CDP 2016 Climate Change 2016 Information Request...CDP CDP 2016 Climate Change 2016 Information Request TUI Group Module: Introduction Page: Introduction CC0.1 Introduction Please

CDP CDP 2016 Climate Change 2016 Information Request

TUI Group

Module: Introduction

Page: Introduction

CC0.1

Introduction

Please give a general description and introduction to your organization. TUI Group is the world’s number one tourism business. The broad portfolio gathered under the Group umbrella consists of strong tour operators, 1,800 travel agencies and leading online portals, six airlines with more than 130 aircraft, over 300 hotels with 210,000 beds, thirteen cruise liners and countless incoming agencies in all major holiday destinations around the globe. This integrated offering enables us to provide our 30 million customers with an unmatched holiday experience in 180 regions. A key feature of our corporate culture is our global responsibility for economic, environmental and social sustainability. This is reflected in more than 20 years of commitment to sustainable tourism. In financial year 2014/15, the TUI Group recorded turnover of €20.1bn and an operating result of €1.069bn. The TUI Group’s share is listed on the London Stock Exchange in the FTSE index and in the regulated market of the Frankfurt Stock Exchange.

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Wed 01 Oct 2014 - Wed 30 Sep 2015

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. EUR(€)

CC0.6

Modules

As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

Thomas Ellerbeck, Group Director Corporate & External Affairs, a member of the Group Executive Committee, was responsible for reporting on sustainability and climate change for TUI Group. The Group Executive Committee manages the business both strategically and operationally.

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Director on board Monetary reward

Energy reduction project

A TUI Group board member has climate change related incentives to meet energy reduction targets, specifically relating to climate change via our sustainability strategy targets.

Executive officer Monetary reward

Energy reduction target

A TUI Group executive (Group Director of Sustainable Development) officer receives a financial bonus only if a number of targets are met including sustainability/carbon management related targets, as part of TUI's Group Reward Population (GRP).

Management group Monetary reward


TUI UK operates a discretionary bonus scheme at three levels in TUI UK & Ireland - Group Reward Population, Senior Management and Middle Management. Our bonus scheme is a key element of our total reward package. It is designed to reward employees in line with our financial performance and their personal contribution to delivering successfully against our strategy. An example role with energy efficiency targets is a Facilities Contracts & Energy Manager.

Other: Ship Masters Monetary reward


Individual bonus is agreed if Captains perform below fuel planning projections. Fuel savings achieved through optimised vessel operation on TUI Cruise ships.

Environment/Sustainability managers

Monetary reward

Other: Various sustainability initiatives including energy reduction

TUI Nordic offer monetary rewards linked to personal targets which are related to sustainable development

Environment/Sustainability managers

Monetary reward

Other: Strategy and certification

TUIfly offer financial reward for the development of a sustainable development approach and ISO certification.

Business unit managers Monetary reward


Managers in TUI’s ski resorts are incentivised to reduce the energy consumption of their hotels.

Process operation managers

Monetary reward

Emissions reduction target

The Transport Hub Director and Traffic Manager of TUI’s largest ground transport business receive a financial bonus related to an emissions reduction target of the fleet.

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency

of monitoring

To whom are

results reported?

Geographical areas considered

How far into

the future are risks

considered?

Comment

Six-monthly or more frequently

Board or individual/sub-set of the Board or committee appointed by the Board

TUI Group is a truly worldwide organisation, therefore we consider our climate change risks and opportunities globally. Industries in which the Group operates are highly regulated, particularly in relation to aviation and the environment. TUI Group manages an effective system of internal control to ensure we operate in compliance with all legal and regulatory requirements. TUI Group is fully committed to being a good corporate citizen in all of the countries in which we operate.

> 6 years

On a quarterly basis, line management closest to the risks identify the gross risks relevant to the pursuit of strategy within their business area in the context of; longer-term strategic and emerging threats, medium-term challenges associated with business change programmes, shorter-term risks triggered by changes in the external and regulatory environment, and shorter-term risks in relation to internal operations and control. There is at least 4 quarterly detailed discussions at Board Level on how risk is being managed across the organisation (risk process) and the Senior Management provide an update to the Board on a rotational basis on the key risks under their consideration (risk content).

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

Policy & mitigation for Group-wide risks & opportunities relating to sustainability are facilitated by the Group Risk Management and Sustainable Development (SD) Depts, with responsibility for managing risks also primarily owned by the businesses (asset level), with direction & support coordinated at the centre (company level). Company Level Successful management of existing and emerging risk (including climate change risks) is critical to the long-term success of our business and a key area of management focus. For this reason we ensure that our risk governance framework is aligned to and embedded within our business planning cycle. We recognise that good risk governance exists when an organisation is intuitively sensitive to changes in its risk landscape and risk profile and is quick to flex either its strategic objectives and/or its risk strategy, as necessary. We also recognise that this capability requires active commitment and entrepreneurial leadership, a strong independent risk function and consistent risk methodology and language. TUI Group has established and maintains a system to identify, assess, manage and monitor risks that complies with the requirements of the UK Corporate Governance Code and the German Corporation Act. The framework has been designed utilising best practice guidance (COSO, 2004 / ISO 31000). Asset Level Early risk identification (including climate change risks) aims to recognize potential risks within the Group companies, assess these risks with the aid of uniform parameters & summarise them in an overall Group-wide system. TUI Group has implemented a flexible web-based Risk & Control solution that fully supports the Group's Risk & Control objectives and the needs of a large, complex, geographically disperse & diverse organisation. This software solution reinforces clarity of language, visibility of risks, controls & actions, and accountability of ownership.

CC2.1c

How do you prioritize the risks and opportunities identified?

On a quarterly basis, line management closest to the risks identify the gross risks relevant to the pursuit of strategy within their business area in the context of: • Longer-term strategic and emerging threats • Medium-term challenges associated with business change programmes • Shorter-term risks triggered by changes in the external and regulatory environment • Shorter-term risks in relation to internal operations and control The nature of the risk is articulated, including possible causal factors that may give rise to the risk materialising. This allows the Sectors/Source Markets and the Group to assess the interaction of risks and potential triggering events and/or aggregated impacts before developing appropriate mitigation strategies to target causes and/or consequences. Risks are assessed in relation to potential impact and likelihood as measured against predefined financial and non-financial criteria relevant to the business area. The current (net) risk position which takes into account existing controls is then considered in relation to the risk target. Where the overall current risk profile is considered too high, relative to the risk appetite of the Group, management identify mitigating actions to achieve the target (planned) risk position.

Climate change risks and opportunities, in common with all risks and opportunities, are prioritised within the web-based Risk & Control solution. This enables the business to understand the relative significance of the risks and opportunities it faces. This is after taking into consideration any controls that are in place and helps to focus management attention to further mitigate the risk where practically possible. Each risk or opportunity is assessed based on impact & likelihood at a gross (uncontrolled) level, current (taking into account controls in place) and a target (planned) level of risk taking into account the overall level of risk which is deemed acceptable/justifiable.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

2.2a i) Influence on business strategy: Our Group Sustainable Development team is based in Germany and the UK & headed up by our Director of Sustainability. Its role is to drive uptake of sustainable business practices across the Group and raise the leadership bar in our industry. TUI's sustainability strategy is implemented across its tourism businesses & business platforms.

A standardised management system has been created to implement value-driven management across the Group and its individual business sectors. The value-oriented Group management system is an integral part of consistent Group-wide planning & controlling processes. Sustainability aspects & climate related issues are taken into consideration in the long & short term. Sustainability fact bases are prepared for senior management when determining strategy for current and prospective destinations. ii) Examples of how the business strategy has been influenced: TUI continues to invest in projects to drive innovation such as the ecoDemonstrator partnership with Boeing, and ground-breaking Total Impact Measurement and Management (TIMM) study in collaboration with PwC and the Travel Foundation to inform future strategy. iii) Aspects of climate change that have influenced the strategy: TUI’s sustainability strategy (2015-2020) aligns with our corporate strategy, which includes reducing carbon emissions as one of our 3 core pillars (Step Lightly). It makes sense from a business & environmental perspective to embed carbon management into our business practices. Specific aspects of climate change that influenced TUI’s strategy: Physical Aspects - e.g. climate change mitigation & adaptation outlined in the TUI Guidelines for Hotel Environmental Sustainability leading to the setting of reduction targets. Regulatory Aspects - e.g. our response to EU ETS has been to ensure TUI Airlines are operated as efficiently as possible to reduce the number of permits that need to be purchased. Reputational Aspects - e.g. TUI has public goal to take 10m customers per year on ‘greener and fairer holidays’ with environment issues & carbon reduction in mind by end 2020. iv) The most important components of the short term strategy (1-5 yrs) that have been influenced by climate change: TUI’s business works on a rolling 5 year planning cycle. Our current sustainability strategy (2015-2020) has set out 3 ambitions: 1) We will operate Europe’s most carbon-efficient airlines and reduce the carbon intensity of our operations by 10% by 2020 (by driving environmental improvements across aviation, cruise & ground operations). 2) We will deliver 10 million greener and fairer holidays per year by 2020, enabling more local people to share in the benefits of tourism (by taking customers to hotels with GSTC-recognised sustainability certifications). 3) We will invest €10m per year by 2020 to enhance the positive impacts of tourism, creating the TUI Care Foundation to support this work. v) Most important components of the long term strategy (5 yrs +) that have been influenced by climate change: The TUI Group vision outlines our commitment to sustainability, ‘we are mindful of the importance of travel and tourism for many countries in the world and the people living there. We partner with these countries and help shape their future—in a committed and sustainable manner’.

We therefore commit in the long term to: - Embed sustainable development principles into core business practices throughout TUI Group. - Use the collective influence of TUI Group to drive sustainability within the leisure travel industry. - Understand and respect the needs of our stakeholders, including customers, colleagues, shareholders, suppliers, industry partners and local communities. - Comply with all relevant legislation, act in advance of it where possible, and keep pace with best practice. - Deliver long-term strategic benefit and shareholder value by maximising the opportunities that sustainable development presents. In support of the above, we will work to: - Prevent pollution wherever possible, and continually improve our environmental performance, specifically by reducing our carbon emissions through work programmes with our airlines, cruise operations, hotels, ground transport and office premises. - Optimise our holidays’ environmental, economic and social impact, by embedding sustainability into our supply chain and initiating activities that protect and restore the natural environment, biodiversity and enhance local livelihoods. - Provide information, training and support to colleagues, gaining their commitment to taking action on sustainable development issues. - Encourage our customers to choose more sustainable travel options, and to take action to reduce their negative impacts and maximise their positive impacts in destinations. vi) How this is gaining you strategic advantage over your competitors: Saving money By investing in modern aircraft and cruise ships. E.g. the Boeing 787 Dreamliner is c. 20% more fuel efficient than aircraft it replaces, saving money through its improved fuel efficiency. In 2015 TUI identified cost savings of c. €10m through sustainability initiatives across the business – primarily from our airlines, cruise operations, hotels & retail estate. Better value for customers In 2015 we carried almost two million passengers on the Dreamliner and received exceptional customer feedback. With our hotels we have found a clear link between more sustainability managed hotels (i.e. those with sustainability certifications) and higher customer satisfaction scores. Enhanced reputation We already have more sustainable holiday options than competitors and have clear marketing & product quality advantage over competitors in this area. Customers in our six key source markets rank us as either the best (4 markets) or 2nd best (2 markets) leading tour operator for sustainability. Colleagues More engaged colleagues through local and Group-wide SD initiatives and communications. vii) most substantial business decisions made during the reporting year that have been influenced by the climate change driven aspects of the strategy - Invested significantly in cutting edge aviation technology. In May 2015, TUI announced delivery of up to four new, Boeing 787-9 Dreamliners, forecast to emit 20% less CO2 per passenger than comparable aircraft & help reduce absolute & relative fuel burn as per TUI's strategy. - TUI also committed to purchase around 50 Boeing 737 MAX aircraft from 2018 onwards—forecast to improve fuel efficiency by 13% per seat compared to the Boeing 737s currently in our fleet. - Launch of the TUI Cruises Mein Schiff 4 (entered service June 2015) which uses a combined exhaust gas after-treatment system and will consume 30% less

energy than other ships of that size. - Implemented certified environmental management system, with 5 of our airlines and 7 of our cruise ships having achieved ISO 14001 certification.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price of carbon?

