Managing Sustainably in the TUI Group Sustainability Reporting 2006/2007

Travel. Transport. Worldwide. Managing sustainably in the TUI Group Sustainability Reporting 2006/2007

Sustainable development underpinned by Corporate Social Responsibility Contents

Executive statement 4 Executive statement

Reporting 6 Good governance and transparency of extra-financial aspects, risks and opportunities Statement by the Director of TUI AG Group Corporate Environmental Management/Sustainable Development 8 Internal and external reporting

TUI at a glance 10 Evaluation by external stakeholders 11 Group economic indicators 12 Group environmental indicators 14 Group employee figures

Our business 17 Short portrait 18 Value chain assets – Each link of the value chain 22 Corporate Governance

Strategic management processes 26 Sustainability management across the Group 31 Corporate Guideline for employees 32 Compliance 33 Risk management across the Group 34 Safety and crisis management 36 Innovation management within the Group

Targets 40 Achievement of environmental and sustainability targets 2004 – 2006 43 2007 – 2010 targets 50 2007 – 2013 targets, e.g. Climate protection through fleet renewal

Environmental management system 54 Environmental aspects of the TUI Group – Identification and evaluation 55 Climate protection and energy efficiency 59 Climate protection and emissions 63 Climate impact of international container transport 64 Natural resources, waste generation and land use 66 Certification according to international environmental standards 70 Biodiversity strategy and projects 85 Multi-stakeholder dialogue, cooperation and strategic partnerships 89 Destination quality and monitoring 92 Environmental quality in TUI holiday hotels

TUI Sustainability Reporting 2006/2007 Front page “Toscana Resort Castelfalfi“ TUI tourism project: The key objective of the future development of Cas- telfalfi is the expansion of the tourism sector, and equally important, the conservation and restoration of the traditional cultural landscape in Tuscany. This also involves preserving the vineyards and olive groves and other time-honoured forms of agriculture. Catering for the holidaymakers is supplemented by the wide range of products grown at the project’s own farm. The old village with its church and castello are being renovated and complemented with new elements of tourism infrastructure. The highest priorities are given to sustainability and environmental compatibility – the key aspects driving the project. Autark utility supplies are being aimed at by using renewable energy sources to provide all of the electricity; plus biological water treatment and multiple use to back up the water supply and process water disposal. The environmental management shall comply with DIN EN ISO 14001 standard regulations and the even more stringent environmental and sustainability standards required to comply with TUI’s own “EcoResort“ quality label. Project implementation will create at least 300 new jobs. Most of the employees are expected to come from the region, so the project will also make a positive contribution to the local job market.

Social responsibility towards our employees 98 Employee development 99 Co-determination within the Group 100 Occupational health promotion, health care and occupational safety 102 Occupational pensions and part-time early retirement 103 Work-Life Balance 104 Diversity and severely handicapped people

Social commitment 110 Foundations 113 Local commitment at company locations 117 Commitment in destinations 123 Globally active – globally committed 125 Work on behalf of human rights

Product responsibility and consumer protection 128 Sustainable product development in Tourism 137 Consumer protection and information

Imprint 141 Imprint and contacts

Internet-based environmental and sustainability communication is always the medium of choice in our opinion because of its updatability, easy access, transparency and dialogue benefits. Published documents can be studied at any time at www.tui-group.com.

Editorial deadline: 30.06.2007

TUI Sustainability Reporting 2006/2007 Executive Statement

Executive statement Sustainable contribution to corporate value

“One of the foundations of sustainable commercial success is a balanced combination of business targets with social, societal and environmental needs. Responsibility towards society, its employees and the environment is therefore one of the key guidelines directing the TUI Group’s business activities strategically and operationally.”

Dr Michael Frenzel Chairman of the TUI AG executive board

“TUI’s companies and our Group are in the focus of public attention. We have special responsibility as a global player, and as the market and brand leader. We follow the principles of value-oriented company management and ‘sustainable economics’. This primarily involves harmoniously combining economic objectives and business success with social and environmental compatibility. We therefore have an obligation to carefully balance the interests of our shareholders and stakeholders internally and externally through dialogue and cooperation.”

Dr Peter Engelen TUI AG executive board member HR, Legal Affairs, Environment and Sustainable Development

TUI Sustainability Reporting 2006/2007 Executive Statement

Executive statement

“Corporate changes have a major influence on the environmental impact of our business activities. We‘re always looking for opportunities to be greener and are committed to strengthening the position of our business on all aspects of environmental impact and sustainable development. If greater efficiency of operations, fuel consumption and business practices benefits the environment, our cos- tumers and employees, then it is a win-win situation.”

Peter Rothwell TUI AG executive board member Tourism

“Hapag-Lloyd has set itself the target of achieving and maintaining the highest levels of quality and high environmental- protection standards through continuous improvement for the benefit of our customers, employees, shareholders and stakeholders.

Michael Behrendt Hapag-Lloyd AG executive board chairman TUI AG executive board member Shipping

TUI Sustainability Reporting 2006/2007 Reporting

Good governance and transparency of extra-financial aspects, risks and opportunities

Since our first report “Managing sustainably in the World of TUI“ (2003/2004), the internal and external frameworks for the sustainability processes within TUI AG have changed with extraordinary dynamism and continually increasing complexity. The high substantial expectations of the financial markets, policy makers, media, and non- governmental organisations emphatically demand – particularly from publicly quoted, multinational companies – quantified and qualified reporting on the “extra-financial aspects and risks”, and the associated inherently-linked presentation of concrete facts concerning corporate responsibility (CSR) for employees and society, and the environment and nature.

In the reporting period (since 2003/2004) the TUI AG companies have made a positive quantitative and qualitative quantum jump. This is reflected in the relevant organisational structures for good environmental and social governance, as well as the “extra- financial“ performance over the reporting period concerning the environmental man- Dr Dr Wolf Michael Iwand agement of Group companies in Tourism and Shipping, and the implementation of Director of TUI AG Group Corporate social responsibility for employees and society in both segments. Environmental Management/ Sustainable Development Notwithstanding the often arbitrarily chosen environmental and social expectations of stakeholders with respect to (major) companies, our key objective is to systematically link our core business to the relevant sustainability indicators, to open the way for the sustainable and successful balanced further development of our core business activities, and thus to simultaneously uphold our competitiveness. Good governance does more than just enable compliance, it also looks “beyond compliance“ to anticipate potential areas of conflict and risks, as well as identifying opportunities, and improving operational performance.

The business case for We have continually improved the presentation of the business case for sustainable sustainable development development in the TUI AG 2005 and 2006 annual reports (cf. Management report / Corporate governance). This “Sustainability report 2006/2007“ broadens and deepens the reporting of the contents and transparency of our performance. The actively promoted networking with our target groups – shareholders and stakeholders – supports our sustainable development discussions, and our searching and learning process, and gives us the strength to resolutely pursue our objectives – despite enormous implementation challenges – in areas ranging from climate policy, human rights, fighting hunger and poverty, the other seven Millennium Development goals, anti-corruption measures, and all other measures right up to and including “environmental justice”.

TUI Sustainability Reporting 2006/2007 Reporting

Reporting drives innovation We interpret the broad international development process behind the sustainable reporting of (major) companies as a driver of innovation. We will systematically further develop internal monitoring, external reporting and verifiability, on the basis of best available data. We will continuously highlight our numerous areas of competence in key sustainable processes through the highest possible levels of transparency – both internally and externally – and continue to emphasise these aspects in the long term.

Energy efficiency and emission reductions The outstanding global political importance currently accorded to all aspects of global at the top of the priority list climate change since the presentation of the latest “fourth“ IPCC report, is also reflected in the proposed regulations presented by the European Commission concerning the incorporation of aviation in the European Emissions Trading System (ETS). As a consequence, the TUI airlines’ CO² emissions data for 2004 – 2006 (see p. 59 ff) is not only of major importance for the future assignment of emissions certificates, we also expect emission guidelines to be of enormous significance for future emissions reporting. TUI airlines’ internal reporting must not only ensure that its data is of the highest quality in this context, it must also, and just as importantly, reduce TUI’s CO² footprint to the lowest possible level by the urgent operative requirement to achieve the highest possible levels of fuel and energy efficiency. This has already been organi- sationally implemented to a large degree in the corporate centre functions in recent years at a pan-country and pan-divisional level. The average fleet consumption (Ø 3.08 l/100 pkm), and the associated CO² emissions data (Ø 79.5 g/pkm) are available “Low carbon through least cost” on a monthly basis for analysis and control: “Low Carbon through Least Cost“ (efficient low carbon management through least cost energy efficiency – cf.: 1981, Amory Lovins, Least-Cost Energy: Solving the CO² problem). Although the energy intensity of the tourism and transport divisions is rightly seen as a key sustainable development performance indicator, too little attention is still given to the all important aspect of sustainable consumption behaviour. However hard we may try to influence customer satisfaction and customer loyalty with all of the CRM instruments at our disposal, it is still impossible to predict when relevant customer segments will attempt to avoid or limit direct or future impact on the environment and society through their buying choices on the basis of well informed and conscious Winning consumers for “sustainable consumption decisions – such as ethical/moral values or specific environmental and consumption“ is a key priority social product and services criteria. We attempt through product responsibility and the development of sustainable products (cf. p. 126 ff) to win-over our customers in this direction. Only when there is a significant willingness for consumers to pay for these sustainability benefits will we be able to implement the crucial conditions required to satisfy the interests of our shareholders and employees on the basis of sustainable profitability, and to satisfy the needs of the general public. This is our main priority!

TUI Sustainability Reporting 2006/2007 Reporting

Internal and external reporting Basis, principles, target conflicts in the 2004 – 2007 reporting period

Internal environmental and sustainability reporting Corporate centre Group Corporate Environmental Management/Sustainable De- velopment regularly analyses the environmental and sustainability performance of TUI AG Group companies at the end of each financial year. This procedure was rolled out Group-wide for the first time in 2002. The key performance indicators for the whole Group have therefore been available with some restrictions since 2004, and completely available since 2005. Data series for the most important key performance indicators across the Group are therefore available for 2004, 2005 and 2006. The results are published annually in the TUI AG annual report and on the internet at www.tui-sustainability.com. TUI presented the first (written) environmental report in March 1996 to the then In the context of the continuous improvement process (CIP), the internal reporting German Environment Minister Dr Angela of the Group companies is not only beneficial for compiling all relevant environmen- Merkel at the International Tourism Fair tal and sustainability information at a Group level, but also an important stimulus in Berlin. for promoting the systematic improvement of the sustainability and environmental performance of all TUI AG Group companies.

External reporting as an integral part of Group reporting Alongside the dynamically changing and continuously increasing demands made on companies with respect to internal and external transparency and accountability, TUI sees environmental and sustainability communication as a continuous, flexible development process focused on dialogue. Environmental reporting has been deliberately included within the company’s annual reports since 1995 as a corporate policy signal, and has been expanded ever since. Environmental and sustainability reporting is thus an integral part of Group-wide reporting with respect to financial accounting and reporting, investor relations and corporate communications.

Internet-based environmental and sus- This sustainability report therefore follows up directly on the Group environmental tainability communication is always the report 2003/2004 “Managing sustainably in the World of TUI”. The reporting period medium of choice in our opinion because for the latest report covers 2004 to 2007 and documents the results of our activities of its updatability, easy access, transpar- in the environmental and sustainability sector. ency and dialogue benefits. Published documents can be studied at any time on the internet.

TUI Sustainability Reporting 2006/2007 Reporting

Principles* Truth Significance Clarity Continuity and comparability

Target conflicts: challenges of the Group-wide collection of environmental and sustainability indicators The business model of a vertically integrated tourism group, i.e. the TUI AG Tour- ism division, which is structured with its own assets along the whole value chain (travel agencies, tour operators, transport, destination agencies and holiday hotels), is reflected in the extremely heterogeneous structure of reporting “cultures“ in the internal monitoring and reporting processes of the small, medium-sized and major multinational business units making up “World of TUI”, and an equally heterogeneous constellation of specific environmental aspects and environmental activities.

On top of all this (cf. targets 2004 – 2007) there is also the problem that the specific TUI stakeholders in the different TUI markets place very different national demands on businesses and thus create a different national sustainability agenda in each country. Another aspect is that corporate social responsibility (CSR) plays a much more important role as a reporting indicator in northern and western Europe in particular, including the UK. Because the drivers of sustainability in the financial markets (e.g. *cf. German Ministry of the Environ- through SRI platforms, sustainability rankings and ratings, analysts and researchers) ment, Nature Protection and Reactor continually change the weighting of their questionnaires and the resulting corporate Safety (publisher), March 2007, Sus- profiles, TUI environmental and sustainability reporting is forced to continuously re- tainability reporting: Recommenda- view its content and adjust itself to the new external demands. tions for good corporate practise. Our internal reporting (in the light of the simultaneous changes taking place in the company portfolio and ongoing, specific internal restructuring measures) is not always able to keep pace, neither formally nor structurally, with the dynamism of the further development of sustainability reporting – for instance the new GRI G3 guidelines, or the structure of the ISO 26 000 guidance document. In the conflict of target priorities between environmental, social and societal sustainability indicators (e.g. between climate policy, fighting poverty, upholding human rights and anti-corruption prevention) sustainability reporting inherits structural incontemporanities which can only be ironed out in the long term. We therefore consider a reporting period of three years to be the most productive. The focus on the relevant social sustainability indicators is much sharper and is taken into consideration in the internal monitoring and reporting processes. The presentation of the relevant economic sustainability indicators, which have mostly been deliberately pushed into the background in the context Potential of economic sustainability of the societal and political debate, needs to do much more to acquire the weight it for the triple-bottom-line deserves. We have been able to achieve this adequately so far. There is enormous potential for adequately presenting and evaluating the necessary corporate contribution to economic sustainability.

TUI Sustainability Reporting 2006/2007 TUI at a glance

Evaluation by external stakeholders

Positioning in influential sustainability indices International rating agencies and sustainability analysts confirm that the 2006 financial year was another successful year in which TUI delivered a convincing sustainability performance. In September 2006, TUI AG became the only tourism company worldwide in the Travel & Tourism subsector to be included in the Dow Jones Sustainability Index (DJSI) World. TUI boasts top scores here in categories including biodiversity, eco-tourism and climate protection, and sets the benchmark in its subsector for risk and crisis management. TUI also maintained its position in international ethical indices: FTSE4Good (since 2004), ASPI Eurozone (since 2001) and the Ethibel Pioneer Index (since 2005). TUI AG joined the ECPI Ethical Index €uro with effect from 31 January 2007. Incorporation in these weighty financial market indices for sustainable investment highlights how successfully TUI manages to harmonise real business policy across the Group with the demands placed on a global company committed to responsible and sustainable corporate governance.

Background: Indices enable sustainability-oriented investors to invest intelligently in companies which fulfil globally recognised standards for stakeholder and environmental responsibility. Dialogue with analysts and investors also highlights important and useful aspects which can be fed back positively into the company. The demands of sustainability ratings and the information required by independent index providers, research organisations and specialised investment funds are permanently taken into consideration in the further development of external reporting. The comprehensive analysis of the company’s performance and the elaboration of a risk profile, In sustainability dialogue with the naturally also has to include the non-financial aspects of the company’s business ac- international financial community tivities. The environmental and sustainability orientation of the company is therefore gaining in importance in the eyes of “mainstream“ financial analysts.

TUI AG has therefore been registered on the independent internet platform www. sustainable-investment.org since December 2003. This website was developed under the auspices of the United Nations Environment Programme (UNEP) to improve transparency for sustainable investment in Europe.

Credit ratings. Ratings published by independent rating agencies are an important prerequisite for efficient and flexible access to financial markets. They support foreign financiers in their assessment of the risk situation of companies and their financial instruments.

TUI’s financial strength is evaluated at regular intervals by the rating agencies TUI was placed first in the “Environment“ Standard & Poors and Moody’s. The ratings of each company and other detailed category of the Good Company Ranking information are available on the Group website www.tui-group.com under Investor 2006 which rated the 120 largest Euro- Relations/Ratings. pean companies.

10 TUI Sustainability Reporting 2006/2007 TUI at a glance

Group economic indicators

Economic indicators 2006 2005 Var. %

Turnover by divisions Tourism € million 14 084 14 097 - 0.1 Shipping € million 6 254 3 834 + 63.1 Other € million 578 1 688 - 65.8 Group € million 20 916 19 619 + 6.6

Earnings before interest, tax, depreciation and amortisation (EBITDA) Tourism € million 781 734 + 6.4 Shipping € million 212 454 - 53.4 Other € million - 24 192 n. m. Group € million 969 1 380 - 29.8

Earnings by divisions (EBITA) Tourism € million 394 365 + 7.8 Shipping € million - 106 319 n. m. Other € million - 56 166 n. m. Group € million 232 850 - 72.7

Underlying earnings by divisions (underlying EBITA) Tourism € million 401 366 + 9.5 Shipping € million 8 323 - 97.6 Other € million - 40 18 n. m. Group € million 369 707 - 47.9

Net profit for the year € million - 847 496 n. m. Earnings per share € - 3.66 2.29 n. m.

Assets Non-current assets € million 10 141 11 883 - 14.7 Current assets € million 2 873 3 491 - 17.7 Total assets € million 13 014 15 374 - 15.4

Equity and liabilities Equity € million 3 010 4 367 - 31.1 Non-current liabilities € million 5 262 5 288 - 0.5 Current liabilities € million 4 742 5 719 - 17.1 Total equity and liabilities € million 13 014 15 374 -15.4

Equity ratio % 23.1 28.4 -18.7

Cash flow from operating activities € million 467 965 - 51.6

Capital expenditure € million 750 1 138 - 34.1

Net debt € million 3 211 3 807 - 15.7

TUI Sustainability Reporting 2006/2007 11 TUI at a glance

Group environmental indicators

Selected Group-wide environmental indicators To present the broad activities of the two divisions in transparent and reproducible indicators, the relevant environmental impacts were determined following an environmental aspect analysis based on the criteria defined by the international standard ISO 14001, and by the selection of appropriate meaningful indicators. The procedures used to determine these indicators were adapted by taking into consideration international reporting standards (including the G3 guidelines of the Global Reporting Initiative (GRI)).

Absolute environmental indicators 2006 2005 2004 Energy Direct energy usage EN3 TJ 229 805 120 171 109 520 Indirect energy usage EN4 TJ 3 036 2 904 3 498 Energy usage (total) TJ 232 840 123 075 113 017 Water Water usage (total) EN8 m³ 17 258 961 16 599 422 20 493 664 Biodiversity Total land requirement with high biodiversity EN11 m³ 2 463 907 2 710 486 –¹ Emissions, discharges, waste

CO² (direct) EN16 t 15 980 801 8 027 265 7 394 587 CO² (indirect) EN16 t 459 148 438 198 527 140 CO² emissions (total) EN16 t 16 439 949 8 465 463 7 921 727 NOx (direct) EN20 t 334 266 114 543 106 969

SOx (direct) EN20 t 201 106 54 452 51 647 CO (direct) EN20 t 1 990 2 005 1 866 HC (direct) EN20 t 319 290 294 Waste EN22 t 59 989 48 913 8 160 Hazardous waste EN22 t 0 15 0

¹Not available

Energy and emissions are divided into those which are either used or generated directly or indirectly. Direct energy usage in this case consists of the use of fossil fuel and heating fuel. Indirect energy corresponds with the use of energy in the form of electricity, district heating, etc. The terms also apply analogously to emissions. The calculation methods used to determine the indicators in each case are presented at the TUI AG website. Trends are discussed in the individual chapter.

12 TUI Sustainability Reporting 2006/2007 TUI at a glance

Operating business indicators 2006 2005 2004 TUI airlines Number of aircraft number 120 116 106 Average age years 10.1 10.0 9.4 Flight cycles 1 000 149.9 142.7 123.5 Number of available seat kilometres million ASK 77 000 74 400 67 344 Passenger kilometres million PKM 64 059 63 206 57 238 Hapag-Lloyd Container Shipping Number of ships number 138 133 51 Capacity TEU 467 000 412 866 192 000 Average age years 8.2 8.0 8.7 Transport volume TEU 1000 5 004 3 100 2 400 Hapag-Lloyd Cruises/Thomson Cruises Number of ships number 8 8 6 Average age years 21.1 20.1 15.5 Passenger miles million PNM 10 057 8 772 5 676 TUI Hotels & Resorts Number of hotels number 279 279 275 Capacity number 164 844 164 844 154000 Overnight stays million 36.1 34.1 31.1

Some of the indicators are approximations because complete coverage of the reporting period is disproportionate to the effort involved in collecting the data, or the given infrastructure in some Group companies does not yet allow the precise collection of quantitative data.

The operating business indicators represent the environmentally-relevant business parameters. The specific environmental performance indicators derived from these parameters are discussed in the following chapters in detail. The number of aircraft and ships, the age of the fleets, and the figures for the total capacity of the Container Line were determined as per 31 December 2006 and therefore correspond to the figures reported in the TUI AG annual reports. Whilst the operative financial figures already take into consideration the integration of CP Ships into the Group, they are still dealt with separately in the environmental indicators for 2005 for the purpose of transparency. However, the container ships of CP Ships were fully incorporated in the environmental parameters calculated for 2006.

TUI Sustainability Reporting 2006/2007 13 TUI at a glance

Group employee figures

Changes in headcount and personnel structure The TUI Group employed 53 930 staff worldwide on the reporting date, this is 14.3 per cent less than the previous year. The structure of the Group’s personnel changed as a result of divestments. The Tourism segment still accounts for most of the workforce with a proportion of 82.3 per cent this year following 80.2 per cent last year. 15.9 per cent of the staff are employed in the Shipping segment, down from 14.4 per cent the previous year. The number of employees in corporate centre functions changed considerably after the sale of Wolf GmbH. Corporate centre functions now only employ 1.8 per cent of the total workforce, compared with 3.5 per cent the previous year

Personnel by divisions 31.12. 2006 31.12. 2005 Var. % Tourism 44 409 50 498 -12.1 Central Europe 9 411 9 691 -2.9 Northern Europe 14 711 16 254 -9.5 Western Europe 6 504 6 904 -5.8 Destinations 13 783 12 866 +7.1 Other tourism – 4 783 – Shipping 8 571 9 077 -5.6 Hapag-Lloyd 7 742 4 161 CP Ships 829 4 916 Central operations 950 2 183 -56.5 Continuing operations 53 930 61 758 -12.7 Trading – 1 189 – Discontinuing operations – 1 189 – Total 53 930 62 947 -14.3

Tourism. The number of employees in Tourism at the end of the financial year was 44 409, 12.1 per cent down on the previous year. The change in the number of employees varied according to the specific segments. The number of employees in Central Europe declined by 2.9 per cent to 9 411, particularly because of reductions in the aviation workforce. Northern Europe posted a reduction of 9.5 per cent to 14 711, because the restructuring measures implemented in 2005 only came into full effect in some cases in 2006. Western Europe reported a decline in its workforce of 5.8 per cent to 6 504. This is mainly attributable to the sale of the special tour operator and incoming agency business in the Netherlands, as well as the closure of travel agencies in France. Increases in this segment were associated with the capacity-related expansion of the Belgian airline. The number of employees in the destinations rose by 7.1 per cent to 13 783.

14 TUI Sustainability Reporting 2006/2007 TUI at a glance

Shipping. The number of employees in Shipping declined by 5.6 per cent year-on- year to 8 571 employees in 2006 following the complete integration of CP Ships.

Central operations. The number of employees in central functions declined by 56.5 per cent to 950 (of which 465 employees in the corporate centre) as a result of the sale of Wolf GmbH.

Seasonal trends. The development of the size of the workforce during the course of the year is strongly dependent on seasonal fluctuations in the Tourism workforce, particularly in the hotel companies and destination agencies. The average number of employees in the destinations segment in the summer months from June to August is therefore 20 802 as a result of the temporary employment of seasonal staff, compared to 13 783 employees at the end of the year. The average number of employees in 2006 in the Tourism segment overall was 49 499, but 11.9 per cent lower at the end of the year at 44 409.

International headcount The TUI Group’s workforce continues to be mainly in Europe which accounts for 86 per cent. 21 per cent of the Group workforce were employed in Germany, 24 per cent in the UK, 13 per cent in France and the Benelux countries, 14 per cent in Spain and 3 per cent in Nordic countries. 14 per cent of the workforce were employed by Group companies outside of Europe, mainly by Hapag-Lloyd in America and Asia.

Personnel by regions 31.12. 2006 31.12. 2005 Var. % Germany 11 112 15 750 -29.4 UK/Ireland 12 975 15 165 -14.4 Nordic countries 1 599 1 623 -1.5 France/Benelux countries 7 202 8 552 -15.8 Spain 7 656 7 369 +3.9 Rest of Europe 5 729 4 843 +18.3 America 4 149 5 737 -27.7 Other countries 3 508 3 908 -10.2 Total 53 930 62 947 -14.3

TUI Sustainability Reporting 2006/2007 15 TUI at a glance

Personnel costs Personnel costs increased by 5.7 per cent to Euro 2 435 million primarily through the full twelve month incorporation of CP Ships, as well as restructuring costs in the Tourism and Shipping segments. Notes to the consolidated financial statements con- tain details on each of the items.

Personnel costs (in € million) 2006 2005 Var. % Wages and salaries 1 968 1 842 +6.8 Social security contributions, 467 462 +1.1 pension costs and benefits Total 2 435 2 304 +5.7

Training ratio The training ratio of the German TUI companies matched last year’s high level of 6.5 per cent.

Part-time employee ratio The proportion of part-time employees across the Group in 2006 was around 21 per cent.

Female employee ratio The proportion of female employees across the Group in 2006 was approx. 65 per cent.

16 TUI Sustainability Reporting 2006/2007 Our business

Short portrait TUI is an internationally active group and has concentrated since 2005 on two growth segments: Tourism and Shipping. We occupy leading market positions in both these segments and are positioned as a quality provider. TUI AG announced on 19 March 2007 that it would be merging its Tourism segment – with the exception of the hotel group companies managed by TUI Hotels & Resorts – with the British travel group First Choice Holidays PLC. This will create one of the largest travel groups. The company will be headquar- tered in the UK and quoted on the London Stock Exchange. TUI AG will hold a majority stake of 51 per cent in the new company, whilst the shareholders of First Choice Holidays PLC will hold 49 per cent. TUI Travel PLC will be fully consolidated within the TUI AG consolidated financial statements.

TUI AG and First Choice Holidays PLC published a brochure on the planned merger between the TUI Tourism segment and First Choice on 29 June 2007. The brochure contains detailed information on First Choice, the TUI Tourism segment and the future TUI Travel PLC. Merging on 3 September 2007.

First Choice’s sustainability reporting is published under “Environ- ment and People Report”.

TUI Sustainability Reporting 2006/2007 17 Our business

Value chain assets Each link of the value chain

Group structure and business activities TUI improves the quality of life, and conserves the natural environment at the company’s locations and in its tourism destinations by integrating the company’s economic targets with its commitment to its employees, the environment and society, as mani- fested in the large number of socially and environmentally related initiatives. These measures also reduce the company’s commercial risks.

The TUI Group today encompasses two core business activities: Tourism and Ship- ping. This concentration was the result of the restructuring process completed in recent years which completely transformed the Group’s trade investment portfolio from an industrial conglomerate to a pure services company.

Tourism – well positioned With a turnover of around Euro 14.1 billion in the Tourism segment in 2006, the Group is the largest integrated tourism group in Europe, and represented at each link of the tourism value chain. The portfolio comprises around 3 200 of its own travel agencies, 70 tour operator brands, 120 aircraft, 35 agencies, and 279 hotels in the destinations with a capacity of around 165 000 beds.

TUI is a one-stop shop for holidays, providing its customers with everything required from bookings, flights, and accommodation in the Group’s own hotels, not to mention holidaymaker-care by the Group’s own holiday reps in more than 70 destinations. The Group therefore covers each link of the value chain from source market (sales market) to destination (holiday region). Its presence at each link along the tourism value chain safeguards the quality of its products. Connections between each link along the value chain are aimed at constantly maintaining the highest possible occupancy levels of its aircraft seats and hotel beds.

The tourism value chain

18 TUI Sustainability Reporting 2006/2007 Our business

Value chain assets Each link of the value chain

Distribution – from classic channels to innovative ideas With 3 200 of its own travel agencies, TUI is active in 18 countries. TUI has a particularly dense network of travel agency bureaux in Germany, the UK, the Netherlands and Belgium.

Customers now increasingly expect their tour operator to provide information and booking options around the clock. This means that bookings are now not only possible at the high street travel agency distribution outlets, but also by telephone via the company’s own call centres, and the internet. The Group’s own tour operators and airlines also provide a wide range of individual direct booking options on their websites.

