The evaluation criteria included brand dominance, customer loyalty, goodwill as well as longevity and overall brand acceptance. All TUI employees set out to fulfil this quality pledge with their strong motivation and skills. Our distinctive innovation culture contributed substantially to this effort. Innovation management Innovation is one of our key corporate values anchored in the Code of Conduct of the TUI Group: We promote creativity and the commitment of all employees at their workplace and are open to new ideas and solutions. Our ambitious corporate goals can only be achieved through constant efforts to improve quality and adjust to current framework parameters, trends and customer wishes.

In September 2009, TUI ranked first in the category “Study, round and active trips” in the Travel One Compass awarded by the tourism trade journal Travel One. Around 1,600 travel agencies took part in the readers’ poll. For long-haul tours as of 1 November 2009, TUI guarantees implementation of round trips booked by at least two persons and thus provides customers and travel agencies with a maximum of planning certainty. Innovation workshops. To follow up on the TUI Innolympics, innovation meetings and workshops are organised on a regular basis. Those in charge of innovation within the tourism source markets meet at these workshops to discuss up-to-date innovation topics and the implementation status from previous workshops. Apart from internal TUI topics, at least one macroeconomic question is discussed. In 2009, for instance, the focus was on “The impact of the financial crisis on the tourism sector”. The goal is to define areas of opportunity around the general topics. With this internal exchange, TUI seeks to define synergies and optimise processes within the Group. In order to expand innovative knowledge and practice, a cross-sectoral exchange with companies operating in other sectors, such as Volkswagen, is an essential element of the overall innovation process. This mutual exchange enables both companies to gain insights into each other’s inner workings in order to recognise parallels and derive potential approaches.

TUI Innolympics. The Group-wide TUI Innolympics were launched back in 2006. From approximately 3,200 ideas submitted by employees, seven local innovation teams identified 240 ideas for subsequent development into viable, marketable concepts. Since 2008, the best concepts have been implemented within the TUI Group in numerous initiatives.

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Society


Responsibility Globalisation brings people and markets together. We believe we have an obligation to make our own worldwide contribution as a Global Corporate Citizen. We therefore engage in economic, ecological and social development at our sites and in our destinations. This awareness of our responsibility to society and the environment is a key factor in the sustained success of our enterprise.

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Committed to Human Rights

More on the TUI Group’s Code of Conduct on page 10

Human rights The TUI Group’s Code of Conduct enshrines our commitment to observe human rights. We respect the dignity, privacy and personal rights of every individual. We will not tolerate different treatment on grounds of nationality, gender, race, skin colour, disability, social origins, religion, beliefs, age or sexual orientation, and nor will we tolerate child labour or indecent working conditions.

More on the Principles of the UN Global Compact at www.unglobal compact.org

Apart from the fundamental values that are rooted in our Code of Conduct, we have assimilated the ten principles of the UN Global Compact relating to hu- man rights, labour rights, environment protection and fighting corruption, and we seek to disseminate and implement these jointly within our sphere of influence. As an affiliate member of the United Nations World Tourism Organization (UNWTO), TUI has officially signed up to the UNWTO Global Code of Ethics for Tourism. Mandated by the United Nations general Assembly, UNWTO plays a pivotal role in promoting and developing tourism, which contributes to economic development, international understanding, peace, prosperity and universal respect for human rights and the basic liberties of all, regardless of race, gender, lan- guage or religion. In the Preamble to the Global Code of Ethics for Tourism, UNWTO makes particular reference to the following international agreements: the Universal Declaration of Human Rights the International Covenant on Economic, Social and Cultural Rights the International Covenant on Civil and Political Rights conventions and recommendations adopted by the International Labour Organisation (ILO) in the area of collective conventions, prohibition of forced labour and child labour, defence of the rights of indigenous peoples, and equal treatment and non-discrimination in the work place

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The Global Code of Ethics contains the following Articles: 1. Tourism‘s contribution to mutual understanding and respect between peoples and societies 2. Tourism as a vehicle for individual and collective fulfilment 3. Tourism, a factor of sustainable development 4. Tourism, a user of the cultural heritage of mankind and contributor to its enhancement 5. Tourism, a beneficial activity for host countries and communities 6. Obligations of stakeholders in tourism development 7. Right to tourism 8. Liberty of tourist movements 9. Rights of the workers and entrepreneurs in the tourism industry 10. Implementation of the principles of the Global Code of Ethics for Tourism Fighting poverty TUI Nederland is a founding member of the Travel Foundation Nederland. This trust promotes sustainable development in tourism destinations by supporting local projects to protect nature and preserve cultures. In 2008 TUI Nederland worked with Cordaid and PASEO to set up the Chocolate Tour in the Dominican Republic. This excursion, provided by TUI in partnership with others, generates additional income for local cocoa growers, thereby helping to combat poverty. TUI Travel joined the British Travel Foundation in helping to introduce a system whereby proceeds from visiting 26 Kenyan Massai villages were used for the benefit of the village community. In the first six months since the project began, the income of Massai in the villages that were participating in the scheme multiplied several times over.


ECPAT In 2009 TUI continued its worldwide commitment to protecting children from sexual exploitation. The guiding principles are drawn from a Code of Conduct drawn up for the tourism industry by ECPAT (End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes), which has been signed by most of our Group companies either directly or in their capacity as members of national associations such as the Bund für Tourismuswirtschaft (BTW), the Tour Operators’ Initiative for Sustainable Tourism Development (TOI), the Deutscher ReiseVerband (DRV), the Österreichischer Reisebüro Verband (ÖRV) in Austria and the Association of Belgian Tour Operators (ABTO). Our Group companies have met their pledges under the ECPAT Code by means of the following action: Information leaflet for guests. In autumn 2008 TUI Deutschland helped to print and distribute the revised edition of a folded ECPAT leaflet about the risks of abuse that children face. It is distributed to TUI guests in all relevant destinations during the Welcome event. Keeping employees informed and aware. In spring 2008 TUI AG organised distribution of a training brochure for tour reps in over 80 destinations, drawn up in partnership with ECPAT. That same year TUI Deutschland supported a cross-sectoral DRV training event in Phuket (Thailand) which aimed to bring together tour reps, hotel managements and local authorities in the destination and sharpen their awareness of the issues. In autumn 2009 an international strategy workshop on implementing the ECPAT Code of Conduct was held in Thailand. The agenda included two representatives of the regional TUI tour management, who talked to over 80 participants, most of them in the hotel trade, about TUI’s commitment to protecting children from sexual exploitation. Since the summer of 2009, the phenomenon of child prostitution has been included in TUI’s internal destination monitoring.

Clauses in provider contracts. TUI Travel’s new Sustainable Development Addendum for hotel contracts contains detailed terms relating to protection from child prostitution as part of the minimum social and ethical requirements. Signatory hotels undertake to ensure that children are protected on accommodation premises. Employees must be aware of the ECPAT Code of Conduct and be capable of acting appropriately. Suspicious behaviour must be reported to the local authorities. The Addendum is the first document with scope beyond the Group itself to express objectives in this field.

www.ecpat.net

Customer information campaign. Apart from distributing the ECPAT information leaflet in all hotels at relevant destinations, our guests are made aware of the issues by means of information in hotel folders, tour brochures, articles and ads in in-flight magazines and videos and on the Web at www.tui-sustainability.com. Staff training. At the meeting of TUI destination managers in spring 2009, TUI Deutschland arranged a display area in which the regional crime investigation agency and ECPAT took part. TUI Deutschland also raised the issue at its workshops for hotel purchasing staff in Germany. TUI tour guides on continuous training during the financial year were also sensitised to the need for child protection in a dedicated module. ECPAT volunteers were invited to take part in the TUI Green Days 2009, run by TUI AG and TUI Deutschland, where they talked to employees at the TUI sites in Hanover about their work. Corporate principles. By expressly committing to respect human rights in the TUI Group’s Code of Conduct, we are voicing our stand against violations of human rights, in particular in the form of the sexual exploitation of children.

