SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP

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SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Sustainability strategy 2015-2020
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Contents
    Introduction                    3
    About TUI Group                 4
    Our challenge                   5
    Our approach                    6
    The customer journey            7
    Better Holidays, Better World   8

    Step lightly                    9
         Aviation                   10
         Cruise                     11
         Ground operations          12

    Make a difference               13
         Hotels                     14
         Customers and colleagues   16

    Lead the way                    17
         Innovation                 18
         Skills and education       19
         Collaboration              20

3
                                         2
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Introduction
                                                                 Welcome to Better Holidays, Better World.            Better Holidays, Better World builds
                                                                 This document gives an overview of TUI               on the sustainability achievements and
                                                                 Group’s new sustainability strategy, outlining       commitments of both TUI Travel PLC and TUI
                                                                 our ambitions and commitments from 2015              AG before our merger in December 2014.
                                                                 to 2020.
                                                                                                                      To find out more about sustainability at TUI
                                                                 As the world’s leading tourism business, we          Group, visit www.tui-sustainability.com
                                                                 believe we have a responsibility not only to
                                                                 manage our own impacts on the economy,
                                                                 society and environment, but also to lead
                                                                 the way in understanding, improving and
                                                                 innovating for sustainable tourism.

Only by helping to make the world a better place, can holidays
                                                                                           “Isustainability
                                                                                              am pleased to announce the next, exciting, chapter in TUI’s
                                                                                                            journey - our ‘Better Holidays, Better World’ strategy.
keep getting better - it really is that simple.
                                                                                           I am proud to work for an industry that can stimulate so much
We will work tirelessly to create experiences that are more                                employment and wider economic activity - both in the developed and
responsible and more enjoyable, one holiday at a time.                                     developing world - in regions where social and economic stability is
                                                                                           increasingly important.
By stepping lightly                                                                        I am also mindful that in parallel to these benefits, tourism’s operations
and reducing the impact of holidays on the environment;                                    contribute to the depletion of natural resources. Our interest
                                                                                           undoubtedly lies in stimulating systemic change to more sustainable
By making a positive difference
for people and their communities;
                                                                                           tourism practices and policies, and in leading by example.
                                                                                           Fritz Joussen,                                               “
                                                                                           CEO, TUI Group
We will lead the way
in pioneering sustainable tourism so that travel and

                                                                                           “With
sustainability really can become inseparable.
                                                                                                 the ‘Better Holidays, Better World’ 2015-2020 strategy, the TUI
That’s what we mean when we say                                                             Group has set itself ambitious goals for sustainable business, spanning
Better Holidays, Better World.                                                             environmental, social and economic sustainability. Today’s businesses
                                                                                           are expected to act as ‘corporate citizens’ and we take this responsibility
                                                                                           seriously. We have defined goals which all businesses in the TUI Group,
                                                                                           all 77,000 colleagues, can work towards and integrate into daily work.

                                                                                           Holidays open up new horizons, peoples and cultures. He who travels
                                                                                           the world, understands it better. Tourism is a critical driver of many of
                                                                                           the world’s economies, serving to improve destination infrastructure and
                                                                                           living conditions. In this context, TUI seeks to be recognised as a reliable
                                                                                           employer, investing particularly in developing the professional skills of
                                                                                           young people in destinations.

                                                                                           Our focus will be to expand the positive impacts of tourism, whilst
                                                                                           simultaneously working to reduce the negative impacts. We know we
                                                                                           can achieve a great deal.
                                                                                           Thomas Ellerbeck,          “
                                                                                           Member of the Group Executive Committee,
                                                                                           Group Corporate & External Affairs, TUI Group
                                                                                                                                                                          3
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
About TUI Group

Every year, TUI Group takes millions of people on holiday. Whether it’s a cruise, a beach resort
or an adventure on the other side of the world, we offer a fantastic range of unique holiday
experiences.

The world’s leading tourism business at a glance*

                                                                                                   Our track record
                                                                                                   Both TUI Travel PLC and TUI AG have a long history of commitment to sustainability. We are
                                                                                                   proud to have been recognised over many years by some of the leading experts in the field.

                                                                                                   Carbon                             Dow Jones

                                                                140                                Disclosure Project
                                                                                                   In 2014, TUI was featured
                                                                                                   in the Climate Disclosure
                                                                                                                                      Sustainability Index
                                                                                                                                      TUI is the only tourism group
                                                                                                                                      to feature in the reputable
                                                                                                                                                                        FTSE4Good
                                                                                                                                                                        TUI is listed on the
                                                                                                                                                                        FTSE4Good Index
                                                                                                   Leadership Index (CDLI)            Dow Jones Sustainability          in recognition of our
                                                                                                   in the UK and Germany              Index Europe.                     transparency and for meeting
                                                                                                   for its approach to carbon                                           strict social, environmental
                                                                                                   disclosure. In the UK, TUI was                                       and governance standards.
                                                                                                   ranked joint first with 100
                                                                                                   points in the FTSE 350.

                                                   *  Based on numbers from FY 2014
                                                   ** As of 13th May 2015                          Other indices
                                                                                                   TUI is also listed in the sustainability indices Ethibel Excellence Index, ECPI Ethical Index €uro
                                                                                                   and STOXX Global ESG Leaders Indices.

