Our Journey Towards a Sustainable Future

PDF Compressor Pro Thomas Cook Group plc A Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Thomas Cook Group plc Sustainability Report 2012 Discover… our journey towards a sustainable future

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 2 Sustainability Report 2012 Contents 1 Our approach 3 Group CEO statement 4 About us 6 Our sustainability strategy 8 Key issues and risks 9 Stakeholder engagement 12 Memberships and partnerships 15 Ethics 18 Welcome to the Thomas Managing sustainability 19 Cook Group Sustainability Awards and recognition 21

Report 2012. 2 Our marketplace 23 Customer satisfaction 24 Protecting our customers 25 Read about the Customer health and safety 26 Engaging with customers on sustainability 28 sustainable transformation Supply chain management and Travelife 30 of our business – Our marketplace – data 32 to deliver for our 3 Our environment 33 Environmental management 34 customers, increase Climate change and carbon emissions 36 Aircraft emissions 37 trust, create value Energy and business travel 41 Resource use 43 and reduce risk. Waste 45 Conservation and animal welfare 48 Our environment – data 52

% 4 Our people 57 71 Our people strategy 58 increase in hotels with a Travelife award Employee engagement 59 Engaging for sustainability 61 Talent, assessment and development 63 Learning and development 66 Diversity, equality and inclusion 67 % Health and safety 68 90 Our people – data 71 renewable energy purchased across UK & Ireland 5 Our communities 77 Supporting our communities 78 Measuring our involvement 79 Charitable giving and volunteering 80 Home communities 84 Destination communities 85 3.78 Child protection 87 employee engagement score Our communities – data 89

6 Our performance 91

Our performance 91 About our reporting 92 £3m+ Targets and performance 93 Group-wide community contribution

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 3 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

At Thomas Cook, we want to be part of a sustainable future for our business and to contribute to sustaining the futures of the 1 communities in which we operate and Our the destinations we serve.

approach To achieve that, we have embarked on the sustainable transformation of our business. It means changing for the better in everything we do – from developing compelling new products for today’s and tomorrow’s customers right through to operating efﬁciently so that we save energy and cut waste.

Sustainability is just as important in our destinations, so we must use the inﬂuence and reach of the Group to help bring about sustainable transformations in the places our customers love to visit.

Key highlights

Launching Destinations of Excellence and engaging employees overseas

Being a successful business goes hand in hand with being a responsible Rollout of database leading to improved data collection and reporting business; sustainability is our goal.”

Harriet Green, Group Chief Executive Ofﬁcer Leaving a lasting legacy (Olympics) by supporting Sport England, which focuses on helping people and communities across the country create a sporting habit for life, with many of the projects supported this year developed for deprived communities

Reduction of brochure paper and implementation of new waste reduction and recycling measures

Increased interest and uptake among hoteliers for Travelife awards

In-kind donations signiﬁcantly higher from UK & Ireland for Flight of Dreams

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 4 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Group Transforming Thomas Cook for the future CEO statement As the Thomas Cook Group emerges from the most challenging year in its 171-year history, we are now focusing on transforming and energising our business to ensure that we exceed our customers’ expectations in every way.

Since I joined the Group in July 2012, we’ve moved at pace to build ﬁrm foundations on which to Energise, Focus and Rebuild the Group for long-term sustainable growth.

We’re developing a strategy to create proﬁtable growth for the future. Our important ﬁrst steps are to build an effective organisation, to address costs and to leverage our brands to build on our core products so that we attract new customers and retain existing relationships.

In our financial year ended October 2012, our Group’s gross profit margin was in line with the previous year at 22%, with an operating profit margin of 1.6% (for our Annual Report and Accounts 2012 visit www.thomascookgroup.com). Clearly, our greatest opportunity to sustain our business for the next 171 years-plus is to reduce our costs and improve profitability as we deliver even more to our existing, loyal customer groups while attracting new ones.

We will respond to the increasingly diverse and individual needs of today’s leisure traveller by becoming the high tech, high touch ‘Voyager Android’ of leisure travel – we will be there for our customers however, whenever and wherever they are in the world with an omni-channel offering to meet their needs. I truly believe that through innovation we will strengthen further the great Thomas Cook brand and business. Since I joined the Group in July 2012, we’ve moved at pace to build firm As part of our major initiative to build a more effective organisation and be a trusted business partner, we brought together our new and evolved values in a new Group Code of Conduct. foundations on which to Energise, Our Code enshrines our Trust Commitments and shared culture, reflecting Thomas Cook’s proud Focus and Rebuild the Group for heritage as the world’s best-known leisure travel company. As we go forward, we want our people long-term sustainable growth.” to live and breathe these values and commitments in every interaction, so that our stakeholders know what to expect from us, wherever we are in the world. Harriet Green, Group Chief Executive Officer Economic, environmental and social sustainability I have always believed that the three pillars of sustainability – economic, environmental and social – are equally essential for long-term business success.

The world is changing and alongside economic imperatives, our overall sustainability strategy is designed to ensure we encompass environmental and social topics that create value and strengthen trust in our brands.

Our 2020 sustainability targets were developed after consulting with stakeholder groups in 2011; they are ambitious, reﬂecting key issues and risks, across the Group and business segments, affecting our markets, people, environment and communities.

For example, our drive to embrace the Travelife Sustainability System in our own hotels and in our wider supply chain is a long-term programme with beneﬁts for our customers and for our suppliers’ businesses. This builds trust, increases efﬁciency and reduces costs and waste – adding value to the customer experience. We will increasingly seek to work with those business partners whose values and ways of working mirror our own.

Through our participation in this scheme, we continue to encourage best practice worldwide and now have 228 contracted hotels holding a Travelife award, an impressive increase of 71% from the previous year.

Although 98% of our carbon emissions come from the aircraft fleet across the Group, our airlines are among the world’s most efficient due to high-load factors and continual investment in fuel efficiencies, including pilot training and improved data management. The efforts we have made across all our operations that impact on our carbon footprint have ensured that the Group is in the top quarter of the Carbon Disclosure Project for FTSE companies reporting in 2012.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 5 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

In the home communities in which we operate, each of our markets has a responsibility for Group developing charitable activities. Thanks to the generosity of our customers and our people’s fundraising efforts, it’s fantastic to see that the Thomas Cook Children’s Charity has raised CEO statement over £3.7 million (to October 2012), including £1 million raised in 2012, to help sick and disadvantaged children in the UK and overseas.

Our teams in our destinations also play a signiﬁcant role in children’s welfare, and further to the Group-wide child protection policy we launched in 2011, the Group has committed to ‘The Code’, the international code of conduct on child protection driven by the travel industry.

Looking ahead As we transform our Group there is inevitably an impact on our people, and we appreciate how unsettling change can be and will work to minimise both the uncertainty and the negative impact for those adversely affected.

The challenge for the Group is integrating sustainability into our thinking, culture and processes in such a way that we can measure the value added to the business.

There is a real sense of energy, urgency and pace of change sweeping across the Group as people engage and connect with the business initiatives that will ultimately shape our future direction and sustain our business. Being a successful business goes hand in hand with being a responsible business; sustainability is our goal.

We welcome any feedback you may have on this report or our approach to sustainability more generally. Please get in touch at [email protected]

Harriet Green, Group Chief Executive Ofﬁcer

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 6 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

About us Thomas Cook Group is the oldest and best- known name in leisure travel, with sales of £9.5 billion, 31,000 employees and 23 million customers who travelled with us in 2012. We remain number one or two in our core markets.

Despite a challenging year, we are now focused on transforming the business and developing a strategy for the future. With our new Group Chief Executive Ofﬁcer Harriet Green at the helm, we are developing a clear vision to Energise, Focus and Rebuild Thomas Cook to deliver long-term 21 sustainable growth and stakeholder value. operating countries We operate under six geographic segments in 21 countries: • The UK, including Ireland and Egypt; • Central Europe; • West Europe; • Northern Europe; • North America; and • Germany (Condor, our German airline).

31,000 For full Group overview and ﬁnancial results, see Annual Report and Accounts 2012. employees Our products We offer a wide range of mainstream and independent holiday options, together with a selection of travel-related ﬁnancial services.

Mainstream: Our core product category is mainstream charter packages where two or more components of travel, such as ﬂights, hotels and transfers, are bundled together and offered for 23m sale as a single product through various distribution channels. customers Independent: Independent travel products encompass holiday components, dynamic packaging and scheduled tours, and give customers greater ﬂexibility to tailor their holiday to meet their own requirements in terms of destination, duration, variety and quality.

Travel-related ﬁnancial services: Our travel-related ﬁnancial services include foreign exchange and travel insurance, and are bought by customers alongside their holiday purchases.

Our multi-channel distribution Retail: In most of the Group’s operating segments, retail stores remain a signiﬁcant distribution channel for mainstream package holidays.

Online: Online is an increasingly important channel for the distribution of both mainstream package holidays and independent travel products.

Sales centre: We operate telephone sales centres offering advice to customers looking to book our holidays as well as taking bookings.

At the time of writing, our entire customer proposition is under detailed review, encompassing our distribution channels, our products and our brands. The transformation initiatives outlined in our Annual Report and Accounts 2012 are laying the foundations for this new strategy, which has been shared with stakeholders in spring 2013.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 7 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Values and ways of working About us We have created a new set of values to guide how we work together as a Group on our journey of sustainable transformation. Our values provide all our people with a clear direction on how we do business and a consistent company culture globally. This is especially important because we have a wide range of people in different roles across our business:

• Succeed as one team – we support and trust each other, and work as a single, worldwide high- performing team.

• Deliver for our customers – we are here to deliver the best possible customer experience today offering value, ﬂexibility and choice while innovating to meet the changing future needs of our customers.

• Engage each other – we recognise Thomas Cook people are the heart of our success. We are determined to energise and inspire each other, seeking out ideas and making sure we are all clear on our direction.

• Drive for results – we are resilient and have the courage and determination to succeed, and hold ourselves accountable for making robust, fact-based speedy decisions for lasting value.

• Act with integrity – we maintain the highest ethical standards and transparency in our work, and in our dealings with customers, partners, stakeholders and fellow employees. We keep our commitments, and are honest, fair and trustworthy.

For full Group overview and ﬁnancial results see Annual Report and Accounts 2012.

Group ﬁnancial summary £9.5bn £156m sales underlying proﬁt from operations

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 8 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Our sustainability Our Group vision for a sustainable future: strategy To ensure the longevity of our business through sustainable transformation and proﬁtable growth. To integrate sustainability into everything that we do – every product we sell, every customer’s holiday experience and every employee’s role.

Our sustainability strategy and aims for 2020 have been developed to maximise value for the Group, its Shareholders and its stakeholders while minimising any adverse impacts and risks.

Supporting economic, environmental and social improvements in our destinations can result in a more authentic and higher quality experience for our customers, which helps to increase loyalty and trust in our brands. In our operations, our focus on sustainability also contributes to risk management and cost efﬁciency.

Our approach to sustainability is aligned with the Board’s responsibility for the long-term success of the Group, and has four key elements:

• Our people: building an effective organisation by engaging and energising all our employees, developing our key talent and leadership, and recognising and rewarding high performance;

• Our environment: managing environmental risk through robust policies and procedures, systematically monitoring our performance and identifying areas for improvement;

• Our marketplace: working with our supply chain to build trust, increase efﬁciency and reduce All forms of tourism, if managed cost and waste; we want our customers to enjoy a safe, sustainable holiday experience; and well, can be sustainable, but no one • Our communities: developing a Group-wide community strategy to promote the health and can develop sustainable tourism prosperity of our destination communities and our home communities. by acting alone. It requires real collaboration between operators, We have identiﬁed key issues and risks under each element, through a formal engagement hoteliers, suppliers and destination process with our stakeholders that we carried out in 2011. governments – and long-term Using all these inputs, we have developed a set of challenging aims for 2020 to drive sustainable engagement with customers and transformation across the Group.

communities. Thomas Cook is playing In 2012, we have continued to reﬁne our framework and work towards our 2020 aims under the an active part.” guidance of our Group Working Party on Sustainability, which is made up of representatives of all Andrew Cooper, the operating business segments. Director of Government & External Affairs

Related information Key issues and risks Managing sustainability Group Policies

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 9 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Key issues Our key sustainability issues, below, were and risks identiﬁed by the Group Working Party on Sustainability, which represents all our business segments.