Tour operators – blanket coverage With around 70 tour operator brands, TUI is present in 18 European source markets. The source markets, or sales markets as they are otherwise known, are the regions in which the product “travel“ is distributed directly via the tour operators. The Group’s core business is currently concentrated in Europe: divided up at TUI into the Central Europe, Northern Europe and Western Europe segments. Central Europe encompasses the source markets in Germany, Austria and Switzerland, as well as Eastern European countries. The source markets in the UK, Ireland, Scandinavia and Russia are managed under Northern Europe. The Western Europe segment covers the source markets in France, the Netherlands and Belgium. The Group’s most well known tour operator brands in 2006 included TUI, Gebeco, ROBINSON, airtours, Thomson, Fritidsresor, Star Tour, jetair, Gulet, Arke and Nouvelles Frontières. Prod- ucts include complete package tours as well as modular bookable building blocks such as single flights, hotel accommodation, excursions in the destinations, and hire cars.

Flights – quality in all market segments The TUI Group’s tourism portfolio includes the following airlines: TUIfly.com (a new brand created in January 2007 by merging the airlines Hapag-Lloyd Flug and Hapag-Lloyd Express as part of the Group’s new airline strategy), Thomsonfly, TUIfly Nordic, Corsair, TUI Airlines Nederland and TUI Airlines Belgium. The TUI airlines operated 120 aircraft at the end of the 2006 financial year. Two further Group aircraft were leased to a third party. The international team at TUI Airline Management in Hanover runs the strategic central function for the whole fleet: management, planning, IT, purchasing, flight operations, servicing and maintenance. This produces syn- ergy effects and reduces costs. All the airlines benefit from this service but continue to operate as independent companies with local profit accountability. Closeness to their own source markets means they can continue to react directly to customer requirements.

TUI Sustainability Reporting 2006/2007 19 Our business

Destinations – satisfied guests The Destinations segment encompasses the TUI destination agencies as well as the Group’s hotel companies managed by TUI Hotels & Resorts.

Destination agencies. Customers around the world spend their holidays in the destinations. To look after our guests in the best possible way, the TUI Group is represented in all continents by trade investments in destination agencies. TUI’s most important destination agencies are TUI España, TUI Portugal, TUI Hellas, TUI Türkiye and TUI Bulgaria, as well as associated agencies in Cyprus, Tunisia and Morocco. These agencies bundle all of the holiday rep activities at the locations and organise transport of the guests from airports to hotels. The central Destination Management department in Hanover plays a coordination and interface role. Agencies support the core business of the tour operators with their service, and thus make a major contribution to customer satisfaction and quality assurance.

Hotels. The stay in a hotel is the crucial part of the holiday experience and thus the key to customer loyalty. TUI Hotels & Resorts manages 279 hotels. TUI Hotels & Resorts includes hotel brands with high performance, quality and environmental standards reflecting a range of hotel concepts and located at prime locations in the holiday destinations. The hotels include well known brands such as Riu, Grecotel, Grupotel, Iberotel, Dorfhotel, ROBINSON, Magic Life, Paladien and Nordotel.

As the link between the World of TUI tour operators and hotel partners, TUI Hotels & Resorts guarantees the strong positioning of the Group’s products and brands with respect to one another and the competition. Optimal source market and destination strategies are guaranteed by the joint planning and development of new hotel projects with the Group tour operators and the hotel companies involved in each case.

20 TUI Sustainability Reporting 2006/2007 Our business

Shipping – on the move worldwide The Shipping segment is divided into Container Shipping and Cruises run by the operative Group companies Hapag-Lloyd AG and Hapag-Lloyd Kreuzfahrten GmbH respectively. The Shipping segment created a turnover of around Euro 6.3 billion in the 2006 financial year and employs 8 571 staff.

Container Shipping – efficient goods transport worldwide Hapag-Lloyd is globally active. With over 330 offices and agencies in more than 100 countries, the company boasts a presence on all five continents. As one of the leading providers of house-to-house international container transport, Hapag-Lloyd chose the principle of “one partner, one system“ to provide complex logistics services along the whole transport chain, backed up by a comprehensive package of services.

The main challenge in the Container Shipping business in 2006 was the integration of the Canadian container shipping company CP Ships acquired in October 2005. At the end of the 2006 financial year, Hapag-Lloyd operated 138 ships, including all of the CP Ships fully integrated in 2006. Hapag-Lloyd’s scheduled shipping business in the 2006 financial year reached a global transport capacity of 5 million standard containers (TEU, Twenty Foot Equivalent Unit). Container Shipping therefore generated an overall turnover of around Euro 6.1 billion.

Cruises – modern holidays In addition to Container Shipping, the Shipping segment also incorporates Hapag- Lloyd Kreuzfahrten GmbH (Cruises). This company boasts cruise liners positioned in the luxury and premium segments in the German market, and particularly in the lifestyle and expedition cruises business. The fleet includes the following cruise liners “MS Europa“ (5-star plus), “MS Hanseatic“ (5-star), “MS Bremen“ (4-star) and “MS Columbus“ (3-star). Their holiday routes criss-cross the seven seas.

TUI Sustainability Reporting 2006/2007 21 Our business

Corporate Governance

The actions of TUI AG’s management and control bodies are determined by the principles of good and responsible corporate governance.

Full compliance with the recommen- Corporate governance at TUI complies fully with the regulations and aims of the dations of the German Corporate German Corporate Governance Code. The executive board and the supervisory Governance Code board discussed the updating of the Declaration of Compliance with the German Corporate Governance Code at its meeting on 14 December 2006 and issued its joint declaration of compliance pursuant to Section 161 German Stock Corporation Act. It is permanently made available to the public on TUI AG’s website. TUI AG therefore complies fully with the regulations in the latest version of the German Corporate Governance Code dated 12 June 2006.

Cooperation between the executive TUI AG is a company governed by German law and therefore regulated by the Ger- board and the supervisory board man Corporate Governance Code. One of the basic principles laid down in the Ger- man Stock Corporation Act is the dual governance system made up of the executive board and the supervisory board – each with their own special areas of competence. The executive board and the supervisory board of TUI AG work closely together in a professional relationship characterised by trust in pursuing their responsibilities to manage and supervise the company.

The supervisory board advises and supervises the executive board during its management of the company. It is involved in strategy and planning decisions, and consulted on all issues of fundamental importance to the company. The articles of association covering the executive board include supervisory board consent provisos covering major transactions – such as defining the annual budget, and major acquisi- tions and disinvestments. The chairman of the supervisory board coordinates the work of the supervisory board, convenes its meetings, and acts as its spokesman.

The executive board informs the supervisory board comprehensively and punctu- ally in writing and at its regular meetings on how business is doing, the status of the Group, and its risk management. Extraordinary supervisory board meetings may be convened when necessary to discuss significant events. The supervisory board has defined its own articles of association to regulate its work. The representatives of the shareholders and the employees meet separately if necessary when preparing for the meetings.

22 TUI Sustainability Reporting 2006/2007 Our business

In accordance with the Co-determination Law and its articles of association, the TUI AG supervisory board has 20 members, of which half are voted in by the shareholders and half by the employees. They both have the same period in office. There are currently no plans to introduce different periods of office for the shareholders’ representatives. In accordance with the new regulations laid down by the German Corporate Governance Code, the representatives of the shareholders were voted onto the supervisory board separately at the last election which took place at the annual general meeting on 10 May 2006. The supervisory board does not include any former members of the TUI AG executive board. The supervisory board includes an adequate number of independent members with no commercial or personal relation- ships with the company or its executive board. The period of office of members of the supervisory board is five years, and the current period of office ends at the annual general meeting in 2011.

The supervisory board has formed two committees from its members – the executive committee and the audit committee – to prepare and supplement the overall activities conducted by the supervisory board. The executive committee and the audit committee each consist of six members equally divided up amongst the representatives of the shareholders and the employees. The chairman of the audit committee has special knowledge and experience in the application of auditing principles and internal auditing methods by virtue of his profession. There are no plans at present to set up any additional committees.

Transparency TUI immediately, regularly and simultaneously informs the public and the financial markets about the economic situation of the Group and any relevant new information. The annual report and the interim reports are published within the specified deadlines. Press releases and ad hoc statements where necessary provide information on any new events and developments. Shareholders and interested members of the public can also subscribe to a newsletter which reports on all of the new aspects concerning the Group. All information is made available simultaneously in German and English and is published in print, as well as suitable electronic media such as e- mail and the internet. The www.tui-group.com website also provides comprehensive information on the TUI Group, TUI shares and the whole “Sustainable development“ complex.

TUI Sustainability Reporting 2006/2007 23 Strategic management processes

“Las Cañadas del Teide“ National Park (Tenerife, Canary Islands) as an example of TUI’s biodiversity strategy: Protecting nature conservation areas by acquiring UNESCO World Natural Heritage Site status (2007). Strategic management processes Sustainability management Philosophy and principles Compliance Risk management Safety and crisis management Innovation management

24 TUI Sustainability Reporting 2006/2007 Strategic management processes

Strategic TUI is a globally active management processes company which cannot isolate itself from the growing and broad-based social expectations for sustainability leadership. TUI faces these complex challenges and the associated target conflicts with professionalism and competence. We are fully aware that we must provide convincing arguments. The public is not just interested in how much we earn but how we earn it.

TUI Sustainability Reporting 2006/2007 25 Strategic management processes

Sustainability management across the Group

Sustainability – a key element of our corporate strategy “Going beyond“ – going the extra mile, and dedication to create something new, is a dynamically lived part of TUI’s corporate culture. Innovative strength, fascinating products and committed staff guarantee TUI’s long-term economic success. A major part is also played here by the company’s good reputation founded on its enthusias- tically endorsed responsibility towards people and the environment. We are therefore fully committed to our sustainable and future-oriented corporate governance. “Going beyond“ here for TUI also means breaking new ground, setting the pace, and a deeply rooted commitment to do more than merely implement the letter of the law: it means a real caring approach, the professional handling of commercial risks, and high levels of transparency towards all of our stakeholders. As a tourism market leader, and employer of over 53 000 staff, we are therefore fully aware of our major social responsibility. We therefore voluntarily incorporate social and environmental aspects in our general business activities.

Sustainable development for TUI means a profit-oriented corporate strategy which incorporates environmental and social needs. This means harnessing the potential cf. particularly Chapter “Reports, of our staff through motivation and flexible workflows organised by the employees reporting”, p. 73-75 itself. It means binding employees to the company in the long term, and ensuring that the company has a high quality inflow of young staff through its training measures and awareness campaigns in universities. It means promoting and safeguarding the health and safety of our employees. It stands for the responsible use of natural resources and the environment at our locations and holiday destinations, as well as developing and continuously improving environmental management systems, and integrating environmental and product quality. Other aspects include being involved in a responsible way as a member of the society at our office locations and holiday destinations, and acting prudently when using the areas of influence at our disposal. It also means incorporating the often contradictory expectations within feasible long-term solutions by engaging in a continuous and open dialogue with all of our stakeholders.

Our commitment to our employees, the environment and society is therefore no superficial obligation but rather a duty in our own best interests to maintain our market leadership and protect the future competitiveness of our company. And this not only applies internally to our Group: we are increasingly expected to also take into consideration environmental, social and economic aspects when selecting our business partners.

26 TUI Sustainability Reporting 2006/2007 Strategic management processes

Our sustainable development principles We promote innovation and the development of high quality products. We are an attractive employer for our staff, junior employees and young talent. We use resources (e.g. water, land with high biodiversity) with the aim of reducing the environmental impact of the Group by implementing continuous improvement strategies. We invest in efficient energy and engine technologies to avoid global climate change. We are oriented to the needs of our customers. We are actively involved in the economic, environmental and social development of our business locations and destinations.

Organisation Cooperation between the corporate centre departments and Group companies is required to implement and shape sustainability strategies across the Group. TUI set up a CSR Council for this purpose coordinated by Group Corporate Environmental Management/Sustainable Development.

The CSR Council includes representatives from relevant corporate centre departments. The CSR Council reports to the executive board member responsible for sustainable development. It is also closely networked with the environmental and sustainability coordinators of the Group companies who meet once a year at the special “CoCoS“ meeting (Coordinators’ Conference for Environmental Management and Sustainable Development). These conferences focus on environmental and social sustainability, and reporting the performance and best practise examples of all Group companies.

TUI Sustainability Reporting 2006/2007 27 Strategic management processes

econsense – Forum for Sustainable Development of German Business Open dialogue and transparency are permanent aspects of our corporate values. As one of the founding members of econsense, TUI AG has committed itself voluntarily to pursue environmental, economic and socio-political sustainability. The “Forum for sustainable development“ is an initiative of German business represent- ing leading national and international companies and organisations which have integrated the principles of sustainable development within their corporate strategies to tackle the associated economic, environmental and socio-political issues.

It engages in open dialogue with business and policy makers, stakeholders in NGOs, scientists and the public, to discuss the responsibilities and opportunities of sustain- Active membership in globally active able development. This involves the elaboration of political strategies to get to grips sustainability networks with the challenges of sustainable development. The forum has set itself the task of generating ideas, supporting sustainable development with concrete activities, and discussing strategies, policy and business demands, and concrete solution possibili- ties.

As a member of econsense, we stand for the following business principles: We pledge to treat all resources compatibly with the principles of sustainability, and to align our actions to the recognised national and international guidelines and treaties. We are willing to use our skills in the interests of sustainable economics. We intend to play an active and leading role in the political decision making process on sustainable development by elaborating concrete and innovative solution strategies. Sustainable development in our interpretation includes transparency and open dialogue. We therefore make ourselves heard nationally and internationally as qualified and committed contacts open for dialogue with policy makers, scientists, stakeholders and business. We promote the self-initiative and innovative strength of the business community on behalf of sustainable development. We intend to expand our sustainable development competence, and support and mentor as an active partner other companies, private households, and the public sector to help foster greater sustainability.

28 TUI Sustainability Reporting 2006/2007 Strategic management processes

Tour Operator’s Initiative for Sustainable Tourism Development To push forward and promote the concept of sustainable development, TUI launched the Tour Operators’ Initiative for Sustainable Tourism Development (TOI) in 2000 together with other tour operators and with the support of UNEP, UNESCO and UNWTO. All of the members of this global initiative enter voluntary self-obligations for the ecological, economic and social sustainability of tourism development:

“As leading tour operators, we are co-responsible in a special way for the wellbeing of the people we come into contact with as a result of our business. This applies to our customers, so that they continue to benefit from optimal services in future, as well as the inhabitants of our destination countries, whose economic development depends on conservation of their natural environmental conditions, cultural traditions and social customs. We firmly believe that our business sector can make significant contributions in this context. In our own long-term interests, as well as in the long-term interests and benefit of our customers, we wish to do everything in our power to prevent at the earliest possible stage any negative impact tourism may have on the economy, employment, culture, society, nature and environment of the destination countries, and to ensure that tourism produces positive results on prosperity, quality of life and biodiversity.

In the holiday countries themselves we particularly wish to: Make a contribution to the conservation of animals, plants and the countryside, and protect conservation areas and cultural heritage. Ensure that land and soil, water, energy resources and other natural resources are used carefully and economically, and that waste and environmental pollution is avoided wherever possible. Incorporate the local authorities in the destinations in tourism planning, and promote the use of local products and services. Strengthen our partners in private companies and the public sector in creating sustainable structures for tourism, and further developing such structures.

TUI is committed to national and interna- We shall firmly anchor the principles of sustainability in our corporate policies, tional agreements continuously regulate all environmentally-related, cultural and social aspects – Global Code of Ethics of our activities in destination countries, and inform the public about our (UN World Tourism Organisation) activities. And in particular, we wish to encourage our customers on the basis – Guidelines of the Tour Operators’ of carefully planned educational campaigns to understand and respect the Initiative for Sustainable Tourism culture and customs of people in the countries they visit as holidaymakers, Development recognise the causes of any existing environmental problems, to change for – The principles of econsense – Forum for the better any harmful behaviour in this context, and to commit themselves Sustainable Development of German to the sustainable use of natural resources.” Business

TUI Sustainability Reporting 2006/2007 29 Strategic management processes

Our foreign companies are also involved in sustainable development networks:

Win-Win for customers and destinations TUI UK is a member of the British Travel Foundation (the former Sustainable Tour- ism Initiative). The purpose of this independent organisation is to support the tourism industry in its efforts to promote sustainable tourism. TUI UK and the Travel Foundation work closely together to concentrate their activities on protecting and improving the environment, and preserving cultural traditions in communities at the holiday destinations.

A range of projects presenting ideas and testing solutions have been initiated in cooperation with the local destination management and partners. The results of these projects are used to formulate guidelines for the whole tourism sector. Thanks to dedicated cooperation between TUI UK and the Travel Foundation, tourists enjoy high quality holidays in the firm knowledge that their holiday destination is being safely looked after and sustained for the benefit of future generations. Companies benefit from being able to cater better to the needs of their customers, at the same time as protecting the resources on which their own commercial futures depend. The communities benefit from the higher profits generated by tourism, which have a positive knock-on effect in local economies.

Tourism for Development In France, the Nouvelles Frontières Group (TUI France) cooperates with the humani- tarian organisation “Tourism for Development“ (TFD). This organisation finances and supervises micro-projects concentrated on fighting extreme poverty in the tourism destinations. TFD’s vision is to get tour operators to engage in regional projects to improve and safeguard local living conditions. There are also broad opportunities for travel companies and holidaymakers to become directly involved. Nouvelles Fron- tières has opted for this involvement, combined with the wish to be a role model and pioneer for the whole sector.

30 TUI Sustainability Reporting 2006/2007 Strategic management processes

Corporate Guideline for employees

Doing business along sustainable economic, ecological and social lines is an indispensable part of TUI’s corporate culture. This also includes integrity in dealing with our business partners, employees, shareholders and the general public.

Corporate responsibility – rather voluntary than regulated Precisely because we are a services group, we depend on impeccable behaviour towards our partners, society and the environment to gain and maintain the trust of policy makers and the general public. This gives us the room for manoeuvre we need instead of regulation and control. It also simultaneously boosts our brand value and our popularity as an employer. Corporate ethics at TUI is not a new “management fad“ but an important element of modern future-viable corporate governance. Future managers will need skills which go well beyond the traditional business administration instruments. They will (ethically) reflect the position of the company in society, and have to initiate suitable measures to implement responsible conduct. TUI has to work every day to maintain its very positive global reputation. This involves hard work at our locations and our destinations: through integrity and fairness, through high levels of environmental and social responsibility and awareness, as well as dialogue-oriented transparent business practices and actions.

This is the principle behind our Corporate Guideline for employees. It is the reason why our strategic evaluations and our day-to-day business have always been based on high ethical standards and the strict maintenance of mandatory stipulations. The corporate image of our Group and the Group companies is crucially influenced by the appearance, actions and conduct of each and every one of us. Every employee bears a share of responsibility that we as a Group and each Group company enjoy high levels of respect and an excellent reputation worldwide. The regulations are minimum standards and obligatory rules to be observed by all TUI Group employees. Every Group company can add more far reaching regulations in line with their national benchmarks. The regulations are intended to help meet the ethical and legal challenges of our day- to-day work. They are a source of orientation in conflict situations. Precisely because we are a services group, our commercial success depends on winning and binding our customers through our impeccable conduct so that we continue to chart our successful course in the markets in which we excel.

Guidelines as minimum standards The guidelines reflect TUI’s values in the main areas affecting the way we conduct our business: Basic codes of conduct Governance, accountability and supervision Conduct with respect to business partners Avoiding conflicts of interest Conduct with respect to company property and facilities Conduct with respect to information Environment, safety and health Irregularities

TUI Sustainability Reporting 2006/2007 31 Strategic management processes

Compliance

TUI companies must comply with the environmental and occupational safety regulations in each legal system in which TUI is active, as well as a number of international treaties affecting the transport and aviation sectors. These laws, directives and treaties regulate numerous aspects including aircraft noise, the emission of air, water and soil pollutants, the use, transport and storage of hazardous goods, and the remediation of contaminated sites.

Observing the letter of the law The violation of environmental laws and directives can be punished by serious fines and civil or criminal law sanctions. And the presence of contamination on TUI’s facilities may require TUI to pay the remediation costs. It could also lead to environmental authorisations for some TUI companies being re-examined, modified or with- drawn by issuing agencies. Even though TUI confirms that it materially complies with the environmental laws and authorisations applicable to its business activities, costs arise from time to time to comply with these demands. Environmental costs did not have a significant influence on TUI’s business activities in the past, and TUI does not expect environmental costs in future to reach serious levels, nevertheless, new information or future developments such as changes in laws and directives applying to companies in the Group, could cause these costs to take on significant proportions.

TUI sold a number of companies involved in heavy industry, including companies engaged in coal mining, steel making, shipbuilding and oil exploration, as well as manufacturing companies. TUI may still be subject to environmental liabilities in accordance with current legislation and via contractual guarantees issued by these companies.

32 TUI Sustainability Reporting 2006/2007 Strategic management processes

Risk management across the Group

The TUI Group is active around the world in its two core businesses, Tourism and Shipping. These activities naturally involve risks which differ in accordance with the type of business. These risks may be associated with its own business practices or be caused by external factors.

Risk policy The principles of good corporate governance include the responsible management of commercial risks. The principles of good and responsible corporate governance determine the actions of TUI AG’s executive and supervisory boards. The TUI AG executive board and the management across the TUI Group have access to comprehensive cross-Group and company-specific reporting and control systems supporting the identification, evaluation and control of these risks. These systems undergo continuous further development, adjustment to changing conditions, and checking by external auditors.

TUI’s risk policy is focused on continuously and sustainably increasing the value of the company, achieving its medium-term financial targets, and safeguarding the company’s long-term viability. It is therefore a vital part of overall corporate policy.

The purpose of risk management is to identify all types of risk early on, evaluate them, and to limit their impact so that they are overridden by the economic benefits.

Risk management In fulfilling its overall responsibility within the Group, the TUI AG executive board has elaborated regulations incorporating the main elements of risk management. They apply to all companies within the Group. In addition, the executive board has implemented a control and management system which regularly measures, evaluates and controls the development of its businesses and the associated risks. The planning and control system carries out monthly analysis on deviations between actual and planned business developments, to identify risks early on which may jeopardise the commercial success of the company.

The management in each company is responsible for early identification and reporting, as well as the handling of commercial risks. Control is in the hands of the next higher management level in each case.

The relevant section of the management report in the TUI AG 2006 annual report contains details on the TUI Group’s risk policy and risk management.

TUI Sustainability Reporting 2006/2007 33 Strategic management processes

Safety and crisis management

TUI Deutschland’s tourism crisis management system was tested and certified by independent experts from PricewaterhouseCoopers (PwC). The tour operator took this step to make its holiday travel even safer.

The certificate confirms that TUI satisfies all the requirements for efficient crisis management. The PwC experts carried out over 100 separate tests. These examina- tions looked at various aspects including measures for crisis prevention, identifying and overcoming crises, crisis management control activities, communication during crises, and the organisation of crisis management.

The tests probed aspects such as whether TUI implemented suitable measures for crisis prevention, such as security checks at hotels or transfer services, how quickly information is passed on to the crisis management team, and whether the technical infrastructure is adequate to cope with actual crises.

“On the basis of these tests, we came to the conclusion that TUI Deutschland achieves in all areas the required classification “Standardised”, says Andreas Borcherding from PwC. PwC also identified areas for improvement by the first tour operator to subject its crisis management system to such comprehensive testing. The improvement potential identified included further raising the “internal crisis communications“ awareness and training of staff in destinations. TUI Deutschland intends to undergo regular external testing in future.

Background The testing was based on a new standard for tourism crisis management developed by PwC. This was elaborated along the lines of well established national and international risk management and quality standards: DIN EN ISO 9001, IDW Standard for Testing Risk Early Warning Systems, and the Enterprise Risk Management/Integrated Framework (COSO II).

Ten new standard elements overall were defined and examined: tourism crisis management objectives, crisis prevention, crisis identification, crisis analysis and evaluation, tourism crisis management control activities, crisis communication, monitoring and adaptation measures, tourism crisis management organisation and documentation.

34 TUI Sustainability Reporting 2006/2007 Strategic management processes

Family Assistance Team, TUIfly After a Swissair plane crash in 1998 in Canada, and the subsequent intensive reporting in the media on the way the relatives were handled, the Group carrier launched a review to expand its emergency network to improve the in situ handling of victims and relatives. Discussions with psychologists and other airlines gave rise to the idea of the Family Assistance Team. Management began to recruit and train volunteers in November 1998. An external trainer ran the three-day basic training seminar and extra refresher courses. These seminars teach the volunteers the fundamentals of dialogue and care during crises, as well as how to cope with stress and grief reactions.

The first real assignment was the emergency landing of an aircraft in Vienna in 2000. The Family Assistance Team has continuously further developed since this time: the team now includes around 100 voluntary members of staff. In addition to personal contact and caring for the victims, their tasks also include organisational duties such as procuring blankets, and all of the coordination involved in the activities behind the scenes. The members of the team also assist TUIfly colleagues during abnormal situations such as a death on board an aircraft.

Emergency Care Team, TUI A second team was established in February 2001 on the initiative of Klaus Rütt, TUI AG crisis team manager, to directly support holidaymakers during crisis situations in the holiday destinations. The team consists of 340 volunteer Group employees forming sub-teams to help and assist TUI holidaymakers during potential emergency situations. The members are chosen for their ability to communicate, their keenness to make decisions, their ability to cope with stress, as well as their flexibility and their patient “listening skills”. Members of the team must undertake three days of basic training and annual one-day refresher courses. The team does not do first aid or the work of trained psychotherapists: the emergency care team is there to provide victims with help and advice in situ and act as first point of contact.

The two teams work together closely to be of immediate use to TUI customers during serious situations, and to provide care and support.

TUI Sustainability Reporting 2006/2007 35 Strategic management processes

Innovation management within the Group TUI Innolympics 2006

Success factor: innovative power TUI recognises the innovative power and creativity of its employees as a major success factor helping the company to maintain its commercial success and protect its leading position in the highly competitive tourism market.

The “TUI Innolympics“ innovation campaign initiated across the Group by the executive board in 2006 was dreamed up to harness the wealth of ideas of all employees. This motivation and promotion of creativity goes well beyond traditional “ideas management schemes”. The crucial aspect is the further development of creative ideas to generate detailed concepts to enable rapid implementation in the market or roll out across the Group. Achieving this objective requires the voluntary and expertise- oriented formation and perfect coordination of innovation teams. Following the very positive results of the first campaign, this innovation model is now to become a permanent part of business strategy, and product and process development.

Over 3200 ideas were submitted across the Group within the framework of this initiative – impressively confirming the innovation potential of TUI employees. Many high quality ideas were defined further and intensely analysed to evaluate their implementation potential. The Local Innovation Teams (LIT) then became involved in the detailed and often difficult selection process. Seven of these expert committees have been set up in TUI’s different source markets and platforms to ensure that every submitted idea was properly evaluated. Following a difficult decision making process and several selection stages, twelve concepts won through to win awards in TUI Innolympics: prize giving ceremony four main categories.

New Products and Services Category e.g. 1st place: “Guide Online“ – A virtual service for holidaymakers enabling customers to book their excursions or hire cars by mobile phone.

Marketing and Distribution Category e.g. 3rd place: “EcoResort“ – The Group’s internal quality label “EcoResort“ signposts hotels and clubs within the TUI Hotels & Resorts’ portfolio which fulfil the defined key criteria.

Process Optimisation and Efficiency Category e.g. 3rd place: “Pocket-format catalogues“ – Reducing the size of catalogues to 81 per cent of their standard dimensions to reduce paper consumption, production costs and environmental impact.

New Business Models Category e.g. 2nd place: “Enjoying health“ – By combining holidays with health schemes, customers can do something for their health during their holiday and gain financial allowances from their medical insurance companies.

36 TUI Sustainability Reporting 2006/2007 Strategic management processes

TUI Innolympics accompanied by intense internal reporting

“The seven Local Innovation Teams (LIT) presented senior management with the wealth of ideas generated by the employees at a poster session on Majorca. Employees submitted more than 3 200 ideas to the first Group-wide innovation campaign organised by TUI, and thus exceeded all expectations. The poster session on the Balearic Island revealed a selection of ideas which are now being further developed to produce concepts and business plans.“ (Extract from the TUItimes International staff magazine, August 2006).

TUI Sustainability Reporting 2006/2007 37 Targets

Targets Achievement of environmental and sustainability targets 2004 – 2006 2007 – 2010 targets 2007 – 2013 targets e.g. climate protection through fleet renewal

38 TUI Sustainability Reporting 2006/2007 Targets

Sustainable increase of corporate value combined with a strengthening of our position as a sustainable Achievement of environmental and brand company are primary objectives for us. For this purpose we sustainability targets 2004 – 2006 will continuously integrate relevant sustainability aspects into company management and core business processes across the Group, and further raise the awareness of our employees for interdisciplinary and inter-project cooperation throughout the Group to a further sustainable development.

TUI Sustainability Reporting 2006/2007 39 Targets

Achievement of environmental and sustainability targets 2004 – 2006 Status: Group and Group companies

The environmental and sustainability targets laid down in the 2003/2004 Group environmental report, were regularly analysed to evaluate their performance and assess their current validity and status on the basis of the annual reporting of the Group companies. The corporate centre also participated in this target and target-achievement programme.

