HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
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MAKING A DIFFERENCE WITH EVERY HOLIDAY SUSTAINABILITY REPORT 2017
OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
1
ABOUT THIS
REPORT
CONTENTS SCOPE BOUNDARIES
Overview
About Thomas Cook
2
2
Overview of Scope Overview of Boundaries Where else can
Our operations 3
This is Thomas Cook’s 11th annual Sustainability
Report. The report gives a comprehensive
When setting our reporting boundary we
have considered impacts which result from you find corporate
Chief Executive’s statement
Key external trends
4
5
assessment of our new sustainability strategy
and approach, as well as an overview of our
our own operations and those of our hotel
supply chain. There have been no significant responsibility
Our vision for sustainable tourism 7
performance over the first twelve months of
implementation. The report covers Thomas Cook
changes from previous reporting periods.
information?
Our new strategy 8 Group operations in full, though there is a clear
Material issues 9 Sustainability information is embedded
focus on our most material issues. in our Annual Report and Accounts 2017
At Home 10
The data in this report covers the period and on our corporate website.
Business ethics 11
1 October 2016 to 30 September 2017, unless www.thomascookgroup.com
Our colleagues 12 otherwise stated and is referred to throughout
Customer welfare 14 the report as 2017.
Charity 15
We publish our sustainability report annually.
The Journey 17 Our last report was published in January 2016.
Emissions 18
Operational efficiency 20
On Holiday 22
Sustainable hotels 23 ANNUAL REPORT & ACCOUNTS 2017
Animal welfare 25
Sustainable destinations 26
Performance 27
Other information 28
Management of sustainability 28
Stakeholders and partnerships 29
Further information/get in touch 30
THOMAS COOK GROUP PLC Sustainability Repor t 2017
OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
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ABOUT
THOMAS COOK
Thomas Cook is one of the
world’s leading holiday companies
with sales of £9 billion. We are QUALITY SERVICE RELIABILITY
a team of 22,000 colleagues, with
operations in 17 source markets and We are passionate travel We’ll be there whenever you We care. You can trust us
experts & have been need us. Our teams are available to always be open and
in destinations around the world. creating great holiday around the world, 24/7. honest with you.
memories since 1841.
Our aim is to become the most loved travel
company, which we will deliver through living our We are happy to make We always give you
We share customer you happy & we promise all the information
values and delivering on our customer promises. reviews before you book you need to make your
to put you at the heart
to help you choose of everything we do. time away stress-free.
In 2016, we launched our three Customer Promises: the perfect trip for you.
Quality, Service, Reliability. These promises shape
everything we do as a business and determine Your holiday means
Your money’s safe
the values against which the performance of We listen & act on your feedback. when booking with us.
the world to us.
all employees is measured and are what set us
apart from the competition. Our teams & the partners we We’re ATOL protected
work with are always looking We’d love to welcome you again & are for peace of mind.
to improve to make your committed to sending you home with
next holiday even better. great memories of your holiday.
20m 190
CUSTOMERS OWN BRAND HOTELS
AND RESORTS
93
AIRCRAFT
22,000
EMPLOYEES
THOMAS COOK GROUP PLC Sustainability Repor t 2017
OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
3
OUR
OPERATIONS N O RTH
SEA
KEY:
4
Airports 5
4 Own-brand
hotels 2 5
26
2
N O RTH
47 32
SEA
Source markets 11
9
M ED ITER R A N E A N S E A
CHINA
19 8 N O RTH
SEA
4
5
4
26 5
EAN SEA 2 47
2 32
5
THAILAND
11
26 4
92 2 47 32
5
M ED ITER R A N E A N S E A
11
9
M ED ITER R A N E A N S E A
19 8
19 8
C A R IBBE A N S E A
THOMAS COOK GROUP PLC Sustainability Repor t 2017
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4
CHIEF EXECUTIVE’S
STATEMENT
It is my pleasure to introduce this ‘At Home’ seeks to make a positive
document, which sets out in detail our The last 18 months have seen the
contribution to the communities in which
renewed and refocused strategy, designed Board engage meaningfully in the
we live and work through our charitable and
to ‘make a difference with every holiday’. business’s sustainability agenda.
community programmes; ‘The Journey’ strives
The improving sustainability
2017 was a milestone year in the strategic to reduce our impact on the environment,
performance of Thomas Cook –
development of Thomas Cook. We inspired with a particular focus on the fuel efficiency
coming at a time when the business
more customers to choose our holidays for of our Group Airline; and ‘On Holiday’ seeks
is determinedly focused on improving
their hard-earned weeks in the sun, while to embed a more sustainable way of
the customer experience – is
at the same time transforming the scale working in our operations abroad to deliver
no coincidence.
of the opportunity ahead for the Group world-class quality products and services.
with a series of big strategic moves. I am proud of the way that we have As a Board, we know that the
started to bring this strategy to life. A great business has the power, and the
It was also a milestone year in the way we appetite to affect positive change
approached sustainability. We recognised example of the progress we’ve made is our
animal welfare policy. By taking a clear and in the communities in which it lives
that to be truly successful, we needed to and works.
align our sustainability objectives more leading position in the industry and acting
closely to our strategy, and the decision I decisively to implement it, we have already We therefore strongly endorse the
made two years ago to put customers back seen big improvements in the way animals stronger stance on these issues as
at the heart of the business. By reviewing are treated at animal excursions we sell. outlined in the “Making a Difference
all our activities across the group, and It is an encouraging start. with Every Holiday“ plan, and we
more explicitly aligning them to our key I believe that travel and tourism are will closely monitor the strategy’s
business objectives, we believe we will be essential in the 21st Century, not just for the implementation and progress to 2020.
better placed to engage our people, and our positive contribution that it makes to the
customers, to help build a stronger, more lives of travellers, but also for what it brings EMRE BERKIN
“2017 was a milestone year in the way resilient business and to achieve our vision
to be the most loved holiday company.
to communities in destinations worldwide.
