SUSTAINABLE DEVELOPMENT REPORT 2016 A responsible approach for a sustainable airline Foreword Summary As part of its corporate social responsibility (CSR) framework, Air Tahiti Nui is publishing its first sustainable development report in a conscious approach to transparency and accountability towards FOREWORD 03 its stakeholders. This CSR performance report which is a OUR ACHIEVEMENTS AND complement to the annual activity report PROGRESS OBJECTIVES published by Air Tahiti Nui, (focused on 05 commercial and financial results and mainly intended for shareholders and OUR PROACTIVE APPROACH financial market players) fulfills several TO SOCIAL RESPONSIBILITY 06 objectives which are: FOCUS 1 : MAINTAINING RESPONSIBLE OPERATIONS To outline the CSR approach and 09 commitments that Air Tahiti Nui has established for the future FOCUS 2 : REDUCING THE ENVIRONMENTAL IMPACT OF OUR ACTIVITY 11 To draw up an initial assessment of the operational activities carried out in 2016 FOCUS 3 : BEING and monitor their progress over time A RESPONSIBLE EMPLOYER 13 To share non-financial data on itsESG (Environment, Social and Governance) FOCUS 4 : ACCOMPANYING THE performance and provide explanations DEVELOPMENT OF POLYNESIA 15 to enable a better assessment of the company’s ongoing improvement process regarding company responsibility. APPENDIX 17 This report is thus addressed to both Table of CSR indicators and GRI correspondence internal players (to involve employees more) and external players to promote List of abbreviations dialogue with all company stakeholders in Polynesia and in the stations where it operates. SCOPE AND METHODOLOGY This report applies solely to the Air Tahiti Nui sites based in Tahiti (excluding Los Angeles, Paris, Auckland and Narita bases). The information provided here mainly covers the 2016 financial year unless otherwise stated. In addition, the report was prepared in accordance with the general principles set out in the G4 guidelines of the Global Reporting Initiative (GRI), which is an REGULATORY FRAMEWORK internationally recognized standard for Article 225 of the Grenelle II law of 12 July 2010 and its reporting on a company’s economic, implementation decree of 24 April 2012 obliges French companies with over 500 employees and whose net turnover environmental and social issues exceeds 100 million euros to publish information about “the (Correspondence table available social and environmental consequences of their activity on page 17). and on their societal commitments in favor of sustainable development” in their management report. While this decree is not yet applicable in Polynesia, Air Tahiti Nui has voluntarily undertaken a reporting initiative in order to outline its approach and to begin reporting on its progress. 2 Our approach is a long term commitment One of the major issues of sustainable development concerns the role of air transport“ for the economic development of countries and the impact of its activity on global warming. In October 2016, the aviation sector made a historic commitment to be carbon-neutral by 2020, meaning a stabilization of CO2 emissions at the level they will reach in 2020. „ Despite the fact that in Polynesia corporate social responsibility is still a relatively new concept, Air Tahiti Nui has already been applying good CSR practice without being aware of it. In fact, making our cabins lighter, efforts to optimize fuel consumption and the safety of our flights on a daily basis, reconditioning headphones and carrying out customer satisfaction surveys, etc. are all good practices that indeed help to either reduce our impact on the environment or strengthen our contribution to society. In addition, since 2015 we decided to voluntarily commit ourselves to applying the virtuous dynamic of sustainable development within the company, with a CSR to anticipate the many global challenges that Michel MONVOISIN Air Tahiti Nui and French Polynesia will face tomorrow (climate issues, Air Tahiti Nui CEO financial viability, new regulations and customer expectations, etc.) OUR MISSION CSR is an ambitious challenge! The hardest To ensure sustainable air “ service that accompanies the task for Air Tahiti Nui will be to balance our development of the tourism company’s sustainability goals with the numerous industry of French Polynesia, environmental, social and societal issues of while maintaining profitability tomorrow. „ and the high safety standards of our operations. Our main initiative has thus been to devote a CSR team within our organization to take charge of formalizing a global and transversal OUR VALUES policy, which is currently structured around 10 progress commitments, intended to boost the departments and employees of Air Tahiti Nui. To Tatou Manureva : On the eve of its 20th