Care was taken when defining the targets to ensure that the continuous improvement process was initiated and continued. The status of 70 defined targets was summarised at the end of 2006 to enable a target achievement analysis to be carried out.

The following diagram illustrates the most important target categories defined in the last sustainability report for 2004 – 2006:

Others 11 %

Product development and design 5 % Communications 19 %

Target achievement 2004 – 2006 Waste avoidance 6 %

Supply chain: suppliers and contractual partners 6 % Process improvement 17 %

Resource utilisation 6 %

General 8 % Climate protection 14 % Certification and environmental management 8 %

More than half of the targets were defined on communications, process optimisation and emissions reduction. Whilst 58 targets were achieved, or continued beyond the reporting periods because the targets largely involved continuous improvements, 11 of the targets have not been achieved so far (status: “open”), and one target was no longer pursued (status: “unfulfilled”).

40 TUI Sustainability Reporting 2006/2007 Targets

The following presents the status of the targets in the main categories:

14 Open Ongoing 12 Fulfilled Unfulfilled Target achievement status 2004 – 2006 10

Number 6

0 - Others General and design Waste avoidance Communications Resource savings tractual partners Climate protection Suppliers and con Product development Process improvement Certification and EMS

Targets still open mainly involve the communications, process optimisation and emissions categories. The table on page 42 presents the 11 open targets and the no longer pursued target. The following explains why the delays arose in achieving the targets:

Around 33 per cent of the total Group turnover in the 2005 financial year was generated by DIN EN ISO 14001 certified companies. This indicator cannot be produced for the 2006 financial year because, due to the integration of CP Ships within Hapag-Lloyd AG, a full one-year EMS management cycle has to pass in order to consider the total turnover of an integrated company being obtained in a busniess environment pursuant to DIN EN ISO 14001. It is expected that the one- third threshold for certified consolidated turnover will be clearly exceeded. Due through the Restructuring processes of TUI Deutschland, their in-house environmental protection targets could not be achieved. However, these targets are integrated within TUI Deutschland’s certified environmental management system to continuously improve operative environmental protection. Targets for the publication of the environmental reports of individual Group companies are not being pursued further because these have either been incorporated in other Group companies or are now part of consolidated reporting.

TUI Sustainability Reporting 2006/2007 41 Targets

The remaining targets will be integrated into the targets of the next reporting period. The return ratio of consolidated environmental reporting has not risen to 100 per cent so far because some Group companies do not yet have the systems in place to generate qualitative and quantitative environmental data. To solve these problems, the corporate centre has developed methods to generate reliable expecta- tion values in the quantitative reporting. Work is also continuously carried out on improving the environmental monitoring infrastructure.

Table detailing specific open targets Company Project/activity 2004 – 2006 targets Status Category Elaboration of the first Hapag- Hapag-Lloyd Publication in 2004 Open Communications Lloyd AG environmental report Implementing environmental moni- Nouvelles Environmental monitoring toring concentrating on hotels in all Open Process improvement Frontières of the destinations in its portfolio 35 % of all TUI AG turnover should Certification and en- Expansion of ISO certification TUI AG be generated by certified Group Open vironmental manage- throughout the Group companies ment systems (EMS) Environmental monitoring TUI AG Increase returns to 100 % by 2006 Open Process improvements of TUI AG Group companies Continuous improvement of in-house environmental Heating energy/heated area: - 6 % Open Climate protection protection Electricity usage/employee: - 5 % Open Climate protection TUI Paper consumption/employee: - 2.5 % Open Resource savings Deutschland Proportion of waste separated for Open Waste avoidance recovery: 80 % Broaden distribution of environment Unful- Environment newsletter newsletter to include TUI-external Communications filled distribution list From 2004, used by TUI Group Spain-wide use of CD-ROMs contractual partners on Tenerife. Suppliers and TUI España covering “Environmental man- Open Step-wise roll-out throughout contractual partners agement in hotels“ (in Spanish) Spanish market Environmental reporting Publication of Britannia Airways Open Communications and impact analysis environmental report TUI UK Conducting officially certified training “Environment Completion by 2005 Open Process improvement and sustainable tourism”

42 TUI Sustainability Reporting 2006/2007 Targets

2007 – 2010 targets Sustainable development within the Group

We are set on strengthening our position as a sustainable company. This involves a continuous process of integrating sustainability-relevant aspects and indicators in department-specific workflows and key business processes. All-round focused communications and training will firmly root the sustainability philosophy in the minds of employees in all corporate centre departments and Group companies.

Sustainability indices. A priority of paramount importance is to remain and be included in sustainability-oriented indices and rankings. This improves our financial performance and is an important indicator of the sustainability accomplishment of our Group because only companies which satisfy the specific sustainability criteria are included in such indices. Continuing our inclusion in the Dow Jones Sustainability Index World (DJSI), and other international and national ethics indices in particular, is both a challenge and a target.

Stakeholder dialogue. Dialogue with our stakeholders will continue to be a major component of our sustainability strategy. Balancing different needs can only be achieved on the basis of open dialogue: on the one hand to improve understanding of our actions and conduct (licence to operate), and on the other hand, to localise and strategically break down areas of contention caused by conflicts of interest. Stakeholder feedback is an essential source of information for us because it enables us to further optimise our sustainability performance and thus boost corporate value and identify risks early on. We therefore set ourselves the objective of further systematising stakeholder dialogue, and incorporating the results of this dialogue into decision making processes where possible.

Transparency. Another of TUI AG’s key priorities in coming years is improving its reporting transparency. On the basis of our environmental reporting, whose systematic implementation already goes back several years, we will continuously and systematically record and present our commitment to employees and society, and be rated in the overall context in sustainable development indicators. We will continue to actively and constructively participate in this context in technical committees (e.g. in cooperation with econsense, CSR-Europe, WBCSD, OECD, BMU and UBA, ISO Work- ing Group SR etc.), and join in the ongoing debate on the future structure and development of sustainability reporting (cf. Global Reporting Initiative; cf. ISO 26000).

TUI Sustainability Reporting 2006/2007 43 Targets

Strategic Group objectives Tourism. The tourism market is currently undergoing restructuring. This is largely attributable to the growing demand for separately bookable holiday modules. This development is driven by the dynamic spread of the internet as an information and booking platform, as well as the continuing growth of low cost carriers.

Sustainable increase The structural changes to the market make it essential to further develop existing of corporate value business models to fully capitalise on market growth. This primarily concerns tour operators and aviation. TUI anticipated this change early on and played an active role in shaping its development. Clear strategies have been defined to generate further profitable growth:

Medium-term integration of the TUI Group’s European flight operations. The first step in the aviation strategy involved the merger of the two German carriers Hapag-Lloyd Flug and Hapag-Lloyd Express to form the new brand TUIfly.com. A standard online portal was created under this new brand in January 2007. Other strategic targets are the integration of all of the TUI Group’s European flight activities under the new TUIfly.com brand and distribution platform. The strategy pursued here forms the basis for sustainably participating in the low cost and modular holiday growth segments.

Expansion of web-based tour sales. The further expansion of the sale of holidays over the internet is planned as part of our distribution strategy. A 50 per cent average growth target in each source market has been set for the next three years. This is associated with the building up of the new TUIfly.com brand into an international travel platform.

Entry into the high growth premium volume business in the German cruise market. Cruise activities will also be expanded by entering the strongly growing German market for premium volume business.

Further selective expansion of the hotel segment by 2008. The hotel strategy involves further selective expansion of the existing portfolio. The planned growth in this part of the value chain is aimed at strengthening the range of hotels available for classic package tours, as well as the strongly growing market for modular travel.

44 TUI Sustainability Reporting 2006/2007 Targets

In addition to expansion of the growth segments, the structural changes in the market require further development of the existing production structures. A programme of measures has been defined to reduce specific production costs and to realise further cost savings of Euro 250 million by 2008.

Shipping. The Container Shipping business mainly concentrated its efforts in 2006 on the integration of the Canadian container shipping company CP Ships, acquired in October 2005. By the end of the third quarter 2006, all of the operative segments of CP Ships, particularly the shipping and container fleets, and the scheduled services, had been fully integrated within Hapag-Lloyd and have subsequently been managed under the Hapag-Lloyd name since this time.

TUI pursues a growth strategy for the Shipping segment with a minimum target of around 9 per cent per year correlated with the expected average growth in volume across this sector. Pursuing this growth is to be achieved on the basis of the following strategies:

Selective capacity growth of between 8 to 15 per cent depending on geographical markets. Efficient focus of investment in large ship classes. Consequent use of synergies following the integration of CP Ships concluded in the 2006 financial year. Flexible capacity management by achieving a balanced mix of fleet financing between own ships/long-term charters and short-term charters.

Long-term improvement in the Group. Another key measure in the long-term optimisation of the TUI Group’s prof- TUI Group’s profitability itability is improving its asset use. A new programme is therefore implemented to cut debt further. Debt is to be shrunk by around Euro 1 billion overall by 2008 by divest- ing marginal activities and optimising the tangible assets. Other options to reduce the amount of capital tied up in aviation will also be looked at in parallel.

The programmes and measures which have been initiated not only affect the Tour- ism and Shipping operative divisions, but also TUI AG corporate centre. Head office expenses are to be reduced by around one third by way of a cost savings programme.

TUI Sustainability Reporting 2006/2007 45 Targets

TUI’s environmental aspects As described on page 54, TUI developed methods to determine the environmental aspects. These environmental aspects include: The emission of greenhouse gases into the atmosphere Natural resource usage and/or waste generation Affecting or reducing biodiversity as a result of TUI’s business activities

2007 – 2010 targets Environment-related targets of the TUI Group 2007 – 2010 The environmental reporting of TUI Group companies for the 2006 financial year described almost 200 individual targets focusing on TUI’s most important environmental aspects.

Others 14 % Climate protection 13 %

Natural resource savings 13 % Communications 17 %

Process improve- Certification and environment 7 % mental management 10%

Waste avoidance 8 % Biodiversity protection 9 %

Supply chain: suppliers and contractual partners 9 %

46 TUI Sustainability Reporting 2006/2007 Targets

The following table illustrates the most important targets in each main category.

Group company 2007 – 2010 targets Climate protection TUIfly Nordic Upgrading two aircraft with winglets Hapag-Lloyd Container Reducing earthbound container transport in favour of barges and rail transport Shipping Iberotel Use of renewable energy sources in staff accommodation Nordotel Reducing electricity usage by using energy-efficient equipment and lighting Robinson Installation of solar energy units Natural resource savings Dorfhotel Replacing the existing water taps with sensor-activated taps Iberotel Reducing the amount of laundry by replacing towels only at customers’ request Tantur Reducing water consumption by modernising the existing facilities TUI Hellas Changing to unbleached recycling paper Developing E-Journey-Logs to enable pilots to write and send flight logs TUI UK from a laptop Certification and environmental management systems Danubius Successful certification pursuant to EMS and QMS standards Gulliver Travel Successful certification pursuant to ISO 14001 Iberotel Certification of all hotels in Egypt pursuant to ISO 14001 Installation of an environmental quality management system to control TUI España and improve internal processes and organisation, and to control compliance with legislation TUI Hellas Successful certification pursuant to ISO 14001 Biodiversity protection Integration of forest fire risk in the excursion programmes, Aeolos and tree planting campaigns Participation and investment in environmental management, conservation initiative and sustainable development of reforestation in the Tsavo National Park. ARP Group Directly supporting the local community, development projects and species conservation Dorfhotel Supporting the establishment of a game reserve for wild cats Hapag-Lloyd Container Replacing ballast water in the open seas, and containment methods Shipping for ballast water Tantur Active role in tree planting campaigns and species conservation

TUI Sustainability Reporting 2006/2007 47 Targets

Group company 2007 – 2010 targets Suppliers and contractual partners Increasing the awareness of our contractual partners in destinations for the OFT Reisen importance of environment and nature protection, as well as species conservation in diving areas Further development of the environmental monitoring of hotels, implementing TUI Deutschland a supplier survey through central purchasing Analysing all of the services provided by contractual partners in the destinations TUI Nederland to assess their social and environmental aspects, including animal protection TUI UK Awarding TUI UK Gold Medal Awards to UK contracted hotels Waste avoidance ARP Group Applying implemented mechanisms to avoid, separate and dispose of waste Broadening waste recovery and improving the separation and disposal of Grecotel hazardous waste Gulliver Travel Participation in a clean-up project TUI Bulgaria Implementing waste separation TUI Hellas Increasing the proportion of recyclables in the company Process improvement Expanding and optimising reporting on this issue as well as quality control in OFT Reisen this area Setting up an interdepartmental environmental project team to tackle TUI Poland environmental issues at TUI Poland TUI Service AG Higher return rate for TUI Deutschland’s hotel environmental check list Communications Increasing the awareness of head office staff for environmental protection and OFT Reisen its importance for us as a tour operator Systematic incorporation of environmental training courses in the mandatory TUI Dominicana occupational safety training seminars conducted every year in all TUI Dominicana staff centres Motivational training combined with environmental initiatives, such as hikes to TUI España tree planting campaigns and/or clean-up campaigns in nature protection areas Start of internal communications to raise the awareness of the TUI Poland TUI Poland organisation for environmental issues Organise a media event or tour, possibly in cooperation with TUI Hotels, with TUI Suisse the objective of experiencing sustainable development at a destination

48 TUI Sustainability Reporting 2006/2007 Targets

Employee-related Group targets 2007 – 2010 People lie at the heart of TUI’s personnel policy commitment. The success of a company is determined by the good qualifications, commitment and motivation of its staff. Promoting these aspects is one of the main priorities of the Group’s human resources activities.

TUI’s targets are implemented in the pursuit of the following aspects: Supporting corporate policy and strategy Integrated management of HR and organisational development Implementation and control of a learning organisation Acquiring and expanding qualifications to improve staff employability Improving communications by building networks and arranging experience exchange seminars for Group employees

Group social targets 2007 – 2010 TUI’s social commitment is specially focused on improving the quality of life and living conditions in the worldwide destinations in particular.

Stakeholder dialogue. One of the main priorities is the rigorous continuation of dialogue with relevant stakeholder groups, particularly the open and constructive discussion and cooperation with internationally active and locally involved non- governmental organisations (NGOs). In future, this will increasingly include tackling socio-relevant issues such as socially-compatible tourism, human rights, working conditions and child labour. We wish to intensify our commitment to protect children from misuse and prostitution, and therefore strenthen our cooperation with the international children’s rights organisation ECPAT. Cooperation within the Group. The continuous recording of the social commitment of TUI’s international subsidiaries is to be intensified and systematised. Our aim here is to improve the transparency of our global commitment to reveal synergies and potential which can be strategically harnessed. This supports our performance and improves our positioning in a range of ethically-oriented funds and indices. Project support. We plan to continue our support for education and training, science, art and culture, as well as our commitment to socially deprived children and young people. The priorities in each case here will continue to be defined on a decentralised basis by the sponsoring companies themselves. Communications. We wish to improve the communication of TUI’s social commitment. The aim is to increase awareness of our activities in the financial markets and amongst rating agencies, as well as amongst the general public, NGOs and employees.

TUI Sustainability Reporting 2006/2007 49 Targets

2007 – 2013 targets e.g. Climate protection through fleet renewal

TUI’s key approach in its climate strategy is reducing climate- damaging emissions by increasing specific energy efficiency. TUI achieves this by continuously modernising the aircraft fleets of each TUI airline with state-of-the-art technology to reduce the emissions of greenhouse gases.

TUI invests in fleet renewal with a list value of USD 4.7 billion. With the order for 65 new aircraft from Boeing, TUI continues to renew its fleet with new, more energy- efficient aircraft. The latest order involves the 787 Dreamliners, and 737-700s and 737-800s. These aircraft replace older Airbus A310s and Boeing 737s, 757s and 767s.

Compared to the existing fleet and the same flight capacity, the fleet renewal programme will reduce kerosene consumption between 2007 and 2013 by more than 465 000 tons. This corresponds to CO² emissions of around 1.47 million tons.

(t) Monthly kerosene consumption without fleet renewal 60 000

The graph shows the monthly kerosene 465 585 tons total kerosene savings consumption of the new aircraft (orange corresponding to 1.47 million tonnes area) compared to the aircraft they re- CO² 55000 place (blue line).

50 000

Monthly kerosene consumption after fleet renewal

45 000 01/2007 01/2008 01/2009 01/2010 01/2011 01/2012 01/2013 01/2014

The first phase to 2009 involves the step-wise replacement of the short-haul and medium-haul fleet. The second phase starting in 2010 consists of the replacement of long-haul models by type B787 Dreamliners. The Dreamliner is a revolutionary aircraft which uses new lightweight materials and highly efficient engines to reduce fuel consumption by around 20 per cent compared to conventional aircraft of similar type. Because of the higher seat capacities planned as part of the commissioning of the Dreamliner, the absolute fuel consumption in this fleet segment will be reduced by 25 per cent. B787 Dreamliner at TUI UK/Thomsonfly

50 TUI Sustainability Reporting 2006/2007 Targets

Annual kerosene savings after fleet renewal will be more than 127 000 tons of kerosene corresponding to 399 000 tons CO² per year. This represents around 7.8 per cent of the TUI airlines’ CO² emissions in 2006.

280 000 tons annual CO² savings at Thomsonfly. The main beneficiary of the fleet renewal programme will be the UK subsidiary Thomsonfly. The Dreamliner will also join the Arkefly and Jetairfly fleets. Fleet renewal at TUIfly concentrates on replacing the current B737 models with B737-700s and B737-800s.

The diagram below shows the distribution of annual consumption and CO² cuts per airline after replacing old aircraft as part of the fleet renewal programme.

Kerosene savings CO² cuts by per fleet segment (in 1000 t) TUI carriers (in 1000 t)

Previous fleet 579 New fleet -17.0 488 -29.5 -71.9

Thomsonfly TUIfly

149 Jetairfly 112 Arkefly after after before before Replacing Introducing -280.6 B 737 B 787 –16% –25%

TUI Sustainability Reporting 2006/2007 51 Environmental management system

Environmental management system Environmental aspects Climate protection, energy efficiency and emissions Natural resources management Certification Biodiversity strategy Multi-stakeholder dialogue Destination quality and monitoring Environmental quality in TUI holiday hotels

52 TUI Sustainability Reporting 2006/2007 Environmental management system

Environmental sustainability along the value chain The aim of TUI’s environmental management system is the systematic analysis of the environmental impact of TUI Group companies concentrating on climate protection, natural resources management and the protection of biodiversity in TUI destinations.

TUI faces up to the challenges, and develops measures to strategically counteract the Group’s environmental impact.

TUI Sustainability Reporting 2006/2007 53 Environmental management system

Environmental aspects of the TUI Group Identifi cation and evaluation

For a successfull environmental management, TUI must understand and identify all main interactions, so that it can implement focused measures to continually improve TUI’s environmental performance.

Determining environmental aspects Air emissions TUI’s activities have positive as well as negative effects on the local and global

Conserving biodiversity environment. This impact is due to the emissions generated by aircraft and ships, and protecting wild Resource utilisation resources used by the Tourism business, and the numerous activities undertaken by animals customers at the destinations. Describing the interactions is done in terms of environmental aspects which are part of the activities, products or services of a company which can have an impact on the environment. The diagram on the left highlights TUI’s main environmental aspects.

The environmental aspects are evaluated by using an evaluation concept consisting of two dimensions – the size of the environmental impact, and its geographical relevance. Business activities are analysed on the basis of defi ned criteria, and specifi ed according to the two dimensions. Waste generation Water discharge

Land use Signifi cance

Wastewater Noise Water consumption Stronger

Fuel consumption

Biodiversity Countryside and land use Biodiversity seas & oceans Power consumption

Total waste Weaker Hazardous waste Resource utilisation Volatile chemicals Groundwater immissions Geographical relevance Local Regional Global

Managing environmental impact The environmental management systems (EMS) run by TUI and its Group companies are aimed at developing and realising all-encompassing environmental policies, as well as formulating and achieving environmentally-related targets, and therefore managing the environmental aspects arising from its business activities, and reducing as far as possible the negative environmental impact in an appropriate economic framework.

The environmental results are measured against TUI’s overall environmental policy, the environment-related objectives, environment-related targets and other environment-related performance criteria.

54 TUI Sustainability Reporting 2006/2007 Environmental management system

Climate protection and energy efficiency

Climate change is a serious challenge to society as well as individu- als, and particularly also to companies. Findings conclude that it is very likely* that the release of greenhouse gases is responsible for the rise in global temperatures. Global warming can lead to climate change which has a direct and indirect impact on TUI.

Mobility and climate protection Mobility is an essential element in the business model of TUI AG Group companies – in the Logistics and the Tourism sector. The transport of goods and commodities of all types underpins the global economy and is becoming an even higher priority in the face of increasing globalisation. Holiday travel is an essential part of consumption patterns for large sections of the population in Europe, North America, Australia and parts of Asia. Unfortunately, the pressure on the environment intensifies as mobility increases. Climate change is not only a major challenge for society, but also for each and every one of us, and particularly also for companies. This is shown by the results of the Intergovernmental Panel on Climate Change (IPCC), which concludes that it is very likely* that the anthropogenic emissions of greenhouse gases are responsible for global warming. Global warming will change the climate and have a direct and indirect influence on TUI’s business activities.

CO² emissions by aviation and shipping currently only account for a small proportion of total global greenhouse gas emissions. As a sustainably managed company, TUI accepts responsibility for the emissions of greenhouse gases arising directly by the use of fossil fuels – primarily by its airlines and shipping companies, and indirectly by the use of electricity in TUI’s business activities. TUI’s climate-related activities have a first priority to improve the energy efficiency of the value chain and supply chain of its integrated Tourism segment and the Shipping business. This involves the optimisation of all parts of the value and supply chain with specific processes. The climate strategy pursued here is based on two fundamental principles: greenhouse gas avoidance and reduction. TUI’s climate strategy is also focused on adaptation to climate change. In the sense of ecological sustainability, it is vital to determine the already unavoidable environmental, economic and social impact of climate change, and to develop suitable adaptation strategies.

TUI’s contribution to climate protection is based on the separation of economic growth and associated greenhouse gas emissions. The first step is to stabilise total emissions at 2006 levels. This target is to be achieved by reducing the emissions generated by the airlines and Shipping by improving fuel efficiency. Emission avoidance in the Tourism sector is to be achieved by using renewable energy sources, biofuels, and purchasing electricity from providers with certified low-emission production processes.

* “Very likely”: Probability higher than 90 per cent, cf. IPCC-FAR

TUI Sustainability Reporting 2006/2007 55 Environmental management system

Energy use per sector The energy usage of TUI segments is mainly concentrated on the fossil fuel used in its container shipping business and its airlines. The split here is around two thirds bunker oil and one third kerosene.

Energy usage in TeraJoules (TJ) 2006 2005 2004 TUI airlines 75 009 72 570 65 512 Hapag-Lloyd container ships 149 153 38 514 36 965 Cruise liners 3 701 3 615 2 717 Hotels & Resorts 4 073 4 108 5 947 Others 905 4 267 1 877 Total 232 84 123 075 113 017

The changes and expansion of the aircraft fleet, and the integration of the container vessels operated by CP Ships, which have been successively incorporated within the Hapag-Lloyd AG fleet since 2006 following acquisition, gave rise to a significant increase in energy usage since 2004.

Breaking the link between CO² emis- Long-term objectives for climate protection. It is TUI’s long-term aim to break the sions and transport growth link between CO² emissions and the company’s economic growth, and to endeavour to stabilise absolute greenhouse gas emissions at today’s level. This assumes that specific total energy usage can be continuously reduced to achieve sustainable growth with the same amount of energy input.

The following measures have been implemented, or are planned, with the aim of achieving this objective: Reducing emissions by increasing airline fuel efficiency: – Continuation of the fleet renewal programme – The use of wide-body jets to reduce total emissions Continuing the optimisation of aviation processes and procedures – Participating in the political process aimed at harmonising and simplifying air traffic management – Cooperating with fuel suppliers – New technologies in the aviation sector Reducing emissions by increasing fuel efficiency in the shipping sector – Fleet replacement programme to integrate more energy efficient ships – use of new technologies to reduce the vessels’ drag in the water – Commissioning more energy efficient new ships (container vessels and cruise liners)

56 TUI Sustainability Reporting 2006/2007 Environmental management system

Avoiding emissions by implementing energy-savings measures in tourism segments: – Expanding the use of renewable energy sources in Hotels & Resorts – Using biofuels in the bus fleets run by destination agencies – Using electricity from renewable power sources in offices and administration buildings.

Specific energy usage. The specific energy consumption is the most important environmental performance indicator and will be shown for each division. This indicator describes the ratio between the amount of energy used and the operative performance made available. The specific energy usage will be analysed in the more energy- intensive segments by further developing TUI’s environmental reporting. The following table shows the changes in core sectors in recent years:

Airlines Specific energy usage Hapag-Lloyd Container Shipping 2006 2005 2004 Cruises Airlines – kerosene L/100pkm 3.08 3.02 2.91 Hotels & Resorts Container ships – bunker L/TEU/100nm 5.89 5.44 5.54 106.5 Cruise liners – bunker L/100pnm 0.88 0.98 1.14 103.5 100.0 Hotels & Resorts – total energy MJ/guest/day 112.82 120.46 191.22 105.6 98.3

86.1 The specific energy consumption trend for the airlines reveals an increase in kero- 76.9 sene use. Separation of the energy usage from transport performance in the aviation sector had not been achieved so far because of changes in flight profiles and an 63.0 increase in the number of external factors affecting aviation (e.g. overcrowded air 59.0 space, poor coordination between air traffic management). 2004 2005 2006

Change in specific energy efficiency The specific energy consumption of the container ships rose considerably because of in TUI business segments since 2004 the integration of the CP Ships container ships into the existing Hapag-Lloyd fleet. (= 100 units) It is important to note here that the CP Ships fleet consists of smaller vessels whose higher specific fuel consumption is not comparable to the ships in the Hapag-Lloyd fleet.

Example of increases in energy efficiency.TUI has begun to implement its target of decoupling emissions and growth. Some typical examples:

Optimising seat occupancy at TUIfly Nordic is one of the main factors in increasing the efficiency of passenger transport. Thanks to the particularly efficient seat occupancy on its flights, TUIfly Nordic was able to reduce fuel consumption year-on-year, and is now the most efficient airline in the TUI Group with 2.64 litres kerosene per 100 passenger kilometres.

TUI Sustainability Reporting 2006/2007 57 Environmental management system

Energy efficiency in the Cruises segment.The Cruises segment boasts a significant increase in energy efficiency. The “HANSEATIC“ cruise liner operated by Hapag-Lloyd stands out with its significant cuts in specific consumption per passenger and distance.

Renewable energy in the hotel sector. Many TUI hotels already use renewable energy sources, and around two thirds of the hotels cover up to 40 per cent of their total energy requirements in this way. When installing renewable energy sources, TUI endeavours to minimise the impact of the generating plant on the local environment and countryside. Solutions are always sought which are as simple and as un- complicated as possible to ensure that they can be serviced by the local infrastructure. This also has the positive effect of promoting the local use of these innovative technologies. TUI hotels therefore frequently use solar thermal systems to cover a The Nordotel Tres Vidas in Bahia Feliz large proportion of their warm water needs. In addition to solar thermal systems, installed a photovoltaic plant with a ca- TUI Hotels & Resorts also use energy generated by photovoltaic systems and wind pacity of 5.7 kW. Expansion to 100 kW is turbines to continuously increase the proportion of renewable energies in the over- planned. all mix.

Alternative energy generation concepts are also pursued, for instance, the ROBIN- SON Club Amadé in Kleinarl (Salzburger Land, Austria) uses state-of-the-art con- densation technology to generate energy in a CO²-neutral biomass power plant. It was built in cooperation between the ROBINSON Club investor, farmers in Kleinarl, and two companies, Nahwärme GmbH and AESG. The plant was built in early 2004. The local foresters supply the biomass plant with shredded wood chips from their forests – a renewable resource. The plant was thus able to dispense with the complex construction measures which would have been involved in the installation of ROBINSON Club Amadé is supplied with an oil heating system, and Nahwärme Kleinarl was able to supply heat to the whole energy from a biomass heating station. village centre thanks to the support of this major customer. Up to 100 per cent of the ROBINSON Club’s heat and hot water needs are supplied by this modern plant, which also accounts for annual savings of around 800 000 litres of heating oil, corresponding to CO² savings of 2 000 tons per year. The Iberotel Sarigerme Park has paved the way for over one and a half decades with the implementation of environmental innovations. A parabolic trough solar plant was commissioned at the Iberotel Sarigerme Park in April 2004. The parabolic trough collectors operated by the hotel are optimal for solving the cooling problems in sun- rich countries. The heat collected by the sun collector is used to air-condition the The Iberotel Sarigerme Park uses a para- hotel, generate hot water and raise refrigeration efficiency. bolic trough solar plant since 2004.

58 TUI Sustainability Reporting 2006/2007 Environmental management system

Climate protection and emissions

Burning fossil fuel generates greenhouse gases and other polluting combustion products. TUI manages its emissions balance by improving the fuel efficiency of its aircraft and ships.

