Scotland Corporate Responsibility Report 2006/07 - Amazon S3

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Scotland Corporate Responsibility Report 2006/07 - Amazon S3
Scotland Corporate Responsibility Report 2006/07
Scotland Corporate Responsibility Report 2006/07 - Amazon S3
About BAA Scotland

About BAA Scotland                       BAA Scotland owns and operates Aberdeen, Edinburgh and Glasgow airports.
From the Chairman                    1   We directly employ almost 1,200 people across our three airports in a diverse
BAA and climate change               2   range of management, operational and support roles.

Local community                      4   Our airports are the gateways to Scotland,      combined total of 42,130 tonnes of air
 Engagement locally                  4   welcoming millions of visitors every year.      cargo and freight during 2006/07. They
 Community investment                6   A record 20.7 million passengers used our       are the engines that help drive Scotland’s
 The local economy                   8   airports during 2006/07, an increase of         economy, linking Scottish business to the
                                         2.6% on the previous year, travelling to or     key financial and commercial markets of
The local environment               10   from 130 destinations across the globe. In      the world.
		 Noise                            10   partnership with the Scottish Government,
		 Surface access                   12   Visit Scotland, Glasgow City Marketing          As passenger numbers increased, we
		 Energy use                       14   Bureau and other agencies, we work hard         invested £39 million on new terminal
		 Air quality                      16   to improve our international connections,       facilities and airfield developments in
		 Waste                            17   bringing the world closer to Scotland.          2006/07. Flagship projects completed
		 Water quality                    18   During the past year, our airports launched     during the past year included a £3 million
		 Water consumption                19   over 40 new services, 29 of them to             departure lounge extension at Aberdeen,
		 Biodiversity                     20   international destinations.                     the £19 million South East Pier development
                                                                                         at Edinburgh and a £10 million extension
Delivering for passengers           22   But our airports are much more than             to the international departure lounge and
 Safety and security                22   gateways. They support thousands of             arrivals area at Glasgow Airport. Over the
 Service                            24   jobs, directly and indirectly, across           course of the next ten years, BAA Scotland
                                         Scotland and generate investment                will invest more than £500 million across
Our people                          26   opportunities for businesses across a wide      its three airports. This investment is funded
                                         spectrum of commercial interests. They          entirely from our own resources and
Health and safety                   28   are an important hub for Scottish based         delivered at no cost to the Scottish taxpayer.
                                         importers and exporters, handling a
Managing corporate responsibility   30
Assurance statement                 34
                                         About our report
                                         This corporate responsibility report, for the   stakeholder audiences: our employees,
                                         twelve-month period from April 2006 to          local communities, business partners,
                                         March 2007, addresses our performance           government and non-governmental
                                         on a wide variety of environmental,             organisations. We recognise the
                                         economic and social issues. It sets out         importance of all of our stakeholders and
                                         our annual target and benchmarks our            welcome your feedback on any of the
                                         performance against those targets.              issues contained within this report.
                                         A selection of our environmental reporting      To provide us with feedback, please email
                                         is subject to independent assurance by          us at corporateresponsibilityscotland@
                                         Environmental Resources Management              baa.com or call us on 0141 848 4299. In
                                         Limited (ERM) to ensure that we provide a       addition to this report, BAA Limited has
                                         complete and accurate picture of our            published a group corporate responsibility
                                         performance. ERM’s assurance statement          report, which sets out our progress across
                                         can be found on pages 34 to 35.                 our seven UK airports. The document
                                                                                         is available to view or download at
                                         The information contained within this           www.baa.com/corporateresponsibility.
                                         report while intended to account for our        You may find it helpful in setting the
                                         performance also informs our different          context for this report.
Scotland Corporate Responsibility Report 2006/07 - Amazon S3
From the Chairman

From the Chairman

For me, being the custodian of Scotland’s three busiest airports is about more
than connecting Scotland to the rest of the world.

Our airports are lifelines, providing         addressing this monumental challenge
valuable social and economic opportunities    and providing a legacy of which our
for business, commerce, trade and leisure.    children and their children are proud –          Corporate responsibility is about much
                                              not frightened.                                  more than our impact on our immediate
We provide jobs for thousands of people                                                        environment and on the climate. It is
across Scotland, supporting many more         We must not shirk our responsibility to          about our relationship with our staff, our
in related industries and we help drive       future generations. And at BAA, we won’t.        communities and Scotland’s business
Scotland’s economy, through the consistent                                                     sector. It is our duty to invest in and support
delivery of the high-quality investment and   But if we are to find genuine solutions to       our communities, to grow our airports in a
customer service which allows our airports    climate change, we need to move that             responsible and sustainable manner, and to
to meet the demands of a modern,              debate on to a more sensible level – a           provide the network of worldwide routes
changing Scotland.                            debate based on potential economic and           that allows Scottish business to compete
                                              scientific solutions, not simply local action    in a truly global market.
Today, our passengers are ever more           to curb travelling.
demanding, and rightly so. They expect                                                         This report records our progress in these
the best from us. They tell us what we        The Stern Report, commissioned in 2006           crucial areas. But it also sets our vision
do right and, more importantly, what          by the UK Government, shows that                 for the sustainable growth of Scotland’s
we do wrong.                                  aviation contributes just 1.6% of global         busiest airports and our determination to
                                              CO2 emissions. Even with the forecast            deliver for the communities we serve, for
This relationship with our stakeholders       growth in worldwide aviation, the                the businesses that help drive Scotland’s
is essential for a business which is at       industry’s impact is expected to grow to         growth and for the millions of air
the centre of a dynamic and responsive        just 5% by 2050.                                 travellers who use our airports every year.
industry. We continue to invest to grow
our airports and to provide the kind of       To put those figures into context, road          I hope you find this report useful and
quality and customer care our passengers      transport and energy production                  would welcome your views of our
expect. But as we grow and invest, we         represent 10.6% and 24% of current               performance and particularly where we
are mindful of our enduring responsibility    global emissions respectively. So, this is a     might improve in the years ahead.
to the wider community.                       challenge we must all face, as individuals,
                                              as businesses and as governments.
There is no greater challenge facing the
world today, than climate change.             But we cannot be complacent. While               Stephen Baxter
                                              other industries face up to the climate          Chairman
As the father of three young children,        change challenge, aviation must also             BAA Scotland
I desperately want to be part of the          put its house in order. It is a challenge
generation which is remembered for            we have willingly accepted at BAA.