No, but we anticipate doing so in the next 2 years

CC2.2d

Please provide details and examples of how your company uses an internal price of carbon

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makers Trade associations Funding research organizations Other

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

Mandatory carbon reporting

Support

TUI Group has called for an industry standard on reporting fuel and carbon efficiency for airlines. The call for a set of common metrics to report carbon emissions will ensure greater transparency so customers can make informed decisions about which airlines to choose. The Civil Aviation Authority (CAA) in the UK had been given new duties in the Civil Aviation Act 2012 to ensure that airlines set out the environmental impact of aviation, and publish information that helps consumers compare the emissions of different airlines. In addition, in several countries where TUI businesses are operating, mandatory carbon reporting standards are already in place, e.g. Grenelle II in France or mandatory reporting regulations in the UK and Germany.

TUI supports the CAA’s proposal to develop a standardised methodology for accounting for and publishing airline carbon emissions. TUI Group reports its airlines’ carbon emissions per revenue passenger kilometre in grams (gCO2/RPK), a common standard, but not yet “the standard” unit of measurement used by airlines to communicate their efficiency. TUI’s airlines are among the most fuel-efficient in Europe, with emissions of 66.0g CO2/RPK in FY15 (audited by PwC). TUI communicates this to customers through customer-facing websites, Annual Report and Accounts, and the Group’s annual Sustainable Development Report. TUI welcomes the opportunity to compare its key GHG metrics with its peers.

Cap and trade

Support with minor exceptions

TUI Group continues to support the inclusion of aviation emissions in the EU ETS, which has the potential to be a cost-effective and affordable instrument for reducing the environmental impact of aviation. TUI has participated in the EU ETS since January 2012. The full scope of ETS has been temporarily suspended in order to allow the UN’s aviation body, the International Civil Aviation Organization (ICAO), to report on its efforts to develop a global emissions trading solution. TUI’s German airline, TUIfly, is a member of Bundesverband der Deutschen Luftverkehrswirtschaft (BDL) – the German Aviation Association. Their aims are to make air travel more environmentally friendly and develop the future of German aviation.

TUI believes that a well-designed global monetary based mechanism should deliver tangible environmental gains, minimise the administrative burden on participating companies, and avoid distortions to competition. Ideally, such a scheme would be global, taking account of the international nature of aviation. At present, however, the EU ETS does not fulfil these criteria, and has sustained strong challenges from airlines based in the United States and China, among many others. We also believe that a proportion of the revenue raised from the sales of emission permits should be ring-fenced by Member State governments for research and development that will help to reduce the industry’s carbon footprint, .specifically through incentivising the use of alternative sustainable fuels. TUI is a member of the Emissions Trading Group (ETG) which campaigns for legislative changes that will enable operators to work effectively with the EU ETS. We anticipate the adoption of a global monetary based mechanism at the ICAO council during 2016 that would lead to its implementation by 2020.

Clean energy generation

Support Across Europe, governments are in the process of developing next generation sustainable aviation fuel. TUI believes that this strategy should reflect the accelerated pace of aviation fuel

TUI supports SAFUG’s view that policy makers need to recognise the critical importance of catalysing the development of safe, sustainable and commercially viable


Corporate Position



development, and devise mechanisms to incentivise investment and build a next generation sustainable aviation fuel infrastructure. Next generation sustainable aviation fuel – fuels derived from independently-certified sustainable biomass, waste streams or other renewable or sustainable sources – could play a significant role in reducing carbon emissions from aviation in the UK and beyond. There has been dramatic progress over the past few years in developing sustainable fuels for aviation, but the industry is in the early stages of market development. Production volumes of these new fuels are low and the fuel price is high, which means that these sustainable fuels are not yet competitive with oil-derived kerosene, the current standard aviation fuel. TUI is a member of SAFUG (Sustainable Aviation Fuel Users Group), a coalition of global airlines that account for approximately 33% of global commercial aviation fuel demand. TUI Nederland partnered with AlgaePARC (which is part of Wageningen University in the Netherlands) to facilitate the research for the development of next generation sustainable aviation fuel. One of the leading research themes is specifically focusing on algae as a next generation sustainable aviation fuel feedstock. TUI has taken a seat on the Sustainable Aviation (UK) board, and contributed to Sustainable Aviation’s roadmap for sustainable fuels (published in Dec 2014). TUIfly Nordic has joined the Nordic Initiative for Sustainable Aviation (NISA), which brings together key players from the Nordic aviation sector to push forward the development of sustainable aviation fuels.

fuels for aviation. Renewable aviation fuels are being developed to address key issues with existing petroleum fuels, including greenhouse gas emissions and energy security. TUI also supports the Sustainable Aviation Roadmap's conclusions that with the right policy and investment framework UK aviation can significantly reduce its CO2 emissions, and that will require a step change in the current policy and investment framework for sustainable aviation fuels. In 2015, green diesel was trialled as part of the ecoDemonstrator programme, in partnership with Boeing. The green diesel tested was a blend of jet fuel with green diesel made from material that included waste animal fats and used cooking oil.

Carbon tax Support with minor exceptions

The UK Government’s Air Passenger Duty (APD) was one of the first attempts to use taxation to reduce carbon emissions from aviation. In FY 2014/15, TUI’s UK airline, Thomson Airways, paid over £100m in Air Passenger Duty. The UK Government has stopped claiming that APD is an environmental tax – it is a revenue-raising tax measure and does not incentivise airlines to improve their carbon efficiency. Because it is a UK national tax, APD does not take into account the aviation taxation regimes of other countries. For example, in 2012, the German Government introduced a departure tax for its country’s aircraft operators, regardless of whether an emissions tax has already been paid for that same flight under another scheme i.e. the EU ETS arrangements. That means TUI effectively pays emissions taxes

TUI supports the UK-led campaign ‘A Fair Tax on Flying’, which calls on the UK Government to make aviation tax fairer. We recognise the small steps that have taken children below the age of 16 from paying APD, but the tax still remains the highest in the world and should be withdrawn. The campaign is currently calling for APD to be cut by at least 50%.


Corporate Position



twice in its two biggest source markets, Germany and the UK, as well as its liabilities under the EU ETS.

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position

on climate change

consistent with

theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

Global Sustainable Tourism Council (GSTC)

Consistent

The GSTC works to: 1) promote a universal set of principles that define sustainable tourism; 2) expand understanding; 3) increase sustainable tourism best practices; and 4) generate new markets for sustainable holidays. At the core of their efforts are the Global Sustainable Tourism Criteria, a set of voluntary principles that provide a framework for the sustainability of tourism businesses across the globe.

Jane Ashton, Director of Sustainable Development at TUI is member of the GSTC Board (Vice Chair) and is on the Executive Committee responsible for steering the activities of the organisation. The GSTC represents a diverse and global membership, including UN agencies, leading travel companies, hotels, country tourism boards, tour operators, individuals and communities, which are actively involved with local governments to achieve best practices in sustainable tourism.

Association of British Travel Agents (ABTA)

Consistent

ABTA is the UK’s leading travel association. ABTA's aims include: - Sharing the benefits of tourism to ensure destinations thrive - Managing the issues of finite resources and environmental impact - Making a fair tax contribution both at home and in the destinations - That the industry

TUI is a member of ABTA and participates on its Sustainable Tourism Committee and Travelife committee. TUI UK’s Customer Operations Director (Fraser Ellacott) is a member of the ABTA board and Garry Wilson (MD Product Purchasing) is a Travelife Board member.

Trade association

Is your position

on climate change

consistent with

theirs?



takes the lead in managing natural resources responsibly and in mitigating impacts throughout the supply chain. ABTA developed and pioneered the Travelife Supplier Sustainability System which has grown to be one of the world’s leading hotel sustainability management and certifications and is GSTC recognised.

Sustainable Aviation (SA)

Consistent

Sustainable Aviation, a UK aviation industry initiative to which TUI UK's Airline (Thomson Airways) is a partner and signatory, has made a number of carbon commitments. Sustainable Aviation believes that the aviation industry should aim to reduce its actual carbon emissions through (a) technology; (b) sustainable alternative fuels; (c) operational improvements including air traffic management with additional policy measures to further incentivise these developments only if necessary.

TUI Group has been given a seat on the Council for Sustainable Aviation following the businesses ongoing commitment to sustainability. Jane Ashton, Group Director of Sustainable Development and Eddie Redfern, Head of Regulatory Affairs (Aviation), will jointly represent TUI, the only Tour Operator on the Council. TUI leads on the waste work group.

Dutch Association of Travel Agents and Tour Operators (ANVR)

Consistent

Main vision: For sustainable tourism to have become widely accepted by 2025 and fully integrated into the operational management of the ANVR members. We will have maximised the positive effects of the travel product and minimised the negative effects, with the aim of achieving a balance between People, Planet and Profit. This applies to both the countries of origin and the destination countries.

TUI is actively involved in a frontrunners committee and helped formulate a vision for the future 2025 on sustainable development, including climate change.

Deutscher Reiseverband (DRV)

Consistent

DRV represents the interests of small, mid-sized and large companies in the travel industry vis-a-vis service providers from inside and outside Germany and vis-a-vis German, European and international policy makers.

Working in partnership with DRV via membership discussions and participate in its commissions of sustainability which incorporates climate change issues. Dr. Harald Zeiss (Head of Sustainability Management – TUI Deutschland) is the Chairman of the Sustainability Committee.

Schweizer Reise-Verband (SRV)

Consistent

The Swiss Travel Association (SRV) is the representative association of travel agents, tour operators, online travel agents and incoming agencies in Switzerland and Liechtenstein. The SRV provides various services for the benefit of its members and is committed to fair conditions. Consumers, the media, the public and authorities are main drivers for concern.

Roland Schmid (Director Corporate Communications & Sustainability Management – TUI Suisse) is Chairman of the Sustainability and Social Welfare working group.