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Annual reporting. TUI reports regularly on current activities and projects in the Annual Report from TUI AG, in our Sustainability Report, and on the intranet and internet. Regular reporting to The Code is done either directly or indirectly via the associations. The Code is the international campaign to implement ECPAT’s aims in the tourism sector (www.thecode.org). TUI has been supporting ECPAT’s work as an active funding member for many years.

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Corporate Citizenship

TUI Foundation Through the TUI Foundation, TUI AG is engaged in public works in the immediate environment of its central operations in the German State of Lower Saxony. The decision to set up this foundation was taken in 1998 to mark the 75th anniversary of the company Preussag AG (now TUI AG). It was created in 2000 as a not-for-profit trust under private law and domiciled in Hanover. Its equity is worth twelve million euros, and the money spent on funding is derived from the investment of that capital. The TUI Foundation has set priorities in the fields of education and training, research and science, the arts and culture. Its special focus is on projects for children and young people. “We are the Future” Award. The TUI Foundation presented a new award for the first time in 2009: “Gemeinsam in Hannover – Wir sind die Zukunft” (Together in Hanover – We are the Future). It was designed primarily for non-profit projects for the benefit of children and young people which encourage them to get along together and a team spirit. It is to be awarded annually and is worth € 10,000. It aims to encourage common purpose, non-violence and cultural openness and above all to make them an enjoyable and real experience. From a total of 77 entries, the expert jury selected six projects, including three special prizes, to receive the award. The wide response to the competition shows just how many excellent projects there are for children and young people in Hanover. As a followup to the competition, a forum was held in November 2009 to present the projects. The administration of he state capital and the TUI Foundation are working together to pick up the experience, knowledge and information derived from these projects with children and young people and pass them on, in particular by enabling individuals and associations with a knock-on influence to enter into dialogue on the subject. Research and science. The Rudolf Schoen Prize worth € 20,000 for a young doctor or researcher at the Medical University of Hanover (MHH) was awarded for the 21st time. The award is made for an outstanding clinical study published in a scientific journal. In 2008 it went to

www.tui-stiftung.de 2009 award winner Dr Julia Skokowa with Prof. Dr Welte of Hanover Medical University

Prof. Dr Bernhard Schieffer, Senior Physician at the Cardiology and Angiology Clinic, for his medical publication demonstrating possible genetic causes for cardiovascular risk. The award was won in 2009 by Dr Julia Skokowa at the MHH Institute of Molecular Haematopoiesis for her pioneering insights into the mechanisms of vitamin B3, opening up new prospects for immunotherapy and treatments for blood cancer.

For four years now the TUI Foundation has been funding research that accompanies preventive efforts to provide early support for young families. “Pro Kind” is a pilot project to help pregnant women and their families in difficult social circumstances and to stimulate healthy development in children.

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A jury of reputed names chose the winner (left to right): Ulrich Neufert, chief editor of Hannoversche Allgemeine Zeitung, Stephan Weil, Mayor of Hanover, Bishop Margot Kässmann, Rainer Feuerhake from TUI AG Board and Dr Michael Frenzel, CEO of TUI AG

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5 Elke Hlawatschek, Trust Secretary of the TUI Foundation: “All our projects contribute a little bit to making sure that we do the research we need for the future, that children and teenagers have better opportunities, and that we do justice to our responsibility.”

A conference was held in November 2009 to present similar pilot projects and test their practical viability and efficacy. This is part of a national programme to provide sure-start assistance to parents and children and establish social early warning systems for families at risk, which is being organised by the German Ministry of Family Affairs, Senior Citizens, Women and Youth. Education and training. In 2009 the TUI Foundation funded eight projects in Lower Saxony, including two courses teaching wind instruments and a project to improve the reading skills of primary school children. In the field of training, there was funding for two facilities teaching young unemployed people the skills they still needed in order to enter a vocational training scheme. The foundation also continued to sponsor five additional traineeships for disadvantaged teenagers in cooperation with Paritätischer Landesverband Nieder- sachsen, the regional federation of social welfare associations. At the Paul Dohrmann School for pupils with special educational needs, the TUI Foundation is helping a project called “TeamSpirit for our School”. The active learning designed especially for these pupils is to encourage social skills, creativity and an understanding of the natural environment, with a view to helping these youngsters choose a career. The aim is to provide important key skills that will enable them to make deci- sions about what they want to do and improve their opportunities in the labour market as a result. The TUI Foundation is committed in Lower Saxony to the START programme launched by the Hertie-Foundation. A grants scheme offers talented and committed youngsters from immigrant families a better chance of pursuing advanced education and, consequently, integrating and participating actively in society. Many of the grant-holders have a keen interest in sport as a balance to the tough academic demands they face.

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Football forges bonds between people regardless of their origins, religion or colour. That is an experience shared by the 27 girls and boys on the START programme who took part in the Holiday Football Academy in Barsinghausen near Hanover in July 2009. The TUI Foundation supported this event, which centred on how sport promotes integration. Over a camp fire, the participants talked about the key messages of integration that are being promoted by the German Football Association, but also about discrimination in soccer. Arts and culture. Funds were made available for a theatre production at the junges schauspielhannover, where youngsters wrote and staged their own play. At the Theaterformen festival in Hanover, a prize was awarded to the long-term project “My Grandparents – Memory Office” organised by the Swiss artist Mats Staub. The collection of stories about grandparents aims to build a bridge between the generations. Since October 2009 the theatre Schauspiel Hannover has been hosting a series of meetings with well-known authors from the literary paper lettre international, who are asked to talk about their views on major issues of our day.


Globally active – Globally engaged

TUI sponsorships Every year since 1995 TUI employees at the company sites in Hanover have supported a charitable project in the region. Officially recognised organisations, trusts and associations devoted primarily to helping children in distress are proposed by committed colleagues and selected in a company ballot. In 2008 the choice fell upon a non-profit-making association called Aktion Sonnenstrahl (Ray of Sunshine). The initiative takes care of more than 600 children in Hanover, organising children’s lunches in urban hotspots, helping with homework and arranging games and supervision. For twelve months, TUI staff collected money for the project by selling things, drumming up donations and holding a Christmas tombola. They were able to hand over € 46,500.

Staff commitment One firm feature of the International TUI Management Trainee Programme is the Social Day. In 2009 the trainees spent a day with a group of pupils at the Education Centre for the Blind. They joined two drama teachers in rehearsing Christmas scenes with the children for a future public performance. The trainees also took on ten homeless people, inviting them into the Hannover 96 stadium for a match and presenting them afterwards with thermal sleeping bags. For TUI Deutschland employees engaged in studies for their B. A., social commitment is a constituent part of the sandwich course. In 2009 they opted for the Eilenriedestift, a residential complex for the elderly. Once or twice a month the Bachelor students devote their time to excursions, evening games, discussions and barbecues with the ageing residents.

In 2009 the donations from TUI staff benefited Mittendrin, an association in Hanover that works for the social integration of people with disabilities. Children in particular are helped to escape social isolation and given the opportunity to take part from the outset.

www.fhaonline.org.uk

Pupils in Hanover were delighted at the support for Aktion Sonnenstrahl in 2008

The staff of TUI Travel in the UK sponsor the Family Holiday Association. It offers recreational breaks and holidays to families who cannot normally afford them. The Family Holiday Association was founded in 1975 and has so far enabled more than 125,000 children and their families to have a holiday experience. Thanks to the commitment of TUI Travel, especially TUI UK & Ireland and Thomson Airways, more than 1,600 families were helped in 2009 alone. The employees of TUI UK & Ireland also provide assistance to the Born Free Foundation, with whom there is a long established partnership. Under this sponsorship, wide-ranging action by the companies has resulted in the collection of over £ 2.5 million.

