Embedding

Sustainable development strategy
TUI Travel’s sustainable development strategy is based on consideration of the key issues affecting the Company, now and in the future. It is regularly reviewed in consultation with internal and external stakeholders. Our four strategic priorities for sustainable development are Carbon Management, Destinations, Our Colleagues and Our Customers. We encourage all TUI Travel businesses to develop their own strategies, aligning with Group and Sector priorities and the related targets, where appropriate. At the end of 2008/09, 73% of TUI Travel businesses had their own sustainable development strategyⁱⁱ.

During 2008/09, we developed a Group sustainable development policy in conjunction with key colleagues, articulating the Group vision and approach & cascading it across our businesses. To read our policy visit www.tuitravelplc.com.

Nearly 2 years after we developed TUI Travel’s sustainable development strategy, we are going through a process of revising our approach. We are working closely with external advisors to evaluate more closely the Groupwide risks and opportunities sustainable development presents to the company. This piece of work will help us align sustainable development with TUI Travel’s key strategic imperatives and set long-term key performance indicators. Moving towards this level of sustainable development integration is an exciting prospect for our business.

"TUI Travel is listed on the FTSE4Good Index"

Policy and mitigation for Groupwide risks relating to sustainability are facilitated by the Group Risk Management and Sustainable Development Departments, with responsibility for managing such risks also shared by the businesses themselves. The increase in legislative and societal demands for a company like ours to act responsibly and lead on issues demands that we manage our risks as effectively as we can. One of the principal risks the Group is currently managing is climate change, identified as a strategic and emerging risk (See our Annual Report 2009)

Key areas of risk identified are as follows:

• Legislative and societal demands in relation to size and management of TUI Travel PLC’s carbon footprint
• Colleague actions need to uphold TUI Travel’s sustainable development policy
• Supplier actions need to uphold TUI Travel's environmental and social supplier standards
• Lack of detailed understanding of the socio-economic impacts of tourism
• Concern over damage to and quality of destinations due to climate change
• Growing awareness among our customers of sustainability issues

"Climate change – identified  as a strategic and emerging risk"

This year, the Group has maintained and enhanced its governance structure for sustainable development. There are now more than 40 full time-equivalent colleagues working on sustainable development within TUI Travelⁱⁱ. Johan Lundgren, Managing Director of the Mainstream Sector, Northern Region, is responsible for reporting on sustainable development to the TUI Travel PLC Board. Dermot Blastland, Managing Director of TUI UK & Ireland has responsibility for reporting on sustainable development to the Group Management Board. From 1 October 2010, Dermot Blastland will take on the role as Group Sustainable Development Director. The Group Management Board acts as the Group Steering Committee and sets the strategic direction and long term objectives for sustainable development.

The Group Sustainable Development department’s role is to drive sustainability performance across the Group towards FTSE100 best practice. It also has a particular remit to guide TUI UK & Ireland’s strategy and activities in this area. Each Sector of our Group has a sustainable development coordinator with a remit to develop and implement sustainable development strategy within their Sector. This year, the Sector coordinators have appointed a network of champions to support them in the delivery of Group and Sector sustainable development strategy.

Across our nine sustainable development workstreams, covering our priority areas, groups of key colleagues meet to tackle issues and develop programmes of work. For example, in our Carbon Management workstream, fuel managers meet to identify possible reductions in our carbon emissions from aviation; and in Our Customers workstream we share best practice amongst marketing colleagues.

Evaluating our performance
To understand our performance and to measure progress, we have incorporated sustainable development questions into regular colleague surveys at Sector and Group level and we have launched an annual Sustainable Development Evaluation of TUI Travel tour operating businesses, as well as specific surveys of airlines, hotels and water transport operations.

Code of Conduct
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 has been communicated to TUI Travel colleagues during 2009 and is widely available on Group, Sector and business intranets. We are currently developing further training and communications to bring the Code of Conduct to life for our colleagues. To read our Code of Conduct.

"We have set up a network of sustainability champions"

TUI Spirit – our vision and values
Our common vision and values unite us across the Group and we call this our TUI Spirit. Our vision is Making Travel Experiences Special and our four values are:

• Responsible leadership;
• Customer obsessed;
• Value driven; and
• Playing to win.

Winning behaviours have been developed to help embed these values in everyday working life in a number of ways. These behaviours allow us to truly engage in our work and to optimise our performance as individuals and as a business.

The wording of our Responsible Leadership value is:
“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.”

Bringing our values to life
Our businesses have adapted these values in different ways to suit their requirements and circumstances. In TUI Nordic they are called Blue Spirit and in TUI UK & Ireland they are part of the internal brand Be Special. In the Activity and Specialist & Emerging Markets Sectors, colleagues nominated individuals and teams for TUI Spirit awards. In TUI Deutschland, TUI Spirit champions have been selected to help develop ways to incorporate TUI Spirit further into every day working life. Our Special Experiences Collection showcases stories and experiences of colleagues across the Group, living the values in their daily working lives (See our Annual Report 2009) 

"Responsible Leadership – one of our four company values"

TUI Travel PLC regularly engages with internal and external stakeholders. Communicating with the groups who have an interest in our Company and its activities helps us develop as a business and incorporate respect for the environment and people into the way we work. TUI Travel PLC engages with customers, colleagues, investors, industry partners, suppliers, stakeholders in destinations, governments, non-governmental organisations and experts in sustainable tourism. Where possible, we have incorporated their feedback into our sustainable development strategy. TUI Travel’s senior management are regular public advocates for sustainable tourism, in the media, at industry and governmental events, and with other audiences.

Examples of working with our stakeholders can be found in the following sections of this report - Carbon Management, Destinations, Our Colleagues and Our Customers.

"TUI Travel is a core partner in the Tourism 2023 initiative, through which we are working to create a sustainable future for tourism." Read more