The cultural and economic exchanges
CHAIR OF GROUP HE ALTH,
SAFET Y, AND ENVIRONMENT
we approach sustainability. We recognised The result is a new three year fostered through tourism contribute to
COMMITTEE OF THE BOARD
global development, helping to create vibrant
that to be truly successful, we needed sustainability strategy. Entitled ‘making a
difference with every holiday’, the strategy economies and good jobs around the world.
to align our sustainability objectives more links all of our sustainability activities However, I also recognise the impact that
holidays can have on those communities
to the three stages of a customer’s
closely to our strategy and the decision engagement with Thomas Cook: At Home, and the environment. I am determined that
Thomas Cook be a positive force to help
I made two years ago to put customer The Journey, and On Holiday. Our aim is to
ensure we are working at every step to build a more sustainable tourism, working in
back at the heart of the business.” limit the impact our business has on the partnership with our destinations, our suppliers,
our customers, and the wider industry.
environment while maximising the social
and economic benefits travel can bring. I believe our bold action on this agenda
will deliver a more profitable and
sustainable business over the longer
term that we can all be proud of.
PETER FANKHAUSER
CHIEF E XECUTIVE OFFICER
THOMAS COOK GROUP PLC Sustainability Repor t 2017
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KEY EXTERNAL TRENDS
In order to understand our approach to tackling sustainability issues it is helpful to understand
the wider concerns and challenges facing our world, and the environment in which we operate.
CLIMATE CHANGING GEOPOLITICAL
CHANGE CUSTOMER DEMANDS CHALLENGES
OVERVIEW: OVERVIEW: OVERVIEW:
In each of our destinations, the changing climate is having Public trust in businesses and institutions remains low, Across our source markets and destinations there have
a real impact on operations, from extreme weather events while customers are demanding greater transparency been huge social and political changes. These range
to droughts and rising sea levels. Changes to our climate from their holiday company than ever before. from ongoing security issues in destinations such as
are accelerating and will have greater influence on tourism Sharm El-Sheik, to the challenge of over-tourism, as is
destinations in the future. IMPACT: currently experienced in major European cities.
With many businesses failing to report consistently,
IMPACT: particularly with respect to their environmental and ethical IMPACT:
Increases in extreme weather events have an impact on our performance, customers are finding it difficult to understand Tourism is both a driver of stability in popular destinations
business. Hurricane Irma in October 2017 in the Caribbean the impact of the choices they make. With over two-thirds and one of the industries most affected when things go
was unprecedented in its strength. The impact on customers of our customers telling us it was important or very wrong. We have seen a change in where customers are
was significant, with flight delays, and significant disruption important that sustainability is a feature of their holiday, choosing to travel with us in recent years: for example,
to holidays. it is increasingly important to deliver in line with customers’ the UK's increased demand for Turkish holidays.
expectations of sustainability performance.
OUR RESPONSE: OUR RESPONSE:
As it is predicted that the frequency and extremity of these OUR RESPONSE: We understand the positive role that tourism can play
events will increase, we must continue to ensure we have a We know our customers are interested in sustainability in providing opportunities and wealth for populations
quick and appropriate response. By operating more efficiently, issues and, through our sustainability programme, we are in destination, creating an environment for stability and
and reducing our impact on the environment and our demand having a positive impact, from improving animal welfare prosperity. We will continue to invest in destinations
for natural resources, we can enhance our resilience through standards to creating and offering more sustainable where we may see a short-term decrease in customer
understanding our exposure to and impact on climate change. products, including certified hotels and sustainable demand, in order to support communities and to preserve
excursions. We are determined to share our progress a high quality product for customers in the future.
honestly and transparently, to help our customers
make informed choices about the holidays they choose.
THOMAS COOK GROUP PLC Sustainability Repor t 2017
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KEY EXTERNAL TRENDS
(CONTINUED)
TECHNOLOGICAL ETHICAL AND ENVIRONMENTAL DIVERSITY, EQUALITY
CHANGES REGULATIONS AND FAIRNESS
OVERVIEW: OVERVIEW: OVERVIEW:
The rapid pace of change in the availability of technology New regulations continue to be introduced. For example There continues to be inequalities in both gender and race
around the world is helping to develop new opportunities CORSIA, an international aviation agreement to offset growth around the world, leading to prejudice and lack of opportunity
for businesses to operate more efficiently. in emissions post 2020, and the UN's Sustainable Development which stops people from reaching their full potential. As one
Goals will both bring change to the travel sector. of the world’s biggest employers, tourism businesses must
IMPACT: ensure that every individual has the opportunity to grow and
Changing technologies like artificial intelligence, increasing IMPACT: develop within a fair and inclusive industry.
use of internet-enabled services, blockchain technology and There is both an ethical imperative and a growing regulatory
the reducing prices of renewable energy mean we can enhance demand to decarbonise the travel sector. We monitor and IMPACT:
our offering whilst reducing the running cost of our business. plan for new regulations as well as ensure compliance with Inequality impacts on our ability to recruit the best staff
existing requirements. and for us to provide the best experience for our customers.