The list was reviewed and developed further after a formal consultation with stakeholder groups in the UK, a process that was completed in 2011.

Through the course of our business, we are in constant contact with millions of customers, our employees, suppliers and many other groups, and we will continue to use their feedback to ensure we focus on the sustainability topics that matter most to our stakeholders and to build these into the Group’s risk management.

Sustainability issues The table is a snapshot of current issues, identiﬁed according to their signiﬁcance at Group and business unit level:

G = Group A = Airlines D = Destinations O&R = Ofﬁces and Retail

Our marketplace Our environment Our people Our communities

Customers (G) • Conservation of • Recruitment, • Promoting local • Customer health natural assets and recognition and cultures (D) and safety biodiversity (D) retention • Improving • Proitability • Climate change • Employee local economic • Financial and GHG engagement development (D) protection emissions • Employee health • Child protection (A, D, O&R) • Brand reputation and safety – customer and • Resource eficiency • Diversity destination (D) • Customer (G) satisfaction • Community • Fuel eficiency (A) investment and • Energy eficiency engagement (G) Suppliers (O&R) • Sustainable supply chain (G) • Water management • Water (O&R) management in accommodation • Waste (D) management (A, O&R, D) • Paper reduction (O&R) • Energy security (G)

Risk management The Group is developing a more consistent approach to forecasting and financial reviews, with rigorous disciplines to minimise our risk exposure and ensure we identify any potential issues early (for full details of our business risks, see the Annual Report and Accounts 2012). This approach also includes significant sustainability risks (shown on following page), which are relevant to the Group’s strategy of generating profitable growth, building an effective organisation and addressing costs and cash.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 10 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Key issues Sustainability risk Why it matters What we’re doing and risks Our marketplace Brand reputation Potential brand damage by We continue to embed our failing to implement our sustainability strategy into the sustainability strategy. business. For example, our 2020 sustainability vision is an integral part of our newly developed Group Code of Conduct, launched in early 2013. Target: Integrate sustainability into the Company values by 2014. Supply chain Reputational risk if we do The Travelife Sustainability System not ensure high-quality, continues to be implemented by sustainable products and contracted hotels. services throughout our Target: 1,500 Group supply chain. accommodation suppliers to have a Travelife award by 2020. Our environment Climate change and Cost to the business of We are keeping abreast of GHG emissions regulatory requirements; forthcoming environmental ability to adapt to the legislation and ensuring the effects of climate change as relevant processes and procedures our products and services are in place to respond to this. depend on the natural Our adoption of the Travelife environment. Sustainability System helps to ensure hotels reduce consumption and can continue operating for the future. We are working with destination governments to understand the impacts of climate change in their locations. Target: Each source-market head ofﬁce to have an environmental certiﬁcation by 2020.

Conservation of Increased pressure from We are partnering with key natural assets and tourism on natural stakeholders in destinations biodiversity resources, which are already such as Futouris to protect both stretched in some holiday natural and cultural sites. Use of destinations. the Travelife Sustainability System encourages hotels to effectively manage energy, waste and water consumption. Target: 1,500 Group accommodation suppliers to have a Travelife award by 2020.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 11 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Key issues Energy security Cost and continuity We have made progress on fuel- of energy and airline saving initiatives through our fuel supplies. Airline Operational Efficiency and risks Working Group. We have a focus on reducing electricity consumption and moving to renewable electricity contracts where available. Target: Group airlines to make a 12% efficiency improvement by 2020, compared to 2008. Target: Reduce energy consumption by 20% by 2020, compared to 2010. Target: Purchase 20% of electricity from renewable sources by 2020. Our people Recruit and Being able to recruit and We continue to engage employees retain talent retain the best people in the in our future direction. Our Group business, as our people are Code of Conduct was developed our strongest asset. and launched in early 2013 to help employees live and breathe our shared values and be part of Thomas Cook’s sustainable transformation. Target: To incorporate sustainability into the Company values by 2014. Our communities Sustainability in High-quality destinations In our destinations, we are destination and and products are an integral working with governments, home communities part of our customers’ trade associations and other key holiday experience. destination partners to promote Thriving home communities sustainable tourism. are essential for developing Target: 1,500 Group our business, recruiting accommodation suppliers to talent and maintaining and have a Travelife award by 2020. growing our customer base. At home, we are developing employee volunteering and continuing to invest in community projects that generate shared socioeconomic and environmental benefits. Target: All segments to implement a charitable strategy for home and destination communities by 2014.

We are interested in hearing your thoughts and feedback on our key risks and issues. Please email us at: [email protected] or see Contact us for further details.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 12 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Stakeholder We deﬁne stakeholders as any group engagement with a potential or actual inﬂuence on our business, and vice versa.

Through our business activities and industry engagement, we have identiﬁed key stakeholders (below) with whom we interact continuously in many different ways, enabling us to incorporate feedback, focus on signiﬁcant issues and drive performance.

In our most recent formal engagement on sustainability – completed in 2011 with representatives of key groups – our stakeholders highlighted a number of themes as shown below. These views were used to inform our sustainability strategy and aims for 2020.

For more information on our engagement with industry bodies and sustainability organisations, see Memberships and partnerships.

Customers – understanding customer needs and maintaining our reputation for great customer service will help our business prosper and grow. • Customer service questionnaires every • Animal welfare: 33 incidents reported time a customer travels. by UK customers in 2012. • Ongoing customer relations emails/ We have worked with the Greek Animal letters/telephone calls. Welfare Fund (GAWF) on the issue of feral • Social media communications such cats and dogs, sending out literature to as Facebook and Twitter. inform and raise awareness with our customers. GAWF run neutering and welfare • Ongoing communications programmes and are lobbying the Greek to promote sustainability. Government for change. • Customer research. Read more: • Customer communications, website Conservation and animal welfare and literature.

Employees – engaging and motivating a talented workforce is key to becoming a more sustainable business. • Annual employee engagement survey. • Ensuring our employees act in line with • Quarterly segment employee forums. the Company values and ethics. • Annual European Works Council. We developed and launched our Group Code of Conduct in early 2013. This brings • At least quarterly employee together our shared values and ethical newsletters. policies, and provides practical examples • Intranet and email communication of the behaviours we expect. and surveys. Read more: • Biannual employee and leadership Ethics conferences and regular conference calls. • Union meetings as required. • Training, both face to face and e-learning.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 13 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Stakeholder Investors – being transparent about our business and sustainability performance will build investor trust and support their investment decisions. engagement • An investor relations programme • Carbon management conducted by the Group CEO, the and disclosure Group CFO and the investor relations Thomas Cook Group reported to the Carbon team, which includes presentation Disclosure Project (CDP) for the fourth year of preliminary and half-year results, running. The CDP compiles the world’s only ﬁnancial reports, interim management global climate change reporting system, statements, investor presentations and gathering company environmental data on trading updates. behalf of 655 institutional investors across • Quarterly trading updates accompanied the world that manage around $78 trillion by conference calls with the Group CEO in assets. and CFO. • The management team conducts Read more: regular meetings with institutional Climate change and carbon emissions investors and gives strategy update presentations as required. • Ad hoc introductory and update meetings between interested investors and our investor relations team. • Meetings with socially responsible investment funds. • Board responses to ad hoc requests for information. • All Shareholders are entitled to attend the Annual General Meeting. • The Senior Independent Director is available to Shareholders should they have concerns that cannot be resolved through the normal channels involving the Executive Directors or the Chairman.

Suppliers – working in partnership with responsible suppliers is in line with our values and helps us to improve our product. • Annual accommodation • Improving sustainability supplier survey. in hotels • Training on a variety of We signed up to the Travelife Sustainability sustainability issues. System as a group in 2011 and have ongoing • Meetings with individual suppliers and training for our own branded and owned central teams of hotel groups. hotels to help them achieve Travelife awards. We offer advice and support to • Supplier relationship other hoteliers to achieve Travelife awards. management meetings. Read more: Supply chain management and Travelife

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 14 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Stakeholder Governments/regulators* – helping us to keep abreast of the regulatory environment, influence changes that affect our business, and offer industry expertise where needed. *We do not make any donations to political parties, but we do work with government departments on issues that affect our engagement industry, including social and environmental policy. • Meetings with regulators in each • Developing standards source market. Our engagement focuses on finding fair and • Meetings with source market effective ways to incentivise environmental government departments with improvements without creating economic responsibility for transport barriers to travel. and tourism. Our Group airlines participate on their • Meetings with key MPs in national EU Emissions Trading Scheme constituencies where we have offices. committees, appointed by the authorities. Related information • In Europe, meetings with key oficials We continue to call for the reform of the in departments responsible for UK’s Air Passenger Duty as per aircraft rather Key issues and risks relevant European legislation. than per passenger. • Meetings with ministries of tourism Read more: Memberships and partnerships in destination governments. Aircraft emissions • A programme of engagement Climate change and carbon emissions with Ministers of Tourism in Waste key destinations. • Local councils in areas where our offices are located.

NGOs/charities – helping us to develop sustainability within our business, inﬂuence change outside our business and share best practice.

• Attendance at and participation in • Child protection – both destination and charitable projects, both at home and customer children. in destinations. We have committed to the industry-wide • Email updates. Code and have worked with a variety of • Campaigns, for example with animal NGOs and other organisations, such as welfare organisations. the UK Border Agency, to proactively raise awareness with employees, customers • Various charitable giving activities and suppliers. across our global operations. Read more: Child protection

Academia – drawing on knowledge of trends and challenges, helping us to develop sustainability within our business and share best practice.

• Participation in projects, conferences • Supporting the next generation. and research. Thomas Cook Germany has close links with • Meetings with academics several universities across Germany that and universities. have a focus on sustainability or tourism. Since 2009, seven internships have been offered to students giving them practical business experience as well as ensuring the dissertations are focused around our key issues. Industry associations – collaborating with industry peers and partners helps to extend our sustainability impacts outside our business and enhances our reputation as a responsible organisation.

• Regular market-based industry • Supply chain management association meetings, for example The Group signed up to the Travelife ABTA and DRV. Sustainability System as a means of helping • Regular market-based industry all our contracted hotels to become more association sustainability/ sustainable. environmental committees, Read more: for example ABTA Sustainable Supply chain management and Travelife Tourism Committee and DRV Nachhaltigkeitsausschuss.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 15 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Memberships At Thomas Cook, we believe collaboration and partnerships is essential to bring about change.

We therefore work with sustainability and industry organisations around the world to discuss and instigate action on issues that affect our business. In addition, we use our collective inﬂuence to drive sustainability beyond our own operations.

Tourism industry organisations and initiatives • ABTA – the UK’s largest travel industry association. We actively participate in a number of key committees:

ABTA Board and Aviation Committee – Andrew Cooper, Director of Government and External Affairs, sits on the Board and Aviation Committee.

ABTA Sustainable Tourism Committee – in 2012, we have continued to liaise closely with destination governments and authorities to create more sustainable destinations, with initial focus on the Dominican Republic, Egypt, Thailand and Turkey. Read more: Destination communities.

ABTA Health and Safety Committee – Thomas Cook UK is a member of this group and has been involved in establishing an industry-wide voluntary health and safety standard. In 2012, we have also helped to review the codes of practice for suppliers.

ABTA Animal Welfare Committee – we are a founding member of this group and were instrumental in developing an industry-wide Group Animal Welfare Policy and strategy. We have worked with ABTA to create an animal attractions handbook to address animal welfare issues and implement better practices in the supply chain.

ABTA Customer Service Committee – we contribute to driving high standards of customer service. Our ABTA membership means that customers of the majority of our UK subsidiaries are protected. Read more: Protecting our customers.

• Aviation Initiative for Renewable Energy in Germany (aireg e.V.) – a German cross-industry initiative launched to promote research and development of sustainable biofuels. Condor is a founding and active member. Read more: Aircraft emissions.

• Deutscher ReiseVerband (DRV) – the principal tourism industry association in Germany.

