24.05.2012
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Investor Relations > Financial Reports > Annual Report 2009/10 > Management Report  > Sustainable Development
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  • Annual Report 2009/10
  • Chairman‘s Letter
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  • Management Report 
    • Financial Year 2009/10 – an Overview
    • The TUI Group
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    • Sustainable Development
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Sustainable Development

20 years of environmental and social commitment. Protecting the climate and preserving biodiversity. Social responsibility for employees. Corporate citizenship.

TUI has been committed to sustainable development at its locations and destinations for 20 years, promoting environmental and social development. TUI was the first mainstream tour operator to establish an environmental management unit back in 1990.

TUI AG published its Sustainability Report for 2009/10, sub-titled “Guests in Paradise” in the anniversary year. The report documents activities, milestones, targets and indicators in sustainable development and complies with the guidelines of the Global Reporting Initiative (GRI), the internationally acknowledged standard for sustainability reporting.

In cooperation with TUI AG, TUI Travel worked in nine Group-wide project teams to take forward the definition of sustainability and environment objectives and the implementation of related measures in business operations. The project teams were allocated to the four core working areas: climate protection, cooperation with destinations/supply chain management, customer awareness raising and employee commitment.

Since 20 September 2010, TUI AG has again been the world’s only tourism company in the Travel & Tourism sub-sector to be listed in the Dow Jones Sustainability Index (DJSI) World for the fifth time in succession. Europe’s leading tourism group has thus continually demonstrated its strong sustainability performance. In the annual review of the composition of the index, TUI AG scored best in various categories including risk management and compliance. The index comprises the 318 sustainability leaders from the 2,500 members of the Dow Jones Global Index. 

In September 2010, TUI AG’s position in the sustainability index FTSE4Good was confirmed. TUI is also represented in the indexes DAXglobal Sarasin Sustainability Germany, Ethibel Excellence Index and ECPI Ethical Index €uro. oekom Research AG continued to award TUI the investment status rating ‘prime’ in financial year 2009/10.

Strategic partnership and cooperation

In the framework of a multi-stakeholder dialogue and international cooperation, the TUI Group has been actively promoting environmental protection, nature conservation and sustainable development in its European source markets and tourism destinations.

Biodiversity in Good Company Initiative
Since 2008, TUI AG has been a member of the Biodiversity in Good Company Initiative of the German Ministry for the Environment, Nature Conservation and Nuclear Safety. The companies involved aim to achieve a stronger balance between economic activities and the preservation of biodiversity. The initiative is implemented and supported by the German technical aid agency (GTZ). In 2010, a Biodiversity Manual was published jointly with the Centre for Sustainability Management of Leuphana University in Lüneburg. An online portal offers companies checklists to help them establish entrepreneurial biodiversity management. At the TUI Green Days in 2010, where the exhibition “No industrial diversity without natural diversity” passed through on its nationwide travels, this campaign stressed the importance of biodiversity for sustainable business success.

European Business and Biodiversity Campaign
TUI supported the European Business and Biodiversity Campaign of the Global Nature Fund, established in 2010 as an EU Life+ project. This communication campaign aims to strengthen corporate commitment to the sustainable use and preservation of biodiversity at EU level. In cooperation with the partners, TUI AG invited European tourism experts to a workshop in September 2010.

Federal Agency for Nature Conservation
In cooperation with the Federal Agency for Nature Conservation (BfN) in Germany, TUI stepped up joint activities during the International Year of Biodiversity 2010. These included a nature conservation magazine for children, drawing competitions in TUI children’s clubs to mark Biodiversity Day and customer excursions in destinations along with the BfN or local organisations for nature conservation.

Futouris e. V.
TUI AG co-founded the industry initiative Futouris e.V., founded as a non-profit association in early 2009 by several TUI companies. The initiative is run under the patronage of the German Travel Industry Association and above all supports projects in the fields of environmental protection, development cooperation and promoting understanding between peoples.