Carbon dioxide lies at the heart of the climate debate. This discussion is also of major importance for TUI, and TUI participates actively in shaping policy to integrate aviation in the European Emissions Trading System (EU-ETS).

Direct CO² emissions (t) Carbon dioxide (CO²) 2006 2005 2004 TUI airlines 5 092 183 4 926 327 4 310 339 Hapag-Lloyd container ships 10 525 320 2 716 093 2 607 041 Cruise liners 260 970 255 000 191 555 TUI Hotels & Resorts 80 214 90 619 252 987* Others 22 115 39 226 32 664 Total 15 980 801 8 027 265 7 394 587 * Data quality is critical because of the unusually high heating oil consumption Direct emissions have risen considerably in the last year because of the incorporation of the ships operated by CP Ships in TUI’s emissions balance. The enlargement of the container shipping fleet by the 83 ships run by CP Ships caused a major increase in Shipping segment emissions. Absolute CO² emissions by the airlines rose by 3.4 per cent because of the larger number of aircraft and the growth in transport capacity. Changes in the hotel segment and more precise reporting led to a reduction in absolute emissions year-on-year in 2006. Although the cruise liners report a rise in emissions, there is actually a considerable reduction in emissions per passenger and sea mile. This is attributable to optimised routing and high levels of occupancy in the cruise liners.

TUI Hotels & Resorts 0.5 % Others 0.1 % Cruise liners 1.6 %

TUI airlines 31.9 % CO² emissions (total)

15.98 million t CO² Hapag-Lloyd container ships 65.9 %

TUI Sustainability Reporting 2006/2007 59 Environmental management system

Whilst there has been a considerable decline in the specific CO² emissions of the cruise liners, it has not been possible to separate emissions from the transport capacity of the airlines. The figures for Container Shipping in the 2006 financial year cannot be compared with the previous year’s figures because of the integration of CP Ships.

Direct CO² emissions (specific) 2006 2005 2004 TUI airlines kg/100pkm 7.95 7.79 7.53 Hapag-Lloyd container ships g/TEU/sm 174.20 160.80 163.50 Cruise liners kg/100pnm 2.73 3.06 3.55 TUI Hotels & Resorts kg/guest/day 2.22 2.66 –

A reduction in CO² emissions per guest and overnight stay was observed with respect to the use of fossil fuels by TUI Hotels & Resorts.

Examples of implemented CO² reduction measures (2004 – 2006) annual CO Division Measure ² savings (t) Fleet renewal and replacement 16 000 t of existing A310 fleet by modern per aircraft 1 B737-800s Replacing old A747-200s with TUI airlines 70 000 t B747-400s with more fuel-efficient per aircraft 2 engines 1 Comparative figure is the difference assuming the same capacity utilisation and route. Upgrading B737-800 fleet with win- 41 000 t 3 2 Calculated as the difference of the expected emissions glets to improve aircraft aerodynamics of both aircraft types for the transport capacities of the B747 fleet in the last two years. Introducing new ships with modern, 9 000 t 4 3 Increasing energy efficiency of 3 per cent assumed by more energy-efficient propulsion per ship upgrading aircraft with winglets. This figure is derived from a nominal block period per year and the actual Container Shipping Improving underwater coatings by 3 800 t hourly consumption of the aircraft type operated by TUI using silicon to reduce ship resist- airlines. per ship ance 4 Comparison between ships built in 2005 with a capacity of 8 750 TEU, and ships built in 1997 with a capacity of Increasing fuel efficiency across the 4 612 TEU. The figure is derived from the consumption Cruises 10 000 t difference assuming the same nominal transport capacity. whole cruise liner fleet by 10 %

60 TUI Sustainability Reporting 2006/2007 Environmental management system

Other emissions (NOx, SOx, etc.). Other emissions released by the use of fossil fuels also require environmental indices, particularly for nitrogen oxides, sulphur oxides, carbon monoxide and hydrocarbons. Other greenhouse gases are only emitted in insignificant quantities. In addition to carbon dioxide, the Kyoto Protocol also takes into consideration the following greenhouse gases: methane (CH4), nitrous oxide (laughing gas, N2O), hydrofluorocarbons and perfluorocarbons (HFCs/PFCs) and sulphur hexafluoride (SF6).

Other emissions 2006 2005 2004

Nitrogen oxides (NOx) TUI airlines t 35 178 33 747 30 442 TUI airlines (specific) g/100pkm 54.91 53.39 53.19

Hapag-Lloyd container ships t 294 060 75 883 72 836

Hapag-Lloyd container ships (specific) g/TEU/sm 4.87 4.50 4.58 Cruise liners t 5 028 4 913 3 691 Cruise liners (specific) g/100 pnm 50.00 56.01 65.02 Sulphur oxides (SOx)

Hapag-Lloyd container ships t 198 000 51 385 49 380

Hapag-Lloyd container ships g/TEU/sm 3.36 3.10 3.20 (specific) Cruise liners t 3 106 3 067 2 267 Cruise liners (specific) g/100 pnm 30.89 34.96 39.94 Carbon monoxide (CO) TUI airlines t 1 990 2 005 1 866 TUI airlines (specific) g/100pkm 3.11 3.17 3.26 Hydrocarbons (HC) TUI airlines t 319 290 294 TUI airlines (specific) g/100pkm 0.50 0.46 0.51

TUI Sustainability Reporting 2006/2007 61 Environmental management system

The absolute emissions have risen with the exception of carbon monoxide (CO) as a result of the enlargement and changes in the fleet of aircraft and ships. The NOx emissions in the specific emissions for airlines rose because of changes in flight profiles. The renewed increase in hydrocarbons caused by incomplete fuel combustion during aircraft movements on airport taxiways is attributable to longer waiting periods prior to take-off and after landing.

NOx (g/100pkm) CO (g/100pkm) HC (g/100pkm)

2006 54.91 3.26 0.51 Other emissions (NOx, SOx, etc.) for TUI airlines 2005 53.39 3.17 0.46

2004 53.19 3.11 0.50

Success was achieved in separating other emissions in the Shipping segment from growth, until the integration of CP Ships. The current figures show that the integration of smaller ships gives rise to higher emissions per transport unit.

NOx (g/TEU/nm) SOx (g/TEU/nm) 2006 4.87 3.36 Other emissions (NOx, SOx, etc.) for Container Shipping 2005 4.50 3.10

2004 4.58 3.20

NOx (g/100 pnm) SOx (g/100 pnm) 2006 5.77 3.58 Other emissions (NOx, SOx, etc.) for Cruises 2005 6.19 3.86

2004 9.50 5.84

The Cruises segment clearly shows the improvement in specific nitrogen and sulphur oxide emissions. Separating emissions from transport capacity is an example of TUI’s sustainable environmental management, particularly well demonstrated by Hapag- Lloyd Cruises and Thomson Cruises.

62 TUI Sustainability Reporting 2006/2007 Environmental management system

Climate impact of international container transport

Container ships are the means of transporting goods with the least impact on the climate. The global transport of goods relies on container shipping and therefore on a means of transport which serves globalisation and also causes the least emissions per transport unit.

Global trade is built on container transport. Oceans and continents often separate manufacturers from consumers. Hapag-Lloyd’s container ships are the longest connecting link in the door-to-door logistics chain. And compared to other means of transport in the distribution chain, container ships have the least impact on the climate.

If we look at the transport of a container from Munich to Calvert City in Kentucky/ USA for instance, we see that the Hapag-Lloyd container ship covers 72 per cent of the total journey of almost 9 000 kilometres and only emits about 20 per cent of the transport-related greenhouse gas carbon dioxide (CO²) per container.

Truck Railway Container ship Truck 30 km 803 km 6 458 km 1 680 km

Distance 9% 72% 19% (km) Comparison between distance travelled and the associated CO² emissions per standard container (TEU)

CO² 7% 20% 72% (kg)

40 kg 218 kg 608 kg 2 258 kg

Railway Ship Truck

CO² savings by investing in ships with better energy efficiency.The TUI subsidiary Hapag-Lloyd constantly strives to reduce its environmental impact. Its order for another eight container ships from Hyundai Heavy Industries in Korea will cut emissions in service by 71 400 tons per year of the greenhouse gas carbon dioxide for the same transport capacity compared to older ships with smaller container capacities. Each of the 8 ships is 335 metres long, 43 metres wide, and can accommodate 8 750 standard 20-foot containers. This shows that size in container shipping is important because it reduces environmental impact, and particularly the emission of greenhouse gases.

TUI Sustainability Reporting 2006/2007 63 Environmental management system

Natural resources, waste generation and land use

In addition to climate impact, another priority for TUI’s environmental management is the efficient usage of natural resources, and in particular drinking water – which is one of the most important natural commodities.

Drinking water consumption and recycling The availability of clean drinking water is indispensable for TUI at its destinations.

TUI’s water consumption primarily involves the fresh water used in TUI Hotels & Fresh water consumption Resorts. To keep the use of water to a minimum, TUI Hotels & Resorts has its own wells to irrigate its facilities. Fresh water consumption across the whole segment in 2006 was 17.26 million cubic metres, up around 6.3 per cent year-on-year. The water consumption in the hotel segment in 2006 was thus 426.2 litres per guest and overnight stay, up around 8.8 per cent compared to the previous year.

Water consumption (litres per day) 2006 2005 2004 Water consumption per overnight stay 426.2 391.8 552.3

There are many causes for this increase in consumption which are difficult to determine in detail. Since the implementation of the environmental management systems, most TUI Hotels & Resorts have incorporated environmentally-friendly resource management schemes in their hotel management practises.

Waste management Systematic waste management saves valuable resources, avoids unnecessary environmental impact, and makes a significant contribution to cutting hotel running costs. The management of TUI Hotels & Resorts therefore places a high priority, as part of their environmental management systems, on preventative measures for waste avoidance, separating recoverables for recycling, and the proper disposal of the remaining unavoidable residual waste.

1.6 kilograms of waste per overnight stay was generated by TUI Hotels & Resorts in 2006. This waste was separated where possible to recover recyclables. The data quality in the previous year makes it difficult to compare the latest figure with the 1.43 kilograms per overnight stay reported for 2005.

64 TUI Sustainability Reporting 2006/2007 Environmental management system

Purchasing is one of the areas which can implement the most effective measures for waste avoidance: for instance by buying locally produced food, buying in bulk, increasing the use of returnable containers, and avoiding the single portion packaging and disposable containers so typical of hotel catering processes, e.g. tins, plastic bottles and plastic bags.

Some examples of specific measures for waste avoidance and reduction: Waste separation – mostly to separate out paper, glass, plastic, metal and hazardous waste such as batteries and waste oil, has now become standard practise in many hotels, e.g. ROBINSON, Grecotel, Iberotel, Dorfhotel, Grupotel, Riu. Alone by avoiding the use of disposable packaging for jam, honey, butter, etc., Riu reduced the amount of plastic waste it generated in 2002 by over 30 tons. Organic garden and kitchen waste is also increasingly used for composting and reuse on the hotel grounds, e.g. in all Grecotels and Dorfhotels, and some ROBIN- SON and Iberotel resorts. It has also become standard practise in many TUI hotels to save resources by using chlorine-free bleached, and where possible, recycled paper in offices and for sanitation. Carbonating appliances are used in ROBINSON clubs to prepare table water, and thus reduce waste in the form of disposable and plastic bottles.

Use of land and protected zones Unspoilt countryside and intact nature is indispensable for every positive holiday experience. TUI Hotels & Resorts therefore endeavour to realise their new hotel construction projects as environmentally-compatibly as possible. Changes in its hotel portfolio have reduced the amount of land it uses to approximately 14.38 million square metres. The use of protected or vegetated areas has shrunk by 8.2 per cent and 9.9 per cent respectively

Protected areas 8 %

Vegetation loss 9 %

Land use divided up into different types of use (approximate) for TUI Hotels & Resorts

Other areas 83 %

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Certification according to international environmental standards

Continuous improvement by undergoing certification The environmental management systems (EMS) of each Group company are being successively adjusted to comply with international environmental standards, and thus to push the continuous improvement of our environmental performance. Around 33 per cent of the Group’s total turnover was generated in the 2005 financial year by DIN EN ISO 14001 certified companies. This figure cannot be generated for the 2006 financial year because, due to the integration of CP Ships within Hapag- Lloyd AG, a full one-year EMS management cycle has to pass to satisfy the total turnover of an integrated company pursuant to DIN EN ISO 14001. It is expected that the one-third threshold for certified consolidated turnover will be clearly exceeded.

Environmental management systems are voluntary instruments for preventative Magic Life certificate environmental protection and the systematic identification and reduction of environmental impact. The standards generally applied in Europe involve the globally valid DIN EN ISO 14001 environmental standard of the International Standardisation Or- ganisation, or the EMAS directive* of the European Union (Eco Audit). Independent experts carry out regular audits to check compliance with all of the stipulations, the implementation of the environmental manual, and the environmental programme. Companies only gain certification if they fulfil all of the specifications.

By implementing these internationally recognised environmental standards, we are able to quantitatively demonstrate our environmental activities. The associated reporting also improves the level of transparency for the benefit of our financial partners. TUI can also credibly document its environmental commitment in dialogue with other stakeholders such as nature conservationists, politicians and the media. TUI AG certificate Numerous Group companies have implemented environmental management systems complying with internationally recognised environmental standards, making a significant contribution in this way to systematic environmental protection, resource saving, and reducing environmental pollution.

Hapag-Lloyd certificate

* EMAS: The ROBINSON Club Cala Serena, Majorca, gained EMAS certification in summer 2007 (in addition to its existing ISO 14001 certification)

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Certified environmental and quality management systems in the TUI Group (as at 03/2007): Company Location ISO 14001 ISO 9001 Holding TUI AG headquarters Germany x Tour operators TUI Deutschland Germany x Hotel companies/TUI Hotels & Resorts Dorfhotel Fleesensee Germany x x Grupotel Aguait Majorca, Spain New in 2006 Grupotel Amapola Majorca, Spain New in 2006 Grupotel Cala San Vicente Majorca, Spain x Grupotel Club Turquesa Mar Majorca, Spain New in 2006 Grupotel Gran Vista Majorca, Spain New in 2006 Grupotel Los Principes Majorca, Spain New in 2006 Grupotel Macarella Majorca, Spain New in 2006 Grupotel Parc Natural Majorca, Spain New in 2006 x Grupotel Picafort Beach Majorca, Spain New in 2006 Grupotel Valparaiso Palace Majorca, Spain New in 2006 Iberotel MS Crown Emperor Egypt x Iberotel Grand Sharm Egypt New in 2006 Iberotel Palace Egypt New in 2006 Iberotel Lamaya Egypt New in 2006 Iberotel Makadi Beach Egypt New in 2006 Iberotel Makadi Oasis Egypt New in 2006 Iberotel Makadi Saraya Egypt New in 2006 Iberotel Sarigerme Park Turkey x Magic Life Club Sharm El Sheikh Imperial Egypt x Magic Life Club Africana Imperial Tunisia New in 2006 Magic Life Club Water World Imperial Egypt New in 2006 Nordotel Cinco Plazas Lanzarote, Spain New in 2006 Nordotel Jardin del Sol Gran Canaria, Spain New in 2006 Nordotel Orquidea Gran Canaria, Spain New in 2006 Nordotel Révoli Gran Canaria, Spain New in 2006

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Company Location ISO 14001 ISO 9001 Hotel companies/TUI Hotels & Resorts ROBINSON Club Fleesensee Germany x x ROBINSON Club Cala Serena Majorca, Spain x x ROBINSON Club Esquinzo Playa Fuerteventura, Spain x x ROBINSON Club Jandia Playa Fuerteventura, Spain x x ROBINSON Club Kyllini Beach Greece x x ROBINSON Club Lyttos Beach Greece x x ROBINSON Club Daidalos Greece x x ROBINSON Club Çamyuva Turkey x x ROBINSON Club Maris Turkey x x ROBINSON Club Nobilis Turkey x x ROBINSON Club Pamfylia Turkey x x Sol Y Mar Belvedere Egypt New in 2006 Sol Y Mar Makadi Sun Egypt New in 2006 Sol Y Mar Makadi Star & Spa Egypt New in 2006 Sol Y Mar Solaya Egypt New in 2006 Destination agency Aeolos Travel (Transport department) Cyprus x x Shipping Hapag-Lloyd Container Shipping All locations worldwide x x

Systematic environmental improvements are a permanent priority in the hotel segment. The hotel management systems of eleven ROBINSON clubs, two Magic Life clubs, seven Iberotels, four Nordotels, nine Grupotels, one Dorfhotel and four hotels belonging to the Sol y Mar group were ISO 14001 certified by the end of 2006.

A continuously updated list of certified Group companies is posted on the TUI environmental website www.tui-environment.com

Iberotel Sarigerme Park certification

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Certified environmental management at TUI Deutschland TUI Deutschland has been certified according to the international environmental standard DIN EN ISO 14001 since June 2003. New environmental targets are set every year as part of systematic environmental monitoring, and their implementation is checked internally and externally. Its pursuit of certification began in 2000 by joining the “Local Agenda 21“ ÖKOPROFIT project run by the metropolitan authority in Hanover. The aim of this project is to incorporate the principles of sustainability in the daily business practices of interested companies. TUI Deutschland was certified as an “ÖKOPROFIT Hannover business 2001“ in March 2002. Its efforts in this direction resulted in the first time publication of its internal environmental status report on the website of TUI Deutschland. Establishing the environmental management system (EMS) resulted in a continuous improvement of the environmental balance at every step along the tourism value chain. This involves special inspection of hotels looking at environmental aspects, the in-house definition of cooperation between different departments, and cooperation with nature conservation organisations. Waste separation, water and energy consumption are also permanent parts of the agenda pursued by environmental management at TUI Deutschland headquarters in Hanover. One example: this has saved over Euro 40 000 since 2001 through more efficient water and waste management. Environmental protection is therefore a real cost factor.

TUI Hotels & Resorts with regional/national environmental labels or certificates (as at 03/2007) Company Location Environmental label/certificate Hotel companies /TUI Hotels & Resorts Austrian environment label issued by Dorfhotel Schönleitn Austria the Ministry for Economics and the Environment Austrian environment label issued by ROBINSON Club Ampflwang Austria the Ministry for Economics and the Environment Austrian environment label issued by ROBINSON Club Landskron Austria the Ministry for Economics and the Environment Austrian environment label issued by ROBINSON Club Schlanitzenalm Austria the Ministry for Economics and the Environment

Iberotel Coraya Beach Resort Egypt Green Globe 21

TUI AG hotel companies involved in ongoing certification processes: Grecotel, Greece: systematic implementation of environmental management systems pursuant to ISO 14001 in all hotels, successful pre-audit in Grecotel Pella Beach, certification planned. Grupotel Orient, Majorca, Spain: environmental management system implemented pursuant to ISO 14001, certification planned. Grupotel, Balearic Islands, Spain: cooperation with Balearic government on integration of environmental quality, hygiene and health standards as well as occupational safety, certification planned. Iberotels Lido, Dahabeya, Iberotel Club Fanara, Egypt: environmental management systems implemented according to ISO 14001, certification planned. Nordotel, Gran Canaria, Spain: the whole hotel chain is implementing ISO 14001 environmental management systems, certification planned. Riu, Balearic Islands, Spain: cooperation with Balearic government on integration of environmental quality, hygiene and health standards as well as occupational safety, certification planned. Sol Y Mar Paradise, Sharming Inn, Egypt: environmental management system implemented in accordance with ISO 14001, certification planned.

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Biodiversity strategy and projects

On the Move 2010/Countdown 2010 Because average biodiversity has declined seriously by 40 per cent in the last 30 years, heads of government at the Sustainable Development Summit in 2002 pledged to achieve a significant reverse in the current loss of biodiversity by 2010. “On the Move 2010“ was the challenge they set, not only for national and local government, but also for non-governmental organisations and companies, to jointly tackle the causes of biodiversity loss. TUI has been actively involved for many years in conserving biodiversity, not least because of the major economic importance of biodiversity when seen as the natural capital of holiday destinations. Back in 1997, TUI contributed to the content of the “Berlin Declaration“ on biodiversity and sustainable tourism. TUI has participated in numerous activities involved in ascertain- ing the implications for tourism development of the major international treaties and conventions for the protection of biodiversity (FFH, CITES, CBD). These activities include the expert round organised together with the German Environment Ministry during the COP4 CBD summit in Bratislava in 1998; and involvement in 2001 in the adoption of a CBD biodiversity directive as part of a CBD expert panel in the run-up Contribution by TUI – together with to the CBD COP6 Summit in the Dominican Republic. UNEP/CMS on the subject of business and biodiversity in the newsletter of Together with other representatives from business, politics, science and the media, the Convention on Biological Diversity TUI founded the “Friends of CMS“ in 2005 – a unique initiative with the United Na- (CBD), Industry Focus: Travel & Tourism tions in Germany. This circle of supporters has come together to provide committed support and partnership for CMS initiatives (Convention on the Conservation Friends of CMS of Migratory Species of Wild Animals), as well as to establish an effective interface between policy makers and business. This “Bonn Convention“ is monitored by the United Nations Environment Programme (UNEP) and obliges signatory countries to implement measures for the global protection and conservation of migratory species of wild animals, and protect their habitats.

TUI and UNEP/CMS presented its first joint project at the COP8 Summit in March 2006 in Curitiba, Brazil: a study “Wildlife Watching and Tourism“ which analyses the risks and opportunities for the conservation of biodiversity of the increasingly popular wildlife watching tours promoted by tourism companies. TUI has also pledged to assist the CMS/UNEP “Year of …“ campaigns. In addition to these important environmental-policy partnership agreements with the United Nations, TUI AG is also actively involved in other strategic cooperationprogrammes and projects, and is involved in intense dialogue with policy makers, business, science and nature protection organisations. Supporting and promoting the sustainable development of “MoU” partnership treaty holiday destinations, and successful cooperation with stakeholders, is continuously signed between TUI expanded and intensified. A vital success factor is also the education and motivation and UNEP/CMS of all TUI staff and guests at the destinations themselves. The aim of this biodiversity strategy is the long term, sustainable invalorisation of biological diversity – to protect the natural foundations on which tourism is built.

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TUI biodiversity strategy Observe international treaties and conventions on nature and species protection, in particular – Convention on Biological Diversity (CBD) including the CBD guidelines on biodi - versity and tourism development – Convention on the Conservation of Migratory Species of Wild Animals (CMS, Bonn Convention) – ACCOBAMS (Agreement on the Conservation of Cetaceans of the Black Sea, Mediterranean Sea and Contiguous Atlantic Area) – ASCOBANS (Agreement on the Conservation of Small Cetaceans of the Baltic and North Seas) – Washington Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) – Ramsar Convention on the protection of wetlands – FFH guidelines/Natura 2000 EU directives (Flora-Fauna-Habitat directive)

Supporting a phased protected area policy in holiday regions to firmly define protection and use regulations to protect biodiversity via – Active membership in the evaluation committee of the European Charter for Sustainable Tourism and Nature in Protected Areas (run by the EUROPARC Fed- eration)

Implementing species protection campaigns in holiday regions to educate holidaymakers and “local communities“ in cooperation with CMS – “Year of the Turtle 2006“ and “Year of the Dolphin 2007“

Cooperation projects with scientists and researchers, e.g. – “Wildlife Watching and Tourism“ (publication of an in-depth and up-to-date case study) – Aldabra Marine Programme, Coastal Research Unit of Cambridge University (coral reef monitoring)

Cooperation with governmental organisations, pro-active environmental-policy consultations with decision making bodies, and participation in expert panels, e.g. – Participation in elaborating the content of the “Berlin Declaration“ 1997 on TUI presented the “Wildlife Watching biological diversity and sustainable tourism in cooperation with BMU and Tourism“ study at the Conference of – “Keynote paper on the protection of biological diversity“ 2001, jointly with CBD the Parties (COP8) of the Convention on – Education material on the illegal trade in protected species included in holiday Biological Diversity (March 2006) documentation together with the Federal Institute for Nature Conservation – UNESCO (United Nations Educational, Scientific and Cultural Organisation) world heritage sites – Active membership of the Tour Operators’ Initiative for Sustainable Tourism Development (TOI)

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Cooperation with non-governmental organisations to promote species protection projects, e.g. – Archelon, Tortugas, Whale and Dolphin Conservation Society (WDCS), Loro Parque Fundacion

Consumer information for the responsible care of flora and fauna at holiday destinations, e.g. – “Species conservation and holiday souvenirs“ (Extracts from the Washington Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) in all TUI catalogues) – “Holidays and environmental compatibility“ (customer information in all German-speaking TUI catalogues) – “The Whales and Dolphins of the Canaries“ (guidelines for responsible whale watching) – “The environment also needs a holiday“ (guest information in all TUI hotels) – Presentation of all biodiversity projects on the internet

Raising staff awareness by – Publishing up-to-date environmental information on the intranet/internet – Annual Coordinators’ Conference for Environment and Sustainable Development (CoCoS) – Presentation of an environmental management paper covering current environmental issues at the annual Service Convention of Destination Managers TUI flyer raises the awareness of guests – Environmental module in training courses and management further training for responsible interaction with marine seminars mammals – Training tourism managers (environment as part of Permanent Employee Training, PET) – Environmental information in the TUItimes staff newspaper

Customer information in the Thomson (TUI UK) magazine “Real Holidays”

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Intact nature and unspoilt countryside are the capital of tourism. This is why TUI has issued a voluntary pledge to promote sustainable development in tourism within the framework of the Tours Operators’ Initiative for Sustainable Tourism Development (TOI). A commitment which expressly includes specific targets for the protection of biological diversity.

Tourism sectors TUI works together with UNEP/CMS to develop numerous measures promoting the “Year of the Dolphin 2007”. The aim of this project sponsored by the United Nations, business and international organisations, is the conservation and protection of marine mammals. Prince Albert II of Monaco is the patron of this project.

Together with various cooperation partners, TUI has put together a comprehen-

Foto: Delphis MDC sive brochure in eight languages. The “Dolphin Manual“ contains information on the UNEP/CMS – Year of the Dolphin 2007 habitat and hazards affecting dolphins, and includes ideas on concrete protection initiatives. The brochure was distributed to local schools by TUI staff in its worldwide destinations.

The “Year of the Dolphin 2007“ is brought alive by TUI Hotels & Resorts through numerous activities organised for the whole family. At “Dolphin Days“ in TUI Baadingoo kids clubs, TUI Family clubs and ROBINSON Roby clubs, young and old guests learn in a playful and entertaining way all about dolphins, their habitats, and the increasing risks that threaten their survival. Successful participation in the playful learning process is rewarded with a “Dolphin Diploma”. These family hotels will also be selling The Dolphin Manual: Contribution to the a wide range of merchandise featuring dolphins. Part of the profit is donated directly UNESCO world decade “Education for sus- to dolphin protection projects. tainable development”; TUI distributed the manual to more than 1000 schools Buses in the destinations and selected catalogues are marked with the “Year of the Dolphin 2007“ logo to publicise the initiative worldwide. The “Year of the Dolphin 2007“ was kicked off early at a seminar in November 2006 in Kenya organised by TUI and Pollman’s Tours & Safaris. The seminar was aimed at boat captains and Kenya Wildlife Service rangers to teach them codes of conduct to protect marine mammals.

TUI AG participated with numerous activities in TUI destinations in the “Year of the Turtle 2006“ initiated by the United Nations.

TUI’s involvement here included an educational campaign on the “Bonn Convention“ (Convention on the Conservation of Migratory Species of Wild Animals, CMS) and the United Nations Environment Programme (UNEP), targeted at holiday destinations in the Indian Ocean and Southeast Asia – home to six different sea turtle spe- UNEP/CMS – Year of the Turtle 2006 cies. “Year of the Turtle“ posters were hung up in hotels, diving schools and water sports shops with the support of World of TUI holiday reps. The posters raised awareness of the hazards these animals face, and sought to motivate activities to help their protection.

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Further development of criteria for responsible whale and dolphin watching.

To mark the “Year of the Dolphin 2007”, TUI and the Whale and Dolphin Conserva- tion Society reworded the guidelines for responsible whale and dolphin watching as elaborated in 2002, to bring them up to date with the latest findings. The more stringent rules are intended to improve the protection of marine mammals during whale watching trips. Following a feasibility evaluation and coordination with TUI España, these revised guidelines are now being observed by whale watching trips in the waters around the Canary Islands.

This was used as a basis for TUI Neder- land to develop its “TUI Guidelines for responsible whale and dolphin watching“ for the better regulation of whale watching trips. The further development of the guidelines was conducted in cooperation with EUCC (The Coastal Union), the Inter- national Fund of Animal Welfare (IFAW), WWF Nederland, the Ministry for Agri- culture, and Nova Atlantis (a Dutch whale research centre on the Azores). A review is currently under way to determine whether these more stringent regulations can be adopted Group-wide at all destinations.

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At the same time, the “TUI code of behaviour for the protection of sea turtles“ were sent to all coastal destinations known to be frequented by turtles. The code was included in the TUI hotel customer information files to raise their awareness for the responsible treatment of sea turtles.