Thomas Cook Germany is a member of various DRV committees including Safety, Sustainability, Education/Training, Inbound and Outbound Tourism, Rail, Business Administration, Prevent Fraud, and Data Protection. The CEO and Head of Franchise and Sales of Thomas Cook Central Europe are also members of the DRV Board.

• EU ETS Committee for Danish Air Carriers – a committee focused on implementing the European Emissions Trading Scheme with Danish airlines.

Thomas Cook Airlines Scandinavia is represented on the committee, which was established by the regulatory authority.

• Futouris – a travel industry organisation aiming to improve sustainability in tourism destinations, operating under the patronage of DRV in Germany (see above).

Several German tour operators are members of Futouris and support sustainable projects focusing on social issues, environmental and climate concerns as well as biodiversity in destinations. Thomas Cook Germany is a long-standing member.

• The International Centre for Responsible Tourism (ICRT) – a postgraduate teaching and research centre at Leeds Metropolitan University in the UK, and the world’s leading centre of expertise on responsible tourism.

Our support also extends to offering help to students completing master’s degrees at the ICRT and assisting with research projects where possible.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 16 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

• Sustainable Aviation – an initiative bringing together leaders in the UK’s aviation industry to Memberships tackle the challenge of ensuring a sustainable future for the industry.

and partnerships As a signatory to the Sustainable Aviation strategy, Thomas Cook Airlines UK commits to, among other things, reducing carbon emissions and aircraft noise by 2020. Read more: Climate change and carbon emissions, Aircraft emissions, Waste.

• The Travel Foundation – a UK charity set up to promote sustainable tourism and collaborate with travel companies on projects beneﬁting destination communities.

Thomas Cook UK was a founder member, and has continued to raise funds for a variety of Travel Foundation projects. We also actively participate on the Activities Committee. Read more: Destination communities.

• Travelife – an industry-led sustainability scheme, established by ABTA, the European Union and other key stakeholders, which integrates sustainability principles into accommodation used by tour operators.

Thomas Cook Group signed up to the Travelife scheme in 2011 and is a key member of the Steering Committee, as well as being involved in a recent review of the award criteria.

Read more: Supply chain management and Travelife.

Sustainability organisations • CDP (formerly known as the Carbon Disclosure Project) – the largest database of carbon management information from companies around the world.

Thomas Cook Group has submitted data every year since 2009. Read more: Climate change and carbon emissions.

• London Benchmarking Group (LBG) – a group of international businesses who seek to manage, measure and report on their involvement in the community.

Thomas Cook UK joined LBG in 2011. Read more: Measuring our involvement.

• The Prince’s May Day Network – a collaboration of businesses taking action on climate change.

We have been a member since its foundation and have pledged to reduce our carbon emissions, and to encourage employees to reduce their emissions at home as well as at work.

Animal welfare charities We support and promote international wildlife charity Born Free and its initiatives to raise animal welfare standards.

We also work with The Brooke, an international NGO dedicated to improving the lives of working horses, donkeys and mules in the developing world. Thomas Cook UK promotes its Happy Horses Holiday Code in resorts where horses and donkeys are used.

Other animal welfare organisations we work with include the Greek Animal Welfare Fund (GAWF), the Zante Animal Welfare Fund (ZAWF) and the Society for the Protection of Animals Abroad (SPANA).

Read more: Conservation and animal welfare.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 17 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Other charities Memberships Thomas Cook UK & Ireland works with the Charities Aid Foundation (CAF) to ensure that we and partnerships donate in the most tax-efﬁcient manner and to encourage payroll giving. In August 2012, Thomas Cook Group committed to The Code, an industry-driven responsible tourism initiative focused on child protection.

Since 2001, our airline in Germany, Condor, has been supporting HelpAlliance, an independent aid organisation, by fundraising and by raising awareness, including showing a HelpAlliance ﬁlm on-board and publishing articles in the in-ﬂight magazine.

Condor is also a strategic partner of Wings of Help, an aid organisation that coordinates air transport for rescue workers, supplies and patients. The entire Condor ﬂeet carries the Wings of Help logo.

Thomas Cook Germany works with Welthungerhilfe, an internationally known organisation focused on reducing global famine and poverty, and is currently supporting two projects – one in Cuba and the other in Sri Lanka.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 18 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Ethics We are committed to ensuring that we conduct our business responsibly, legally, professionally and with integrity. We do not tolerate any activity that breaches the policies and standards that we expect all our people and operations to meet.

Related information We want to be known as a company that can be trusted to do what we say and, as part of Managing sustainability ensuring our employees understand the standards we expect, in 2012 we developed our Group Code of Conduct (launched to employees in early 2013). This brings together our shared values, ways of working and ethical policies to reinforce our vision of being a trusted business partner and a place where we are all proud to work.

Our Code of Conduct covers key areas of compliance and business ethics, and begins with a personal written message from Harriet Green, our CEO. It also provides practical guidance and scenarios to help employees to live Thomas Cook Group values every day, be responsible and report any concerns they have.

Key statements Human rights We are committed to respecting the UN Universal Declaration of Human Rights and the International Labour Organization core standards of rights at work, in accordance with the local and national laws in our countries of operation. Thomas Cook Germany has signed the UN World Tourism Organization Code of Ethics.

Anti-bribery and anti-corruption We will not engage in any form of bribery or corruption in any aspect of our business or external relationships. This principle applies not just to the Company but to all our colleagues, and also to agents, suppliers and other business partners, who act on our behalf or with whom we conduct business.

We will not be involved in any decision in which we have a direct or indirect personal interest or accept any hospitality, gifts or concessions that would embarrass the Company or an individual if publicly disclosed.

Competition law and trade restrictions We will, at all times, make independent decisions on how we compete in the marketplace, based on our own independently derived knowledge of the market and without reaching any agreement or understanding with our competitors. We will never disclose to a competitor any sensitive commercial information that could inﬂuence their market behaviour. We may, from time to time, be restricted from buying products or services from certain countries due to government advice, legislation or Company policy and we will, on notice, comply with such restrictions and sanctions without exception.

Conflict of interests and benefits We will not allow any external interests or the receipt of benefits from third parties to influence our behaviour and decisions. We will never use our position for personal gain.

Whistleblowing We take allegations of malpractice and wrongdoing very seriously to safeguard the values, ethics and reputation of the Group, and we therefore encourage employees to raise any concern they have. They can do this with their line manager or call our conﬁdential, external provider anonymously; issues are then escalated to the appropriate level. We investigate these thoroughly and conﬁdentially.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 19 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Managing The Board, through the Health, Safety sustainability and Environmental Committee, sets the Group’s sustainability strategy.

Thomas Cook Group plc Board

Health, Safety and Related information Environmental Committee Key issues and risks Engaging for sustainability Director, Government and External Affairs Our people – data Group Sustainability Working Party Sustainability Team

• The Health, Safety and Environmental Committee sets and approves policy and approach. It is chaired by Peter Marks, Non-Executive Director, and meets ﬁve times a year. For full details of the Committee’s composition, role and activities, see Annual Report and Accounts 2012, pages 49–50.

• The Group Working Party on Sustainability (GWPS) shares best practice and implementation. It was set up in 2010, oversees strategic decision making and meets twice a year. It is made up of representatives of all the operating business segments, each of whom has responsibility for sustainability matters in their part of the business.

• Andrew Cooper, Director of Government and External Affairs, oversees the GWPS and our central Sustainability Team, which reports outputs and ensures implementation in key business segments.

Management approach and policies In addition to our Group Code of Conduct, which brings together our values and key ethical policies for our employees – wherever we are in the world – we have speciﬁc Group policies A priority of the Group Working related to sustainability. These set international minimum requirements and apply to all our business segments: Party on Sustainability is to promote a forward-thinking culture on • Group Sustainable Tourism Policy important sustainable tourism topics. • Group Environmental Policy • Group Child Protection Policy Through the work of the GWPS, in • Group Animal Welfare Policy many of our business segments there • Group Community Engagement Policy are now people with a remit for • Health and Safety Policy sustainability as part of their job role, There is local decision making and implementation in our business segments, and monitoring and that’s been a real step forward.” and reporting is coordinated at Group level. In 2013, we will be looking to review our Group policies to ensure they are aligned with internal and external codes. Stefanie Krumm, Thomas Cook Germany

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 20 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Risk management Managing Under the leadership of the Group CEO and Group CFO, signiﬁcant steps are being taken to strengthen risk management. The Group’s systems for identifying and mitigating risk cover both sustainability sustainability issues and other business risks.

The Board has delegated responsibility for the implementation of the Group Risk Management Policy to the Group Risk Management Committee (GRMC), chaired by the newly appointed Director of Enterprise Risk and Audit and comprising senior executives from across the Group.

Each of the six segments has a risk management committee, which meets regularly. By implementing the Risk Management Policy, the segments are responsible for maintaining and updating risk reporting; managing risk action implementation and measurement systems; and maintaining and reviewing risk performance and measurement systems.

For full details see Annual Report and Accounts 2012 – page 18 (renewed focus on risk management; principal risks and uncertainties) and page 51 (GRMC, risk management and internal control, risk identiﬁcation and reporting).

Read more about speciﬁc sustainability risks in this report, under Key issues and risks.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 21 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Awards Travel agency and tour operator awards – 2012 British Travel Thomas Cook UK & Ireland won eight awards, including Best Awards Overall Family Holiday Company, and ﬁve silver and bronze and recognition awards in November 2012. Scottish Passenger Thomas Cook was voted Best Overall Tour Operator and Agency Association Co-operative Travel Livingston was voted Best Multiple (SPAA) Awards Leisure Agency. Thomas Cook was runner up in four additional categories. British Travel Press Thomas Cook UK & Ireland was shortlisted for the Travel Editors’ Awards Green Award of the year. Agents’ Choice Thomas Cook North America brands Intair/Fun Sun won Award Best Consolidator. Travel Hot News Intair honoured by Travel Hot News as ‘Consolidator of the Year’ in both the ‘Mentions d’Honneur’ awards and the ‘Awards of Excellence’. This is in addition to recent Canadian Travel Press Agents’ Choice Awards win for ‘Best Consolidator’. Best Service Quality Condor won the award for best service quality by German TV station n-tv and the German Institute for Service Quality. They were also the best German leisure airline in the category ‘Tourism’. Best Children’s Fares Condor won an award from Clever Reisen, a leading travel magazine, for best children’s fares among German airlines.

Environmental, health and safety – 2012 EU-Ecolabel Four Sunwing resorts were awarded the EU-Ecolabel for environmental performance, including the Kamala in Thailand for the ﬁrst time. Travelife awards 189 gold, 29 silver and 10 bronze. Read more: Supply chain management and Travelife. Check Safety First Our Sunwing resorts were winners in Health and Safety from the health and safety auditing company: • Global winner: Sunwing Resort Fanabe in Tenerife; • National winners: Sunwing Resort and Spa Sandy Bay in Cyprus, Sunwing Resort and Spa Kamala in Thailand; and • Regional winner: Sunwing Resort Arguinegin in Gran Canaria.

European Blue Flag Sunwing Resorts consistently receive the Blue Flag award for the proper management and maintenance of coastal environment and beaches. Environmental ISO 14001 retention for both UK and Northern Europe Airlines. Management EcoProﬁt for Thomas Cook Germany. Systems Atmosfair Airline ISO 14001 retention for both UK and Northern Europe Airlines. Index 2012 EcoProﬁt for Thomas Cook Germany.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 22 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Awards Customer offering and service awards – 2012 TÜV – a global Thomas Cook Central Europe won several awards including leader in safer shopping, complaint management, customer services and recognition independent and crisis management. testing, inspection and certiﬁcation services Getestet.de Condor won second place for the web portal www.condor.com by the independent testing web portal ‘Getestet.de’.