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BAA and climate change

BAA and climate change

Climate change is an important issue for BAA. As CO2 emissions from aviation
are projected to rise in future years, we are committed to reducing our own
impacts, and to help reduce the impacts of the aviation industry as a whole.

The issue                                      Taking into account non-CO2 impacts,
                                               the Intergovernmental Panel on Climate
Scientists agree that human activity is        Change (IPCC) estimates that aviation
having a measurable effect on the earth’s      accounts for around 3.5% of the total
climate, with significant impacts on global    human contribution to climate change.
temperatures and weather patterns. The         By 2050, the IPCC estimates that aviation
main cause is the emission of carbon           will account for around 5% of human
dioxide (CO2) associated with the burning      contribution to climate change, although
of fossil fuels.                               its figures range from 3.5% to 15%.
                                                                                            • Ground emissions from vehicles used by
Aircraft emissions represent a small but       The UK proportion of emissions from             passengers and staff to get to and from
growing contribution to climate change,        aviation is higher than the global figure       the airport
and this needs to be addressed.                because the UK is an international           • Ground emissions from vehicles and
                                               aviation hub. Current CO2 emissions from        aircraft on the airfield.
Globally, the proportion of greenhouse         aviation are 6% of the UK total (around
gas emissions from aviation is currently       10 million tonnes of CO2). The projected     Our approach
relatively small. The Stern Report uses a      growth in air transport means emissions
figure for aviation of around 1.6% of          from aviation will rise at a time when the   Under the Kyoto Agreement, the UK is
global CO2 emissions.                          UK and Scottish Governments have set         committed to reducing its emissions of
                                               new targets to significantly reduce CO2      greenhouse gases to 12.5% below 1990
However, we recognise that aviation’s          emissions from the economy as a whole.       levels. This is to be achieved between
impact on climate change comes not             The UK Government predicts that              2008 and 2012.
just from CO2 emissions. Other emissions       aviation could account for around 21% of
such as nitrogen oxides (NOx) and effects      the UK’s total carbon emissions by 2050.     In March 2007, the UK Government
such as jet engine ‘contrails’ (condensation                                                published a Climate Change Bill proposing
trails) also have an impact. Contrails may     Aside from flight operations, there are      a binding reduction in CO2 emissions of
also lead to the formation of cirrus cloud.    other ways that the air transport industry   60% by 2050. More recently, the Scottish
Today, new aircraft are 70% more fuel          and our airports contribute to global        Government began consulting on a
efficient than 40 years ago and 20%            warming. These include:                      separate Climate Change Bill with a target
better than ten years ago. There is            • Greenhouse gas emissions generated by     of cutting CO2 emissions in Scotland by
uncertainty over the exact scale of these         the production of the energy used in      80% by 2050.
impacts and more research is being                airport buildings and operational
conducted to quantify this.                       facilities

                                               6%
                                               the percentage of CO2 emissions that are attributable
                                               to aviation from the UK’s total

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Although flight operations cause              Technological and operational                  Emissions trading
aviation’s biggest impact on climate          improvements
change, we are committed to playing our                                                      Emissions trading represents the most
part in achieving these goals, both at an     Aircraft manufacturers have delivered          economically efficient and environmentally
airport and industry level.                   impressive improvements in fuel efficiency     effective way of aviation addressing the
                                              over the past 30 years, and expect to          impacts of its emissions. When carbon
At BAA Scotland, we assist and support        continue to make improvements with each        trading is achieved in Europe, part of the
the work programme of our parent              new generation of aircraft and engine          climate change impact from aviation will
company, BAA Limited, in addressing           design. The new Boeing 787 Dreamliner,         be offset by reductions in other industries,
aviation’s impact on the world’s climate.     due for delivery to airlines in 2008, is       but paid for by the aviation industry,
                                              expected to be 20% more fuel-efficient         ultimately through the price of tickets.
Where we have direct control over carbon      than existing aircraft. Meanwhile, European
emissions, such as energy use in our          manufacturers have set a target for new        We are working closely with key
facilities, we aim to lead the airport        aircraft in 2020 to be 50% more efficient      stakeholders in Europe – including
industry in managing them. Where we do        than new aircraft in 2000.                     government, industry and NGOs – to
not have direct control over emissions, for                                                  build support for incorporating aviation
example in the case of flight operations,     There are also significant opportunities       into the EU Emissions Trading Scheme.
we will continue to use our influence to      to make air traffic control more efficient.
lead changes.                                 The ‘Single European Sky’ is a project         The current European Commission
                                              to integrate European air traffic control      proposal is to incorporate aviation by
Emissions from flights                        systems. The International Air Transport       2011. BAA views action at a European
                                              Association (IATA) has predicted that 12%      level as an interim step towards
To develop and promote measures to            of global aviation CO2 emissions could be      integration in the global climate change
minimise emissions from aircraft, BAA’s       saved if air traffic control systems and       policy framework.
strategy has two main elements:               routes were made more efficient.
1) To work with the aviation industry to                                                     You can read more about how our
promote technological and operational         However, aviation is growing at a faster       parent company is addressing climate
improvements. 2) To provide support to        rate than technology can reduce                change in BAA’s corporate responsibility
policymakers to incorporate aviation into     emissions and at present there is currently    report at
emissions trading.                            no significant alternative to burning          www.baa.com/corporateresponsibility.
                                              kerosene. Therefore, cost-effective policy
                                              measures also need to be developed.

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Local community

Local community

This section of the report describes the way in which we engage with the local
communities around Aberdeen, Edinburgh and Glasgow and how our airports
deliver benefits to their local economies.