Trade association

Is your position

on climate change

consistent with

theirs?



Cruise Lines International Association (CLIA)

Mixed

Cruise Lines International Association (CLIA) is the world's largest cruise industry association with representation in North and South America, Europe, Asia and Australasia. Primary goals include; advocating the industry’s legal, legislative and technical positions to key domestic and international regulatory organizations, policy makers and other industry partners to foster continued growth of a safe and secure cruise industry, and actively protect the marine environment with minimal impact on the ocean, marine life and destinations.

TUI Cruises are proactive in stakeholder discussion, in information sharing and creating more ambitious climate protection goals. We add statements to draft position papers on a regular basis, and help to develop best practice by working with industry colleagues.

The European Travel Agent's & Tour Operator's Associations (ECTAA)

Consistent

ECTAA is the Group of national travel agents’ and tour operators’ associations within the EU. Among its aims is creating the best possible conditions to ensure that destinations worldwide are able to thrive whilst also being sustainable.

TUI is a member of the European Travel Agents and Tour Operators’ Association and participates in the sustainable tourism committee.

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

Yes

CC2.3e

Please provide details of the other engagement activities that you undertake

Each year TUI executives present to international stakeholders at numerous events. Examples include: TIMM Project (Total Impact Measurement & Management) Method of engagement: Partnership between TUI Group, PwC and the Travel Foundation

Topic of engagement: A holistic approach for measuring the environmental, economic, tax and social impacts of tourism in a destination. Nature of engagement: In July 2015, PwC & TUI Group launched the results of the TIMM Project at an event in London. The research focused on 60,000 TUI customers in eight hotels in Cyprus. TUI provided access to hotels and suppliers, data for the analysis, a technical review of the report, and played a role on the Advisory Panel. Actions advocated as part of engagement: This ground-breaking pilot study provides clear insight into the impacts visitors have on a destination, and the importance of looking beyond basic economic and environmental measures. The results clearly reveal that tourism operations generate overwhelmingly positive economic and social benefits (€84 per customer per night), but while the environmental damage caused by one tourist may be small (€4 per customer per night), it is multiplied by millions of tourists over the years and so destinations must be carefully managed if they are to stay attractive in the future. ITB Berlin 2015 Method of engagement: TUI Group Director Sustainable Development on panel discussion Topic of engagement: The tourism industry in times of climate change Nature of engagement: Presentation and panel discussion on driving down carbon emissions from TUI and the travel and tourism industry Actions advocated as part of engagement: it is the responsibility of travel organisations to manage their environmental impact, with a focus on carbon intensive areas, i.e. airlines, cruise and hotels. Airlines should follow TUI's lead by investing in next generation aircraft and innovative aviation technology to reduce carbon emissions. COP21 Paris Method of engagement: Representative on panel discussion at the UN Climate Change Conference Topic of engagement: Corporate Responsibility and Carbon Emissions Nature of engagement: Presentation and discussion on carbon management and sustainability strategy at TUI Actions advocated as part of engagement: The requirement of private sector leadership on carbon management and responsibility to lower GHG emissions We are also part of the UNWTO’s sustainable tourism task force of the UNEP 10-year framework for sustainable consumption and production, adopted at the Rio+20 conference, where Jane Ashton, our Director of Sustainability, sits on the multi-stakeholder advisory panel. The task force is working to foster collaboration between key organisations working in this space to scale up initiatives.

CC2.3f

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

The Group Sustainable Development Department’s role is to drive change towards a more sustainable company and to forge Sector leadership. Our Group-wide SD colleagues meet regularly to tackle issues and develop programs of work. Each key source market within the Group has a sustainable development coordinator or team with a remit to develop and implement sustainable development strategy, supported by a network of champions. This results in a common approach across TUI to climate change engagement and sustainable strategies. TUI works to embed sustainability and climate change objectives into its business operations, such as product and purchasing, airlines, cruise operations and destinations services to ensure that 'business as usual' is consistent with our overall climate change / sustainability strategy.

To review performance and to measure progress, we have incorporated sustainable development questions into regular employee surveys at Sector and Group level and we conduct an annual Sustainable Development Evaluation of TUI tour operating businesses, as well as specific surveys of airlines, hotels and cruise operations. The Board sets the Group’s strategic direction and long-term objectives for sustainable development, and signed off the Group's sustainability strategy. Sustainability is integrated into strategy at a source market and platform level.

CC2.3g

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

Absolute target Intensity target

CC3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction

from base year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a

science-based target?

Comment

Abs1

Scope 1+2 (location-based)+3 (downstream)

0.6% 20% 2015 39162 2020

No, and we do not anticipate setting one in the next 2 years

In 2015, TUI Group set a target to reduce absolute carbon emissions from its major premises (Scope 1 & 2), retail premises (Scope 1 & 2) and brochure production (Scope 3) by 20% by 2020, against a baseline of 2014/15. TUI launched its new 5 year strategy in 2015 and therefore it is not possible to set science-based targets within the next 2 years.

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in scope

% reduction

from base year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

Int1 Scope 1 78.9% 10%

Grams CO2e per revenue passenger kilometer*

2014 67.6 2020


In 2015, TUI Group set a target to reduce relative (intensity) carbon emissions from its airlines by 10% by 2020, against a baseline of 2013/14. TUI airlines remained operationally unaffected by the merger and so the baseline of FY2014 was applied. TUI launched its new 5 year strategy in 2015 and therefore it is not possible to set science-based targets within the next 2 years.

Int2 Scope 1 9.2% 10%

Other: Kilograms CO2e per guest per

2015 114 2020

No, and we do not anticipate setting one in the next 2

In 2015, TUI Group set a target to reduce relative (intensity) carbon emissions from its cruise operations by 10% by 2020, against a baseline of 2014/15. TUI launched its new 5 year strategy in

ID

Scope

% of emissions in scope

% reduction

from base year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

night years 2015 and therefore it is not possible to set science-based targets within the next 2 years.

Int3 Scope 1 0.3% 10%

Grams CO2e per revenue passenger kilometer*

2015 26.7 2020


In 2015, TUI Group set a target to reduce relative (intensity) carbon emissions from its ground transport fleet by 10% by 2020, against a baseline of 2014/15. TUI launched its new 5 year strategy in 2015 and therefore it is not possible to set science-based targets within the next 2 years.

Int4 Scope 1+2 (location-based)

7.5% 10%

Other: Kilograms CO2e per guest per night

2015 9.9 2020


In 2015, TUI Group set a target to reduce relative (intensity) carbon emissions from its hotels by 10% by 2020, against a baseline of 2014/15. TUI launched its new 5 year strategy in 2015 and therefore it is not possible to set science-based targets within the next 2 years.

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change

anticipated in absolute Scope 1+2 emissions

at target completion?

% change anticipated in

absolute Scope 1+2 emissions

Direction of change

anticipated in absolute Scope 3 emissions at

target completion?


absolute Scope 3 emissions

Comment

Int1 No change 0 No change 0 In line with TUI’s growth strategy, the 10% intensity target reduction will help TUI maintain its current level of GHG emissions whilst expanding our

ID

Direction of change

anticipated in absolute Scope 1+2 emissions

at target completion?


absolute Scope 1+2 emissions

Direction of change

anticipated in absolute Scope 3 emissions at

target completion?


absolute Scope 3 emissions

Comment

operations and taking more customers on holiday.

Int2 No change 0 No change 0 In line with TUI’s growth strategy, the 10% intensity target reduction will help TUI maintain its current level of GHG emissions whilst expanding our operations and taking more customers on holiday.



CC3.1d

Please provide details of your renewable energy consumption and/or production target

ID

Energy types

covered by target

Base year

Base year energy for energy type covered

(MWh)

% renewable

energy in base year

Target year

% renewable

energy in target year

Comment

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete (time)

% complete (emissions or

renewable energy)

Comment

Abs1 0% 0%

Following the December 2014 formation of TUI Group and significant operational and structural changes in the business, FY2015 (the reporting period) has been used as the baseline year for TUI Group’s new sustainability strategy targets. The new targets follow on from the completion of TUI Travel’s Sustainable Holiday Plan targets in 2014.

Int1 16% 23% TUI airlines remained operationally unaffected by the merger and so the baseline of FY2014 was applied (the final year of TUI’s previous strategy). An improvement of 2.3% was achieved from FY2014 (67.6g CO2/rpk) to FY2015 (66.0g CO2/rpk).

Int2 0% 0%


Int3 0% 0%


Int4 0% 0%


CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

CC3.2

Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

aggregation

Description of product/Group of

products

Are you

reporting low carbon product/s or avoided emissions?

Taxonomy, project or

methodology used to classify product/s as low carbon or to calculate avoided emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon

product/s in the

reporting year

Comment

Product

TUI Group owns or manages more than 130 aircraft across six airlines, making us Europe’s 7th largest airline fleet. We are leading the way by showing that more efficient flying is possible: TUI airlines already emit 30% less carbon dioxide than the industry norm and we have set stretching goals to reduce our emissions further by 2020.

Avoided emissions

Other: Technical specifications of new aircraft being introduced to TUI’s fleet (e.g. Dreamliner 20% more fuel-efficient than aircraft it is replacing), and comparison against available competitor data in the public domain which demonstrates TUI’s leadership status regarding CO2 per rpk for airlines.

TUI airlines emit 30% less carbon dioxide than the industry norm per passenger km. As an example, a return flight from London to the Dom Rep would save approximately 0.4 CO2 tonnes per person. As TUI has reported ‘avoided emissions’ the final 2 columns in this table have been left blank.

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 1

To be implemented* 1 490

Implementation commenced* 5 1200

Implemented* 4 50313

Not to be implemented 0

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Transportation: Fuel Reduction Programme across 22609 Scope 1 Voluntary 1400000 0 <1 year Ongoing This is an

Activity type




Scope



(unit currency


Investment required

(unit currency -


Payback period


the initiative

Comment

fleet the TUI Group Airlines related to on-going efficiency planning. Our airlines continually seek to improve operational efficiencies such as single-engine taxiing, continuous descent approach and optimised flight planning, reducing weight on-board, and associated maintenance activities e.g. engine-wash programmes. Also, we have established a dedicated network of airline environmental managers from across TUI who meet regularly to share best practice. (CC3.1 - Targets INT1)

on-going initiative, reviewed on an annual basis.

Transportation: fleet

Fuel Reduction Programme across cruise operations related to on-going streamlining of itineraries. Absolute reductions achieved through no specific investment. Our cruise businesses continually seek to improve and adjust itineraries based on customer feedback, good practice and new destinations. Ship Masters are incentivised to come in under projected fuel consumption. In 2015, 7 cruise ships out of 13 were ISO 14001 certified (CC3.1 - Targets INT2)

24229 Scope 1

Voluntary

2400000 0 <1 year Ongoing

This is an on-going initiative, reviewed on an annual basis.