Individual employee achievement awards – 2012 Travel Hot News Patrick Corriveau (Montreal) and Anna Han (Vancouver) won Reservation Agents of the Year Awards from Travel Hot News for Did you know? their great customer service. Our airlines both in the UK and Germany retained the ISO 14001 certiﬁcation, the leading standard for environmental management; and Condor was ranked in the top six out of 125 worldwide airlines in the Atmosfair Airline Index.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 23 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

We’re working hard to introduce sustainability across our products, in collaboration with local communities and 2 our suppliers. Sustainable tourism helps Our protect the destinations our customers love to visit, enhances the customer marketplace experience and creates long-term value for our business.

Key highlights 23m customers travelled with us in 2012 1st global tour operator to sign up to the Travelife certiﬁcation scheme

Held successful campaigns for Make Holidays Greener consumer campaign

Developing sustainable tourism “Flying in a charter aircraft is the least polluting way to ﬂy, and by educating holidaymakers and working with destinations and operators we can help to make large-scale tourism more sustainable.” Harold Goodwin, Director, International Centre for Responsible Tourism

Make Holidays Greener Olive trees recently planted at the Club Mac hotel in Mallorca are not just beneﬁting the environment and biodiversity, but the fruits will eventually provide the hotel with its own local supply.

Read more: Engaging with customers on sustainability.

SENTIDO going for Travelife gold Our international brand SENTIDO Hotels & Resorts has a distinct culture centred on the idea of treating your senses to a holiday and is raising the bar on its sustainability performance.

Read more: Supply chain management and Travelife.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 24 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Customer satisfaction In 2012, over 23 million customers enjoyed their holidays with us and it’s vital that we demonstrate that our customers’ trust is well placed.

As part of developing the Group’s future direction and vision under the leadership of our new CEO, we are reviewing our entire customer proposition, channels, content and brands. This work will ensure that we focus our efforts on what adds the greatest value for our existing customers, Related information attracts new customers and delivers the best return for our Company and our stakeholders. Engaging with customers on sustainability We ensure customer satisfaction by:

Our marketplace – data • training our customer-facing employees to deliver our promises at every stage of the customer journey;

• listening to our customers and responding to needs and expectations;

• asking our customers to tell us about their experiences, using many different channels including online forums, mystery shoppers, regular satisfaction surveys, social media and telephone interviews with customers; and

• analysing our customers’ feedback, regularly sharing it across the business and acting on it to improve our products and services, and resolve any customer concerns.

Over the next ﬁnancial year we will be looking to build and enhance current core product strength, strengthen air travel proposition, and offer a wide range of distribution channels to meet customers’ needs and make it easier for customers to get what they want. We will develop compelling new propositions to attract new customers.

How our customers rate us on sustainability In 2012, we expanded the questionnaire used with customers in the UK and asked them to rate Did you know? their holiday company’s respect for the local environment and people. 43% of respondents rate Thomas Cook Central Europe won several Thomas Cook as ‘Excellent’ and 48% rate us as ‘Good’ (cumulative scores, summer 2012). TÜV awards for safer shopping, complaint To further improve these scores we launched our Destinations of Excellence programme in management, customer services and May 2012. This Group initiative provides a structured framework designed to support overseas- crisis management. based colleagues to meet the long-term sustainability objectives of the business. Reaching over 80 destinations, the scheme enables the monitoring and reporting of our resort teams’ environmental, social, commercial and charitable activities.

Performance data 91% of Thomas Cook UK & Ireland customers rate our sustainability performance as ‘Good’ or ‘Excellent’

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 25 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Protecting At Thomas Cook, we aim to deal with our customers our customers honestly, transparently and fairly.

We take this approach in every aspect of our offering, from marketing materials and booking procedures to pricing our holidays and clearly explaining any legal liabilities. Part of the quality and strength of our global brand is the support and protection offered to our customers when they book with us.

We comply with the relevant ﬁnancial protection arrangements in the jurisdictions where we Related information operate. Furthermore, our UK customers are protected under several statutory and voluntary Customer health and safety schemes. Our ABTA membership means that customers of the majority of our UK subsidiaries are protected. We follow the ABTA Code of Conduct, which ensures that the public receives the best possible service from member companies and offers some ﬁnancial protection for package holidays where protection is not available from the Civil Aviation Authority’s ATOL scheme.

Customer privacy and protection We fully respect customer privacy and abide by relevant legislation. Our customers’ investments are protected under various voluntary and statutory arrangements, depending on the country where they make the booking. For all holidays sold within EU member states, we comply with the EU Package Travel Directive and provide evidence to customers that their money is protected. Similarly in Canada, in the key markets of Ontario, Quebec and British Columbia, customers receive a refund if a tour operator goes out of business before the holiday; and if customers are already abroad, arrangements are made for the holiday to be completed and transport provided for the journey home.

In the case of unexpected events We are occasionally affected by unexpected events and extreme weather conditions beyond our control. In these situations, we support customers as best we can to minimise disruption to their holiday; in the case of natural disasters, we do our utmost to arrange ﬂights home, medical assistance and food. For example, we supported our customers through the major disruption caused by Iceland’s volcanic ash cloud in 2010, and brought our customers back from Tunisia in 2011, being the ﬁrst major tour operator to withdraw from that country, at a time of severe political unrest.

We regularly practise our emergency procedures and have established a communication and escalation procedure across the Group to ensure we effectively manage signiﬁcant incidents that affect our customers. In any such situation, our priority is to maximise communication with customers to explain how we are helping them.

All our businesses have special assistance teams, trained by our staff and external experts to support our customers, as well as their family and friends, in these unexpected events. We also have teams trained in how to deal with trauma and support logistical, physical and emotional needs. In addition, our airlines contract and retain the services of additional expertise to cover areas outside our Group capabilities.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 26 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Customer Customer health and safety is our top health and safety priority. All our operations are tightly regulated and we aim to minimise health and safety risks, wherever possible. Our airlines meet regulatory safety standards, and hotels, transfers and excursions are audited against internal and industry- preferred practice.

Management approach Our strategy reﬂects best practice from within the organisation while recognising that the variety of products and services we offer are delivered by a large number of independent suppliers, operating in different locations and subject to diverse regulatory regimes and safety standards. The Board, through the Health, Safety and Environmental Committee, oversees our approach to health and safety.

Our health and safety strategy aims for consistency across the Group and is underpinned by the Thomas Cook Group Preferred Practice, which standardises decision-making and reporting processes. Suppliers are informed of the internal preferred practice for resort accommodation, transport to and from destination airports and excursions. We continually improve our processes, for example through the ISO 9001 quality management standard held by the Thomas Cook UK Health and Safety and Quality Assurance departments.

In many cases, the right precautions can significantly reduce health and safety risks. We help our customers look after themselves, their families and their travelling companions by providing information to raise awareness, for example in our brochures, on tickets and flights, and in resorts, as well as promoting Foreign Office travel advice and health information.

We also work with the World Health Organization and the European Centre for Disease Prevention and Control to monitor public health issues and advise customers appropriately. We encourage customers to make safety concerns or incidents known and we investigate them thoroughly to prevent recurrence.

Supplier auditing Thomas Cook Group’s health and safety auditing of customer accommodation, excursion and transport suppliers was outsourced to Argent H&S in May 2012. This approach enables professional auditing of Thomas Cook suppliers by qualiﬁed Argent personnel, to a consistent framework across our destinations, delivering validated management information upon which our health and safety teams can build continuous improvement plans. Other beneﬁts include eficiencies of scale, access for Thomas Cook to a 24/7 resource for response to customer incidents, if needed; and greater capacity for our destination teams to concentrate on customer service, quality and sustainability.

The previously planned Group health and safety database is no longer required as all audit data will be captured and made available through Argent’s information systems.

Training our people Training packages and information relating to our customer health and safety responsibilities are provided to all our employees in our destinations. Due to the recent outsourcing arrangement agreed with Argent H&S, our destination teams are no longer required to audit our suppliers but they still play a vital role in remaining vigilant over health and safety concerns and escalating any known concerns for further investigation. To assist with this and to raise awareness, we provide standard training activities for all our destination teams.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 27 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Employees working with children have relevant qualiﬁcations related to the age of the children Customer they are working with and have passed appropriate assessments, such as the Criminal Records Bureau check in the UK. Our Child Protection Policy raises awareness and guides staff if they health and safety believe a child to be at risk. Our Family World product – properties centred on holidays with children – is implementing Ofsted childcare guidelines within kids’ clubs, which surpass legal requirements in many of our destinations.

Reporting and performance We have worked to achieve greater consistency in our customer incident and illness reporting across our different businesses. This helps us to monitor incidents closely and make health and safety changes where necessary. We investigate incidents thoroughly and do our utmost to educate customers, employees and suppliers on health and safety precautions. Despite this, in rare cases, some incidents unfortunately result in fatalities. Related information More than 23 million customers take their holidays with us, but we deeply regret that 14 of our Our marketplace – data customers lost their lives while on holiday with Group brands in 2012. These were ‘product- related customer fatalities’ – occurring in accommodation contracted by Thomas Cook; on a transfer or excursion sold by Thomas Cook on behalf of the excursion operator; on a Thomas Cook light; or as a result of action by a Thomas Cook employee, a Thomas Cook supplier and/or their employees.

Six of these fatalities were balcony-related, two were pool-related, one was transport-related and ﬁve were other product-related incidents (related to the holiday product but excluding the other categories – such as a fatal slip on an excursion or in a hotel). Did you know? Our airlines in the UK, Germany Every accident is a personal tragedy and our priority and thoughts always go to the families and friends of those who died. and Belgium are accredited to the International Air Transport Association’s In the unfortunate circumstance where a death has occurred, we offer support and assistance to Operational Safety Audit – the benchmark family and friends while remaining sensitive to different needs and preferences of those affected. for aviation safety worldwide. Senior resort staff will provide company and support at any time of day or night and will ensure that guests are looked after until they depart. Our Welfare Team will also contact the next of kin after they have been informed, to offer support and advice.

Our Welfare and in-resort teams work together to ensure that all necessary procedures are put into action, liaising with relevant parties such as the local consulate, the family back home, hospitals, airlines, insurance companies, funeral directors and local police where appropriate.

We also offer customers counselling with a specialist agency experienced in trauma and bereavement, and provide customers with a conﬁdential helpline number that people can call if they wish.

We also ensure that each incident is investigated so we can make appropriate recommendations and take necessary action to continuously improve the safety of our customers. We are focused on preventing recurrence wherever possible, while recognising that not every accident is preventable.

Special assistance We do everything we can to help customers with disabilities, reduced mobility or certain medical conditions have as comfortable a journey as possible, and we offer a wide range of pre-bookable services to meet needs. All UK airline customer-facing staff and third parties who act on our behalf have undertaken training to conform to the Disability Discrimination Act and Disability Equality Training Act. Compliance with this training is monitored and non- conformances reported through the airline’s quality management system. Read more about our Special Assistance services on our website.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 28 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Engaging We promote sustainability ideas and with customers activities and an understanding of on sustainability our destinations at all stages of the customer journey.

Promoting sustainability • Social media, online and printed communications:

– a customer microsite in the UK dedicated to sustainable tourism;

– Thomas Cook UK’s expanding social media presence (156,000 Facebook ‘likes’ and more than 34,000 Twitter followers) helps us to share information and engage our customers;

– Thomas Cook North America’s website has information and a link to raise awareness of the issue of child sex tourism;

– Travelife awards are highlighted in our brochures (see Supply chain management and Travelife); and in the Thomas Cook and Neckermann Reisen branded brochures in Germany, excursions in Cuba and Cambodia are highlighted under the Futouris banner; and

– Thomas Cook UK e-ticketing contains information for customers about responsible tourism including top tips, Travelife and Hatch the Turtle.

• On-board:

– our UK airlines in-ﬂight magazine dedicates articles to sustainability topics, puts a recycling reminder in the magazine’s bar sales pages and prints recycling messages on its meal packaging.

• In our destinations:

– guest welcome meetings and resort packs give information on local culture, customs and language tips; and Thomas Cook Northern Europe includes information about their zero tolerance policy on child sex tourism in their welcome meetings and resort folders;

– Thomas Cook Northern Europe now offers an ‘Environmental Walk’ where guests are invited for a tour around the hotel and surroundings to see the work being done to protect the environment;

– Thomas Cook France has introduced a new botanic walk excursion; and

– working with a new supplier in The Algarve, Thomas Cook UK & Ireland now offers a dolphin-watching excursion designed to protect marine wildlife as well as give our customers a great experience.