                                                                                                                                                                                                        4
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Tourism and                                       Our core product is the quality of customers’
                                                                                                    holiday experiences. These experiences
                                                  the ECONOMY                                       are dependent on beautiful biodiverse
                                                                                                    destinations, thriving communities,
                                                  Tourism has been credited with many               predictable weather and personal comfort.
                                                  positive impacts, from economic growth and
                                                  the promotion of emotional and physical           The World Economic Forum considers climate
                                                  wellbeing to being a force for world peace,       change, water and unemployment to be
                                                  tolerance and understanding.                      among the top ten global risks in terms of
                                                                                                    likelihood and impact for the next ten years –
                                                  We know that tourism is the main source of        all factors that would threaten the quality of
                                                  foreign exchange in one-third of developing
OUR Challenge
                                                                                                    our holidays.
                                                  countries*, making it an important tool to
                                                  help people out of poverty. Our industry          That means reducing our carbon footprint
                                                  employs 277 million people across the world       and tackling local environmental challenges
                                                  – that’s one in every 11 people in work**.        are not only good for the planet and local
                                                                                                    people – they are critical to the future
                                                  Tourism also generates significant indirect and   success of travel and tourism.
                                                  induced economic benefits in a ripple effect
                                                  across the world.                                 Meeting our
                                                  But the socio-economic impacts of tourism         CHALLENGES
Tourism is a relatively young industry.           are much more complex than this top-
Although travellers of all types have existed     level analysis would suggest. The localised       TUI Group’s response to our socio-economic
for many years, mainstream tourism –              socio-economic impacts of tourism can             and environmental challenges can be found
affordable international travel enabling many     be multifaceted, and vary considerably            throughout this document. We seek to lead
of us to take a holiday at least once a year –    depending on the context.                         the way through practical examples wherever
dates only from the mid-1950s.                                                                      possible, and our work is guided by this
                                                  Our measuring the impacts of tourism              conviction. Tourism is a force for good, and we
Today, travel and tourism is a globally           project (see page 17) is a major step in          can make it even better.
significant sector, accounting for 9% of the      understanding the complex impacts of our
world’s GDP. And it’s set to grow fast: the UN    industry. We hope it will help shape the way      Better Holidays, Better World.
World Tourism Organization predicts that the      we and other businesses in our industry
number of international arrivals worldwide will   operate in the future.
grow from 1.1 billion in 2014 to 1.8 billion in
2030.
                                                  Tourism and
                                                  THE ENVIRONMENT
                                                  Our industry has a significant carbon
                                                  footprint, accounting for 5% of global
                                                  carbon emissions. Half of that footprint is
                                                  attributable to aviation, making fuel reduction
                                                  (and, in the longer term, finding more
                                                  sustainable alternatives to aviation fuel) a
                                                  critical challenge for travel and tourism.

                                                  We face additional environmental challenges
                                                  at a local level. Water, for example, is likely
                                                  to become increasingly scarce in the coming
                                                  years in some destinations – and the waste
                                                  generated by tourism needs to be managed
                                                  to ensure it does not create a problem for
                                                  destinations.

                                                  * UNEP, 2014      ** UNWTO, 2015
                                                                                                                                                      5
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Better Holidays, Better World framework
    Our approach                                                 Our research showed there were three levels of influence in which TUI Group needs to make
                                                                 an impact.

                                                                                    step                                    Reducing the environmental
                                                                                   lightly                                  impact of holidays through
                                                                                                                            our own operations

                                                                                   make                                     Creating positive change for people
                                                                                                                            and communities through our
                                                                                                                            value chain and customers
We are the world’s leading tourism business, with a real
                                                                                                                            Pioneering sustainable tourism
opportunity to shape the future of sustainable tourism.                           lead                                      influencing the wider industry
Over the past year we have engaged with key stakeholders –
                                                                                 the way                                    and beyond
those who have an interest in our company and its activities
– from inside and outside TUI Group, to help us define and
improve our sustainability strategy.
                                                                 1. Step lightly
                                                                 We have the greatest level of control over our airlines, hotels, cruises, coaches, shops
We asked them several specific questions about our impacts,
                                                                 and offices. So the clear starting point for Better Holidays, Better World is to reduce the
activities, and how we can work with others to make a
                                                                 environmental impact of our operations.
difference. But the overall question we sought to answer was
this: how can the world’s leading tourism business show real
                                                                 We will operate Europe’s most carbon-efficient airlines and reduce the carbon intensity of our
leadership in sustainable tourism?
                                                                 operations by 10% by 2020.
Their responses helped us to shape Better Holidays, Better
World, which sets out TUI’s sustainability ambitions for 2020.   2. Make a difference
                                                                 Our products are the special and memorable holidays we deliver for our customers. Although
In the past decade, TUI has invested substantially in            many of our hotels and excursions are managed by partners and suppliers, we can still exert a
programmes with suppliers and community stakeholders to          strong influence over the sustainability impacts of our holidays, including the way we engage
boost local economic spend – but we know there is much           customers and colleagues in sustainable tourism.
more to learn about how to measure and manage our
impacts.

We partnered with PricewaterhouseCoopers (PwC) and the
                                                                 We will deliver 10 million ‘greener and fairer’ holidays
                                                                 per year by 2020, enabling more local people to share           “Itambitions
                                                                                                                                     is great to see TUI set out its
                                                                                                                                               for the next five years.
                                                                 in the benefits of tourism.
Travel Foundation to pilot a new, holistic method to measure                                                                     This is an important milestone on its
the impacts of tourism. This project helped us to identify                                                                       leadership journey - it is modelling
many of our material impacts (see page 17).                      3. Lead the way                                                 not only making a positive difference
                                                                 We believe we should use our influence to drive                 in its own business, but in the wider
                                                                 sustainability throughout travel and tourism.                   world. Through ‘Leading the Way’
                                                                 We want to be at the forefront of innovation and                TUI takes responsibility for their
                                                                 investment into sustainable tourism, and to spread              wider operating context and playing
                                                                 the word throughout our industry and beyond.                    a key role in shaping the tourism
                                                                                                                                 industry of the future - that is real

                                                                                                                                             “
                                                                 We will invest €10 million per year by 2020 to enhance          leadership.
                                                                 the positive impacts of tourism, creating the TUI Care
                                                                 Foundation to support this work.                                Stephanie Draper,
                                                                                                                                 Director of Systems Innovation,
                                                                                                                                 Forum for the Future

                                                                                                                                                                          6
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
The customer
  journey
  We want to make sure that every holiday we
  offer contributes to a better world, and we can
  only do that by working to increase our positive
  impacts and decrease our negative impacts
  across the whole customer journey.