Engagement locally                             Our customers include the passengers
                                               travelling through our airports, the airlines
                                               carrying them, retailers and many other
The issue                                      tenants. Our principal dialogue with
                                               passengers is through our Quality of
BAA Scotland has many different                Service Monitor (QSM) survey. Each year
stakeholders who take a keen interest          we interview thousands of passengers
in what happens at our airports.               to help us understand customer
Our stakeholders include employees,            perceptions and to improve levels
passengers, airlines, local communities,       of service.                                     We meet local authorities to understand
media, trade unions, pressure groups,                                                          the concerns of those affected by our
suppliers, regulators and local and            The Airport Consultative Committees             airports and to help meet their needs as
national government.                           (ACCs) are the largest consultation             we expand our business. By sharing our
                                               forums. They are independently chaired          objectives at an early stage we give local
Our approach                                   and have a wide membership including            authorities the opportunity to influence
                                               representatives of local authorities,           our development plans before we apply
We have a strong commitment to the local       community councils, business leaders,           for planning permission.
communities around our airports and we         the aviation industry and members
seek to operate and grow our business by       of the local community. They meet               At each of our airports, we are focused
agreement with our neighbours, where           quarterly with airport senior managers.         on communicating directly with our local
possible. Our three airports have well                                                         communities. In 2006, a new quarterly
established stakeholder communication          We engage regularly with government             newsletter was established at Edinburgh
programmes which allow us to understand        officials and politicians at a national,        Airport, which is now sent to over 10,000
stakeholder issues and maintain constructive   regional and local level to understand          households. A similar publication will
dialogue about how they impact on their        their position on key policy areas and          soon be launched at Glasgow Airport.
local communities and the environment.         to communicate our own views. We                Following the publication of our draft
                                               recognise that many environmental and           25 year Master Plans in 2005/06, we
We communicate with our stakeholders           social challenges, such as climate change,      held an unprecedented level of dialogue
throughout the year, both formally             need to be tackled using effective public       with our community neighbours and their
through industry initiatives and informally    policy frameworks.                              representatives. Taking account of the
as part of our day-to-day business.                                                            results of the consultations, revised Master
                                                                                               Plans for Aberdeen, Edinburgh and
                                                                                               Glasgow airports were launched during

                                               £84,000
                                               funding from The BAA Communities Trust
                                               to help local projects

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the latter part of 2006 and we continue       Edinburgh Airport distributed its community   At the same time, we continue to listen
to have ongoing dialogue with many local      newsletter to more than 10,000 households     to the views of our passengers. Glasgow
communities about our long-term               in November and July. The newsletter,         Airport has taken the lead with new
development plans.                            which covers a wide range of issues, allows   “Meet the Manager” sessions, giving
                                              direct contact with a large number of local   passengers the opportunity to talk face
Positive engagement with our employees        residents and has been positively received.   to face with senior airport bosses about
is equally important for the long-term                                                      their travel experience. Similar sessions
success of our business. We engage with       In November 2006, we commissioned             are planned over the coming year at
them formally through trade union             MORI to undertake a survey in the             Aberdeen and Edinburgh Airports.
consultation and employee surveys as          communities around our airports. A total
well as through appraisals, Managing          of 1,633 people were asked to provide
Director road shows and meetings.             their views on the issues they face living
                                              close to a major airport. The results
Our performance                               showed that overall, community attitudes
                                              are favourable towards our airports. At
During 2006/07, we conducted 17,042           Aberdeen, 78% of respondents gave
QSM interviews with passengers across         a favourable rating, at Edinburgh it was
our three airports. The results of these      75% and at Glasgow the favourable
interviews are used to drive customer         rating was also 78%.
service improvements across a wide range
of activities such as speed and ease of       Our plans
check-in, security processing, building
cleanliness and passenger information.        During 2007, we will continue to reinforce
                                              the positive relationships and strong links
In addition to the QSM interviews,            we have built with our stakeholders
our three airports each distributed ten       through practical action and maintaining
e-bulletins to more than 17,500 recipients    regular, clear and open channels of
to inform passengers of improvements to       communication.
airport services, new routes and other BAA
travel services. The number of people who     In addition to our established local
have signed up to receive these bulletins     activities, we plan to widen our
confirms they are a valuable passenger        engagement programme to other parts
communication tool.                           of Scotland, within our main catchment
                                              areas. We aim to meet a broad range of
Over the past year, our three airports held   stakeholders, with whom we would not
their Consultative Committee meetings         normally have the opportunity to engage,
every quarter providing representatives       in an effort to better understand their
of local authorities, community councils,     views, and discuss ways in which we can
business leaders, the aviation industry       work together to promote Scotland and
and members of the local community            its airports.
with a remit to represent the interests of
the passenger.

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Local community

                                                                                            Organisations interested in applying for
                                                                                            funding from the BAA Communities Trust
                                                                                            should contact their nearest airport for
                                                                                            further information.

                                                                                            The Trust focuses on three main areas:
                                                                                            • supporting local community activity
                                                                                              around our airports by giving grants to
                                                                                              help local schools or to fund skills
                                                                                              development programmes
                                                                                            • initiatives proposed by airport staff such
                                                                                              as fundraising and volunteer activities
                                                                                            • charities which support overseas
                                                                                              development and create development
                                                                                              opportunities through aviation and
                                                                                              travel for young people in the UK.

                                                                                            Our performance

                                                                                            In 2006/07, we supported 136 community
Community investment                          environmental issues, support local           based projects to the value of £183,692.
                                              education and skills programmes for           In addition, over 280 staff volunteered
The issue                                     young people, and encourage                   2,721 hours with a value in excess of
                                              volunteering projects.                        £40,000. In kind contributions such as
The presence of an airport or any other                                                     meeting room hire, catering and gifts
major business can have both positive         This community investment is carefully        amounted to more than £41,000. By
and negative impacts for local                focused on three principle areas of           working in partnership with local people
communities. Our airports bring positive      activity – education, environment and         and groups, we are making a positive
benefits to local communities such as         sport – and targeted in areas where our       contribution to the communities around
many thousands of jobs, as well as            skills, resources and efforts will            our airports.
opportunities to travel. However, we          complement and add value to local
recognise that there are also negative        communities. We also look to support          During the year, our three airports
impacts. At BAA Scotland, we have a           projects which complement our core            secured £84,000 of funding from
strong commitment to the local                business competences and give our staff       the BAA Communities Trust to help
communities around our airports and we        opportunities for professional and            local projects.
seek to operate and grow our business by      personal development.
agreement with our neighbours where                                                         Education and skills
possible. We listen closely to the concerns   The BAA Communities Trust also plays a
expressed by local communities and have       significant part in funding local             We are committed to helping young
a strong track record of taking action        community projects around our airports.       people develop key skills to build
in response.                                  The Trust receives 0.15% of BAA’s pre-tax     satisfying and rewarding careers which
                                              profits each year and has donated over        add to the country’s prosperity.
Our approach                                  £4 million to projects across the UK in its
                                              first ten years. It also aims to encourage    The BAA Scotland Outreach programme,
We work hard to gain and maintain the         staff volunteering and working with           a unique partnership with the National
trust of the communities around our           young people in communities associated        Trust for Scotland and the Prince’s Trust
airports. We continue to aspire to raise      with, or local to, our business.              has delivered nine projects across our
knowledge and understanding of                                                              three airport locations. Almost 100 young

