OVERVIEW SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Sustainable Holidays Report 2014 OVERVIEW Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

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Welcome to the TUI Group 2014 Sustainable Holidays Report. Highlighting performance from the 2014 financial year (1st October 2013 to 30 September 2014). This interactive PDF allows you to access information easily, search for a specific item or go directly to another page, section or website.

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Welcome

In December 2014, we completed the merger Future proofing our business of TUI Travel PLC and TUI AG to form the “TUI is the world’s leading tourism business – and leaders have to take Our business case is clear. Sustainability delivers a range of benefits: cost world’s leading tourism business. responsibility. Our society increasingly expects respected brands and efficiencies, quality improvements and the enhanced engagement of our This Sustainability Update covers 2014, companies like TUI to demonstrate leadership for a sustainable future. stakeholders, including customers, colleagues, suppliers and destination the final year of TUI Travel’s three-year TUI has been recognised as a leader in sustainable tourism. We have governments. It future-proofs our business and the global industry. Sustainable Holidays Plan ( pages 6 to 39), worked hard to embed environmental and social considerations into We are looking forward to continuing this record as TUI Group. Both and includes highlights of TUI AG’s business operations, because we believe it is vital to our company’s future. TUI Travel and TUI AG had a strong history and good reputation in this sustainability performance in 2014 We believe a clear focus on sustainability differentiates us from area, and the joining of our businesses can only enhance and improve our sustainability performance. ( pages 40 to 47). the competition and generates value. Our listing in the Dow Jones Sustainability Index for the ninth year in succession is endorsement of In short, sustainability is an integral component of a modern, efficient, We are currently implementing our joint our sustainability strategy, and is a spur to our unbroken commitment forward-thinking tourism company.’’ sustainability programmes. The full details of to environmental, economic and social objectives. We also achieved joint Fritz Joussen, Joint CEO, TUI Group our 2020 sustainability strategy will be fir st place in the F TSE 350 with a ‘per fect 10 0’ score for climate change released this Summer. reporting and transparency from the Carbon Disclosure Leadership Peter Long, Joint CEO, TUI Group Index in the UK.

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Fritz Joussen and Peter Long, Joint CEOs, TUI Group OVERVIEW 02 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI at a glance

The world’s leading tourism business at a glance*

Market capitalisation** Global Over 300 hotels €10b Company – with 210,000 beds domiciled in Germany Revenues of €18.7b 77,000 136 aircraft colleagues in 130 countries Underlying EBITA 13 cruise ships €869m More than 30m customers 1,800 from 31 source markets retail shops in Europe FTSE travelling to 180 destinations 100 business

www.tuigroup.com *Based on numbers from FY 2013/14 **As of 13th May 2015 OVERVIEW 03 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Indices and awards

Our commitment to sustainability Carbon Disclosure Project Dow Jones FTSE4Good Other indices In 2014, TUI was featured Sustainability Index TUI is listed on the TUI is also listed in the extends beyond the TUI Group. in the Climate Disclosure TUI is the only tourism FTSE4Good Index in sustainability indices DAXglobal We take great pride in the Leadership Index (CDLI) in group to feature in the recognition of our Sarasin Sustainability the UK and Germany for its reputable Dow Jones transparency and for meeting Germany Ethibel Excellence recognition we receive from approach to carbon disclosure. Sustainability Indices strict social, environmental Index, ECPI Ethical Index external experts who assess our In the UK, TUI was ranked (DJSI) – World Enlarged and governance standards. €uro and STOXX Global joint first with 100 points and Europe Indices. ESG Leaders Indices. achievements and give us awards. in the FTSE 350.

TUI was a finalist in the TUI Nordic was the first Sportsworld achieved ISO Jetairfly won the Airline TUI UK was the first travel Arkefly achieves the Jetairfly achieved ISO 14001 business category of the tour operator in the Nordic 20121 for sustainable event Environment Award at company in the UK to achieve sustainability award at the certification for its airline in WTTC’s 2014 Tourism for region to achieve ISO 14001 management in 2014. the 2014 Brussels Airport the new Travelife certification 2014 Amsterdam Airport 2015. Tomorrow Awards. certification in 2014. Aviation Awards. for Tour operators in 2014. Schiphol Awards.

TUIfly was awarded ‘most Our brands in Sweden Arkefly achieved ISO 14001 Aitken Spence Travels won Thomson Airways was TUI UK & Ireland achieved Jane Ashton, TUI Group climate-efficient airline with (Fritidsresor), Denmark and certification for its airline the ecotourism category at awarded ‘best aviation ISO 50001 certification for Sustainability Director, one million passengers’ and Norway (Star Tours) were operations in 2014. the 2014 PATA Awards (Pacific programme for carbon energy management in 2015. received the Ambassador ‘most climate-efficient charter ranked most sustainable travel Asia Travel Association). reduction’ at the 2014 World Award for Sustainable Tourism airline’ in the 2014 atmosfair company in the 2014 and 2015 Responsible Tourism Awards. at the 2014 British Travel Airline Index. Sustainable Brand Index. Industry Hall of Fame. OVERVIEW 04 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Stakeholder engagement

We communicate with our stakeholders – those who We are conscious of the pressures that tourism can Senior managers are advocates for sustainable tourism have an interest in our company and its activities – place on local populations and resources. We work Since we developed our Sustainable Holidays Plan • CDP climate change conference, London, UK to help us develop as a business and to improve in partnership with communities, governments and in 2012, TUI executives have publicly advocated • International Conference on Responsible our sustainable development strategy. others to support the sustainable management sustainable tourism at over 90 events with a wide Tourism in Manchester, UK Our stakeholders include customers, colleagues, of destinations. Our partners include the Global range of international stakeholders. • World Travel and Tourism Council (WTTC) Sustainable Tourism Council, the Dutch Association investors, industry partners, academia, suppliers, Some of the most high-profile examples include: Global Summit in Hainan, China of Travel Agents & Tour Operators, Deutscher • World Travel Market Latin America in destination partners, governments, non- • Harvard University in Boston, USA ReiseVerband, the UK’s travel industry association Sao Paulo, Brazil governmental organisations and experts in • FITUR, the international tourism trade fair ABTA, German development agency GIZ, and • eeST (Energy Efficiency and Sustainability sustainable tourism. We engage with them regularly, in Madrid, Spain The Travel Foundation. in Tourism) Congress in Mallorca, Spain and incorporate their feedback into our plans. • Corporate water risk conference in London, UK • Boeing Eco-Summit in Seattle, USA As a tour operator flying 136 aircraft, our position on • UNEP Annual Symposium GPST in Agadir, • OECD workshop on Effective Policies for aviation and climate change is particularly important. Morocco Tourism Growth in Bern, Switzerland We have developed collaborative partnerships with • Smarter Sustainability Reporting conference • SETE Tourism & Development conference in London, UK several stakeholders whose insight and guidance in , help us develop this position, including CDP, the • ITB (International Tourism Bourse) CSR day • World Travel Market in London, UK Sustainable Aviation Fuel Users Group (SAFUG), in Berlin, Germany Sustainable Aviation and Forum for the Future.

James Whittingham, Group Jane Ashton, Director of Elise Allart, Sustainable Tourism Harald Zeiss, TUI Deutschland received Arantxa Garcia, Head of Sustainable Environment Manager, presented Sustainability, presented at ITB 2015 Manager, TUI Benelux presented the 2015 Columbus prize of honour for Development for Destination at the Boeing Eco-Summit in on tourism and climate change. on child protection at World Travel sustainable tourism from the Association Services spoke at the Fitur Seattle, USA. Market Latin America. of German Travel Journalists. conference in Madrid in 2014. OVERVIEW 05 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Our sustainable holiday journey

We are working to embed sustainability throughout Flying more Operating our Sustainability Driving best practice the holiday journey. fuel-efficient cruise ships awareness raising sustainability performance aircraft more efficiently in destinations with suppliers

PROTECTING INVESTING REDUCING SUPPORTING SAVING BIODIVERSITY IN TRAINING CARBON COMMUNITIES WATER

REDUCING ANIMAL PROTECTING WASTE WELFARE CHILDREN Promoting greener and Training customer Greening our Engaging customers fairer holidays online facing colleagues coach fleet in sustainable tourism on sustainability

www.tuigroup.com OVERVIEW 06 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Driving sustainability change at scale ‘’Looking back on the three years of our Sustainable Holidays Plan, I’m pleased with the progress we made in improving the sustainability impacts of our business. Following years of sustained effort to reduce fuel consumption, our airlines are now Europe’s most carbon ef ficient. In 2014, TUI airlines’ CO emissions 2 Jane Ashton were just 69.9g per revenue passenger kilometre, and over the last three years we tracked more than €53 million in savings from environmental efficiencies across TUI Travel’s operations. We also exceeded our ambition to deliver 10 million ‘greener and fairer’ holidays, taking over 11.5 million customers to hotels with credible sustainability cer tifications bet ween 2012 and 2014. Finally, we committed to taking customers with us on our journey. Holidaymakers in five of our six key SUSTAINABLE HOLIDAYS PLAN source markets now rank us as the number one In this section we report back on the third and final year holiday company for sustainability. of TUI Travel’s Sustainable Holidays Plan. The future looks even more exciting. Following the merger of TUI Travel PLC and TUI AG in December 2014, we are implementing our joint sustainability “It is often easy for companies like TUI who have a clear leadership position on sustainable programmes. The full details of our sustainability 08 DESTINATIONS tourism, to sit back and let the rest of the industry catch up. But instead, TUI continues to strive strategy will be released this Summer and will for excellence. Not only do we see tangible performance improvements on carbon, but TUI keeps 16 CARBON capitalise on the sustainability ethos of both pioneering better ways for the whole industry to operate. The Group is determined that they, and 24 COLLEAGUES businesses and set clear, stretching goals for 2020. the wider industry, add economic value to destinations, but not at a cost to sustainability. The 32 CUSTOMERS We do not underestimate the sustainability challenges resulting Total Impac t Measurement and Management pilot of a way to evaluate a tour operator’s economic impact, alongside social and environmental costs and benefits is really commendable. that lie ahead. With international tourist arrivals set It shows the value that the industry can bring, but also highlights the areas such as energy and to grow from 1.1 billion in 2014 to 1.8 billion by 2030, upskilling local people where more could be done. We need to be careful about numbers as absolute we recognise a responsibility to seek new ways of truths, but pioneering this approach for the industry could shape the way that both destinations protecting the finite natural resources on which our and tour operators measure future performance – and that is what leadership is all about!’’ own business and the travel industry depend, whilst Stephanie Draper, Director of Systems Innovation, Forum for the Future maximising the social and economic benefits that www.forumforthefuture.org holidays can create for host destinations.’’ Jane Ashton, Group Director of Sustainability, TUI Group OVERVIEW 07 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Destinations Bettern o the ground Taking care in destinations

GOAL BY 2015: We will deliver 10 million 08 HIGHLIGHTS 09 CERTIFICATIONS ‘greener and fairer’ holidays 10 MEASURING IMPACTS 11 HUMAN RIGHTS Our customers rely on us to provide them with special holidays at 12 WORKING WITH SUPPLIERS beautiful and welcoming tourist destinations. We need to make sure 14 PROJECTS our holidays benefit local people and protect the environment, so that we can maintain the quality, viability and desirability of our products for many years to come. OVERVIEW 08 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations highlights

Our differentiated hotels have reduced energy consumption per person per night by 66% 10% of our differentiated hotels over the last 3 years 89% 11.5m had sustainability certifications of our businesses customers have stayed in in 2014, up from 17% at supported environmental or socio-economic projects hotels with sustainability the start of our Sustainable 1 certifications since 2012 Holidays Plan in destinations

We featured over 43 of our differentiated 43% hotels saved 540 of our differentiated of the hotels we feature had 5,900 Travelife certifications in 2014 hotels with sustainability hotels had environmental certifications in 2014 management standards in €2.2m 2014, up from 26% at the by reducing energy and water start of our Sustainable consumption in one year Holidays Plan

www.tuigroup.com 1 Sustainable Development Evaluation 2014 (weighted by colleague numbers) OVERVIEW 09 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations certifications