Bringing the next generation on board Sunwing resorts has developed a Happy Planet booklet that helps children learn at the same time as they enjoy the drawing and colouring or play the recycling games.

In Mallorca, our regular Palma Aquarium trip has been enhanced with imaginative activities for children including recycling relays and talks about endangered marine animals. During summer 2012, we took over 900 British and 200 German customers to the Aquarium.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 29 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance Engaging Make Holidays with customers Greener on sustainability Now in its third year, we strongly support the Travel Foundation’s Make Holidays Greener annual month-long campaign. In 2012, we reached customers directly through activities in resort, and potentially reached over 15,000 customers with legacy messages. Related information Supply chain management and Travelife Engaging for sustainability Conservation and animal welfare

Some of our resort activities: • Mallorca North: 10 olive trees were planted at the Club Mac hotel and signage was designed and displayed close by to explain the importance of local sourcing. Once the trees are fruit-bearing, after about six years, the olives will be used in the hotel, but in the meantime the Club Mac continues to source its olive oil locally.

• Mallorca South: a beach and underwater clean-up was organised along with TUI and Calvia Council. 800kg of rubbish was collected, the majority of which was glass bottles.

• Kefalonia: six members of the team spent a morning volunteering with a turtle-watching project – they also looked at how they could raise awareness with customers to preserve the nesting habitats.

Through our enthusiastic, dedicated • Tunisia: the Group Entertainments Team made a life-size turtle out of recycled materials with guests, reﬂecting our Hatch the Turtle campaign and the turtle mascot we use in our employees, we want to reach as many children’s clubs. of our customers and suppliers as possible to encourage them to make • Portugal: team members encouraged the Adriana Hotel to put recycling bins in guest rooms, and reps living in the hotel also collected plastic bottles and toilet rolls to hold a recycling day small differences that really add up to on the beach with children. protecting the places we all love to visit.”

Jo Baddeley, Sustainable Destinations Manager, Thomas Cook UK & Ireland

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 30 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Supply chain A sustainable supply chain can lead management and to improved customer experience, Travelife satisfaction and loyalty, and consequently a stronger brand and reputation.

At Thomas Cook, we consider our supply chain an extension of our own business. Our suppliers are the direct providers of goods and services to our customers, such as food and accommodation, transport, excursions and cultural activities.

With this array of services, we have a strong role to play in working closely with suppliers to improve sustainability performance. As many of our suppliers are local to destinations, we can also help to create positive economic impacts for their businesses and communities.

Travelife In 2011, we became the ﬁrst global tour operator to sign up to the Travelife Sustainability System across all our segments. This provides a consistent framework and management tool for Thomas Cook Group and its hoteliers to make progress across our accommodation supply chain.

In December 2012, the Travelife standard for hotels and accommodation earned ‘recognised’ We have hotel groups with properties status in line with the robust requirements of the Global Sustainable Tourism Council, providing even greater assurance that Travelife-awarded hotels are working to deliver more sustainable in many different countries supplying outcomes including preserving the natural environment and contributing to local economies. our various markets, so it makes As a member of Travelife’s Criteria Review Group, Thomas Cook has played an active part in sense that we all use one credible developing the criteria to ensure continual improvements are implemented. system that will drive forward our Upon independent audit of sustainability performance, Travelife awards hotels with either sustainability performance.” a bronze, silver or gold certiﬁcation. Subscribed hotels are assessed on waste and energy management, employee engagement, local procurement and other criteria – enabling them Andrew Cooper, Director of Government and to check their performance and gain advice on areas for improvement. External Affairs Travelife logos are featured on our websites, in brochures and in marketing material, so a potential audience of 23 million customers can now easily recognise those hotels that actively protect and support their local environment and communities.

This year, we have been focusing on:

• improving hotel subscriptions to Travelife, which show a 71% increase in the number of awarded hotels since the previous ﬁnancial year;

• developing an action plan to support our top 500 hotels towards a Travelife subscription and award. This is also a key focus of our Destinations of Excellence programme;

• continuing to train our people and suppliers about Travelife; and

• continuing to play an active role in Travelife’s Criteria Review Group.

Managing ethical, social and Performance data environmental impacts in the supply chain is a strategic imperative for every company operating in today’s 189 globalised world.” hotels with Travelife gold awards (2011: 108) Sören Stöber, Business Manager, Travelife

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 31 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance Supply chain SENTIDO going management and for Travelife gold Travelife Our international brand, SENTIDO Hotels & Resorts, has a distinct culture centred on the idea of treating your senses to a holiday. Good sustainability practices are essential to delivering the brand promise over the long term.

Participation in Travelife has been mandatory for all SENTIDO hotels since June 2011, and SENTIDO set itself the challenging target of having 10 awarded hotels by 2012, with the remainder achieving award status by 2013.

The ﬁrst target has already been exceeded: 13 hotels have already achieved gold and a further The Travelife system gives us a user- three have silver – and SENTIDO continues to work towards its 2013 target. friendly framework and tools for tracking our progress and raising the By subscribing to Travelife, our hoteliers also have an opportunity to showcase initiatives that contribute to our customers’ holiday experience, promote their hotel’s good practice and also bar on our sustainability performance. beneﬁt local communities. We’re committed to playing our part towards a more sustainable future for For example, the SENTIDO Zeynep Resort and Spa in Antalya Turkey had a living wall and green the tourism industry.” roof installed, which has helped to reduce air conditioning requirements in the hotel reception.

Stefanie Berk, They have also held sustainability training sessions that reached over 200 employees; arranged CEO of SENTIDO an ideas exchange between different departments; and developed their ﬁrst sustainability report. SENTIDO in Antalya also designed a rolling presentation for customers, in the hotel reception and rooms, which showcases sustainability topics.

Sustainability and procurement processes We will continue to work with our suppliers and integrate sustainability into our supply chain processes and strategies.

This year, we have: Thomas Cook is leading the industry in its commitment to the Travelife • integrated sustainability criteria into our procurement processes and documentation. For Sustainability System, which is a example, Thomas Cook Airlines Scandinavia sent out questionnaires to all key suppliers to understand how they are managing their environmental impacts. Condor and Thomas Cook certiﬁcation scheme for sustainable Central Europe have a Code of Conduct, containing sustainability criteria for suppliers, which tourism and is inspiring hotels and is provided as a supplement to each contract; and accommodation across the globe to • undertaken training with Group Procurement to raise awareness of sustainability issues. For implement more sustainable processes example, Thomas Cook Germany now sources more sustainable alternatives for products such and practices.” as recycled paper and eco-friendly ofﬁce materials.

Fiona Humphries, Travelife Relationships Manager, ABTA 1st 75% global tour operator to sign up to Travelife increase in Travelife gold awards

Related information Our marketplace – data

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 32 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Our marketplace Customer satisfaction(1)

– data Customers Overall Customers who who would Overall satisfaction would book with recommend us accommodation Year rate (%) us again (%) to a friend (%) score (%) UK & Ireland 2012 81 n/a 53(2) 72 2011 81 n/a 80 74 2010 81 98 95 n/a Germany 2012 69 79.5 77.5 n/a 2011 70 79 79 n/a 2010 75 82 83 n/a Northern Europe 2012 85 75 95.5 84.4 2011 85 70 92 83

2010 n/a n/a n/a n/a North America 2012 80 90 36 76 2011 91 91 36 79 Data in this section 2010 92 92 36 78

Customer satisfaction (1) Questions and scoring methods vary across the Group, so like-for-like comparisons cannot be made between business segments. (2) In 2012, Thomas Cook UK & Ireland adopted a new metric that recognises positive endorsement from customers. This measures the percentage of customers rating us at 9 or 10 in response to the survey question. Hotels with Travelife awards Product-related fatalities

Hotels with Travelife awards

2010 2011 2012

189

Gold 2010 2011 2012 Silver Gold Bronze 51108 108 189 Silver 18 15 29 Bronze 51 7 10 10 1029 10 18 7 15

Our decision to subscribe to Travelife at Group level, as well as our continual promotion and support of the scheme, has resulted in a signiﬁcant increase of 71% for hotels with awards in 2012. We have an ambitious target of 1,500 Travelife awarded hotels by 2020.

Product-related fatalities (reporting period: 1 January–30 September 2012(1))

Balcony-related Pool-related Transport- Other product- Total product- Category fatalities fatalities related fatalities related fatalities related fatalities 2012 6 2 1 5 14 2011 3 3 0 6 12 2010 1 2 0 4 7 2009 2 2 0 12 16

(1) Due to the timing of this report we are only able to provide nine months’ data (January to September) in the current year. For comparison purposes, previous years’ data is also January to September.

With great regret, we report 14 product-related fatalities involving our customers in 2012. Product-related incidents are those that occur: in accommodation contracted by Thomas Cook; on a transfer or excursion sold by Thomas Cook on behalf of the excursion operator; on a Thomas Cook ﬂight; or as a result of action by a Thomas Cook employee or Thomas Cook supplier. For further details, including our efforts to prevent accidents, see Customer health and safety.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 33 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

We are committed to reducing our environmental impacts by protecting the resources and natural environment our 3 communities and our business depend Our on, as well as safeguarding wildlife, environment animal welfare and biodiversity.

Key highlights 72.8g CO2 per revenue passenger kilometre aircraft emissions – among the lowest in the industry 71% waste recycled

Implementing a cloud-based data reporting system to improve data accuracy and analysis

Reducing weight on board Thomas Cook Airlines Scandinavia is planning to invest in lightweight service trolleys in 2013, saving around 60kg weight per flight. Across the fleet this will generate carbon savings of 280 tonnes per year. Reducing weight also reduces costs (research shows that 1kg of extra weight on board can cost an airline up to £1,500 per year depending on the fleet).

Read more: Destination communities.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 78 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Supporting our Across our destinations and the home communities communities where we operate, our support includes fundraising, corporate giving, staff time and resource, volunteering and in-kind donations. We also contribute to disaster and emergency relief efforts.

Our strategy is set at Group level, then locally implemented to ensure we target our approach and support to the needs of local communities and employees.

We concentrate our activities in three main areas: children and education, health, and environment. For example:

Children and education – in Sweden, we support Mentor Sweden, a charity promoting health and preventing drug abuse among young people. We had ﬁve volunteers mentoring these young people during 2012.

Health – in the UK, Thomas Cook Children’s Charity partnered with Sport England to leave a lasting legacy after the London Olympic Games. We have funded a variety of local sports clubs to help improve facilities and encourage more young people into sport.

In Germany, Condor has a strong partnership with Wings of Help, an aid organisation that ﬂies medicines to sick children around the world, and ﬂies sick children to hospitals in other countries when local help is unavailable.

Environment – in Mexico, Thomas Cook resort staff have been supporting a project that seeks to conserve the threatened Melipona Bee and enable the local population of Mayan women to beneﬁt from selling honey and related products to visiting tourists.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 79 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Measuring our Thomas Cook Group is a member of involvement the London Benchmarking Group (LBG). The LBG model is widely regarded as the international standard for assessing and reporting the value of corporate community investment.

Related information It deﬁnes four types of cost to a company in making community contributions: Supporting our communities • cash; Our communities – data • time; • in-kind: of product, property or services; and • management: programme staff salaries, beneits/overheads, and research and communications.

The LBG model enables us to track our community activities and measure outcomes on a consistent basis. It is also invaluable in assessing the impacts of our activities by capturing the value of our activity within deﬁned areas. This will help us decide where best to focus our resources to support the communities we operate in, as well as calculating our true business contributions and clarifying how those are best used.

We are focused on incorporating elements of the LBG model across different parts of our business, so that we can more easily identify the contribution and value we are creating in our community and charitable activities.

Performance data £3,018,608 total community investment

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 80 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Charitable giving and Thomas Cook has a strong tradition volunteering of charitable giving and fundraising, dating back to our founder who was a passionate philanthropist.

Through a mixture of donations and fundraising activities, we continue to support charities and local community projects. Group-wide cash donations totalled £3,018,608 for the year.