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people involved in the Prince’s Trust           The Edinburgh Airport Youth Games               We recognise and reward this volunteering
projects and living in our airport              are the city’s largest annual youth             through BAA’s I-Volunteering Awards.
communities have had the opportunity to         sporting event, involving over 1,000            Since its launch in 2004, £300,000 has
participate in practical conservation work      young people from 40 schools. The               been donated to community projects and
which raises self esteem, promotes team         2006 Youth Games, formally opened               local charities, and 565 employees have
work, builds character and engenders            by the Scottish Sports Minister, was the        taken part in the awards scheme. During
wider community benefits. The National          biggest in its seven year history.              2006/07, 58 employees from our three
Trust for Scotland has gained in excess                                                         airports applied for an award, raising
of 400 hours of volunteering time that          Working in partnership with The                 almost £24,000 for good causes in
they would otherwise have had to pay            Lighthouse, Scotland’s Centre for               Scotland in the process.
for and over 30 BAA Scotland staff have         Architecture, Design and the City, and
volunteered their time and expertise to         The Royal Commission on the Ancient and         At Aberdeen, Kenny Adams, of the
help promote active citizenship and work        Historical Monuments of Scotland, BAA           Airport Fire Service, raised £1,500 for
opportunities with the young people.            Glasgow hosted a cross community                the Archie Foundation at Aberdeen’s
                                                project involving current and retired airport   Sick Children’s Hospital after running
BAA launched a dedicated education              staff, local students, members of the Rolls     the London Marathon.
website – ‘Take Off and Learn’– in autumn       Royce Heritage Club and aviation
2006. It provides resources for teachers        enthusiasts to produce a booklet                Our plans
and information for young people who            commemorating the work of architect Sir
want to find out more about training and        Basil Spence as part of the airport’s 40th      We will continue to focus on partnership,
skills programmes at our UK airports. Port      anniversary. The booklet was distributed to     working with local people to develop,
Glasgow High School in Inverclyde was           all passengers and staff on the airport’s       create and contribute to initiatives that will
one of two UK schools to win £1,000             40th anniversary on 27 June 2006 and has        make a difference to the local communities
worth of new computer equipment after           since been distributed world-wide. An           around our airports. We will support
entering a competition on the site.             exhibition celebrating Spence’s work was        Government and industry led initiatives
                                                held at the airport in December 2007. A         to raise standards in education.
At Aberdeen, the Mither Kirk Project            gala dinner held in Glasgow City
provides a focal point in the centre of         Chambers to mark the 40th anniversary of        We plan to build on the success of the
the city for local people and visitors          the opening of Glasgow Airport raised           Youth Games at Edinburgh and Glasgow
to learn about its history as well as           more than £18,000 for the Scotland/             and expand the concept to Aberdeen.
providing education and entertainment           Malawi Partnership and Yorkhill Children’s
opportunities.                                  Foundation.                                     We will promote a programme and culture
                                                                                                of employee volunteering, ensuring we
Aberdeen Airport is also the venue for          Volunteering                                    support individuals who give up their time
the Young Fire Fighters Association.                                                            to undertake community activities.
Every week eight pupils from Dyce               We encourage our employees to volunteer
Academy and Kemnay High School attend           and fundraise in the local community by
the airport fire station to take part. The      giving them up to six days paid leave for
aim of the unit is to raise social awareness,   approved volunteering activities every year,
develop confidence, encourage team              subject to operational requirements.
work, understand the needs of others,
have fun and learn valuable skills which        During 2006/07, 280 BAA Scotland
may one day save lives.                         employees gave 2,721 volunteering hours
                                                to community projects.

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Local community

The local economy

The issue

Aviation is important for the global
economy and contributes significantly to
the UK’s economic well-being. Many
businesses have supply chain activities
that are at least partly reliant upon the
airfreight sector. Air travel also facilitates
international tourism which in turn
supports thousands of jobs in the tourism
and hospitality sector, industries which
are at the heart of Scotland’s economy.

Our approach

Our airports are central to the ongoing
prosperity of local and regional
economies. BAA Scotland remains
committed to ensuring that communities           (BSC). This shared service centre provides    airports each year. In 2006/07, passenger
around our airports derive as much social        a wide range of financial and technical       numbers grew by 2.6% to 20.7 million,
and economic benefit as possible. We             support functions for BAA’s seven UK          with an 8.8% rise in international traffic
maintain an active interest in the work of       airports. Opened in 2000, the BSC initially   fuelling the growth.
local and national business organisations        employed just 40 people.
to ensure that we remain responsive to                                                         BAA Scotland is focused for consistency
social and economic trends in the wider          Our performance                               on the long term, creating an environment
community. These organisations include:                                                        in which Scottish business can thrive
• Local authorities                              BAA Scotland’s three airports enjoyed a       through increased connectivity, and in
• Scottish Enterprise and its local agencies     year of sustained growth, as international    which our passengers enjoy the highest
• Scottish Chambers of Commerce and             increased, and new investments paved          standards of service.
   local chambers of commerce                    the way for future success.
• Scottish Council for Development                                                            Route development
   and Industry.                                 Our route development fund continued
                                                 to attract new airlines to Scotland,          Scotland’s economy relies on a strong
BAA Scotland directly employs almost             including Delta, Finnair and SkyEurope,       network of domestic and international air
1200 staff in Scotland – 455 staff at            and supported the expansion plans of          links. New routes create new opportunities
Glasgow, 459 at Edinburgh and 250 at             more established airlines such as EasyJet     for Scottish business, help promote
Aberdeen. Staff are employed across a            and Flyglobespan. Over 40 new services        inbound tourism, and deliver more
diverse range of roles including security,       were launched in 2006/07 as a result of       choice for Scottish travellers.
airfield operations, finance, development        BAA’s commitment to improve Scotland’s        With direct links to around 130
and supply chain. In addition, our airports      connectivity, with many more also             destinations worldwide, Scotland
support thousands of jobs across each            confirmed for 2007/08.                        has never been better connected.
airport campus, with thousands more
across Scotland, including airline crew,         Looking to the future, BAA Scotland’s         In 2006/07, we invested more than
handling agents, retailers, caterers and         airports published master plans setting out   £20 million in support of new routes
cargo handlers.                                  their plans for responsible and sustainable   through our route development fund.
                                                 growth. These blueprints re-affirm BAA’s      Since the fund’s launch in 2002, BAA
At Hillington Park, close to Glasgow             long-term commitment to Scotland, to the      Scotland has invested £95 million on
Airport, BAA employs a further 295               cities we serve, and to the growing           route development with the aim of
people at its Business Support Centre            numbers of passengers who use our