A scientific advisory council was set up in 2010. This works with Futouris to develop campaign standards, determine sustainability indicators and establish an accreditation procedure. These measures and a special monitoring system are intended to ensure that sponsored projects will comply with current sustainability requirements over the long term. This is a dynamic procedure to permit an ongoing benchmarking of project standards against the latest research findings, ensuring that the standards applied by Futouris remain relevant and are regularly updated.

econsense
TUI AG’s activities as a founding member of econsense – Forum for Sustainable Development of German Business – were continued in the financial year under review. In 2010, the cooperation scheme focused on sustainable financial markets and biodiversity.

Europarc
As a member of the evaluation committee of the European Charter for Sustainable Tourism in Protected Areas, TUI AG maintained its involvement thoughout the year in implementing standards for the sustainable use of European protected areas for tourism. In 2010, TUI AG supported the review and redesign of the evaluation documents and Charter criteria.

Bonn Convention
Since 2005, TUI AG has carried out various activities to support the protective measures enshrined in the Bonn Convention on the Conservation of Migratory Species of Wild Animals, in particular annual “Year of ...” awareness campaigns in the destinations.

Framework agreement on sustainable development in the Balearics
Since 2005 a framework agreement has existed between TUI and the Balearic Ministry for the Environment in order to achieve the sustainable development of tourism in Majorca. In 2009 a large-scale reafforestation project was launched in the north of the island. 12,000 olive and pine trees had been planted in the Parc de Llevant nature reserve by September 2010.

Tour Operators’ Initiative for Sustainable Tourism Development
To publicise and promote the principles of sustainable tourism, TUI Travel remains committed, along with other tour operators and with the backing of UNEP, UNESCO and UNWTO, to the Tour Operators’ Initiative for Sustainable Tourism Development (TOI). All the members in this worldwide initiative have undertaken a voluntary pledge to uphold environmental, economic and social sustainability in the development of tourism.

Travel Foundation
TUI Travel continued to support the work of the British Travel Foundation for sustainable tourism development in 2010. Projects to protect and improve the environmental situation and living conditions of the local population are carried out in cooperation with the Foundation, the incoming agencies and local partners. A research project launched in 2010 by the Travel Foundation and the Overseas Development Institute aims to record and improve the socio-economic impact of TUI Travel hotels based on the example of an all-inclusive facility in Turkey.

The environment

The continuous development and implementation of environmental standards including stronger implementation of environmental management systems are part and parcel of the TUI Group’s sustainable corporate policy. Activities focus on preserving biodiversity, protecting the climate and using resources efficiently.

Group-wide environmental monitoring

The Group-wide processes implemented to monitor the environmental performance and define meaningful indicators for sustainability reporting were continually adjusted and expanded. Activities were based on internationally acknowledged standards such as the greenhouse gas protocol and the current guidelines of the Global Reporting Initiative (GRI/G3 Guidelines) with a view to facilitating maximum comparability between indicators. Specific definitions and adjustments improved the methods used for calculating certain indicators. Group-wide monitoring focuses continuing operations on commercial activities of environmental relevance and serves as a control variable to enhance environmental performance.

Energy consumption

Due to the use of fossil fuels, most of the Group’s energy is consumed by aviation and cruises. Total energy consumption of the high-emission activities in continuing operation totalled 88,947 TJ (previous year 95,347 TJ) in the financial year under review.

TUI airlines achieved average specific fuel consumption of 3.00 litres of aircraft fuel per 100 passenger kilometres (pkm) (previous year 3.03 l/100 pkm). The decline was attributable to changes in fleet portfolios such as the transfer of TUI’s city pairs business to Air Berlin and changes in flight schedules by the TUI airlines. This specific fuel consumption continues to confirm the high efficiency of TUI airlines and their positive environmental performance by international standards.

In financial year 2009, Cruises reported specific fuel consumption of 0.24 litres per passenger nautical mile (l/pnm) (previous year 0.25 l/pnm). The decline was driven by more efficient route planning and higher utilisation of capacity.

Carbon dioxide emissions

Climate change constitutes a key environmental factor for TUI, influencing its business operations. TUI has identified emissions of carbon dioxide (CO2), a greenhouse gas, as key environmental indicators and as metrics for determining its environmental performance. Total CO2 emissions from emission-intensive continuing operations amounted to 5.91 million tonnes in 2010 (previous year 6.34 million tonnes).