In addition, TUI AG financed projects and campaigns for the protection of sea turtles from a specially established fund. Money has therefore gone to the cooperation project run by Mombasa Serena Beach hotels and World of TUI holiday reps in Kenya since 1993, which involves watching out for clutches of eggs laid on un- safe hatching beaches: the eggs are collected in these cases and buried on the safe beaches near the hotels. Educational campaigns focused on the local inhabitants and hotel customers were also implemented.

Other “Year of the Turtle 2006“ activities Opening the 26th Symposium on the Biology and Conservation of Sea Turtles organised by the “International Sea Turtle Society“ on Crete in April 2006 with a speech by a TUI representative Supporting the voluntary work of the Swiss nature conservation organisation TORTUGAS focused on protecting the sea turtle Lepidochelis olivacea Cooperation by TUI AG, TUI UK, TUI Nordic, TUI Hellas and TUI hotel company Grecotel with the Greek nature conservation organisation Archelon (formerly Sea Turtle Protection Society of Greece, S.T.P.S.) to protect the breeding grounds of the Caretta caretta sea turtle in various places around Greece (Crete, Zakynthos).

Project with Reef Check e.V. Reef Check was established in 1997 to scientifically analyse the effect of human action on the condition of reefs around the world. It also works to raise public awareness of the value of coral reefs, as well as the various threats to their existence. Reef Check developed a research method which can be rapidly learned and applied even by “amateurs“ after receiving expert instruction from a marine scientist.

Enthusiastic scuba divers and snorkellers in over 80 countries have participated in this important research work since 1997. The research involves counting easily rec- ognisable organisms as indicators for the health of the reef. The teams can carry out onsite evaluations of the results together with the scientists. All of the collected data is then sent to the main Reef Check office in Los Angeles where it is analysed and compiled in reports on the worldwide status of coral reefs.

Every hobby diver with a bit of experience can take part: Reef Check Europe in col- laboration with TUI Deutschland and ROBINSON Club Soma Bay have arranged dates when customers can help carry out reef research. Training takes place in a few days at ROBINSON Club Soma Bay guided by the expert marine scientists from Reef Check Europe.

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Protecting sharks In addition to protecting “cuddly“ dolphins, TUI also works to protect sharks. This highly endangered species makes an indispensable contribution to maintaining marine ecological balance but is still hunted for dubious motives. Educating people about these fascinating animals and their role in marine ecology is an important step in demystifying sharks.

TUI Suisse and ROBINSON support the “Shark project“ and its educational goals. Im- mediately after being informed about the project in October 2005, ROBINSON removed all shark products from its catering programme to make a contribution to the conservation of this endangered marine species, alongside measures to educate its customers about sharks and their value.

On a double page spread in the latest catalogue of its Spinout Sport-Tours programme, TUI Suisse informs its guests of the risks threatening the survival of sharks. The article also contains ideas to help everyone do something for shark conservation. Under the name TUI Sports, this segment will also include offers from May 2007 to visit a Shark School where participants learn about sharks and how to interpret their behaviour in different situations. Improving understanding helps motivate people to protect these otherwise feared animals.

Conserving African biodiversity – Grass roots community projects Pollman’s Tours & Safaris supports various biodiversity projects in Africa. These include surveying the changes in populations of wild dogs and cheetahs in the Tsavo National Cheetahs and wild dogs in Kenya Park. These animals are recorded as endangered species in accordance with CITES, but their precise status in Kenya is currently unknown. In the cooperation project with the Kenya Wildlife Service (KWS) and the East African Wildlife Society (EAWLS), Pollman’s is involved in counting the number and distribution of wild dogs and cheetahs in the Tsavo ecosystem. Whenever they see these animals, the holiday reps and drivers working for Pollman’s send the geographic coordinates to KWS and EAWLS to help them map the cheetah and wild dog populations. Pollman’s is actively involved in the second phase of this project looking at the group dynamism of wild dogs and cheetahs.

Pollman’s Tours & Safaris has also initiated a reforestation project for endemic tree species in the Taita Hills of the Eastern Arc Mountains. This area is well known for its biodiversity. Msorongo village lies at the foot of the Taita Hills and now benefits from Pollman’s development of cultural tourism. Msorongo village, whose crops were previ- Msorongo Village: Reforestation funded ously damaged by elephants, is now involved in forest conservation by planting trees by Pollman’s Tours & Safaris showing and cultivating agricultural products avoided by elephants. This improves co-existence Pollman’s environmental coordinator, and promotes the sustainable development of nature, agriculture and tourism develop- Abdulaziz Abdala, Specialist for Conserva- ment. tion and Communities.

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Shipping and biodiversity protection All of the new container ships commissioned by Hapag-Lloyd since 1997 comply with environmental passport stipulations. This certificate, which has been issued by Ger- manischer Lloyd since 2001 (a private German ship classification company enjoying official recognition), confirms implementation and compliance with all operative and technical measures used to protect the environment on board certified ships.

Container Shipping. Replacing ballast water used to stabilise a ship can contami- nate marine waters with foreign marine organisms endemic in other marine environ- ments. This can have a serious impact on the ecological balance of coastal regions. Hapag-Lloyd ships control their ballast water in compliance with the IMO resolu- tion whose stipulations are a permanent part of Hapag-Lloyd AG’s environmental measures: Hapag-Lloyd ships replace their ballast water where possible in areas 200 nautical miles from coastlines, and in a minimum water depth of 200 metres to prevent foreign organisms from being released in sensitive coastal areas. Other options include ballast water treatment, or disposal in purpose-built installations. All Hapag-Lloyd’s container ships are coated with tributyl-tin (TBT)-free underwater paint. TBT is used in anti-fouling paints to stop organisms fouling ship keels. TBT is toxic and accumulates in sediments and marine organisms, causing serious damage to marine ecology. By changing to a different type of anti-fouling paint, Hapag-Lloyd AG achieved its environmental targets ahead of the 1.01. 2008 deadline banning their use in container shipping.

Cruises. Hapag-Lloyd’s cruising tradition goes back more than 100 years. The Arc- tic and Antarctic are unique and fascinating destinations for cruises. Hapag-Lloyd cruises ensures that these highly sensitive ecosystems remain unspoilt for future generations. Cruise liners operating in the Arctic and Antarctic use diesel oil instead of bunker oil. And a new TBT-free anti-fouling paint is used on the keels to reduce pollution even further.

Passengers only land in the Antarctic in small groups and always under the supervision of experienced expedition leaders and lecturers. They prepare the passengers in advance on board ship by explaining the special features of the area they are visiting and instructing them in the correct code of conduct. As a member of IAATO, Hapag-Lloyd Cruises operates all of its holidays to these destinations in compliance with the agreed codes of conduct. Hapag-Lloyd Cruises also works together with the Alfred-Wegener Institute for Polar and Marine Research. Hapag-Lloyd Cruises is also a founding member of AECO which lays down the same environmental protec- Antarctic expedition under stringent tion regulations for the Arctic as IAATO does for the Antarctic. AECO elaborated the control and comprehensively regulated “Regulations for ecological tourism in the Arctic”.

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Over 90 examples of cooperation enterprises and projects on the conservation of biodiversity involving TUI AG and its Group companies from 2005 to 2007.

Company Partner Project/target Partnership treaty and joint education campaigns (“Year of the Turtle“ 2006, “Year of the Dolphin“ 2007) for the protection of UNEP/CMS migratory species of wild animals, issuing brochures “Wildlife watching and tourism“ and “Dolphin Manual”. Supporting and working in partnership with CMS initiatives, Friends of CMS and expanding the interface between policy makers and business. Evaluation committee of the “European Charter for Controlled use of major national parks in Europe (European Sustainable Tourism in EU- Charter for Sustainable Tourism in Protected Areas) ROPARC Federation Nature TUI AG and National Parks” WDCS Agreement on the Con- servation of Cetaceans of the Black Sea, Mediterranean Sea Protection of common dolphins in the Mediterranean and Contiguous Atlantic Area (ACCOBAMS) Tortugas (Society for the Supporting the voluntary work of the Swiss nature conserva- Active Protection of Sea tion organisation for the protection of the Lepidochelis olivacea Turtles) sea turtles in Mexico Supporting the Loro Parque Foundation to conserve endan- Loro Parque Fundación gered species of parrot Tour operators “La Charte Internationale du plongeur responsable“ code of Longitude 181 Nature conduct for responsible diving published in brochures Deep Sea Bio-Escapes : Dolphin observation diving trips and Red Sea Diving Association elaboration of diving code of conduct Nouvelles Tétraktys (organisation for Eco-tourism products in Senegal, Morocco, Mali and Madagas- Frontières sustainable tourism develop- car ment) Supporting TUI AG’s “Year of the Dolphin“ campaigns by refer- UNEP/CMS ences in brochures, on its website, in Nouvelle Frontières’ travel documents Federal Agency for Nature Information in travel documentation on the illegal trade in pro- Conservation (Bundesamt für tected flora and fauna (CITES) Naturschutz) TUI Deutschland Code of conduct when snorkelling and diving, waste avoidance Protect the Maldives e.V. and reduction in energy and water consumption on the Mal- dives – brochures

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Company Partner Project/target Supporting the “Year of the Dolphin“ campaign: organising Dolphin Days, customer education in brochures and informa- TUI Deutschland UNEP/CMS tion material. Distribution of dolphin brochures in schools at the destinations. TUI Deutschland/ Monitoring coral reefs with the help of hotel guests supervised Robinson Club Reef Check Europe by marine scientists Soma Bay Code of conduct against the illegal trade in protected flora and WWF Netherlands fauna (CITES) Curaçao Dive Operator Compliance with the environmentally-compatible diving codes Association (CDOA) of conduct elaborated in cooperation with CDOA TUI Nederland Malta Heritage & Financial support (set amount donated per excursion partici- Environment Fund pant) Rainforest Alliance Sustainable tourism project in Costa Rica IFAW (International Fund of Elaborating a brochure for responsible whale watching Animal Welfare) Archelon (Sea Turtle Protec- Joint project to protect endangered Caretta caretta sea turtles tion Society of Greece) in Greece WAR (Wild Animal Rescue TUI Nordic Support for the gibbon recovery station, Phuket Foundation of Thailand) Foresta Island Reforestation Supporting a reforestation project on Gran Canaria Foundation Archelon (Sea Turtle Protec- Protecting the breeding grounds of the threatened sea turtle tion Society of Greece) Caretta caretta on Zakynthos, Greece Conservation International Compliance with the jointly elaborated guidelines for the pro- Coral Reef Alliance tection of marine flora and fauna during boat trips TUI UK Financial support for the foundation to protect endemic flora Malta Heritage and fauna as well as cultural heritage (donation of a set amount & Environment Fund per excursion participant) Supporting TUI AG’s “Year of the Dolphin“ campaigns by com- UNEP/CMS munication measures in the KIDS clubs Tourism & Development Information at the new travel website www.fairunterwegs.ch, working group travel documents and TUI Suisse website TUI Suisse Supporting TUI AG’s “Year of the Dolphin“ campaign with in- UNEP/CMS formation brochures, on the website and in TUI Suisse travel documents

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Company Partner Project/target

Tour operators Various government agencies Education on the illegal trade in protected flora and fauna (Federal Agency for Veterinary (CITES) in travel information materials Science) TUI Suisse Tortugas (Society for the Supporting the voluntary work of the Swiss nature conserva- Active Protection of Sea tion organisation for the protection of the Lepidochelis olivacea Turtles) sea turtles in Mexico Oceancare (protection of Shark project – double page spread in brochures to educate TUI Suisse/Spinout marine mammals) customers about endangered sharks Sport Tours Shark school – courses on sharks TUI Hotels & Resorts Müritz National Park Sponsoring member Dorfhotel Fleesensee Nature and Environmental Support in expanding the park and keeping animals in accord- Park Güstrow ance with their natural requirements Supporting TUI AG’s “Year of the Dolphin“ campaign with Dorfhotel Sylt UNEP/CMS events and distributing educational material Archelon (Sea Turtle Protec- Protecting breeding grounds of the threatened sea turtle Caretta tion Society of Greece) caretta on Crete and the West Peloponnes (Kyllini), Greece Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- UNEP/CMS uting educational material in schools at destinations, and handing out material to guests Research Department of the Protecting marine flora and fauna in the eastern Mediterranean Aquarium on Crete Grecotel Scientific study on the chances of survival of Caretta caretta in Bournemouth University tourism centres such as Rthymnon, Crete Natural History Museum Crete University of Crete, Ecology Protecting the bearded vulture on Crete Department Protecting coastal ecosystems and sea grass meadows in par- Hellenic Society for the ticular by providing customers with educational materials in Protection of Nature hotels and resorts in Greece HEPCA (Hurghada Environ- Supporting the protection of threatened coral reefs in the mental Protection and Red Sea, Egypt, as a member of the environmental protection Conservation Association) organisation Iberotel Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- UNEP/CMS uting educational material in schools at the destinations and handing them out to guests.

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Company Partner Project/target

Iberotel Coraya and Abu Salama Association for Supporting the dolphin protection organisation Iberotel Lamaya Dolphin protection Sarced (Sarigerme Environ- Environmental education events for children and young people mental Education Society) Iberotel Sarigerme Surveying the flora and fauna on the hotel grounds and elabo- Park rating a species list Information panels on the beach about protected species Palm planting campaign for regular guests Reforesting 300 000 m2 burned forest with pine seedlings, and Turkish authorities forest maintenance (2007, hand-back to the authorities 2017) Magic Life Waterworld Hacettepe University Protecting egg clutches laid by Caretta caretta sea turtles Imperial Building 150 nest boxes to maintain the bird population in the hotel grounds Magic Life Manar Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- Imperial & Magic Life UNEP/CMS uting educational material in schools at the destinations, and Africana Imperial handing them out to guests Official convention with the Magic Life Manar Actively supporting all campaigns organised by the Tunisian Tunisian Ministry of the Imperial Ministry of the Environment Environment Actively supporting TUI AG’s “Year of the Dolphin“ campaigns through info in catalogues, and distributing educational mate- Paladien Hotels UNEP/CMS rial to schools at the destinations, and handing them out to guests Cooperation between RC Fleesensee and national park author- Müritz National Park ity in environmental protection and educational measures TEMA (Turkish Foundation for Supporting the reforestation measures implemented by RC Nature Conservation) Pamfilya (Turkey) Arkturos (Greek nature pro- Collecting donations in RC Kyllini Beach (Greece) to support the tection organisation) project to reintroduce “dancing bears“ to the wild Robinson Oceancare (protection for ma- Shark project – banning shark products from its catering pro- rine mammals) gramme Supporting the “Year of the Dolphin“ campaign by organising “Dolphin Days“ and distributing information to schools at the UNEP/CMS destinations, and handing them out to guests; also showing a “Year of the Dolphin“ film prior to evening events

TUI Sustainability Reporting 2006/2007 81 Environmental management system

Company Partner Project/target

Destination Services Supporting TUI AG’s “Year of the Dolphin“ campaign by distributing educational material in schools at destinations, and Aeolos Travel UNEP/CMS handing out material to guests; also beach clean-up campaigns with staff and guests Supporting tree planting campaigns around a football pitch for the local community Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- ATC UNEP/CMS uting educational material in schools at the destinations and Grootbos-Lodges handing them out to guests Holiday rep and customer educational campaigns on the subject of “sustainable development” Monitoring and recording biometric data on stranded dolphins, and supporting TUI AG’s “Year of the Dolphin“ campaign by Danubius Travel Mare nostrum distributing educational material in schools at the destinations and handing them out to guests SUNCE Lavosto Workshop 2005 and resulting activities for “Sustain- WWF able development of the Island of Lavosto“ Croatia TOI Gulliver Travel Supporting TUI AG’s “Year of the Dolphin“ campaign by distributing educational material in schools at the destinations UNEP/CMS and handing them out to guests. Arranging customer trips to a dolphin information centre (for the benefit of dolphin protection projects) Mapping the endangered populations of wild dogs and cheetahs in the Tsavo National Park, Kenya, KWS (Kenya Wildlife Service) Seminar for boat captains and KWS Rangers on the responsible treatment of marine mammals; Pollman’s Issuing the “Code of conduct for responsible dolphin watching” Tours & Safaris Protecting and reforesting the species-rich endemic forests in East African Wildlife Society the Taita Hills, Kenya Reforestation in the Tsavo East/Tsavo West National Parks after forest fires and destruction by elephants Friends of Tsavo Charitable Protecting the forest in the Aberdare National Park and in the Pollman’s Trust (F.O.T) Mount-Kenia region Tours & Safaris Cooperation project to rescue endangered egg clutches laid by East African Wildlife Society TUI Service sea turtles, and educational campaigns amongst customers and (E.A.W.S) the local inhabitants

82 TUI Sustainability Reporting 2006/2007 Environmental management system

Company Partner Project/target Pollman’s Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- Mombasa Serena Beach Tours & Safaris uting educational material in schools at the destinations and Hotel, Kenia TUI Service handing them out to guests Tree planting campaign on the Black Sea coast involving 100 TUI Bulgaria employees Protecting endangered parrot species worldwide, and whale Loro Parque Foundation watching trips for Canary Island schoolchildren Information events on the “Year of the Dolphin“ in schools and UNEP/CMS local education centres TUI España Whale Foundation Protecting marine mammals off the Canaries WDCS Protecting marine mammals off the Canaries Close-to-nature trips with tree planting campaigns on Gran FORESTA Canaria TUI Poland Supporting TUI AG’s “Year of the Dolphin“ campaign with cus- UNEP/CMS TUI Austria tomer educational material in brochures and websites Tantur TUI Bulgaria Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- TUI Dominicana UNEP/CMS uting educational material in schools at the destinations and TUI Hellas handing them out to guests TUI Portugal Tunisie Voyages Airlines

Supporting TUI AG’s “Year of the Dolphin“ campaign by selling merchandise during flights (for the benefit of dolphin protec- TUIfly tion projects), also running an in-flight “Year of the Dolphin“ film

Born Free Foundation “Travellers Alert“ campaign

Born Free Foundation Educating customers on species protection violations in desti- Manitoba Conservation nations Thomsonfly Born Free Foundation “Polar Bear Surrogacy Project“ – donation campaign for a UNEP project on the adoption of orphaned polar bear cubs in Canada Born Free Foundation “GRASP – Great Apes Survival Project”: Donation campaign to Mexikanische Authorities protect threatened great apes in Southeast Asia and Africa

TUI Sustainability Reporting 2006/2007 83 Environmental management system

Company Partner Project/target

Airlines “Big Cats in Mexico”: Donation campaign against the exploita- tion of big cats used for the entertainment of holidaymakers Thomsonfly Supporting TUI AG’s “Year of the Dolphin“ campaign through UNEP/CMS communications in Thomsonfly magazines Shipping Replacing ballast water in deep water to avoid polluting coastal areas with foreign species Hapag-Lloyd AG Biocide-free underwater paint in two ship classes

Antarctic Heritage Trust On-board donation collections “Save the Albatros“-Campaign

Supporting TUI AG’s “Year of the Dolphin“ campaign by distrib- UNEP/CMS uting educational material amongst the passengers

Participation in a research workshop “Linking tourism and con- UNEP/GRID-Arendal Hapag-Lloyd Cruises servation – a finance initiative for protected areas” IAATO (International Associa- Distributing a code of conduct for visitors to the Antarctic, and tion of Antarctica Tour Opera- compliance with the regulations tors) AECO (Association of Arctic Distributing the AECO visitors’ code of conduct for the Arctic, Expedition Cruise Operators) and compliance with the regulations UBA (Federal Environment Elaborating an environmental relevance study for the Antarctic Agency)

84 TUI Sustainability Reporting 2006/2007 Environmental management system

Multi-stakeholder dialogue, cooperation and strategic partnerships

Strategic partnerships and cooperation at a Group level TUI companies in European source markets and the tourism destinations are involved in numerous committees on this important issue promoting environmental sustainability, as well as multi-stakeholder dialogue. Promoting environmental protection in the shipping and cruise business is also systematically pursued in international partnerships.

Multi-stakeholder dialogue and coopera- TUI AG continues its proactive involvement in econsense – Forum for Sustainable tion at a Group level Development of German Business. It also continues its work in the Tour Opera- tors‘ Initiative for Sustainable Tourism Development (TOI) implementing sustainable tourism development, and supports the United Nations Environment Programme (UNEP), the United Nations Educational, Scientific and Cultural Organisation (UNESCO), and the World Tourism Organisation (UNWTO).

The active partnership with EUROPARC concentrates in 2006 on the structural and systematic implementation of the newly formulated charter principles. As an active member of the “EUROPARC European Charter Evaluation Committee“, TUI was directly involved in the development measures for cooperative nature conservation. There was a significant increase in Spain in particular in the number of applications for the official registration of European protected areas as “Charter Parks”. TUI therefore primarily supported the specific evaluation and verification of Charter Park applicants by independent experts.

A special focus of TUI’s environmental activities during the 2006 financial year involved the TUI biodiversity strategy. TUI in cooperation with the CMS secretariat - Convention on Migratory Species of Wild Animals (Bonn Convention) – presented an in-depth global case study on “Wildlife Watching and Tourism“ at the 8th “Con- ference of the Parties“ (COP 8) of the Convention on Biological Diversity held in Curitiba, Brazil.

As part of the environmental treaty between TUI and the government of the Balearic Islands, Balearic Environment Minister Jaume Font I Barceló visited TUI accompanied by 20 mayors from Majorca, Minorca and Ibiza. The meeting further intensified the exchange of information and dialogue between tourism experts and politicians, particularly on issues concerning destination development and quality in the local TUI meets the Balearic Islands: Sr. Agenda 21 programme. Jaume Font i Barceló, Balearic Island Minister of the Environment, accompa- Hapag-Lloyd Container Shipping is involved in the Clean Cargo Group – a section nied by 20 mayors, visiting TUI head- of the American Business for Social Responsibility organisation (BSR) – to promote quarters to discuss “Local Agenda 21 more sustainability in international transport. Hapag-Lloyd Cruises works together and tourism development on the Balearic with several international organisations including the WWF Arctic Programme to pro- Islands” tect oceans and seas around the world – and Arctic and Antarctic waters in particular.

TUI Sustainability Reporting 2006/2007 85 Environmental management system

Selected strategic partnerships and cooperation agreements involving TUI AG and its Group companies covering environmental protection, nature protection, animal protection and sustainability.

Company Cooperation partner International Fund for Animal Welfare (IFAW) TUI Airlines Sanctuary for Exotic Animals (AAP) Nederland B. V. GreenSeat Airlines Ecological Project for Integrated Environmental Technology (ÖKOPROFIT), TUIfly Local Agenda 21 project run by the Hanover metropolitan authority Thomsonfly Born Free Foundation East African Wildlife Society (EAWLS) ARP Group Friends of Tsavo Eco Tourism Kenya Aitken Spence The International Ecotourism Society Travels ATC African Travel International Fund for Animal Welfare (IFAW) Concept Danubius Travel Mare Nostrum Agency Association for Nature, Environment and Sustainable Development Destination Services (SUNCE) Association of Croatian Travel Agencies (UHPA) Gulliver Travel “WWF Germany Environmental Foundation – Foundation for the Protection of Biodiversity and the Natural Environment“ (WWF) Friends of Animals – Rethymnon Mex-Atlántica PRONATURA Tours S. A. de C. V. BAT Conservation International TUI España Loro Parque Fundación TUI Hellas Mediterranean SOS Network (MedSOS) TUI Service AG Dodecanese Animal Protection Society (DAPS) Econsense – Forum for Sustainable Development of German Business EUROPARC Federation and “European Charter for Sustainable Tourism Development in Protected Areas” insula ITR Instituto de Turismo Responsable Loro Parque Fundación Holding TUI AG Ökoprofit/Local Agenda 21 of the Hanover metropolitan authority PLAN International Sustainability Leadership Forum with B.A.U.M. and CSM of the University of Lüneburg Tour Operators’ Initiative for Sustainable Tourism Development (TOI) United Nations Convention on Migratory Species (CMS) Whale and Dolphin Conservation Society (WDCS)

86 TUI Sustainability Reporting 2006/2007 Environmental management system

Company Cooperation partner

AG “Environmental Code of Conduct”, Association of Belgian Tour Opera- tors (ABTO) TUI Belgium End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes (ECPAT)

TUI Bulgaria Neofron

End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes (ECPAT) TUI Deutschland Dodecanese Animal Protection Society (DAPS) The Animal Welfare and Protection Association (AWPA) Reef Check

End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes (ECPAT) National French Land Office in La Guadeloupe Nouvelles National Geographic Frontières Megaptera (Mayotte) Tour operators Sea Blue Safaris Tétraktys (Association for the Local Development of Areas of Nature for Tourism)

End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes (ECPAT) “Initiatiefgroep Duurzaam UItgaand Toerisme“ (IDUT, Initiative for Sustain- able Tourism) International Fund for Animal Welfare (IFAW) TUI Nederland Sanctuary for Exotic Animals (AAP) Wetlands International The World Conservation Union (IUCN) World Association of Zoos and Aquariums (WAZA) Whale and Dolphin Conservation Society (WDCS) End Child Prostitution, Child Pornography and Trafficking of Children for TUI Nordic Sexual Purposes (ECPAT)

TUI Reisecenter End Child Prostitution, Child Pornography and Trafficking of Children for Austria Sexual Purposes (ECPAT)

TUI Sustainability Reporting 2006/2007 87 Environmental management system

Company Cooperation partner

“Working Group for Tourism & Development“ (akte) End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes (ECPAT) Tour operators TUI Suisse Greenpeace OceanCare Tortugas Fair Trade in Tourism South Africa (FTTSA) End Child Prostitution, Child Pornography and Trafficking of Children for TUI UK Sexual Purposes (ECPAT) Travel Foundation (formerly: Sustainable Tourism Initiative) Archelon/Sea Turtle Protection Society Greece Hotels & Resorts Grecotel Dodecanese Animal Protection Society (DAPS) Grupotel Red Balear de Hoteles Sostenibles Iberotel Eurosolar Stiftung “Fundación Campaner“ combating Noma infection amongst chil- Riu dren in Niger Turkish Nature Protection Foundation (TEMA) Robinson Shark Project e. V. Agence Nationale de la Protection pour l’Environnement (ANPE) The Ecological Research Association (EKAD) Magic Life “Environmental Foundation WWF Germany – Foundation for the Protection of Biodiversity and the Natural Environment“ (WWF) National Agency for Waste Management (ANGed) Paladien Hotels National French Land Office Clean Cargo Group, Section of the BSR Organisation (Business for Hapag-Lloyd Shipping Social Responsibility) Container Shipping Network for Transport and Environment (NTM) Hapag-Lloyd WWF Artic Programme Cruises International Association of Antarctica Tour Operators Save the Albatross Campaign

88 TUI Sustainability Reporting 2006/2007 Environmental management system

Destination quality and monitoring

Protecting environmental quality/environmental care in destinations To enhance customer satisfaction and therefore the company’s commercial success, TUI works to protect the environmental quality of the destinations and minimise environmental risks. Annual environmental reporting is an important management instru- ment for maintaining environmental quality and promoting environmental protection in destinations. Annual destination monitoring has been carried out since 1990, and the monitoring in 2006 was again successfully conducted in cooperation with TUI Service and the destination agencies. The environmental reports are prepared in ac- TUI destination strategy: cordance with the “TUI Environmental Criteria for Destinations”. Local TUI staff follow “Destinations for generations” the guidelines when making their in situ research and reporting their findings, experience and impressions. The authors of the reports acquire additional environmental information by making inquiries at local authorities, contractual partners (e. g. hoteliers, agencies) and nature protection organisations.

TUI Environmental Criteria 2007 for Destinations are now in their 18th revised edi- tion having been updated to incorporate the latest results of the public debate on tourism development and environmental impact: 1. Climate change, climate protection, transport, air, noise 2. Energy management (energy supply, savings measures, renewable energy sources) 3. Water and sewage management 4. Waste management (avoidance, recycling, disposal) 5. Bathing water and beach quality, coastal protection 6. Countryside, paving over, regional planning, agriculture 7. Nature and species protection, biodiversity, animal protection 8. Environmental and nature tours and information 9. Environmental policy, sustainable development, Agenda 21 10. Environmental risks/opportunities, outlook

In addition to feeding back information into the Group, TUI’s systematic monitoring also raises the awareness of local inhabitants and decision makers in local authorities, admin- “TUI Environmental Criteria 2007 for Des- istrations and governments for environmental and nature protection issues. tinations”: basis for annual environmental monitoring in the destinations The environmental reports were often supplemented by numerous appendices, e.g. reports by public and private sector institutions, local press releases, educational brochures on nature and environmental protection issued in the region, customer information material from TUI hotels, as well as photo and map documentation.

This environmental information from TUI destinations around the world was made available via the intranet to TUI AG corporate centre departments with strategic functions, and the environmental coordinators in TUI AG Group companies. The environmental coordinators can incorporate this information in their own way to match their own priorities: TUI Deutschland, TUI Austria, TUI Suisse and TUI Poland for instance use these environmental reports every year to update their catalogue information on “Nature and Environment“ in the holiday destinations.