The travel and tourism sector accounts for 9% Our challenge is to maximise the positive social and Our goal was to deliver 10 million ‘greener and fairer’ We lend particular support to the Travelife of the world’s GDP, is responsible for one in 11 jobs economic impacts of tourism in all our destinations, holidays (that is, hotels with credible sustainability sustainability certification scheme. TUI is the largest globally1 and is the main source of foreign exchange and to minimise environmental impacts. Where certifications) between 2012 and 2014. In 2014, we supporter of Travelife, and we featured over 540 in one-third of developing countries2. possible, we want to do so in partnership with took over 5.5 million customers to hotels certified as hotels with this certification in 2014. We play an We are proud of the positive role our industry destination governments. sustainable, bringing our total to 11.5 million customers active role on the Travelife Board and Steering plays in the world, but we know that travel and Recent UN research shows that only 34% of since 2012 – much higher than our initial goal. Committee and helped to develop new, stricter tourism can also have unintended negative countries said that their tourism sector was guided We define a ‘credible sustainability certification’ as criteria which were launched in June 2014. The new consequences. Our industry faces some significant by a ‘sustainable tourism’ policy3 – so there is a one recognised by the Global Sustainable Tourism criteria adhere to international standards (including environmental challenges: water, for example, is real opportunity for us to support the inclusion of Council (GSTC) or which conforms to international GSTC and Ecolabel standards) and cover areas such likely to become increasingly scarce in the coming sustainability considerations into tourism planning. environmental standards such as ISO 14001 and as: reducing waste and use of water, energy and decades, particularly in island states. In addition, the European Union’s Eco-Management and Audit harmful chemicals, supporting the local community the socio-economic impacts of tourism can be Greener and fairer Scheme (EMAS) standard. and protecting employees, human rights and wildlife. complex, and vary widely across the world. We encourage our hotels to implement credible www.gstcouncil.org www.travelife.org sustainability certifications to show their commitment to social and environmental good Between 2012 and 2014, the number of hotels practice. As well as being good for the environment we highlighted with sustainability certifications and people, we have also found that our most increased considerably, from 850 to 5,900. Of sustainably-managed hotels deliver higher quality these, approximately 1,300 were GSTC recognised and customer satisfaction. schemes, and the remainder were environmental management standards.

GOAL BY 2015: Commitment #1 We will deliver 10 million ‘greener and fairer’ holidays. We will measure We will feature over 3,000 hotels this by the number of customers we take to hotels with credible sustainability certified as more sustainable certifications from 2012-2014, e.g. sustainability certifications working with the Global Sustainable Tourism Council (such as Travelife) and international PERFORMANCE ACHIEVED www.tuigroup.com environmental management standards such as ISO 14001 and EMAS. In Winter 2013/14 and Summer 2014 we featured over 5,900 hotels PERFORMANCE ACHIEVED TUI UK & Ireland was the first travel company with sustainability certifications in the UK to be certified to the Travelife We took over 5.5 million customers to hotels with credible sustainability (up from 850 in 2012). standard for tour operators. Sawadee also certifications in 2014, making a total of 11.5 million since 2012. achieved certification in 2014. TUI Nederland was the first major travel company in the world to be certified, in 2013.

1UNWTO, 2014 2UNEP, 2014 3UN, 2014 OVERVIEW 10 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations measuring impacts

Measuring tourism’s impact All the impacts will be measured and valued, so that they can We are trialling a ‘big picture’ approach to measuring and be considered alongside the more traditional financial metrics understanding the impact of tourism. In partnership with The used for strategic business decisions. The impact of transport Travel Foundation, and using a methodology developed by to and from the hotels, hotel operations, the entire tourism PricewaterhouseCoopers (PwC), we aim to value the various supply chain within Cyprus, and customer and employee economic, fiscal, social and environmental impacts of tourism spending impacts were all within scope, covering aspects of in Cyprus. tourism such as: working conditions, social and community benefits, local economic benefits, and tax contributions. PwC’s Total Impact Measurement & Management (TIMM) The Travel Foundation will be publishing a white paper in framework will be applied to our tourism operations, focusing Summer 2015. on a selection of hotels in Cyprus. This is the first time the www.thetravelfoundation.org.uk methodology has been applied to tourism. Cyprus was chosen for this project as it is a mainstream destination, and an Read more about TIMM on the PwC website: important one for TUI. www.pwc.com The pilot project is expected to provide new insights into the impacts, both positive and negative, of mainstream tourism on a holiday destination and to highlight the practical implications of undertaking holistic impact measurement more widely in the industry and/or in other destinations.

www.tuigroup.com OVERVIEW 11 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations human rights

Commitment to human rights • Our internal policies, practices and guidelines also cover anti-discrimination, Human rights are basic rights that allow individuals the freedom to lead a grievance and whistle-blowing procedures, health & safety, sustainability, dignified life, free from fear or want, and free to express independent beliefs. anti-bribery & corruption, fraud, conflicts of interest, data protection and TUI is committed to the protection of human rights in compliance with security, various sanctions and third party due diligence. applicable laws, conventions and regulations throughout our worldwide • TUI joined Transparency International UK’s Business Integrity Forum in 2014. operations. • We have been named a Top Member of the Code of Conduct for the We acknowledge the UN Guiding Principles on Business and Human Rights and Protection of Children from Sexual Exploitation in Travel & Tourism in 2014 have many policies and initiatives in place to identify, prevent, mitigate and and our businesses support child protection projects and campaigns. account for how we are addressing key human rights issues and challenges. • The majority of our businesses have incorporated environmental and social • TUI signed up to the UN Global Compact in September 2014, committing minimum standards into contracts for accommodation suppliers. the Group to 10 universally accepted principles in the areas of human rights, • We reached our goal to deliver 10 million ‘greener and fairer’ holidays and to labour, environment and anti-corruption. www.unglobalcompact.org encourage our hotel suppliers to implement credible sustainability In 2014, we refreshed our programme to • Our employee Code of Conduct commits us to respecting and observing certifications. Travelife is the system of choice for the majority of our businesses and we helped them to develop new, stricter criteria, including raise awareness of child protection issues with human rights. our colleagues across our ground handling human rights (incorporating the principles of the Ethical Trading Base Code), • Our Supplier Code of Conduct sets out the minimum standards we expect businesses. As part of the Don’t Look Away which were launched in 2014. campaign, colleagues were sent a video, from suppliers and their employees, contractors, agents and subsidiaries We continue to work with stakeholders to understand and respond to human reporting procedure framework and access when working on our behalf. The code covers human rights and labour laws, to online training to help them identify and support for local communities and environmental impacts, as well as bribery rights issues better. report suspected cases of child exploitation. and corruption.

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TUI has formed a three-year TUI Nederland won the BlueTravel and Hotelbeds partnership with the German ‘Overall winner’ award and in the Dominican Republic development agency GIZ, the ‘Best for child protection’ have partnered with The Code and other industry award at the 2013 World UNICEF to protect children partners to focus on child Responsible Tourism Awards. from exploitation. protection in Thailand. www.responsibletravel.com OVERVIEW 12 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations working with suppliers

Improving energy and water management and • We communicate with suppliers on sustainability Differentiated hotels One of our commitments was for all our achieving sustainability certification benefits both – for example, our tour operator in the We classify a portion of our hotels as ‘differentiated’. differentiated hotels to hold a credible sustainability our suppliers and TUI’s own sustainability goals. We Netherlands publishes a regular e-newsletter These are hotels which offer experiences carefully certification by 2015. At the end of 2014, 66% held a work in partnership with our hotels across the world on sustainability for suppliers. designed by us to meet the specific needs of the certification (up from 17% in 2011), falling short of to improve their environmental management, and • Many of our businesses recognise their top target customer. Within the Sustainable Holidays our stretching target. to help them share best practice with one another. performing sustainability hotels. TUI UK & Plan, we focused on differentiated hotels as we are Similarly, we aimed for 50% of our differentiated • We have incorporated environmental and Ireland presented an award to Kassandra Bay the exclusive customer within our source markets, hotels to have an environmental management social minimum standards into contracts with Resort in Skiathos, Greece, in 2014 because and we have a level of influence and control over standard by 2015. At the end of 2014, 43% of our accommodation and excursion suppliers. of its impressive efforts to source locally. TUI how they operate. This means we can make a real 321 differentiated hotels had achieved this – a huge • The TUI Supplier Code of Conduct, launched in Deutschland named Hotel Casabela in Portugal difference to their sustainability performance. improvement on the 26% who held similar standards 2013, sets out the minimum standards we expect their top TUI Environmental Champion due to We have incorporated energy and water in 2011, but still short of our target. from suppliers. excellent customer feedback on sustainability. consumption benchmarks – and, in 2014, social • We organised supplier workshops on • We have an animal welfare strategy in place criteria – into our contracts with differentiated sustainability in Germany, Greece, Italy, across TUI, and audit attractions against the hotels (see Commitment #4 for details). Morocco, Spain, Tunisia and Turkey in 2014. Global Welfare Guidance for Animals in Tourism. www.tuitravelplc.com

Commitment #2 PROGRESS Commitment #3 PROGRESS All differentiated hotels will have a 50% of differentiated hotels will have els els 321 321 credible sustainability certification 297 an environmental management standard 297 246 246 202 66% 202 www.tuigroup.com number of hot PERFORMANCE PARTIALLY ACHIEVED number of hot PERFORMANCE PARTIALLY ACHIEVED 58% 66% of our 321 differentiated hotels had a 43% of our 321 differentiated hotels had 43% 37% sustainability certification in 2014, up from 36% achieved an environmental management 26% 24% 17% (of 202 hotels) in our baseline year (2011). 17% standard in 2014, up from 26% (of 202 hotels) FY11FY12 FY13 FY14 in our baseline year (2011). FY11 FY12 FY13 FY14 OVERVIEW 13 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations working with suppliers

Differentiated hotels continued Even though we haven’t achieved all our targets Monitoring and improving local economic In 2014, we worked with global experts to better These goals proved to be some of the most difficult in this area, we’re still proud of the progress we contribution understand the local economic contribution of our in our Sustainable Holidays Plan, for two main made against them. Hotel sustainability is a critical Monitoring and improving the local economic hotels so that we can seek to improve our impacts. reasons: element of making our holidays special, and we’ll contribution of a hotel is challenging. In 2013, we continue to support and encourage our suppliers to • Differentiated hotels are popular with customers invested in a system which has allowed us to track improve their performance and seek certification. and TUI’s strategy is to increase our offering and influence the environmental impact of some in this area. That means our target group of Our differentiated hotels met the energy of our key suppliers, as well as to begin to monitor differentiated hotels increased every year (from benchmark we set them, on average reducing social indicators such as local employment and 202 in 2011 to 321 in 2014) – and new hotels energy consumption per person per night by procurement. needed some time to make the changes required 10% between 2012 and 2014. We targeted a Information provided by 170 hoteliers shows the to gain their certification. 20% reduction in water consumption at our following socio-economic benefits from our hotels: differentiated hotels and had made good • We increased the robustness of our certification • 58% of employees in these hotels are from the progress in 2013 – but the new additions to our criteria each year to ensure our standards were local region (and 89% are from the same country) differentiated hotel portfolio in 2014 increased always at the leading edge of best practice. In • 45% of food is from the local region (and 80% average water consumption significantly. Since particular, we helped to develop new, stricter is from the same country) criteria for Travelife in 2014. That means that water is likely to become scarcer in many destinations, this is a critical area for us to • These hotels have a ratio of around one staff the bar was set higher for our hotels – and that member to four guests many still have work to do to meet our targets. influence. Blue Village Aegean Park in uses cutting- edge geo-thermal cooling for air-conditioning

Commitment #4 PERFORMANCE Water consumption at our differentiated Our differentiated hotels PARTIALLY ACHIEVED hotels decreased from 516 litres per person per night in 2011 to 513 litres in 2014.2 The will achieve an average Our differentiated hotels achieved an hotels in the 2013 target group had reduced 24kWh and 400 litres average 23.9kWh energy consumption their water consumption to 470 litres per for energy and water per person per night in 2014, compared person per night, but the additions to our www.tuigroup.com consumption per person to 27.1kWh in 2011.1 This represents portfolio in 2014 were heavier water users per night a reduction of 10%, even though the and increased the average significantly. We number of hotels in our target group will continue to work with our differentiated doubled in this period. hotels – particularly the new additions – to reduce water consumption.

