The merger of First Choice Holidays PLC and the Tourism Division of TUI AG in September 2007 created an opportunity to combine the experience of two leaders in the field and incorporate sustainable development into the values, structure and business agenda of one of the world’s largest leisure travel companies.

For details of TUI Travel’s corporate governance and management of sustainable development, see our Governance page.

Our values

One of our key priorities has been to ensure a common set of values our colleagues can identify with and incorporate into working life, which align with the Group’s vision and strategy: we call this the TUI Spirit. Over 5,000 colleagues took part in developing the TUI Spirit values, including members of the PLC Board and Group Management Board.

Along with Customer Obsessed, Playing to Win and Value Driven, Responsible Leadership is one of the Group’s four core values: “We are committed to sustainable development and to making a positive impact on society. We know leadership has to be earned and we never take it for granted. We communicate openly and easily and help each other develop and grow. We celebrate local differences and actively seek to contribute to a better world.”

TUI Travel’s sectors have used TUI Spirit as best suits the needs of their businesses and aligns with their strategies. They are beginning to integrate TUI Spirit into processes such as personal development, reward and benefit, policies and procedures. TUI Spirit has been a key topic in leadership development and communications (see Our People pages). We are working towards promoting how colleagues are demonstrating the ethos of TUI Spirit.

Evaluating sustainable development

To understand our sustainability performance and to measure progress, we have incorporated sustainable development questions into regular internal surveys at sector and Group level (view Our people page) and launched an annual Sustainable Development Survey of TUI Travel tour operating businesses, as well as specific surveys of hotels and water transport operations (view Data and Materiality page for details).

Business strategy

We are making sure sustainable development aligns closely with our business’s key strategic priorities. In 2008, we commissioned Forum for the Future (see Partner statement page) to develop a fact base of sustainable development issues for consideration by the managing directors of all Group businesses when developing their business strategies.

We are experiencing greater consumer awareness of sustainability, and believe that creating more sustainable holidays will deliver product differentiation and help us achieve brand loyalty and competitive advantage. We have already seen how sustainable development strategies can deliver considerable efficiency savings, engage our colleagues and attract new recruits.

Our five strategic priorities for sustainable development – Embedding, Climate Change, Destinations, Our People and Our Customers – build on this experience to ensure our sustainability performance continues to benefit the business.

Risk management

A dedicated Group Risk Management department has been established and is developing the appropriate policies and procedures to ensure that a risk management framework is embedded throughout the organisation on a consistent basis and in accordance with Turnbull Guidance on corporate behaviour and conduct.

Certain common risks, including those related to sustainability, exist across the Group and therefore benefit from a Group approach to mitigation. Policy and mitigation for such Groupwide risks are facilitated and supported by the Group Risk Management and Sustainable Development departments, with responsibility for managing such risks also shared by the businesses themselves.

TUI Travel has not been prosecuted for infringement of environmental or social legislation.

Policies

The Group Code of Conduct covers a wide range of issues including human rights, conflicts of interest, business ethics, transparency and fair competition, and commits TUI Travel to uphold the principles of the UN Global Compact. It will be communicated to TUI Travel colleagues during 2009 and brought to the attention of Legal and Finance Directors in particular. The code has also been adopted by TUI AG.

We developed our Sustainable Development Policy in conjunction with key colleagues across the Group, including our Sector Coordinators. Its aim is to articulate our vision and approach to sustainable development. Please view the policy in full.

Read more ...

Governance

Group Sustainable Development Policy