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www.diversitycharter.org

As a signatory of the Diversity Charter, TUI AG actively supports this German initiative for tolerance and fairness in corporate culture. One of the many projects in this context to be launched in 2009 was devoted to coaching pupils in reading. Once a week, TUI coaches (trainees, staff and their children) visit a school for children with special educational needs and encourage their skills in reading aloud. At the end of this period, the pupils took part in a reading contest.

TUI employees give their time as reading coaches

A Future Day, held since 2001, is designed to help 11- to 15-year-olds fine-tune their career choice as early as possible. This is an annual opportunity for the children and grandchildren of TUI staff in Hanover, along with the children they have decided to sponsor, to explore the working world at TUI.

HR employees with TUI Deutschland and TUI AG in Hanover took part in a project called Fit to Apply, offering pupils in the city advice about submitting their applications for a traineeship. At a Training Day, they were able to provide personal answers to the questions and needs of young people. As part of the corporate volunteering programme Project Discovery, ten employees of TUI UK supported Travel Foundation projects in Cyprus, Sri Lanka, Mexico, Egypt and Brazil. These colleagues spent up to two weeks working actively in these ventures and were able to contribute a range of experience from their day-today work. TUI Travel is planning to continue these activities. Projects and initiatives to develop destinations TUI Travel is a member of the British Travel Foundation. The aim of this association founded in 2003 is to support the sector in promoting sustainable tourism. Since its foundation, the TUI Travel companies have conducted a wide range of activities and collected ÂŁÂ 1.5 million for worthwhile projects in the destinations. The focal purpose of this engagement is to promote local communities, to preserve culture and traditions and to improve the living conditions of local people by enabling them to share in the value generated by tourism, especially in Mexico, Sri Lanka, Brazil and Kenya. In 2009 TUI AG and the government of the Balearic Islands renewed their framework agreement on sustain- able development. The underlying idea of this agreement is to respect the environment in tourist activity, which in turn will secure natural resources and the future of the travel business. The focus is on current issues such as climate change and preserving bio- diversity. Regular working talks are held to design projects that will help to promote environmental awareness among tourists, partner hotels and tour operators.

The first tree is planted in the TUI Forest

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As one of the first projects, a TUI Forest is being created on 48 hectares of land in a natural park on Majorca.

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Over the next five years a total of 57,600 wild olive and pine trees will grow in the Parc de Llevant near Artà in the east of the island. This will protect coastal sloped from soil erosion while at the same time helping to protect the climate. TUI holidaymakers are directly involved in the growth of the TUI Bosc, as the forest is called in the Mallorqui language. TUI Deutschland pays a set sum into the afforestation budget for every customer who holidays on Majorca. Tourists are kept informed about the project in their travel documentation and through other TUI media, and they can make an additional voluntary donation. TUI guests can also be physically involved: for every donation over € 10 – which is what it costs to plant a tree – the donor’s name will be included on a plaque in the natural park.

The Peter Maffay Foundation helps children and young people on Majorca www.petermaffay stiftung.de

In 2009 TUI España supported the “Proyecto Hombre de las Islas Baleares”. This is an association committed to education and treatment for drug addicts in the Balearic Islands. The Peter Maffay Foundation and Tabaluga help children and young adults who have been traumatised by violence, war or abuse, or severe illness or disability. In summer 2003 the foundation opened a holiday home on Majorca. Since then children and their carers have come to the Finca C’an Llompart in Pollenca for a combination of therapy and holiday fun. TUI AG has ensured from the outset that they can travel there and back safely, providing the flights between Majorca and Munich for the staff and their charges. Once again, TUI provided the trust with over 180 free flights in 2009. We hope that our commitment will help to offer these trauma- tised children and youngsters a new perspective on life.

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5 Benefit events TUI Deutschland marked its 40th anniversary in 2008 with a benefit in aid of Dunkelziffer, a charity dedicated to providing counselling and therapy for children who have suffered abuse and promoting prevention action to protect them. Forty autographed works of art made personally by famous patrons from the world of sport, politics and television were collected and auctioned to the highest bidder. This raised € 10,000 for the association’s good work.

Dr Volker Böttcher, CEO of TUI Deutschland, presents a cheque to Dunkelziffer

airtours, the premium TUI Deutschland brand, supported medical aid for the third world in 2009 through Ärzte für die Dritte Welt. As part of a customer survey, the company donated € 20 for every questionnaire that was returned, accumulating € 20,000 for the work these doctors are doing in severely underprovided regions around the world.

Captain Jens-Uwe Schütze (left) and his TUIfly crew during the RTL Marathon

In October 2009 TUIfly handed over donations worth € 80,000 Euro to the German Red Cross (DRK). The money was collected on board planes during summer 2009, and this is the fourth time the airline has run the campaign. It will go towards the DRK’s work in southern Sudan, specifically to fund ten Red Cross health stations for local communities. In November 2009 TUIfly and its customers also took part in the Donation Marathon by the TV channel RTL, collecting € 123,456 for children in need.

Charity Gala on MS Europa in aid of the Karlheinz Böhm Foundation

Thomson Airways in the UK sent unused catering resources such as trays, cutlery and disposable plates to the Salvation Army and the Isabel Hospice in Hertfordshire. 100 crates in all were donated from the distribution warehouse in Tring. Over 500 guests flocked on board MS Europa, the Hapag-Lloyd Kreuzfahrten flagship, in May 2009 for a Charity Gala in aid of the Karlheinz Böhm trust “People for People”. The donations amounting to € 250,000 are for building the Hawa Yember Higher Primary School in Illubabor, Western Ethiopia, for 600 children. In August the cruise company went on to hold a charity event for the World Childhood Foundation set up by Queen Silvia 74

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of Sweden. The foundation is dedicated to helping exploited and abused children all over the world. Childhood funds 100 projects in 15 countries. Hapag-Lloyd Kreuzfahrten was able to hand over € 102,700 towards these efforts. For a long time now, Hapag-Lloyd Kreuzfahrten has been supporting the SOS Children’s Villages. A broad range of activities, including auctions of maritime charts and visits to these villages during selected voyages, raised over € 197,000 in financial year 2008/09. SOS Children’s Villages has been working for more than 50 years for the needs, concerns and rights of children. The charity focuses particularly on abandoned and neglected boys and girls and disadvantaged families. In November 2009 the ROBINSON Club at Fleesensee supported a donate-a-meal campaign for children, project by Förderwerk für Kinder weltweit e.V. which aims to provide free meals for children at a community table. Famous chefs put together a special menu for the guests at the charity dinner, and the proceeds of € 40,000 will be put directly into the project.

Karl J. Pojer, Director of TUI Hotels & Resorts, joined the EAGLES to hand over the donation to Franziska van Almsick

Sponsoring sport Sport, be it on grass, ice or track, offers that brief moment of holiday feeling in our daily lives. Our commitment reaches back many years, both as a partner to many professional teams and a sponsor of various sporting events at home and abroad. More on the drinking water project at www.globalnature. org

The Dorfhotel Fleesensee took advantage of its New Year Gala in 2008 to run a lucky draw. Under the motto “Children help children”, the proceeds from 2008 and also the gala in 2009 will be used to support children in need. The ROBINSON Club Quinta da Ria organised the Hermes EAGLES Charity Cup in November 2009. In the course of the tournament TUI Hotels & Resorts and the EAGLES jointly handed over a donation of € 50,000, which will benefit both the German sport movement in the form of Deutsche Sporthilfe and young swimmers in Heidelberg. TUI and its brands TUI Cruises, ROBINSON Club, TUI Golf, airtours and TUIfly also donated major prizes for the lucky draw in aid of this good cause.