1 We gather data from as many of our differentiated hotels as possible. Our energy data from 2014 is based on 262 hotels (out of 321 differentiated hotels) and the baseline data from 2011 was based on 124 hotels (out of 202 differentiated hotels). 2 Our water data from 2014 is based on 248 hotels and the baseline data from 2011 was based on 102 hotels. OVERVIEW 14 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Destinations projects

We are involved in projects all around the world project in Tunisia which focuses on training hotel We are also part of the sustainable tourism task Examples include: that support communities and reduce negative managers, working with hotel schools, promoting force of the UNEP ten-year framework for • In Jamaica, we are supporting projects to develop environmental impacts. Where we can, we focus tourism employment opportunities for women sustainable consumption and production, adopted cultural excursions and boost tourist expenditure on those destinations where we send the most and linking local artisans with hotels. at the Rio+20 conference. Jane Ashton sits on the in Montego Bay. www.tui-group.com customers and where we believe we can make the multi-stakeholder advisory panel. • In Cape Verde, we helped to set up a destination greatest difference. Stakeholders in destinations have a significant role www.unep.org council to tackle sustainability issues. This led to Here are some examples: to play in sustainable tourism management. We the development of programmes on crafts, work closely with communities, local and national The Travel Foundation • In Spain, we have come to the end of a six-year excursions and better beaches. governments, non-governmental organisations TUI has a longstanding partnership with the project in Mallorca, in cooperation with the • In Turkey, we are creating linkages between hotels and trade associations to support the sustainable Travel Foundation, a sustainable tourism charity. Environment department of the Balearic Islands. and local farmers through the Taste of Fethiye management of destinations. The Travel Foundation has supported us on our We planted over 57,600 wild olive and pine trees project. Our customers are now enjoying fresh, sustainability journey, providing a wide range of on a nature reserve to rehabilitate the area. TUI is on the Board of the Global Sustainable Tourism local produce in hotels and visiting the farms on resources and expertise, and collaborating with us www.tui-group.com Council (GSTC) and we encourage destinations to excursions. on strategic projects that have helped us address participate in their destinations programme. We • In Mexico, we are supporting a beekeeping • In Thailand, we participated in a project with presented at the GSTC Destinations Community the sustainability issues facing our industry. We WWF, to identify the impact of tourism on have raised over £6.4 million in customer donations community that sells honey-based products Summit in Barcelona in late 2014, where committed to local hotels, including ours. biodiversity in the Andaman Sea. destinations came together to reinforce the for the charity since 2003. • In Tunisia we partnered with the German application of the GSTC Criteria. www.thetravelfoundation.org.uk development agency GIZ to support a major www.gstcouncil.org

Commitment #5 Commitment #6 We will invest in projects which drive environmental TUI will demonstrate responsible leadership by influencing the and socio-economic improvements in key sustainable management of tourist destinations destinations and replicate them elsewhere PERFORMANCE ACHIEVED PERFORMANCE ACHIEVED We work with many partners to support and advocate the sustainable www.tuigroup.com In 2014, 89% of TUI businesses supported management of tourism destinations, including The Travel Foundation, environmental or socio-economic projects in Global Sustainable Tourism Council, GIZ and UNEP. Since we developed destinations1 (up from 80% in 2011), and helped our Sustainable Holidays Plan in 2012, TUI executives have presented contribute over €4.4 million to good causes. to international stakeholders at over 90 events. page 4

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers) OVERVIEW 15 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Carbon Better in the air Reducing carbon emissions

GOAL BY 2015: We will operate Europe’s most 16 HIGHLIGHTS 17 REPORTING fuel-efficient airlines and save more than 20,000 18 IN THE AIR tonnes of carbon from our ground operations 22 ON THE GROUND AND AT SEA We know that the future must be a low-carbon one, and we need to prepare for it. That means we’re committed to reducing our own environmental impact, and encouraging our suppliers, customers and the rest of our industry to do the same. OVERVIEW 16 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon highlights 97% of our aircraft are now fitted with fuel-saving blended We have saved winglets, reducing fuel burn Our retail shops have reduced CO emissions by 69.9g by up to 5% 2 of CO emissions per €53m 2 revenue passenger kilometre through environmental 25% (RPK) across TUI airlines – efficiencies since 2012 since 2012 making our airlines the most carbon efficient in Europe 5 of our charter airlines We have printed have ISO 14001 certification, TUI airlines reduced 1st covering CO emissions per in Europe to use the innovative 8.2b 2 passenger km by split scimitar winglets, reducing fewer brochure pages fuel burn by an additional 2% 95% since 2011 of our aircraft fleet 10.3% We currently operate TUI scored in 6 years Our ground transport operations reduced 13 CO emissions by 100% 787 Dreamliner planes, which 2 are 20% more carbon efficient for CDP carbon reporting than comparable aircraft 22% in the UK since 2012

www.tuigroup.com OVERVIEW 17 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon reporting

The challenge of climate change has never been more urgent than today. Carbon reporting We know that the future must be a low-carbon one, and we need to prepare We have been reporting our carbon emissions on a voluntary basis for many for it by reducing our environmental impact, and encouraging our suppliers, years now, and have done so transparently and consistently. We use the airline customers and the rest of our industry to do the same. carbon intensity metric of grams of CO2 per revenue passenger kilometre (RPK), Our customers trust us to make their holiday experiences special. But many and have commissioned PricewaterhouseCoopers (PwC) to audit and verify of the things that make a holiday special – beautiful destinations, predictable this metric. weather and personal comfort – are threatened by climate change. Some of our industry peers report with the same level of transparency, but Travel and tourism accounts for around 5% of global carbon emissions1, many do not. We believe that a standard metric and methodology for aviation half of which is attributable to aviation. In 2014, TUI’s carbon footprint was carbon reporting would create the basis for fair and informative comparisons

6,242,792 tonnes of CO2 and emissions from aviation account for over 88% between airlines, enabling those holidaymakers who monitor their carbon of our carbon footprint. footprint to make an informed choice of airline. That is why carbon management is a critical part of our business practices. TUI has reported on all of the greenhouse gas (GHG) emission sources Our carbon management strategy covers not only aviation but also hotels, required under the UK Companies Act 2006 (Strategic and Directors’ Reports major premises, retail shops, water transport and ground transport emissions. Regulations 2013). We have also invested in a web-based sustainability data Managing our carbon footprint also saves us money, now and in the future. software solution that has improved the accuracy of our data. We report TUI was ranked joint first in the FTSE350 in the UK, Across TUI, improved management of energy, natural resources and fuel has on carbon, water and waste and socio-economic data. with a score of 100%, for our approach to carbon saved a total of €53 million over the last three years (2012-2014)2. For more details on our reporting, see the Data section on page 38. disclosure and governance (CDP, 2014). This placed TUI in the Carbon Disclosure Leadership Index (CDLI) for the seventh year running. www.cdproject.net

BREAKDOWN OF TUI TRAVEL’S CARBON FOOTPRINT GLOBAL GHG EMISSIONS DATA FOR PERIOD 1 OCTOBER 2013 – 30 SEPTEMBER 2014 * Carbon footprint covers Scope 1 ABSOLUTE FIGURES

(direct emissions) and Scope 2 CO2 [t] CO2e [t] TUI airlines** & 3 (indirect emissions). (tonnes of (tonnes of carbon and aviation 88.4% Source carbon dioxide) dioxide equivalent) **The scope of the TUI airlines Water transport 4.1% carbon data is as follows: for the Total Scope 1 www.tuigroup.com Ground transport 0.4% absolute fuel burn and carbon emissions 5,865,385 5,927,861 data calculations, all flights 2013/14* Major premises 0.6% Total Scope 2 conducted under each airline’s emissions 315,201 315,374 Scope 1 covers Differentiated hotels 5.5% flight number including sub- direct emissions charters flown by TUI airlines Other (Scope 3) Other (indirect emissions but excluding sub-charters the emissions 62,206 62,391 Scope 2 & 3 including business TUI airlines fly for other airlines Grand total 6,242,792 6,305,626 covers indirect travel by air) 1.0% are included in the scope. emissions

1 UNEP, 2014 2 An approximate figure of Group savings that have been tracked, gross of any upfront investments required to achieve those savings in 2012, 2013 and 2014. Part of previously identified cost savings. OVERVIEW 18 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon in the air

Our airlines are world leading Thomson Airways won ‘best aviation Jetairfly won the Environment Award TUIfly was named ‘most climate-efficient programme for carbon reduction’ at at the 2014 Brussels charter airline’ for the third year in a row the 2014 World Responsible Tourism Airport Aviation Awards – and ‘most climate-efficient airline with Awards. Arkefly won the more than one million passengers’ for www.responsibletravel.com Sustainability Award the second year in a row – in the 2014 at the 2014 Amsterdam “Winning this award is a fantastic Schiphol Airport atmosfair Airline Index. achievement for the airline and one we Aviation Awards www.atmosfair.de are very proud of. At Thomson Airways, ‘responsible leadership’ is one of our core “We are very proud to be heading the atmosfair values and underlines our commitment Airline Index again in 2014. This top ranking to sustainable development and carbon re-confirms that we are implementing a successful reduction. Embedding carbon management strategy, based on investing in modern technology into our key business practices is and the skills of our employees. We will continue to something we have done for many years.” strive to make our fleet even more climate ef ficient John Murphy, MD Thomson Airways because, for TUIfly, climate-ef ficient flight s are a top priority.” Dr Dieter Nirschl, MD TUIfly

PERFORMANCE ACHIEVED TUI AIRLINES’ CARBON EFFICIENCY VERSUS GOAL BY 2015: THE LARGEST AIRLINES IN EUROPE* We will operate Europe’s most fuel-efficient TUI airlines’ carbon emissions were 69.9g per revenue passenger kilometre airlines and save more than 20,000 tonnes (gCO /RPK) in 2014, making our airlines the most fuel-efficient in Europe. *Data from the 4 largest 2 Global airlines (average)** 98.6g budget and 4 largest of carbon from our ground operations. TUIfly was independently ranked the world’s most climate-efficient airline scheduled airlines in European Scheduled airlines (average) 96.4g Europe based on We will measure this through TUI airlines’ with more than one million passengers per year in the 2014 atmosfair Airline passenger numbers. average carbon emissions per revenue passenger European Budget airlines (average) 83.4g Latest publicaly available Index, for the second year in a row. Against our baseline year, we saved data, June 2015. kilometre (gCO /RPK) and CO saved from our 2 2 17,580 tonnes of carbon from our ground operations, largely through TUI airlines (average) 69.9g **Global airlines emissions major premises, retail outlets, brochure paper metrics, taking an reducing emissions from retail shops, brochure print runs and ground TUIfly Nordic 65.4g average of short & production, differentiated hotels and fleets transport. We fell short of our 20,000 target as the hotel occupancy rates long haul operations 0 20 40 60 80 100 (UK Government). of vehicles (against 2011 baseline). increased significantly. gCO2/RPK (grams of CO2 per revenue passenger kilometre) OVERVIEW 19 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon in the air

Airlines achieve fuel efficiency target • The first in Europe to use the new innovative split 787 Dreamliner TUI operates Europe’s most fuel-efficient airlines – six scimitar winglets, reducing fuel burn by up to an We fly Europe’s largest Boeing 787 Dreamliner fleet, additional 2% in all, flying a total of 136 aircraft. We are investing in which emits around 20% less CO2 per passenger cutting-edge aviation technology and implementing • High passenger load factors (that is, we ensure kilometre than comparable aircraft. It also produces fuel conservation and operational efficiencies. that each flight is as full as possible) considerably less noise pollution – more than 60% In 2009, our airlines committed to reduce carbon • Operational efficiencies such as single-engine less than those of the airplanes it replaces. emissions per revenue passenger kilometre taxiing, continuous descent approaches and TUI airlines were the launch customers for the optimised flight planning (gCO2/RPK) by 6% by 2015, against a baseline of Dreamliner in the UK, Belgium and the Netherlands. 2008. Our emissions reductions have exceeded • Reducing weight on our aircraft through lighter We currently operate 13 Boeing 787 Dreamliner our expectations, and in 2012 we extended the catering trolleys, lighter seats and optimising the planes, and this will expand up to 17 aircraft by 2019. target to 9%. amount of water and goods we carry on board We carried one million long-haul passengers on In 2014, TUI airlines’ relative carbon emissions • Maintenance efficiencies such as engine wash the Dreamliner in 2014 and receive exceptional were 69.9g per revenue passenger kilometre programmes, lighter paint, and surface sealant feedback from our customers on their experience. applications that reduce drag on the aircraft (gCO2/RPK), representing a reduction of 10.3% since 2008 – exceeding our target of 9% again. by stopping dirt and grime adhering to it Fuel efficiency examples: • Implementation of an enhanced fuel monitoring and management system in four airlines • Fuel-saving blended winglets fitted to 97% of our aircraft, reducing fuel burn by up to 5%