Energy TUI UK Retail has rolled out smart 2845 Scope 2 Voluntary 280000 128500 <1 year Ongoing This is an

Activity type




Scope



(unit currency


Investment required

(unit currency -


Payback period


the initiative

Comment

efficiency: Building services

meters across 95% of its stores to enable closer monitoring of its energy usage as part of its energy-saving policy. Energy saving initiatives include introducing voltage optimisers, adapting building management systems, installing more efficient air conditioning and updating shop refits to include LED lighting. TUI Germany and TUI Netherlands are undergoing large scale modernisation of 550 retail stores involving state of the art lighting and air-conditioning systems and the installation of smart energy meters. The investment figure in column 7 also includes consultancy, as well as the systems and hardware. (CC3.1 - Target ABS1)

(location-based)

on-going initiative, reviewed on an annual basis.

Process emissions reductions

Group-wide brochure pagination reduction. TUI is embracing an online driven future and therefore seeking to reduce brochure print runs each year to maximise customer experience and minimise printing and distribution based emissions associated with brochure production. The CO2 savings are associated with cutting

630 Scope 3

Voluntary

6400000 0 <1 year Ongoing

This is an on-going initiative, reviewed on an annual basis.

Activity type




Scope



(unit currency


Investment required

(unit currency -


Payback period


the initiative

Comment

paper use (brochure print runs), printing, storage & distribution. (CC3.1 - Target ABS1)

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards

TUI is working to meet the EU Energy Efficiency Directive (EED), which requires companies to measure energy use, perform audits and submit documentation. Each EU member state has set individual guidance and timelines. Audits in Germany and other European countries are taking place in 2016. Implementing audit recommendations will drive further energy reductions across TUI’s operations.

Dedicated budget for energy efficiency

TUI has annual budget for sustainability related activities, including energy efficiency/reduction projects. For example, providing hotels with expert consultancy to help reduce energy consumption.

Employee engagement Achievement of behavioural change through employee engagement is a key initiative for the Group. For example, driving down energy consumption from TUI UK’s retail estate using a specially designed ‘TUI Turtle’ dashboard to show energy reduction performance at each store.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section reference

Attach the document

Comment

In mainstream reports (including an integrated report) in accordance with the CDSB Framework

Complete Pages 146-149 (ARA Main body) & 367-381 (Magazine)

https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC4.1/TUI Group ARA FY15 with Magazine.pdf

TUI Group Annual Report & Accounts 2015 - with TUI Magazine

In voluntary communications

Complete Pages 14-23 (Step Lightly)

https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC4.1/TUI Group Better Holidays Better World Report 2015.pdf

TUI Group Annual Sustainability Report 2015 - Better Holidays Better World


Complete Pages 9-12 (Step Lightly)

https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC4.1/TUI Group Better Holidays Better World strategy 2015-2020.pdf

TUI Group Sustainability Strategy 2015-2020 Better Holidays Better World


Complete Pages 35-44 https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC4.1/TUI Nederland SD Report FY15.pdf

TUI Nederland Sustainability Report 2015


Complete Pages 12-17 https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC4.1/TUI Belgium SD Report FY15.pdf

TUI Belgium Sustainability Report 2015

In voluntary Underway - Pages 10-15 https://www.cdp.net/sites/2016/72/56372/Climate Change TUI Cruises

Publication

Status


Attach the document

Comment

communications previous year attached

2016/Shared Documents/Attachments/CC4.1/TUI Cruises Environmental Report 2014.pdf

Environmental Report 2014

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Cap and trade schemes

Description of Risk - Since 2012 the EU ETS scheme has included aviation. All (EU & non-EU) airlines within, arriving & departing the EU must participate. Airline emission allowances are capped at 97% of their 2004-06 average emissions level, reducing to 95% by 2013. How Risk affects TUI - Whilst in a 'stop the clock' phase during 2014/15, the EU ETS would switch back to full scope from 2017 onwards after the 2016 ICAO Assembly if there is no agreement on a global market-based measure for international aviation emissions. The EU ETS will certainly add to the cost-base of aviation carriers, some more than others. TUI currently operates 6 airlines that must comply with the EU ETS.

Increased operational cost

Up to 1 year

Direct Virtually certain

Low

The financial impact is estimated to be €1m to €5m per calendar year, based on the current framework for the EU ETS and cost of permits.

All 5 of TUI’s charter airlines have achieved the ISO 14001 Environment Management Standard, covering 95% of our aircraft. The airlines continue to submit the necessary reports to the appropriate competent authority in each of the countries the Airline is based, e.g. The Environment Agency in the UK. The strategy is to ensure the cost of ETS to TUI is kept as low as possible by buying as few extra emission permits (above those given for free as part of the free allocation). The ETS exposure has been fully hedged, in line

The cost to participate in the EU ETS (excluding the permits) is incorporated in the day to day cost of running our business. Expenditure has been made to PwC to audit our airlines' emissions each calendar year - verification is a legal requirement for airlines captured under EU ETS. The cost of this verification to TUI is €32k to €64k per annum. TUI has invested and implemented a Risk & Control solution, with operating costs of approximately €26k per annum.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

with good practice and TUI’s hedging policy, using Over The Counter (OTC) derivatives as well as making use of the permitted amount of Certified Emissions Reduction (CERs) products. TUI will continue to challenge itself to reduce its carbon emissions from the airlines with on-going fuel efficient flying techniques, challenging the airspace management bodies to improve air transport movements to reduce on-route delays, and where feasible, continue to invest in more fuel-efficient aircraft – e.g. the order for new 787

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Dreamliners. Audit services (required by the Directive) have been procured from PwC to ensure appropriate and timely reporting has been made and TUI colleagues have collaborated to ensure a risk management approach has been taken. Case Study: TUIfly partnered the European Union’s SESAR (Single European Skies) project, an ambitious initiative to reform European air traffic management and reduce the environmental impact of European aviation.

Fuel/energy taxes and

Description of Risk - The EU Energy Efficiency

Increased operational

Up to 1 year


Low-medium

Civil penalties for non-

TUI Group undertook a

TUI anticipates engaging with

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

regulations Directive (EED) entered into force on 4th December 2012 and will impact large companies operating in the EU 28 nations – including TUI Group. Each of the EU 28 Member States was required to transpose this legislation into its national law by July 2014, although not all countries met this deadline further complicating the task for TUI Group. Furthermore, guidance for businesses on how to comply has been inconsistent across Europe. TUI must comply with the legislation in each Member State where it has operations and meets the trigger thresholds (i.e. has more than 250 employees in a qualifying business) by 5th December 2015. How Risk affects TUI - TUI's obligated companies are required to measure energy use, perform audits and produce evidence/documentation packs to submit to their local competent body – for example, in the UK it

cost compliance at the regulator’s discretion will apply in each Member State. For example, in the UK, the worst case has been outlined as a £50,000 fine plus further penalties of £500/day for up to 80 days plus compliance remedy, totalling £90,000. As TUI Group has exposure in multiple locations the risk of financial penalties increases.

thorough review of its European operations to determine in which countries it must comply with EED law. This review was conducted by the Group Sustainability Dept. in partnership with Group Legal representatives. Responsibility for compliance then rested within each EU member state. Case Study: In the UK, TUI appointed a lead assessor (3rd party) who advised on scope and the recommended route to compliance. An ESOS Energy Assessment Report was prepared and signed off by TUI UK’s Managing Director and

consultants to assist with the compliance of this legislation. Based on an estimated number of consultancy days for TUI’s exposure across the 28 EU Member States and an approximate daily cost based on UK consultancy rates, TUI’s estimated total cost of management will be in the region of €100k to €250k.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

is the responsibility of the Environment Agency to administer the scheme. Routes to compliance will vary from each Member State across the EU 28 and therefore must be addressed on an individual state basis, rather than a combined Group approach.

submitted to the Environment Agency to meet the December 2015 deadline.

CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Tropical cyclones (hurricanes and typhoons)

Description of Risk - Extreme weather events such as hurricanes, typhoons or flash floods and their consequences can affect TUI Group's ability to do business in

Inability to do business

1 to 3 years

Direct About as likely as not

Low-medium

The financial impact is estimated to be between €1m to €30m per major event, based on customer repatriation, re-booking, damage to assets and

TUI Group maintains a balanced destination mix to minimise concentration and having flexible supplier agreements in order to enable

The estimated financial cost would only be spent in the event of a natural disaster affecting our customers in destination. TUI makes financial provision in the

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

regions around the world. The unpredictability of these events also increases the challenge to cope with them. How Risk affects TUI - The effects of such extreme weather events could lead to changes in TUI's operations. The infrastructure of affected regions might be impaired more heavily within the coming years. This can result in damage to or reduction in quality and/or reputation of some of our key destination and hotels. As a consequence, this might have an impact on the attractiveness of the region and consequently on our ability to send guests to these regions.

resuming normal service in our destinations for customers.

capacity to be switched as required. TUI also minimises the impact of negative events in our destinations by ensuring the effective execution of our established incident management and emergency response plans and the deployment of our experienced leadership teams to support and repatriate stranded customers. Case Study: TUI implemented an effective crisis management plan several years ago and deployed this during the volcanic eruption in Iceland and built on the experience and impact to our

event of such a disaster. The cost of management is determined on a case by case basis, estimated to be between €1m to €30m per major event.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

business from hurricane Wilma in Mexico. As our business continues to become more integrated we are able to operate more consistently in destinations across our main operating source markets, sharing knowledge and developing joint programmes to address business interruption from natural disasters. These programmes help to reduce the magnitude of the impact as the business is more prepared, both financially and in terms of reacting in the event of a natural disaster.

Change in precipitation extremes and droughts

Description of Risk - Significant water scarcity due to lower and less frequent rainfall is to be expected at


1 to 3 years

Direct Likely Medium

TUI has identified there will be increased operational costs from changing (e.g. less

TUI has a 5-year sustainability strategy, Better Holidays, Better World, in which a specific

During FY15, 69% of TUI’s owned or controlled hotels held either the Travelife certification (audit

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

certain destinations that TUI Group features, for example in the Caribbean and North African regions. How Risk affects TUI - Scarcity as well as changing rainfall patterns is already having an impact on the infrastructure of destinations. The World Economic Forum considers water to be in the top ten global risks in terms of likelihood and impact for the next ten years - factors that would threaten the quality of our holidays and affect the destination communities with whom we have a responsibility to.

precipitation), extremes in temperatures and droughts and associated rises in energy demand from the increased use of desalination equipment and increase in the cost of water. As an example, the financial impact is estimated to be in the region of €15-€20k per hotel per year based on a 10% increase of energy demand and water cost.

commitment relates to reducing water consumption in our cruise operations. We also closely monitor and manage water consumption in our owned hotel portfolio and challenge our key hotel partners to reduce their water consumption in the process of achieving a GSTC-recognised sustainability certification. With utility costs typically making up 5-15% of a hotels’ operating costs, there is a win-win outcome by taking action. TUI is engaged in supporting hotel partners and projects worldwide improving the local environment

fee plus subscription costs circa €400 per hotel per annum) or other GSTC-recognised sustainability certification. The Travelife assessment criteria contains a dedicated section on water which focuses on monitoring, treatment, technology, behavioural change, communication and future planning to help hotels manage and reduce their water consumption.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

in line with our SD commitment to operate responsibly in destinations. TUI works in partnership with NGOs and other partners e.g. The Travel Foundation and GIZ, to help contribute to reducing water and other natural resource use in destinations overseas. It is in TUI’s, our customers and our destination partners’ interest that water is used responsibly now and in the future. Therefore the actions that TUI is taking are directly contributing to reducing the likelihood of water shortages in destination communities, and the magnitude of those that may

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

occur.