TUI became one of the principal sponsors of league footballers Hannover 96 in the 2002/03 season. A new contract has prolonged that relationship until the end of the 2010/11 season. It is now one of the longest standing sponsorships among Germany’s top division clubs. In 2009 TUI, the Global Nature Fund (GNF) and Hannover 96 launched the campaign Beakers for Drinking Water. The umbrella fan club Rote Kurve supports TUI Sustainability Report 2009/2010

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5 it, too. When the team is playing at home, spectators can donate the deposit on the beakers by giving it to TUI employees, Global Nature Fund volunteers or Hannover 96 fans at the campaign stands. The money is used to fund the installation of solar powered drinking water processors in Kenyan schools and villages without an electricity supply.

Maura. Apart from pleasure in running, they were motivated by a good cause: for every child taking part TUI gave € 5 to the Unicef aid project Water for Niger – Every Drop Counts, which is improving the conditions for children in that region. In 2009 TUI passed the title sponsorship for the Kids Run to Unicef. The donation was rounded up to € 10,000.

2004 was the first year that TUI appeared as title sponsor at the International Marathon on the Spanish island of Majorca. A year later the Group took on the entire organisation and project management of the Palma de Mallorca TUI Marathon, thus becoming the host for this annual event which takes place each October. In 2009 it attracted over 7,000 runners from different countries. One runner in 2009 was the comedian and author Dr med. Eckart von Hirschhausen, participating on behalf of “Humor hilft Heilen”, which organises clowns in German hospitals to cheer up and encourage the smaller patients in particular. TUI backed this commitment by the physician, donating € 10,000.

Since 2007 TUI has no longer merely been the title sponsor of the Hanover half-marathon but, along with TUIfly, the company behind the name of the overall event: TUIfly Marathon Hannover. TUI staff are, moreover, motivated by running the German TUI championships at the TUIfly half-marathon, which is a qualifier for the TUI Marathon in Palma de Mallorca.

2009 saw record participation in the Unicef Kids Run. 1,600 budding athletes aged two to twelve completed the 600 or 1,200 metre distance on Paseo Antonio Further details about cooperation with Unicef at www.tui-marathon. com

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TUI is likewise a principal sponsor of the Hanover Scorpions, who play in the German ice hockey league. These professionals have long and consistent record in German ice hockey, and they offer top quality sport in the rink. Together with its companies and brands TUI Cruises, TUIfly, ROBINSON Club and airtours, TUI is a partner in cooperation with the Eagles Charity Club (ECGC) and has been supporting the association since 2005 by donating money and goods in kind (such as big prized for the lucky draw). This golf club serves the function of helping people in distress. To that end it organises events and collects money. The ECGC supports the work of various trusts, including the Franz Beckenbauer Foundation, Kids Care, Tabaluga, the Tony Marschall Foundation and the children’s arthritis charity Kinder RheumaFoundation.


Futouris The Sustainability Initiative

Sustainable development is a common task that we can pursue to even greater effect as part of a cross-sector campaign. On 13 January 2009, TUI AG, TUI Deutschland, TUI Austria, TUI Suisse, airtours, Gebeco and TUI Leisure Travel founded the sustainability initiative Futouris, which is a registered not-for-profit associa- tion. The German Travel Industry Association (DRV) has accepted the role of patron. The tour operators Thomas Cook and Neckermann became active members on 1 July 2009. The sustainability initiative is engaged in projects to improve the lives of local residents, promote education, protect the climate and the environment and preserve biodiversity. In addition to the efforts of its members, Futouris is gradually involving others in its work: people with responsibilities in the destinations, environment and development organisations, staff, travel agents and customers. Futouris’ long-term vision is to promote one project for each of its priorities in every holiday destination. Social responsibility. Travel can help to build bridges and foster understanding for other peoples and cultures. In 2009 Futouris funded seven social responsibility projects. One was the training project Growing the Future, run by the Grootbos Foundation in South Africa. The programme provides unemployed young women in the Gansbaai region with an agricultural training recognised by the government. Successful completion entitles the trainee to a piece of land. In 2009 Futouris worked with the organisation Istiqbolli Avlod in Uzbekistan to combat human trafficking and forced prosti- tution.

The project of the year in 2009 was a reforestation scheme in Kenya aimed at restoring biological diversity in the area around the Taita Hills, while at the same time contributing to the livelihoods of the local population. It means planting 25 hectares in the Taita Hills Reserve with trees and excluding large herbivores from the terrain. Tree nurseries have been created in the neighbouring communities of Msorongo and Mwashuma, and saplings are purchased there. In Germany, Futouris supported a project called “Sailing Boats Sight Porpoises” to save the only remaining indigenous cetaceans in the Baltic Sea from extinction. When designating protection areas, it is vital to obtain precise data on population size and distribution. In this project, the GSM, an association dedicated to protecting sea mammals, is evaluating the reports of sightings (date, wind conditions, GPS position) and compiles appropriate charts. Protecting the environment and climate. In 2009 the sustainability initiative supported two climate change projects. The Yuntdağ Wind Park in Turkey was assisted in cooperation with myclimate. A second project was concerned with helping the local population in the Peruvian highlands of the Andes in setting up new low-emission cookers.

www.futouris.org Founding members of Futouris e. V. (left to right): Josef Peterleithner (TUI Austria), Roland Schmid (TUI Suisse), Andreas Koch (TUI Deutschland), Mila Dahle (TUI AG), Peter Wittmann (TUI Leisure Travel), Kirsten Feld-Türkis (airtours) and Jens Hulvershorn (Gebeco)

Preserving biodiversity. Many countries enjoy a wealth of natural resources. In 2009 Futouris contributed four projects to protecting biological diversity. In Sri Lanka, the association worked to preserve mangrove forests, involving local communities in its reforestation scheme. Mangrove forests play an important role by providing a natural barrier against coastal erosion, flooding, tidal surges and storms.

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Product Responsibility and Consumers


Trust As a services group it is incumbent on us to win and maintain the trust of our customers and business partners by means of impeccable behaviour. We want to be regarded as being credible, trustworthy and reliable and we therefore act accordingly. TUI recognises its responsibility in all its areas of business to minimise risks to the safety and health of its customers. TUI observes the rules of fair competition. The environmental acceptability of products, services and processes is a key element in the TUI quality standards.

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Sustainable Product Development

Please go to www. tui-deutschland.de for a complete list of TUI Environment Champions

The 2009 TUI Environment Champions in the ROBINSON Club Cala Serena on Majorca

Consumers increasingly factor in the perceived ecolo- gical and social responsibility of companies in taking purchasing decisions. Our key tasks include developing sustainable products adapted to future needs and implementing innovative marketing concepts in order to secure our international competitiveness. Interdisciplinary teams from product management, development and innovation ensure that ecological, economic and social aspects are optimally balanced. Sustainable product labelling The focus of consumers is on TUI hotel companies and contract hotels. TUI awards a number of labels to hotels with an excellent environmental and sustaina- bility performance: TUI Environment Champion. Since 1992, TUI Deutschland has determined the ecological performance of TUI hotel companies and contract hotels on the basis of checklists which have been used to establish an annual ranking since 1997. Scores are awarded based on the environmental measures implemented by the hotels and an evaluation by our guests. In order for a hotel to participate, the management has to actively take part in an application process. The 100 leading TUI hotels and holiday facilities worldwide with environment-friendly management receive the TUI Environ-

ment Champion award, with the ten top hotels designated as Golden Environment Champions. Hotels wishing to apply have to meet the following minimum requirements: Pursuing and publishing their own environmental policy Appointing their own environmental officer Implementing at least four water-saving measures Implementing at least two energy-saving measures Regularly measuring their consumption of resources Documenting their wastewater disposal management system The environmental measures adopted by the hotel also have to be reflected by above-average customer satisfaction. This disclosure is based on the outcome of the questionnaire included in the travel documents for every guest. Hotels receiving the award are marked with the TUI Environment Champion label in TUI brochures. When TUI Deutschland was undergoing ISO 14001 certification, an independent expert examined and confirmed the objectivity of the selection and scoring process. TUI EcoResort. The in-house quality label EcoResort for hotel and club facilities in the TUI Hotels & Resorts portfolio was introduced in 2006. It is awarded to facilities meeting the defined core criteria: Experience nature. Experience nature and the environment at first hand. EcoResorts offer their guests the opportunity of experiencing nature close up – either in the hotel’s own inviting gardens or in nearby outstanding natural countryside. Health and quality. Holidays in EcoResorts equates with relaxation and feeling good. Special emphasis is placed on obviating stress, activities for promoting health and ecological quality. For instance local and regional products from ecological farming are the preferred choice. Commitment to sustainable development. EcoResorts cooperate with nature conservation organisations, are involved in cultural and social projects and sensi-