TUI AIRLINES’ CARBON EMISSIONS AIRLINE GHG EMISSIONS DATA FOR PERIOD 1 OCTOBER 2013 – Commitment #7 Measured by average carbon emissions 30 SEPTEMBER 2014 INTENSITY (RELATIVE) METRIC per revenue passenger kilometre (CO /RPK), TUI airlines’ per passenger 2 with reductions against the baseline year gCO /Revenue gCO e/Revenue carbon emissions will reduce 2 2 * When calculating the carbon- Passenger Passenger efficiency [relative or intensity by 9% (baseline 2008) 77.9 78.1 TUI airlines Km Km metric] the focus is on ‘Revenue’ Arkefly 71.0g 71.7g flights, i.e. RPK. This includes 76.1 PERFORMANCE ACHIEVED 75.9 Corsair 83.4g 84.3g all flights conducted under 6% TUI airlines flight numbers. In 2014, TUI airlines’ per passenger reduction Jetairfly 73.0g 73.8g It excludes sub-charters flying / RPK 2 73.0 Thomson Airways 67.1g 67.8g for TUI airlines; sub-charters carbon emissions were 69.9g per CO TUI fly for other airlines; g 10.3% revenue passenger kilometre (gCO / 70.7 reduction TUIfly 66.3g 67.0g positioning flights (but includes 2 69.9 TUIfly Nordic 65.4g 66.1g ferry flights); ad hoc flights RPK), 10.3% below the 2008 baseline. 2008 2009 2010 2011 2012 2013 2014 such as for training, technical, BASELINE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 TUI airlines (average)* 69.9g 70.6g all-cargo. OVERVIEW 20 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon in the air

Innovation in the skies “The ecoDemonstrator 757 fur ther s our commitment to accelerate innovative We have partnered with Boeing for the next phase of their ecoDemonstrator technologies for current and future airplane programs. The Boeing Programme, which aims to accelerate the development and testing of environmental ecoDemonstrator program is focused on putting new, more environmentally technologies to reduce noise and carbon emissions from commercial aviation. efficient technologies and airplanes in the hands of our customers sooner.” Mike Sinnett, vice president of Product Development, Boeing Commercial Airplanes New technologies being tested on the ecoDemonstrator 757 include coatings on a www.tuigroup.com wing’s leading edge to reduce aerodynamic drag from insects. Also in collaboration “We are very pleased to partner with Boeing for the next phase of their with NASA, the Boeing team is testing ‘active flow control,’ which may help to shrink ecoDemonstrator program. TUI Group is committed to achieving further an airplane’s vertical tail and thereby reduce weight, fuel use and emissions. environmental efficiency across our whole business and remaining the industry leader on carbon efficiency with our airlines.” The first test flight took off from Seattle in March 2015, and trials will continue into Jane Ashton, Director of Sustainability, TUI Group the summer. OVERVIEW 21 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon in the air

Sustainable fuels In 2014, TUIfly Nordic joined the Nordic Initiative for Sustainable Recycling on-board Sustainable fuels represent a real opportunity for the aviation industry Aviation (NISA), which brings together key players from the Nordic Our airlines are recycling as much cabin waste as possible, focusing to reduce its carbon footprint. There has been significant progress in aviation sector to push forward the development of sustainable on drink cans, paper and plastic bottles. Reducing cabin waste is an recent years, but sustainable fuels are not yet financially competitive aviation fuels. operational challenge because of space constraints, international with kerosene, the current aviation fuel. TUI Nederland’s airline Arkefly is partnering with AlgaePARC (part of legislation regarding catering waste and, in some cases, lack of recycling TUI is a Council member of Sustainable Aviation, which brings together Wageningen University and Research Centre in the Netherlands) to infrastructure at airports. In 2014, waste was segregated on 66% of key players in the UK aviation industry – including airlines, airports facilitate the development of sustainable biofuel from algae. An algae TUI airline flights, up from 58% in 2013. and manufacturers – to discuss the challenges and opportunities for photobioreactor has been sponsored as part of the partnership. Thomson Airways also donated over £100,000 worth of recycled aviation in the long term. We contributed to Sustainable Aviation’s TUI is also a member of SAFUG (Sustainable Aviation Fuel Users old-style crew uniforms to a Luton-based homelessness charity called roadmap for sustainable fuels, published in December 2014 which Group), a coalition of global airlines that account for approximately NOAH, to be used by those who need them for job interviews and outlined some key points to help accelerate the commercialisation one-third of global aviation fuel use. work placements. of sustainable aviation fuels. ISO 14001 certifications Sustainable Aviation believes that, with the right policy and investment All five of our charter airlines are now covered by the internationally framework, UK aviation can reduce its CO2 emissions by up to 24% by 2050 through sustainable alternative fuels. This could generate up to recognised ISO 14001 environmental management certification £265 million in economic value for the UK, and support up to 4,400 jobs. scheme, with Arkefly achieving their certification in September 2014, and Jetairfly in February 2015. www.sustainableaviation.co.uk

Commitment #8 Commitment #9 Commitment #10 We will trial sustainable fuel on flights and explore We will recycle cabin waste generated on board 50% TUI airlines will be ISO 14001 certified (an international a long-term sustainable aviation fuels strategy of TUI airline flights (cans, paper and plastic bottles) environmental management standard)

PERFORMANCE ACHIEVED PERFORMANCE ACHIEVED PERFORMANCE PARTIALLY ACHIEVED In 2014, TUIfly Nordic joined the Nordic Initiative for Sustainable Five of our airlines were segregating waste in 2014, equating to All five of our charter airlines are now ISO 14001 certified, Aviation (NISA), which brings together key players from the Nordic 66% of all airline flights. Arkefly started recycling in April 2015 covering 95% of our aircraft. Arkefly achieved certification in aviation sector to push forward the development of sustainable – meaning that all six airlines are now recycling, up from three September 2014 and Jetairfly in February 2015 (first airline in aviation fuels. TUI contributed to Sustainable Aviation’s roadmap airlines in 2012. Belgium to achieve this certification). TUIfly, Thomson Airways on sustainable fuels, published in December 2014. and TUIfly Nordic remained ISO 14001 certified in 2014. OVERVIEW 22 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Carbon on the ground and at sea

Reducing CO2 emissions from offices, shops a 19% reduction in a single year. Retail shop Greener cruising Quark Expeditions operates six ships in the Arctic and and brochures managers were able to respond to regular Our water transport operations make up the third Antarctic. Read more about their sustainability We focus our carbon reduction efforts on our 50 updates, follow advice and encourage their largest area of TUI’s carbon footprint, contributing initiatives here: major premises – most of which are offices with over teams to be proactive to save energy. just over 4% of our total carbon emissions. We are www.quarkexpeditions.com 100 people in them – and from 1,650 retail shops. • TUI UK & Ireland achieved the international committed to making environmental improvements energy management standard ISO 50001 in this area of our business. Greener ground transport Highlights: in January 2015. We operate over 800 vehicles and we have been • TUI Nordic was the first tour operator in the Thomson Cruises is the UK’s third largest cruise line, • Since 2012, we have reduced CO2 emissions carrying 250,000 passengers per year. It operates working to make measurable environmental region to achieve ISO 14001 certification in from the manufacture of brochures by 51%. improvements across these operations. We have 2014 and TUI Deutschland successfully renewed five cruise ships in destinations including the TUI Deutschland reduced brochure pages by Mediterranean, Canaries and Caribbean. reduced CO2 emissions by 22% over the last its ISO 14001 certification, which it has held 4.7 billion between 2011 and 2014. three years. since 2003. The company has introduced a wide range of more • The TUI Digital Assistant app is a ‘one stop shop’ Ultramar, our largest ground transport company, • An ‘energy dashboard’ was rolled out to all efficient procedures and technology including single for everything customers need when booking a based in Spain and carrying 10 million passengers Thomson and First Choice shops, giving a simple, engine running, or drifting on passage, where speeds holiday and preparing for their trip. It has now per year, has several measures in place to improve real-time indication of how each shop is allow; so that the engines can run at their most been downloaded over 1.4 million times, and is fuel efficiency. These include training drivers on performing against its energy targets. It has efficient speed and installing new equipment on available in eight countries. The app has made more efficient driving techniques, investing in helped reduce CO emissions by 24% over three board, from the laundry to air conditioning plant – 2 significant reductions to customer printed new, fuel-efficient vehicles, and installing satellite years. When the behaviourial change aspect was cutting the demand for energy produced by the ship. material. navigation in all vehicles to monitor fuel consumption. introduced in the fourth year we achieved www.tuitravelplc.com www.youtube.com

Commitment #11 Commitment #12 Commitment #13

We will reduce CO2 from our major We will make measurable environmental We will make measurable premises, retail shops and brochure improvements to our water transport operations environmental improvements to production by 15% (baseline 2011) our ground transport operations PERFORMANCE ACHIEVED PERFORMANCE ACHIEVED PERFORMANCE ACHIEVED www.tuigroup.com We reduced absolute CO2 emissions by 5% against our 2011

We reduced CO2 emissions by 27% compared baseline year. Thomson Cruises has reduced per passenger We reduced CO2 emissions by 22%

to our baseline of 2011, exceeding our target CO2 by 24% since 2007, from 142kg of CO2 per passenger against our 2011 baseline year. This

(Retail reduced by 25% and CO2 from offices night to an industry-leading 108kg by replacing cruise ships was largely achieved through more by 5%). Brochures reduced by 51% with 8.2b with more efficient models, saving energy on board and efficient use of the coach fleet. fewer brochure pages printed since 2011. changes to itineraries. OVERVIEW 23 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA Colleagues TUI AG’S SUSTAINABILITY UPDATE take action Involving and empowering colleagues

GOAL BY 2015: Our colleagues will 24 HIGHLIGHTS 25 ENGAGEMENT rate TUI as a leader in sustainability 28 VOLUNTEERING 30 INNOVATION Like most companies, we want our colleagues to be engaged, enthusiastic and proud to work for TUI. We believe that our commitment to sustainability is central to this. Our colleagues, in turn, play a vital role in delivering on our sustainability goals. OVERVIEW 24 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues highlights

Colleagues have dedicated over

33,000 hours to volunteering since 2012 Over 120 700 ideas were generated by people took part in the colleagues in our sustainability Big Holiday Beach Clean in innovation competition, Summer 2014, cleaning over and 1,500 colleagues voted 30 beaches around the world for their favourite ideas

Our businesses, colleagues TUI executives have and customers contributed presented on sustainable tourism to international stakeholders at over over €4.4m to more than 70 charities 86 in 2014 90 events Project Discovery volunteers since the launch have participated in 31 of our Sustainable sustainable tourism projects Holidays Plan in 18 destinations since the scheme started in 2007

www.tuigroup.com OVERVIEW 25 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues engagement

Today’s employees are motivated not only by money Sustainability training • Face-to-face sustainability training is also key and status, but also by the knowledge that their We are embedding sustainability into key parts of – for example, TUI Nordic delivered sustainability employer’s values align with their own. This is even the training calendar – for example, inductions training to sales colleagues in Stockholm this year. more evident among young people: 80% of 13-25 for new starters – and also deliver bespoke • TUI’s Learning and Development team worked year olds want to work for a company that cares sustainability training where it is needed. with City & Guilds to develop a new, innovative about its impact on society1 . For example: qualification that includes two units on Our employee Code of Conduct sets out clearly sustainability – nearly 100 colleagues are • Sustainability is part of online learning platforms the behaviours we expect from all our colleagues. currently working towards this qualification. – for example, TUI Nederland has developed It includes human rights, business ethics and • Our international graduates work on a seven sustainable tourism modules for colleagues transparency, and is inspired by the guiding sustainability challenge during their 18-month and TUI UK has rolled out a new online induction principles of the UN Global Compact. placement – for example, developing sustainable for retail with sustainability as a core module. excursions and sustainability features for hotels. We were shortlisted for an HR Excellence Award in Thomson Airways also rolled out an 2014 for embedding the Sustainable Holidays Plan environmental management system e-learning • The business case for sustainability is integrated throughout our Company. We want our colleagues module designed to engage its teams of people into our ‘high potential’ training programmes across the world to consider TUI a leader in across TUI. right across the airline, i.e. colleagues in In-Flight TUI branded bikes are available sustainability, and to feel that they can take action Operations, Cabin Crew, Engineering, Ground & for colleagues in Hanover to in their day-to-day lives. Customer Operations. travel between the offices

GOAL BY 2015: PERFORMANCE 2012, when 74% of colleagues agreed that Commitment #14 Our colleagues will rate TUI as a PARTIALLY ACHIEVED we act responsibly on environmental We will deliver sustainability training to new colleagues, customer- leader in sustainability Your Voice was last undertaken in 2012, matters, 68% agreed that we are socially facing colleagues and management development programmes and was due to be repeated in 2014. responsible, and 78% of senior leaders We will measure this through the Your agreed with both statements. PERFORMANCE ACHIEVED Voice global opinion survey results However, our merger at the end of 2014 In 2014, 74% of our businesses cover sustainability in inductions and 74% – aiming to meet High Performing meant that our HR department’s priority That means we won’t be able to judge of our businesses offered training on sustainability for colleagues (both Company scores for responsibility was to ensure a successful transition, and our progress against this Sustainable up from 71% in 2012)2. Our businesses have been particularly focused on towards the environment and the survey did not take place. We plan to Holidays Plan goal. We will develop a training customer-facing colleagues in retail and in resort. Sustainability community for all colleagues and launch a new TUI-wide employee survey colleague engagement metric alongside has been embedded into Group management development programmes. senior leaders. in 2015. Our most recent results are from our next sustainability strategy.