OUR RESPONSE: We have a diverse customer base and we need to operate
By developing innovative new products and services OUR RESPONSE: a business which is as diverse as our customer base.
we can continue to offer customers greater personalisation We operate certified environmental management systems in
and flexibility. Examples include Choose Your Room where some business units which enable us to monitor compliance. OUR RESPONSE:
customers can select the best room for them and their We work with a number of partners to assist us with We invest in our people, for example, through apprenticeship
needs, and Choose Your Sunbed which will roll out in at compliance plans for current and future regulations and we programmes and our Women’s Sponsorship scheme enabling
least 30 own brand hotels during 2018. are members of trade bodies to discuss how we approach participants to take action after guidance and support given
regulations from an industry perspective. by a senior sponsor within the business.
THOMAS COOK GROUP PLC Sustainability Repor t 2017
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OUR VISION FOR
SUSTAINABLE TOURISM
With 177 years’ experience Holidays that provide a real link with the Decarbonisation of travel is significantly
as one of the world’s leading regions and communities visited improve more challenging for air-based travel
the experience for the holidaymaker, than for other forms of transportation.
holiday companies, we have while providing greater economic benefit Aircraft are in service for over 30 years,
a unique insight into how and locally. A sustainably-managed destination meaning technological innovation
where our 20 million customers filled with the smells of local food and is slower to come to market. This is
like to holiday. the sounds of local voices delivers more compounded by a lack of alternatives
benefit for local people, and creates to jet fuel at the scale needed to meet
As the world around us changes, so vibrant local supply chains. global consumption levels.
too has the world of travel, which has
remained on the forefront of technical By making use of technological It is difficult to balance the benefits
innovation. Technology has offered developments, and offering better training tourism can bring with its associated
customers more choice and flexibility for tourism staff, we can significantly negative impacts and we don’t have all
than ever before. The geopolitical and decrease the resources required to deliver the answers, but we have some of them.
economic challenges facing many key holidays. Whether it is Thomas Cook’s We know it will take time to create the
tourism destinations, and the increasing water management project, our policy change needed but through collaboration
frequency of extreme weather and on animal welfare, or our collaborative with the industry, suppliers, employees,
natural disasters makes Thomas Cook’s approach to developing a sustainable customers and other key stakeholders we
customer protection proposition of quality, food programme, we can demonstrate can make a difference. Our new strategy
service and reliability more attractive – that we have some of the best practices is a positive step in this direction.
and necessary – than ever before. within our sector that have the potential
177
to positively transform destinations
At its most effective, tourism delivers around the world.
economic growth, opportunity and
skills development around the world, There are however some real challenges
facing international tourism. As an
making a key contribution to delivering
the UN's Sustainable Development Goals. industry, our impact on climate change YEARS OF HOLIDAY
As one of the world’s biggest employers, is the biggest of those challenges. EXPERIENCE
and one of the global economy’s lead 2017 was one of the three warmest on
20m
growth sectors, tourism is an important record and the hottest ever non-El Niño
tool that can bring investment and year. The Arctic had its lowest ever
economic opportunity to anywhere February sea ice levels and is warming
in the world, and lead us to a more faster than anywhere else on the planet,
sustainable future. potentially disturbing the predictability CUSTOMERS
of the Gulf Stream and jet streams.
THOMAS COOK GROUP PLC Sustainability Repor t 2017
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OUR NEW
STRATEGY
Our vision is to be the most loved
holiday company, delighting our customers, AT HOME THE JOURNEY ON HOLIDAY
employees and shareholders. Therefore
the trust of our stakeholders is key. We will create positive change We will strive to deliver resource We will embed sustainability
within our source markets and efficiencies throughout the into our business to deliver
The millions of customers that The new strategy is simplified and
choose Thomas Cook for their stronger than previous iterations
destination communities for our business to run our operations world class quality products
holiday have high expectations and reflects three key stages of customers, employees and the in the most responsible way and services. We will collaborate
of us and the services we provide. the customer journey – At Home, places where we live and work. possible. and innovate with our customers,
We understand that sustainability The Journey, and On Holiday. partners and suppliers.
is extremely important for our
customers and critical to the The short three year time horizon
long-term success of our business. allows us to set stretching but 2020 TARGET 2020 TARGET 2020 TARGET
In order to build a more sustainable urgent and relevant goals, to focus
100,000 people reached through our social, 12 percent increase in fuel efficiency for 100 percent of our own brand hotels
business we need to have a the attention of our business and
charitable and community programmes. Group Airlines, from a 2008/09 baseline. to obtain a Travelife award.
strategy in place which is closely our supply chain.
aligned with the business model. The United Nations Sustainable
The business has undergone Development Goals (SDGs) have AT HOME is connected to the THE JOURNEY is connected to ON HOLIDAY is connected to
significant change since the helped to frame our strategy. following SDGs the following SDGs the following SDGs
original sustainability strategy We have demonstrated where
was developed in 2011. At the our strategy helps to positively
same time, the context in which influence the SDGs, to play our
we operate and the expectations part in ending poverty, protecting
of stakeholders has evolved. the planet and ensuring prosperity
In setting out our new strategy for all.
we conducted an internal review Previous initiatives delivered
in 2016 to reassess our material significant achievements, however
issues and their impact on the the business was working to deliver
business. We also benchmarked our 17 sustainability goals and therefore
performance in these areas against spreading our activities too broadly.
recognised international standards The new strategy is simplified,
and against our competitors with more focused, and therefore more
the help of external specialists impactful. More information about
who ensured the strategy was as the performance of our previous
stretching as it could be. The results strategy can be found on p.27 of
of the review process helped to this report.
inform our new strategy.
SEE MORE SEE MORE SEE MORE
p.10 p.17 p.22
THOMAS COOK GROUP PLC Sustainability Repor t 2017
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MATERIAL
ISSUES
This graph sets out our most significant sustainability challenges and how they relate to our new strategy pillars of “At Home”,
“The Journey” and “On Holiday”. We recognise that a number of these issues appear at multiple stages of the customer journey,
but we will discuss the issues at the point in the journey where they have the greatest impact, or where we have most influence.