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tise staff in the holiday country to environmental issues High standards of ecological efficiency. The environmental protection in EcoResorts is at a high level and guarantees careful use of resources without compromising comfort. It includes for instance waste and waste water management, water and energy saving measures as well as often the use of renewable energy. Certified environment protection. The environmental management system of the EcoResorts are checked by independent, accredited specialists and certified in accordance with a recognised national or international environmental standard, such as ISO 14001. Apart from environmental quality assurance, EcoResorts also pursue sustainable development in holiday regions. The number of TUI Hotels & Resorts facilities awarded the label rose from 24 in 2006/07 to 48 in 2009/10. In the summer of 2010, 50 hotel and club complexes will be entitled to carry the quality label.

Blue Village. For many years, the Scandinavian tour operators of TUI Nordic have cooperated with the Blue Village hotels, committed to observing the sustain- ability criteria defined in the WWF Code of Conduct for Responsible Tourism, including: Appointing an environmental officer Recycling and conservation of resources Predominantly using local products and having a written environmental plan Implementing the Code of Conduct against Commercial Sexual Exploitation of Children published by the international human rights organisation ECPAT as an essential element of customer sensitisation

BlueVillage速

Working with Atlantica Hotels, TUI Nordic established the Atlantica Aegean Blue Village in Rhodes. The hotel, opened in April 2009, aims to fully avoid use of fossil sources of energy and thus minimise carbon emissions. It also plans to significantly lower its water and electricity consumption.

Travelife. With the introduction of Travelife in 2007, TUI Travel has supported an internationally recognised quality label for sustainable hotel management promoted by the EU. The scoring system underlying Travelife enables tourism companies to check and optimise their sustainability management themselves as a first step. This is a simple self-assessment tool for suppliers.

www.travelife.eu

In order to meet this quality standard, the hotels have to launch sustainability organisation and management programmes, manage their impact on the environment, take account of social justice, promote the local community and establish a stakeholder network. The main goals of the Travelife system are to achieve high customer satisfaction and promote the quality of life for the local population living in the destinations. Trained auditors check these criteria during the audit. Having successfully completed certification, the hotels are granted a Gold, Silver or Bronze Award.

Please go to www. ecoresort-tui.com for a complete list of the award-winning hotels

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6 Involvement and support of suppliers In order to reinforce the sustainability commitment by contracting partners, a Sustainable Development Addendum for hotel contracts developed by TUI UK & Ireland in 2009 will successively be introduced. In the course of the forthcoming financial year, the addendum will be embedded into the contracting processes of the Mainstream Sector Northern Region and Western Europe and in the Specialist & Emerging Markets Sector. Hoteliers signing the addendum commit to initiating or continuing a sustainability programme in order to manage the impact of their business activity on nature and the environment, employees and the local community. Local crafts in Sri Lanka

TUI does not only demand that strict environmental standards be met but actively supports its hotel partners in looking for future-oriented solutions. The www.tui-ecohotel.de forum was created to promote intensive exchange. It offers suppliers comprehensive information and assistance in taking their environmental management a stage further. At the same time, it promotes the cross-border exchange of best practice examples. Hoteliers can enter their current environmental programmes in an interactive checklist. They will then immediately be informed whether these programmes meet TUI’s minimum environmental standards.

www.cordaid.nl www.paseo.nu

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Sustainable excursion portfolio Sustainable excursion programmes focus on offering guests profound insights into a country, its culture and people and enhancing their understanding of local traditions and the local way of life. Our aim is to con- tinually expand this range of excursions: under the New Encounters label, Nouvelles Frontières, TUI Nederland and First Choice Netherlands sell sustainable excursion products, designed to encourage encounters with and support for the local population. Examples include the Chocolate Tour in the Dominican Republic, developed by TUI Nederland in cooperation with Cordaid and PASEO. The excursion offers our guests insights into the harvesting and production of fair trade cocoa. TUI Sustainability Report 2009/2010

The Chocolate Tour creates additional income for the local cocoa farmers and contributes to combating poverty in the region. In 2009, TUI Deutschland and the local tour operator Beluga School for Life Charity Travel jointly designed an excursion to the Beluga School for Life in Thailand. This aid project for orphans and children in need in Khao Lak, founded in 2004, emphasises psychosocial provision for victims of the 2004 tsunami. The visitors get to know the village community, their everyday life and traditional crafts and cuisine. In cooperation with the Global Nature Fund (GNF), a nature and culture trip to the mangroves in Sri Lanka was developed in 2009. The excursion takes the parti- cipants to Lake Madampa in the tsunamistricken Ambalangoda region, enabling them to learn the methods of local fishermen and explore indigenous bird life. The local education centre offers detailed information about biodiversity in the lake. Our guests are subsequently introduced to local decorative crafts and cinnamon cultivation.


Wildlife Watching. Whale-watching excursions meeting strict standards contribute to the protection of en- dangered populations. A TUI Travel policy published in 2008 promotes the Group-wide introduction of sustainable wildlife watching. The policy has been communicated to all agencies and contracting part- ners in the destinations. In cooperation with the nature conservation organisations Sociedad Española de Cetáceos (Tenerife) and M.E.E.R. e. V. (La Gomera and Tenerife), TUI has devised whale-watching trips in the Canaries that meet sustainability and species conservation principles and sensitise holidaymakers to the issues through trained attendants and information material. Zoos and aquariums. The Group Captive Animal Welfare Guidance sets out, inter alia, minimum standards for dolphinariums offered by Group tour operators. The criteria are based on the international animal and species conservation rules of the Washington Convention for the Protection of Endangered Species (CITES) and the International Union for Conservation of Nature (IUCN). By the end of 2010, 20 dolphinariums included in TUI offerings are to have been certified by the Dutch Dolphin Fund foundation. The foundation carries out its certification programme on the basis of the Travelife standards for dolphinariums. If a dolphinarium does not meet the minimum requirements, it is swiftly removed from the TUI programme. In 2009, the dolphinarium audit resulted in the decision to cancel sales of tickets for two Turkish dolphinariums that did not meet the defined criteria.

