This update, published in July 2009, is TUI Travel PLC’s first full Sustainable Development Report. We intend to publish annual Sustainable Development Reports, with the next due in the first half of 2010.

It follows on from our interim Environment & People Update, published in September 2008 which contained data from the former First Choice Holidays PLC. You can find this, and First Choice reports from 2005 onwards, at www.tuitravelplc.com/sustainabledevelopment 

Scope

The scope of this report includes data and progress on sustainable development activities from all businesses owned by TUI Travel, for the financial year 2007/08, running from 1 October 2007 to 30 September 2008.

Our interim Environment & People Update included data for First Choice’s UK operations only. The data in this report covers TUI Travel’s international operations and is therefore more wide-ranging than previous reports.

We have indicated where data refers to joint ventures or Company suppliers. Since September 2008, TUI Travel has acquired new businesses for which key data has not yet been gathered. Data and progress for these businesses will be included in the 2008/09 Sustainable Development Report.

The Sustainable Development Report contains forward-looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in countries and Sectors in which the Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ from those currently anticipated.

Materiality

We recognise that we must play our role in sustaining the communities and the environment that we depend on. Our contribution needs to be relevant to the impacts and expertise of our business.

In June 2006, the First Choice Holidays PLC Group Management Board worked with Forum for the Future to articulate the company’s business case for sustainable development. We identified four main drivers for a sustainability programme, which we have adopted for TUI Travel:

• Aviation and climate change
• Protecting destinations from the impact of climate change
• Protecting destinations from the impact of tourism
• Shifting demographics and consumer trends

For a summary of the business case, click here. 

This report outlines our performance on key sustainable development issues that we consider to be material to our company. We aim to ensure that the content of our Sustainable Development Report is relevant to our stakeholders, both internal and external. We review the material impacts of our activities regularly as a Company and the information that our stakeholders expect to see in our reports (view Our Strategy page for details). In determining the contents of this update, we took into account feedback on our strategy and previous reports from colleagues, investors and other stakeholders (view Stakeholder Feedback page for details).

Data sources

The descriptions of our progress and strategy in this report are current at the date of publication, July 2009. Where practical, however, data is for the 2007/08 financial year. Where data in the report is not for this period, it is stated clearly alongside the data.

We gather data for our performance indicators from two main sources: the 2008 Group Sustainable Development Survey and our 2009 submission to the Carbon Disclosure Project.

Group Sustainable Development Survey
The 2008 Group Sustainable Development Survey aimed to identify priorities for TUI Travel’s sustainable development strategies (at Group and sector level) and to provide a baseline for sustainability performance indicators. It consisted of 29 straightforward questions on issues such as supplier management, customer engagement, investing in people and environmental targets.

In April/May 2008, the survey was sent to the managing directors of TUI Travel tour operating businesses, and nearly all responded. Their responses were used as a starting point for Sector Coordinators to talk to the businesses in their sector, some for the first time. To ensure the responses reflected the size of the businesses that responded, we weighted them by employee numbers.

In December 2008, we sent an amended version of the Group Sustainable Development Survey to TUI Travel’s hotels and cruise ship operations. We tailored the survey questions to the recipients, focusing on their carbon emissions and environmental management. The survey was sent to the environmental managers of Atlantica Hotels, Gran Resort, Nordotel and Paladien Hotels and the operations directors of Thomson Cruises, Island Cruises and Quark Expeditions, TUI Travel’s most significant cruise businesses.

The results of this survey were presented in our interim Environment & People Update and are re-stated in this report. The survey took place within the 2007/08 financial year and is therefore relevant to this report. The strategy development that has been carried out since our interim update has enabled us to put these results into context. The next Group Sustainable Development Survey is planned for after the 2008/09 financial year.

Carbon Disclosure Project
TUI Travel makes an annual submission to the Carbon Disclosure Project, an investor coalition representing 385 signatory investors and combined assets of $57 trillion (£36 trillion). Each participating company’s submission is scored and benchmarked with respect to its approach to managing climate change risk and opportunity. 

View TUI Travel’s Carbon Disclosure Project submissions for 2008 and 2009. 

Please note that 2006/07 carbon emission data is based on a pro forma financial year ending 30 September 2007 for TUI Travel PLC. Where the data was not available from First Choice Holidays PLC or the Tourism Division of TUI AG for that period (1 October 2006 to 30 September 2007), the nearest full 12 months of data was used.

Assurance

Our progress against the 2007/08 targets we published in our last Environment & People Update is subject to external assurance by Bureau Veritas (view their statement). TUI Travel will review the recommendations in this statement and build them into our strategy.

Colour photography supplied by:
ARP Travel, Bedsonline, BERSA, Family Holiday Association, Gareth Bentley, I Viaggi del Turchese, Marc Moitessier, Peregrine Adventures, Quark Expeditions, Sawadee Reizen, Stephan Sjögren, Studio Reinout van den Bergh, TCS Expeditions, The Adventure Company, Tietse Stelma, TUI Canada, TUI Deutschland, TUI Marine, TUI Nordic, TUI Picture Pool, TUI UK & Ireland, Your Man Tours.