1 www.forbes.com 2 Sustainable Development Evaluation 2014 (weighted by colleague numbers) OVERVIEW 26 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues engagement

Motivating our colleagues • TUI Belgium organised a free breakfast for Many of these initiatives are now annual events, In 2014, championed by the HR Director and We want our colleagues to take action on colleagues who cycled to work during their showing their enduring popularity with TUI executed by the reward team, TUI UK & Ireland sustainability, and we communicate both our sustainability event in March. colleagues. added a Sustainability category to its annual successes and challenges on sustainability, so that • TUI Nederland produced an engaging booklet recognition awards. The category recognises Champion networks they understand why we are committed to further on sustainability to share with colleagues, and individuals who played their part in delivering our improvement. a dedicated newsletter for their product Our networks of sustainability champions stretch sustainability strategy. Sarah Clarke, IT Project across the whole of TUI, bringing together Manager, was the winner in 2014 because of her Our local communications teams use their expertise department. colleagues who know how to inspire change in their endless energy when working on sustainability to choose the best channels for their audience. • TUI UK & Ireland had a sustainability stand at area of the business. For example, TUI Nordic runs projects, striving to advocate sustainability among Across TUI, sustainability information can be found a company-wide Product Day and a dedicated a network of ISO-coordinators who helped to her colleagues. in recruitment materials, intranets, newsletters, Sustainability Day (as part of Make Holidays implement ISO 14001, TUI Deutschland has a group inductions, blogs by senior managers, short videos Greener month) with stalls from local producers of environmental ambassadors who meet regularly and e-learning modules. and a very popular clothes swapping event. and help to raise awareness of sustainability, TUI • TUI Deutschland also organised a Sustainability Here is a selection of initiatives from 2014: Nederland has placed sustainability champions in Day, encouraging colleagues to cycle to work each product department, and TUI UK & Ireland • Specialist Holidays Group organised a together and shared information about TUI’s has established champion networks in retail, head sustainability week with a different theme sustainability-related projects. for each day, including Go-Green Tuesday office and overseas. and Switch Off Friday.

Bee campaign We ran a colleague campaign to support a beekeeping community in Mexico that had recently started a business selling honey- Commitment #15 based products to nearby hotels, including TUI ones. The project was We will launch a Group-wide sustainability communications kick-started by the Travel Foundation. We received over 1,600 ‘likes’ campaign from colleagues (for every ‘like’ TUI donated €1.50) which was then matched by the business raising over €5,000 for the project. PERFORMANCE ACHIEVED www.tuigroup.com 98% of our businesses communicate with colleagues on sustainable development1 (up from 91% in 2011). During 2014, sustainability We also ran a competition for colleagues to win some of the products. has been further embedded into Group communication channels One winner from Germany said: “It is great that TUI provides our guests including the TUI e-magazine, intranet, fortnightly e-newsletters, in our hotels with very special and carefully selected natural cosmetics that and sustainability campaigns and competitions. are locally produced! This will contribute to a unique customer experience for the guest, adding to special memories about their TUI holiday!” www.thetravelfoundation.org.uk

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers). OVERVIEW 27 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues engagement

Supporting good causes appointed its President in 2013 with other senior Sustainable tourism competition local attractions, shops, restaurants and crafts, We encourage our colleagues across the globe to leaders from TUI providing their time e.g. by being During 2014, we ran a TUI-wide competition packing lighter, and saving water with shorter support charitable causes. In 2014, our businesses Trustees. asking for our colleagues’ tips on how to make showers. The winner, chosen by Salli Felton, contributed over €4.4 million to more than 70 Colleagues working for our B2B websites and holidays ‘greener and fairer’. Colleagues from TUI CEO of the Travel Foundation, was the idea for charities. We are the largest corporate sponsor ground handling agencies supported more than Benelux, TUI France, TUI UK & Ireland, in our each destination to provide a set of tips for of the Family Holiday Association, a charity that 20 charities and good causes across the world. destinations and specialist and activity businesses holidaymakers, to help them make eco-friendly provides simple holidays for disadvantaged children Many of these good causes were local charities and and Group functions submitted their top tips, choices and provide valuable information about and their families in the UK. Since 2009, we have hospitals in destinations such as Peru, Sri Lanka including using refillable drinking bottles, looking the destination. We will be looking to see how we raised more than £2.5 million for the Family Holiday and India, who received donations of food, clothes for hotels with sustainability certifications, can implement many of these ideas throughout Association. Peter Long, CEO of TUI Group, was and toys as part of a Christmas charity campaign. encouraging use of public transport, supporting the customer journey.

* Sustainable Development Evaluation 2014 (weighted by colleague numbers). OVERVIEW 28 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues volunteering he Big Holi Community volunteering programmes are one of the most popular ways in d t day rte Be which we engage our people in sustainability. Colleague volunteering has a po ac positive impact not only on the projects, but on our volunteers as well, allowing up h C them to experience sustainable tourism firsthand and to develop their own skills. s l s ea The Big Holiday Beach Clean am n In July 2014, TUI organised a series of beach cleans for the Travel Foundation’s te Big Holiday Beach Clean, part of Make Holidays Greener month. The purpose I of the campaign is to build understanding of the simple steps that everyone U can take to protect the environment and local wildlife on holiday. Teams of T colleagues from across the world, including Cape Verde, Dominican Republic, Greece, Jamaica, Mexico, Portugal, Spain, Sri Lanka, Turkey and the UK, took part. TUI organised over 30 beach cleans in 20 destinations, involving 700 colleagues and holidaymakers. Approximately 400 bags of rubbish were collected, representing over 35,000 pieces of rubbish from 30 kilometres of beach worldwide. In one region in Spain, our annual beach clean has prompted the municipality to reinstate the official beach cleaning service.

Commitment #16 Our colleagues will dedicate 100,000 hours to volunteering over PERFORMANCE PARTIALLY ACHIEVED 30+ 35,000 We have been able to track 33,000 hours of colleague volunteering since 2012, but beach 700+ we believe that the real number of hours dedicated to volunteering is much higher pieces of cleans in people than those we have captured in our data. We know that 80% of our businesses rubbish involved support volunteering1, an increase of 7% since 2011, and many of our businesses July collected allow colleagues one day per year to volunteer for a charity in their local area, many of them using the opportunity to work together in teams further enhancing collaboration and team work when back in the office. In our next strategy we will look at other ways to measure our colleagues’ contribution to the community.

1Sustainable Development Evaluation 2014 (weighted by colleague numbers). OVERVIEW 29 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues volunteering

Project Discovery Lending a hand in the Dominican Republic Jill Carter, Director of Retail at TUI UK, visited Montego Bay as part of our Project In July 2014, over 30 TUI colleagues in the Dominican Republic supported Discovery overseas volunteering scheme. Jill, who is also responsible for developing a month-long summer camp for 40 children at Juanillo Basic School. knowledge of sustainability among the company’s retail teams in the UK, used her The theme of the camp was ‘recycling’, brought to life through painting, skills to help villagers at the Rastafari Indigenous Village to develop a tour. The trip drawing, gardening, crafts, jewellery, African dance and Zumba. Thirty had a profound effect on Jill. “Since the trip, I’ve been thinking about what I can do to TUI employees participated in these activities, and also organised a incorporate everything I learnt into a training plan,” she says. “I was passionate before movie night for the children, showing the environmentally-themed the trip, but it was a really overwhelming experience.” Project Discovery, run by TUI film The Lorax. The camp ended with an exhibition of all the projects UK & Ireland in partnership with The Travel Foundation, has been running since 2007, undertaken by all the children, as well as performances of zumba and has taken 86 volunteers to 31 sustainable tourism projects in 18 destinations. dance, moonwalking and a sale of desserts donated by employees. OVERVIEW 30 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Colleagues innovation

Ideas come to life • Colleagues from Arkefly suggested a central • Many technological trials have taken place in Making our excursions greener In the first year of our Sustainable Holidays Plan, we hub for new airline sustainability ideas. We have resort, including digital welcome meetings, free • In Summer 2014, the Collection was launched – ran the Green Ideas Factory competition, asking for since established a dedicated network of airline Wi-Fi on transfers, digital notice boards in resorts, a set of excursions tailored to give customers colleague ideas on how we can green our business environmental managers from across TUI, who and airline and resort colleagues using iPads. a true taste of the destination. As well as other and generate commercial benefits. We had over 120 meet regularly to share best practice. Many of these trials have been rolled out more criteria, excursions have to meet specific widely. ideas from 18 countries and nearly 1,500 colleagues Going digital sustainability standards in order to be included voted for their favourite idea. Now, at the end of our in the Collection. page 33 • There has been a significant reduction in Choosing sustainable hotels Sustainable Holidays Plan, we look back to see how • Sustainability clauses have been integrated into brochures across the business – a reduction of • We have been working hard with our hotel many of the ideas and themes have come to life contracts with excursion suppliers and we helped 22% in brochure pages in the last year alone. suppliers to encourage them to achieve across the Group. develop and roll out animal welfare guidelines • Two of our airlines, TUIfly and Thomson Airways, sustainability certifications. We now highlight across TUI. Greener airlines have switched to e-ticketing. approximately 5,000 hotels with sustainability • The ‘shared transfer’ initiative (where customers • The TUI Digital Assistant app has now been certifications, up from 700 in 2012. • One of the winning Green Ideas Factory from different TUI source markets travelling to rolled out in eight countries and downloaded • We also took 11.5 million customers to these submissions was implemented in early 2014, as the same hotels join the same coach) from our over 1.4 million times as a ‘one stop shop’ for hotels over three years, exceeding our target Jetairfly introduced electric cars for ground destinations services team has been very everything a customer needs to maximise their of 10 million. colleagues at Brussels Airport. Arkefly has also successful and has now been rolled out in many holiday experience before and during their • Our tour operators and B2B websites such as introduced electric vehicles at Schiphol Airport, destinations. Amsterdam – its main operating base. holiday. This has reduced customer printed hotelbeds.com and bedsonline.com are making material. it easier for customers to find these hotels by using logos and search functions.