Carbon emissions in aviation
In financial year 2009/10, aviation accounted for 89.0% of total CO2 emissions from emission-intensive continuing operations. In financial year 2009/10, specific CO2 emissions from TUI airlines amounted to 76 g/100 pkm (previous year 78 g/pkm). As an active contribution to fighting climate change, the TUI airlines aim to cut their CO2 emissions by 6% by the end of financial year 2013/14 (baseline 2007/08)
by using efficient aircraft.

Emissions trading in aviation
Following a decision by the European Union, emissions from civilian air traffic in Europe will be regulated under the European Union’s Emissions Trading Scheme (EU ETS) as of 2012. In this context, the TUI Group’s airlines have adjusted all necessary aviation processes to the new legal requirements. The emissions monitoring plans derived from these provisions were discussed with and approved by the competent national authorities. Following the end of the first reporting period in 2010, which will be the basis for allocating free certificates, the first statutory data verification scheme will take place in 2011. In 2010, TUI already commissioned the auditing company PWC to take on the role of independent verifier in the next few years by implementing this audit for all TUI Group airlines.

Voluntary CO2 offsetting for air tours
In partnership with the foundation myclimate, customers flying with TUIfly can voluntarily offset the greenhouse gas emissions caused by their flight. myclimate has used donations by TUI customers to sponsor a development aid project promoting low-energy cookers in Madagascar. TUI Deutschland customers have also been offered the opportunity to offset the carbon emissions of their entire trip when booking in a retail shop or on the internet. Tour operators donate a further 50 cents on top of the amount donated per booking. These donations were used to sponsor internationally recognised climate protection projects in Turkey and Peru. Customers of the British tour operators Thomson Travel and First Choice can offset their emissions through the World Care Fund.

Offsetting business flights
TUI AG retroactively offset all carbon emissions for flights taken by its employees in financial year 2009/10 through the myclimate foundation. A total of 287 tonnes of carbon were offset. For the first time, TUI Deutsch­land likewise offset all emissions from business flights in financial year 2009/10, a total of 1,174 tonnes.

Carbon emissions by Cruises
In the completed financial year, the Cruises Sector accounted for 8.8% of total carbon emissions from the emissions-intensive continuing operations. Thanks to more efficient route planning and higher load factors, specific CO2 emissions were cut to 0.80 kg per passenger nautical mile (kg/pnm) (previous year 0.81 kg/pnm).

In cooperation with the non-profit organisation atmosfair, Hapag-Lloyd Kreuzfahrten is the first cruise provider to offer its customers the chance to arrange carbon offsetting for their cruises as of 2011. The donations serve to promote use of solar lamps in rural areas in India.

Carbon emissions by hotels
In financial year 2009, hotel operations accounted for 2.2% of total CO2 emissions from emission-intensive continuing operations. Average specific CO2 emissions totalled 13.1 kg of CO2 per customer and bednight (previous year 12.6 kg/customer/bednight). This increase was attributable to changes in the hotel portfolio and a more intensive use of resources.

All TUI hotel brands are committed to efficient use of natural resources. In April 2010, the Robinson Club Agadir was awarded the Ecorismo environmental award. The award was granted by the Moroccan minister for tourism and the Ecorismo organisation to acknowledge the Robinson Club’s many different environmental activities. The Agadir Club operates the largest solar system  in the country to supply hot water for the club, covering over 900 m2. A hotel garden of more than 2,000 m2 supplies organically grown vegetables and fruit, offering a habitat for domestic species of flora and fauna.

Carbon Disclosure Project
In 2010, the TUI Group again participated in industry-wide carbon disclosure activities. TUI’s emissions account was described in the Carbon Disclosure Project alongside the strategic aspects of TUI AG’s climate policy and was made accessible to international analysts and investors. TUI AG ranked fifth in the evaluation of climate reporting in the German Carbon Disclosure Leadership Index. At the same time, TUI AG was the only MDAX company represented in the Carbon Performance Leadership Index.

Certified environmental management system

Continual improvements in the Group’s environmental performance are achieved by introducing and steadily developing environmental management systems in the individual Group companies, in particular in hotel operations.