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attracting new airlines to Scotland, and        Capital investment                                Supply chain
supporting existing carriers. This funding
provides discounts on published landing         As passenger numbers grow, so too does            Our airports are an integral part of
charges, and marketing support.                 the demand for additional capacity across         Scottish business life, with each airport
                                                the three airports. Over the next ten years,      supporting an extensive framework of
Our investment helped deliver 45 new UK         BAA Scotland will invest some £500 million        local and national suppliers. This network
and international services in 2006/07,          in its airports. This investment will be met      includes cleaning, waste management,
including flights to Hamburg, Berlin,           entirely from BAA’s own funds, at no cost         trolley management, landscaping,
Madrid, Zurich, Kristiansand and Atlanta.       to the taxpayer.                                  maintenance, printing and stationery
                                                                                                  supply. In 2006/07, BAA Scotland had
Support for new airlines is also provided       During 2006/07, BAA invested some                 a supply chain spend of £74 million.
by organisations such as Glasgow City           £39 million on capital projects, including
Marketing Bureau, Visit Scotland and            the new £19 million south east pier at            Master plans
the Scottish Government, working in             Edinburgh Airport. This major investment
partnership to promote Scotland as a            offers additional capacity within the             Each airport published detailed 25 year
business and leisure destination.               terminal, as well as new retail and               master plans in 2006/07. These ambitious
                                                lounge facilities.                                documents, delivered after unprecedented
Traffic                                                                                           public consultation involving local and
                                                New terminal developments at Glasgow              national stakeholders, provide
Passenger numbers across the three              included the completion of a new                  a platform for the sustainable development
airports continued to rise during 2006/07       passenger ‘skylounge’, part of a £10              of Scotland’s main airports. The master
as a result of BAA’s investment in route        million expansion of the international            plans will be reviewed every five years,
development. Overall, passenger numbers         departure and arrival facilities. The project     in line with Government guidance. In the
rose by 2.6% to 20.7 million.                   also included the refurbishment of the            meantime, we will continue to engage with
                                                existing international departure lounge.          our key stakeholders around the future
International traffic grew by 8.8% during       The airport’s domestic and international          development of our airports.
the year, boosted by new long haul flights      search areas were also refurbished and
to Orlando and Atlanta and a host of            rebranded as part of our ongoing                  Our plans
European destinations. During the year,         investment in airport security.
our long haul passengers topped the                                                               New air links create opportunities for
million mark for the first time.                At Aberdeen, work was completed on                business and tourism in Scotland and
                                                a £3 million extension to the departure           we will continue the investment in route
As Scotland’s network of direct                 lounge, providing greater circulation             development that has transformed
international flights grows, so the need        space and an improved retail and catering         travel options to and from Scotland in
for passengers to connect via hub airports      offering for passengers. In December 2006,        recent years.
in the south diminishes. Consequently,          Aberdeen City Council granted permission
domestic traffic fell slightly as more people   for a 300 metre runway extension.                 BAA is also committed to working with
opted to fly direct to and from Scotland.       The initial design work is now underway,          the Scottish Government, local
Glasgow Airport was the busiest in              with the first phase of the project due for       authorities, Visit Scotland and Glasgow
Scotland with 8.8 million passengers in         completion in 2009. A £5 million expansion        City Marketing Bureau to ensure that
2006/07, an increase of 0.5% on the             of the international arrivals hall is scheduled   Scotland continues to harness the
previous year. At Edinburgh, passenger          for completion at the same time, boosting         opportunities afforded by a strong
numbers grew to 8.6 million, a rise of 2%.      Aberdeen’s credentials as a major                 international route network.
International traffic to and from the capital   international gateway.
grew by more than 20%. Meanwhile, at
Aberdeen, passenger numbers passed the
three million mark. By year end, passenger
numbers had increased by 10.6% to
3.3 million, confirming Aberdeen’s status
as the fastest growing of BAA’s seven
UK airports.

                                                                                    BAA Scotland Corporate Responsibility Report 2006/07 | 9
The local environment

The local environment                                                                        Our performance

                                                                                             In December 2006, the UK Government
                                                                                             published a review of the progress made
                                                                                             by airports around the UK in implementing
                                                                                             the 2003 White Paper, The Future of
                                                                                             Air Transport. The progress report
Aviation has significant economic and lifestyle benefits which need to be                    showed BAA Scotland is making good
balanced with the environmental impacts at a global and local level.                         progress delivering the Government’s
BAA works hard to mitigate the negative impacts of its operations and                        White Paper objectives. It also cited
that of airlines, on the local environment.                                                  Glasgow and Edinburgh airports as
                                                                                             examples of good practice for their action
Noise                                          Our approach                                  to control and mitigate noise exposure
                                                                                             through well established noise and track
The issue                                      Our objective is to work with our             keeping systems.
                                               communities and airlines to find a balance
Aircraft noise is an important issue for       that promotes the social and economic         At Aberdeen, the number of noise
local communities, and one that we see         benefits of aviation, while addressing –      complaints rose from 72 in 2005 to 82
as a priority. Noise is created largely from   wherever possible – the needs of our          in 2006/07. However, during the same
aircraft approaching or taking off from        neighbours. We listen closely to              period, the number of aircraft movements
airports and ground noise such as taxiing      comments from our local communities           (each landing or departure) increased by
aircraft or engine testing. Considerable       and investigate and respond to all noise      5% from 112,527 to 118,836.
progress has been made in reducing             complaints. In the event that an aircraft
individual aircraft noise in the last 30       breaches agreed noise thresholds, BAA         At Edinburgh, there were 279 noise
years and today’s aircraft are significantly   will fine the airline, with the proceeds      complaints during the year. This was a
quieter. Our ongoing objective is to gain      donated to a community fund. BAA also         significant increase on the 131 complaints
the trust of our stakeholders by               provides financial incentives in order to     received in 2005/06, though analysis of
demonstrating that we are using best           encourage airlines to operate cleaner,        historic monthly data indicates the rise
practicable means to minimise existing         quieter aircraft, while penalising aircraft   was in part attributable to the airport’s
aircraft noise impacts.                        which are old, less fuel efficient and        introduction of a 24 hour free phone
                                               generate noise levels significantly higher    noise enquiry line in early 2006. Aircraft
                                               than modern aircraft. At an industry level,   movements increased very slightly from
                                               BAA is also working with airlines and         127,120 in 2005/06 to 127,297 in 2006/07.
                                               manufacturers to design quieter, cleaner
                                               engines. In addition, to support our night    At Glasgow, a noise enquiry line was
                                               operations, our airports voluntarily adopt    introduced in January 2007 to
                                               the UK Government’s night-time noise          complement the airport’s existing
                                               restrictions which were introduced to         package of noise mitigation measures.
                                               curb noise levels at much larger airports,    The commitment to establish this facility
                                               such as Heathrow, Gatwick, Stansted           was outlined in the airport’s master plan,
                                               and Manchester.                               published in October 2006.

