HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook

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HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
MAKING A
DIFFERENCE
WITH EVERY
HOLIDAY
SUSTAINABILITY REPORT 2017
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
OVERVIE W                               AT HOME                     THE JOURNE Y                ON HOLIDAY                   OTHER INFORMATION

                                                                                                                                                                                2
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
OVERVIE W                               AT HOME        THE JOURNE Y                              ON HOLIDAY                             OTHER INFORMATION

                                                                                                                                                                                                        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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
OVERVIE W                                   AT HOME                  THE JOURNE Y                                ON HOLIDAY             OTHER INFORMATION

                                                                                                                                                                                                           5
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
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                                                                                                                                                                                                           6
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
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                                                                                                                                                                                                 7
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
OVERVIE W                                  AT HOME                               THE JOURNE Y                          ON HOLIDAY                            OTHER INFORMATION

                                                                                                                                                                                                                        8
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
HOLIDAY MAKING A DIFFERENCE WITH EVERY - SUSTAINABILITY REPORT 2017 - Thomas Cook
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                                                                                                                                                                                                               9
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 2017
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                                                                                                                                                                     10

   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

THOMAS COOK GROUP PLC Sustainability Repor t 2017
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                                                                                                                                                                                                                11
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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                                                                                                                                                                                                                12
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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                                                                                                                                                                                             13
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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                                                                                                                                                                                                                   14
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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                                                                                                                                                                                                                          15
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.

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                                                                                                                                      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

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                                                                                                                                                                         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

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                                                                                                                                                                                                                                18
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.

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                                                                                                                                                       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

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                                                                                                                                                                                                          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.

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                                                                                                                                                                                                                        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

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                                                                                                                                                                    22

   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

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                                                                                                                                                                                                                 23
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 2017
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