In financial year 2009, 5 new hotels and clubs had their environmental management systems successfully certified in accordance with the international environmental standard ISO 14001. A total of 63 hotels in TUI Hotels & Resorts’ portfolio have thus been certified according to ISO 14001, as confirmed by independent experts. By the end of the financial year, the environmental management systems of 18 Robinson Clubs, 12 Iberotels, 11 Magic Life Clubs, 7 Grupotels, 5 Dorfhotels, 4 Sol Y Mar Hotels, 3 Grecotels and 3 Jaz Hotels were certified according to ISO 14001. Additionally, some hotels gained certification under other environmental standards such as the Austrian ecolabel or Travelife.

The existing environmental management systems already applied at the headquarters of TUI AG, tour operator TUI Deutschland GmbH and TUI Dienstleistungsgesellschaft mbH in Hanover were also successfully certified under ISO 14001.

Environmental quality in TUI holiday hotels

Innovative environmental management is a key element of the quality strategy pursued by TUI Hotels & Resorts. The hotel brands of TUI Hotels & Resorts are among the environmental leaders at their respective location.

TUI Environment Champion
The 100 most environmentally-friendly hotels from TUI Deutschland’s product portfolio again received the TUI Environment Champion award in 2010. The ecological commitment of contract hotels is determined on the basis of, for example, a checklist and the results of a TUI customer survey. For the first time, the criteria used in the widely recognised Travelife standard were included when assessing the hotels’ ecological performance. In the financial year under review, 57 hotel and club facilities of TUI Hotels & Resorts were among the top 100 facilities receiving the TUI Environment Champion. 

Environmental quality label EcoResort
In order for TUI Hotels & Resorts facilities to qualify for the EcoResort quality label, they have to be awarded the TUI Environment Champion. The hotels also have to be certified in accordance with a recognised environmental standard. Following an audit carried out by accredited external experts, 51 hotel resorts of the Group’s own hotel brands in TUI Hotels & Resorts were awarded the label. The key criteria for qualifying as an EcoResort are transparency and responsibility towards nature and the environment as well as socio-cultural commitment.  This includes saving resources, water and energy and in many cases using renewable energies as well as sourcing local and regional products from organic farming as the preferred choice.

The EcoResort quality label, created by TUI Hotels & Resorts in cooperation with TUI AG’s sustainability management, is currently the most stringent of all quality labels for sustainable development in holiday hotels.

Green Star Hotel Initiative
In Egypt, TUI AG is a partner of the Green Star Hotel Initiative. Under a German-Egyptian Public Private Partnership, this programme to promote the efficient use of resources in hotel operations is co-sponsored by the German Ministry for Economic Cooperation and Development (BMZ) and implemented by the German technical aid agency GTZ. The project strengthens environmental management in local hotels and includes certification (Green Star). The underlying set of criteria is based on the scheme operated by Global Sustainable Tourism.

Biodiversity

In the year under review, TUI continued to implement the Leadership Declaration of the Biodiversity in Good Company Initiative. TUI has thus committed itself to analysing the impact of commercial operations on biodiversity and the inclusion of biodiversity criteria in its environmental management system.

TUI AG’s Code of Conduct expresses a clear commitment to preserving natural biodiversity. On that basis, TUI defines quality and action targets which are then implemented throughout the Group in the form of programmes. Target achievement is reviewed on a regular basis, with comprehensive internal and external communication, e.g. in the Annual Report, Sustainability Report and on the Group’s website. This approach provides visibility for effective preservation measures while raising awareness and creating confidence among our customers, employees and partners.

Year of Biodiversity 2010 

The year 2010 was declared the international Year of Biodiversity by the United Nations. Throughout the Group, TUI carried out a host of projects and initiatives to protect biodiversity.

Sensitising customers
In cooperation with the Federal Agency for Nature Conservation, a children’s magazine was designed and distributed in the German-speaking children’s clubs and on board the TUIfly airline. The magazine explains the connections between environmental protection and preservation of biodiversity in a way children can understand and offers tips on how to protect the environment on their holiday. TUI continued to hand out a souvenir guide in holiday destinations informing TUI customers about illegal souvenirs from endangered species and motivating customers to buy alternative, fair souvenirs.