TUI Sustainability Reporting 2006/2007 89 Environmental management system

TUI AG Group Corporate Environmental Management uses the information from the continuous global environmental monitoring in the destinations as follows: Analysis of the environmental situation in selected destinations concerning specifi c issues Early identifi cation of environmental risks which could have a negative impact on TUI Group’s business activities Boosting the environmental expertise of tourism providers in TUI destinations, and raising their awareness Infl uencing decision makers in tourism destinations with the aim of reducing environmental impact and simultaneously improving the quality of the tourism infrastructure Making environmental reports available to the environmental coordinators in the Group companies and selected users at TUI AG corporate centre.

E3 Awards. The E3 Award was presented for the fi rst time at the Service Manager Convention in February 2007 to the three best environmental reports in 2006. This prize honours the major importance of destination monitoring for cooperation with the destinations. E3 stands for Excellence and Effi ciency in Environmental reporting. Evaluation criteria in addition to content, form and the commitment of the authors, includes the infl uence of destination reporting in the destination by involving local offi cials and experts.

E3 Award winners: No. 1: Kenya No. 2: La Palma No. 3: Majorca

Other TOP 10 destinations receiving certifi cates: Koh Samui Tobago Crete Bali Dalaman Jamaica Sri Lanka

“Excellence and Effi ciency”. Destination Environmental Reporting Competition to increase data quality. The jury looked at 69 environmental reports from 79 destinations.

90 TUI Sustainability Reporting 2006/2007 Environmental management system

Environmental report evaluation criteria in the “E3“ competition Content Accuracy, level of detail Up-to-dateness/comparison with previous year’s report Use of sources Layout and attractiveness Interpretation of environmental situation with respect to its consequences for tourism Integration of personal impressions and experience The 2006 prize winners of the World of TUI International Environment Award Form Complete observance of TUI criteria Language and style Summary and rating Punctual submission Report in English language References/contact address lists

Effect Impact on the destination by involving local officials and experts Critical assessment as a contribution to environmental quality assurance Consequences: need for action and possible measures Applicability for preparing customer information

Commitment of the author

World of TUI International Environment Award TUI has rewarded internationally exemplary landscape and nature protection activities since 1991 in order to support long-term solutions and new means of promoting sustainable tourism development in the destinations on a local and regional level.

The award is intended to motivate the prize winners further to continue their commitment to sustainable development and to establish and expand close cooperation with the tourism sector. We further honour and support the commitment of our award winners with Euro 10 000 in prize money.

The complete list of all prize winners is available on the internet.

TUI Sustainability Reporting 2006/2007 91 Environmental management system

Environmental quality in TUI holiday hotels

Competition for environmental quality at TUI holiday hotels Sustainable development for TUI means continuously monitoring and harmonising environmental, economic, and social/societal needs. This maintains competitiveness, promotes the potential of its human resources, strengthens co-operation with societal stakeholders, and sustainably improves the efficient use of natural resources in the Group’s locations and holiday destinations.

TUI Hotels & Resorts setting benchmarks. TUI Hotels & Resorts in cooperation The “EcoResort“ environmental quality with TUI AG Group Corporate Environmental Management issued the “EcoResort“ label enhances the competitiveness of TUI sustainability quality label for the Group’s own hotel brands for the first time in Hotels & Resorts the 2006 financial year, following inspections by independent external environmental consultants. In addition to environmental quality assurance, the objective of the quality label is to force the momentum of sustainable development in holiday regions. The criteria on which the label depends include close-to-nature experience, combined with high health and quality standards, commitment to sustainable development, high levels of eco-efficiency, and a certified environmental management system. Twenty four of the Group’s own hotels and resorts qualified in 2006/07, and are now signposted in the catalogues by the “EcoResort“ label.

TUI EcoResorts 2006/07 ROBINSON Club Cala Serena ROBINSON Club Apulia ROBINSON Club Jandia Playa Iberotel Makadi Club Oasis ROBINSON Club Esquinzo Playa Iberotel Makadi Saraya Resort ROBINSON Club Fleesensee Iberotel Sarigerme Park ROBINSON Club Amadé MAGIC LIFE Sharm el Sheikh Imperial ROBINSON Club Schlanitzen Alm Grupotel Aldea Gran Vista ROBINSON Club Ampflwang DORFHOTEL Fleesensee ROBINSON Club Schweizerhof DORFHOTEL Schönleitn ROBINSON Club Soma Bay DORFHOTEL Seeleitn ROBINSON Club Camyuva ROBINSON Club Nobilis ROBINSON Club Pamfilya ROBINSON Club Daidalos ROBINSON Club Kyllini Beach ROBINSON Club Lyttos Beach

A complete list of TUI EcoResorts is on show at www.ecoresort-tui.com.

92 TUI Sustainability Reporting 2006/2007 Environmental management system

Environmental monitoring of the TUI Deutschland holiday hotels. TUI contractual partners have been surveyed since 1992 with the help of the TUI Hotel environmental check list to monitor implementation of environmentally-compatible hotel management. Filling out the annual check list to provide TUI with information on the measures and activities implemented by the hoteliers to protect the environment at the hotels is a contractual obligation. Environmental check lists help control the implementation of sustainable measures by individual hoteliers and hotel chains, as well as the whole hotel sector in holiday regions and countries. Hotels with outstand- Most successful hotel chain 2006: ing environmental measures in the destinations are selected on the basis of the de- Sören Hartmann and Max-Peter Droll, fi ned, annually reviewed and continuously updated and expanded criteria. The hotel managing directors of ROBINSON Club, check lists are supplemented by additional experience and observations reported by receive the TUI Environment Champion the World of TUI tour guides and TUI agencies at the destinations. Award in Gold from Dr Volker Böttcher, executive board chairman TUI Deutsch- TUI Deutschland has encouraged the competition for successful environmental land management at its partner and contracted hotels around the world by awarding the TUI Environment Champion Prize since 1997. The TUI Environment Champion Prize is awarded to hotels with outstanding environmentally-compatible and modern hotel management. Participants must be integrated within the TUI hotel environmental monitoring system and maintain TUI minimum standards for environmental quality. Interested hoteliers can fi nd help in qualifying at the TUI Forum for Environmentally- Compatible Hotel Management at www.tui-ecohotel.de (in 3 languages: German, English, Spanish). The 100 TUI Environment Champions are identifi ed by a certifi ed procedure. An online managed, transparent scoring system is used to evaluate environmental performance. The most successful hotel chain in 2006 was again ROBIN- SON with 20 award-winning clubs. In the individual category for hotels, the Iberotel Sarigerme Park in Turkey carried off the top award for the 10th time in succession.

TUI Environment Champions 2006 – the Top 10 1. Iberotel Sarigerme Park, Sarigerme, Turkey 2. ROBINSON Club Lyttos Beach, Crete, Greece 3. ROBINSON Club Cala Serena, Majorca, Spain 4. ROBINSON Club, Kyllini Beach, West-Peloponnes, Greece 5. Cretan Malia Park, Crete, Greece 6. Jardim Atlantico, Madeira, Portugal 7. Fuerte Conil, Costa de la Luz, Spain 8. Hotel Tigaiga, Tenerife, Spain 9. ROBINSON Club Daidalos, Kos, Greece 10. Jardines De Nivaria Hotel, Tenerife, Spain

A completely up-to-date list of TUI Environment Champions is on show at TUI Deutschland’s website.

TUI Sustainability Reporting 2006/2007 93 Environmental management system

“TUI Hotels & Resorts pioneer and push forward environmental quality and sustainable development. Our commitment: responsibility and performance.” Karl J. Pojer, TUI AG executive board member TUI Hotels & Resorts

Special publication by TUI Hotels & Resorts: “Hotels in focus”, presentation for international investors

94 TUI Sustainability Reporting 2006/2007 Environmental management system

This gives TUI customers an opportunity to select particularly environmentally- friendly holiday hotels on the basis of concrete criteria described in the catalogues. This measure also stimulates hoteliers to work in a model way through their commitment to sustainable tourism development.

Thomson (TUI UK) launched the “Green Medal“ environmental quality competition in its catalogues in 2006 and awarded a prize to the fifteen outstanding hotels.

Green Medal winning hotels 2006 Overall Green Medal Winners: Coral Beach Hotel and Resort, Coral Bay, Cyprus Club Magic Life, Sharm El Sheikh, Egypt

Green Medal Winners: Riu Palace Helena Sands, Sunny Beach, Bulgaria Sheraton Miramar Resort, El Gouna, Egypt Mövenpick Resort, El Gouna, Egypt Club Robinson Cala Serena, Cal D’or, Majorca Hotel Sol y Mar Makadi Marine, Makadi Bay, Egypt Baron Palms Resort, Sharm El Sheikh, Egypt Grecotel Eva Palace, Komeno, Corfu Hotel Audax, Cala Galdana, Minorca Fuerte el Rompido, Costa de La Luz Hotel Sol Gavilanes, Cala Galdana, Minorca Alexander The Great Beach Hotel, Paphos, Cyprus Hotel Sunrise Beach, Protaras, Cyprus Laguna Materada, Porec, Croatia

All TUI UK Green Medals are listed on the Thomson website.

The commitment of TUI Hotels & Resorts to sustainable development encompasses specific in-house measures covering environmental protection and nature protection campaigns, plus additional activities, e.g. cooperation with local initiatives to integrate local industry and tourism. More details are available on the websites of the companies involved: Grecotel (Environmental commitment/Responsibility towards employees) Grupotel Iberotel Dorfhotel Nordotel Magic Life Paladien Riu (Riu/Environment) Robinson (ROBINSON Concept/Environment)

TUI Sustainability Reporting 2006/2007 95 Social responsibility towards our employees

Social responsibility Employee development Co-determination Health and occupational safety Pensions and part-time early retirement Work-Life Balance Diversity and handicapped people

96 TUI Sustainability Reporting 2006/2007 Social responsibility towards our employees

As crucial factors for TUI’s competitiveness, TUI’s 53 000 employees make a major contribution to the Group in the form of their broad spectrum of ideas, experience and outlooks, which guarantee a high level of beneficial innovation. The international make up of our staff means that our customers around the world always have someone at hand that speaks their language and understands their needs. This is just one of the reasons why we take our social responsibility towards our employees very seriously. Continu- ous training and further education here is just as important as promoting a proper Work-Life Balance – harmonising work and family life – as well as a fair style of work.

TUI Sustainability Reporting 2006/2007 97 Social responsibility towards our employees

Employee development

Companies cannot exist without a key success factor: People. Finding the “right“ employees, motivating them, supporting them and ensuring their proper further development is always one of the most important priorities of the TUI Group’s human resources activities.

Junior management development Training and developing junior management are as vital for business competitiveness as good in-house training programmes. 257 new trainees joined the TUI companies in Germany, and around 718 young employees enjoyed good quality training during 2006. The percentage of trainees was therefore maintained at last year’s high level of 6.5 per cent. Training as business administration assistants was made available for single mothers on a part-time basis (30 hours per week).

In addition to the range of internships designed to give pupils and students an initial insight into the company and its range of potential careers, TUI continued to be involved in 2006 in the “Fit for applications“ project organised by the Goinger Kreis. TUI youngsters team – Junior TUI’s involvement here reflects its socio-political responsibility. The project involves company in the World of TUI the Group HR managers assisting young people in preparing application documents and getting ready for job interviews.

Training and developing technical and The further development of technical staff and management at all levels of the management staff organisation is one of the main responsibilities of the corporate centre Human Re- source Development Department. Binding good employees to the company is also a major priority. To ensure the integrated development of technical and management staff at all management levels across the Group, TUI expanded its range of training opportunities further in 2006: management at lower levels were given access to an international method for assessing their personal situation, whilst top managers in Germany enjoyed the launch of a systematic process in which an analysis of personal potential is followed up by tailored development measures. The system is to be rolled out Group-wide next year. The international trainee programme and the middle management development programme was further expanded with the focus on personality development. Around 30 Group companies in approx. 15 countries benefited in 2006 from the international exchange of management development measures.

The process of staff management within the company is supported by integrated and variable remuneration schemes. This systematic process includes the annual staff assessment interview which is an important management tool for the targeted development of each member of staff in a way which boosts their own responsibility. Performance-based salaries and additional benefits are implemented to strengthen the productivity and the willingness of staff to work hard, stimulate the acquisition of a commercial mind set and profit-oriented working, not to mention furthering personal responsibility, strengthening financial participation in the success of the company and one’s own performance, and giving the company access to staff with the flexibility and adaptability to cope successfully with change processes.

98 TUI Sustainability Reporting 2006/2007 Social responsibility towards our employees

Co-determination within the Group

Employee representation in the Group Domestic and international employee representative organisations exist within the TUI Group in individual companies as well as at a Group level. The cooperation between the executive board and management of the companies with these committees was again marked in 2006 by professional respect and cooperation. This enabled balanced measures to be selectively found with the executive board and management which took into consideration the interests of the workforce and the company when strategic restructuring moves were implemented, and organisational and operative decisions involving adjustments to the workforce were contemplated.

TUI Europa Forum The TUI Europa Forum established in 1995 supplements at a European level the employee representative organisations which have to be implemented pursuant to national laws. The TUI Europa Forum currently consists of 52 employee representatives from 17 European countries. The executive committee of the TUI Europa Fo- rum is regularly informed by Group management, and the two sides regularly meet to discuss the current economic and HR situation within the Group. The TUI Europa Forum meets once a year and makes an important contribution at an international level to the transparency of Group-wide business decisions and the integration of the various nationalities within the TUI Group.

TUI Europa Forum 2006: Discussion time with Dr Michael Frenzel, TUI AG executive board chairman, and Dr Peter Engelen, member of the TUI AG executive board (HR, Legal Affairs, Environment and Sustainable Development)

TUI Sustainability Reporting 2006/2007 99 Social responsibility towards our employees

Occupational health promotion, health care and occupational safety

Health promotion TUI signed the European Union Luxembourg Declaration on the promotion of occupational health in 2006. In the same way as TUI’s Corporate Guideline, the Luxem- bourg declaration aims to improve health and safety at work.

The TUI Health Network promotes the exchange of ideas and experience on all health issues at a Group level. The network includes all of the “Health coordinators“ in each TUI company. The company also runs a nationwide Group committee on “Work-Health-Environment”, as well as local committees on “Health and safety at work”, which brings representatives of the employers and employees together several times a year to critically assess the ongoing performance of the programme and incorporate new ideas. On behalf of the whole Group, TUI joined the German Network for Promoting Health and Safety at Work (DNBGF).

TUI health programme Health Network An employee health programme was formulated under the heading “fit with TUI”. This concerns the provision of TUI Group company employees with a range of measures on a variety of themes such as:

“fit with TUI” feedback Ideas management, detailed staff surveys, point voting tools (intranet questionnaires), elaboration of health reports (statistical evaluations), etc. information Articles and information on medical issues in the intranet as well as the TUI Times staff newspaper, health seminars targeted at specific groups including trainees and management. talks Consultation and treatment by the company doctor, workplace inspections by occupational safety experts, addiction prevention programmes, etc. wellness A range of products involving nutritional education and massages at the workplace. integration To continuously further improve the integration of handicapped employees, campaigns are run each year under the umbrella of the TUI Initiative: 2002 Closing an integration agreement 2003 Intensifying cooperation with handicapped workshops 2004 TUI companies each provide a young handicapped person with a specially established training position 2005 Internships for young people with handicaps 2006 Changing lanes (TUI trainees experience day-to-day life in a facility for the handicapped) training Company sports, cooperation with gyms health activities Day of the Eye, cancer prevention, heart & circulation check-ups, etc. TUI Back Campaign, health checks (e.g. skin screening). TUI

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“Everyone benefits from the occupational health promotion measures: the staff by improving their fitness and health, and the company from the raised motivation of the staff and reduced illness-related costs.” Dr Peter Engelen, TUI AG executive board member HR, Legal Affairs, Environment and Sustainable Develpoment

Betriebskrankenkasse BKK TUI TUI employees benefit from the company’s own health insurance company, BKK TUI. BKK TUI boasted the acquisition of many new members in the 2006 financial year. The number of members rose during the course of the year from around 10 800 to over 12 000. Only 40 per cent of the employees of the World of TUI are BKK members. The percentage varies between 60 per cent at e.g. TUI Deutschland, and 25 per cent in other Group companies. These figures highlight that BKK has not yet established itself at the same level across the Group. Given the outstandingly good price/performance ratio boasted by the company, BKK has set itself a market share target of over 50 per cent amongst TUI companies.

With health insurance premiums of 12.6 per cent in 2006, and the bonuses paid to members of the health education programmes, BKK was the most economical health insurance scheme in Germany for the employees and the companies in World of TUI. BKK’s products are jointly developed with cooperation partners and are amongst the most innovative on the market. These products include BKK TravelPlus, BKK Bonus- Plus and BKK FamilyPlus, and bring tangible financial and health benefits for all of the persons insured with the company.

BKK TUI’s administration costs in 2006 only accounted for around 3 per cent of total expenditure (German average: approx. 6 per cent). This is around 40 per cent less than the German average and highlights the cost effectiveness of the administrative cooperation existing between BKK Salzgitter and BKK Publik since their foundation.

Occupational safety Numerous occupational safety measures were implemented at Group companies. Occupational safety experts advise and support companies on all aspects of occupational safety, including accident prevention, ergonomic workflows, and minimising health risks. Some of the main responsibilities include involvement in the planning, implementation and maintenance of equipment and installations. Other tasks include preparing analysis reports, inspecting workplaces, and assisting in the formulation of operating instructions, exit and emergency plans, hazardous materials inventories and maps, and organising driving safety training to minimise accidents on the road. The systematic disaster protection plans incorporate staff and first-aiders, evacua- tion helpers and safety officers.

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Occupational pensions and part-time early retirement Demographic change

Occupational and private pensions The elaboration and structure of occupational and private pension schemes must take into consideration the national situation in each country and the local economic conditions. Employees of German Group companies can choose from numerous occupational and private pension models. In Germany, the options include pension fund and direct insurance policies, as well as private pension insurance qualifying for state subsidies (Riester pension). Other options include the deferred compensation models which allow employees to select the pension scheme which suits their individual preferences. This scheme is becoming increasingly popular.

Part-time early retirement German employers and companies within the TUI Group make considerable use of the opportunities opened up by the Part-Time Early Retirement Act for a smooth transition from working life to retirement. The part-time early retirement agreements reached with employees are mainly based on the “block model“ working hours regulation. The associated bonuses accruing to these employees were hedged against the insolvency of their employers independent of when their part-time early retirement agreements began. Benefits provided by the company in this context will therefore considerably exceed the cover stipulated in the Part-Time Early Retirement Act adopted in 2004. TUI set aside around Euro 13.5 million for this purpose in 2006.

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Work-Life Balance Combining career and family

TUI actively supports the harmonisation of family and career. The proportion of female employees in the Group is currently around 65 per cent. The TUI Social Commit- tee is responsible throughout Germany for establishing consensus between employer and employee representatives in the implementation of family-friendly measures. TUI, on behalf of the whole Group, is one of the founding members of the nationwide network “Success factor family”. This network is an initiative of companies committed to establishing family-friendly HR policies. The companies within the TUI Group provide their staff with a range of opportunities in each of the different fields: Foto: Heiko Preller Dr Dieter Nirschl, director Group HR TUI AG, with the German Family Affairs Minis- Flexible working hours regulations. TUI provides flexible working hours regulations ter, Dr Ursula von der Leyen as well as part-time working models and tele-working jobs, which are available to all employees and management. Part-time employment models are also popular in TUI Group companies outside of Germany. The number of part-time employees across the Group is around 25 per cent. Employees in Germany also have the option of extend- ing the legal parental leave period by one year or to take unpaid leave to look after a member of the family in need of care.

Financial support. Financial allowances can be granted when employees get married, give birth, or need to arrange child care. Voluntary perks are also available during parental leave (e.g. employee share schemes, holiday discounts).

Company crèche. The company crèche in Hanover is a good means of harmoniously combining jobs and families. The Little World of TUI has places for 15 children between 1 to 3 years of age. The children are looked after by three state-certified child minders, and the crèche follows Reggio learning principles.

The company also set up a nationwide TUI child care swap marketplace in Germany. Staff can use the intranet database to post their child care requirements and find other staff offering to look after children (e.g. mothers on parental leave who wish Little World of TUI to look after another child in addition to their own, employees in part-time early retirement schemes who wish to become socially involved, and staff in their teens looking for babysitting opportunities).

Close contact – also during parental leave. During pregnancy or parental leave, employees are given the opportunity at any time of discussing their return to the workplace with the Human Resources Department. Use of in-house sources of information (such as the intranet), and voluntary perks – such as holiday discounts – are just as much part of the benefits scheme as participation in further training measures. Employees on parental leave also continue to receive the TUItimes (staff newspaper). In addition, employees undertaking parental leave are given opportunities of deputis- ing for absent staff to keep them up to speed with the company’s ongoing activities. Applications received from former employees who chose not to return to their jobs immediately after a period of parental leave because they wanted to look after their children for a longer period, are given priority over external applicants with the same qualifications if they reapply for employment with the company.

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Diversity and severely handicapped people

Diversity as an opportunity Diversity is still a relatively young issue, but one that is gaining in importance for European companies. At TUI, this term best reflects the diversity of our employees throughout the world. They contribute new ideas, background and outlooks to the company – a wealth and variety of impulses with enormous potential for innovation. Our customers also come from a broad spectrum of cultures. And so we have a perfect match: the international diversity of our employees means that our customers all around the world always find a TUI person to contact who speaks their language and understands their ways.

Individuality “Opening Doors“ is one of TUI’s brand values. We believe that the shared culture of openness makes a major contribution to creating a working environment in which everyone feels at home. Individuality is not just something we respect, it is something we deliberately nurture to motivate our employees and demonstrate how much we value all of our staff. Important elements in the recruitment and development of our employees are therefore non-discriminatory selection procedures, appropriate systems for performance assessment, a range of training and customised career development programmes, and always keeping our doors open for feedback.

The TUI Group boasts a wide range of programmes and projects underpinning a lively and friendly working environment for all of our employees – whatever their age, sex, ethnic origin, religion, sexuality or handicap. The three main areas of activity touching on diversity are briefly outlined below:

Work-Life Balance: Harmonising work and private life. As a Group we operate in different countries and different legal systems. Our brand value “Going Beyond“ is an obligation in our eyes: we always want to do more than is legally necessary so that our staff benefit and can more easily combine and harmonise working and family life.

Flexible working hours arrangements are popular with all employees because they help establish a healthy balance between home life and working time. We respect this wish, and most of our subsidiaries therefore have models available for flexible working hours which can differ from one another depending on the needs of each company.

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Diversity and severely handicapped people

Some examples: TUI AG and most of its subsidiaries offer flexible working hours, tele-working and reintegration into working life after a period of parental leave. We also set up the “Little World of TUI“ crèche. TUI AG also provides special allowances for external child care. TUI Deutschland and TUI AG allow employees to extend their period of parental leave by an extra fourth year. A special swap system was arranged in Germany to help employees organise their child care needs: a special page in the intranet has been set up for staff seeking and offering child care. TUI Nordic has a special model for children under the age of 7: their parents can work 75 per cent of the normal working hours. Many parents also work from home. Nouvelles Frontières supports mothers returning to work after taking parental leave. Fathers can also take a short period of parental leave. TUI Hellas has a special reintegration programme for the period after parental leave, and has flexible working hours for all staff.

Respect for all employees – whatever their age. People working in the travel sector tend to be relatively young on average. This is why we particularly value a mix of different age groups. We believe that young staff can learn from the experience of older employees, whilst the more experienced staff can benefit from the fresh ideas of the younger recruits.

For instance, TUI UK has developed detailed regulations to prevent direct and indirect age discrimination. One of the first steps was changing the wording of job ad- vertisements, job descriptions and application forms by no longer asking for the date of birth when not absolutely necessary.

Other examples: TUI AG introduced mentoring as a special HR development tool so that more experienced (usually older) employees can pass on their knowledge to less experienced colleagues. It is crucial for TUI Service AG to have the right mixture of young and experienced employees so that our customers enjoy the outstanding service they expect. All of the holiday rep teams in the destinations therefore consist of young as well as experienced employees.

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Handicapped people – we provide opportunities. TUI companies feel account- able for employing, training and integrating handicapped people. Properly qualified applicants are expressly encouraged to send in applications for job vacancies whatever their particular handicap. This measure enabled us to employ more people with handicaps in recent years. Handicapped employees in Germany also receive additional assistance from special members of staff who provide help on the basis of personal discussions, filling out application forms for a disability ID, and ordering relevant technical literature.

Young people in particular with handicaps are encouraged to apply for internships and training courses at TUI. In addition, in 2005 for instance, handicapped young people also took part in internship projects in the Netherlands and Germany.

Severely handicapped employees at TUI. German Group companies currently employ 220 severely handicapped employees. The Group also makes intense use of services or goods provided by handicapped workshops.

TUI’s strategy is to continuously improve the integration of people with handicaps. Applications are therefore expressly welcomed from interested and properly qualified people with handicaps. Every new vacancy is specifically assessed to judge whether the position can also be filled by a severely handicapped employee with the appropriate qualifications. If so, the job advertisement also includes the phrase “We encourage people with handicaps to apply for this position”. In parallel, we are continuously broadening the cooperation with handicapped workshops to safeguard jobs for people who have found no opportunities to find jobs in the free market. Workflows at TUI are therefore regularly examined to assess the feasibility of engaging handicapped workshops.

Trainees with handicaps. Young people with handicaps are expressly encouraged to apply for training vacancies at World of TUI. They naturally have to have the necessary qualifications: we expect willingness to work, motivation, a good school leaving certificate, and especially qualifications in the following subjects: German, English, mathematics, IT, and naturally also an interest in everything to do with holidays and travel. Depending on the company involved, training is then provided in Hanover or travel agencies throughout Germany. TUI provides trainees with opportunities to train as travel agency sales staff, office staff, Bachelor of Arts (B.A.).

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Employees and organisations sponsored by TUI benefit from the TUI health programme. The sponsorships involve campaigns organised by the employees for charitable purposes which are officially supported by the companies. They eloquently express the identification of the staff with socially deprived and needy people.

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Social commitment Foundations Company locations Destinations Global projects Work on behalf of human rights

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Responsibility towards society is a very important principle guiding TUI’s business activities – shaping its strategy considerations as well as its day-to-day business. TUI builds directly here on its deep roots and values as a corporate citizen: to enhance economic development and improve the quality of life at the company’s locations and tourism destinations. Our stance on social commitment is very firmly anchored in our corporate culture because it has been an integral part of TUI’s corporate strategy for many years to safeguard and underpin the company’s competitiveness.

Areas in which we express our social commitment: Children and young people Education and science Art and culture Sport

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Foundations Local commitment

The establishment of company foundations in the locations hosting our companies, is a clear demonstration of our local commitment and regional loyalty. TUI’s foundations reflect the classic form of our social commitment.

TUI Foundation The TUI Foundation was established in 1988 to commemorate the 75th anniversary of Preussag AG. The foundation was renamed the TUI Foundation in 2005. It is a charitable foundation in accordance with private law and has its headquarters in Hanover. It sponsors projects involving the education and training of children and young people, science and research, as well as art and culture. The foundation has a capital of around Euro 11.4 million. The funds for sponsorship are derived from the earnings generated by wisely investing this capital. The main regional focus of the foundation’s work is in Niedersachsen (www.tui-stiftung.de).

The TUI Foundation sponsored 22 projects with total donations of Euro 335 000 in 2006. Sponsorship was focused on training measures to enable unemployed young people to acquire qualifications, as well as a wide range of different projects in schools (e.g. providing equipment for science rooms, music classes, and funding project weeks).

Science and research Selected projects. The TUI Foundation has supported the scientific research accompanying the “Prevention through early support“ project run by the Criminological Research Institute in Niedersachsen (KFN) since 2005. This model project is unique in Germany and aims to test new channels for supporting children from the highest risk families from the earliest possible moment. The aim is to provide comprehensive assistance for young families facing difficult circumstances. The work includes support during pregnancy, and the provision of continuous information and assistance during the child’s first years. The accompanying research covers a period of six years and is the first of its kind in Germany to acquire scientifically valid information on the effect and benefits of the applied assistance measures.

The Rudolf-Schoen Prize for young doctors and scientists at the Hanover Medical School (MHH) was awarded for the 18th time in 2006. Worth Euro 20 000, the prize rewards scientists for outstanding clinical research published in scientific journals.

School projects The TUI Foundation is involved in the START Project of the charitable Hertie Foundation working in cooperation with the Ministry of Education in Niedersachsen. 20 scholarships were awarded for the 2006/2007 school year to high performing and socially committed pupils from migrant families. To assist their acquisition of proper school leaving qualifications, the selected pupils receive a PC with internet access, Euro 100 education funding per month, as well as free advice and educational seminars. START’s objective is to increase the number of migrant children acquiring higher level school leaving certificates and thus open up more educational and training channels.