                                                                                                                       Supporting our hotels to
                                                     Flying Europe’s most
                                                                                                                       achieve best practice
                                                     carbon-efficient
                                                                                                                       sustainability standards
                                                     aircraft
                             Promoting                                                                                                                              Creating more
                Reducing                                                                                                                                            sustainable
                             greener and                                                                              Supporting our hotels to Enabling
                                                                                                                       H O T E L
                CO2 from                             Flying Europe’s most
                             fairer holidays                                                                          achieve best practice      colleagues to be   excursions           Enabling local
                our shops                            carbon-efficient Operating our      Greening our                 sustainability standards ambassadors for                           people to
                                                     aircraft         cruise ships       coach fleet
                                                                      more efficiently                                                           sustainable        Creating more        benefit from
                Reducing     Promoting
                                                                                                                       H O T E L                 tourism
                                                                                                                                                 Enabling           sustainable          tourism
                CO2 from     greener and
                             fairer holidays                                                                                                     colleagues to be   excursions           Enabling local
                our shops                                             Operating our      Greening our
                                                                      cruise ships                                                               ambassadors for                         people to
                                                                                         coach fleet                                             sustainable                             benefit from
Creating more                                                         more efficiently
                                                                                                                                                 tourism                                 tourism
sustainable                                                                                             Engaging                  Investing in
holidays                                                                                                customers with            tourism skills
                                                                                                        sustainable               and education
Creating more                                                                                           tourism                                                         Working with destinations on the
sustainable                                                                                             Engaging                                                        sustainable management of tourism
                                                                                                                                  Investing in
holidays                                                                                                customers with
                                                           Protecting biodiversity                                                tourism skills
                                                                                                        sustainable               and education
                                                           and championing
                                                                                                        tourism                                                         Working with destinations on the
                                                           animal welfare
                                                                                                                                                                        sustainable management of tourism
                                                           Protecting biodiversity
                                                           and championing
                                                           animal welfare

                                                                                                                                                                                                          7
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Better Holidays,
                                                                            Better World
“
Thank you to the many internal
and external stakeholders
who have contributed to the                                                 Ambitions by 2020             Commitments by 2020
creation of the 2020 ‘Better
Holidays, Better World’ strategic                                           We will operate Europe’s      1) We will drive environmental improvements
commitments and framework.                                                  most carbon-efficient         across our aviation operations
                                                                 tal
                                         Reducing the environmen            airlines and reduce the       2) We will drive environmental improvements
As the worlds largest tourism            impact of holidays                 carbon intensity of our       across our cruise operations
business, we recognise our                                                  operations by 10% by 2020
responsibility to pioneer and                                                                             3) We will drive environmental improvements
influence change for more                                                                                 across our ground operations
sustainable tourism. We do not
underestimate the sustainability
challenges that lie ahead for us
and for the wider industry as
international tourist arrivals grow
from 1.1 billion in 2014 to 1.8         Creating pos
                                                     itive change           We will deliver 10 million    4) We will work with hotel suppliers to increase
                                        people and c              for                                     their positive impact on the local community
billion in 2030.                                    ommunities              greener and fairer holidays   and to protect the environment
                                                                            per year by 2020, enabling
Better Holidays, Better World is                                            more local people to share    5) We will showcase world-class sustainability
our response to these challenges                                            in the benefits of tourism    standards across our own TUI hotels and
                                                                                                          concept partner hotels
and we are delighted to see
that tourism will also play and                                                                           6) We will help customers and colleagues to
important role in the new UN                                                                              create positive change
Sustainable Development Goals.

We welcome your feedback on
our plans and our performance,
                                                                            We will invest €10 million    7) We will innovate for a more sustainable
as well as your collaboration in                                                                          future for tourism, and share our findings with
                                                                            per year by 2020 to           the industry
making it a reality. Contact us on
                                                          sustainable       enhance the positive
sustainability@tui.com                      Pioneering
Jane Ashton,
                        “                   touris m a c ro s s the world   impacts of tourism,
                                                                            creating the TUI Care
                                                                                                          8) We will invest in youth, tourism skills and
                                                                                                          education to create employment opportunities
                                                                                                          in our source markets and destinations
Director of Sustainability, TUI Group                                       Foundation to support this
                                                                            work                          9) We will collaborate with destinations on the
                                                                                                          sustainable management of tourism

                                                                                                                                                             8
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Reducing the environmental impact
                                 of holidays

                       step
                                 Climate change is a critical global challenge and the next five to 10 years
                                 will be key for reducing global emissions and moving towards a lower
                                 carbon economy.

                       lightly
                                 As a company with a substantial carbon footprint – a total of 6,879,976
                                 tonnes of carbon dioxide in 2014 – we acknowledge the necessity to
                                 transition to a lower carbon economy and we will continue to reduce the
                                 environmental impacts of our operations.

                                 Managing our carbon footprint makes good business sense for TUI.
                                 In the short term, reducing energy and fuel use saves us a sizeable
                                 amount of money. Across TUI, improved management of energy, natural
                                 resources and fuel saved a total of €53 million between 2012 and 2014.*

                                 In the long term, combating climate change will be critical for our
                                 industry as a whole. We need to continue to sell quality holiday
                                 experiences, which rely on beautiful biodiverse destinations, thriving
                                 communities, stable weather systems and personal comfort. All of these
                                 are threatened by climate change.

                                 Our carbon management programme covers aviation, hotels, cruise,
                                 offices, retail shops and ground transport emissions. These areas of our
                                 business each have clear and stretching targets for improvement.