Projects to preserve species
TUI companies engage locally in many specific projects to preserve endangered species. The Robinson Club Agadir supports the Moroccan Sous Massa National Park, providing a habitat for rare species. With the support of the German technical aid agency (GTZ), species that had become almost extinct such as the Mendes antelope and Mhorr gazelle have been resettled here.

In 2010, TUI AG sponsored the creation of the June Haimoff Foundation in Turkey. The Sea Turtle Research, Rescue and Rehabilitation Centre in Dalyan run by the foundation is committed to preserving populations of endangered sea turtles on the Turkish Aegaeis. A programme run in cooperation with the University of Pamukkale focuses on scientific research into endangered species and observing nesting beaches in the region.

Employees

Competent, committed and highly qualified employees are a key factor for success. TUI’s employees secure the Group’s competitive position. In order to win, develop and retain employees, TUI offers a welter of initial, ongoing and further training schemes, a range of pension and health measures and activities to promote work-life balance in a flexible and attractive environment.

Initial, ongoing and further training

Junior staff development and training
In order to secure the Group’s competitiveness in the long term, the TUI Group offers various training opportunities for young people. In Germany alone there are traineeships for twelve different jobs and two sandwich courses, including commercial clerk, travel advisor or Bachelor of Arts in Tourism. In order to prevent a shortage of trained staff, Hapag-Lloyd Kreuzfahrten has extended its range of vocational training schemes and traineeships. At the 2010 balance sheet date, around 500 young employees were taking part in training schemes in our German companies. Around 64% of the trainees who finished their training in 2010 were offered an employment contract. At 5.3%, the proportion of staff in training matched the previous year’s level. The excellent quality of the training has been confirmed time and again by awards granted to trainees finishing their traineeship by the chambers of industry and commerce or even awards as the best regional trainee. In March 2010, TUI Deutschland received the Willy Scharnow Foundation special award for development programmes for its LUCIE programmes (LUCIE stands for learning in the company and opportunities arising from individual development).

Development of senior and executive staff
As in the past, the TUI Group attached a great deal of importance to qualifying its senior and executive staff in financial year 2009/10. Training schemes focused on the design and implementation of individual in-house training courses for different companies, dealing with change management, negotiation skills and communication. New offerings for executives included programmes on coaching. In an early response to demographic change and the resulting shortage of skilled labour the Group has devised new programmes for employees and junior management staff, e.g. further training schemes for business management, tourism and HR leading to certificates from the chambers of industry and commerce.

The TUI Group’s International Management Trainee Programme for university graduates has been implemented for many years to secure the recruitment and development of junior staff for technical and management positions in the long term. The international programme takes 18 months to complete and offers participants a comprehensive overview of the tourism business. The trainee assignments have formed an important basis for stronger cooperation and integration within the Group. The different nationalities of participants from Russia, China, Spain, England, France, Sweden and India facilitate cross-border networking and cooperation.

At the international level, two newly created programmes constitute key components in the strategy for developing top management. The Global High Performance Leadership programme, run in partnership with the European Business School, promotes the development of and succession planning for senior and top executives. The qualification programme is supported by projects, training schemes and coaching sequences. The Global Responsible Leadership programme aims to promote sustainability and social responsibility through international project activities.

People Performance Management
With the introduction of its People Performance Management system, TUI Deutschland has continued to professionalise its management, control and HR development processes. Apart from specific target agreements, every employee receives systematic feedback on their performance and potential by their line manager and is given an opportunity for self-assessment. A development plan is then drawn up and jointly pursued and implemented by the employees and managers.

Group-wide company suggestion scheme
TUI has concluded a Group agreement to promote idea management within the Companies. Its purpose is to actively engage employees in shaping Group-wide workflows and developing the Group. The aim is to motivate staff to participate in thinking and shaping processes and assuming responsibility far beyond their own company and their own sphere of responsibility. The creative potential of our employees is to be tapped in the form of suggestions for improvements and used for the benefit of the entire Group and its workforce. To this end, a central position will be created in the Group to receive and process suggestions for improvements that affect the Group as a whole. The aim is to promote a climate conducive to innovation and strengthen our employees’ identification with TUI.