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Another project conducted at a local level involves testing measures to improve the integration of migrant families. The aim of the “Parents’ evening“ project run by the Linden Comprehensive School, is to simplify involvement of the parents in the lives of their children at the school by holding special parents’ evenings in the native language of the migrants.

“Cool school“ is the name of the project run by the Carl-Stahmer-Hauptschule in Georgsmarienhütte. The school established a pupils cooperative with a supervisory board, executive board and management, responsible for organising some of the school activities: including running the cafeteria and producing and marketing around 3000 litres of apple juice per year. The pupils organised collection of the apples themselves from an orchard where the fruit was made available free of charge.

Qualification measures The involvement of the TUI Foundation in the 2006 Training Campaign with “Par- itätischer Niedersachsen“ (the umbrella organisation of the independent welfare support organisations in Niedersachsen) again highlights its commitment. For the third year in succession, young people with minimal opportunities on the training market for a variety of reasons are provided with apprenticeships by the member organisations of Paritätischer Niedersachsen. Half of the associated costs are donated by the foundation. The training campaign succeeds in creating additional apprenticeships which would otherwise not be available.

Cultural sponsorship In addition to various funding initiatives such as the Children’s Forum in the Sprengel Art Museum in Hanover, the TUI Foundation also sponsored the establishment of the New Youth Theatre “Junges Schauspiel Hannover“ at the State Theatre in Hano- ver in 2007. The foundation specifically sponsors the “Anti Violence“ theatre project which involves pupils from secondary and comprehensive schools working on a play on the subject of violence.

Hapag-Lloyd Foundation The Hapag-Lloyd Foundation was established in 1997 to commemorate the 150th anniversary of Hapag-Lloyd. The foundation sponsors projects involving culture, science and social commitment in Hamburg – the location of its headquarters. The foundation has a basic capital of Euro 5.12 million, and uses the return from the investment of this capital to support the aforementioned measures.

Hapag-Lloyd’s sponsorship and foundation activities have long benefited from their continuity – providing many years of reliable support to selected partners. One of the main priorities here is sponsoring young talent. Hapag-Lloyd itself was awarded the prestigious “KulturMerkur“ award by the Hamburg Chambers of Commerce together with the Hamburg Cultural Foundation in 2005, to honour its generous corporate cultural sponsorship.

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Junges Schauspielhaus Some sponsored projects in detail. The most recent recipient of sponsorship from the foundation has already acquired an excellent reputation within a very short period of time. The foundation is the main sponsor of the young and dynamic section of the Deutsches Schauspielhaus theatre company. With its involvement, Hapag- Lloyd demonstrates that the company seeks and actively engages in dialogue with the younger generation, not only within its own company but also society as a whole.

St. Pauli Theatre The St. Pauli Theatre is another major cooperation partner. The foundation provided this long-standing theatre with crucial funding, not to mention planning security. The theatre enjoys an established position in the active theatre landscape thanks to the high level of its productions and first class actors.

Junges Forum Musiktheater Hamburg’s opera house for young musicians and singers is called the “Junges Forum Musiktheater”. Up and coming singers, producers, stage and costume designers, con- ductors, dramaturgists, orchestral musicians and actors are supervised by lecturers from the various disciplines to discover the expressive power of the traditional but always evergreen opera world. Junges Forum Musiktheater is provided with assistance as part of the foundation’s philosophy of sponsoring young talent.

Preserving historical assets Restoration internships at the museums in Hamburg enable people interested in this career to prepare thoroughly for their training courses. This model receives applications from throughout the German-speaking world and is recommended by many universities. Hapag-Lloyd sponsors this important project which helps preserve and look after historical assets.

Hamburg Ballet The Hapag-Lloyd Foundation awards annual talent prizes to pupils of the Hamburg Ballet School run by John Neumeier. The prizes are awarded for outstanding work by young dancers who have the potential to follow in the footsteps of their stars.

Sponsoring children in China The Hapag-Lloyd Foundation supports Plan International by sponsoring children in China – a commitment which also successfully involves employees in the Hapag- Lloyd Group. The monthly payments by the sponsors enables Plan to finance valuable community projects such as schools, wells and hospitals in the villages in which the children live.

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Local commitment at company locations

The commitment of our companies at host locations mainly involves support for welfare and charitable organisations, and providing support for deprived children and young people.

Child sponsorships TUI’s child sponsorships are employee campaigns supported by the companies for charitable purposes. They therefore reflect in a special way the identification of the staff with socially deprived and needy people.

Staff at the companies located in Hanover have been making charitable donations for over 10 years. The employees select and support a different charitable sponsorship project every year. Money is then collected for 12 months at a range of bazaars and other events. The executive board and management are also fully involved in the sponsorship projects and always generously boost the money collected by the staff. Over Euro 280,000 has been collected so far in Hanover for direct support. Projects so far include existence support groups, day schools for mentally and physically handicapped children, accommodation for homeless young people, and financial and moral support for children with cancer, and their families. Staff in Hanover decided for the first time in 2007 to continue the support provided the previous year.

Hanover sponsorship 2006/2007 – Hilfe-für-Hungernde-Kinder e.V. (Help for Hungry Children) This initiative supports around 600 children and young people in schools and other institutions in Hanover to ensure that they have regular access to proper food during school breaks and lunchtime. The help is provided very discreetly to ensure that there is no discrimination against the children who usually come from difficult family backgrounds.

Charitable work by the members of TUI UK also goes back many years. Employees have provided sponsorship for the last three years to the state Macmillan Cancer Care Foundation which provides assistance to people with cancer, and their relatives. The employees have set themselves the target of collecting 500 000 Pounds for this organisation by carrying out a whole range of events. The money will finance six Macmillan nurses.

Good local citizens TUI’s commitment in the source markets is just as diverse as the companies within the Group. Part of our corporate culture is to bring alive social commitment wherever we are active.

Germany TUI AG’s loyalty to the area hosting its head office in Niedersachsen is reflected in many activities including sponsorship for the “60th anniversary of Niedersachsen“ celebrations in 2006. Specifically, TUI funded the www.60-jahre-niedersachsen.de, website which lay at the core of the celebrations and provided information on all of the activities.

TUI’s clear loyalty and commitment to strengthening and boosting the appeal of the city of Hanover and the Hanover Region is highlighted by the acquisition of the name rights to the TUI Arena, a major venue for cultural and sporting events in Hanover; its sponsorship of the premier division football team Hannover 96; sponsorship of the Hannover Scorpions ice hockey team; and the annual TUI half marathon.

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As part of their international training programme, our trainees are obliged to take part in a “social day“ in cooperation with a charitable organisation. This involvement strengthens the social competence of future management and gets across the company philosophy of corporate social responsibility.

TUI has a long tradition of cooperating with handicapped workshops in Germany. Handicapped workshops are engaged for instance to provide the catering for TUI’s in-house crèche, the production of high quality luggage tags, document destruction, and some laundry services.

France TUI companies abroad are also involved in improving the lives of inhabitants in their specific source markets. The French tour operator Nouvelles Frontières for instance sponsors the town twinning project between Montreuil (France) and Agadir (Mo- rocco).

Scandinavia The Swedish tour operator Fritidsresor launched its www.travelkids.se website in June 2006. Children can learn important geographic and tourism terms from this website and win attractive prizes by taking part in a range of general knowledge quizzes.

The Scandinavian airline TUIfly Nordic also cooperates with charitable organisations in Sweden and Norway.

Thomson and Thomsonfly in the UK support numerous charitable organisations and projects. One typical initiative is “Help a Hallam Child“ which supports deprived children and young people in Yorkshire and the North Midlands. Thomson’s sponsor- www.travelkids.se ship of the “Great Ormond Street Hospital Children’s Charity“ (GOSHCC) in the UK started three years ago. The charity helps seriously ill children recuperate and enjoy a few carefree moments: six children and their immediate relatives were flown to Majorca in 2006 to enjoy the premier of the “Pirates Adventure“ show. Thomsonfly United Kingdom sponsors the Portfield School for Autistic Children in Bournemouth. TUI UK acquired “Tall Stories“ in 2006, a company which specialises in organising charitable events. Tall Stories arranges sporting competitions throughout Europe for the benefit of charitable institutions and initiatives in the UK.

The Thomsonfly Training Centre (TTC) at East Midlands Airport in the UK is involved in an unusual sponsorship project. Old examination documents are de-stapled and shredded, and sent to Twycross Zoo to provide warm and comfortable bedding for its animals in winter – especially the monkeys. This unconventional “straw“ helps the zoo reduce its running costs.

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The local commitment in the UK is rounded off by sponsoring sports clubs at company locations, such as the Coventry Blaze Ice Hockey Club, and Tottenham Hotspur (to 2006), as well as the main sponsorship for the Godiva Award, honouring outstanding service and entertainment in Coventry and Warwickshire.

Scientific cooperation, sponsoring training and further education TUI is particularly interested in sponsoring tourism sector innovation and working closely together with universities and scientists.

TUI Campus This was the philosophy behind the establishment of the TUI Campus in 2006 – a scientific network initiative. This information platform which takes place twice a year in the form of a symposium, brings together scientists and professionals to discuss tourism and communications issues from a scientific point of view (www.tui-campus.de). The Group established the TUI Campus to underpin regular dialogue between science and industry and to gain ideas from big name institutions working outside of the tourism industry to boost the further development of its own business. Previous symposia dealt with the following issues: “What makes holidaymakers happy?”, “Holiday forms of the future”, and “The future of the brand”.

2nd TUI Campus symposium discussion TUI Future Council. The TUI Future Council “looks into a crystal ball“ to predict holi- round: Dr W. Isenberg, K. Hildebrandt; day and product trends over the next twenty years. It looks for answers to questions Prof Dr M. Lohmann, Dr M. Putschögl, such as: “What can we do right now? What demands will be placed on holidaymaking O. Leisse, Dr T. Petermann and K. Bur- and travel products in future? How will demographic change influence the tourism meister industry? It also provides ideas for future strategies and business activities.

The members of the TUI Future Council convened in 2007 include Klaus Burmeister, the founder of Z_punkt – The Foresight Company, Essen; Oliver Leisse, managing director of the Hamburg market and trend research institute EARS and EYES; and Prof Dr Bernd Schubert, head of the Institute for Sensory Research and Innovation Consultancy in Göttingen.

Cooperation with universities TUI’s commitment is rounded off by numerous cooperation projects with universities, scientific prizes, and the provision of training and further training opportunities for school children and younger people. Some typical activities are shown below:

ROBINSON cooperates with the International Applied Science University in Bad Honnef, providing assistance to build a demonstration hotel which will enable the students to analyse and design hotel processes under real conditions. ROBINSON also provides scholarships in this context to properly qualify management hopefuls.

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Training and further training The TUI Science Prize has been awarded for seven years now at the Harz Univer- sity in Wernigerode. The award is for outstanding degree dissertations which make a contribution to innovation in the tourism sector by integrating scientific expertise and business in practise.

Hapag-Lloyd established the Hamburg Hauptschule Model back in 2000 together with the Otto Group. The project provides pupils of the Hauptschule (extended ele- mentary school) with joint advice and supervision from teachers, career advisors and human resource managers from various companies. Since its founding, the initiative has succeeded in doubling the number of Hauptschule pupils entering unsponsored apprenticeship schemes. This outstanding performance and commitment was itself awarded the prestigious Carl-Bertelsmann Prize in 2005.

TUI AG and the TUI Foundation have supported the “School newspaper“ project at IZOP (Institute for Objectivising Learning and Examination Processes) since 2004. “Travel educates“ is the name of the project in which school classes carry out research on tourism topics in various Group companies or specific departments. After conducting their research in the field, the collected information is compiled in journalistic style and then published as a proper article in the regional daily papers cooperating with IZOP.

Pupils from Bremen at TUI headquarters TUI Nederland supports the ENIP initiative (En Nu lets Positiefs), which helps Moroc- learning about TUI’s environmental com- cans in Amsterdam improve their opportunities of actively participating in the job mitment market. TUI Nederland makes four apprenticeships available – two for male and two for female applicants. The young people taking part are also guaranteed a job after- wards at either the Arkefly airline or in the Arke travel agency chain.

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Commitment in destinations

The TUI way is characterised by genuine globality and cultural diversity. Employees, customers and partners form a unique network. It is marked by the exchange of information, intercultural cooperation and individual development opportunities. As a global player and local citizen we are always involved in intense social dialogue. We benefit here from new ideas and insights, and deeper awareness and trust.

Group-wide assistance after the tsunami In response to the disastrous tsunami in December 2004, TUI launched a wide-ranging and sustainable aid programme to support the especially hard hit regions. TUI AG made available a total of around Euro 1.25 million, supplemented by numerous activities and donations from Group companies. The various projects involved building homes, schools and hospitals, assisting fishermen and farmers in the form of micro-loans and non-cash contributions, medical training for hospital personnel, and many other forms of assistance.

Village projects in Sri Lanka – new homes for over 380 families TUI village Yayawatta Village sponsorship for Yayawatta with Plan International (with Plan International) Fishermen’s village in Negombo with DRV and the Roman Catholic Church Kumpurupiddy (Trincomalee) and Katuwila Village (Ahungalla) with Aitken Spence Travel Kathaluwa (Koggala) and Boussa (Galle) via Nouvelles Frontières

The funding still concentrates on building the village of Yayawatta in the Tangalle district on the south coast of Sri Lanka. This independent aid project has been realised in cooperation with the aid organisation “Plan International Deutschland e.V.”. TUI sponsors a community as part of this project and makes funding available for reconstruction. In addition, over Euro 140,000 of additional funding has been collected in the form of donations by subsidiaries and customers. The “Help for self-help“ ends in December 2007; when it is hoped the inhabitants will have established new livelihoods.

The future inhabitants of the new village were involved in the planning activities right from the start. Children in particular were repeatedly asked in workshops to paint or draw their dream house or dream village. Many tours of the construction site were organised to explain the construction progress to the villagers and to discuss additional measures and design aspects.

200 houses were built to provide new accommodation for around 1000 people. A kindergarten plus pre-school, a community centre, a village centre and a playground were also constructed. The kindergarten looks after around 600 children, who also come from neighbouring communities. This ensures quick integration of the new village into the region. Before the project ends in December 2007, Plan International will undertake additional wide-ranging measures to support the establishment of a properly functioning village community.

Other projects were also supported by TUI Group companies: the staff and management of TUI Nederland collected Euro 32 746 for the Dutch Asia Campaign organised by Giro 555. Another Euro 25 000 was donated to the children’s aid organisation Terre des Hommes to support the planned construction of the “Weerawila Hotel School“ on the south coast of Sri Lanka.

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This hotel school helps the affected island inhabitants – primarily young fishermen – establish a new livelihood. The French TUI subsidiary Nouvelles Frontières sponsored the organisation “Reconstruire et Vivre”. 5 Euros was donated to the organisation for every booking over a specific time period in 2005. The impressive Euro 150 000 collected in this way was used to build 40 houses and a kindergarten in each of two villages, and acquire two fishing boats.

TUI’s support for tsunami victims extends beyond Sri Lanka: TUI Nordic provided active support for one year in the particularly hard hit village of Kao Lak in Thailand by donating books and learning materials to the Takuapa Senanuku School. Around 400 pupils study tourism and economics at this institute.

Globally active – globally committed. It is only natural for us as a global player to concern ourselves with the needs of people at the locations where we are actively involved. We want to make an active contribution to improving the quality of life of the people in our destinations.

Asia Vicente Ferrer The TUI España destination agency has sponsored the Vincente Ferrer Foundation for many years. The foundation was set up to enable the villagers of Anantapur, located in one of the poorest and most deprived regions in India, to support themselves by helping them with economic, social and cultural projects. TUI España supports the foundation with flights for delegations visiting Anantapur, arranging sponsorships for children on behalf of Spanish families, and reporting on the progress of the work conducted by the organisation. www.fundacionvicenteferrer.org

World Cup auction Six original World Cup footballs cruised around the world on Hapag-Lloyd container ships before being signed and then auctioned amongst the Hapag-Lloyd employees. The Euro 1 658 proceeds were doubled up by the company management and are to be used by the children’s aid organisation Plan International to acquire tables, chairs, blackboards and computers for the Guan Zhuang Center Primary School in Jiao Jia, China.

Seeing clearly in Sri Lanka Forgotten spectacles are regularly handed in at TUIfly’s central left luggage department. If these glasses are not reclaimed by their owners, they are collected by staff and flown to Sri Lanka several times a year, where they are handed out to the needy in cooperation with the local Lions Club. New users have so far been found in this way for 600 spectacles.

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Central/South America Fighting poverty In cooperation with the Dutch aid organisation Cordaid, TUI Nederland is fighting poverty in the Dominican Republic. The joint self-help project to strengthen local handicraft production is aimed at improving the incomes of local inhabitants. The project is designed to boost the production and sales of local products to raise incomes in general and invigorate the local job market. The marketing activities are underpinned by customer flyers, outlets for the products in the retail areas in the hotels, and integration within the local excursion programmes. Local production is also strengthened by implementing further training measures and the coordinated organisation of the producers to ensure compliance with the necessary qualitative and quantitative standards – which also helps establish their competitiveness against the widely distributed goods from the Far East.

Another project in the Dominican Republic is supported by the local destination Internet for all agency TUI Dominicana, and involves setting up an internet library in Puerto Plata. Training rooms for children and adults are being built and equipped here in cooperation with the local aid organisation Fundation Patria. This facility enables a broad section of the local population to gain access to a PC and the internet. The project is financed by the excursions undertaken by customers because one US dollar per person per excursion flows into the project. One tour was also modified to allow a short stop off at the facility. This enables customers to learn about the aid project which they themselves support by participating in the excursion, as well as demonstrating to the inhabitants of Puerto Plata the active and long-term support from which they all benefit.

Where dreams come true: The Dominican Republic Education And Mentoring DREAM (DREAM) project is supported by Thomson through a wide range of activities at the destination. DREAM is a charitable organisation which enables people in small rural schools in particular to gain proper qualifications thanks to donations, non-cash contributions, mentors and training programmes for teachers. Further support is provided when needed to upgrade the facilities, e.g. libraries, classrooms and sani- tary facilities.

Europe “Holidays educate“ is the slogan under which TUI Deutschland and the Riu hotel company support a joint aid project on the Cape Verde Islands. 2 Euros per person for every holiday booking in the four-star Riu Funana Club Hotel on Sal island are donated to the Kim Barosa Junior and Middle School in Santa Maria. The money is used to modernise the school buildings and purchase teaching materials. The first measures were the construction of new class rooms and renovation of the school canteen and teachers’ room. The long-term aim is to improve the teaching conditions Holidays educate: Riu Funana on the Cape for the 450 pupils. Verde Islands (“Least Developed Coun- try”) where tourism funds a local school

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With Tabaluga to Majorca. Peter Maffay and his dragon chum Tabaluga support needy children: the Peter Maffay Foundation and the Tabaluga Children’s Founda- tion help children and young people traumatised by violence, war or abuse, as well as children affected by serious illness or handicaps. Children in the care of the organisation have enjoyed a range of care and therapy facilities in Bavaria since 2000. The Peter Maffay Foundation opened a holiday home on Majorca in summer 2003. The children and their carers have been able to combine therapy and holiday fun since then at the Finca C’an Llompart in Pollenca. In an exchange programme, Majorcan Help for needy children children in need of care are also able to spend their holidays at the Tabaluga Village in Peißenberg (Bavaria). Their safe outward and return travel has been looked after by TUI AG which has arranged the flights between Majorca and Munich right from the start of the project for the carers and the children in their charge. TUI involvement here helps traumatised children and young people gain a new outlook on life and new prospects on the basis of this international exchange programme.

New outlook The “Kids for Freedom“ (K4F) set sail for the fourth time in succession in July 2006. Around 60 children and young people from seven countries enjoyed a week-long cruise on a sailing ship in the Turkish Aegean – a chance to gain a sense of community and chart a new course for the future. TUI AG and Magic Life sponsor the pedagogical initiative which provides children and young people from difficult social backgrounds with a pleasant experience, active support in leading their lives, and useful contacts. TUI sponsored K4F right from the start and amongst other things arranges the flights for the German children taking part in the cruise, and finances the big going-home party at the end of the event.

Horizons The destination agency of the English tour operator Thomson supports the “Hori- zons de l’enfant au Sahel“ orphanage in Tunisia which looks after babies and small children up to the age of 2 years. Two carers have been financed so far with the help of weekly prize games and customers’ donations. The donors have also helped upgrade a dialysis unit at the childrens’ ward of a local hospital by funding medical equipment. Cultural heritage protection The “World of TUI Thomson Malta Heritage and Environment“ fund was launched in 1998 by a TUI UK destination manager. The aim of the fund is to protect and preserve the historic cultural heritage of the island of Malta in coordination with local authorities through joint projects. Schools and social projects in various regions are also sponsored. The fund is financed in various ways including donations from selected excursions to important heritage sites arranged by Thomson for holidaymakers in Malta.

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Doing good in Majorca TUI became the name sponsor in 2004 for the first “International TUI Marathon Palma de Majorca“ and has itself arranged the event since 2005. Around 4 000 runners lined up at the start in 2006. The aim is to attract 5 000 runners in 2007. TUI’s commitment here is undertaken for many reasons: to promote sport for all and strengthen health awareness; boost Majorca as a destination; and arrange an attractive sporting event (with a broad accompanying programme at the venue and along the route) – all for the benefit of the Majorcan inhabitants, runners and tourists. TUI also uses the event as a platform for its staff loyalty and motivation programme – by supporting a special category for the second time since 2006: the TUI In-house Eu- ropean Half Marathon Championships on Majorca. The Majorcan tourism association awarded TUI AG an honorary citation from the Formento del Turismo de Mallorca for the “Best tourism promotion initiative“ for the Balearic Islands.

Africa The TUI subsidiary TUIfly has already made two flights to Sudan on behalf of the German Red Cross carrying over 41 tons of aid to the country. The first flight in 2005 transported artificial limbs and baby food. The transport the following year mainly involved medical supplies such as first aid boxes, ultrasonic equipment, and an ob- stetric unit. Each of the flights represents a donation of Euro 35 000 for kerosene, and take-off and landing fees. The pilots and flight assistants make their own major contribution by working for free. Aid for Sudan The TUI España destination agency has supported the Campaner Foundation aid organisation for many years in its work to cure children affected by Noma. The foundation also organises educational and prevention campaigns to stop the spread of the Fighting Noma disease. Noma is an infectious disease which usually affects malnourished children and can cause serious deformities, particularly in the face.

AIDS prevention TUI AG has worked closely for many years with the development aid organisation “Deutsche Stiftung Weltbevölkerung“ (DSW) which has its headquarters in Hanover and is internationally active in sex education projects. To commemorate DSW’s 15th anniversary, TUI donated Euro 12 000 and sponsorsed two youth clubs in Kenya. The clubs educate young people on how to avoid unwanted pregnancies and how to protect themselves from AIDS. TUI also procured furniture, office materials and games to equip the club.

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Let the sun shine! The staff at the destination agency of the UK tour operator Thomson working in Egypt collected enough money from a range of campaigns amongst customers and staff to help build a kindergarten run by the Sunshine Orphanage Luxor charity. The company has cooperated with this organisation for many years and enabled many orphans to live a life of dignity and gain school qualifications.

Flex Travel, a subsidiary of TUI Suisse, is the first tour operator in Switzerland to use the “Fair Trade in Tourism South Africa“ quality label to highlight selected hotels in its current South Africa brochure. The quality label promotes and supports fair and responsible business practises by tourism businesses in South Africa. These respect the human rights, culture and environment in the area, and buy services under fair working conditions.

Magic School The team at the Magic Life Club Africana Imperial in Tunisia provides unbureau- cratic support for the neighbouring “Ecole Chabi“ primary school. The buildings had become dilapidated because of financial shortages. The water and electrical installations in particular were in need of thorough renovation, as was the school garden. The necessary renewal was carried out together with the 120 pupils who planted trees, renovated, and spruced up the school garden. The school is now visited by Magic Life staff every month to carry out any necessary work. Pupils are also invited to the club four times a year to find out in a playful way lots of useful information about environmental protection.

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Globally active – globally committed

Globalisation brings people and markets closer together. We accept our responsibilities as a “global corporate citizen“ of doing what we can worldwide.

Global projects 6 villages for 2006 “Join in to make children’s eyes smile”: This was the slogan on big shop window posters in more than 300 First travel agencies, Hapag-Lloyd travel agencies and TUI travel centres throughout Germany, inviting customers to join TUI in supporting orphaned and abandoned children in SOS children’s villages. The travel agencies – part of TUI Leisure Travel (TLT) – were partners in the “6 villages for 2006“ campaign – the official charity campaign of the 2006 World Cup. The aim was to use the donations collected by the end of the World Cup in summer 2006 to help build six new villages for 800 children in Brazil, Mexico, Nigeria, South Africa, Ukraine and Vietnam. Almost Euro 20 000 from donations and the raffling of holidays was collected for this worthwhile purpose.

Charts for children Hapag-Lloyd Cruises has a long tradition of auctioning maritime maps during the cruises of its MS Europa luxury cruise liner. The maps of the route of the relevant cruise, marked with all of the most important events during the cruise, and signed and stamped by the captain, are drawn up by the off duty ship’s officers, and auctioned amongst the customers. More than Euro 1.8 million in donations has been collected in this way since 1993 on behalf of 8 SOS children’s villages. These villages are located in Salvador, Brazil, India, Chile, Philippines (2 villages), Vietnam, Domini- can Republic and Uruguay. This commitment was honoured by the presentation of an SOS children’s village Medal of Honour.

Group-wide fight against child TUI companies across the Group are involved worldwide in fighting child prostitution. prostitution This is mostly done in cooperation with the international children’s rights organisation ECPAT (End Child Prostitution, Child Pornography and Trafficking of Children for Sexual Purposes). ECPAT has developed a code of conduct for the tourism industry based on the UN Declaration of Human Rights and the UN Convention on the Rights of Children. This code was signed directly with the aid organisation by TUI Nordic, TUI Nederland and TUI UK. TUI Deutschland, TUI Austria and the Belgian airline Jetair also comply with the statutes of the code as associate members of DRV (Deutscher Reiseverband – German Tour Operators Association), ÖRV (Aus- trian Tour Operators Association) and ABTO (Association of Belgian Tour Operators) respectively. The French company Nouvelles Frontières is committed in an analo- gous way to the charter of the French Tourism Ministry (“Des enterprises francaises s’engangent a lutter pour un tourisme respecteux des droits de l’enfant en France et à l’international”). Other companies such as TUI Suisse and Gebeco support ECPAT’s objectives although they have not signed the code.

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Contents of the code of conduct: Preparation and distribution of an explanatory brochure (only in Germany) Informing and raising the awareness of staff Incorporating clauses in contracts with providers Customer information Integral part of staff training Incorporation in corporate philosophy Annual reporting

Customers are informed about TUI’s commitment by way of relevant details in brochures, customer information, websites, in-flight magazines, catalogues, flyers and some in-flight videos. Training courses for staff at company locations and destinations raise awareness and helps break down taboos. All of the Group companies involved have incorporated relevant clauses in their hotel contracts utterly forbidding any tolerance or support for child prostitution.

As a partner of the French organisation “Tourism for Development”, the tour operator Nouvelles Frontières supports a range of development aid projects in Kenya, Tanzania, Morocco, Brazil, Cambodia and the Dominican Republic. The micro-financ- Improving quality of life worldwide ing projects implemented by TFD in cooperation with non-governmental organisations (NGOs) are just one of many projects including water treatment, support for smallholders, the construction of houses for refugees, fighting the spread of deserts, training orphans and renovating kindergartens.

Born Free Thomsonfly has cooperated with Born Free since 1995, a charity concerned with the protection of wild animal held in captivity around the world. Passengers and staff have donated around 2.5 million Pounds Sterling since the beginning of this campaign.

TUI companies supported the RTL Donation Marathon for the third time in a row. The success of the Donation Marathon was helped by the voluntary contributions of around 1 000 Group staff. The call centre taking the donation calls from viewers lies at the very heart of the benefit event, and is organised by TUI, which also made holidays available which were raffled amongst the donors. Additional donations were collected by a wide range of events held at Group companies. The money collected by the RTL Donation Marathon helps children’s aid projects around the world.

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Work on behalf of human rights

The “Guidelines for TUI Group employees TUI AG and all of its Group companies acknowledge their responsibility and are com- regarding dealings with business partners, mitted to observing and complying with human rights when undertaking their busi- staff, shareholders and the general pub- ness activities. lic“ (cf. p.31) stipulate basic and binding rules of conduct and regulations, and the As an affiliate member of the United Nations World Tourism Organisation (UNWTO), job-related consequences each and every TUI has officially pledged to honour the UNWTO Global Code of Ethics for Tourism. employee should expect to suffer in the With the mandate of the United Nations General Assembly, the UNWTO plays a key event of contravening the above. They role in promoting and developing the type of tourism which makes a contribution to apply equally to all employees, executive economic development, international understanding, peace, prosperity, and general employees and the members of the man- observance and compliance with human rights, and the basic freedom of all people agement within the TUI Group. independent of their race, sex, language or religion.