We will operate
Europe’s most
                                                                                        Airlines & Aviation 80.2%
                                                                                        Hotels & Resorts    9.6%
                                                                                        Cruise              8.4%
                                                 TUI Group’s

carbon-efficient
                                                                                        Other**		 0.9%
                                                   carbon                               Major Premises      0.5%
                                                  footprint                             Ground Transport    0.4%

airlines and reduce
the carbon intensity
                                 Aviation accounts for over 80% of our carbon footprint, and a key area
                                 of focus is therefore on reducing the climate impact of our TUI airlines.
                                 We already operate the most carbon-efficient airlines in Europe, have a
                                 strong history of backing new, carbon-saving technologies, and support

of our operations by             progressive climate policies for aviation.

                                 But we can achieve more, and TUI Group has strong climate-related

10% by 2020
                                 commitments from 2015 to 2020.

                                 * A n approximate figure of TUI Travel 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.
                                 **Indirect emissions from our value chain including business travel by air.                   9
SUSTAINABILITY STRATEGY 2015-2020 - TUI GROUP
Aviation
TUI Group owns or manages more than                          That means our first priority must be to
130 aircraft across six airlines, making                     continue reducing fuel consumption as
us Europe’s 7th largest airline fleet. Our                   much as possible before new fuels become
airlines accounted for around 80% of our                     commercially available.
carbon footprint in 2014, and mitigating the
climate impact of aviation is one of our most                We are leading the way by showing that more
significant sustainability challenges.                       efficient flying is possible: TUI airlines already
                                                             emit 30% less carbon dioxide than the
Global aviation is a growing industry with a                 industry norm (see chart below), and we have
substantial carbon footprint. Aviation’s long-               set stretching goals to reduce our emissions
term challenge is to find a more sustainable                 further by 2020.
alternative to kerosene, the fuel used for air
travel, and we are actively involved in several              We believe that a global solution is needed
programmes and partnerships that are                         to manage the carbon emissions of the travel
pursuing sustainable aviation fuels.                         and tourism sector. We welcome the work of
                                                             the International Civil Aviation Organisation
Although there has been significant progress                 (ICAO), which is committed to developing a
in recent years, sustainable fuels are not                   global market-based mechanism for aviation
yet financially competitive with kerosene.                   by 2020.

Where we are                                                                                                              Dreamliner
TUI airlines’ carbon efficiency versus the largest airlines in Europe*                                                    We are the only integrated tourism business
                                                                                                                          to fly the Boeing 787 Dreamliner, which
                                                                                                                          emits around 20% less carbon dioxide per
                                                                                                                                                                          Commitments
                                                                              *  Data from the 4 largest budget                                                        1) We will drive environmental
    Global airlines (average)**                                 98.6g               and 4 largest scheduled airlines      passenger kilometre than comparable aircraft.
                                                                                    in Europe based on passenger          It also produces considerably less noise        improvements across our aviation
    European Scheduled airlines (average)                     95.7g                 numbers. Latest publicaly available
                                                                                    data, August 2015.                    pollution – around 60% less than the aircraft   operations
                                                                                                                          it replaces.
    European Budget airlines (average)              82.4g                     ** Global airlines emissions metrics,
                                                                                   taking an average of short & long                                                      • W e will reduce TUI airlines carbon
    TUI airlines (average)               67.6g                                     haul operations (UK Government).       We operate eight 787 Dreamliner planes, and        emissions per passenger km by 10%
                                                                                                                          this will expand up to 17 aircraft by 2019.     • All TUI airlines will be ISO 14001
                                                                              *** 2 014 figure restated based on the     In 2014 we carried one million long-haul
0             20             40          60             80              100        latest European airline emissions                                                         certified
                                                                                   monitoring standard                    passengers on the Dreamliner and received       • Our airlines will source food,
         gC02/RPK (grams of C02 per revenue passenger kilometre)                                                          exceptional feedback from our customers on         beverages and other supplies
                                                                                                                          their experience.                                  responsibly
• W
   e have reduced our airlines’ CO2/RPK by                  • T
                                                                UIfly was named ‘most climate-efficient
                                                                                                                                                                          • We will segregate cabin waste and
  more than 10% over the last six years. We                    airline in the world with 1 million
                                                                                                                                                                             work with destination airports to
  did this by investing in more fuel-efficient                 passengers’ for the second year in a row
                                                                                                                                                                             improve waste management and
  aircraft, identifying ways to conserve                       in the 2014 atmosfair Airline Index, and
                                                                                                                                                                             recycling
  fuel, and flying with higher passenger                       Thomson Airways won ‘best aviation
  capacities.                                                  programme for carbon reduction’ at the
                                                               2014 World Responsible Tourism Awards.
                                                                                                                                                                                                                   10
Cruise
Cruise holidays are growing in popularity.         The cruise industry could be seen as a
In 2014, the global cruise industry carried        forerunner within the shipping industry in
around 22 million passengers on over 500           applying state of the art and innovative
ships. Cruise ships represent approximately        environmental technologies. Our cruise
0.5% of the global shipping industry which         operations are playing their part to make the
has over 99,000 ships.                             industry more sustainable. We are constantly
                                                   improving the environmental performance
Cruise operations come with their own              of our fleet and investing in new, more fuel-
sustainability challenges. Chief among them        efficient ships as we grow.
are carbon dioxide emissions. Cruise ships
also emit sulphur and nitrogen particles and       TUI Group operates 13 cruise ships across
other fine particulate matter, causing air         our three brands:
pollution.
                                                   • T UI Cruises, a joint venture with Royal
Passengers on a cruise generate as much               Caribbean, featuring premium, all-inclusive
waste as tourists on land, the challenge for          holidays
cruise ships is to manage these amounts on         • Hapag-Lloyd Cruises, consisting of a fleet
a relatively small area of the vessel. Therefore      of luxury and expedition ships
waste prevention and effective waste               • Thomson Cruises, offering a wide range of
management are crucial tasks for the crew             great value cruises
and management.

                                                                                                    TUI Cruises launches
                                                                                                    carbon-efficient ships
                                                                                                    TUI Cruises launched Mein Schiff 3 in 2014
                                                                                                    and Mein Schiff 4 in 2015, cruise ships
Where we are                                                                                        with exceptional environmental credentials.