Volunteering for the Commitment #17 environment We will drive product and process Many of our colleagues’ ideas innovations through sustainability covered how we can work together PERFORMANCE ACHIEVED to conserve the local environment. www.tuigroup.com We have several volunteering The focus in 2014 was on implementing the ideas schemes in place across the Group, generated via the Green Ideas Factory colleague with colleagues dedicating tens of innovation competition launched in the first year of the strategy. Many of the ideas submitted by thousands of hours to local causes. our colleagues have now come to fruition. page 28 OVERVIEW 31 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Customers who care Creating demand for sustainable holidays

GOAL BY 2015: Customers will regard TUI as 32 HIGHLIGHTS 33 INSIGHTS a leader in delivering more sustainable holidays 34 ENGAGEMENT 35 COMMUNICATING Our purpose as a business is to make holidays special for our customers. SUSTAINABILITY We need to make clear the links between sustainability and those special experiences – and encourage them to take action themselves. OVERVIEW 32 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Customers highlights

1m UK schoolchildren have Holidaymakers in been engaged in sustainable 5 of our 6 key source tourism through the markets rank us as the Eco-traveller education 84,000 programme since 2011 Over €1.8m customers enjoyed No. 1 was raised through the Collection excursions in holiday company World Care Fund customer 2014, all of which meet for sustainability donation scheme in 2014 sustainability criteria

90% Over 6m 25 68% of customers rated TUI holidaymakers have pupils sit on TUI Nederland’s of customers say they UK & Ireland’s brands as been actively engaged Kids Counsel – exploring the ‘really valued’ the local ‘good’ or ‘excellent’ for their in sustainable tourism future of holidays flavours element of their sustainability performance since 2012 Collection excursion

www.tuigroup.com OVERVIEW 33 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Customers insights

Our customers are critical to delivering some of our • One in two would be willing to book a more We have also found a positive correlation between The Collection most important sustainability goals. We need to sustainable holiday if available more sustainable holidays and customer The Collection is a set of new, exclusive excursions 3 make sure that clear links are made between • One in two want their holiday company to be satisfaction . This confirms our belief that our that have been tailored to give customers a true sustainability and the holiday experiences they clear about what they do to make their holidays sustainability commitments support the drivers of taste of the destination. They were launched in value, and encourage them to take action in a way more sustainable consumer holiday preference – price, quality, food, 2014 and are now offered by the majority of our that is engaging and memorable. • They are more interested in social and community service and unique destinations. Minimising waste tour operators. in energy and resources helps us deliver value for Recent research from the German Federal Ministry issues than traditional mainstream consumers Each excursion in the Collection must be exclusive 1 money. Hotels that treat their people and the local of the Environment found that 61% of consumers • The sustainability aspects that interest them to TUI and meet specific criteria for sustainability environment with consideration are developing a want to book a sustainable holiday. This mirrors most in the destination are: fair working (based on ABTA’s sustainable excursion criteria), 2 quality product with friendly staff. Beautiful and our own research which also found that modern conditions; learning about the country and the showing that it is bringing benefit to local people unique destinations rely on the tourism industry mainstream consumers are more engaged with people; and changing their behaviour to help and minimising its impact on the environment. sustainability compared to traditional mainstream for protection. the environment. Over 84,000 customers enjoyed these excursions consumers: Our goal is for TUI brands to be recognised for last year, and customer satisfaction research providing customers with more sustainable holidays. showed that they valued the ‘sustainability’ and We measure this through our annual brand ‘local flavour’ aspects most of all. performance survey in key source markets, carried out by an independent company.

GOAL BY 2015: Customers will regard TUI as a leader in delivering more sustainable holidays We will measure this by our performance in consumer research in our key source markets.

PERFORMANCE PARTIALLY ACHIEVED Consumers in five of our six key source markets (Belgium, France, Germany, the www.tuigroup.com Netherlands and Sweden) consider our brands to be the leading holiday companies in Collection: Turtle watch excursion terms of environmental and social responsibility in 2014. In the UK, we were ranked in Turkey and Discover the west second. Fritidsresor, our brand in Sweden, was named the most sustainable travel excursion in Mallorca company in Sweden in the 2014 Sustainable Brand Index and by the Differ survey.

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

2 TUI Group Marketing Research 2012 3 Analysis of TUI UK & Ireland Customer Satisfaction Questionnaires in 2012 and 2013 revealed a statistically significant correlation between good customer ratings on our approach to ‘environment and community’ and overall holiday satisfaction. OVERVIEW 34 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Customers engagement

Across TUI, we’re working to help customers to Here are just a few examples: • TUI Nederland appointed a Kids Counsel to its experience sustainable tourism in a way that is • Customers can take an excursion to visit local business, in collaboration with the Missing engaging and memorable – reaching them through farmers involved in the Taste of Fethiye project Chapter Foundatio, founded by HRH Princess Kids’ Club activities, school education initiatives, in Turkey. Laurentien van Oranje. The Board consists of customer donation schemes and sustainable tourism www.thetravelfoundation.org.uk 25 pupils and explores the ideas of the younger campaigns. generation around the future of holidays. • TUI Nordic’s Blue Village hotels hold Environment • Customer donations to TUI UK & Ireland’s World We set ourselves a goal of engaging five million Days as part of their Kids’ Club activities, in which Care Fund raised over £1.4 million in 2014. holidaymakers in sustainable tourism between children learn to recycle with the help of Skalman The funds are channelled into projects that help 2012 and 2014. In 2014, we exceeded our goal by the turtle. engaging over six million people over the period. address the environmental impact of tourism • Over one million UK schoolchildren have and support communities around the world. participated in the Eco-traveller programme, • i-to-i, one of our volunteer tourism companies, which teaches them how to make a difference has sent over 60,000 volunteers around the world on holiday, since 2011. over the last two decades, supporting 80 projects • 84,000 customers enjoyed the new Collection in 29 countries. Volunteers have built hundreds Customers can visit the farms excursions in 2014. of homes across Thailand and Central America, where the Taste of Fethiye taught thousands of hours of English, and helped produce is grown in Turkey to release over 500,000 sea turtles in Costa Rica. www.i-to-i.com

Commitment #18 TUI Nederland kids’ packs We will engage five million holidaymakers in sustainable tourism TUI Nederland’s Kids Counsel has given advice on the design and content of the kids’ pack distributed to PERFORMANCE ACHIEVED children on board its aircraft. The new pack, developed We have engaged 6.1 million holidaymakers in sustainable tourism since in partnership with publisher Mercis, contains a book, 2012. We calculate this number by totalling the number of holidaymakers crayons, an inflatable ball and an SOS children’s bracelet. who engaged in initiatives such as ‘voluntourism’ (volunteer travel), carbon The contents are carried in a backpack made from recycled offsetting, sustainability activities in Kids’ Clubs, sustainable tourism plastic bottles, and the weight of the whole pack has been campaigns, school projects, sustainable excursions and customer donation reduced by more than a quarter to save weight on-board schemes. the aircraft which saves fuel. OVERVIEW 35 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Customers communicating sustainability

Sustainability is not yet a primary driver of • TUI Nordic enhanced functionality so • Booking stage – we ask for contributions to consumer preference for mainstream holidays. customers can search for hotels with customer donation schemes that support good Research But the more we link the aspects of a holiday that sustainability certifications on its websites. causes around the world. we know customers value (quality hotels, great www.fritidsresor.se • Pre-holiday stage – many of our businesses Book food, friendly staff and unique destinations) to • Hotelbeds used a logo to highlight over 5,000 include sustainability information in their After Holiday sustainability, the more we will build a shared hotels with sustainability certifications on its pre-holiday literature (for example, advice on understanding of its role in supporting what makes B2B website. www.hotelbeds.com acting responsibly and with cultural sensitivity). holidays special. Most of TUl’s businesses As an integrated tour operator, our relationship • Journey stage – our airlines include articles communicate with customers on sustainability. and features on sustainability in their inflight with customers is unique because of the many Pre-trip In 2014, many of our businesses enhanced the touchpoints along the customer journey. This magazines, and screen short films on relevant sustainability content on their websites: gives us an opportunity to communicate with topics. • TUI Deutschland revised and updated its customers throughout their holiday, and really • On holiday – there are plenty of opportunities On holiday sustainability website, including its TUI bring sustainability to life. We plan to focus on to communicate with customers, including at Environmental Champion and EcoResort this area over the coming years. welcome meetings, during hotel activities (local Journey hotels. www.unternehmen.tui.com For example: cooking displays, market evenings and kids’ club activities) and outside the hotel (village walking • TUI Nederland developed a sustainable • Research stage – we communicate how we tours and excursions). accommodation landing page. www.arke.nl are managing the impacts of holidays and highlight ‘greener and fairer’ hotels (those • After the holiday – sustainability is highlighted with sustainability certifications) using logos. in e-newsletters and via social media.

Commitment #19 Commitment #20 We will reach all customers with improved sustainability We will promote greener and fairer holidays to customers online communications PERFORMANCE ACHIEVED PERFORMANCE ACHIEVED 79% of our businesses identified ‘greener and fairer ‘holiday products 93% of our businesses communicated with customers on and promoted them to customers in 20141 (up from 76% in 2012). sustainable development issues in 20141 (up from 87% in 2011). These businesses are now focusing on making it easier for customers In 2014, many of our businesses updated the sustainability to identify and search for more sustainable hotels online. content on their websites, making it easier for customers to Examples of the labels used 72% of our businesses are promoting ‘greener and fairer’ holiday find out what their holiday company is doing in this area. across TUI to highlight ‘greener products on their website in 2014* (up from 68% in 2012). and fairer’ holidays to customers.

1 Sustainable Development Evaluation 2014 (weighted by colleague numbers). OVERVIEW 36 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Sustainable Holidays Plan 2012-14 progress

PRIORITY AREAS OUR THREE YEAR GOALS AND COMMITMENTS HOW WE PERFORMED

GOAL BY 2015: We will deliver 10 million ‘greener and fairer’ ACHIEVED We took over 5.5 million customers to hotels with credible sustainability certifications in 2014, making holidays a total of 11.5 million since 2012. #1 We will feature over 3,000 hotels certified as more sustainable ACHIEVED In Winter 2013/14 and Summer 2014 we highlighted over 5,900 hotels with sustainability certifications (up from 850 in 2012). #2 All differentiated hotels will have a credible sustainability PARTIALLY ACHIEVED 66% of our 321 differentiated hotels had a sustainability certification in 2014, up from 17% certification (of 202 hotels) in our baseline year (2011). Destinations #3 50% of differentiated hotels will have an environmental PARTIALLY ACHIEVED 43% of our 321 differentiated hotels had achieved an environmental management standard management standard in 2014, up from 26% (of 202 hotels) in our baseline year (2011). #4 Our differentiated hotels will achieve an average 24kWh and PARTIALLY ACHIEVED Our differentiated hotels achieved an average of 23.9kWh for energy (10% reduction since 400 litres for energy and water consumption per person per night 2011) and 513 litres for water consumption per person per night. #5 We will invest in projects which drive environmental and ACHIEVED We have invested in many projects covering our 8 key themes. 89% of our businesses supported socio-economic improvements in key destinations and replicate environmental or socio-economic projects in destinations*, (up from 80% in 2011). them elsewhere #6 TUI will demonstrate responsible leadership by influencing the ACHIEVED We have invested in a number of projects which influence the sustainable management of tourist sustainable management of tourist destinations destinations. Since we developed our Sustainable Holidays Plan in 2012, TUI Travel executives have presented to international stakeholders at a total of 90 events.

GOAL BY 2015: We will operate Europe’s most fuel-efficient ACHIEVED TUI airlines’ carbon emissions were 69.9g per revenue passenger kilometre (gCO2/RPK) in 2014, making airlines and save more than 20,000 tonnes of carbon from our airlines the most fuel-efficient in Europe. We saved 2,207 tonnes of carbon from our ground operations, bringing

our ground operations the total to 17,580 tonnes of CO2 since 2012. #7 TUI airlines’ per passenger carbon emissions will reduce ACHIEVED TUI airlines reduced their per passenger carbon emissions by 10.3% (baseline 2008), to 69.9g per revenue by 9% (baseline 2008) passenger kilometre (gCO2/RPK).

#8 We will trial sustainable fuel on flights and explore a long-term ACHIEVED TUI airlines are collaborating with a number of stakeholders to drive understanding and action Carbon sustainable aviation fuels strategy for sustainable aviation fuel. Thomson Airways were the first UK airline to fly customers on sustainable fuel in #9 We will recycle cabin waste generated on board 50% of TUI October 2011. airline flights ACHIEVED Five of our airlines were segregating waste in 2014 (up from three airlines in 2012), and our sixth airline #10 TUI airlines will be ISO 14001 certified (an international started in April 2015 (equating to over 66% of TUI airline flights). environmental management standard) PARTIALLY ACHIEVED All five of our charter airlines are now ISO 14001 certified, covering 95% of our aircraft. Arkefly achieved ISO 14001 in 2014 and Jetairfly in 2015. #11 We will reduce CO2 from our major premises, retail shops and brochure production by 15% ACHIEVED We reduced CO2 by 27% against our baseline of 2011, exceeding our target. #12 We will make measurable environmental improvements to our water transport operations ACHIEVED We reduced absolute CO2 emissions by 5% against our 2011 baseline year. #13 We will make measurable environmental improvements to our ground transport operations ACHIEVED We reduced CO2 emissions by 22% against our 2011 baseline year.