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Uncertainty in market signals

Description of Risk - Due to a variety of factors including rising demand, scarcity, volatility and the impact of climate change, the price of natural resources (including fossil fuels) and other energy sources are expected to rise. How Risk affects TUI - TUI requires energy sources (fossils fuels) to operate its primary business


1 to 3 years

Direct More likely than not

Medium-high

Any financial implications of fuel prices increases would be relative to the percentage increase of the fuel. If there were to be a 10% increase in the price per tonne of jet fuel used by the TUI airlines the approximate financial unmitigated impact is estimated to be in the region of 0.4% of the total Group revenue.

TUI Group is focussed on reducing its use of fossil fuels and improving the efficiency across its portfolio of operations from airlines, cruise ships, ground transport, major premises and hotels. The cost of aviation fuel is a significant part of the Group's operations. TUI has established a dedicated network of airline environmental managers from

The cost to conserve fuel, hedge fuel and improve fuel efficiency is incorporated in the day to day cost of running our business. The four new Dreamliner aircraft purchased by the Group were secured at a significant discount to the list price as a result of various concessions, allowances and support from

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

functions - aviation, water transport and ground transport. There is an on-going risk to TUl’s cost base if oil prices rise significantly. Consequently, investments have to be made in order to operate more efficiently and mitigate rising fuel costs.

across our business who meet regularly to share best practice. Furthermore, TUI's Group treasury department ensures that our business minimises the price that the business pays for aviation fuel via a trading and hedging strategy, commensurate with large organisations. TUI continues to invest in the fleet renewal of its airlines by introducing state of the art aircraft with cutting-edge technology. In May 2015, Thomson Airways announced it would take delivery of up to four new, larger Boeing 787-9 Dreamliner

Boeing. During 2015 the list price value of a 787-9 Dreamliner aircraft was US$264.4 million (approx. €230m).

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

aircraft by 2016. At the end of TUI Group’s 2014/15 financial year order commitments for new aircraft comprised 64 planes (4 Dreamliner 787s and 60 B737s) all scheduled to be delivered by 2023.

Reputation

Description of Risk - Carbon emissions from TUI Group, if not properly addressed can have a negative impact upon our reputation and impact upon brand value. There has been evidence to suggest that consumers will boycott brands with poor reputations in this area, and favour brands with a good reputation.

Reduced demand for goods/services

1 to 3 years

Direct About as likely as not

Low-medium

Numerous publications and surveys indicate consumers' rising concern about the sustainability impact of their lifestyle, and there is evidence to suggest that consumers will boycott brands with poor reputations in this area. The financial impact is estimated to be in the region of €1m based on internal discussions with colleagues in corporate

TUI has been listed on CDP's Carbon Disclosure Leadership Index for the previous 8 years. In 2014 and 2015 TUI achieved joint first place on the FTSE 350 CDLI with a maximum 100 score for climate change reporting. TUI is the only tourism group to feature in the Dow Jones Sustainability Indices (DJSI) – World Enlarged and European

There is a small admin fee to participate in CDP Climate Change of £625. There is no charge to participate in DJSI & FTSE4Good, though all 3 submissions require significant management time. Based on this, the cost to TUI would be in the region of €6k to €12k.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Research undertaken by the Federal Ministry of the Environment in Germany in 2015 found that 61% of consumers want to book a sustainable holiday. How Risk affects TUI - There is a potential on-going risk to TUI’s reputation if stakeholders do not positively respond to the changes, process improvements and emission reductions (current and planned) that TUI is focussing on. Inadequate carbon management could lead to a reduction of perceived and actual brand value and possible exclusion from

communications and brand departments.

Indexes. TUI has now been featured for nine consecutive years. TUI was included in the FTSE4Good index for the first time in 2004 and maintains it to this day in recognition of our transparency and for meeting strict social, environmental and governance standards. Inclusion in these key indices goes a long way to ensure customers, stakeholders and other interested parties that TUI is taking a responsible approach to addressing its environmental, specifically carbon management impacts. TUI Group has set out a 5-year

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

sustainability indices in the future, e.g. FTSE4Good, thereby lowering TUI Group’s attractiveness for investors, customers and other stakeholders.

sustainability strategy (2015-2020). The strategic priorities are to ‘Step Lightly’ – reducing the carbon intensity of our operations by 10% by 2020; ‘Make a Difference’ – delivering 10m Greener and Fairer holidays per year by 2020; and ‘Lead the Way’ investing €10m per year by 2020 to enhance the positive impacts of tourism. TUI publicly communicates its performance each year care of a dedicated section within the Annual Report & Accounts and a standalone SD Report.

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters

Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of

management

Cap and trade schemes

Description of Opportunity - Inclusion of aviation in the EU ETS from 2012 presents opportunities for travel companies such as TUI Group which are operating their aircraft very efficiently. How Opportunity affects TUI - Increased ability to derive competitive advantage and a leadership position in the industry due to our efficient aircraft fleet operation and sustainable flying operational practices. The efficiency of our airlines delivers substantial financial savings - both in terms of the costs of EU ETS permits and fuel procurement.

Reduced operational costs

Up to 1 year


Low-medium

The financial impact is estimated to be €1m to €6m per calendar year, based on the current framework for the EU ETS and cost of permits.

All TUI Group airlines continue to operate as efficiently as possible - it makes good business sense & reduces emissions. All 5 of TUI’s charter airlines have achieved the ISO 14001 Environment Management Standard, which covers 95% of our aircraft. The TUI airlines continue to submit the necessary reports to the appropriate competent authority in

The cost to participate in the EU ETS (excluding the permits) is incorporated in the day to day cost of running our business. Expenditure has been made to PwC to audit our airlines' emissions each calendar year - verification is a legal requirement for airlines captured under EU ETS. The cost of this verification to

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of

management

each of the countries the Airline is based, e.g. The Environment Agency in the UK. The strategy is to ensure the cost of EU ETS to TUI is kept as low as possible by buying as few extra emission permits (over and above those given for free as part of the free allocation). The ETS exposure has been fully hedged, in line with good practice and TUI’s hedging policy, using Over The Counter (OTC) derivatives as well as making use of the permitted amount of Certified Emissions

TUI is €32k to €64k per annum. TUI has invested and implemented a new Risk & Control solution with operating costs of approximately £€26k per annum.

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of

management

Reduction (CERs) products. TUI will continue to challenge itself to reduce its carbon emissions from the airlines with on-going fuel efficient flying techniques, challenging the airspace management bodies to improve air transport movements to reduce on-route delays (e.g. SESAR Joint Undertaking) and continue to invest in more fuel-efficient aircraft – e.g. new Boeing 787 Dreamliner aircraft. Audit services (required by the Directive) have been procured from PwC to ensure appropriate and

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of

management

timely reporting has been made and TUI colleagues have collaborated to ensure a risk management approach has been taken.

Fuel/energy taxes and regulations

Description of Opportunity - The EU Energy Efficiency Directive (EED) is intended to put energy as a topic on the Board Room agenda of large companies and ultimately drive down energy use. It presents the opportunity for businesses (including TUI Group) to increase focus on continued energy efficiency improvements, i.e. by implementing the findings/recommendations identified from energy audits conducted by approved 3rd party auditors. How Opportunity affects TUI - The EED has created additional focus for TUI Group’s management teams throughout each of the EU Member States in

Reduced operational costs

1 to 3 years


Low-medium

TUI’s carbon consultant based in the UK has estimated that if organisations seek to implement the findings from the energy audits they could expect to see 10 – 20% savings delivered. Based on this estimate, TUI Group could realise energy savings from its owned hotel portfolio,

TUI Group undertook a thorough review of its European operations to determine in which countries it must comply with EED law. This review was conducted by the Group Sustainability Dept. in partnership with Group Legal representatives. Responsibility for compliance then rested within each EU member state. For example, in the UK, TUI appointed a

TUI anticipates engaging with consultants to assist with the compliance of this legislation. Based on an estimated number of consultancy days for TUI’s exposure across the 28 EU Member States and an approximate daily cost based on UK consultancy rates, TUI’s estimated total cost of management

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management

method

Cost of

management

which TUI operates. Following the required energy audits, decisions will be made on implementing energy saving opportunities, through capex investments, behavioural change or other means, providing a win-win for TUI in terms of reducing future operating costs as well as associated reputational benefits.

major premises and retail estate in the region of €15m over the course of 3 years, gross of any capex investments.

lead assessor (3rd party) who advised on scope and the recommended route to compliance. An ESOS Energy Assessment Report was prepared and signed off by TUI UK’s Managing Director and submitted to the Environment Agency to meet the December 2015 deadline.

will be in the region of €100k to €250k.

CC6.1b

Please describe the inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Change in mean

Description of Opportunity - Due to

Increased demand for

1 to 3 years

Direct About as likely as

Low-medium

The financial impact is

TUI tour operating

Costs based on the

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

(average) temperature

changing precipitation patterns and the change of temperature extremes certain destinations might become more attractive, e.g. because the summer seasons extends to the shoulder months as well as destinations that are popular in the winter, e.g. Greece that can extend their passengers numbers during autumn and spring. How Opportunity affects TUI - The holiday season of certain destinations might become more attractive in the shoulder months, i.e. the main summer season for Mediterranean destinations for major tour operators is May-October with the peak being June, July and August. The shoulder months typically May & September/October could become increasingly popular

existing products/services

not estimated to be €1m to €12m. As an example, a €12m increase would be a 0.06% increase on Group revenues of €20bn.

businesses have product management functions for various destinations in order to manage and assess the on-going profitability and customer satisfaction of those destinations. Furthermore our tour operating businesses also have product development functions to continually research and develop new ideas in both existing and potential destinations. Case Study: The Alps are becoming more and more popular not only for skiing during winter time but also for hiking

management time of all the FTE (full-time equivalents) working on sustainability and carbon management throughout TUI Group would be €320k to €640k.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

and help TUI to achieve higher passenger demand which translates into a more positive load factor in these months which typically would be less busy. In addition, due to the changes of customer behaviour and preferences, tourism companies have the opportunity to identify new destinations. TUI is therefore presented with the opportunity to extend its selling period for destinations effected by changes in weather conditions. In addition, customers might be attracted by new destinations during these extended periods.

in spring and autumn. TUI is working on identifying and further developing the destinations which fit to the demands of our customers.

CC6.1c

Please describe the inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Other drivers

Description of Opportunity - An increased focus providing services and products to our customers in an efficient way i.e. with a climate protection and mitigation lens, will create carbon and therefore cost efficiencies. How Opportunity affects TUI - There is a clear link between carbon-efficiency translating through to cost-efficiency. By introducing new products and services TUI can differentiate itself from its competitors (i.e. gaining competitive advantage) and increase its

Other: Increased efficiency of goods & services / attracting new customers

1 to 3 years

Direct Very likely Medium

In FY15, TUI Group identified circa €10m of cost savings as a result of carbon-related efficiencies across the business, including airlines, cruise operations, retail estate, major premises and owned hotel portfolio.