• T
   UI Cruise’s Mein Schiff 4 has been             • T
                                                      homson Cruises reduced carbon
                                                                                                    They are 30% more energy efficient than
                                                                                                    comparable ships and set a new standard for
                                                                                                                                                      Commitments
  ranked the most environmentally efficient          dioxide emissions per passenger night          the industry.                                     2) We will drive environmental
  cruise ship operating in the market by the         by 24% between 2007 and 2014 by                                                                  improvements across our cruise
  German Nature and Biodiversity Union               making changes to cruise itineraries and       The ships save fuel through a combination         operations
  (NABU) in 2015.                                    retrofitting its ships with energy-saving      of the latest environmental technology and
                                                     technologies.                                  strict environmental management practices. A      • W e will reduce carbon emmisions
• H
   apag-Lloyd Cruises’ newly-built MS                                                              smart on-board energy management system,             per cruise passenger night by 10%
  EUROPA 2 is equipped with a catalyst                                                              efficient air conditioning, innovative lighting   • All TUI cruise ships will be ISO
  that reduces nitrogen oxide emissions by                                                          controls and the use of waste heat from              14001 certified
  almost 95% and partially filters soot. It                                                         the engines all contribute to a significantly     • Our cruise operations will
  was the first cruise ship to be awarded                                                           reduced carbon footprint.                            make improvements in water
  Energy Efficiency Design Index (EEDI)                                                                                                                  consumption, waste management,
  certification by Germanischer Lloyd.                                                              Mein Schiff 3 and 4 also produce up to 99%           and sulphur and nitrogen emissions
                                                                                                    fewer sulphur emissions through new systems
                                                                                                    that treat exhaust fumes before releasing
                                                                                                    them into the air.
                                                                                                                                                                                              11
GROUND OPERATIONS
TUI’s ground operations consist of               Although offices, shops and ground transport
approximately 70 major office premises, 300      make up just 2% of our total emissions, they
hotels, 1,800 retail shops and 300 transport     are an important part of our carbon reduction
vehicles.                                        programme. We have made significant carbon
                                                 reductions in the past few years, especially
Together, our ground operations make up          through energy-saving initiatives in retail
11% of our total carbon emissions, the           shops and reduction in printed brochure                                                             TUI UK & Ireland rolls
                                                 pages.
majority of which is from TUI hotels (see page                                                                                                       out energy dashboard
14 for details of our plans for hotels).
                                                                                                                                                     An energy dashboard was rolled out to all
                                                                                                                                                     Thomson and First Choice shops, giving a
                                                                                                                                                     simple, real-time indication of how each shop
                                                                                                                                                     is performing against its energy targets.

                                                                                                                                                     The dashboard has helped reduce carbon
                                                                                                                                                     dioxide emissions by 24% over three years
                                                                                                                                                     – and, when shop managers were asked
                                                                                                                                                     to respond to regular updates to change
Where we are                                                                                                                                         employees’ behaviour, we saw a 19%
                                                                                                                                                     reduction in carbon in a single year.
• W
   e reduced total carbon dioxide emissions
  from our retail shops by 25% between                                                                                                               The installation of the dashboards was
  2012 and 2014.                                                                                                                                     one of the reasons that TUI UK & Ireland
                                                      Commitments                                                                                    achieved ISO 50001 certification for energy
                                                                                                                                                     management in January 2015. We are one of
• T
   hrough more efficient use of our coach            3) We will drive environmental
  fleet, we made a substantial reduction of                                                                                                          only approximately 100 companies in the UK
  22% in total carbon dioxide emissions in
                                                      improvements across our                                                                        to achieve the certification.
  the same period.                                    ground operations

• B
   etween 2012 and 2014 we reduced                   • W e will reduce carbon emissions
  carbon dioxide emissions from the
  manufacturing of brochures by 51%,
                                                         from our offices, retail shops
                                                         and brochures by 20%
                                                                                                 Ultramar trains
  printing 8.2 billion fewer brochure pages.          • Our hotels will reduce carbon           drivers in fuel-
  We are making reductions in customer                   emissions per guest night by
  printed materials. One of the new                      10%                                     efficient techniques
  technologies allowing us to make these              • Our ground transport fleet will
  significant reductions is the TUI Digital              reduce carbon emissions per             Ultramar, our largest ground transport
  Assistant app, a ‘one stop shop’ for                   kilometre by 10%                        company, based in Spain and carrying 10
  customers that has been downloaded                                                             million passengers per year, has several
  over a million times.                                                                          measures in place to improve fuel efficiency.
                                                                                                 These include training drivers on more
                                                                                                 efficient driving techniques, investing in new,
                                                                                                 fuel-efficient vehicles, and installing satellite
                                                                                                 navigation in all vehicles for route optimisation
                                                                                                 and to monitor fuel consumption.

                                                                                                                                                                                                     12
Creating positive
                         change for people and
                         communities
                         Beautiful biodiverse and unique destinations
                         are the heart of our holidays, and we are proud
                         of the role our industry plays in protecting and
                         preserving them. Tourism can be a real force for
                         good, from generating the transfer of wealth to
                         promoting cultural understanding and tolerance.

                         But we know that travel and tourism can also
                         have unintended negative consequences. Water,
                         for example, is likely to become increasingly scarce
                         in the coming decades and waste management is
                         a challenge in many destinations.

                         We rely on thriving communities to welcome
                         our customers in destinations. That means it’s
                         important that the benefits of tourism reach
                         the local community, in the form of jobs and
                         educational opportunities and human rights are
                         protected along our value chain.

