Corporate Social Responsibility Report 2010

Comments

Transcription

Corporate Social Responsibility Report 2010
OUR JOURNEY
Corporate Social Responsibility Report 2010
HH Sheikh Khalifa bin Zayed Al Nahyan
President of the UAE and the Ruler of Abu Dhabi
HH General Sheikh Mohamed bin Zayed Al Nahyan
Crown Prince of Abu Dhabi and Deputy Supreme
Commander of the Armed Forces of the UAE
Report parameters
This report is Etihad Airways’ first report on its
Corporate Social Responsibility performance.
In this document, we outline our policies with regard
to the four core areas of our social responsibility efforts
- the environment, the workplace, our community and
our charitable efforts – and we report on our activities
and results in each of these areas.
The formal reporting period is from 1 January 2010 to
31 December 2010; however, as this is our first report,
there are a number of elements of our airline’s eightyear history that we also cover.
Etihad has no subsidiaries on which to report; nor do
we have joint ventures on which it would be relevant
to report.
How we have defined this report’s content
Our CSR team members conducted a series of
workshops and stakeholder engagement exercises
(described in the report) to help define the scope of the
report.
Throughout this process, we used the Global Reporting
Initiative (GRI) frameworks as a guide. We have
recognised a number of principles in doing so:
• Scope: The report aims to cover all relevant aspects of our operations, in the air and on the ground. In this first report, our main focus for the on-the-ground section is the hub of our operations, in Abu Dhabi.
• Materiality: We believe the report’s scope covers the major issues that are recognised as important by our internal and external stakeholders.
• Data collection and publication: We have aimed for accuracy in collection of all relevant data, and we aim to be as transparent as commercial restrictions allow in publishing such data.
• Subsidiaries / joint ventures etc: This report covers the operations of Etihad Airways.
• Reporting cycle: Our intention is to report on an annual basis.
This report has not been externally assured.
For further information on Etihad’s CSR activities, or for
questions on this report, please contact: [email protected]
2
Etihad Airways CSR Report 2010
CONTENTS
From the Chief Executive Officer 4 | Etihad today 6 | Sustainability vision 8
Corporate social responsibility at Etihad Airways in 2010 9 | Stakeholders 10 |Together 12
Together Greener 14 | Growing Together 22 | Working Together 26 | Giving Together 30
Corporate governance 34 |Global Reporting Initiative 36
From the Chief Executive Officer
Welcome to the first Etihad Airways Corporate Social
Responsibility Report.
Etihad is a global ambassador for the Emirate of
Abu Dhabi, and one of its most visible brands in
the international arena. That places a heightened
responsibility on our business to engender and promote
the government’s well-established sustainability agenda,
which affords tremendous value to:
• The preservation of the Emirate’s cultural traditions and natural environment;
• Support for those suffering the effects of disease, poverty or natural disaster around the world;
• The wellbeing and future prospects of the Emirati people and society, and
• The diversification of Abu Dhabi’s economy to be less reliant on hydrocarbons and equipped to prosper in an increasingly energy-scarce world.
Looking back on just our seventh year of operation, we
have grown to this point rapidly while maintaining a strong
focus on our social and environmental impacts, which we
see as inextricably linked with our financial sustainability.
The safety and wellbeing of our customers and employees
is, at all times, our greatest concern. We allocate
enormous resources to maintaining the highest levels of
flying safety and we provide state-of-the-art health and
wellbeing facilities to our more than 8,000 staff members
and their families.
We are a major employer, directly creating opportunities
for employees and their families from more than 120
countries, and indirectly generating thousands of jobs
across the UAE and our network.
The airline gives generously to disaster relief efforts and
third-world education initiatives while our employees
also give generously of their own time and resources to
those less fortunate.
Finally, as a driver of tourism to Abu Dhabi we play a
critical role in promoting Abu Dhabi’s rich culture and
heritage.
Our Emiratisation program is creating a new and
indigenous generation of aviation professionals. They
receive the industry’s best training, are exposed to all
facets of the airline business, are equipped to lead Etihad
Airways into its very bright future, and are well-placed to
pass on their skills and experiences to future generations
of UAE nationals.