*Sustainable Development Evaluation 2014 (weighted by colleague numbers) OVERVIEW 37 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Sustainable Holidays Plan 2012-14 progress continued

PRIORITY AREAS OUR THREE YEAR GOALS AND COMMITMENTS HOW WE PERFORMED

GOAL BY 2015: Our colleagues will rate TUI as a leader PARTIALLY ACHIEVED 78% of TUI Travel’s senior leaders agree that TUI acts responsibly on environmental matters in sustainability and is socially responsible. 74% of all colleagues agree that TUI Travel acts responsibly on environmental matters and 68% agree for social responsibility. #14 We will deliver sustainability training to new colleagues, customer ACHIEVED 74% of our businesses cover sustainability in inductions and 74% of our businesses offer training on facing colleagues and management development programmes sustainability for colleagues (both up from 71% in 2011). Sustainability has been embedded into Group management #15 We will launch a Group-wide sustainability communications development programmes. campaign ACHIEVED 98% of businesses communicate with colleagues on sustainable development* (up from 91% in 2011). Colleagues #16 Our colleagues will dedicate 100,000 hours to volunteering #17 We will drive product and process innovations through sustainability PARTIALLY ACHIEVED Colleagues have dedicated over 33,000 hours to volunteering since 2012. ACHIEVED Implementation of ideas generated via the Green Ideas Factory colleague innovation competition launched in 2012.

GOAL BY 2015: Customers will regard TUI as a leader PARTIALLY ACHIEVED Consumers in five of our six key source markets consider TUI brands to be the leading in delivering more sustainable holidays holiday company in terms of environmental and social responsibility. #18 We will engage five million holidaymakers in sustainable tourism ACHIEVED Over 6.1 million holidaymakers were engaged in sustainable tourism since 2012. #19 We will reach all customers with improved sustainability ACHIEVED 93% of our businesses are communicating with customers on sustainable development issues* communications (up from 87% in 2011). #20 We will promote greener and fairer holidays to customers online ACHIEVED 79% of our businesses are identifying green/fairer holiday product and identifying them to customers* Customers (up from 76% in 2012). 72% of our businesses are promoting green/fairer holiday product on their website* (up from 68% in 2012).

*Sustainable Development Evaluation 2014 (weighted by colleague numbers) OVERVIEW 38 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Data

Scope Group Sustainable Development Evaluation We tailored the survey questions to the recipients, Third party verified data The scope of this report from pages 6 to 37 in the The 2014 Group Sustainable Development focusing on their carbon emissions and TUI Travel’s 2014 airline carbon intensity metrics Sustainable Holidays Plan section includes data Evaluation was used to assess and report on environmental management practices. The survey have been externally verified by PwC. PwC also and progress on sustainable development activities performance from our businesses across the Group. was sent to the environmental managers of our assure our airline EU Emissions Trading Scheme from businesses owned by TUI Travel. Data is for The 2014 Evaluation consisted of questions relating differentiated hotels and the operations directors data. Our airline carbon data methodology the financial year 2013/14 (referred to throughout to Embedding Sustainable Development, Carbon of our cruise businesses. document and PwC’s Assurance Report in full as 2014 or FY2014), running from 1 October 2013 to Management, Destinations, Colleagues and can be found at: Carbon Disclosure Project 30 September 2014, except where otherwise stated. Customers. www.tuitravelplc.com In 2014, for the seventh consecutive year, TUI Travel We have indicated where data refers to joint ventures In December 2014, the Evaluation was sent to the was featured in the Climate Disclosure Leadership TUI Travel also commissioned the environmental or Group suppliers. Managing Directors of TUI Travel businesses, and Index. TUI Travel is the only tour operator to be consultancy company Arqum in Germany to audit responses represented over 51,000 colleagues. Data sources featured in this index and our score places us in the the processes of monitoring emissions, data To ensure the responses reflected the size of the top 10% of the FTSE 350 for our approach to carbon collection and calculations of environmental KPIs. For this report we gathered data for our businesses that responded, we weighted them disclosure, governance and performance. This audit covered all of TUI Travel’s Scope 1 and performance indicators from two main sources: the by colleague numbers. 2014 Group Sustainable Development Evaluation www.cdproject.net Scope 2 emissions and included Scope 3 emissions In September 2014, we sent an amended version and our 2014 annual sustainability data collection www.tuitravelplc.com where relevant. of the Group Sustainable Development Evaluation process. www.tuitravelplc.com to TUI Travel’s hotels and cruise ship operations.

BREAKDOWN OF TUI TRAVEL’S CARBON FOOTPRINT IN FY2014

CO2 [t] CO2 [t] Absolute figures Absolute figures (tonnes of Source (tonnes of carbon dioxide) carbon dioxide equivalent)) TUI airlines and aviation 5,520,695 5,577,828 Water transport 257,019 261,983 www.tuigroup.com Ground transport 24,974 25,159 Premises 35,110 35,261 Differentiated hotel properties 342,788 343,003 Other (scope 3) 62,206 62,391 6,242,792 6,305,626 OVERVIEW 39 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE Data

Carbon and water footprint Sustainability data software solution Greenhouse gas emissions All material GHG emissions have been included and We continue to improve our airlines’ carbon emissions During FY2014, TUI Travel further developed their TUI Travel has reported on all of the greenhouse gas disclosed following a thorough review of entities and per passenger km, replacing older, less efficient aircraft a web-based sustainability data software solution. (GHG) emission sources required under the Companies the emissions sources across the Company’s UK and and driving a programme of fuel conservation across Using multiple methods of data capture, this software Act 2006 (Strategic and Directors’ Reports Regulations international operations. The methodology for the our airlines. This has helped us reduce our carbon has enabled us to improve data accuracy and provide 2013). The organisational boundary used for its assessment is based on voluntary and mandatory emissions per passenger km by 10.3% since FY2008. advanced monitoring and reporting tools. This has Scope 1 & 2 and, where appropriate, Scope 3 inventory GHG reporting guidance issued by DEFRA (the UK Government’s Environment Department). In FY2014, the efficiency of TUI Travel airlines was allowed us to comply fully with UK mandatory of GHG emissions is operational control and it greenhouse gas reporting requirements with robust corresponds to the Company’s consolidated financial 69.9g of CO2 per revenue passenger kilometre (CO2/ RPK). TUI Travel cruise and expedition ship operations and auditable data. statements. TUI Travel is disclosing carbon dioxide emitted an average of 301g CO /RPK in FY2014. equivalent (CO2e) data for both its absolute and relative 2 emissions. CO e refers to CO and the other five In FY2014 the total water footprint from TUI Travel’s 2 2 Kyoto GHGs – (Methane (CH ); Nitrous oxide (N O); differentiated hotel properties was 19,436 million cubic 4 2 Hydrofluorocarbons (HFCs); Perfluorocarbons metres of water. (PFCs); and Sulphur hexafluoride (SF6).

TUI AIRLINES’ ABSOLUTE AND RELATIVE CARBON EMISSIONS SINCE FY2008 TUI TRAVEL’S CARBON FOOTPRINT IN FY2008, FY2009, FY2010, FY2011, FY2012, FY2013 & FY2014 (tonnes of carbon dioxide) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Relative (gCO2/RPK) 77.9 78.1 76.1 75.9 73.0 70.7 69.9 Scope 1 Absolute emissions 6,564,026 6,297,794 5,981,254 6,259,723 6,169,809 5,936,608 5,865,385 (tonnes Scope 2 of CO2) 6,016,083 5,778,712 5,260,500 5,467,814 5,248,262 5,101,532 5,014,068 emissions 53,475 104,408 118,869 168,441 220,058 303,759 315,201 Scope 3 emissions 70,597 45,167 38,541 38,478 35,549 52,084 62,391 Total 6,688,097 6,447,370 6,138,664 6,466,642 6,425,416 6,292,451 6,242,792

Scope 1 covers direct emissions. Scope 2 & 3 covers indirect emissions OVERVIEW 40 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

Tourism as a force for good ‘’Tourism plays a hugely positive role across the world, delivering nearly 10% of global jobs and GDP. It also generates significant indirect and induced economic benefit – a ripple ef fect that is par ticularly Thomas Ellerbeck important in developing countries, where tourism is often a significant export. 2014 saw TUI AG continue it s excellent track record on sustainability. In September, we signed the UN Global Compact, committing TUI AG to 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. TUI’s employee Code of Conduct, which applies to all its businesses, is inspired by the guiding principles of the Global Compact. In 2014, TUI Cruises launched Mein Schiff 3, a cruise ship with e xceptional environmental credentials. It is 30% more carbon efficient than comparable ships and sets a new 41 TUI CRUISES standard for the industry. TUI AG SUSTAINABILITY UPDATE 42 HAPAG-LLOYD CRUISES I am proud of our ongoing commitment to In this section we report highlights of the sustainability performance 43 TUI HOTELS & RESORTS training for young people in destinations. of TUI AG’s cruise ships and hotels in 2014. 47 GOOD CAUSES Three of our Robinson Clubs support hospitality training schools, ensuring a strong future for the tourism industry and fulfilling careers for the next generation. It is initiatives like these that convince me of the fundamental importance of tourism – and of the need to continue improving our performance every year.’’ Thomas Ellerbeck, Member of the Group Executive Committee, TUI Group Robinson Club Agadir OVERVIEW 41 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG TUI Cruises

TUI Cruises is a joint venture with Royal Caribbean More sustainable shore excursions Protecting biodiversity offering premium voyages. The fleet currently The ‘green and fair’ category of shore excursions In the field of marine biodiversity, TUI Cruises is consists of four vessels, with the new ship, was introduced in 2013. The shore excursion working with the SECORE foundation, a leading Mein Schiff 4, launched in June 2015. department has developed clear criteria for ‘green coral conservation initiative, to protect coral reefs. and fair’ excursions and used these to highlight tours With the support of TUI Cruises, SECORE designs Reducing environmental impacts that are particularly environmentally and socially restoration measures to counteract the decline of In order to cut fuel consumption – and hence beneficial. the reefs. greenhouse gas emissions and air pollutants – Guests have responded very well to the excursions A coral breeding station in Curaçao, Dutch Antilles TUI Cruises has optimised voyages continually and offered in this category. For every ticket booked, nurtures endangered elkhorn corals and transplants improved intelligent route planning. Furthermore, TUI Cruises donates €5 to environmental projects them along the reefs. This means that the project is silicone anti-fouling paint has been applied to the and organisations. During Summer and Winter not only helping to preserve and develop the coral hulls of all its vessels. This enhances flow dynamics, 2014/2015, more than €100,000 was raised in this reefs on Curaçao, but also contributing new insights as do the ducktails installed on the aft ship. way for charitable purposes. into the restoration of coral, which will support the Advanced exhaust gas purification and selective protection of threatened coral species all over the catalytic reduction work together to cut sulphur world. emissions by up to 99% and particle emissions Mein Schiff 3 is 30% more carbon To read TUI Cruise’s dedicated environmental efficient than comparable ships by 60%. The catalyst reduces nitrogen oxide reports, visit: www.tuicruises.com emissions by 75%. www.tuigroup.com

CARBON DIOXIDE EMISSIONS FOR CRUISE OPERATIONS Data from TUI Cruises and Hapag-Lloyd Cruises tonnes 2013/14 2012/13 Var. % Cruises 319,722 294,741 +8.5*

* The 8.5% increase

in absolute CO2 emissions from cruise operations mainly resulted from Mein Schiff 3 joining the TUI Cruise fleet. OVERVIEW 42 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG Hapag-Lloyd Cruises