We will deliver 10
                         One of our key areas of focus is the hotel – the
                         largest component of the holiday experience.
                         Our expectation of hotels that work with us is
                         that they will commit to social and environmental

million ‘greener
                         good practice. This expectation is based not
                         only on our commitment to sustainable tourism,
                         but also on good business sense. Reducing the

and fairer’ holidays
                         consumption of energy and water saves money
                         for hoteliers, and TUI customer surveys indicate
                         that our most sustainably-managed hotels deliver
                         higher quality and customer satisfaction.

per year by 2020,        We believe that sustainability can enhance the
                         holiday experience for our customers. TUI Group’s

enabling more local
                         market research shows that customers value
                         learning about the country and its people. We
                         have created a set of exclusive excursions called
                         the ‘Collection’, giving customers a true taste

people to share in the
                         of the destination with great feedback from
                         customers.

benefits of tourism
                                                                                13
Hotels
TUI Group works with over 5,000 hotel            The best way for us to make tourism more
suppliers around the world. We own or            sustainable is to offer ‘greener and fairer’
manage over 300 of these hotels, and our
global portfolio of over 210,000 beds includes
                                                 holidays. A ‘greener and fairer’ holiday is
                                                 one that includes a hotel with a credible
                                                                                                  Commitments
the key hotel brands RIU, ROBINSON, TUI          sustainability certification recognised by the   4) We will work with hotel
MAGIC LIFE and TUI Blue.                         Global Sustainable Tourism Council (GSTC),       suppliers to increase their positive
                                                 demonstrating that the hotel cares for the       impact on the local community
In addition, we work closely with partners       environment, their employees and the local       and to protect the environment
on around 200 ‘international concepts’ –         community.
including Sensatori, SENSIMAR and Family
Life – that are designed for specific customer   Hoteliers who wish to work with us are           • A
                                                                                                     ll hotels in our tourism business
segments.                                        expected to achieve a credible sustainability      portfolio will subscribe to credible
                                                 certification. We go even further with our         sustainability certifications
Our hotels are the driving force for improving   TUI hotels and international concepts:
our sustainability performance in our            sustainability is built into the concept
destinations. Each of them plays a significant   specification of these hotels, and we set
role in managing our impacts on the local        specific sustainability targets.
community, economy and environment.

                                                                                                  Commitments
                                                                                                  5) We will showcase world-class
                                                                                                  sustainability standards across our
Where we are                                                                                      TUI hotels and concept partner
• W
   e have incorporated environmental and        • S
                                                    ince 2007, we have lent support to           hotels
  social minimum standards into contracts          the Travelife sustainability certification
  with hotel suppliers and developed a             scheme. TUI is the largest supporter of        • W e will develop and roll out
  Supplier Code of Conduct.                        Travelife, playing an active role on the          the TUI EcoResort standard to
                                                   Travelife Board, and in 2014 we helped            drive exemplary sustainability
• B
   etween 2012 and 2014, we took 11.5             to develop new, stricter criteria for the         performance
  million customers on ‘greener and fairer’        scheme.                                        • We will develop a support forum
  holidays that included a hotel with a                                                              for hotels to share sustainability
  credible sustainability certification.         • W
                                                    e have also begun to monitor and                learnings and drive improvements
                                                   improve the local economic contribution        • Our hotels will include innovative
• O
   ver half of TUI hotels and our                 of our hotels. Information provided by 170        environmental technologies,
  concept partner hotels currently have            hoteliers shows that 58% of employees             invest in skills training for staff,
  a sustainability certification that is           are from the local region, and that 45% of        develop local skills, and favour local
  recognised by the Global Sustainable             the food served is from the same area.            sustainable procurement
  Tourism Council (GSTC).

                                                                                                                                              14
ROBINSON Club Reduces
carbon in Mallorca
Heat production in the ROBINSON Club
Cala Serena in Mallorca is saving significant
amounts of carbon. Three 200-kW biomass
boilers generate hot water, heating and
pool heating. Thanks to the installation of a
wood pellet system, around 220,000 litres of
conventional heating oil are saved every year.

Sensatori sources
locally in Mexico
Our Sensatori hotel in Mexico is supporting
a beekeeping community that sells honey-
based products to local hotels. They have        RIU preserves                                  The site is part of a biological corridor called
                                                                                                Chorotega, helping to maintain vital links
also supported our Jungle Jams project, run      biodiversity in                                between the nature conservation areas. The
in conjunction with the Travel Foundation.
Mayan women from the remote community            Costa Rica                                     reserve is home to more than 250 plant
of Chumpon are earning an income selling                                                        and animal species, some of them facing
jam to this hotel (and others in the area),      RIU has set up a private conservation area     extinction.
giving visitors a taste of the real Mexico.      in Costa Rica, covering 200 hectares of land
                                                 in the coastal mountain range of Matapalo,     A detailed management plan has been drawn
                                                 close to two RIU hotels. The reserve has       up, setting out all the measures and activities
                                                 been established by working in partnership     to be undertaken, including combating illegal
                                                 with public and private entities and hopes     hunting and preventing forest fires.
                                                 to become an example of successful local
                                                 management of natural resources.

                                                                                                                                                   15
Customers and
colleagues
We believe our role as a tourism business is
to help our 77,000 colleagues and 30 million
customers discover their smile by making
the link between sustainable holidays and a         Commitments
better holiday experience.                          6) We will help customers and
                                                    colleagues to create positive
It’s beginning to work: customer demand for
                                                    change
more sustainable holidays is on the increase.