TUI’s proactive approach is to ensure that wherever possible the cost of carbon is factored into the way we do business – to drive efficiency. Carbon management is one of our core issues. The business is serious about driving carbon and cost out of the business with its flexible business model. Furthermore, fuel and energy conservation is an on-going priority for TUI across its operations, including airlines, cruise operations, differentiated hotel and our ground transport fleet. For example, TUI has established

The capital outlay (investment) costs have, in most cases, been minimal for very positive returns in terms of carbon and cash savings. Costs based on the management time of all the FTE (full-time equivalents) working on sustainability and carbon management throughout TUI would be €320k to €640k.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

market share. a dedicated network of airline environmental managers to share best practice across the Group.

Reputation

Description of Opportunity - To maintain and enhance its reputation, a company needs to communicate internally and externally its sustainability and climate protection measures. This is a key responsibility of a public quoted company like TUI Group. How Opportunity affects TUI - Working to achieve change – whether behavioural or with the aim of reducing emissions – the

Increased demand for existing products/services

1 to 3 years

Direct Very likely Medium

When it comes to measuring reputational benefit, this tends to be a rather intangible commodity to measure. The financial impact for a poor reputation is estimated to be in the region of €1m (based on internal discussions with colleagues in corporate communications and brand departments) therefore the same figure could be applied to the opportunity of an enhanced reputation.

TUI has been listed on CDP's Carbon Disclosure Leadership Index for the previous 8 years. In 2014 and 2015 TUI achieved joint first place on the FTSE 350 CDLI with a maximum 100 score for climate change reporting. TUI is the only tourism group to feature in the Dow Jones Sustainability Indices (DJSI) – World Enlarged and European Indexes. TUI has now been featured for nine consecutive years. TUI was

There is a small admin fee to participate in CDP Climate Change of £625. There is no charge to participate in DJSI & FTSE4Good, though all 3 submissions require significant management time. Based on this, the cost to TUI would be in the region of €6k to €12k.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

strategic direction to address carbon emissions can and will enhance the internal and external reputation. In addition, due to the increasing threat of climate change, relevant measures become more important for companies and their key stakeholders. Embedding mitigation and/or adaptation measures into corporate strategy is crucial. Responsible business practices and the prudent use of natural resources is enlightened self-interest for a publicly

included in the FTSE4Good index for the first time in 2004 and maintains it to this day in recognition of our transparency and for meeting strict social, environmental and governance standards. Inclusion in these key indices goes a long way to ensure customers, stakeholders and other interested parties that TUI is taking a responsible approach to addressing its environmental, specifically carbon management impacts. TUI Group has set out a 5-year sustainability strategy (2015-2020). The strategic

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

quoted company. In addition, it presents an opportunity in terms of increased customer demand and loyalty and that drives turnover.

priorities are to ‘Step Lightly’ – reducing the carbon intensity of our operations by 10% by 2020; ‘Make a Difference’ – delivering 10m Greener and Fairer holidays per year by 2020; and ‘Lead the Way’ investing €10m per year by 2020 to enhance the positive impacts of tourism. TUI publicly communicates its performance each year care of a dedicated section within the Annual Report & Accounts and a standalone SD Report.

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Wed 01 Oct 2014 - Wed 30 Sep 2015

6443896

Scope 2 (location-based) Wed 01 Oct 2014 - Wed 30 Sep 2015

438855

Scope 2 (market-based) Wed 01 Oct 2014 - Wed 30 Sep 2015

475231

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

Defra Voluntary Reporting Guidelines

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

Other

Other

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Other 1: Global Reporting Initiative Framework & Guidelines Other 2: IEA Electricity CO2 factors 2015

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 IPCC Fourth Assessment Report (AR4 - 50 year)

CO2 Other: DEFRA GHG Reporting 2015

CH4 Other: DEFRA GHG Reporting 2015

N2O Other: DEFRA GHG Reporting 2015

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Further Information

CC7.1 - Following the merger of TUI Travel PLC and TUI AG in December 2014, the new baseline year for TUI Group's emissions is FY15 (01 Oct 2014 - 30 Sept 2015). CC7.4 - See attached Excel template for emission factors. As per the CDP guidance, the electricity emissions factors for IEA have not been included.

Attachments

https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC7.EmissionsMethodology/7.4 TUI CO2e Emission Factors CDP 2015 - IEA excluded.xlsx

Page: CC8. Emissions Data - (1 Oct 2014 - 30 Sep 2015)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Other: Affiliated companies over which TUI Group has directly or indirectly financial control (50%+) or 100% operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

6443896

CC8.3

Does your company have any operations in markets providing product or supplier specific data in the form of contractual instruments?

Yes

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-

based

Scope 2, market-

based (if applicable)

Comment

438855 475231 For the purpose of market-based reporting TUI has applied residual emission factors where available. TUI has reported some supplier-specific emissions rates in CC11.4 which have not been included in this market-based figure whilst TUI is working on collecting this data for accurate reporting in the future.

CC8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of

Scope 1 emissions from this source

Relevance of

location-based Scope 2 emissions

from this source

Relevance of market-based

Scope 2 emissions from this source (if

applicable)

Explain why the source is excluded

Source

Relevance of

Scope 1 emissions from this source

Relevance of

location-based Scope 2 emissions

from this source

Relevance of market-based

Scope 2 emissions from this source (if

applicable)

Explain why the source is excluded

Emissions from very small businesses within the Group

Emissions are not relevant



TUI Group has some businesses which are non-carbon intensive. The amount of carbon emitted is insignificantly low in comparison to the carbon intensive parts of the business, e.g. Airlines. The effort to monitor these business units would be disproportionately high compared to the carbon emissions they produce. Therefore, a little uncertainty range has been stated in question CC8.5.

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty

range

Main sources of uncertainty

Please expand on the uncertainty in your data

Scope 1 Less than or equal to 2%

Data Gaps

TUI Group comprises a diverse range of companies and activities. It has some business units which are not directly assigned to one of the carbon intensive sectors. The amount of produced carbon is insignificantly low in comparison to the carbon intensive sectors. Moreover the effort to monitor these business units would be disproportionally high.

Scope 2 (location-based)

Less than or equal to 2%

Data Gaps

TUI Group comprises a diverse range of companies and activities. It has some business units which are not directly assigned to one of the carbon intensive sectors. The amount of produced carbon is insignificantly low in comparison to the carbon intensive sectors. Moreover the effort to monitor these business units would be disproportionally high.

Scope 2 (market-based)

Less than or equal to 2%

Data Gaps

TUI Group comprises a diverse range of companies and activities. It has some business units which are not directly assigned to one of the carbon intensive sectors. The amount of produced carbon is insignificantly low in comparison to the carbon intensive sectors. Moreover the effort to monitor these business units

Scope

Uncertainty

range

Main sources of uncertainty

Please expand on the uncertainty in your data

would be disproportionally high.

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

Third party verification or assurance process in place

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verification

or assurance

cycle in place

Status in

the current

reporting year

Type of verification

or assurance

Attach the statement

Page/section

reference

Relevant standard

Proportion of reported

Scope 1 emissions

verified (%)

Annual process

Complete Reasonable assurance

https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC8.6a/TTP PWC Airline Group Certificate EU ETS 2015.pdf

Whole document

European Union Emissions Trading System (EU ETS)

21

Annual process


https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC8.6a/ISO 14064

Whole document

ISO14064-3 100

Verification

or assurance

cycle in place

Status in

the current

reporting year


or assurance


Page/section

reference

Relevant standard

Proportion of reported

Scope 1 emissions

verified (%)

Arqum Audit Report TUI Group FY15.pdf

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based or market-based figure?

Verification

or assurance

cycle in place

Status in

the current

reporting year


or assurance



Relevant standard

Proportion

of reported Scope 2

emissions verified

(%)

Location-based

Annual process


https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC8.7a/ISO 14064 Arqum Audit Report TUI Group FY15.pdf

Whole document

ISO14064-3

100

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points

verified

Comment

Progress against emission reduction target

TUI engaged PwC to verify the gCO2/Revenue Passenger Km and gCO2e/Revenue Passenger Km for each of its 6 airlines (as per TUI's intensity target). These verified emissions are published in TUI Group's 2015 Annual Report & Accounts.

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Oct 2014 - 30 Sep 2015)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

Austria 803

Belgium 132

Bulgaria 89

Cape Verde 4145

Caribbean 1999

Costa Rica 1648

Croatia 194

Cyprus 1872

Dominican Republic 2353

Country/Region

Scope 1 metric tonnes CO2e

Egypt 23952

France 32

Germany 5791

Greece 3899

Italy 640

Jamaica 2670

Mauritius 254

Mexico 17060

Morocco 4938

Netherlands 821

Panama 2782

Portugal 1287

Rest of world 1809

Spain 29474

Switzerland 79

Thailand 593

Tunisia 8265

Turkey 8892

United Kingdom 1660

United States of America 167

International Air Space 5671586

International Waters 644010

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

Airlines & Aviation 5671586

Cruise Operations 644010

Hotels & Resorts 106366

Major Premises 3548

Retail Estate 482

Ground Transport 17904

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Oct 2014 - 30 Sep 2015)

CC10.1

Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed

electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (MWh)

Austria 1567 5039 13862 5833

Belgium 790 1245 3726 0

Bulgaria 397 376 746 37

Cape Verde 10878 10878 23200 0

Caribbean 11288 11288 29529 0

China 440 440 599 0

Costa Rica 858 858 15792 0

Croatia 1020 993 3279 0

Cyprus 15905 16906 21959 17

Denmark 44 96 306 68

Dominican Republic 21428 21428 38592 0

Egypt 83875 83875 189009 0

Finland 19 43 146 113

France 335 195 4839 0

Germany 16864 27016 43460 20635

Greece 38075 41885 61148 5392

Italy 2092 2318 5770 0

Jamaica 17612 17612 27400 0

Mauritius 1344 1344 2867 0

Mexico 66395 66395 146426 1

Morocco 17513 17513 25633 493

Netherlands 2537 3330 5756 5847

Norway 8 469 499 0

Panama 5762 5762 17697 0

Poland 612 718 932 0

Portugal 3672 4140 10477 388

Rest of world 105 105 179 0

Russia 450 450 1049 0

Singapore 142 142 300 0

Spain 50118 63494 168377 2691

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed

electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (MWh)

Sweden 7 20 573 500

Switzerland 16 24 564 149

Thailand 992 992 1982 0

Tunisia 17900 17900 38995 1

Turkey 34108 34108 77146 2625

United Kingdom 12422 14569 26876 0

United States of America

1265 1265 2632 0

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2 emissions, location based (metric tonnes CO2e)

Scope 2 emissions, market-based

(metric tonnes CO2e)

Hotels & Resorts 404593 429931

Major Premises 22026 29344

Business division




Retail Estate 12236 15956

CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility




CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity




Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?