Animal Business Charity Child Customer Diversity Emissions Employees Human Operational Sustainable Sustainable Waste Water
welfare ethics protection welfare and inclusion rights efficiency destinations hotels
High
AT HOME
Medium
Low
None
High
THE JOURNEY
Medium
Low
None
High
ON HOLIDAY
Medium
Low
None
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
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AT HOME
Our aim is to create positive change within our source markets
and our destination communities, for our customers, employees
and the places where we live and work. This section focuses on
how we evolve our policies and procedures in order to continue
to operate as a responsible business, as well as our approach
to our charitable and community initiatives.
We know that employers who treat people fairly, train Our target is to reach over 100,000 people through our
and develop them, and look after their health and well- charity and community activities by 2020. This means
being, enjoy the rewards that engaged employees bring. we want to have a materially positive impact on the lives
By supporting the communities in which we live and work, of the people in the communities in which we live and work.
we can bring additional benefits to our business including In 2017 we reached 17,979 people.
increased employee motivation and an enhanced reputation.
We focus on a variety of issues around customer welfare,
human rights and child protection, animal welfare and the
welfare of our employees, including diversity initiatives
and charitable activities.
100,000
PEOPLE REACHED THROUGH
OUR CHARITY AND COMMUNITY
ACTIVITIES BY 2020
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BUSINESS
ETHICS
We recognise the UN Guiding Principles on Business and Human Rights and support
the UN Convention on Rights of the Child. We are also aligned with the UN Global Compact.
HUMAN RIGHTS CHILD PROTECTION To help raise awareness of the risks to BRIBERY AND
We recognise the UN Guiding Principles on We believe we have a responsibility to children in tourism and how to protect ANTI- CORRUPTION
Business and Human Rights and support promote and safeguard the welfare of them, we provide training to employees,
We have a zero tolerance stance on any
the UN Convention on Rights of the Child. adults and children in our supply chain particularly those in retail and customer-
form of bribery and corruption in our
We are also aligned with the UN Global and Thomas Cook Group has in the last facing roles in our biggest markets.
business. This principle applies not just
Compact. These globally agreed principles year reviewed its approach to child This training includes identifying incidents
to Thomas Cook employees but also
and programmes enable us to design and protection, launching a new reporting of adult and child trafficking. We also
to agents, suppliers, contractors and
operate a structured approach to these process and renewed focus on training provide specific training to staff in
other business partners who act on our
issues across our global business. across our business. We are implementing destinations, for example holding annual
behalf or with whom we do business.
the UN Convention on the Rights of the workshops in association with DRV (The
Any issues or concerns are reported to
Our Modern Slavery and Human Trafficking Child as our Group policy. We continue to German Travel Association), on how to
our Legal team. We have an Anti-Bribery
Statement, published annually, contains raise awareness of the potential issues recognise and report any issues involving
and Corruption Policy in which employees
more information about our progress in with our suppliers, stakeholders and children. We promote the reporting
have been trained.
the last year to eliminate modern slavery employees, ensuring they are suitably platform www.nicht-wegsehen.net and
in our supply chain. This statement is informed and trained to act effectively www.reportchildsextourism.eu on our
available online on our website via the when child safety might be at risk. Condor flights via post-cards and on the
following link; inflight entertainment.
https://www.thomascookgroup.com/
wp-content/uploads/2017/11/Signed-FY17-
Modern-Slavery-Statement.pdf
WHO THIS WHY THIS MATTERS LONG TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
Anyone connected to our business, Fair, safe and ethical employment Working for Thomas Cook or our In the last year, we have trained every In 2018 we are rolling out further
from customers to employees to across our business and supply supply chain delivers rewarding work one of our 22,000 staff on our bribery training on child protection to
suppliers to the local population chain delivers an improved and opportunities for growth and and corruption policy and taken steps our destination and hotel-based
at our destinations. customer experience and reduces development, delivering excellence for to understand and reduce our modern employees and we will conduct a full
business risk. our customers. slavery risks. external review of our approach to
human rights in our supply chain.
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OUR COLLEAGUES
77%
EMPLOYEE ENGAGEMENT In this, the survey’s fifth year, we
Our annual Group-wide employee achieved a response rate of 78%.
engagement survey “Every Voice” We attribute this high response rate
to the tangible actions we take each
provides our people with the opportunity
to provide detailed feedback about how year in response to the feedback from EMPLOYEE
they feel about working at Thomas employees. Each department develops ENGAGEMENT
an action plan to resolve areas of concern
Cook across a number of areas, such as
and works through this plan over the SCORE
clarity on the Company’s direction; their
views on our strategy; their confidence year. Nearly 10,000 open comments were
in their manager and leadership and our received in this year’s survey, which have
culture. Our “Core Index”, the formula for been shared with the relevant leaders
high performing organisations, achieved including any with specific feedback
a 74% favourable rating overall, for the for Peter Fankhauser and the
second year in a row. Within this we are leadership team.
particularly pleased that our employee Results from the survey are shared
engagement score increased by 1 percent with each team, so they can build
to 77%. We believe this reflects the efforts detailed action plans, culminating in one
we have made to bring our strategy to life overall plan for the Group. Action plans
for our people and inspire strong belief are reviewed every year by the Group
in our new organisational values, which Executive Committee (ExCo) to check
form the basis of our drive to put the progress and maintain momentum.
customer at the heart of all that we do.