Social responsibility

Pension schemes
The companies in the TUI Group offer their employees many different ways of participating in private pension schemes, alongside the company-based pension schemes funded by the employer. Specific legal conditions and the economic situation are taken into account in designing the models. In TUIfly GmbH, two Employee shares TUI AG has run a programme to issue employee shares in order to let the Company’s employees participate in profits for many years. This programme includes employees and pensioners of German companies and employees in several European countries. In 2010, the beneficiaries were again offered the opportunity to subscribe to up to 250 shares at a reduced price. TUI Travel also offers UK staff a chance to participate in the company by buying shares at reduced prices.

Part-time early retirement
The German Group companies made substantial use of the opportunities provided under the German Part-Time Early Retirement Act to shift gradually from employment to retirement in the framework of company HR and succession planning. In almost all cases, working hours in the part-time early retirement phase were based on a block model, enabling the participant to retire early. The resulting assets for the employees working under part-time early retirement contracts were hedged against employer insolvency under a capital investment model in accordance with the provisions of the German Part-Time Early Retirement Act. Approx. €10.8m were provided for the 285 employees working under part-time early retirement contracts.

Employee shares
TUI AG has run a programme to issue employee shares in order to let the Company’s employees participate in profits for many years. This programme includes employees and pensioners of German companies and employees in several European countries. In 2010, the beneficiaries were again offered the opportunity to subscribe to up to 250 shares at a reduced price. TUI Travel also offers UK staff a chance to participate in the company by buying shares at reduced prices.

Health management and health and safety
The key task of TUI AG’s health management system is to check the working environment for our employees and continually expand the programmes offered to enable our staff to avoid health hazards at work. Health and safety is a key component. In cooperation with health and safety experts, activities at the Hanover site included workplace-specific hazard analyses, permanent training of first-aid and fire protection assistants and noise measurements.

With the Fit With TUI programme, TUI practices comprehensive, modern health management at the Hanover site. In accordance with the Luxembourg Declaration, signed by TUI AG, the Group offers a series of measures underlining the significance of health and well-being at the workplace. Apart from exercise schemes, such as company sports, there are health seminars aimed at specific target groups and programmes for the prevention of substance abuse. Employees can also take part in annual campaigns such as flu vaccination, prevention of/therapy for back problems, eye and hearing tests or health coaching to prevent psychological disease.

This involves regular staff information campaigns and surveys, and meetings between the health coordinators, the works doctor, health and safety officials and representatives of management and staff. TUI’s Hanover site was awarded the ‘Excellence’ Corporate Health Award for its exemplary health system. Moreover, TUI AG was nominated for the Felix Burda Award 2010 in recognition of the outstanding provision by TUI AG of cancer screening opportunities for employees.

Company health insurance fund
BKK TUI, the company health insurance fund, is available to German employees, offering a comprehensive range of services to protect employees in the event of sickness and to promote health. With the introduction of the German “health fund”, the basis for the TUI BKK’s business operations has fundamentally changed. As the commercial uncertainties are considerable, efforts focused on stabilising the financial position. TUI BKK recorded a surplus enabling it to dispense with additional contributions. Demand increased as a result.

Women in management positions
At the end of the financial year, women accounted for around 69% (previous year 67%) of the total German workforce. The proportion of women in senior management positions remained at 21%, as in the previous year. Our aim is to significantly increase the proportion of women in management positions in the long term. To this end, TUI AG has launched special programmes to promote women or offer a range of programmes to improve work-life balance and family-oriented life planning. Our aim is to encourage a new approach to get away from traditional gender role expectations and achieve greater equality of opportunities.

Work-life balance
TUI is one of the founding members of the national Success Factor Family network. Group-wide programmes are aimed at enabling employees to achieve a better work-life balance. To this end, German companies offer a series of measures to employees on parental leave so that they do not lose touch with the workplace. Employees also obtain financial support for childcare or may take their children to the company crèche in Hanover. The Group also offers flexible models to work part-time or from home and an option to apply for unpaid leave for an extensive period of time to take care of family members who have fallen ill.