More than 5% but less than or equal to 10%

CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

Energy purchased and consumed (MWh)

Heat 15198

Steam 0

Cooling 0

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

25891687

CC11.3a

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Jet kerosene 22900693

Other: Marine Fuel Oil 1812952

Other: Marine Gas Oil 604111

Kerosene 178055

Liquefied petroleum gas (LPG) 157006

Natural gas 117126

Diesel/Gas oil 111323

Other: Biomass 5835

Motor gasoline 4515

Other: Geothermal 71

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with low

carbon electricity, heat, steam or cooling

Comment

Contract with suppliers or utilities, with a supplier-specific emission rate, not backed by electricity attribute certificates

16158 Green electricity purchased by TUI’s Hotels & Resorts


7041 Green electricity (100% hydro-power) purchased for all shops in Germany


6833 Block heat and power plant operations at Hanover Airport, Germany (TUIfly)


6755 100 % Green Energy at the head office of TUI Deutschland

Contract with suppliers or utilities, supported by energy attribute certificates

5847 Green electricity purchased for major premises and shops in the Netherlands

Grid-connected electricity generation owned, operated or hosted by the company, where electricity attribute certificates do not exist or are not

791 Electricity generated & consumed by TUI hotels on-site through the installation of photovoltaic panels and wind

Basis for applying a low carbon emission factor

MWh consumed associated with low

carbon electricity, heat, steam or cooling

Comment

required for a usage claim power plants


681 Green electricity generated by hydro power supplies TUI Nordic’s head offices


535 100 % Green Energy at the head office of TUI Austria


149 100 % Green Energy at the head office of TUI Suisse (95 % Hydro Power and least 5 % EcoPower)

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total

electricity consumed

(MWh)

Consumed

electricity that is purchased (MWh)

Total

electricity produced

(MWh)

Total renewable

electricity produced (MWh)

Consumed renewable electricity

that is produced by

company (MWh)

Comment

997123 996332 791 791 791 791 MWh of electricity was generated & consumed by TUI hotels on-site through the installation of photovoltaic panels and wind power plants

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value

(percentage)

Direction of

change

Please explain and include calculation

Emissions reduction activities

0.7 Decrease

In the reporting year, 50,313 tonnes of CO2e were reduced by our emissions reduction projects. Our total Scope 1 and 2 emissions in the previous year were 6,881,438 tonnes of CO2e. Therefore, we arrived at a 0.7% decrease (50,313 / 6,881,438 * 100 = 0.73). This is attributable to a number of on-going emissions reductions activities associated with TUI’s sustainability strategy: TUI’s airline’s fuel reduction programme, fleet replacement & fitting of fuel-saving blended & split scimitar winglets on the existing aircraft. Fuel reduction programme and route optimization for cruise operations. Fleet replacement and satellite navigation & monitoring technology installation in ground transport fleet.

Divestment 0 No change

Acquisitions 0.9 Increase

In June 2015, TUI Cruises 4th ship Mein Schiff 4 entered the fleet and operated for 4 months of the reporting period. Also, the Mein Schiff 3 operated for a full year in FY15 compared to 4 months in the previous FY when it entered the fleet in June 2014. In the reporting year, 62,378 additional tonnes of CO2e were reported due to these acquisitions. Our total Scope 1 and 2 emissions in the previous year were 6,881,438 tonnes of CO2e. Therefore, we arrived at a 0.9% increase (62,378 / 6,881,438 * 100 = 0.91).

Mergers 0.6 Increase

In the reporting year, 42,121 additional tonnes of CO2e were reported due to increased data collection following TUI Group's Dec 2014 merger. For example, additional owned data centres or major premises. Our total Scope 1 and 2 emissions in the previous year were 6,881,438 tonnes of CO2e. Therefore, we arrived at a 0.6% increase (42,121 / 6,881,438 * 100 = 0.61).

Change in output 1.4 Increase

In the reporting year, 94,690 additional tonnes of CO2e were reported due to increased capacity in our airlines and aviation sector (primarily through a joint-venture airline). Our total Scope 1 and 2 emissions in the previous year were 6,881,438 tonnes of CO2e. Therefore, we arrived at a 1.4% increase (94,690 / 6,881,438 * 100 = 1.4).

Reason

Emissions value

(percentage)

Direction of

change

Please explain and include calculation

Change in methodology

0 No change

Change in boundary

2.1 Decrease

Change in boundary of hotels that TUI now reports emissions data for to reflect the new structure of the business. There are circa 150 fewer in scope compared to 2014 (properties that TUI did not own or control). This resulted in 147,609 fewer tonnes of CO2e. Our total Scope 1 and 2 emissions in the previous year were 6,881,438 tonnes of CO2e. Therefore, we arrived at a 2.1% decrease (147,609 / 6,881,438 * 100 = 2.1).

Change in physical operating conditions

0 No change

Unidentified 0 No change

Other 0 No change

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

0.0003439 metric tonnes CO2e 20011600000 Location-based

7.4 Decrease

TUI Group’s intensity metric (emissions per unit of revenue) decreased from 0.0003712 in FY14 to 0.0003439 in FY15 (7.4%). This decrease has been achieved through a combination of an increase in the Group’s revenue (up to €20,011m in FY15 from €18,536m in FY14) and the Group’s emissions reduction activities to maintain emission levels during a period of growth for the business. Emission reduction activities align with TUI’s sustainability strategy; airline and cruise fuel reduction programmes, fleet replacement within airline, cruise and ground transport operations, absolute reductions made in TUI's retail estate through energy efficiency programme and behavioural change.

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =



Metric denominator

Metric

denominator: Unit total

Scope 2 figure used

% change

from previous

year

Direction of

change from

previous year

Reason for change

96.48 metric tonnes CO2e

full time equivalent (FTE) employee

71342 Location-based

0.9 Decrease

TUI Group’s intensity figure (emissions per FTE employee) decreased from 97.34 in FY14 to 96.48 in FY15 (0.9%). This decrease has been achieved through a combination of a small increase in the

Intensity figure =



Metric denominator

Metric

denominator: Unit total

Scope 2 figure used

% change

from previous

year

Direction of

change from

previous year

Reason for change

Group’s number of FTE’s (up to 71,342 in FY15 from 70,695 in and the Group’s emissions reduction activities to maintain emission levels during a period of growth for the business. Emission reduction activities align with TUI’s sustainability strategy; airline and cruise fuel reduction programmes, fleet replacement within airline, cruise and ground transport operations, absolute reductions made in TUI's retail estate through energy efficiency programme and behavioural change.

Further Information

CC12.1 - TUI's Scope 1 and 2 emissions increased in FY15 from the previous year by only 1268 tonnes CO2e (0.02%).

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

Yes

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes

CO2e

Details of ownership

European Union ETS

Thu 01 Jan 2015 - Thu 31 Dec 2015

1188471 2880 1378616 Facilities we operate but do not own

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

The strategy is to ensure the cost of ETS to TUI Group is kept as low as possible by buying as few extra emission permits as possible (over and above those given for free as part of the free allocation). The ETS exposure has been fully hedged, in line with good practice and TUI’s hedging policy, using Over The Counter (OTC) derivatives as well as making use of the permitted amount of Certified Emissions Reduction (CERs) products. TUI will continue to challenge itself to reduce its carbon emissions from the airlines with on-going fuel efficient flying techniques, challenging the airspace management bodies to improve air transport movements to reduce on-route delays and where feasible, continue to invest in more fuel-efficient aircraft. In the Calendar Year 2015 of the EU ETS Aviation scheme, the cost spent on permits was minimal and therefore had no material impact on the financial results of TUI Group.

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

Yes

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which

standard

Number of

credits (metric tonnes

of CO2e)

Number of credits (metric tonnes CO2e):

Risk adjusted volume

Credits cancelled

Purpose, e.g.

compliance

Credit purchase

Wind

Generating 129 GWh of renewable electricity each year, the Mare Mantasir project is one of the largest onshore wind farms in Turkey. Approximately 50 wind turbines have been installed at the project site, 70km from the centre of Izmir - Turkey’s third largest city - on the Aegean coast. The project delivers clean energy to the regional grid, displacing the use of fossil fuels and reducing the production of pollutants such as sulphur dioxide, nitrogen oxides and particulates.

Gold Standard

11572 11572 Not relevant

Voluntary Offsetting

Credit purchase

Biomass energy

This project replaces coal consumption from traditional coal burning stoves with improved clean biomass burning semi-gasifier stoves in rural households within Shanxi Province in China. The cleaner stoves improve indoor air quality which benefits the health of the women and children.

Gold Standard



Credit purchase

Energy efficiency: households

This project has introduced “rocket”-style wood-burning stoves to families in Siaya County, Kenya. They are twice as efficient as the traditional hearth. The cleaner and more efficient combustion has made for healthier and safer kitchens. The project also established a self-funding mechanism of community savings and loan groups. Individual members are able to take out small loans to purchase a fuel-efficient cook stove, making the technology accessible and affordable.

Gold Standard



Credit purchase

Wind

The project is located in West Anatolia in Turkey. The wind farm consists of 23 modern wind turbines with a total capacity of 57.5 MW, which means that less fossil fuel is needed. The wind farm supplies approximately 20,000 households with power, using clean energy. The project causes less greenhouse gas to be emitted because fossil fuels are replaced with wind energy. It contributes to mitigating climate change and provides other social, economic and environmental benefits.

VCS (Verified Carbon Standard)



Credit origination

or credit purchase

Project type

Project identification

Verified to which

standard

Number of

credits (metric tonnes

of CO2e)

Number of credits (metric tonnes CO2e):

Risk adjusted volume

Credits cancelled

Purpose, e.g.

compliance

Credit purchase

Solar

The installation of a 30 Megawatt photovoltaic Solar Energy Farm in Monte Plata, Dominican Republic. Up to 45 Giga Watt hours (equals the consumption of 9,000 households) electricity will be produced per year thanks to ideal solar radiation conditions.

Gold Standard



Credit purchase

Other: Mixed Projects

Mixed project portfolio including wind, forestry, geothermal and household energy efficiency projects.

VCS (Verified Carbon Standard)



Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of

emissions calculated using data obtained

from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, calculated

445

Office Copier Paper data is provided by the 'Sustainable Development Champion' in each applicable business. For each different size of paper, the SD Champion reports the number of reams and environmental features. To calculate emissions, the number of reams are aggregated to A4 size and converted in weight (kg). Emissions factor: DEFRA 2015 - CO2 kg 939 per tonne of paper (primary production).

0.50%

Emissions associated with the manufacture and distribution of copier paper used in TUI's offices. TUI Group acknowledges that this is not an exhaustive list of all purchased goods and services, but currently includes all available data. TUI is planning to undertake work to expand the collection of purchased goods & services data.

Capital goods Not relevant, explanation provided

0 N/A 0.00%

For the purposes of this submission, TUI Group has selected 'operational control' as the most appropriate data collection methodology. Therefore, as we lease aircraft and effectively lease hotel beds we only account for emissions from the use of capital goods which are reported as Scope 1 & Scope 2. Emissions from capital goods would be negligible in comparison to our Scope 1 & 2 emissions. Therefore this category is not relevant.