The publication of this report is a formalisation of Etihad’s
suite of sustainability programs under one banner. This first
report focuses on our efforts to date. We are committed
to continued an open reporting on an annual basis from
now on.
I look forward to a continuing and open dialogue with
our stakeholders.
We operate the newest, most environmentally efficient
aircraft in the skies, while our operations teams work
tirelessly to reduce the airline’s fuel burn and emissions
and to identify greener suppliers and partners.
We are founding members of the Masdar Institute’s
Sustainable Bioenergy Research Consortium in Abu Dhabi,
providing substantial financial and in kind contributions in
support of research into the use of salt water tolerant plants
as the basis for alternative aviation fuels.
4
Etihad Airways CSR Report 2010
James Hogan
Etihad Airways CSR Report 2010
5
Etihad development
Etihad today
Etihad Airways, the national airline of the United Arab
Emirates, is based in its capital Abu Dhabi. Etihad was set
up by government decree to be a key driver of the Emirate’s
economic diversification and growth program, outlined
in the Abu Dhabi 2030 Plan, and is wholly owned by the
government of Abu Dhabi.
From 2003 to 2006, Etihad Airways grew faster than any
other airline in commercial aviation history, according to a
study by Booz & Co. As the three-year start up phase came
to an end, the Board appointed a new management team to
consolidate the airline’s growth and align its development
still more closely with the Emirate’s economic aspirations and
development strategy.
We currently serve 72 key business and leisure destinations
in Africa, Asia, Australia, Europe, the Middle East and North
America, operating a young, safe and fuel-efficient fleet of 61
aircraft comprising five fleet types.
With 68 per cent of destinations served by at least daily
frequencies, Etihad carried 7.3 million passengers in 2010
with an average seat load factor of 74 per cent. The network is
further enhanced through the airline’s 32 code-share partners.
The airline’s average on-time performance is 87 per cent with
a track record of 99 per cent dispatch reliability.
In 2010 our revenues rose to USD 2.95 billion. In 2011,
we expect continued double-digit revenue growth to reach
break-even; a remarkable achievement in just eight years.
Etihad is safety-certified by the International Airline Transport
Association’s (IATA) and the General Civil Aviation Authority
(GCAA) in the UAE.
In July 2008, we announced a then record-breaking order
for up to 205 new aircraft at the Farnborough International
Airshow, including firm orders for 55 Airbus and 45 Boeing
aircraft. The transaction remains one of the largest in
commercial aviation history and will allow Etihad to meet
long-term demand for the period from 2011 to 2020.
Today, Etihad is a global business contributing in the region of
AED 25.1 billion (USD 6.8 billion) to the economy, according
to a study conducted by Oxford Economics in 2010.
To deliver this performance, Etihad has a skilled management
team and a well defined organisational structure supported by
8,083 employees, representing 123 nationalities.
Etihad operates under a rigorous corporate governance
structure. The Board comprises leading figures from Abu
Dhabi’s business community. Our Board members are HH
Sheikh Hamed bin Zayed Al Nahyan (Chairman), HH Sheikh
Khaled bin Zayed Al Nahyan (Vice Chairman), HE Ahmed Ali
Al Sayegh, HE Mohammed Mubarak Fadel Al Mazrouei, HE
Hamad Abdullah Al Shamsi, HE Mubarak Hamad Al Muhairi
and HE Khalifa Sultan Al Suwaidi.
Etihad Airways aims to fly 25 million passengers a year to at
least 100 destinations by 2020.
2003-2004
2006-2007
2008-2009
2011
AIRLINE START-UP
COMMERCIAL MANDATE
LARGE AIRCRAFT ORDER
SELF-SUSTAINABLE BUSINESS
•Network/Fleet
•Capital plan to accommodate fleet order
•Linkage to Abu Dhabi Plan
•Major hiring ramp up
•Change in leadership structure
•Brand
•Product and service
•Network reach/connectivity
•Strong growth
•Revenue maximisation
•Cost minimisation
•Pay for performance
Operational Mandate
•Financial
•Reporting
•Mitigate financial risk
•Start up work force
•Governance
Current fleet
Aircraft on order
at December 2010
at December 2010*
6x B777-300ER
11x A340-500/600
19x A330-200/300
Etihad Airways CSR Report 2010
10x B777
25x A350
15x A319/320
35x B787
2x MD11F
3x A330
2x A330-200F
20x A320
2x A300-600F
6
10x A380
* Firm deliveries, excluding 105 options and purchase rights
Etihad Airways CSR Report 2010
7
Sustainability vision
To be recognised as a sustainable
airline that operates to the highest
standards of safety, with integrity
and transparency.