Diversity Charter  
A global player such as TUI lives out diversity in everyday operations. That is why TUI AG has committed to the Diversity Charter, a national German corporate initiative to promote diversity, fairness and respect in companies. The issues that TUI has chosen to highlight in project form include origin, cultural specificities and health. For several years, the TUI sponsorship programme Open Door has offered interested children of employees the opportunity to spend a year or several holiday weeks with a guest family abroad. In 2010, employees had an opportunity to participate in the Changing Sides programme; to this end, they were integrated into a social facility for a day. A meeting on “Diversity in TUI“ was subsequently held, permitting an exchange of experience; speakers were invited to talk about the facilities and participants had the opportunity to discuss with disability officers and representatives of employees and management.

TUI AG also repeated the Fit For Your Job campaign, offering advice on applications and job interviews to young people with disabilities looking out for their first job. In addition, the TUI’s reading initiative was continued for the third year: TUI staff visit a school for students with learning disabilities once a week and coach ten-year-old students in reading aloud. In June 2010, the German minister Ursula von der Leyen took over the patronage for this project.

Employee representation within the Group
In the TUI Group, employees are represented nationally and internationally, both in individual Group companies and at Group level. In accordance with the staff participation culture fostered by the Group, employee representatives were involved in strategic decisions and the implementation of these decisions in their respective areas of responsibility, thereby serving the strategic interests of the workforce and company alike. This codetermination culture fosters a distinct sense of social partnership and has always been a firm component of dialogue between corporate management and the bodies representing employees.

TUI European Forum
The TUI European Forum was established even before the German legislator adopted the Act on European Works Councils in 1996. Its composition is determined by the number of employees in the countries where TUI directly or indirectly holds majority holdings in the European Union, the European Economic Area and Switzerland. This year, a total of 52 representatives from 14 countries were delegated to the TUI European Forum. Group management briefs the Select Committee of the TUI European Forum several times a year and attends meetings to discuss the current economic and HR situation within the Group. The TUI European Forum meets once a year. It makes a significant contribution to the international character of the Group and acts as a linchpin enhancing the transparency of transnational entrepreneurial decisions.

Corporate citizenship

TUI AG and its subsidiaries acknowledge their social responsibility at their sites across the world and in the tourist destinations.

Drinking Water for Africa
Due to its overwhelming success, the Drinking Water for Africa campaign was expanded. This is an initiative carried out in cooperation with the Global Nature Fund, the premier league football club Hannover 96. The donations collected at home matches of the football team were used to sponsor the installation of four new drinking water processing systems in Kenyan schools. In the current premier league season, the initiative is focusing on a project to repair fountains in Ivory Coast.

German-Russian youth parliament
In July 2010, TUI AG supported the German-Russian Youth Exchange Foundation with free flights. The participants came up with suggestions for solutions, e.g. to problems of tolerance among young people. At a plenary session, the participants presented their results to German Chancellor Angela Merkel and Russian President Dimitry Medvedev.

Support for disadvantaged children and teenagers

Aid for Haiti
Following the devastating earthquake in Haiti, TUI Group companies launched a five-year aid project aiming to contribute to reconstruction. Half a million euros will be provided in total. The relief programme, launched in cooperation with the sustainability imitative Futouris e.V., will involve TUI AG, TUI Deutschland, TUI Suisse and TUI Austria. The aim of the project is to build sleeping and dwelling places for children and teenagers as well as small schools and vocational training centres to enable young people and adults to be economically independent. TUI Group companies also support a range of social projects and donation campaigns. Examples of initiatives sponsored by companies, employees or customers include a programme by TUIfly Nordic, Jetairfly and TUI Cruises, flying aid workers, medical personnel and goods to the Dominican Republic for free, and a fundraising campaign to donate funds to action medeor e.V. , a German medical relief organisation. TUI Deutschland employees collected donations in kind for the earthquake victims.

ECPAT
In the year under review, TUI Group companies continued their worldwide commitment to protect children from sexual abuse. TUI tour reps were offered training programmes on the protection of children in the framework of the permanent employee training.

Peter Maffay Foundation
TUI AG continued to support the Peter Maffay Foundation with 200 free flights to and from Majorca. The foundation supports children traumatised due to domestic violence or sexual abuse or due to severe diseases.