Fuel-and-energy-related activities (not included in Scope 1 or 2)


26400

Scope 3 Electricity Total electricity kWh from all relevant sources for the reporting period is provided by colleagues from around the Group. To calculate emissions, the 2015 UK and overseas DEFRA emissions factors were applied. Emissions factors: DEFRA CO2e UK Scope 3 Electricity T&D per kWh - 0.03816 / DEFRA CO2e EU Average Scope 3 Electricity T&D per kWh - 0.02647.

27.00%

As per DEFRA reporting guidelines, emissions associated with the transmission and distribution of electricity use is now considered Scope 3. TUI is working to increase data coverage of this category.

Upstream transportation and


29240 Financial data associated with food and beverage spend/logistics is applied to the latest

29.80% Emissions associated with transportation and distribution of food and beverage products.

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

distribution publically available DEFRA emissions factor for supply chain spend 'food and beverage' category - 0.97kgCO2e per GBP of spend.

Waste generated in operations


25680

Water data is gathered from TUI's Hotels & Resorts via the web-based data collection tool. This data is provided by the hotel general manager or facilities manager. Emissions factor: DEFRA 2015 CO2e Water Supply: 0.344kg per m3 & Water Treatment: 0.708kg per m3 [Total = 1.052kg CO2e per m3].

26.30%

The energy and subsequent emissions associated with the supply and treatment [e.g. sewage treatment works] for water used by TUI's Hotels & Resorts.

Business travel Relevant, calculated

8799

Business Travel By Air data is provided by the 'Sustainable Development Champion' in each applicable business. For each sector (flight) that is taken the SD Champion reports the number of colleagues on board the flight, departure airport, destination airport and airline. To calculate emissions, the following factors are applied, according to the total distance of the sector. Emissions factors: DEFRA 2015 - CO2e kg per Km: Domestic: 0.15757 / Short Haul: 0.08974 / Long Haul: 0.10477.

9.00% TUI Group's business travel by air on 3rd party airlines.

Employee commuting


158

Colleague commuting data is collected from locations in the UK and Spain. The data is provided by the 3rd party coach companies contracted to supply these services. Data is supplied in litres of diesel for the reporting period. Emissions factor: DEFRA 2015 - CO2e kg per litre 2.67614.

0.20% Colleague commuting - shuttle buses operating to major premises in the UK & Spain.

Upstream leased assets

Not relevant, explanation

0 N/A 0.00% For the purposes of this submission, TUI Group has selected 'operational control' as the most

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

provided appropriate data collection methodology. Therefore, whilst we lease aircraft and effectively lease hotel beds we then account for these as Scope 1 & Scope 2. Therefore this category is not relevant.

Downstream transportation and distribution


7075

Brochure data is provided by the 'Sustainable Development Champion' in each applicable business. For each print run the SD Champion reports; the total number of brochures, number of pages per brochure, weight of 1 brochure (in grams), paper brand and paper environmental features. To calculate emissions, TUI applies a factor of 448 CO2kg per tonne of paper. This figure was provided by the Environmental Manager of TUI paper supplier (based in the UK), and reflects the average emissions associated with the manufacture of 15 different 'grades' or quality of paper.

7.20% Emissions associated with the manufacture of TUI Group's brochures, via external print companies.

Processing of sold products

Not relevant, explanation provided

0 N/A 0.00% TUI Group's primary business is selling travel experiences rather than physical products. Therefore this category is not relevant.

Use of sold products



End of life treatment of sold products



Downstream leased assets


0 N/A 0.00% TUI Group's primary business is selling travel experiences rather than physical products, and does not lease/sublet assets. Therefore this

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

category is not relevant.

Franchises Not relevant, explanation provided

0 N/A 0.00%

TUI Group has a small number of franchised retail shops which are not currently included in our Scope 3 data collection, however the emissions from these sites are not material in comparison to the size of our business. Emissions from owned retail stores are accounted for in Scope 1 and Scope 2. Therefore this category is not relevant.

Investments Not relevant, explanation provided

0 N/A 0.00%

TUI Group's primary business is selling travel experiences. Rather than investments, TUI makes regular acquisitions of business and brands that it wishes to bring under the TUI banner. Emissions from these businesses would therefore be considered Scope 1 and Scope 2. Therefore this category is not relevant.

Other (upstream)

Other (downstream)

CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Verification

or assurance cycle in place

Status in

the current reporting

year

Type of

verification or

assurance


Page/Section

reference

Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

Annual process


https://www.cdp.net/sites/2016/72/56372/Climate Change 2016/Shared Documents/Attachments/CC14.2a/ISO 14064 Arqum Audit Report TUI Group FY15.pdf

Whole document

ISO14064-3

100

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3

emissions

Reason for

change

Emissions

value (percentage)

Direction of change

Comment

Downstream transportation and distribution


7 Decrease

TUI Group achieved a 7% reduction for emissions associated with its brochure manufacturing in FY15 compared to FY14. As part of an on-going target, TUI has reduced its brochure production (and associated emissions) by over 50% in the past 4 years, as a result of moving content from printed brochures to online, in line with the Group strategy.

Purchased goods & services


16 Decrease TUI Group achieved a 16% reduction for emissions associated with purchased office paper in FY15 compared to FY14. Papers saving initiatives exist locally throughout the business, with staff regularly reminded about paper use.

Waste generated in operations

Change in boundary

25 Increase Following the Group merger, TUI’s hotel portfolio changed significantly from FY14 to FY15. The 25% increase was due to this change in scope and improved reporting processes rather than actual water/waste performance by TUI’s hotels.

Fuel- and energy-related activities (not included in Scopes 1 or 2)

Change in boundary

47 Increase Following the Group merger, TUI’s operation and structure changed significantly from FY14 to FY15. The 47% increase was due to this change in scope and improved reporting processes.

Business travel Change in boundary

4 Increase The integration of TUI Travel PLC and TUI AG to form TUI Group resulted in an increase of employees. Also, additional business travel was required during the complex merger process.

Employee commuting Other: No change

0 No change

No change to emissions associated with colleague commuting.

Upstream transportation & distribution

Other: First year figure reported

0 No change

This is the first year TUI has reported a figure for emissions associated with transportation and distribution of food and beverage products.

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers Yes, our customers

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagement and measures of success

i) Methods of engagement Suppliers The TUI product and purchasing department have targets, dedicated training sessions and resources to encourage our suppliers (hotels) to work towards sustainability certifications. TUI has incorporated environmental & social minimum standards into contracts with accommodation and excursion suppliers. TUI has launched a Supplier Code of Conduct which contains an environment section, communicated via hard copy & online. In FY15, a sustainability supplier workshop was organised in Germany with the top performing hotels for sustainability to discuss best practice and learn about new innovations. Hotels are provided with annual reports, prepared by TUI Group’s sustainability team, highlighting their energy, emissions, water and waste performance. Customers TUI engages with customers on sustainability through their holiday journey: Research – e.g. promote ‘greener and fairer’ hotels Booking stage – e.g. face to face in store Pre-holiday – e.g. pre-holiday literature Journey stage – e.g. in-slight magazines On holiday – e.g. welcome meetings After the holiday – e.g. customer feedback forms TUI partnered with the Federal Agency for Nature Conservation (BfN) in Germany to publish the ‘Kinatschu’ children’s magazine to teach youth about nature conservation while on holiday, including species protection and sustainable souvenirs. The magazine is distributed in many of our TUI hotels such as TUI Magic Life, Robinson Club and Family Life as well as onboard TUI Cruises. The magazine is also available for schools and interested groups from the BfN, with more than 15,000 students receiving it. ii) Strategy for prioritising engagements Suppliers Improving energy management & achieving sustainability certifications benefits our suppliers and TUI’s own sustainability goals. Supplier engagement falls in line with TUI’s sustainability strategy via the following commitments:

-We will work with hotel suppliers to increase their positive impact on the local community and to protect the environment - All hotels in our tourism business portfolio will subscribe to credible sustainability certifications - We will develop and roll out the TUI EcoResort standard to drive exemplary sustainability performance - We will showcase world-class sustainability standards across our TUI hotels and concept partner hotels Customers Customer engagement falls in line with TUI’s sustainability strategy. A central aim at TUI is to stimulate demand for more sustainable holidays by showing customers how it contributes to a better holiday experience. TUI has also set the following commitments: - We will deliver 10 million ‘greener and fairer’ holidays a year by 2020 - We will help customers to create positive change - We will communicate about sustainability throughout the customer journey iii) Measures of success Suppliers 950 of our hotels (representing nearly 6 million customers) were subscribed or certified to Travelife or awarded a GSTC certification in 2015. An EcoResort project team was established to review the current label and make recommendations. We worked with consultants to develop an online tool to support hotels through the Travelife certification process. The tool is being piloted in 2016. We also collaborated on a sustainable foods project and shared the resulting manual with our hotels. 68% of our TUI Hotels & Resorts and International concept hotels had a GSTC recognised sustainability certification in 2015. Average carbon emissions per guest night at TUI Hotels & Resorts and International Concepts was 10.1kg of CO2, energy consumption per guest night was 27.8kWh and fresh water use 468 litres per guest night. Customers We took over 5.6 million customers to hotels with credible sustainability certifications in 2015. Customers in our six key source markets rank us as either the #1 (4 markets) or #2 (2 markets) leading holiday company for sustainability. Our brands in Sweden (Fritidsresor), Denmark and Norway (Star Tours) were ranked most sustainable travel company in the 2015 Sustainable Brand Index. TUI Germany were also named as one of the most sustainable travel brands by the German FOCUS magazine in 2015. TUI UK launched the Better World Detectives schools sustainability programme in 2016.The new programme brings the excitement of one of the world’s most exotic destinations to the classroom to teach UK primary school children about living and travelling in a sustainable way. The number of customers enjoying TUI Collection excursions grew from 84,000 in 2014 to more than 500,000 in 2015, with more than 170 excursions in 41

destinations (12 countries). TUI Collection excursions all meet specific sustainability criteria. A TUI app has been rolled out across eight source markets. It helps customers prepare for their holiday and has been downloaded over 1.4 million times.

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Number of suppliers

% of total spend (direct and indirect)

Comment

23 5% TUI regularly engages with all of its hotel suppliers. These properties are located mainly in Europe, but TUI engages with hotels all around the world.

CC14.4c

If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How you make use of the data

Please give details

Identifying GHG sources to prioritize for reduction actions

TUI regularly engages with all of its key suppliers (hotels). Each hotel is required to supply as a minimum, energy, water and waste data via a bespoke online data collection tool. This data allows TUI to not only track total emissions, but calculate performance KPIs based on the number of guests that stay at the hotels, i.e. kWh per guest per night, litres of water per guest/night and kg of waste per guest/night. Sustainability performance reports are then generated and sent to key contacts within each of the suppliers. These reports highlight current energy, water and waste performance as well as year on year trends. This information is used by TUI for strategic purposes; helping to set long term reduction targets for its suppliers.

CC14.4d

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

Thomas Ellerbeck Group Director Corporate & External Affairs Board/Executive board

Further Information

CDP 2016 Climate Change 2016 Information Request