Volunteering In the summer of 2009, the volunteer travel portfolio of i-to-i Travel was launched in the German market. Customers combine travel experiences with voluntary social or ecological activities. In more than 20 destinations, locals organise environmental or community projects supported through the hands-on assistance of our guests on site. The specialist tour operator Hands-on-Adventures, established in 2008, attracts customers by promising an adventure: gaining hands-on experience of foreign cultures and natural landscapes by working in development and protection projects. The portfolio currently comprises 14 tours, including species conservation projects such as a bear monitoring programme in Slovakia or living and working with San bushmen in the north of Namibia. Climate-friendly products TUI Nordic offers its green-minded customers a climatefriendly alternative to conventional air travel. Guests of Blue Train Holidays take the night train from Malmö in Sweden to many European holiday regions, combining comfort and sustainable mobility.

www.volunteerreisen.de

More details on carbon offsetting in the chapter on “Climate Action”

Many tour operators and airlines in the TUI Group offer their customers schemes to offset the carbon emissions caused by their holiday flight in the form of a voluntary donation. Guests travelling with TUI Deutschland can offset the carbon emissions of their entire holiday through the TUI climate initiative. TUI customers using the TUI Card take part in the Bonitos bonus programme. Since 2009, they have been able to donate their points to a climate project. The project is coordinated by the Swiss foundation myclimate and helps to cut carbon emissions and protect the climate. Bonitos can also be invested in trees in the TUI Forest on Mallorca. The reforestation project was launched in 2009 on a 48-hectare area in the Parc de Llevant natural park. .

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www.myclimate.org

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6

www.reefcheck.de

www.firstchoice. co.uk/greenerholidays

Customer sensitisation In 2009, guests and employees of the Egyptian ROBINSON Club Soma Bay were again given the opportunity to experience the fascination of coral reefs and actively support the protection of these reefs. In cooperation with the reef protection initiative Reef Check, scientists provided information about the endangered biodiversity in coral reefs and simple protection measures. In subsequent diving rounds, customers supported the work of the scientists, e. g. by counting the species present. In 2010, this two-week project will again be offered twice. Hapag-Lloyd Kreuzfahrten offers tours to ecologically highly sensitive areas. The requirements and provisions for the planned route, landing sites and excursion destinations are already carefully taken into account in developing the product. As a member of the International Association of Antarctica Tour Operators (IAATO), Hapag-Lloyd Kreuzfahrten already informs all guests prior to departure about the IAATO code of conduct for Antarctic travellers. Experts inform passengers on board about the specificities of the eco-systems they will visit and the threats to these systems.

affinity to the brand, which according to recent studies may account for a market share of 25 to 30 %. An interactive world map guides prospective customers to offerings meeting their wish list. The British First Choice tour operator published its Greener Holidays brochure for the first time in 2009. The online brochure features sustainable travel products offered by the company and presents particularly environment-friendly hotels. TUI destination monitoring In order to secure the quality of the environment in our holiday regions, the local TUI staff in charge have been preparing reports about the current environmental situation and social development since 1992. This information is used for product and quality management purposes by TUI employees and for process optimisation by the TUI Service. It is also used to sensitise the local population and those in charge of tourism in the regions.

A web-based system is used to collect data on the following factors: Climate change and air quality Since 1991, the UNESCO World Heritage Centre (WHC) Energy management has implemented a World Heritage Tourism Programme, Water and wastewater management aimed at contributing to the long-term valorisation of Waste management world heritage sites by means of sustainable tourism. Water and beach quality, coastal protection TUI supports this goal by offering excursions and round Landscape and building development trips to numerous world culture and heritage locations. Nature and culture It specifically refers to the programme in tour descrip Sustainable product offerings tions and the Nature and the Environment boxes in Environment policy, sustainable development the brochures printed by TUI Deutschland, TUI Austria, Cooperation with the local community TUI Suisse and TUI Poland. This move helps to raise consumers’ awareness of the UNESCO World Heritage The reports are analysed so that we constantly have Programme and of the need to preserve the world up-to-date information on the individual holiday heritage. regions available, which we include in our brochures for the benefit of our customers. In 2008, TUI Deutschland pooled its portfolio of environmentally friendly and sustainable products for the first time. The online brochure “TUI Grüne Welten” (TUI Green Worlds) attracts the growing LOHAS (Lifestyle of Health and Sustainability) target group with an 84

TUI Sustainability Report 2009/2010


Consumer Information

Tested service quality In September 2009, TÜV-Süd awarded the TÜV label for excellent service quality to the TUI Leisure Travel retail outlets for the fourth time in succession. TUI Reisecenter, FIRST Reisebüro and Hapag-Lloyd Reisebüro achieved an overall score of 1.89 in the certification process. Customers will be able to recognise the award-winning travel agencies through a sticker placed near the entry. The travel agencies had to complete an audit. The quality of their services was also tested by mystery shoppers on site, by phone and by email.

European nature parks, employees of TUI AG and TUI Deutschland informed visitors about sustainable tourism in protected areas. The TUI booth also presented Business & Biodiversity. The fringe programme at the trade fair also served to present TUI biodiversity initiatives and the work done by the Business & Bio- diversity Initiative. In addition, TUI presented the first few joint initiatives carried out with the Balearic Ministry for the Environment under the framework agreement on the sustainable development of the Balearics concluded in 2009. In March 2009, TUI AG actively participated in Cor- porate Social Responsibility Day at the International Tourism Fair (Internationale Tourismus Börse ITB) in Berlin. The discussions focused on opportunities and challenges related to responsible corporate management in the tourism sector.

TUI Leisure Travel receives the TÜV label

TUI Travel outlined its commitment at the Responsible Tourism Day held during the World Travel Market (WTM) in London in November 2009. CEO Peter Long took the Hot Seat, answering questions on TUI Travel’s sustainability agenda. Presentation at trade fairs and congresses In February 2009, the 19th Reisepavillion, an Inter- national Trade Fair for Alternative Travel, was opened in Munich, alongside the leisure trade fair f.re.e. In cooperation with the EUROPARC Federation and

Education and sensitisation Working closely with the Federal Office for Nature Preservation (BfN), TUI AG developed a souvenir guide called “Der kleine TUI Artenschützer” (TUI’s Little Guide to Protecting Species) in 2009. It is handed out to TUI guests at the welcome events in their hotels in more than 20 holiday destinations in which trading in illegal souvenirs poses a major problem for international species protection. By purchasing certain products, holidaymakers frequently unknowingly commit an offence or even a crime. Trading in illegal souvenirs may be punishable by fine or even imprisonment. The TUI guide motivates customers to buy alternative, fair souvenirs that also sustainably promote the local economy. Reisepavillon 2009, Thai delegation of tourism planners

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6

Product labelling for conscious consumer decisions We offer credible and transparent information to our customers to enable them to include sustainability aspects in their travel plans and decisions. The labels we use to mark our offerings accordingly are outlined in greater detail in the chapter on “Sustainable product development�. Many tour operators in the TUI Group already use their travel brochures to inform customers about the environmental situation and cultural particularities in the host countries prior to departure. Controversial issues Travel may raise questions – especially if the government of a host country is accused of violating fundamental human rights. For a few years now, for instance, there has been a public debate worldwide on whether travelling to Burma/Myanmar should not be boycotted. This unsettles people: should you travel at all, and if so, what should your attitude be? Travel decisions have to be carefully taken. In the TUI Group, current developments are permanently followed and discussed. We believe that tourism can make a fundamental contribution to opening up a country, promoting intercultural understanding and improving the living conditions of the local population. Prior to departure, TUI gives its customers the facts, e.g. through its brochures and on the internet, and seeks to enable them to take informed purchasing decisions.

More details at: www.fairunterwegs.ch www.respect.at www.tourism-watch.de www.amnesty.org

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TUI “Page 3� Holiday and responsibility

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6

Safety and Crisis Management

Safety The safety requirements of our guests have continually risen. Natural disasters and terrorist attacks have also affected tourism destinations in recent years. Especially when unforeseeable events occur, our guests expect reliable safety instructions, assistance and local contacts. Regular safety checks in our hotels and training programmes for our employees and tour reps are important measures to prevent critical situations arising. Our crisis manual documents workflows and processes. In addition, the tour operator TUI Deutschland has a crisis room equipped with state-of-the-art communication technology in Hanover. Certified crisis management TUI consistently updates its safety standards. TUI Deutschland was again the only tour operator to obtain certification of its tourism crisis management by external auditors PricewaterhouseCoopers (PwC). Based on the results of a comprehensive, independent audit, TUI Deutschland was the first company to obtain the top status “Certified”, based on standards for crisis management in tourism developed by PwC. It was designed in line with nationally and internationally recognised risk management and quality standards.