Clean Winners
TUI Cruises sponsored the opening of the new Clean Winners site in Hamburg in the Öjendorf sports park. The non-profit Clean Winners organisation aims to promote sport for socially deprived children and teenagers in Germany at risk of being caught in the “offside trap” as a way of offering encouragement and recognition and ultimately promoting social cohesion.

TUI sponsorship
The sponsorship scheme run by TUI employees in Hanover supported the  KiD Hanover initiative in 2010. The diagnostics and therapy centre supports children who have experienced violence and are suspected of having experienced negligence, physical or sexual abuse.

Activities by the TUI Foundation

The TUI Foundation was established in 2000 to mark the 75th anniversary of Preussag AG, today TUI AG. TUI AG pools its social and public activities in Lower Saxony in these activities.

From October 2009 to September 2010, the TUI Foundation sponsored more than 30 selected projects in the four main sponsorship areas: science and research, school projects, qualification schemes for unemployed young people, and culture and arts.

In science and research, the TUI Foundation has been funding the supporting research for a sure-start education project by the Criminological Research Institute of Lower Saxony for the past five years. This pilot project tests new forms of early education designed to prevent criminal behaviour among children in high-risk families and reviews the efficiency of such methods. The first results of the long-term pilot project were presented at the end of 2010.

Another initiative in science and research was the Rudolf Schoen Award, presented for the twenty-second time in 2010 for the best scientific publication at Hanover’s Medical University (MHH). Funding was also provided for selected research projects by junior scientists at the MHH. The TUI Foundation intensively supports the care network for severely ill children and young people, aimed to significantly improve out-patient care for these children.

In school projects, the TUI Foundations sponsored a total of twelve projects in Lower Saxony. The focus was on promoting reading skills in elementary schools and providing careers guidance for students at secondary or intermediate schools. The “Gemeinsam in Hannover – Wir sind die Zukunft’”award for children and youth projects in Hanover was presented for the second time in 2010. A prominent jury selected six winning projects.

In culture and arts, the focus was on projects involving children and young people. Funding was provided for a Living Music Academy, where new and unusual concert formats encouraged enthusiasm for classical music among youngsters. The work of young choreographers was promoted through funding for the International Ballet Competition of the Hanover Ballet Society.

Research and development – innovation

As a services group, TUI does not engage in research and development in the narrow sense of the term. However, TUI operates in an environment where competitiveness depends heavily on product and service innovation. The TUI Group’s operating entities therefore aim to apply new technologies, anticipate new market trends and steadily adjust their product portfolios to changing market requirements.

The role of sustainable development and responsible use of natural resources has continually grown in recent years. Consumers have increasingly based their purchasing decision on the perceived ecological and social responsibility of companies. One of the key tasks was therefore to align product development to sustainability in the period under review.

International study
In 2010, TUI Travel’s Group Marketing carried out an international customer survey on sustainability in tourism in cooperation with the Global Nature Fund and PriceWaterhouseCoopers. The results have shown that awareness of the environment and sustainability are now a bigger factor in selecting travel providers. There is a great need for sustainable travel component offerings.

EU research project CILECCTA
TUI AG is a partner in a consortium of 19 companies from twelve countries developing software to assess the life cycle cost of construction objects as part on an EU research project. The CILECCTA project has been devised as a four-year project and takes account of construction costs but also subsequent operating, maintenance and disposal costs, i.e. the entire life cycle of a building. TUI provides a financial contribution and a hotel where the software application can be simulated.

Biofuel in aviation
TUI Travel PLC is an active member of SAFUG (Sustainable Aviation Fuel Users Group) and takes part in discussions about the use of sustainable biofuels in aviation. A working group involving experts from all airlines in the TUI Group is checking the strategic options for the use of biofuels on the basis of a 5-point plan.

Clean Sky research project
The airlines Corsairfly, Thomson Airways and TUIfly are partners of the Clean Sky research project sponsored by the European Union. As part of the CARING (Contribution of Airlines for the Reduction of Industry Nuisances and Gases) project module, the airlines involved have been cooperating with environmental researchers and technology manufacturers to devise a model that can display flight emissions. To this end, they analyse flight data in detail and discuss them jointly.

© 2012 TUI AG
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