Thomas Cook Central Europe has donated €100,000 to inance the construction of a school in Northern Sri Lanka. After the civil war, which burdened Sri Lanka for decades, the majority of schools were destroyed, and if classes were held at all they were outdoors. With the aid of this donation, four classrooms and an ofﬁce for the teachers will be built. Construction started in September 2012 and the project will enable about 300 Sri Lankan children to attend a school, thus enhancing their opportunities for the future.

The Thomas Cook Children’s Charity The Thomas Cook Children’s Charity was established in 2009 with the aim of making dreams come true for sick or disadvantaged children. Thomas Cook UK pays for the charity’s running costs, so all donations go directly to the children. We offer customers the opportunity to donate when they book a holiday and we also collect unwanted coins in store and on return ﬂights to the UK with our airline.

To date, customers and employees of Thomas Cook UK have raised over £3.7 million for the Charity. In 2012, the amount raised from customer donations totalled £1,030,945.

Helping children in the UK Thomas Cook Children’s Charity has continued to work with charity partner Happy Days to ensure that more than 10,000 children suffering from severe illnesses and disabilities can have fun on a day trip or holiday or at a pantomime. And through our three-year partnership with Lifelites, state-of-the-art touchscreen computers and light simulator software have been installed into more than 25 children’s hospices, giving children whose lives are limited a chance to escape from their conditions and fly a virtual plane. Many other children across the UK are also proud owners of specialist equipment installed at home that the Thomas Cook Children’s Charity has helped to provide. The Charity has also teamed up with Together for Short Lives to refurbish each of the 44 children’s hospices around the UK. More than 30 community sports facilities in disadvantaged areas across England have received new equipment. This equipment has been provided as part of Sport England’s Inspired Facilities programme – the legacy programme for the 2012 Olympic and Paralympic Games. The Children’s Charity was delighted to be appointed as Sport England’s first official partner for this programme and throughout 2013 even more facilities will also benefit. Work also continues with the NHS and our most recent project, the refurbishment of the paediatric hydrotherapy unit, was opened recently by our Patron Antony Cotton (Sean Tully from Coronation Street).

Helping children in other countries The Thomas Cook Children’s Charity is helping children outside the UK too – funds have purchased minibuses in Mallorca and Goa, and built rooms at an orphanage in Bulgaria to enable the children to gain important skills to enable them to gain work in their local communities. It has supported the work of Just a Drop, which provides safe water to reduce child mortality in developing countries. The Charity has committed £25,000 a year for three years to Just a Drop projects. Nick Sandham from the Thomas Cook UK press ofﬁce visited Uganda to see how this funding is making a difference. “The reality and impact of what can be achieved is staggering and will stay with me”, says Nick.

For more information about the Thomas Cook Children’s Charity please visit our website www.thomascookchildrenscharity.com

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 81 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance Charitable giving and Nick’s story – hope volunteering springs eternal

In October 2012, PR Manager Nick Sandham visited Uganda to see how a three-year funding programme for clean water charity Just a Drop was making a huge difference in people’s everyday lives. Here he tells about one of his visits to a local school.

Related information Home communities Destination communities Our communities – data

The Hope Children’s Centre was one of the ﬁrst Just a Drop projects funded by the Thomas Cook Children’s Charity. It’s one of the best schools in the area, with 538 pupils, including 180 orphans who live there – most having lost their parents through AIDS.

The project involved setting up a clean water system that pumps water uphill from a spring to a 30,000 litre water tower, which then in turn feeds a network of taps around the site giving clean water for drinking, cooking and washing. The Director and Head took us around the school; we saw the dorms, said hello to the kids in classes, visited the pump house and water tower, and learnt how it’s changed their lives.

If you closed your eyes, you could have been in any school, anywhere. The hubbub of children chattering, running, shouting, playing – you know the sound. Before the project was in place, the school relied on children collecting water on their way to school – or in the case of boarders, getting up at 5am. Sickness was rife, with 40 to 50 cases of malaria a week.

Hope is not just the name. There is real hope here. The school leads education in the area; the children are respectful, smart and polite, and the teaching staff dedicated to do the best for them.

Our customers’ donations are making a real difference – as are our colleagues’ fundraising efforts. In the end it comes down to this – the solutions for clean water to the communities we visited are very straightforward, our combined charities are doing some fantastic work, and we really are saving and changing lives.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 82 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance Charitable giving and London Olympic Games – volunteering leaving a legacy

Thomas Cook UK & Ireland was the ofﬁcial provider of short breaks to the London 2012 Olympic and Paralympic Games. After a wonderful summer of sport, we are working hard to ensure a lasting legacy – including the following projects:

National Junior Games – WheelPower/National Disability Sports In 2012, the Thomas Cook Children’s Charity committed £25,000 a year for three years to fund the National Junior Games delivered by WheelPower and National Disability Sports. The programme provides opportunities for recreational and competitive wheelchair sport – and aims to generate a positive effect by focusing on what the children can do and not what they can’t. The Games took place at Stoke Mandeville Stadium and around 200 disabled children aged 11 to 18 took part.

Inspired Facilities – Sport England The Thomas Cook Children’s Charity became Sport England’s ﬁrst partner in supporting Inspired Facilities, a programme that aims to improve facilities and get young people involved in sport. Thomas Cook Children’s Charity awarded over £100,000 to sports clubs and organisations around the UK during 2012.

For instance, Dunston & Teams Amateur Boxing Club in Gateshead successfully applied for £10,000 towards new equipment and to improve its facilities. The Club operates in a disadvantaged area with a large and diverse population and provides sporting and social skills training aimed at tackling exclusion and other risks facing young people in the area. Maxine Harper, Charitable Operations Manager, Thomas Cook Children’s Charity, said: “We’ve been overwhelmed with the number of grant applications – it really does show that there is amazing work being done by volunteers in sports clubs up and down the country.”

See Home communities and Destination communities for more examples of our charitable giving from across the world.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 83 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Volunteering Charitable giving and The rate of volunteering was signiﬁcantly lower in 2012, reﬂecting a reduced focus on volunteering activities and the challenging economic climate. See examples of volunteering our people’s efforts in Home communities, and for our employee volunteering hours, see Our communities – data.

Supporting our communities is about much more than donating ﬁnancially. We encourage our people Performance data to get involved in activities not only to beneﬁt local communities, but also so they can develop new skills.” 790 Andrew Cooper, Director of Government and hours volunteered External Affairs

Looking forward, we will be launching a volunteering policy for the UK business to encourage more employee participation. Employees will be able to take unpaid leave during working hours to participate in community activities in line with our corporate strategy. Thomas Cook Germany is also piloting a volunteering scheme with the Executive Management Team.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 84 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Home communities Our home communities are those local to our ofﬁces and retail stores across the Group.

Our segments decide the community groups and charities they work with, and the support offered includes volunteering time and skills, charitable giving and gifts in kind. For our business, the beneﬁts include increased employee motivation and enhanced reputation.

Snapshots from around the world Related information North America Our communities – data Thomas Cook North America is a proud supporter of the Starlight Children’s Foundation, a non- profit organisation that improves the lives of children with serious illnesses and injuries, and has worked closely with the Foundation on initiatives including: • annual Search for Santa flight, which hosts a group of children and their families; and • providing flights and accommodation for a young country music fan – and three times cancer survivor – and his mother, to the Canadian Country Music Association Awards.

Our employees also volunteered on the Canadian environmental programme, Clean Up the Shorelines.

Northern Europe The community work of our Swedish brand Ving includes:

• supporting a charity called Mentor since 2007, which reaches out to thousands of young people every year. Several employees have been involved during this period, and in 2012, five colleagues mentored a group of 13 to 17 year olds, to help inspire their future direction and careers; and • supporting the work of the Great Day Foundation to provide wonderful vacations abroad for severely ill children and their families. Did you know? UK Five employees from Thomas Our UK airline has a strong tradition of community involvement and projects supported by Cook Northern Europe airline employees this year near our base in Manchester have included: mentored a group of young • working with Lorna Lodge, a housing association for young mothers, to redecorate a room in one of the resident’s flats to give her a boost during a very difficult period when her baby was people to help with their undergoing intensive medical treatment, and also to hold an open session for the residents at future careers. which we showcased potential careers in our industry; • encouraging young readers by running a campaign internally to collect and donate children’s books to Newall Green Primary School; • collecting and donating good-quality household goods for re-sale at the Tree of Life centre in Wythenshawe, which provides valuable support to vulnerable people in the community; and • raising aspirations and inspiring future careers in aviation and tourism, by holding sessions for sixth-form students at Manchester Enterprise Academy, delivered by one of our Cabin Managers.

Germany Condor has a strong partnership with Wings of Help, an aid organisation that ﬂies medicines to sick children around the world, and ﬂies sick children to hospitals in other countries when local help is unavailable.

Condor also takes part in regular community activities every year. This includes annual support for projects in Frankfurt from the Company’s most senior managers. In June 2012, 40 members of senior management took part hands-on, to build a new playground for local children.

Another annual event is when children from children’s homes around Oberursel are invited to put a wish on the Christmas tree, and employees then put the present under the tree. Around 100 children’s wishes come true in this way every year.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 85 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Destination Local communities in holiday destinations communities form part of the experience we offer to our customers. We endeavour to manage the impacts of tourism on the destination’s economy, culture and environment, in a way that beneﬁts both local people and our customers.

Our approach is based on genuine collaboration, including:

• building strong grassroots links with local governments and communities;

• encouraging our accommodation and excursion providers to procure local goods and services wherever possible; and

• supporting projects that enhance and preserve environments, cultures and quality of life, by partnering with local stakeholders, NGOs and industry organisations.

Snapshots from around the world

Promoting local produce in Turkey Since 2010, Thomas Cook UK & Ireland has worked with The Travel Foundation, TUI UK & Ireland and Co-operative Travel to pioneer a ﬁve-year ‘Taste of Fethiye’ project in Turkey, which aims to improve the livelihoods of local smallholders by promoting local produce, encouraging organic practices and highlighting the beneﬁts of hotels buying local produce.

In 2012, the project grew to include 22 farmers who provided over 400 tonnes of produce, 19% of which has gone to the hotel market. Over 32 food events were held to promote the scheme to customers and a new driving route was developed and distributed to 750 car hire customers to encourage tourists to visit the surrounding area and buy locally produced food products.

For 2013, the plans are to engage at least three more small-to-medium hotels and one large hotel, and to hold more food events.

Community development in Thailand Since 2005, Thomas Cook Northern Europe has been involved in community development activities in Phuket and Southern Thailand, which are important destinations for us.

In 2011, in conjunction with Siam Safari, a local company that we use for tours in Phuket, Thomas Cook Airlines Scandinavia and Spies funded the construction of a new library at a local school in Khao Sok National Park in Southern Thailand. The previous library was made of wood and its location in the rainforest meant that the building decayed and books were destroyed by water. The library was inaugurated in April 2012, at a ceremony attended by the 150 children and 10 teachers.

In 2012, our support continued with a donation of ofﬁce supplies, computers and further funds raised. The six computers, which would otherwise have been decommissioned, were upgraded and given to the school to help the children’s computer literacy and learning.

Supporting Gambian craft producers Thomas Cook UK & Ireland has been working with The Travel Foundation since November 2011 to create business opportunities for talented craft producers who lacked access to tourists. Previously, some of the producers hawked their goods on beaches, often resulting in poor sales and hassle for the tourists.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 86 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

This project has worked with 15 skilled local arts and craft producers to develop authentic, Destination high-quality, sustainably sourced souvenirs. The producers were given skills training in business, mathematics and product development and access to small loans to enable them to ﬁnance communities their business and purchase start-up materials. Design specialists from the UK helped with product development and continued to advise participants in the project.

A catalogue was produced, with 85 products included for the winter 2011/12 season. Fixed pricing was introduced to ensure the producers were fairly paid and that customers did not inadvertently pay a lower price than the product cost to produce.

Two hotel souvenir shops featured Guaranteed Gambian products as part of a pilot from February to April 2012. Sales generated over £1,150 for the producers during this time and gave us an opportunity to test products with the tourists. For winter 2012/13, the plans are to increase the catalogue, identify two or three more producers to join the brand, and expand sales outlets to further hotels.