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TUI Sustainability Report 2009/2010

A total of nine criteria were defined and examined: Crisis management objectives Crisis prevention Crisis identification, analysis and evaluation Monitoring activities as part of crisis management in tourism Crisis communication Monitoring and adjustment of the measures applied Structural organisation Documentation Crisis management by the tour operator will now in- clude an additional element: a TUI liaison officer will be available to take care of customers particularly hard hit by crisis situations such as traffic or other accidents, natural disasters or terrorist attacks. Support in crisis situation If a crisis situation occurs, TUI guests are flown out of the stricken areas as quickly as possible. They also receive direct support wherever the situation has arisen: TUIfly’s Family Assistance Team and the Emergency Care Team, consisting of staff volunteers, take care of the guests on site in acute stress situations. Family Assistance Team. The TUIfly Family Assistance Team was set up back in 1998. In the same year, the management of the airline also started to recruit and train staff volunteers. The three-day basic training scheme and the follow-up courses were carried out by an external trainer. The volunteers learn basic discussion management skills, how to take care of people in crisis situations and how to handle stress and grief reactions. The first assignment of the team occurred in 2000 when an emergency landing took place in Vienna. Since then, the Family Assistance Team has been developing further and currently comprises around 100 staff volunteers. Apart from personal contact with and care for the victims, behind-the-scenes activities in the event of an incident include organisational tasks such as providing blankets and coordinating operations. The Team members also assist their TUIfly colleagues in exceptional situations such as an on-board death.


Emergency Care Team. In 2001, the TUI Group put together a second team to support holidaymakers in crisis situations. The key goal of this initiative driven by TUI staff is to “be there” for the people affected, their relatives and employees in acute stress situations. The members of the Emergency Care Team complement the work of first aid teams and trained psychotherapists simply by being available on site for the people affected and helping them to find their bearings. The Emergency Care Team comprises around 240 voluntary staff members prepared to help other people in borderline situations. To qualify as a team member, an employee has to display qualities such as communication skills, stress tolerance, flexibility and listening skills. The team members complete a three-day basic training and subsequently take part in annual one-day followup programmes. Crisis simulation exercise 2009. In February 2009, one of the largest crisis simulation exercises in Germany took place at Hanover airport. The simulation was built around a hostage-taking scenario on board a TUIfly Boeing 737, with four hijackers holding 115 passengers, six crew members and a technician. A total of 1,560 persons were involved in the test run for a genuine emergency, including around 900 policemen and staff members of TUIfly and TUI Deutschland. The crisis staff from the two companies stayed with the simulation exercise until it ended late at night. TUIfly employees played the hijacked passengers and their worried relatives at the airport, looked after by colleagues from TUIfly’s crisis team with the support of staff of TUI Deutschland and Hanover airport. The simulation also included emergency press relations. The experience and insights gained from the simulation will feed directly into crisis management updates.

safety risks at the workplace. Trained teams also undertake regular inspections of TUI Travel suppliers in order to assess various health and safety factors. These inspections also serve to assure quality and promote environmental protection. “Bathing Safety 2010“ The bathing safety initiative Blausand.de has chosen TUI as its Tour Operator of 2009. This award is based on a study conducted by Blausand.de to check how bathing safety is handled by tour operators. The experts have confirmed that TUI Deutschland is playing a pioneering role in featuring bathing safety issues in its brochures, travel documents and information kits. The company also offers training to tour reps so that they can actively inform holidaymakers about potential bathing risks in the holiday destination. TUI works closely with local communities, hotels and lifesavers in holiday destinations so as to remain aware of any dangers and take preventive action accordingly.

Health & Safety The Group Health and Safety department at TUI Travel supports the Group companies in implementing a safety management system. Staff members can use specifically designed online tools to find out more about safety issues. Training is provided to help TUI staff adopt the right behaviour in emergencies and avoid health and TUI Sustainability Report 2009/2010

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We assume responsibility. Not just for contents and design, but also for production. The paper used for the present report has been produced from forests managed in line with social, economic and ecological sustainability criteria and meets the standards of the FSC Mixed Sources category.

Care has been taken to ensure that the printwork has been climate-neutral. The natureOffice process ensures that all direct or indirect carbon emissions from printing, paper production, transportation, processing and logistics are fully recorded and offset.

The environmental management system of Benatzky Druck & Medien has been certified under ISO 14001.


GRI Index “Guests in Paradise”, TUI AG’s Sustainability Report 2009/2010, complies with the current Global Reporting Initiative Guidelines (G3) at Application Level B. This was confirmed by the Global Reporting Initiative review. The following index lists all GRI indicators and their current status, i.e. the extent to which TUI AG reflects these indicators in its sustainability reporting. Apart from the contents of this Report, additional information can be found in the latest Annual Report from TUI AG and on the Group website. References P. page in the Sustainability Report C cover page in the Sustainability Report AR page in TUI AG’s Annual Report 2009 www report.tui-sustainability.com Status full report partial report no report/not applicable Indicators EN1 core indicator EN5 additional indicator

GRI Indicator

Status

Reference

Profil 1.

Strategy and Analysis

1.1

Statement from Chief Executive Officer

P. 4-5

1.2

Description of key impacts, risks and opportunities on sustainability

P. 4-5, 12, 22, 35; AR 60-61, 65-74

2.

Organisational Profile

2.1

Name of the organisation

C1

2.2

Primary brands, products and services

C3; P. 80-87; AR 9-12

2.3

Organisational structure and main divisions

C3-4; P. 23; AR 8-12

2.4

Location of organisation’s headquarters

C8; AR 8

2.5

Countries of business activities

C3; P.16; AR 8-12, 26-33

2.6

Ownership and legal form

AR 8, 104

2.7

Markets served

AR 9-12, 26-33

2.8

Scale of organisation

C3; P. 23; AR 8-12

2.9

Significant changes regarding size, structure or ownership

C3; AR 6-8

2.10

Awards received in the reporting period

P. 31, 53, 58-59; www

3.

Report Parameters

3.1

Reporting period

P.13, 17, 26; www

3.2

Date of previous report

www

3.3

Reporting cycle

www

3.4

Contact point regarding the report

C7

3.5

Process for defining report content

P. 22-23, 26

3.6

Boundary of the report

P.17, 26, www

3.7

Limitations on the scope

P. 26; www

3.8

Joint ventures and subsidiaries

P. 26; www

3.9

Data measurement techniques and bases of calculation

P.17, 26

3.10

Effects of re-statements of information

P.17, 26; www

3.11

Changes from previous reporting periods

www

3.12

GRI Content Index

C 5-6

3.13

External assurance for the report

P.17

4.