Research undertaken by the Federal Ministry         • W e will communicate about
of the Environment in Germany in 2015                  sustainability throughout the
found that 61% of consumers want to book               customer journey
a sustainable holiday. TUI Group marketing          • Our colleagues will be
research found a similar trend, establishing           ambassadors for sustainability
that half of all customers surveyed would be        • Our destination management
willing to book a more sustainable holiday if          companies and excursions will
one were available.                                    meet our sustainability standards

Where we are
• C
   ustomers in five of our six key source
                                                                                                    TUI excursions with a                             sustainability (based on ABTA’s sustainable
                                                                                                                                                      excursion criteria), showing that it is bringing
                                                    initiatives such as sustainability activities
  markets rank us as the leading holiday            in Kids’ Clubs, sustainable excursions and      local flavour                                     benefit to local people and minimising its
  company for sustainability.                       customer donation schemes.                                                                        impact on the environment.
                                                                                                    The Collection is a set of exclusive excursions
• M
   any TUI tour operators explicitly identify   • In July 2015, TUI Group supported the           that have been developed by TUI and               Over 84,000 customers enjoyed these
  and promote ‘greener and fairer’ holidays         Travel Foundation’s Big Holiday Beach           tailored to give customers a true taste of the    excursions last year, and customer
  as part of their portfolio.                       Clean, part of Make Holidays Greener            destination. They were launched in 2014 and       satisfaction research showed that they valued
                                                    month. Our colleagues organised beach           are now offered by the majority of our tour       the ‘sustainability’ and ‘local flavour’ aspects
• W
   e communicate with customers on                 cleans in over 50 destinations, involving       operators.                                        most of all.
  sustainability throughout their holiday           over 1,300 colleagues and holidaymakers
  journey, helping them to take simple and          and collecting 1,000 bags of rubbish            Each excursion in the Collection must be
  meaningful actions that make a difference.                                                        exclusive to TUI and meet specific criteria for
  We engaged more than 6 million
  holidaymakers between 2012 and 2014 via

                                                                                                                                                                                                         16
Pioneering sustainable tourism
                       across the world
                       TUI Group is the world’s leading tourism business. We believe that means
                       we have a unique responsibility towards our industry. Our scale gives us
                       the resources, reach and credibility to build the resilience and positive
                       impacts of travel and tourism.

                       Our role in driving sustainable tourism is to support our suppliers and
                       customers and influence our whole industry towards a more sustainable
                       way of operating.

                       To achieve this, we need cutting-edge research that allows us to
                       understand our impacts – both positive and negative – and the most
                       impactful actions we can take to enhance the benefits of tourism. TUI
                       Group partnered with PricewaterhouseCoopers (PwC) and the Travel
                       Foundation to pilot a new, holistic method of impact measurement
                       which quantifies and values the economic, tax, environmental and
                       social impacts of tourism, called TIMM (Total Impact Measurement and
                       Management).

                       The project focused on 60,000 customers in eight hotels used by TUI in

We will invest         Cyprus in 2013, and found that TUI Group’s net impact on destinations is
                       overwhelmingly positive, with very significant economic and tax benefits
                       of €84 per guest per night. This far exceeded the negative environmental

€10 million per
                       (-€4) and social (-€0.2) costs.

                       The project identified three clear areas for TUI to maximise its positive
                       impacts on destinations:

year by 2020 to
                       • Increase local sourcing of food and beverages in our hotels and
                          facilitate greater access to our customers for local businesses and
                          service providers.

enhance the positive
                       • Support skills development and training for those working in
                          our hotels, particularly through work placements for tourism and
                          hospitality students.
                       • Influence destination governments on sustainability, encouraging

impacts of tourism,
                          them to protect biodiversity, their local environment, communities and
                          culture.

creating the TUI
                       To find out more about the TIMM project, read the full report here or
                       watch a short video here

                       To make progress in these areas we will invest €10 million per year by

Care Foundation to
                       2020 into major projects and strategic partnerships with destinations to
                       drive forward our understanding and actions in this area. We will create
                       the TUI Care Foundation to facilitate much of this work.

support this work      By innovating and collaborating to tackle the industry’s biggest
                       challenges, we believe we will help to future proof our own business and
                       tourism across the world.

                                                                                                   17
Innovation
To achieve our aims we need to innovate in      TUI Group has committed to leading our
all areas of our business – aviation, hotels,   industry in innovation for sustainable tourism.
and the measurement of our own impacts.         That means we will pilot projects within our
                                                operations where possible, replicate the
Many of the initial ideas for our sustainable   successful pilots across our business, and
tourism projects come from our colleagues       encourage the wider industry to adopt them
at TUI Group, who understand the workings       as well.
of our industry better than anyone else. We
intend to take a collaborative approach to
our innovation projects, involving colleagues
and other stakeholders wherever we can.

Where we are
• T
   UI has been first in line to adopt new
  aviation technologies that reduce fuel use.
  TUI airlines were the launch customers
  for the Boeing 787 Dreamliner, which has
                                                                                                  TUI partners with                                New technologies being tested include a wing
                                                                                                                                                   coating that can protect the leading edge
  20% lower CO2/RPK than comparable                Commitments                                    Boeing to reduce                                 from insects sticking to it, thereby reducing
  aircraft, in the UK, Belgium and the             7) We will innovate for a more                 carbon emissions                                 drag on the aircraft. In partnership with
  Netherlands. We are also the first airline       sustainable future for tourism, and                                                             NASA, the Boeing team also tested green
  in Europe to use innovative split scimitar                                                      We partnered with Boeing for a phase of          diesel (a blend of jet fuel with green diesel
  winglets on our aircraft, reducing fuel          share our findings with the industry                                                            made from material that included waste
                                                                                                  their ecoDemonstrator Programme, which
  burn by up to 2%.                                                                               aimed to accelerate the development and          animal fats and used in cooking oil).
                                                   • W e will investigate the holistic           testing of environmental technologies to
• In 2012, we ran a Green Ideas Factory              impacts of holidays and develop             reduce noise and carbon emissions from           The first test flight took off from Seattle in
   competition, asking for colleagues’ ideas          strategies to minimise the negative         commercial aviation.                             March 2015, and trials continued throughout
   on how we could green our business.                impacts and maximise the positives                                                           the summer. The plane was dismantled and
   We received over 120 ideas from 18              • Our airlines, cruise operations             As part of the project, our airline colleagues   recycled in September using new methods
   countries and nearly 1,500 colleagues              and hotels will pilot cutting-edge          held dedicated workshops to come up with         to maximise the value of the materials for
   voted for their favourite idea. We                 sustainability technologies and             initiatives to test on the plane.                aerospace and other industries.
   implemented ideas across the business,             practices
   from aviation and hotels to digital             • We will collaborate on projects
   innovations. For example, in early 2014            and partnerships to help scale up
   Jetairfly introduced one of the winning            sustainable aviation fuels
   submissions: electric cars for ground
   colleagues at Brussels Airport.