WHO THIS WHY THIS MATTERS LONG TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
All our employees should be We must be able to attract and Everyone who works in the We have improved the Every Voice In 2018 we are launching The
able to fulfil their potential. Having develop talented individuals, to create Thomas Cook supply chain has the engagement score and introduced Sponsoring Women to Success
a diverse workforce means the an innovative and diverse workforce opportunity to develop their skills a gender balanced shortlist for Programme across the Group.
organisation can offer a wide to drive our business forward. and move forward in meaningful and leadership role.
range of ideas, skills, resources rewarding employment, regardless
and energies to the business to of gender, sexuality or race. We are
give it a competitive edge. passionate about giving employees
the opportunity to progress and
we’re committed to being a fair
and equal employer.
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OUR COLLEAGUES
(CONTINUED)
EMPLOYEE DEVELOPMENT DIVERSIT Y AND INCLUSION We introduced ‘balanced’ gender
Our strategy towards recruiting, training, We will only achieve our vision to shortlists for leadership roles, ensuring
developing, retaining and inspiring our become the most loved travel company a fair and consistent selection of males
workforce is critical to our success. by ensuring we have a truly engaged and females. In the UK, we ran our second
We strengthened our Group-wide talent and diverse workforce, who care about Women’s sponsorship programme for high
management processes this year, our customers and who are led by an potential females and we are expanding
culminating in our annual talent review inspiring, energetic and diverse leadership this across the Group in 2018.
with the PLC Board in July. All leaders’ team. We take great care to make sure The international diversity of our
performance has been reviewed along our recruitment and selection process, Leadership Team is strong, with 18
with the succession for all roles across learning and development activities and nationalities represented. We are working
the Thomas Cook Leadership Council career progression opportunities do not on creating a new international mobility
(TCLC). There were 30 new appointments allow for discrimination. We also work framework, designed to encourage the
to the TCLC, 20 of which were internal to ensure our colleagues can succeed movement of colleagues across different
promotions, demonstrating that the talent in our business, regardless of their countries and markets. Ethnicity is also
processes are working. gender, marital status, race, age, sexual an increasing area of focus. We aim to
preference and orientation, ethnic origin, establish an organisational benchmark in
religion or beliefs, disability (including 2018 and a framework for activity based
colleagues who become disabled during on the results.
service) or trade union affiliations.
Across our business, 68% of our
employees are female and 32% are male.
In leadership roles 73% of our employees
are male. Gender diversity has been a
particular focus area in 2017 and we have
introduced gender diversity targets for
each member of the Executive Committee
and their teams.
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CUSTOMER
WELFARE
“Customer at our heart” is the cornerstone of our strategy for profitable growth.
We know that happy customers are more likely to come back to Thomas Cook
for their next holiday and recommend us to their friends.
Over the last 12 months there To deliver on our “Customer at Our Heart” 3) Reliability – We know
has been a fundamental change commitment we have developed three that in these uncertain times,
customer promises; customers value the security
in our approach to customers. and protection that they get from
To reflect the importance of 1) Quality – We have launched
travelling with the most experienced
customer satisfaction to the the Sunny Heart Academy of
operator in the travel industry. It’s a role
Excellence, which draws on
health of our business, we external experts in areas such as food
we take very seriously.
introduced, for the first time, hygiene, sustainability and housekeeping Over the past number of years we have
the Net Promoter Score (NPS) to create support for hotel partners enhanced our work to ensure the security
as one of the core metrics of delivering impressive results. and safety of our customers in all of
performance across the Group. our destinations. Through a new regime
2) Service – We have rolled of external security audits of our hotels
We made good progress in out the 24-Hour Satisfaction in addition to our extensive programme
2017, moving from 37 points Promise across to more of health and safety checks within hotels,
in 2015 to 45. than 2000 of our most popular hotels, we are more determined than ever to
as well as introducing comprehensive make sure every holiday is a special one.
new training for all customer service
We are proud of the way in which our
and in-resort staff.
people have worked tirelessly to support
our customers in times of crisis over the
past 12 months. That reliability and trust
is a key differentiator for our business.
WHO THIS WHY THIS MATTERS LONG TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
Every one of our 20 million customers, As a tour operator, safety is the Every customer will be safe on In the last year, we have operated In 2018 we are increasing the
employees and other stakeholders. highest priority for us and a key holiday with all risks mitigated, external security audits of our resources available to our hotel
reason to book with us, your from accidents avoided to increased highest risk properties, in addition to quality managers in order to
trusted partner. security to protect customers. We annual Health and Safety checks by drive further quality and safety
will achieve this though the care and independent experts of every one of improvements for all customers
attention of Thomas Cook staff and our own brand product. across all source markets.
external bodies.
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CHARITY
Across Thomas Cook, we contribute to charity in a number of different ways. From the large grant-making
children’s charity we operate in the UK, to charity programmes run across our Airlines division and Continental
European business, we are helping people in the communities where we live and operate.
This year has been a ground-breaking In the UK, The Thomas Cook Children’s In Manchester, the home of our UK Airline,
year for charity at Thomas Cook, with Charity aims to improve children’s lives, following the Manchester Arena Attack in
the adoption of our new group-wide by helping to improve education, well- May 2017, Thomas Cook Children’s Charity
charitable giving strategy. This strategy, being and healthcare facilities for children raised £280,000 and committed to support
designed to create lasting impact in and young people. As a grant-making those affected by the tragedy. We are
our communities at home and at our charity, it provides funding to charities working with the Manchester Resilience
destinations, provides greater structure and individuals to benefit the lives of Hub to provide funding which will focus
and alignment across our group. children and young people in the UK on supporting children, young people and
and overseas. their families affected by this tragic event.