Governance, Commitments and Engagement

4.1

Governance structure of the organisation

P. 8-11; AR 58-60, 64, 98-100

4.2

Explanation whether the Chair of the highest governance body is also an executive officer

AR 92; www

4.3

Independent members of the highest governance body (without unitary board)

www

4.4

Mechanisms for shareholders and employees to provide recommendations to the highest governance body

P. 22, AR 60, 105

4.5

Linkage between compensation for members of the highest governance body and the organization’s performance

AR 75-80

4.6

Processes in place for the highest governance body to avoid conflicts of interest

P.8-11, 22-23; AR 105

4.7

Processes for determining the qualifications of the members of the highest governance body for guiding sustainability aspects

P. 4-5, 8-9; AR 62-63

4.8

Statements of mission, codes of conduct and principles

P. 8-11, 40, 66, 83; AR 46, 58, 62-63, 111

4.9

Procedures of the highest governance body for overseeing the sustainability performance

P. 8-11; www

4.10

Processes for evaluating the highest governance body’s own sustainability performance

P. 8-11, 22, 31

4.11

Precautionary approach

P. 8-12; AR 65

4.12

External initiatives to which the organization subscribes or endorses

P. 27-31, 37, 47-49, 67, 72-73, 82-84

4.13

Memberships

P. 27-30, AR 85-86

4.14

Stakeholder groups

P. 22-23

4.15

Identification of stakeholders

P. 22-23

4.16

Approaches to stakeholder engagement

P. 22-23, 27-31

4.17

Key topics and concerns through stakeholder

U7; P. 22; AR 105; www


Economic Performance Indicators

Social Performance Indicators Labour Practices and Decent Work

Management approach

P. 4-5, 8-12; AR 58-63

EC1

Direct economic value generated

P.13-14; AR 18-19, 36, 47

Management approach

P.4-5, 22-24, 56-63; AR 82-83, 107-111

EC2

Financial implications due to climate change

P. 34-35; www

LA1

Total workforce by employment type and region

P.15-16; AR 82-83

EC3

Coverage of benefit plan obligations

P.17; AR 79, 83

LA2

Rate of employee turnover

P.15-16; AR 82-83

EC4

Financial assistance received from government

LA3

Benefits provided to full-time employees

LA4

Percentage of employees covered by collective bargaining agreements

P. 62; www

LA5

Notice periods regarding operational changes

P. 62; www

LA6

Worker health and safety committees

P. 62; AR 110-111

LA7

Rates of injury and occupational diseases

P. 59; www

LA8

Education regarding serious diseases

P.59

LA9

Health and safety agreements with trade unions

LA10

Trainings per employee

P.56-58; www

LA11

Programs for lifelong learning

P.57-58

LA12

Performance and career development reviews

LA13

Composition of governance bodies

AR 59, 107-109

LA14

Ratio of basic salary of men to women

AR 7; www

EC5

Ratio of standard entry level wage compared to local minimum wage

EC6

Selection of locally-based suppliers

P. 82; www

EC7

Procedure for local hiring

P.15-16; AR 108

EC8

Infrastructure investments and services provided primarily for public benefit

P.72-73, 77, 82

Indirect economic impacts

P.72-73, 82

EC9

Environmental Performance Indicators Management approach

P.4-5, 22-24, 34-35, 42-43; AR 84, 107

EN1

Materials used by weight or volume

P.18-19; www

EN2

Percentage of materials used that are recycled input materials

P.19, 50-52; www

EN3

Direct energy consumption

P.18

EN4

Indirect energy consumption

P.18

Human Rights

EN5

Energy saved

P. 36-39, 50

Management approach

P.4-5, 66-68

EN6

Initiatives to provide energy-efficient or renewable energy based products and services

P. 36-39, 50

HR1

Investment agreements that include human rights clause or that have undergone human rights screening

P.10-11, 66-67

EN7

Initiatives to reduce indirect energy consumption

P. 36-39, 50

HR2

Screening of suppliers

P. 80-82; www

HR3

Trainings concerning human rights

P.11, 66

Total water withdrawal by source

P.19, 51 HR4

Incidents of discrimination and actions taken

P.11, 66

HR5

Exercise of freedom of association

P.11, 66

HR6

Child labour

P.11, 66; www

HR7

Forced and compulsory labour

P.11, 66; www

HR8

Training of security personal

HR9

Violations involving rights of indigenous people

EN8 EN9

Affected water sources

EN10

Ratio of recycled and reused water

EN11

Location and size of areas with high biodiversity

P.44-45

EN12

Impacts of activities in protected areas

P.42-49

EN13

Habitats protected or restored

P. 47-49

EN14

Strategies for managing impacts on biodiversity

P. 42-43

EN15

Endangered species

P. 47-48

EN16

Greenhouse gas emissions

P.18-19; AR 84-85

Society Management approach

P.4-5, 66-68

SO1

Impacts on community

P.72-73, 77, 82

SO2

Risks related to corruption

P.11

SO3

Trainings regarding anti-corruption

P.11

SO4

Actions taken in response to incidents of corruption

P.8-11; www

SO5

Positions and participation in public policy development and lobbying

P. 27-29; www

EN17

Other greenhouse gas emissions

EN18

Initiatives to reduce greenhouse gas emissions

P. 36-41

EN19

Emissions of ozone-depleting substances

P.18-19; www

EN20

NO x , SO x and other air emissions

P.19

EN21

Total water discharge

www

SO6

Contributions to political parties

EN22

Total weight of waste (by type and disposal method)

P.19; 50-52 www

SO7

Anti-competitive behavior

EN23

Total number of spills

www

SO8

Fines for non-compliance with laws and regulations

www

EN24

Transport of hazardous waste

EN25

Impact of discharged water on biodiversity

P.45

Management approach

P.4-5, 80-87

P. 36-41, 48-53, 77

PR1

Health and safety impacts along product life cycle

P. 80-87 –

EN26

Initiatives to mitigate environmental impacts

P.18-19

Product Responsibility

EN27

Recycling of packaging material

P. 52

PR2

Non-compliance with regulations concerning health and safety

EN28

Fines and sanctions for non-compliance with environmental regulations

www

PR3

Product and service information

P. 53, 80-81, 83, 85-87

EN29

Impacts of transport and traffic

www

PR4

Non-compliance with regulations concerning product information

EN30

Total environmental protection expenditures

PR5

Customer satisfaction

P.82-84; www

PR6

Programs for adherence to laws and voluntary codes related to promotion

www

PR7

Non-compliance with regulations concerning marketing

www

PR8

Complaints regarding breaches of customer privacy

PR9

Fines for non-compliance with regulations concerning use of products and services

www


Contact

Editor TUI AG Karl-Wiechert-Allee 4 30625 Hanover Germany Internet www.tui-group.com www.tui-sustainability.com Group Environmental Management/ Sustainable Development Martina Basse, Mike Brauner, Mila Dahle, Kerstin Sobania, Andreas Verm旦hlen E-Mail: sustainability@tui.com Phone: +49 (0) 511 566 2201 Telefax: +49 (0) 511 566 2222 Group Communications E-Mail: presse@tui.com Phone: +49 (0) 511 566 1408 Telefax: +49 (0) 511 566 1166 Investor Relations E-Mail: investor.relations@tui.com Phone: +49 (0) 511 566 1425 Telefax: +49 (0) 511 566 1096 Group HR E-Mail: personalwesen@tui.com Phone: +49 (0) 511 566 1283 Telefax: +49 (0) 511 566 1153

Layout and Production add-wise B端ro f端r Design, Michael Kalde www.add-wise.de Photography TUI employees ECPAT Gesellschaft f端r Technische Zusammenarbeit (GTZ) Global Nature Fund Hapag-Lloyd Kreuzfahrten Group works council myclimate Peter Maffay Stiftung ROBINSON Club SOS Tartarugas TUI Deutschland TUI Foundation World of TUI Picture Pool Printing Benatzky Druck & Medien www.benatzky.de Feedback The dialogue with you is important to us! Get into contact: sustainability@tui.com This report is available in German and English. Both versions can be requested via: sustainability@tui.com A digital version can also be downloaded on the internet: www.tui-group.com Editorial deadline: 31 Dec 2009

Health and Diversity E-Mail: charta-der-vielfalt@tui.com Phone: +49 (0) 511 566 1422 Telefax: +49 (0) 511 566 1153 Compliance Office E-Mail: compliance@tui.com Phone: +49 (0) 511 566 1799


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

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