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 2 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 supple- mented 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 3 Executive Statement Executive statement Sustainable contribution to corporate value “One of the foundations of sustainable com- mercial 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 strategi- cally 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 4 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 continu- ous 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 5 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 organisa- tional 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 pro- moted 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”. 6 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

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