Hapag-Lloyd Cruises has four ships and Responsibility for the management of the ships Cruising in the polar regions Offsetting CO2 emissions is the leading provider of expedition and luxury is assumed by Hapag-Lloyd AG, which is certified As a member of the International Association of In partnership with the climate protection cruises to the German-speaking market. in accordance with ISO 14001 (environmental Antarctica Tour Operators (IAATO), Hapag-Lloyd organisation atmosfair, Hapag-Lloyd Cruises is management) and ISO 9001 (quality management). Cruises observes their guidelines on all Arctic and the first cruise operator to offer its guests the On-board technology and ship management Antarctic voyages. In order to protect the sensitive opportunity to offset their cruise-only carbon Efficient cruising Hapag-Lloyd Cruises are equipped with modern polar waters, the cruise ships use marine diesel emissions. Using an online climate calculator, environmental technology, maintained through All Hapag-Lloyd Cruises routes are calculated on rather than heavy fuel oil. The cruise company passengers can calculate the greenhouse gas regular shipyard stays and enhanced with state- the basis of an economical average speed which also engages customers and crew in saving energy, emissions of their cruise in advance and offset of-the-art technological features. All ships have is significantly lower than the ship’s maximum and use efficient on-board technologies to reduce them by contributing to a project that provides seawater desalination systems for water treatment, performance. This lowers fuel consumption by energy consumption. solar lamps in rural areas of India. A quarter of the a biological sewage treatment system for approximately one third – currently one of the offset amount is paid by Hapag-Lloyd Cruises. wastewater, TBT-free underwater coatings and best and most effective methods of reducing www.hl-cruises.com modern waste incinerators. fuel consumption. Hapag-Lloyd Cruises has chosen the latest in ship technology for the newly-built MS EUROPA 2. It is equipped with a catalyst that reduces nitrogen oxide emissions by almost 95% and partially filters soot.

www.tuigroup.com

Hapag-Lloyd’s EUROPA 2 Photo credits: was the first cruise ship Hapag-Lloyd Kreuzfahrten awarded EEDI certification (Energy Efficiency Design Index) by Germanischer Lloyd. OVERVIEW 43 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG TUI Hotels & Resorts

TUI owns over 220 hotels, including brands such energies, conserving natural resources, and Energy Heat production in the Robinson Club Cala Serena as RIU, Grecotel and Robinson Club. TUI Hotels offering adventurous excursions into the natural Many clubs and hotels in the TUI Hotels & Resorts in Mallorca is entirely carbon neutral. Three 200-kW & Resorts brands are among the environmental surroundings, a shuttle service, or hotel-based portfolio obtain their energy from renewable biomass boilers generate hot water, heating and leaders in their destinations and are committed nature trails. sources. pool heating. Thanks to the installation of a wood to climate protection. pellet system, around 220,000 litres of conventional Hotels and clubs in the TUI Hotels & Resorts The Robinson Clubs in Spain and Portugal annually portfolio can display the EcoResort quality label if heating oil are saved every year. EcoResort generate more than 1,500 megawatt hours with they have been ranked among the TUI Environment their solar collectors and photovoltaic arrays, The Dorfhotel Sylt has committed to local The EcoResort label, created by TUI Hotels & Champions and hold a recognised international or providing the energy to heat up to 85 % of the hot sustainability by installing an extremely efficient Resorts in 2005, is a seal of quality for sustainability national environmental standard. As well as sound water consumed. The Iberotel Palm Garden in gas-fired combined heat and power (CHP) in holiday hotels and is audited by independent, environmental performance, they must also Turkey also covers 75% of its hot water consumption generator. The power station has the capacity to accredited specialists. It focuses on commitment demonstrate commitment to improving their local as well as the energy for heating the children’s and produce 680 megawatt-hours of heat per year to sustainable development, and environmental socio-economic impact. In 2015, 44 hotels displayed baby pool with a photovoltaic system. The Robinson (MWh/a) and 392 MWh/a of electricity, which performance must always be evident to the guests. the EcoResort quality seal. Club Agadir uses a solar system with a total area would be enough to supply power to around 100 Commitments made by hotels under this The EcoResort website describes in detail how of 900m² – the largest for a hotel in Morocco – to households. This has the potential to cut annual certification includes buying domestic produce the TUI hotel brands express their responsibility produce hot water and keep the pool complex warm. emissions of CO2 by approximately 165 tonnes. (preferably from local farms), working with nature towards nature and the environment. conservation groups, drawing on renewable www.ecoresort-tui.com

CARBON DIOXIDE EMISSIONS FOR TUI HOTELS & RESORTS FY2014

Energy kWh per person per night 27.3 kWh

Carbon dioxide CO2 per person per night 10.8 kg CO2

Solar panels Commissioning the on the roof of new combined heat Robinson Club and power generator Agadir at Dorfhotel Sylt OVERVIEW 44 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG TUI Hotels & Resorts

Water Waste Water is one of the most precious resources on the Controlled waste management aims to conserve Plastic waste poses a particular danger at sea, planet. In some countries of the world, including resources, reduce environmental impacts and because it can be eaten by marine life or enter the many holiday destinations, demand for water costs, and recycle waste into a recovery loop. food chain indirectly by being ground down over exceeds natural reserves. TUI Hotels & Resorts TUI Hotels & Resorts implement many measures time. Robinson Club Maldives is avoiding waste from has implemented several measures to save water to cut waste volumes. It starts with buying more plastic bottles thanks to its sustainable treatment and steadily cut water consumption per guest local or regional produce, as long as it is available of drinking water. In June 2013, the Club began and bednight. Hotel guests are informed about in appropriate quantities and quality. This avoids operating its own soda-making facility. The system ways of saving water. unnecessary food miles and additional packaging. uses reverse osmosis to desalinate and purify Many hotels use endemic plants for their gardens, The Grecotels on , for example, obtain fresh seawater. By adding minerals and carbonic acid, the as they are ideally adjusted to the environmental food from their own Agreco Farm, which supplies freshly generated drinking water is converted into The soda making the hotels with organic fruit and vegetables. soda water and decanted into one of 7,500 new glass machine at the conditions. Drip irrigation at times of the day when Robinson Club the sun is less intense helps save precious water There has also been a focus on separating waste bottles, which are cleaned locally. This cuts out plastic Maldives supplies. Some RIU hotels also use xeriscaping, materials, increasing reuse, and disposing of waste waste altogether, eliminating the transport and significantly disposal of around 400,000 plastic bottles annually. reduces plastic which involves investigating factors such as climate properly. However, this approach depends in part bottle waste conditions, light and soil conditions before selecting on local infrastructure for waste disposal and suitable plants. processing.

Castelfalfi alternative sources of energy. At the heart of the conducting a three-year trial around the production A little medieval village in Tuscany, which lost its last organically farmed estate is the village, with its ancient of biomass, the aim being to become as self-sufficient resident in the 1960s and had been largely neglected castle dating back to the Lombards. It’s agricultural and in energy as possible. Thanks to the collaboration the ever since, is now the nucleus of a tourism project production sites have been restored, and the existing internal production of natural biomass (that launched by TUI AG. The 1,100-hectare Castelfalfi cultivation of grapes and olives has been expanded. originally comes from the pruning of the self-farmed estate is being carefully restored by TUI in an The vineyards, olive groves and arable land now largely olive groves, vineyards and woods) was implemented investment programme worth €250 million, with the reflect the pattern that once dominated this agrarian with 3 hectares of poplar tree and common cane. The involvement of local stakeholders. The renovation region. The farming activities are carried out in full TUI project has created new jobs in one of the most project of Castelfalfi has been developed in line with respect of the environment and the landscape structurally disadvantaged areas of Tuscany, and it the latest environmental considerations by applying conservation. Working with the well-known School of is a shining example of how to revive a cultural and the most sensitive environmental techniques and the Sant’Anna in Pisa since 2014, TUI’s Castelfalfi estate is agricultural gem. OVERVIEW 45 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG TUI Hotels & Resorts

Biodiversity Sea turtles To educate tourists and the local population, As a global business, we are aware that our activities Since 2011, RIU Hotels & Resorts and the RIU supports BIOS.CV with its information and have an impact on biodiversity at the local, regional conservation organisation BIOS.CV have engaged in awareness-raising campaigns. Weekly events and global levels. At the same time, tourism is more joint projects to protect sea turtles on the Cape Verde for guests are held at the Riu Touareg, including dependent than almost any other economic sector on island of Boa Vista. RIU provides logistical and documentaries about biodiversity in the area and having an intact environment and natural landscape. financial support to the organisation in all its projects. details of the measures that are being taken to protect the environment. TUI has defined biodiversity quality and action In Cape Verde, the egg-laying and nesting season targets, which are implemented throughout the for sea turtles begins in July and continues until Other projects to protect endangered sea turtles Group in the form of specific programmes. mid-October. Boa Vista’s Lacaçao beach, where the are carried out by the TUI hotel brands Iberotel in Achievements are reviewed on a regular basis, and Riu Touareg hotel is located, attracts especially large Turkey, Grecotel in Greece and Robinson on the comprehensive internal and external communication numbers of breeding turtles. Every night, rangers Canary Islands, always in partnership with local is provided, including on the Group’s website. watch over the egg laying, protecting the animals conservation groups. Through model projects, partnerships and actions and later moving the nests to a safe place where of our own, we also hope to influence opinion among the eggs can hatch in peace. the decision-makers in destination countries.

Souvenirs and species protection TUI has developed a souvenir guide in TUI AG Group Environmental cooperation with the Federal Agency for Management/Sustainable Nature Conservation (BfN). In destinations Development Karl-Wiechert-Allee 4 where this kind of information is needed, 30625 Hanover www.tuigroup.com Germany TUI‘s Little Guide to ‘TUI’s Little Guide to Preserving Species’ Phone +49 (0) 511 566-2201 Preserving Species Fax +49 (0) 511 566-2222 briefs TUI customers about illegal souvenirs E-Mail [email protected] Fair Souvenirs and Biodiversity associated with endangered species and www.tui-sustainability.com

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

0320_Leaflet U 54x76_RZ engl2012 2 20.03.12 10:53 OVERVIEW 46 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG TUI Hotels & Resorts

Costa Rica: A biological hotspot By designating this area as a protected zone, RIU is playing RIU has set up a private conservation area in Costa Rica. a significant role in preserving the unique flora and fauna The protected site covers 200 hectares of land in the of Costa Rica. A detailed management plan has been coastal mountain range of Matapalo, close to two of the drawn up, setting out all the measures and activities to company’s hotels. The reserve is home to more than 250 be undertaken – including combating illegal hunting and www.tuigroup.com plant and animal species – some of them facing extinction preventing forest fires. To preserve Costa Rica’s natural – and is therefore extremely valuable for biodiversity in heritage in the long term, there is close cooperation with the region. The site is also part of the biological corridor the national Ministry of Environment and Energy under called Chorotega, helping to maintain vital links between the SINAC Programme (Sistema Nacional de Areas de the nature conservation areas. Conservación). OVERVIEW 47 Sustainable Holidays Report 2014 SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE TUI AG Good causes

TUI Foundation It was back in 1995 that TUI companies based in Hanover began collecting for charity, selecting one charitable project to adopt each year. Since then, colleagues In 2000, TUI set up a trust, the TUI Stiftung, to mark the 75th in Hanover have raised around €530,000 for these good causes. The projects have anniversary of Preussag AG, now TUI AG. Since its inception, the ranged from counselling groups via educational day centres and free lunches for trust has funded projects to the tune of nearly €5 million, and it is disadvantaged children, to associations helping children suffering from cancer. endowed with capital of €12.5 million. The purpose of the trust is www.tuigroup.com Funds are raised over a period of twelve months through sale events and collections. to promote education and training for children and young people, culture and the arts. The TUI Stiftung is currently amending its In 2014, TUI’s good cause was an outpatient hospice serving children and teenagers profile, and from 2015 has started to run projects of its own in in the region around Hanover. AKHD provides emotional and financial support for the field of education and culture. youngsters confronting a terminal illness, and also for their parents and siblings. www.tui-stiftung.de www.tuigroup.com OVERVIEW SUSTAINABLE HOLIDAYS PLAN DESTINATIONS CARBON COLLEAGUES CUSTOMERS DATA TUI AG’S SUSTAINABILITY UPDATE

For more information about sustainability at TUI Group visit: www.tuigroup.com/sustainability

Contact Jane Ashton Director of Sustainability TUI Group Crawley Business Quarter Fleming Way Crawley West Sussex RH10 9QL Telephone: +44 (0)1293 645 700 [email protected] www.tuigroup.com

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