Through 2018, we plan to implement our
new giving strategy. We will particularly We have supported the following charities, The charity also supported Save the
focus on devoting more of our giving to all thanks to the support of Thomas Cook Children East Africa Famine Appeal
our destinations and moving towards UK customers and colleagues: Carers Trust, with a donation of £100,000.
more impactful interventions, changing NSPCC, CPotential Trust, Teenage Cancer
the lives of individuals and communities. Trust, SOS Children’s Villages, Great
Ormond Street Hospital and Reuben’s
Retreat, as well as many local community
projects in the UK and overseas.
WHO THIS WHY THIS MATTERS LONG TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
Many people in our communities, As a company committed to Thomas Cook has an organised, group- Our Thomas Cook Children’s Charity, In 2018 we will further align each of
both at home and at destinations, making a difference at home and wide structure for charitable causes, alongside the business, has made a huge our business units to our groupwide
are in need of care, support at our destinations, we consider it which focuses on issues where we commitment to help support those vision for charitable impact.
and development. an obligation to use our size, scale can make the most impact. Through affected by the Manchester terrorist
and influence for the development this structure, we will support the attack. Our airlines teams continued
of vibrant communities. development of vibrant communities their longstanding partnership with
at home and at our destinations. Khao Sok school in Thailand.
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
16
CHARITY
(CONTINUED)
We have set out the key issues we
seek to address through all charitable
activity. These are set out below:
SCHOOLS IN
>> Supporting vulnerable children KHAO SOK
and their families
This year a team from our Airline
>> Enhancing community assets
travelled to Khao Sok in Thailand, to
>> Improving employability and
support a long-term alliance between
building capacity
Thomas Cook and a local school.
>> Enhancing safety in destinations for
The Thomas Cook team worked to
tourists and staff (achieved through
improve conditions for students at the
the Safer Tourism Foundation)
school and provide additional training
>> Empowerment of women and
for the teaching staff. The team
minority groups
renovated a toilet block at the Wat
>> Enhancing local spaces
Tham Wararam School in the Rainforest
>> Promoting health and wellbeing
of Khao Sok and built a new playground,
>> Supporting the cultural identity
gardening facilities and fishponds
of destinations
at the Baan Yaplong School, as well
>> Disaster relief
as provided two Danish teachers for
a whole week, enabling the students
£1,13m
to improve their English.
FUNDS RAISED
OCT ‘16 – SEPT ’17
17,979
PEOPLE SIGNIFICANTLY
IMPACTED BY OUR CHARITY
PROGRAMMES
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
17
THE JOURNEY
The environmental impact of the travel industry is
considerable, with around 5% of all global carbon
emissions coming from the travel and tourism sector.
We recognised the risks presented by climate change
and know it is our role to reduce this impact.
We are actively engaged in improving our environmental However, this is a challenging target and success depends
impacts. Our focus is to reduce our emissions, with on several factors including the successful implementation
a particular focus on our airline emissions. Air transport of cross-industry programmes such as Single European Sky,
accounts for 2% of global man-made CO2 emissions, of which will reform air traffic management.
which international aviation contributes to 1.3%. It is our
single biggest environmental impact as a business and We also aim to reduce our operational emissions from our
will receive significant attention due to the forthcoming property portfolio along with managing resources across
Carbon Offsetting and Reduction Scheme for International the business. With 22,000 employees in 17 source markets
Aviation (CORSIA). and destinations around the world, we have a significant
footprint in terms of energy use, waste production and
Our target is to improve fuel efficiency by 12% by 2020, water consumption.
against a 2008 baseline. We have made some progress
and in 2017 we improved fuel efficiency by 4% and our
emissions per passenger km were 72.42g CO2.
12%
MORE FUEL EFFICIENT
BY 2020
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
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EMISSIONS
Regulations and international collaborations are increasing. The Paris Agreement delivered a new
framework for uniting and accelerating action and investment needed to address climate change.
The treaty sets out a legal framework ICAO’s Carbon Offsetting and Reduction In support of both agreements, we The majority of our greenhouse gas
for national governments to drive down Scheme for International Aviation (CORSIA) have a renewed focus to deliver carbon emissions come from our Group Airlines.
carbon emissions, adapt to its impact is designed to mitigate international aviation reductions through our business. We report Therefore, improving fuel efficiency is a key
and give enhanced support to developing emissions through a global market-based annually to CDP’s voluntary investor-led priority. As an industry, we are committed
countries, by keeping global temperature measure. It complements the basket programme and in 2017 scored a “B” which to improving fuel efficiency by 1.5% from
increases this century to well below 2 of measures the air transport community demonstrates we are taking coordinated 2009 to 2020, to stabilise net aviation
degrees Celsius above pre-industrial levels. is already pursuing to reduce emissions action on climate change. Our industry CO2 emissions at 2020 levels with carbon
from international aviation. These include average score is “C” showing awareness neutral growth; and to reduce aviation’s
technical and operational improvements about the impacts of climate change. net emissions to 50% of what they were
and advances in the production and use in 2005, by 2050.
of sustainable alternative fuels for aviation.
WHO THIS WHY THIS MATTERS LONG-TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
Climate change is the biggest The Paris Agreement sets out a legal We continue to give people the Over six years we have reduced During 2018 we will continue to review
challenge facing humanity, with a framework for national governments benefits of international travel, in our carbon emissions by more than fuel efficiency projects and engage
systemic change required to all parts to drive down carbon emissions, adapt to an environmentally responsible way, 89,000 tonnes. This is the equivalent with employees on the issue.
of our society to avoid the worst its impact and give enhanced support to limiting global warming to 2 degrees. of taking 19,000 cars off the road.
impacts of climate change, now and developing countries, by keeping global We established six key projects during
for decades to come. temperature increases this century to the year to look at improving fuel
well below 2 degrees Celsius above pre- efficiency. These included improving
industrial levels. As a large multinational flight planning software to include
business, we have our role to play in shorter routes, review of contingency
reducing emissions and future-proofing fuel carried on-board and weight
our business model. The aviation reduction projects.
sector is set to grow significantly with
international tourist arrivals predicted to
be 1.8 billion by 2030, according to UNWTO.