All TUI Group staff have access to the In its preamble to the Global Code of Ethics for Tourism, UNWTO refers to the guidelines and they apply to all companies following instruments in particular: in Germany and abroad in which TUI AG Universal Declaration of Human Rights of 10 December 1948 has a direct or indirect majority holding International Covenant on Economic, Social and Cultural Rights of 16 December and subsidiaries where TUI AG exercises 1966 corporate management. International Covenant on Civil and Political Rights of 16 December 1966 Conventions and recommendations adopted by the International Labour Organiza- Our employees respect the dignity, the tion [ILO] in the area of collective conventions, prohibition of forced labour and child privacy and the personal rights of each in- labour, defence of the rights of indigenous peoples, and equal treatment and non- dividual. They work together with women discrimination in the work place and men of different nationality, culture, religion and skin colour. Any different The principles of the Global Code of Ethics for Tourism in detail: treatment of employees related to gender, 1. Tourism’s contribution to mutual understanding and respect between race, skin colour, handicap, origin, religion, peoples and societies age or sexual orientation is absolutely 2. Tourism as a vehicle for individual and collective fulfilment prohibited. Our employees are open and 3. Tourism, a factor of sustainable development honest and stand by their obligations. 4. Tourism, a user of the cultural heritage of mankind and a contributor They are reliable and fair partners and to its enhancement only make promises they can keep. 5. Tourism, a beneficial activity for host countries and communities This applies to our work with those inside 6. Obligations of stakeholders in tourism development the company as well as to business deal- 7. Right to tourism ings with external partners. 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

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Product responsibility and consumer protection Sustainable product development Innovative marketing concepts Education and quality assurance

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Product development focused on sustainability and future-compatibility is one of the key tasks of modern company management, which optimises environmental and social aspects as well as the economic factors. This is achieved in the Group in interdisciplinary teams comprising product management, product development and product innovation staff.

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Sustainable product development in Tourism

One of the key tasks of modern company management is product development focused on sustainability and future-compatibility, which optimises environmental and social aspects as well as the economic factors. This is achieved in the Group in interdisciplinary teams comprising product management, product development and product innovation staff.

Volume business optimisation Environmental market research. Studies instigated by TUI Group Corporate Envi- ronmental Management and TUI Market Research confirm that customers continue to be sensitive to environmental protection issues. The survey conducted by TUI Market Research asked guests: “Which aspects are important when you select your holiday?“ The most frequent answers included:

Cleanliness, hygiene in the country (80.9 % of TUI guests) Unspoiled countryside (77.7 % of TUI guests Minimal environmental pollution (64.5 % of TUI guests)

TUI Deutschland’s whole product line is therefore continuously analysed to assess its environmental compatibility.

Annual environmental ranking of all TUI hotels. Every contractual hotel should implement high environmental standards to protect the future of its holiday region and contribute to the holiday satisfaction of TUI customers. To ensure that this is properly implemented, the environmental measures of all TUI hotels have been surveyed annually since 1992 via the TUI Environment Checklist. The environmental performance of each hotel is ranked by a two-phase scoring system:

Evaluation of environmental measures/minimum environmental standards. Hotels receive a specific number of points for environmental measures stipulated in the TUI Environment Checklist. The minimum objective of each contractual hotel is to maintain the defined minimum environmental standards. These include the following aspects:

Environmental policy on display for the hotel guests A dedicated environment officer At least four implemented water saving measures At least two implemented energy saving measures Regular measurement of resource consumption

Evaluating customer environmental satisfaction. In addition to the information collected by the Environment Checklist, the satisfaction of hotel guests with the environmental measures implemented at their hotel is evaluated on an annual basis. Customer questionnaires issued by TUI Market Research are handed to every customer in their TUI Environmental Checklist for Hotels travel documents and ask: “How would you assess the measures implemented by your holiday hotel to reduce environmental impact?“ Customers issue scores from 1 = “very good“ to 5 = “very bad”. The survey results are evaluated annually. The average score for TUI hotels in 2006 was 2.25. Every hotel receiving above average scores for their environmental performance is given bonus points. The total score for the environmental performance of each hotel is then calculated from the environmental performance score and the bonus points for customer satisfaction. This generates the annual environmental ranking of all TUI contractual hotels around the world.

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Awards for outstanding global environmental performance. The 100 hotels top- ping these global rankings – awarded the highest number of points for their environmentally-compatible and forward looking hotel management – receive the TUI En- vironment Champion Award. The best 10 hotels worldwide receive the Environment Champion in Gold. The objectivity of the environmental ranking evaluation method and the selection of TUI Environment Champions was inspected and approved by an independent expert as part of ISO 14001 certification.

Support for contractual partners. TUI not only demands high environmental standards, it also actively supports its hotel partners in achieving forward looking solutions. TUI set up the forum www.tui-ecohotel.de to promote the active exchange of ideas and information. This website provides TUI contractual partners with detailed information and help for further developing their environmental management systems. It also assists the cross-border exchange of best practice examples. Hotel- iers can also enter their latest environmental measures in an interactive Environment Checklist. TUI responds quickly to inform the hoteliers whether these measures conform with TUI’s minimum environmental standards.

TUI EcoResort award. TUI Hotels & Resorts and TUI AG Group Corporate Environ- mental Management cooperated to create the in-house quality label “EcoResort”. It hallmarks hotels and club complexes within the TUI Hotels & Resorts portfolio which fulfil the defined “EcoResort“ criteria:

1. 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.

2. 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.

3. Commitment to sustainable development EcoResorts cooperate with nature conservation organisations, are involved in cultural and social projects and sensitise staff in the holiday country to environmental issues.

4. High level 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.

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5. Certified environmental 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.

Thomson Green Medal award. Thomson (TUI UK) launched its Green Medal in 2006 as an internal quality label for high environmental and social standards. 4 500 hotels have already been checked on the basis of over 100 criteria. These include measures for environmentally-compatible hotel management, and benefits for the host country and its inhabitants. Other criteria include the purchase of local products, the creation of new jobs, and the training and development of local staff. Thomson awarded the highest possible status “Green Medal Winner“ to two hotels in 2006. 14 other hotels won the marginally less stringent Green Medal status.

Promoting sustainable consumption patterns Promoting sustainable consumption patterns – combined with the protection and enhancement of holiday quality – is one of the main objectives of sustainable tourism development today: sustainable holidays should no longer be a small niche product for a few particularly environmentally and socially committed tourists. The aim is to create a positive image for sustainability aspects and to make them appealing to the broadest possible circle of customers. This means that sustainable holiday products – for instance featuring particularly intense experiences – have to set themselves apart from other products. This will make it possible to permanently create broader acceptance for sustainable holidays amongst holidaymakers.

Product labelling for better informed consumer choice. Holidaymakers will only incorporate sustainability aspects in their holiday choices to a greater degree in future if they are supplied with information which is credible and convincing. Hotels with outstanding environmental and social performances are therefore labelled and highlighted in the TUI Deutschland brochures as EcoResort and TUI Environment Champions, whilst Thomson (TUI UK) labels such hotels with the Green Medal. The TUI Deutschland catalogues also provide customers with additional information on “Nature and Environment“ in each holiday region. The “Holiday and environmental compatibility“ page in all of the German-language TUI brochures helps consumers specifically with their choice of holidays by publishing a transparent declaration on environmental criteria for hotels, destinations and modes of transport. TUI Group Corporate Environmental Management is also available before and after the holiday to answer customer enquiries concerning the environment. The department also works closely together with Customer Service.

Nouvelles Frontières also began the publication of sustainable development and environmental protection information in its brochures in 2005. This raises the awareness of holidaymakers for sustainable holiday products and supports better-informed holiday choices.

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Specific target group marketing of sustainable holiday products INVENT project – Innovative marketing concepts for sustainable tourism products. Sustainable holidays need to be marketed in a more focused way at specific target groups. This is the conclusion of a research project conducted by INVENT, funded by the German Ministry for Education and Research (BMBF). Scientists from the Institut für sozial-ökologische Forschung (ISOE) GmbH (Institute for Socio-Ecological Research), the Tourism Management department of the University of Lüneburg, and project partners from the tourism and transport industry (AM- EROPA-REISEN GmbH, Deutsche Bahn AG and LTU-Touristik GmbH) cooperated INVENT – sustainability dream destina- under the overall management of Öko-Institut e.V. to develop marketing strategies tion. Innovative marketing concepts for aimed at minimising environmental impact and avoiding social conflict. TUI Group sustainable tourism products Corporate Environmental Management provided the project with technical support. The main focus of the work was a detailed analysis of the expectations and needs of mass market holidaymakers. The Institut für sozial-ökologische Forschung (ISOE) GmbH conducted a representative survey of over 2000 holidaymakers for this purpose. These findings identified seven different types of holidaymakers as new target groups for marketing.

TUI Market Research also carried out in-depth analysis on the expectations and needs of holidaymakers, and the lifestyles and holiday styles of various target groups. This enables sustainable holiday products such as close-to-nature tours, meet-the-locals tours and discovery tours to be tailored more closely to the needs of the various target groups:

Global Discoverer as a separate sub-brand. The TUI Deutschland GmbH brochure concept for the 2007 summer season underwent major restructuring in 2006. The heart of this repositioning involves the introduction of three sub-brands – the new TUI holiday worlds. Product development is completely oriented to the personal holiday motives of the customers. And the question: “What do you want to experience on your holiday?“ matches the product even more closely to the personal needs and holiday motives of customers.

The new “Global Discoverer“ TUI sub-brand (Weltentdecker) puts together a comprehensive range for the first time for holidaymakers who want to discover, experience and learn more about foreign countries, people and cultures. A “Glo- bal Discoverer“ is a TUI customer type who carries out detailed research before booking, and enjoys “continuous learning”. Such customers are looking for travel products with a great deal of flexibility – which is why the modular programme was considerably broadened. The number of customised tours was also increased, Global Discoverer as a separate sub-brand and can now accommodate private groups of two or more.

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Target-group specific close-to-nature mailing. Target-group specific mailing campaigns about the range of TUI close-to-nature products inform customer segments particularly interested in environment-oriented holiday products and close- to-nature holidays. This also involves the specific marketing of TUI Environment Champion hotels.

Close-to-nature holiday internet platform. TUI Deutschland’s close-to-nature holiday products are bundled on the internet. Customers looking for holidays of this type in the 2007 summer season can choose from over 200 close-to-nature holidays from the TUI country brochures and special brochures.

Sustainable holiday products An attractive and varied range of cycling and hiking holidays, meet-the-locals holidays or active participation in research projects help to attract new customer segments for more sustainable holidays.

Sustainable holiday products from TUI Holiday destination: How the locals live in host countries and meet-the-locals tour operators: Gebeco, Dr. Tigges, TUI excursions. “Gebeco Länder erleben“ (Gebeco Country Discovery) and “Dr. Tigges“ France, OFT Reisen, Thomson, Pollman’s are brands operated by the discovery and educational tour operator Gebeco, whose name stands for its corporate philosophy – “Gebeco – Gesellschaft für internationale Begegnung und Cooperation“ (International encounters and cooperation company). The company specialises in holidays giving participants an intensive insight into the holiday country, experiencing foreign cultures, meeting locals, and understanding their traditions and customs.

More holidays have been developed for 2007 which enable holidaymakers to experience in more depth the day-to-day lives of local inhabitants in the destination countries. Gebeco’s “Hongkong faces“ tour for instance brings holidaymakers face-to-face with the inhabitants of this dynamic city. Holidays are thus transformed into a medium for intercultural understanding and learning. In addition to classic country tours, TUI France also arranges special meet-the-locals holidays with its product “Les Circuits authentiques”. Close-to-nature and culture holidays are developed in cooperation with National Geographic, and include visits to otherwise inaccessible beauty spots and cultural treasures. The tours are accompanied by National Geographic experts.

For the first time in summer 2007, TUI’s OFT Reisen tour operator brand includes Nile cruises on the traditional Nile sailing ships, the Dahabeyas. Small groups of holidaymakers will be able to sail up the Nile in this way in an environmentally-compatible and much more thrilling way than is possible on the countless conventional cruise ships plying the busy river. Holidaymakers on the Dahabeyas are given a more intense insight into life on the river, its people and the culture in the backwaters away from the main tourist flows. All Jeep Safaris and Bedouin dinner excursions are organised by the English tour operator in cooperation with the local Bedouin community in the Sinai desert. This gives tourists a greater insight into the life and survival tactics of the desert nomads.

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Responsibility: “Local business in the The Kenyan destination agency Pollman’s also arranges excursions to Msorongo vil- community in Kenya” lage at the foot of the Taita Hills to give interested holidaymakers a better feel for the cultural traditions, special customs and lifestyles of local inhabitants.

Language skills: the basis for intercultural discourse. Even basic language skills enable holidaymakers to break the ice and get to know the local inhabitants better. The discovery and educational tour operator Gebeco is developing more tours in which the acquisition of language skills is an integral part of the holiday product. In the Dr. Tigges educational tour “Spanish and Quechua – day-to-day life on the Peruvian plateau“ holidaymakers are first taught a few basic language skills in Span- ish and Quechua. The subsequent tours of Indian communities give holidaymakers a more intense insight into the everyday lives of the local people, the culture of the Andean inhabitants, and an opportunity to talk to them personally. Dr. Tigges language education tours enable customers to find out more about the history of a language and its cultural means of expression. As well as learning about the structure of a language, holidaymakers also acquire basic language skills that they can put into practise during the tour. The Dr. Tigges language educational tour “Arabic: Key to Syrian culture“ was awarded the Golden Palm 2006 by GEO SAISON as the best discovery tour.

Holidays to UNESCO World Cultural and Natural Heritage Sites. According to the UNESCO definition, world heritage sites are “Witnesses of past cultures and unique natural landscapes whose disappearance would be an irreparable loss for the whole of humanity. Protecting them is the task of the international community.”

Tourism can be a risk as well as an opportunity for the conservation of world heritage sites. The UNESCO World Heritage Centre (WHC) has therefore implemented a “World Heritage Tourism Programme“ since 1991. The aim is to protect world herit- TUI España employees doing volun- age sites in the long term through sustainable tourism use and invalorisation. tary work in the world natural heritage TUI supports this objective. TUI tour operator brands give TUI holidaymakers national park “Las Cañadas del Teide”, worldwide the opportunity of undertaking round trips and excursions to numerous Tenerife/Canary Islands world cultural heritage sites and world natural heritage sites. The world heritage sites are highlighted in the tour descriptions. The “Nature and Environment“ pages in all German-language TUI brochures also provide customers with information on the UNESCO world heritage programme and the cultural and natural world heritage sites in the destination country. This publicises the UNESCO world heritage programme and raises the awareness of holidaymakers for the need to protect our common world cultural and natural heritage.

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Special theme brochures: Gebeco, Dr. Tig- Close-to-nature and fitness.The “Gebeco Country Discovery“ product range has ges, TUI Deutschland, Nouvelles included a special brochure on cycling and hiking holidays since summer 2006. These Frontières, Headwater products enable holidaymakers to actively explore and discover holiday countries on foot or by bike. The classic tour is the hiking or cycle tour of the Great Wall of China.

TUI Market Research has discovered that there are two different sportingly active target groups in the holiday market: recreational sportsmen and women and holiday sportsmen and women. The new TUI Sports brochure is focused on these target groups. Special attention here is given to professional and competent guiding and safety. TUI’s new “Hiking and Biking“ brochure is primarily aimed at active holidaymakers. Combining holidays with exercise is the most important priority for this customer group. The product line is designed in cooperation with experienced partners such as the Dutch bicycle manufacturer Koga Miyata and the Alpine School Inns- bruck (ASI). Both are trend-setters in the sporting holidays market and guarantee competence and quality.

The “TUI Global Discoverer Short Breaks“ brochure for summer 2007 includes 31 new close-to-nature short breaks marketed under “Fitness and Adventures”. In addition to classic cycling and hiking holidays, other products for holidaymakers interested in exercise include Nordic Walking days, mountain biking, canoe trips and sailing.

Nouvelles Frontières has two special brochures for close-to-nature holidays: “Rando & Trek“ for hiking and trekking holidays around the world, and the new “Aventure“ brochure for summer 2007 which includes outdoor sports such as canoe touring and Nordic Walking.

The English tour operator affiliate Headwater is a special tour operator exclusively arranging active outdoor holidays such as hiking, cycling and canoeing.

Preventative health care measures during holidays. In addition to personal wellbeing, another aspect of increasing importance for holidays is preventative health care. TUI’s “Vital“ brochure first issued in summer 2006 not only includes relaxation to wind down, but also active health improvement programmes, and in particular a preventative health programme developed in cooperation with the DAK and KHH medical insurance companies, and considerably broadened for summer 2007. TUI Vital holidaymakers can now participate in 50 subsidised preventative programmes in 34 hotels.

ROBINSON Clubs also increasingly provide their customers with opportunities for combining their holidays with preventative health measures. The new “ROBINSON WellFit Academy“ is run by highly qualified experts who introduce participants for a week to “healthy back“ exercises and “Pilates”. Holidays are therefore used as opportunities to TUI Vital is evolving into a health specialist take the first steps towards preventative health care in a relaxed environment condu- cive to learning. This forms a good basis for putting what has been learnt into practise and incorporating preventative health measures into people’s everyday lives.

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Special product lines for each age of life. TUI Deutschland has developed product lines especially adapted to the different requirements of each age of life. The background to this is that 45 per cent of customers are older than 50, and the number of tourists aged between 70 and 80 is set to double by 2020. “Enjoying life together“ is TUI’s motto for Best Agers in its “Club Elan“ product line featuring culture & education as well as exercise & health. TUI also has special Vital Holiday catalogues.

Background: The demographic changes affecting society are one of the big issues on the sustainability agenda concerning policy-makers, business and society. It challenges our competence in many areas: innovation, generational equality and social cohe- sion. Companies can play an active part in dialogue with the general public to push forward the necessary objective and subjective changes. In addition to some uncertainty and risk factors, demographic change can also be seen as a major opportunity for business. The changing needs of older societies, combined with innovative lifestyle models for Best Agers, create a rising demand for new products and services, and modify markets. Businesses are hoping to successfully bind the customers to themselves and their brands, and present attractive products for people in the third phase Club Elan product line for older tar- of life. And to ensure the positive future-orientation of their own products, companies get groups responding to demographic have to know how the economy will be affected by demographic change, in other change: “Business motor: Best Agers“ words, the direction in which consumption, savings, interest rates, salaries and public – mature citizens as consumers finances are heading in the long term.

Risks and opportunities of demographic The “Best Agers“ target group opens up big opportunities for the tourism sector be- change cause they have a great deal of spare time and spend a large proportion of their disposable income on leisure activities. There are also different customer types amongst Best Agers ranging from “less active“ to “sports holiday”. TUI participated in the dialogue paper “Business and demographic change“ published by the corporate platform econsense – Sustainable Development Forum of German Business.

“econsense in dialogue“ is special publication 104 published by “political ecology”

“TUI Family Fly & Car“ and “TUI Family Clubs“ brochures are specifically aimed at families. “TUI Baadingoo Kids Clubs”, “SOLINO-Kids Clubs“ and “TUI Family Clubs“ provide a range of special entertainment and supervision offers.

TUI hotels and contractual partners are evaluated and developed especially for family-friendly holidays on the basis of over 50 criteria. Special safety regulations for instance are stipulated and regularly inspected in all of the facilities designed specially for families. econsense “in dialogue”

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Environmentally-compatible holidays in ecologically sensitive areas. Cruise liners are able to visit unspoilt areas which are otherwise inaccessible but which also frequently host extremely sensitive habitats. Right from the start of product development, Hapag-Lloyd Cruises therefore expressly and carefully takes into consideration all of the regulations and stipulations for the planned routes, disembarking points and excursion destinations.

Hapag-Lloyd Cruises is a member of the “International Association of Antarc- tica Tour Operators (IAATO)“ and provides all passengers before they start their cruise with information developed by IAATO on proper behaviour for visitors to the Antarctic. Experts on board give lectures to raise the awareness of passengers for these very sensitive ecosystems. Hapag-Lloyd is committed to using state-of-the- art ships with the highest technical standards with the aim of implementing active environmental protection. Heavy oil consumption and emissions are reduced as far Environmentally-aware holidays with as possible by using ultramodern engines. All Hapag-Lloyd cruise liners use TBT-free Hapag-Lloyd Cruises underwater paint. Onboard biological sewage works and state-of-the-art incinera- tion systems minimise environmental impact.

Holidaymakers actively involved in coral protection. Marine scientist for a few days: a dream which comes true for ROBINSON scuba divers. Customers and employees of the ROBINSON Club Soma Bay (Egypt) had an opportunity in two project weeks in summer 2007 of seeing coral reefs with the eyes of a scientist and to become actively involved in coral protection. Under the expert guidance of a marine scientist from the protection initiative “Reef Check”, participants learnt a great deal about the fascinating species diversity on coral reefs, as well as the risks they face, and protection measures.

During their joint “Reef Check“ dives, the team of scientists and TUI customers on one occasion counted the number of groupers and lobsters – sensitive indicators for the health of a reef. The data was evaluated in situ by the team and forwarded straight to the “Reef Check“ head office in Los Angeles. The data was then incorporated in the reports on the global status of coral reefs.

Diving for handicapped customers. Colourful swarms of fishes, coral reefs and creepy underwater wrecks: TUI also makes it possible for handicapped people to discover the fascinating world of scuba diving. In its “TUI Sports Diving“ brochure, TUI makes available for the first time in 2007 special handicapped diving courses in Sharm El Sheikh. Specially trained diving instructors from the Handicap Scuba Association (HSA) enable handicapped people such as paraplegics, amputees, and blind or deaf people, to experience the weightlessness of the underwater world. In addition to ten hours of theory and training in the pool, the courses also include four open water dives. All participants stay over night in the Camel Dive Club in Na’ama Bay which is equipped with wheelchair-compatible rooms. Diving product line

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Consumer protection and information through education and quality assurance

Information for interested members of the public The “17th Reisepavillon – Marketplace for alternative travel“ took place in Hanover in February 2007. The world’s largest trade fair for sustainable tourism opened under the patronage of Prof Klaus Töpfer. On a shared stand with the cooperation partners United Nations Environment Programme/Convention on Migratory Species (Bonn Convention – UNEP/CMS) and Europarc Federation (European Charter for Sustainable Tourism in Protected Areas), staff from the corporate centre Group Cor- porate Environmental Management / Sustainable Development of TUI AG, and TUI Dr Dr Wolf Michael Iwand, TUI AG, talks Deutschland’s Quality and Environment Department informed the trade visitors and with the former German Environment interested members of the public through a range of presentations and info-material Minister and UNEP Director General Prof on the stand. A great deal of information was provided on the “Year of the Dolphin Dr Klaus Töpfer, and Anke Biedenkapp, 2007“ initiative to protect this endangered marine mammal. Stattreisen Hannover, at the “Reisepavil- lon“ consumer trade fair for sustainable Information for TUI customers and employees tourism. TUI’s information policy on specific sustainable development topics are primarily aimed at transparency and quality assurance in the Tourism and Cruises segments:

Product labelling for informed consumer choice. The provision of credible and transparent information enables customers to incorporate sustainability aspects in their travel choices. The range of information available is discussed in detail in the “Sustainable product development in tourism“ chapter.

Considerations on holidays in Myanmar – tourism with open eyes Controversial issues are tackled in special Holidays can raise questions. Particularly when the government of a destination is statements when required, such as this accused of violating fundamental human rights. Instituting a travel boycott has been example from TUI Suisse: discussed around the world for many years. The Nobel peace prize laureate Aung San Suu Kyi advocates a boycott on tourism in her home country. This gives rise to uncertainty: should one travel to the country, and if yes, in what form and with what attitude. The decision to travel must be well considered. Holidays in Myanmar are challenging. The experience is unforgettable: encounters with the local inhabitants are emotional. Foreign visitors bestow a great deal of hope on the local inhabitants, and provides an income for their families. Exchanging opinions with holiday reps, hotel staff, restaurant staff etc., helps break down prejudice. The traveller should be well aware that Myanmar is run by a military dictatorship. Freedom of opinion and More information at: direct contact with tourists, and the freedom of movement of the inhabitants can be www.fairunterwegs.ch restricted or risky. We primarily work with independent, private and non-governmen- www.respect.at tal partners. We therefore support sustainable and just development. Via our local www.tourism-watch.de representatives, we also nurture contacts with the political opposition who have no www.amnesty.ch objection to limited quality tourism. On the basis of our many years of experience, and the feedback from our customers, we are convinced: the journey is worthwhile. You decide.

TUI Sustainability Reporting 2006/2007 137 Product responsibility and consumer protection

Catalogue page “Holidays and environmental compatibility“ in TUI brochures

This page is published in the brochures issued by TUI Deutschland, TUI Suisse, TUI Austria, TUI Poland and ROBINSON.

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Quality assurance: Staff as multipliers and go-betweens on issues of sustainability

The TUI expert network formed by Environmental and Sustainability Coordinators has met once a year since 2004 at the “CoCoS“ Conference in Hanover (Coordina- tors’ Conference for Environmental Management and Sustainable Development). 74 participants from 39 TUI Group companies from 17 countries participated in the conference in September 2006 to push ahead the joint sustainability strategy and integrate it further within Group business processes.

An “Environmental Management/Sustainable Development“ section was incorpo- CoCoS 2006: TUI Environmental and rated in TUI’s Group-wide intranet portal “InTUItion“ to inform all staff worldwide Sustainability Coordinators from the on the Group regulations and about the Group’s main environmental and sustain- whole World of TUI meet in Hanover ability activities. The Document Centre holds relevant material for downloading. The “Experts Corner“ gives access to instructions and practical examples from across the Group. This makes it easier for the TUI Environmental and Sustainability Coordi- nators to optimise environmental and sustainability management within their own areas of responsibility.

The corporate centre Group Corporate Environmental Management/Sustainable Development, works together with TUI Deutschland to inform trainees in Hanover of the Group’s environmental and sustainability activities. Several trainees every year also undertake an extended period of training at TUI AG’s Group Corporate Environ- TUI Intranet Portal “INTUITION“ with mental Management/Sustainable Development Departments, or at TUI Deutschland. global reach for all environmental and sustainability aspects New members voted on to the workers’ councils in all Group companies have been invited since 2003 to take part in special inauguration seminars to inform them about the Group’s environmental and sustainability activities. Articles covering environmental and sustainability aspects have also been published in each issue of the “TUIti- mes“ staff newspaper since 2003. Several articles on sustainability and environmental issues involving shipping have been published in the “Hapag-Lloyd News“ staff magazine. TUI Deutschland sends out a company-wide quality and environmental newsletter to interested members of staff three times a year by e-mail. “TUI Green Days“ take place at regular intervals at TUI Deutschland and TUI AG. This involves presenting information on successful environmental protection activities in Hanover and around the world, and supporting the transfer of private experience and conduct to employees’ own workplaces – and vice versa. In cooperation with TUI Deut- schland, World of TUI’s holiday rep organisation in over 70 countries – TUI Service – trains its holiday reps in important aspects, including environmental protection, as part of its “permanent employee training“ (PET).

TUI Sustainability Reporting 2006/2007 139 Imprint

Imprint

140 TUI Sustainability Reporting 2006/2007 Imprint

Imprint and contacts

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

In-house competence project “Sustain- Project management ability reporting”: the TUI Sustainability Mila Dahle, [email protected] Reporting 2006/2007 was independently conceived and elaborated by TUI AG Editing employees. Mike Brauner Mila Dahle Dr Heinz Huesmann Dr Dr Wolf Michael Iwand Dr Alexa von Dossow

Translation from German for con- Support staff at corporate centre TUI AG Group Corporate venience only. In case of dispute the Environmental Management/Sustainable Development original version prevails. Katja Hoer Inga Meese Kerstin Sobania Ramona Thies

Group HR Dr Lars Kutschke Kristina Ohm

Group HR Development Birgit Kohlrausch

Editor-in-chief Dr Dr Wolf Michael Iwand

Telephone: +49 (0)511 566 2201 Fax: +49 (0) 511 566 2222 E-mail: [email protected]

www.tui-sustainability.com www.tui-environment.com

Editorial deadline: 30 June 2007

Layout and production www.add-wise.de Michael Kalde

TUI Destination Tenerife: The “Las Cañadas del Teide“ (Tenerife/Canary Islands) was adopted as a UNESCO World Natural Heritage Site in June 2007. TUI systematically supported the application over many years and refers to the UNESCO Cultural and Natural World Heritage Site programme in the destination countries in the German-language brochures, and specifically in the section on “Nature and Environment”. TUI tour operator brands arrange numerous round trips and excursions to many world cultural and natural heritage sites.

At the annual DRV conference (German Travel Association) in November 2006, TUI presented in detail the importance of sustainable development as an indispensable success factor for holiday destinations, and used “Destination Tenerife“ as a case study. The work in cooperation with Destination Tenerife is one of TUI’s best practice examples of strategic destination development

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