year of operation, Air Tahiti Nui has shown a a referent company, vector for tourism return to profitability, and must rise to new challenges for its activity in French Polynesia (the arrival of the new fleet and compliance with industry undertakings such as CORSIA*, etc.) Client-centered culture *New program for carbon offsetting and reduction measures for Safety is everyone’s business international aviation voted by ICAO. A collective adventure I am therefore delighted to unveil this first CSR 2016 report, which is designed to explain our challenges and outline our CSR approach. Results based culture (shared undertaking and It is also an opportunity for us, in all transparency, to take stock of continual improvement) the numerous efforts we are making on the three environmental, social and societal fundamental pillars. Much remains to be done, Exemplarity but our commitment is long-term and part of a process of continual improvement. I hope you enjoy reading with To Tatou Manureva. 3 18 years in operation KEY FIGURES FOUNDED IN 4.6 billion OPERATING INCOME 1ST POLYNESIAN BUSINESS 1996 IN SALES REVENUE *(35.5 BILLION XPF) LEADING AIRLINE DEPARTING FROM AND TO TAHITI 480 085 PASSENGERS AND 9005 TONNES OF FREIGHT TRANSPORTED. (136 270 TOURISTS GENERATED OVER 37 BILLION XPF IN TOURIST REVENUE FOR 480 085 THE FENUA ACCORDING TO THE IEOM 2016) PASSENGERS 18 896 784 FLIGHT HOURS EMPLOYEES OR 1623 FLIGHTS 2ND LARGEST POLYNESIAN BUSINESS FOR WORKFORCE SIZE LOS ANGELES 5 DESTINATIONS (TAHITI, LOS ANGELES, PARIS, AUCKLAND AND TOKYO) TAHITI SERVING OVER 51 CITIES THANKS TO 5 PARTNERSHIP AGREEMENTS (7 CODE-SHARE AND 43 INTERLINE AGREEMENTS) DESTINATIONS * DIXIT RANKING 2016-2017, CREAPRINT EDITIONS 4 Our achievements and progress objectives Key achievements Progress objectives since 2014-2016 for 2020 Maintaining high standards of Increase the amount of feedback Focus 1 the bi-annual IOSA audit on related to flight safety (+12%) operational safety MAINTAINING RESPONSIBLE Maintain customer satisfaction OPERATIONS FOR OUR FLIGHTS Completion of the 1st carbon Continuation of the GHG Focus 2 assessment (2015) and emissions reduction policy in implementation of 3-year REDUCING THE conjunction with Air Tahiti Nui’s reduction policy. ENVIRONMENTAL IMPACT major fleet renewal projects and relocation to the future head OF OUR ACTIVITY Active participation in the office (2018) European Week for Waste Reduction (EWWR) Preparation for the implementation of CORSIA Launch of the office waste regulations. sorting process (Papeete head office) Development of the training Strengthening client-focused Focus 3 plan for flight crews and ground training programs. BEING A RESPONSIBLE agents. Launch of an employee support EMPLOYER Communication for the program to promote a healthier Manager’s Charter lifestyle. Adherence to the “ Company Reduction in the number of actively engaged in employee workplace accidents (fall or travel health” charter related). Support for charitable projects Working in partnership with Focus 4 and/or associations in favor of business networks and economic ACCOMPANYING THE vulnerable individuals located in actors to develop CSR in DEVELOPMENT OF THE Polynesia and the stations. Polynesia. COUNTRY Development of social and solidarity-oriented projects. 5 Our proactive approach to social responsibility After a diagnostic phase in 2015, our company defined its CSR policy based on the ISO 26 000 standard, the international reference for businesses in terms of corporate social responsibility. Creation of Situational Definition of our Implementation of Dialogue with our CSR unit analysis CSR policy CSR measures stakeholders End 2014 2015 2015-2016 2016-2017 2018-2019 OUR SUSTAINABLE DEVELOPMENT ISSUES OUR CSR STRATEGY The process of identifying our key CSR issues is inspired by the On the basis of this preliminary analysis, Air method of prioritizing our fields of action outlined in the ISO Tahiti Nui has thus set itself a 3-year CSR 26 000 standard. This step-by-step analysis gives us the policy based on 4 focus areas: operations, opportunity to question our practices and commitments with environment, our employees and the regard to our values and to improve our performance while community. ensuring our impact on society and the environment. The next Air Tahiti Nui has defined 10 commitments, step will be to reassess these areas with our stakeholders’ presented to the board of Directors, to the expectations in mind (objective 2018-19). employee representatives and to all employees. FOCUS 1 FOCUS 2 FOCUS 3 FOCUS 4 RESPONSIBLE OPERATIONS ENVIRONMENTAL FOOTPRINT COMMITTED EMPLOYER VECTOR FOR DEVELOPMENT Ensure the responsible To be a respectful actor Promote quality Support the operation of our flights in our environment by of life