Therefore a continued focus is required
to reduce overall fuel burn and improve
fuel efficiencies. In additon airline fuel
is a cost to the business so managing
its use makes business sense as well
as delivering environmental benefits.
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
19
EMISSIONS
(CONTINUED)
3%
We operate one of the most efficient We are operating several new Airbus
airlines, with our emissions per passenger A321s which have seen us further
km 18% less than the five largest improve our fuel efficiency with estimated
European airlines. Our airlines were also fuel and emission savings between
included in the top 10 of the world’s most 7-8% over the lifetime of the aircraft. EMISSIONS REDUCTION
fuel efficient in the 2017 Atmosfair index. Lightweight trolleys and containers are
in place on our fleet. Along with investing
PER PASSENGER
For this year, our emissions per passenger in new planes, the legacy fleet has KILOMETRE
km were 72.42. This is a reduction from a significant refurbishment programme
12%
the previous year by 3%. It also puts us that includes lightweight seating,
4% towards our target of improving airline and full cabin upgrades. As well as the
fuel efficiency by 12% by 2020, from the new fleet, we continue to make other
2008 baseline. operational improvements, for example,
In the reporting year, we have optimising flight plans including shorter AIRLINE FUEL
reinvigorated our fuel efficiency working routes, encouraging pilots to land using EFFICIENCY BY 2020
group across the Group Airline business. a reduced flap setting to reduce airframe
In previous years we ran separate groups drag, continuous descent approaches and
in the different airlines. With a Group-wide single engine taxiing. We are delivering
approach, the data is more effectively other weight reductions, including the
tracked, initiatives are more easily shared roll out of an electronic tech log to replace
and greater improvements can be made. paper manuals, saving both paper and
weight on board.
Thomas Cook Group Airlines (gCO2 per passenger km)
76
74
72
70
68
08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
20
OPERATIONAL
EFFICIENCY
Our product depends on the beautiful destinations we travel to, the vibrant
communities we interact with and the reliable sunny weather we enjoy.
All of these are threatened by climate change and natural resource depletion.
Managing our carbon emissions This is due to a combination of Our Northern European Airline generates
and resource use doesn’t just make streamlining locations, increasing the 20% of its own power following the
good business sense. The effective focus on energy efficiency and installing installation of the largest solar power
management of airline fuel use, energy, new technologies. By operating our system in Copenhagen Airport on the
water and waste production can business efficiently and measuring and engineering hangar roof.
not only reduce this business costs managing our environmental impacts,
but it can conserve valuable natural we can implement changes to reduce We remain committed to raising
resources, improve energy security and our costs and benefit the environment. awareness of energy efficiency with
support the efforts to return waste to our employees. Employee environmental
meaningful use, contributing to creating In order to manage these impacts forums and committees exist in many
a circular economy. effectively, we have adopted formally of our operating businesses to support
recognised environmental management behavioural change, promote new ideas
systems at some of our key office and inspire colleagues. We encourage
ENERGY locations including ISO14001 certificates sustainable travel options for employees.
With almost 22,000 employees across for both our Northern European and We have installed electric car charging
17 source markets and many more UK Airlines. facilities at key offices, offer bicycle
destinations, Thomas Cook Group has leasing programmes and bicycle parking
a significant footprint as a business. Energy security means finding ways stations and promote car sharing where
During 2017, we have continued to to future proof the business against appropriate. We were recognised for
become more energy efficient, reducing increasingly volatile energy markets. our efforts in our UK head office with
greenhouse gas emissions and costs. Across the Group, 44% of our electricity a silver award from the Peterborough
comes from renewable sources. Travel Awards.
WHO THIS WHY THIS MATTERS LONG-TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
As the world has a finite amount Effective management of resources We are striving to deliver resource Building sustainable food and water To focus on energy efficiency and
of natural resources using them makes good business sense. efficiencies throughout the management programmes within our improve recycling rates throughout
in the most effective way not only business to run our operations in a hotel operations. our office and retail networks.
reduces waste and minimises our responsible way.
environmental impact for future
generations but it can also help
enhance our product offering for
our customers.
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
21
OPERATIONAL EFFICIENCY
(CONTINUED)
WASTE WATER
Onboard waste is one of our main waste streams
and our Group Airline has been a leader in tackling
Water is essential to our business. It is used for
showers, swimming pools, cleaning and to grow food SUSTAINABLE FOOD
this issue, despite the operational and legislative for the hotel restaurants. Many of our destinations Over one third of all global food products are Working with chefs and hoteliers, a manual
challenges it brings. We ensure waste is segregated are in areas recognised as being water scarce, with disposed of every year. Food production is a about “Sustainable Food” was developed.