                                                                                                                                                                                                    18
Skills and education
Travel and tourism is responsible for one in     Our TIMM research (see page 17) identified
11 jobs globally – that’s five times more than   skills development and training for hotel
the global automotive industry.                  workers as one of the best ways for TUI
                                                 to enhance its socio-economic impact in
Working in tourism can provide a way out of      destinations. In particular, it highlighted the
poverty for many, providing a clear skill set    need for work placement for students working
and relatively stable employment.                towards qualifications in the hospitality
                                                 industry.

Where we are
• In Tunisia we partnered with the German
   development agency GIZ to support
   a major project which focused on                   Commitments
   training hotel managers, working with              8) We will invest in youth, tourism
   hotel schools, and promoting tourism               skills and education to create               ROBINSON Club invests                           ROBINSON Club Pamfilya offers vocational
                                                                                                                                                   training for young people aged 17-23
   employment opportunities for women.                employment opportunities in our              in tourism skills                               who would like to work in front-of-house,
                                                      source markets and destinations                                                              housekeeping, or as bar and kitchen staff.
• T
   he TUI Stiftung in Germany runs the                                                            ROBINSON Club are involved with hotel           Since 2008, 250 students have taken part
  Impact4Jobs project, which analyses                                                              training schools in Morocco, Turkey and         in the vocational training on offer at the
  existing models for combating youth                 • W e will work with vocational
                                                                                                   Greece.                                         hotel, offered in partnership with the Turkish
  unemployment to find out if they can be                institutions and suppliers to
                                                         increase tourism skills and support                                                       Ministry of Education and Hanover’s Chamber
  transferred to other countries.                                                                  In 2008, the ROBINSON Club Agadir               of Trade and Industry.
                                                         local employment in destinations
                                                                                                   established a Hotel Management School with
• O
   ver one million UK schoolchildren have               and source markets
                                                                                                   the German development agency (GIZ) and         In Greece, Robinson Club Daidalos in Kos is a
  been engaged in sustainable tourism                 • We will support schools, colleges
                                                                                                   Moroccan Ministry of Education, offering one-   partner of the Mentoring Dual International
  through TUI’s Eco-traveller education                  and universities so that young
                                                                                                   year courses for Moroccan students. Over 400    Project (MENDI) which provides high quality
  programme since 2011.                                  people and tourism students gain
                                                                                                   students have been trained, with 60% gaining    apprenticeships in the catering and hotel
                                                         a real understanding of sustainable
                                                                                                   employment at the hotel.                        sector. Since 2013, more than 200 training
                                                         tourism
                                                                                                                                                   places have been created in around 50 hotels
                                                                                                                                                   in Greece.

                                                                                                                                                                                                    19
Collaboration
TUI can only continue to bring positive           Recent UN research shows that only 34% of
socio-economic impacts to a destination           countries said that their tourism sector was
if that destination maintains an attractive       guided by a ‘sustainable tourism’ policy – so
local environment, a welcoming culture, and       there is a real opportunity for us to support
appropriate amenities for tourism.                the inclusion of sustainability considerations
                                                  into tourism planning.
We believe it is our role to influence and work
in partnership with destination stakeholders      With the creation of the TUI Care Foundation,
to ensure that they safeguard these assets for    we will actively pursue projects and
future generations.                               partnerships in areas such as youth and
                                                  education, environmental protection and
                                                  sustainable tourism.

Where we are
• W
   e work in partnership with communities,
  governments and other organisations to
  enhance the sustainable management
  of destinations and demonstrate the                 Commitments
  positive impact that tourism can have. Our          9) We will collaborate with                  Destination projects                                • We have been working with the Travel
                                                                                                                                                          Foundation in Cyprus on projects including
  partners include the Global Sustainable             destinations on the sustainable              with the Travel                                        the integration of minimum sustainability
  Tourism Council, the Dutch Association of
  Travel Agents & Tour Operators, Deutscher           management of tourism                        Foundation                                             standards into the island’s national hotel
                                                                                                                                                          quality rating system.
  ReiseVerband, the UK’s travel industry                                                                                                               • In Jamaica, we are supporting projects
  association ABTA, German development                • W e will help to integrate                TUI has a longstanding partnership with the
                                                         sustainability into the tourism           Travel Foundation, a sustainable tourism               to develop cultural excursions and boost
  agency GIZ, and the Travel Foundation.                                                                                                                  tourist expenditure in Montego Bay.
                                                         strategy and frameworks of key            charity. We collaborate on strategic projects
                                                         destinations                              that address the sustainability issues facing our   • We supported the development of
• T
   UI is on the Board of the Global                                                                                                                      an online best practice tool for whale
  Sustainable Tourism Council (GSTC) and              • We will invest in strategic               industry.
                                                         destination projects at scale that                                                               shark guides, which is now a mandatory
  we encourage destinations to participate                                                                                                                requirement for all whale shark guides in
  in their destinations programme.                       enable local communities to               For example:
                                                         benefit from tourism                      • In Cape Verde, we helped to set up a                the Quintana Roo region of Mexico.
• W
   e are also part of the sustainable                                                                destination council to tackle sustainability
  tourism task force of the UNEP ten-year                                                             issues, leading to the development of
  framework for sustainable consumption                                                               programmes on crafts, excursions and
  and production, adopted at the Rio+20                                                               better beaches.
  conference.

                                                                                                                                                                                                       20
For more information about
sustainability at TUI Group, visit:
www.tui-sustainability.com

Contact:
Jane Ashton
Director of Sustainability
TUI Group
sustainability@tui.com
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