                                               70%
                                               The more fuel efficient modern aircraft
                                               are compared to 40 years ago

10 | BAA Scotland Corporate Responsibility Report 2006/07
Glasgow Airport received 51 complaints        noise levels) based upon 2006 actual
in 2006/07, compared with 28 during the       flight numbers. We will also undertake
previous year. In the same period, aircraft   a revision of all existing noise protocols
movements decreased marginally from           to reflect current air transport movements
110,906 in 2005/06 to 110,086.                at the airports.

We have made it easier for our local          Our plans include a commitment to
communities to report noise issues            work with our air traffic service provider,
through the introduction of dedicated         National Air Traffic Services, to bring
telephone lines at Edinburgh and              about the introduction of continuous
Glasgow. Although the number of               descent approaches (CDA) to our airports.
complaints has risen, the ratio is very low   CDA is an important flying technique for
compared to total aircraft movements at       reducing the noise of approaching aircraft
each of our three airports. It is also        close to airports. It involves starting a
important to remember that not all            continuous steady descent from 6,000
complaints and enquiries we receive are       feet, or higher, rather than following a
attributable to aircraft using our airports   number of short descents to set ‘cleared’
– for example, some complaints relate to      altitudes and joining the three degrees
private and military flight operations, as    approach glide-slope from below, as is
well as police helicopter movements.          normally required by Air Traffic Control.

Our plans                                     A revised noise strategy document will
                                              be publicised.
On 1 April 2007, we introduced new
financial measures to help control noise
from aircraft. This included a doubling of
the fines for aircraft that breach agreed
noise thresholds – the surcharge for
breaches up to three decibels is now
£1,000, and £2,000 for any breach of
three decibels or over. We also increased
the surcharge for Chapter 3 aircraft,
which are amongst the oldest and
noisiest. These measures help encourage
airlines to invest in new, modern aircraft.

During 2007, we will create new noise
footprint maps to meet our obligations
under the Environmental Noise
(Scotland) Regulations 2006, as well as
commissioning a new set of 16 hour LEQ
noise contours (which depict average

                                                                             BAA Scotland Corporate Responsibility Report 2006/07 | 11
The local environment

Surface access                                airport to drop-off and pick-up                transport network around the airport.
                                              passengers). We also encourage a shift         A second taxi concession was appointed
The issue                                     towards the use of parking facilities and,     to meet growing demand particularly
                                              more recently, shared trips through use of     from business travellers. Whilst taxis are
Traffic volumes to and from airports can      either flexible (demand responsive) bus        not the most sustainable form of
contribute to congestion because of the       services or shared taxis. We are in the        transport, we are working to make taxi
large numbers of passengers, employees        process of relaunching staff car share         journeys as efficient as possible through
and supplier vehicles accessing them on a     schemes and investigating a range of           the introduction of taxi sharing.
daily basis. This congestion causes greater   incentives to encourage staff to use public
carbon (CO2) emissions and has a              transport or consider alternatives, such       BAA Aberdeen’s surface access strategy,
negative impact on local air quality.         as cycling.                                    2002 to 2007, sought to increase the
                                                                                             percentage of passengers using public
The airport master plans, published in        In 2006, we reached an agreement with          transport from 4.5% to 7%. During
2006, set out at a strategic level our        the then Scottish Executive to enable the      2006/07, according to the BAA retail
commitment to improving surface access        construction of the Edinburgh and              profiler survey, the percentage of people
to our airports in line with the goals set    Glasgow Airport Rail Links, (EARL) and         using public transport actually increased
out in the UK Government’s 2003               (GARL). We are actively working with           to 6.2%. Therefore this target is on course
Aviation White Paper.                         Scottish Partnership for Transport to          to be achieved by the end of 2007. A new
                                              progress the GARL project – now set for        strategy for the period 2008 to 2012
Our approach                                  completion in 2011 – and continue to           will set out proposals to further increase
                                              work with the Scottish Government on           public transport use and will include
Our primary objectives are to increase        their planned replacement to EARL. We          improved links between the airport
passenger and employee use of public          continue to work with the promoter of          and Dyce Rail Station.
transport and to reduce our impacts           the Edinburgh Airport Tram Link, TiE,
on the road networks surrounding              to help ensure the successful delivery of      A number of new bus services were
our airports.                                 that project.                                  introduced at Edinburgh Airport during
                                                                                             2006/07, including a night service (Lothian
Local stakeholders, including transport       Our performance                                Buses N22) providing a connection to the
users, providers, regional transport                                                         airport throughout the night to and from
partnerships and local authorities, play      At Aberdeen, we work closely with              the city centre and Leith, and a direct
a key role in developing, promoting           transport providers to develop new bus         service to Fife every 30 minutes
and operating public transport services       routes and increase the frequency of           (Stagecoach 747). We also supported the
around each airport. We work with             existing services. The airport is a founding   introduction of the new ‘Edinburgh
stakeholders through individual airport       member of the Dyce Transport                   Shuttle’ bus service offering a door to door
transport forums to agree strategies          Management Organisation (DTMO),                connection to city centre destinations and
and targets to increase the use and           which introduced a new bus service (the        worked with Horsburgh Coaches to deliver
frequency of public transport. They           777 Kirkhill Commuter) operating at peak       a new bus service (777) linking the airport
were instrumental in the production of        periods from residential areas with large      with West Lothian.
our surface access strategies and will        concentrations of airport employees to
support us as we pursue these new             the airport and nearby industrial estates.     Changes to the airport forecourt were
targets. Where the use of public transport    The Aberdeen Airport Business                  implemented during 2006 to prioritise
is not a feasible option for passengers,      Development Forum chaired by our               public transport vehicles to the inner
our strategies aim to reduce the              Managing Director has, as part of its          forecourt, with all private car drop-offs
proportion of ‘kiss and fly’ journeys         remit, the task of promoting and               relegated to an outer forecourt area.
(where friends and family drive to the        supporting improvements to the public