in flight and recycled where possible but we face insufficient water readily available to meet the needs complex, resource intensive global industry and It included some very practical actions hotels
inconsistencies in how waste is managed in different of the communities living there. Demand for water we each must do our part to reduce the volume can take including looking at local food, seasonal
countries and airports. is projected to exceed supply by 40% by 2030 so it is of waste created. food, sustainable purchasing policies, how
imperative that we take action along with others in to present food, designing a sustainable menu,
We are also looking at where we can reduce waste our industry. Analysis shows that 60 percent of food produced
on board. For example, the introduction of a new on waste management and how to implement a
in hotels is thrown away. This waste comes from sustainable food strategy. We are implementing
board smart device enabled e-receipts saving over As water is used widely in our accommodation food preparation, leftovers from the buffets and
2,000 miles of paper, or the equivalent of 250 trees. supply chain, it is our responsibility to engage the recommendations in the manual throughout
from guest’s plates. In partnership with Futouris our own-brand hotels in 2017 and 2018. We will
with hoteliers and educate our customers to e.V., United against Waste e.V. and other industry
Recycling programmes and initiatives are in place reduce consumption and avoid wasting water. be measuring the impact of those changes, but
across the business and our employees are actively players, Thomas Cook Germany has worked on a we expect reductions of over 5% on average and
We encourage hoteliers to subscribe to Travelife project to reduce food waste in the hotel industry.
encouraged to participate. (a leading sustainability hotel certification scheme) up to 30% for some hotels.
We are also looking into how we can manage to demonstrate how they are monitoring and
food waste in our hotels. See the case study for managing environmental impacts, including water
more information. consumption. In order to understand how to balance
the water expectations of our customers with the
2,000
rights of local people and their environment, we
developed a manual for hoteliers to enable them to
manage and reduce water consumption. The range
of interventions vary from simple monitoring and
MILES OF PAPER SAVED measuring, to customer communications and
assessing indirect water use, in particular water
40%
used to grow food. The handbook gives advice on
how to set up a water efficient food buying strategy,
looking at what to buy more or less of.
After implementing recommendations from the
ELECTRICITY COMES handbook, the SENTIDO Apollo Blue in Rhodes reduced
FROM RENEWABLE water consumption by 11% year-on-year.
SOURCES
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
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ON HOLIDAY
Tourism is one of the biggest industries in the world
and one that contributes positively to the economic
and social fabric of destination communities.
We work extensively with our hotel brands to enable our This is a significant challenge. With different types of hotels
customers to experience local products and services, giving in many regions of the world, influencing our partners and
them an authentic taste of the local culture and helping supply chains and is not always easy and not all hotels fall
the local economies thrive. within our direct control.
Hotels are key to sustainable destinations. They play In 2017 28% of our own-brand hotels achieved a Travelife
an important role in protecting the local environment award at the end of the year.
and improving the lives of local communities. Hotels must
100%
demonstrate they are managing these impacts. By 2020,
we aim to have all of our own-brand hotels accredited
by Travelife, the internationally-recognised scheme which
helps hotels and accommodations to manage and improve
their social and environmental performance. OF OUR HOTELS TO BE ACCREDITED
BY TRAVELIFE BY 2020
THOMAS COOK GROUP PLC Sustainability Repor t 2017OVERVIE W AT HOME THE JOURNE Y ON HOLIDAY OTHER INFORMATION
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SUSTAINABLE HOTELS
TRAVELIFE
We have a diverse supply chain, made up of large and small businesses and individuals.
Together we create unique holiday experiences for our customers, working closely to
develop the services and standards our customers expect.
We have a Supplier Code of Conduct which Travelife is a sustainability accreditation We have been working closely We will continue to work with all our
sets out the expectations we have on our scheme aimed at hotels. It is recognised with Travelife to ensure our suppliers own-brand hotels to enable them to
suppliers to work ethically and to reduce by the Global Sustainable Tourism Council are prepared for the challenge of achieve a Travelife award. Our Quality
their environmental impact. This code as a robust certification scheme that accreditation, or have shown good Managers have been working with some
is currently being implemented into all provides assurance for our customers. progress since their last inspection to of our largest hotels to encourage them
purchasing and contractor management Subscribed hotels are independently achieve re-accreditation. Participation in to start their sustainability journeys by
processes across the Group. audited against 163 different criteria Travelife is now a mandatory requirement subscribing to Travelife. This year we
that include environmental management, for our Sunwing, Sunprime and SENTIDO have done more to promote Travelife,
Our own-brand hotels form the employee and customer engagement, hotel brands as part of our contract with including taking part in training sessions
cornerstone of the Thomas Cook holiday local procurement, and labour and human the hotellier and will become mandatory for hoteliers across Greece, to enable
offering. Our seven brands include rights. Successful hotels receive an for our remaining brands SunConnect, them to understand the strategic
Sunwing, Sunprime and SunConnect, award that is featured on our websites, smartline and Casa Cook over the next importance of the scheme to us as
all of which have a long-standing in brochures and in marketing materials. two years. a tour operator business.
commitment to sustainability. This helps our customers to easily
Our Sunwing and Sunprime properties recognise hotels that protect and support
have been working with EU Eco-Label their environment and local communities.
and Travelife for a number of years We know that Travelife hotels have
and we support both the Travelife higher levels of customer satisfaction
Sustainability System and the EU in addition to considerable operational
Eco-Label. savings of upwards of £150,000 annually
in some circumstances.
WHO THIS WHY THIS MATTERS LONG-TERM OUR NEXT
MATTERS TO TO OUR BUSINESS VISION PROGRESS STEPS
Our hotels are key to delivering Raw materials and resources To operate hotels who have efficient 30 new hotels reached Travelife Continue to expand our Travelife
special holiday experiences for all of are costly and scarce in some systems to minimise waste, produce Gold status in 2017 and we have membership, focusing on our branded
our customers. We know that our areas, particularly food and water. their own energy from renewable achieved new commitments from hotels as well as our biggest volume
customers enjoy our hotels more Reducing use and waste is key to sources and procure their produce our hotel brands to mandate hotels across the group.
when they operate responsibly. saving money and improving the from local suppliers. Travelife compliance.
customer experience.
THOMAS COOK GROUP PLC Sustainability Repor t 2017You can also read