This project has dramatically changed the lives of many of the producers. One producer has been able to extend his family house, send his nephew to school and provide employment for Guaranteed Gambian has been his family, as well as increase his sense of self-respect.

successful in many ways. It has Supporting vulnerable and displaced people in Senegal brought increased economic beneﬁt Thomas Cook France has been supporting a range of community projects in Senegal that aim to local people who have never been to protect and care for children and young people who are at risk, including transporting goods afforded an opportunity to showcase donated to the charities free of charge. their talent and it has engaged One of the organisations supported by Thomas Cook is the Mbour Nursery, which provides a customers with the producers’ life caring home for very young orphan children and children who have been deprived of their mothers. The nursery provides full care throughout the ﬁrst year of life and more than 430 stories. The ultimate goal is for children have been welcomed to the nursery since 2002. Guaranteed Gambian to become a business in its own right and for it to Thomas Cook France also supports Acceuil Grande Enfance, a centre for street children, and Vivre Ensemble Madesahal, an NGO that provides a variety of services including helping vulnerable be managed locally.” and displaced people with food and medical care. Jo Baddeley, Sustainable Destinations Manager

Related information Engaging with customers on sustainability Waste Conservation and animal welfare

Did you know? The Taste of Fethiye project includes 22 farmers who have provided over 400 tonnes of produce, 19% of which has gone to the hotel market.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 87 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Child protection The tourism industry has an important role to play in tackling the challenges of child protection.

At Thomas Cook Group, we are fully committed to the UN Convention on the Rights of the Child, which states that all children have the right to be protected from being hurt or mistreated, in body or in mind.

We are also committed to raising awareness among our employees and all our stakeholders, ensuring they are suitably informed and trained to act effectively when child safety may be Related information at risk. Destination communities Child trafﬁcking and prostitution have risen with the growth of the internet and more people travelling overseas. To help address the issues and to bring together the different levels of child protection policy and action around the Group, we created a Group Child Protection Policy covering every child everywhere. Child protection cannot be achieved by one organisation alone and, in 2012, we also signed up as a Group to industry-wide commitments known as The Code (see following page).

Our actions in 2012 included the following:

Employee training • In partnership with the UK Border Agency, we developed and piloted an e-module for airline employees to raise awareness of child trafﬁcking. This was delivered to cabin crew at Thomas Cook Airlines UK, and we aim to include it in the training part of our new entrant programmes with a view to it becoming compulsory for all Airline customer-facing employees.

• In a report from the Metropolitan Police, concerns were expressed about the potential increase in human trafficking, including children, during major international events such as the Olympic Games and the World Cup. Similar concerns were echoed by ECPAT (End Child Prostitution, Pornography and Trafficking) and a number of other NGOs and governmental bodies. As partners in the London 2012 Olympic Games and providing hosts for incoming visitors to the Games, Thomas Cook UK took the decision to proactively address this potential threat by developing an information pack for our employees who were working as hosts for the Olympic Games, so that they could be aware of the issue, recognise any signs and know what action to take. This was done in partnership with ECPAT and the UK Border Agency, with graphics supplied by stopthetraffik.org.

• Our Children’s Club reps in our resorts overseas receive speciﬁc training on child safeguarding.

Supplier contracts • We have added a clause into UK and Central Europe contracts with accommodation suppliers to require them to take all reasonable steps to ensure that no sexual or other exploitation of Thomas Cook’s work with ECPAT over children takes place at their establishment. Training of employees should also take place to the last decade and our signing of ensure they are aware that exploitation of children is illegal and will not be tolerated. the industry-wide Code reinforce our Customer advice and awareness firm commitment to combat child • In the UK, we inserted a paragraph into e-ticket packs and our customer website, which makes trafficking and prostitution.” it clear that child sex tourism is a criminal offence, explains how to report an incident, and then gives full phone numbers for Crimestoppers and ECPAT. Marten Totterman, Quality and Operations, Thomas Cook Northern Europe • In the in-flight magazine for customers of Thomas Cook Airlines UK, we published an article on the issues in order to raise understanding and awareness.

• In North America, the customer website has information and links about preventing child sex tourism.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 88 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance Child protection Child protection across the tourism industry

As a group, we have signed up to The Code – an industry-driven code of conduct for the protection of children from sexual exploitation in travel and tourism. Thomas Cook Northern Europe and Thomas Cook Germany have been signatories to The Code since 1999 and 2011 respectively. Signatories commit to meeting six criteria:

Working with ECPAT, we produced a 1. To establish an ethical policy regarding commercial sexual exploitation of children. child protection information pack for 2. To train the personnel in the country of origin and travel destinations. our employees who acted as London 3. To introduce a clause into contracts with suppliers, stating a common repudiation of commercial sexual exploitation of children. Olympics hosts to our guests, to raise 4. To provide information to travellers by whatever means possible, e.g. catalogues, brochures, awareness of possible instances and in-ﬂight ﬁlms, ticket slips, websites. what action to take. 5. To provide information to key local people in destinations. 6. To report annually on progress.

Over the next year, we will work to fulfil the above criteria. In developing the tools necessary to help us achieve our goals and raise awareness, we will collaborate with industry and non-profit organisations such as ECPAT International (End Child Prostitution, Pornography and Trafficking), with which our companies in Northern Europe and Germany already have a strong relationship. We will also collaborate with governmental agencies, such as the UK Border Agency.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 89 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

In January 2011, Thomas Cook joined the London Benchmarking Group (LBG), which enabled Our communities us to embed a process by which all our community engagement activity can be tracked and – data outcomes measured on a consistent basis. Detailed below are the key outputs from all the activities the Company and its employees have undertaken during 2011/12.

Notes for all data: all data is calculated using LBG methodology. Currency exchange rates are calculated using the average rates for the ﬁnancial year.

Employee volunteering(1)

2010/11 2011/12 Hours 3,534 790 Volunteers 206 113 Value £68,619 £13,037

Data in this section (1) UK, North America, Northern Europe, Belgium. Compared to the previous year, volunteering hours reduced by 77% and the number of Employee volunteering employees volunteering fell by 45%. This reﬂects a reduced focus on voluntary activities against a Total community investment by Thomas backdrop of challenging economic conditions and employment uncertainty. Cook Group Motivation Total community investment by Thomas Cook Group Focus of spend Cash donations by segment 2010/11 2011/12 In-kind donations by segment Value of cash contributions £186,057 £1,509,365 Staff volunteering £68,619 £13,037 In-kind contributions £210,866 £1,340,977 Management costs(1) £243,448 £155,229 Total value of community support £708,990 £3,018,608

(1) Running and administration costs of the UK’s Thomas Cook Children’s Charity.

The total value of community support shows a three-fold increase compared to 2010/11. This is due to more comprehensive data gathering on charity and community activities across our business segments.

Motivation

2010/11 2011/12 Commercial initiative £12,574 £2,903 Charitable gift £280,587 £1,551,035 Community investment £172,381 £1,296,404

The main investment has been in charitable giving. This included signiﬁcant donations from the UK towards the children’s charities Together for Short Lives and Lifelites; and Thomas Cook Germany donated approximately £50,000 to the international charity Welthungerlife, which combats poverty, hunger and disease around the world.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 90 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Our communities Focus of spend – data 2010/11 2011/12 Education and young people £44,604 £1,301,183 Health £83,825 £902,634 Economic development £64,813 £1,458 Environment £50,346 £25,663 Social welfare £42,581 £143,138 Emergency relief £140,108 £34,357 Other £39,264 £441,909

Cash donations by segment

2010/11 2011/12 UK(1) £36,294 £1,271,050 Central Europe(2) £51,083 £144,369 Condor £6,919 £81,863 North America £20,211 £14,085 Northern Europe £19,659 £28,000 West & East Europe £51,892 Not reported

(1) UK, Ireland. (2) Germany only.

In-kind donations by segment

2010/11 2011/12 UK(1) £321,685 £1,025,807 Central Europe(2) £1,989 £1,529 Condor £163,892 £222,143 North America £33,335 £27,059 Northern Europe £692 £4,440 West & East Europe(3) £1,341 £60,000

(1) UK, Ireland, UK Airline. (2) Germany only. (3) Belgium only.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 91 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

We are committed to continually improving our sustainability performance. In this section, you 6 will see our approach to reporting Our and performance against our targets. performance

Targets and performance See our annual performance against our 2020 targets.

GRI index We have aligned this report with the Global Reporting Initiative (GRI) Sustainability Reporting guidelines. The GRI index shows the indicators that we have reported against.

See About our reporting.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 92 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

About our reporting This is Thomas Cook Group’s sixth annual Sustainability Report, covering performance in 2012. Our previous report was published in March 2011.

We produce our report for our key stakeholders and investors – see Stakeholder engagement.

The report covers the Thomas Cook Group in full. However, there are exceptions where Related information information or data is not available from every part of the business. We have included notes to the data to explain which parts of the business are excluded from any data set. Data Our previous reports included in this report relates to our ﬁnancial year 1 October 2011 to 30 September 2012, unless otherwise speciﬁed.

The report addresses the full range of economic, environmental and social impacts of Thomas Cook Group, and includes information and data covering the major businesses in the Group. Thomas Cook UK features more prominently than other parts of the business partly because it employs approximately half our staff and partly because Thomas Cook Group is a UK-listed company. We are continuing to implement Group-wide sustainability and data management systems in order to improve reporting across all our businesses in the future.

The joint venture and associates are not included in the report. We do not report on these as we do not hold majority ownership.

The report is not independently assured.

GRI index We continue to be informed by the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting guidelines. We have self-assessed this report against the GRI guidelines and consider it to be aligned with the application level B.

View our GRI index for the indicators we have reported against.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 93 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Targets and We have set ourselves ambitious performance sustainability aims for 2020, which focus on adding value, managing key issues and risks and contributing to the Group’s success over the long term.

The table below demonstrates our annual journey towards our 2020 targets.

Unless otherwise speciﬁed, data included in this report relates to our ﬁnancial years, which run from 1 October to 30 September. Where we talk about 2012, we refer to the period from 1 October 2011 to 30 September 2012.

This report therefore covers those parts of the business for which we were able to gather information; this varies for each data set, so we have included notes with our data to explain which parts of the business are excluded. Our environment Business unit Airline Target Group airlines to make 12% improvement in efficiency by 2020, against a 2008 baseline. 2012 progress Improved fuel efficiencies by 1.27% from the previous financial year through continued fuel efficiency savings e.g. implemented lighter weight items. Aircraft emissions Target 100% in-light meal service products to be made from recyclable/ biodegradable materials by 2020. 2012 progress Group airlines have reviewed catering contracts in place to benchmark the current situation. Waste Target Zero in-flight waste to landfill at base airports by 2020. 2012 progress Engaged with all base airports to ensure a recycling infrastructure is available. Waste Target Increase the number of destination airports that recycle at overseas stations by 2020. 2012 progress Group airlines conducted a mapping exercise to assess waste conditions at all destination airports to which we operate. All handling agents and cleaning partners have been surveyed and the results are being analysed. Waste

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 94 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Targets and Our environment Business unit Offices and retail performance Target Reduce energy consumption by 20% by 2020, against a 2010 baseline. 2012 progress Electricity consumption has risen from the 2010 baseline by 3% due to the UK retail business gaining 400 stores as a result of the joint venture with Co-operative Travel. Continued energy efficiency projects. Condor has relocated to a LEED-accredited ofice building, which has a 30% lower energy consumption than an average building. Energy and business travel Target 20% electricity to come from renewable sources by 2020. 2012 progress In 2012, we used 90.4m kWh electricity. Of that, 40% was purchased from renewable sources. Many segments have reviewed electricity contracts to ensure renewable energy is purchased, for example over 90% of the UK’s electricity consumption comes from renewable sources. Energy and business travel Target Zero head office waste to landfill by 2020. 2012 progress All head offices in the source markets have set up recycling programmes. Waste Target 100% paper purchased from recycled/certiied sustainable sources by 2020. 2012 progress In 2012, we sourced 63% of our total paper purchased from sustainable sources, which included 97% of our office paper and 50% of our brochure paper. Reviewed contracts with Group Procurement. Thomas Cook Northern Europe uses EU-Flower-labelled paper, which is chlorine-free as well as PEFC labelled. Resource use Target Reduce paper usage by 20% by 2020, against a 2010 baseline. 2012 progress Paper usage has been reduced by 24% since 2010. Continually reviewing paper-intensive processes, with the aim of reducing where possible, e.g. Group Airlines have implemented paperless cockpits and the Board and Committee papers are distributed and viewed via an electronic portal. Thomas Cook North America has ensured all their multi-functional print devices are defaulted to double-sided print. Resource use Target Each Thomas Cook source market head office will achieve environmental certification by 2020. 2012 progress Thomas Cook Germany head office achieved the Eco-Profit accreditation in 2012. Environmental management Target Introduce an internal carbon charge for all business travel emissions by 2015. 2012 progress Researching methodologies into how this can be achieved across the Group. Energy and business travel