12 | BAA Scotland Corporate Responsibility Report 2006/07
Public transport mode share 2006/07
                                            (years)
                                                    Glasgow         Edinburgh   – Aberdeen
                                                      25

                                                      20

                                                      15

                                            years     10

                                                        5

                                                        0
                                                              Apr-Jun 06               Jul-Sep 06           Oct-Dec 06              Jan-Mar 07

In February 2007, Edinburgh Airport         environment for passengers. These                        Our plans
published its surface access strategy       changes helped increase the percentage
detailing action to further increase the    of people using public transport to 9.4%                 During this year, our key focus will be the
already high number of passengers using     for 2006/07.                                             delivery of our new surface access
public transport, and reduce private                                                                 strategies, a process already underway at
vehicle movements. The strategy aims to     During 2006/07, Arriva Scotland West                     Edinburgh. In partnership with local
increase the proportion of public           introduced new services (Arriva 6/6B)                    authorities, the Scottish Government, and
transport use from its current level of     connecting the airport with the nearby                   local transport agencies, we will work –
22.8% (moving annual average) – one of      towns of Johnstone, Linwood and Bridge                   across our three airports – to increase the
the highest of any regional UK airports –   of Weir. It offers an important link for                 proportion of passengers accessing our
to 27% by 2011.                             passengers and airport employees.                        airports by public transport and deliver a
                                                                                                     wider choice of transport options for staff
Initiatives include a possible new taxi     In January 2007, the Scottish Parliament                 and passengers, including bus, tram and
sharing scheme, real time bus information   voted in favour of proposals for a                       rail services.
and a staff car share scheme.               Glasgow Airport Rail Link (GARL)
                                            between the airport and Glasgow Central
Like Edinburgh, Glasgow Airport took        Station. The new Scottish Government
steps in 2006 to prioritise public          has committed its support to GARL and
transport, moving buses and licensed        the project remains on course for
taxis to the inner forecourt, adjacent to   completion in 2011.
the terminal and creating a new drop-off
zone for private vehicles in the outer
forecourt. The move has resulted in a
noticeable drop in congestion in the
forecourt area and a cleaner, safer

                                                                                      BAA Scotland Corporate Responsibility Report 2006/07 | 13
The local environment

Energy use                                      Our performance                                Total CO2 emissions from fixed sources
                                                                                               in 2006/07 (Tonnes)
The issue                                       BAA’s CO2 targets are based on future
                                                infrastructure development needs and

                                                                                                                16,777
Burning fossil fuel in flight is the aviation   forecast passenger growth. Throughout
industry’s biggest environmental impact.        the year, each airport sets targets to
However, it is the ground level carbon          reduce gas and electricity use within the
footprint of our airports over which we         terminal and associated infrastructure,

                                                                                                       11,762
have some influence, even though this is        including car parks and street lighting.
a small fraction of the total. Excluding the
fuel burnt by aircraft in the process of        Empowering staff to make a difference

                                                                                               7,175
landing or taking off, ground level             has also been critical – for example,
greenhouse gas emissions are caused             security teams turning off baggage x-ray                                 • Actual 2006-07
mostly by aircraft taxiing, airport vehicles,   machines during non-operational periods,                                 • Target 2006-07

                                                                                                       12,343
                                                                                                                18,614
                                                                                                                         A Aberdeen

                                                                                               7,157
vehicles used by passengers and staff to        and airfield operations teams liaising with                              B Edinburgh
get to and from the airport, and energy         National Air Traffic Services to operate                                 C Glasgow
use on the airport campus.                      optimum lighting levels on the runway.          A       B        C

Our approach                                    Aberdeen Airport reduced its total CO2
                                                emissions by 95 tonnes in 2006-7 against
Our primary focus to date has been on           the previous year’s performance, despite       Our plans
reducing the CO2 emissions attributable         the challenge of 10.6% passenger
to our use of energy to run our buildings       growth. Total emissions for the year were      Ongoing infrastructure development at
and other infrastructure.                       7,175 tonnes, just above the target of         the airports will inevitably increase the
                                                7,157 tonnes.                                  demands for electricity and gas, and will
By 2010, BAA Limited is committed to                                                           further stretch our CO2 reduction targets.
delivering a 15% reduction in absolute          Edinburgh Airport’s total CO2 emissions        If we are to meet those targets, it is vital
CO2 emissions from energy use compared          for 2006-7 were 11,762 tonnes. This            that we build energy efficient measures
to 1990 levels. At BAA Scotland, we play        was 5% better than our target for the          into all maintenance, repair and
an important part in achieving these            year. This was delivered through an            construction projects.
reductions. By 2020 BAA, as a whole, is         investment in variable speed drives on
aiming for a 30% reduction in CO2               the building chillers, the installation of     Beyond 2010, we are working towards
emissions from our fixed assets compared        back-end valves on the boilers and             the overall BAA strategy of reducing CO2
to 1990.                                        several changes to make the building           to 30% below 1990 levels by 2020.
                                                management system more efficient.
                                                Within the terminal, the lighting system       As a step towards delivering these
                                                has been adjusted to make maximum use          targets, we are developing site-wide
                                                of natural light in line with changes in the   energy reduction strategies across our
                                                seasons. We also carried out trials in the     three Scottish airports.
                                                multi-storey car park, altering the lighting
                                                system depending on capacity.

                                                During 2006/07, Glasgow Airport’s total
                                                CO2 emissions were 16,777 tonnes, almost
                                                11% better than the target and 634
                                                tonnes less than the previous year. See
                                                the case study opposite for information
                                                on how this target was accomplished.

14 | BAA Scotland Corporate Responsibility Report 2006/07
Case study: Energy savers

During 2006/07, Glasgow Airport sought to
engage staff at all levels and across all
departments on the issue of energy
consumption. A Service Improvement Program
(SIP) event involving BAA staff members was
held to explore the issue of climate change and
suggests ways in which the airport could play its
part by reducing gas and electricity use. The
cross campus event provided information on
energy use to airport staff, our business partners
and passengers, and was supported by a range
of public and private sector bodies. As a direct
result of the campaign, energy champions were
appointed from each department to drive the
environmental message forward.

We will prepare an action plan to reduce
emissions associated with ground
operations by working with airline
partners and handling companies and
the implementation of our airport surface
access strategies will reduce vehicle
emissions on our sites.

We have committed to offset emissions
from the business flights of our
employees since 1 December 2006. We
are measuring mileage and estimating the
consequent emissions as an interim
measure while reviewing which type of
offset to purchase. We are assessing the
best system for recording our business
road mileage with a view to offsetting
that impact in future.

At Glasgow, as part of the major extension
of the terminal building set for completion
in Autumn 2008, we will invest in energy
efficient equipment that will help the
airport to meet its CO2 targets.

                                                     BAA Scotland Corporate Responsibility Report 2006/07 | 15
The local environment

Air quality                                   direct control. Our objectives are to         Our plans
                                              achieve industry good practice in airport
The issue                                     air quality management and to work with       The results of the study are expected to
                                              local authorities and communities to          be published in late 2007 and the results
Air quality is an issue of concern both       ensure we achieve the objectives and          will be shared with relevant local
locally and nationally. Airport operations    targets of the Government’s air quality       authorities. This report will identify areas
lead to a variety of emissions which affect   strategy.                                     where action is needed to improve air
local air quality – aircraft and road                                                       quality and will help inform our future
vehicles at and around our airports emit a    Our performance                               strategies going forward.
number of pollutants, particularly
nitrogen dioxide (NO2) and fine particles     In order to better understand the air
(PM10). The UK Government and Devolved        quality around our three Scottish airports,
Administrations have recently published       the target for 2006/07 was to carry out
their revised air quality strategy, which     an air quality study. The aim of this study
has the primary objective of access to        was to build on an earlier study in 2004
outdoor air without significant risk to       and to identify if the remodelling of the
human health.                                 forecourts at Glasgow and Edinburgh
                                              airports had created any impact on air
Our approach                                  quality. Work on the study began in
                                              December 2006 and involved six months
To manage air quality, we address the         of monitoring with diffusion tubes placed
emissions for which we are responsible        at various locations around each airport.
and work in partnership with other
airport users, such as airlines, to reduce
emissions over which we do not have

16 | BAA Scotland Corporate Responsibility Report 2006/07
Waste                                           selection of goods. Our focus then moves       Our plans
                                                to treatment of the waste stream,
The issue                                       encouraging re-use, recycling, re-             Increasing our recycling, and reducing the
                                                processing and composting.                     amount of waste that goes to landfill, will
There is growing focus on waste                                                                again be a key focus area in the year
management performance in the UK and            Our performance                                ahead. We will continue to improve
Scotland. There is an urgent need to                                                           awareness and educate our employees
reduce the volume of waste going to             The total volume of our managed waste          and our tenants on the importance of
landfill, partly related to limited capacity,   stream in 2006/07 was 5,095 tonnes, a          effective waste management.
but also because the UK and Scotland are        decrease of 3.8% compared with the
not fully realising their potential to          previous year.                                 At each of our three airports, we
increase the recycling of waste materials.                                                     are aiming to achieve a general
                                                At Aberdeen Airport, total managed             waste recycling rate of 30% by
Waste is generated from a number of             waste was 506 tonnes in 2006/07, an            31 December 2008.
sources at the airports, notably from           increase of 10% on 2005/06. This
aircraft, catering, offices, shops,             increase was attributable to the strong        We are working with our current waste
construction as well as the maintenance         passenger growth experienced at                contractor to address the recent decrease
activities carried out. BAA’s activities        Aberdeen and equates to 0.19kg of              in recycling rates and to assess the
generate only about 10% of each                 waste per passenger. Disappointingly, the      viability of new technologies such as
airport’s total waste.                          level of recycling fell from 28.9% in          material recycling facilities and energy
                                                2005/06 to 24.7% in 2006/07.                   recovery plants. As part of this work, we
`The National Waste Plan´ establishes the                                                      are also looking to introduce a
direction of the Scottish Government’s          At Edinburgh Airport, total managed            transparent charging mechanism for
policies for sustainable waste                  waste was 1,874 tonnes in 2006/07, a           business partners to drive waste
management. It is built around a major          decrease of 12% on the previous year.          minimisation and recycling performance.
commitment of funding by the                    This equates to 0.22kg of waste per
Government to transform Scotland’s              passenger. The recycling rate fell to 21%
record on waste reduction, recycling,           in 2006/07 down from 24% in 2005/06.
composting and recovery.
                                                The volume of managed waste also
Our approach                                    decreased at Glasgow Airport to 2,715
                                                tonnes during 2006/07, down marginally
We manage around 5,000 tonnes of                from 2,733 tonnes in 2005/06. Waste per
airport waste in Scotland each year,            passenger remained steady at 0.306kg,
excluding the waste from our own airport        though in common with Aberdeen and
construction and refurbishment                  Edinburgh Airports, the recycling rate fell
programme. Our overall aim is to mitigate       to 19.9% in 2006/07 compared with
the growth in the cost of waste                 23.6% in 2005/06. The major contributor
management to the business by ensuring          to the marked decrease in recycling was
a responsible approach to airport waste,        the additional security restrictions
reflecting national and local external          following the August 2006 security alert.
sustainability objectives. Working on the       This led to the widespread confiscation
principal of the waste hierarchy – reduce,      and disposal of items that were no longer
recycle, re-use – our first priority is to      allowed in hand baggage, such as liquids,
reduce the amount of waste through              creams and gels.
improved efficiency and more thoughtful

                                                                                BAA Scotland Corporate Responsibility Report 2006/07 | 17
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