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 95 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Targets and Our environment: priorities for 2012/13 • Our Group Airlines will continue to improve fuel eficiencies across the leets through operational efficiencies, light-weight on-board items and continual engagement of performance the pilot community. • Group Airlines to set a plan to inluence key suppliers in sourcing of materials for in-flight meals. • Group Airlines to continue data analysis of waste provision at destination airports. • Continue to engage with employees on energy eficiencies. Thomas Cook Germany will publish guidelines on energy savings on their intranet and Thomas Cook UK & Ireland has set a target to reduce electricity consumption by 10% compared to the previous financial year. • Thomas Cook UK & Ireland has committed to implement a ‘ban the bin’ programme to further increase recycling rates in offices. • To reduce paper consumption, Thomas Cook Germany will be publishing guidance for saving paper to employees via the intranet and Thomas Cook Northern Europe will replace printed welcome letters with electronic versions. • Thomas Cook UK & Ireland has committed to achieve a green level award in Investors in the Environment at its head office in Peterborough.

Our marketplace Section Customers Target To have sustainability messages in all appropriate customer- facing materials, including brochures, newsletters, websites and resort guides, across all brands by 2014. 2012 progress Travelife logos are now featured in all source market brochures. Also Condor promotes its ConTribute programme wherever possible, for example in brochures, emails, newsletters and press releases. They also have their own sub-page on the main website. Target To communicate sustainability messages to 1.5 million children travelling with us by 2020. 2012 progress Trained our Children’s Club representatives in sustainability. They looked after 70,000 children in 2012. Engaging with customers on sustainability Target To achieve an average score of very good/excellent on customer feedback questionnaires for our sustainable performance by 2020. 2012 progress Introduced a question on the UK customer feedback questionnaire to allow customers to comment on our sustainability performance. In summer 2012 season, 91% of Thomas Cook UK & Ireland customers rated our sustainability performance as ‘Good’ or ‘Excellent’. Customer satisfaction

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 96 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Targets and Our marketplace Section Supply chain performance Target At least 1,500 Group suppliers of accommodation to have Travelife awards by 2020. 2012 progress 228 hotels have achieved a Travelife award, an increase of 71% on the previous financial year. Supply chain management and Travelife Target All Group-owned/controlled hotels to have a Travelife Gold award by 2020. 2012 progress All Sunwing hotels, part of the Thomas Cook Northern Europe segment, now have a gold Travelife award. Supply chain management and Travelife Target All tour operator overseas agents in mainstream destinations to have a Travelife award/similar certiication by 2020. 2012 progress The UK business partnered with ABTA on a ground agents work-stream project. This will benchmark current sustainability activities and share best practice across all ground agents. Also Thomas Cook Germany initiated a ‘Climate Shuffle’ project with Futouris. Supply chain management and Travelife Target Incorporate sustainability criteria into all procurement processes by 2015. 2012 progress Commenced an education programme with Group Procurement to improve awareness of responsible purchasing practices. Segments also include sustainability information in procurement documentation, for example Condor and Central Europe have a code of conduct that is attached to every contract. Supply chain management and Travelife Target Top 500 Group accommodation suppliers, by passenger volume, to manage and significantly reduce water usage by 2020. 2012 progress Conducted a water audit in a SENTIDO and Sunwing property to highlight best practices for conserving water. We have also identified our Top 350 accommodation suppliers. Resource use

Our marketplace: priorities for 2012/13 • Continue to promote the Travelife Sustainability System with our contracted hotels. For example Thomas Cook UK & Ireland aims to engage a further 200 hotels to achieve an award and Thomas Cook Germany will encourage its top 400 hotels to achieve an award. We will also improve external communications about Travelife awards. • Continue to work with our owned/controlled hotels, for example 50% of Thomas Cook UK & Ireland and Neilson Beachplus hotels will be working towards achieving a Travelife award. • To encourage management and reduction of water usage by our accommodation suppliers, we will identify a standard methodology and approach. • We will continue to promote sustainability to our customers, for example Thomas Cook Germany will include sustainability at a strategic level with Marketing and PR. • We will look to improve our sustainability communications with children through our Group Destination Management teams. • We will continue to measure how customers view our sustainability performance through the customer feedback questionnaire. Where segments are not measuring this already a question will be introduced into their customer feedback questionnaire.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 97 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Targets and Our people Target Sustainability/environment to be a measurable objective of performance segment Boards and above by 2013. 2012 progress Strategic review to be undertaken by the new CEO, which forms part of the strategic review. Group CEO statement Target To incorporate sustainability into Company values by 2014. 2012 progress Developing a Group Code of Conduct, of which sustainability is a part. Ethics Target 100% of employees in the Group to have undergone training in sustainability by 2015. 2012 progress Sustainability is featured across all segment employee communications. Thomas Cook Germany organised a sustainability day at their head office and trained at least five head-office departments and destination teams on sustainability. Engaging for sustainability Target To have an average score of ‘excellent’ on employee engagement surveys for business performance and commitment to sustainability by 2020. 2012 progress Amended the question in the employee engagement survey to enable this target to be measured. Employee engagement Our people: priorities for 2012/13 • We will work with the Remuneration Committee to assess the best methodology for introducing sustainability KPIs. • We will roll out the Group Code of Conduct across the business to ensure sustainability is incorporated into the Company culture and values. • We will continue to train and engage with employees on sustainability. For example Thomas Cook France employees will undertake training on child trafficking with ECPAT. Thomas Cook Northern Europe and UK & Ireland will be refreshing their online training packages.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 98 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Targets and Our communities Target Develop and implement a child protection policy for the Group performance and all segments by 2013. 2012 progress A Group policy was documented and launched in 2011. Child protection Target Prioritise local sourcing of food and beverages at all Group-owned hotels by 2014. 2012 progress This is a Travelife award criteria, which all Group-owned hotels have either achieved, or are working towards. Supply chain management and Travelife Target All segments to implement a charitable strategy for home and destination communities by 2014. 2012 progress A Group charitable strategy has been developed that reﬁnes and gives focus to our charitable giving activities. This needs to be agreed by the business. Supporting our communities Target Measure and improve the contribution our holidays bring to communities and the local economy by 2020. 2012 progress Developing a project proposal, together with a university, to investigate how best to measure this target. Measuring our involvement

Our communities: priorities for 2012/13 • Further implement the Group Child Protection Policy, for example Thomas Cook Germany will integrate information on ECPAT into their destination activities. • To further encourage local sourcing of food and beverages by Group-owned and controlled hotels, as a Group we will agree the deﬁnition of ‘local’ and the evidence required to demonstrate this. We will also benchmark the current levels of local procurement and deﬁne a policy to ensure it is given consistent consideration in all destinations. • We will continue to implement charitable activities across our home and destination communities. Thomas Cook UK & Ireland will launch an employee volunteering policy to encourage employees to volunteer in their local communities. • We will initiate a project to deine a methodology for measuring our impact on destination communities and their economies. Through the Group Destination Management ‘Destinations of Excellence’ project we will capture data from our excursions to understand this impact.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 99 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Contact us We welcome feedback on this report and on our approach to sustainability more generally. Email: [email protected]

Post: Sustainability Team Thomas Cook Group plc 6th Floor South Brettenham House Lancaster Place London WC2E 7EN

For customer service queries, please refer to Thomas Cook Group website.

Meet our Sustainability Team Andrew Cooper, Director of Government and External Affairs Andrew joined Thomas Cook Group in 2009 to manage the Company’s relations with external organisations. These include governments and industry associations as well as sustainability bodies.

Andrew brings a wealth of legal and travel experience to the role. His previous positions include Director General of the UK Federation of Tour Operators (FTO) and the International Federation of Tour Operations, as well as Head of Legal Services for MyTravel UK.

Jo Baddeley, Sustainable Destinations Manager Jo started her travel career as an overseas representative, and this experience stands her in good stead for her role as Sustainable Destinations Manager. She is responsible for encouraging destination communities, overseas suppliers and other stakeholders to implement sustainable practices. Jo’s personal commitment to her work was recognised at the Responsible Tourism Awards 2010, where she was highly commended. She also won a PROUD award for Pioneering our Future.

In 2010, Jo completed a master’s degree in responsible tourism at Leeds Metropolitan University’s International Centre for Responsible Tourism. Jo is leading our Destinations of Excellence programme for overseas employees to ensure that sustainability is integrated into everyday decisions in our resorts.

Victoria Barlow, Group Environmental Manager Victoria is an environmental scientist, with a degree from the University of Leeds. Her previous role, as an Environmental Business Advisor at the regeneration charity Groundwork, gives her valuable expertise for her position at Thomas Cook Group, as does her qualiﬁcation as an environmental auditor with the Institute of Environmental Management and Assessment (IEMA).

Since joining the Company in 2008, Victoria has worked with our leadership teams to implement environmental policies and management systems. She also coordinates the Group’s environmental performance, identifying areas for improvement and monitoring implementation of new environmental initiatives.

Nancy Brock, Sustainable Business Manager Nancy has worked in the travel industry since the 1980s, building up a wealth of experience in different areas. She joined Sunworld Sailing (later to become Neilson) in 1994, and since then has focused on customer service and sustainability issues.

In 2004, Nancy was appointed to the role of Sustainable Business Manager for both Thomas Cook UK and Neilson. Her role covers four main areas: child protection, animal welfare, Neilson Holiday’s sustainability initiatives and communications, including raising employee and customer awareness of sustainability.

www.thomascookgroup.com PDF Compressor Pro Thomas Cook Group plc 100 Sustainability Report 2012 1 Our approach 4 Our people

2 Our marketplace 5 Our communities

3 Our environment 6 Our performance

Maxine Harper, Charitable Operations Manager, Thomas Cook Children’s Charity Contact us Maxine has been Charitable Operations Manager for the Thomas Cook Children’s Charity since it was established in 2009. She was instrumental in setting up the charity and is responsible for all aspects of its day-to-day operation, including developing fundraising plans and assessing applications for funds that are then presented to the monthly Appeals Committee.

Maxine has been with the Group for 20 years, with prior roles including Internal Communications Executive for Thomas Cook UK & Ireland.

Hayley McDowall, Sustainability Team Coordinator Hayley started her career as an environmental consultant, where she engaged and advised different organisations on environmental sustainability and the associated business beneﬁts. This experience, combined with the environmental knowledge gained during her geography degree from Newcastle University, provided useful preparation for her role as Sustainability Team Coordinator at Thomas Cook.

Hayley acts as a central coordination point for all the members of the team as well as taking on responsibility for administrative and project support functions and a variety of other initiatives.

We want to hear from you Your feedback is very valuable to us. We want our report and our sustainability programme to meet the expectations of our stakeholders, so please email us your feedback to help us improve.

Why not tell us: • what you like about the report; • what you think we should change in the report; • what you were most interested in; • what you would like to see covered in more detail; and • whether you think we have correctly identiﬁed our most signiﬁcant sustainability topics.

It would help us if you also included: • your name; • your relationship to Thomas Cook (for example, customer, employee, etc.); and • your contact details if you would like a response.

If you wish to contact Thomas Cook Group on a matter other than sustainability, please see the Contact us page of our Group website.