Objectives
• Drive individual and corporate awareness of the necessity of living and working sustainably.
• Develop capability and capacity in Etihad to manage the ongoing sustainability agenda.
• Meaningfully and regularly consult with and engage all our stakeholders at the hub and across the network to:
–– ascertain their expectations and needs, and
–– implement initiatives that show a genuine commitment to meet those expectations;
Sustainability mission
Social responsibility and sustainability will be at the
core of our business.
We will ensure that sustainability is integrated and
integral to our day-to-day business operations and
practices, and is embedded in every layer of business
thinking, planning and execution. All material financial,
environmental and social impacts will be accounted for
and measured and managed across our operations in
line with international best practice.
Corporate social responsibility
at Etihad Airways in 2010
• Set and manage meaningful targets to improve continuously our sustainability performance based on globally identified, material criteria, our shareholder mandate and stakeholder expectations.
• Create tools and initiatives that allow our core stakeholders to participate: for example, staff participation (training & reward); customer participation (voluntary carbon offset); and supplier participation (public/website recognition of adherence to Etihad policies).
Etihad acknowledges its position as an integral part
of society and its potential to have both positive
and negative impacts on the communities in which
it operates. Aligned with the greater ambitions
and vision of the Emirate of Abu Dhabi, the CSR
and sustainability policy and supporting strategy
is designed to ensure our compliance with all
applicable international and local regulations and
standards; mitigate any potential risks, and enhance
the airline’s reputation through the implementation
of industry best practice in the fields of sustainability
and social responsibility.
• Measure and report honestly and transparently our performance in identified and material criteria.
• Promote our CSR activity through the full range of traditional and new communications channels and in effective reporting.
• Continue to align Etihad CSR and sustainability policy and activity with the objectives in the Abu Dhabi 2030 Plan.
8
Etihad Airways CSR Report 2010
Etihad Airways CSR Report 2010
9
Stakeholders
Active and ongoing stakeholder engagement with the
broadest range of stakeholders is essential to our CSR strategy
and program.
During 2010, our CSR team members conducted a series of
workshops and stakeholder engagement exercises to identify
our major stakeholders, to begin to understand their concerns
and interests, and to help define the scope of the report.
These exercises identified stakeholder audiences which we
believed had an interest in and/or a necessity to know about
Etihad’s CSR activities. They include:
• Employees
• Our shareholder
• Customers
• Our supply chain, in Abu Dhabi and internationally
• Our business partners
• The local community in Abu Dhabi
• National and international regulatory bodies
• The wider air travel industry
• Channels which reach these audiences, such as the media and non-government organisations
We conducted our first focus groups in June 2010, covering
employees and our customers.
• Corporate social responsibility
• Environment
• Alliance/codeshare partners
• Manufacturers
• Travel trade
• Abu Dhabi service providers
• Abu Dhabi hub operators
• Financial institutions
The first groups included employees representing all
disciplines and levels of staff in London, Mumbai and Abu
Dhabi – destinations selected for their importance on the
network and for their cultural diversity. We also held one
group session with frequent Etihad guests in Abu Dhabi.
The aim of these first discussions was to identify priority
areas related to the environment, the workplace, and the
community, and to further investigate the best ways of
communicating information about CSR activities.
Key issues raised included:
• A definition of the scope of the airline’s CSR efforts and activities
• The importance of environmental performance in our operations
• The desire for employee engagement at all levels
• The importance of our contribution to the national and local communities in Abu Dhabi
Further activities to engage with external stakeholders,
including the Board of Directors, the Abu Dhabi
government, the local community and passengers.
The outcomes of our ongoing stakeholder dialogue will
be used in shaping and driving our CSR and sustainability
agenda.
SOCIETY
PARTNERSHIPS
GUESTS
SHAREHOLDERS
ETIHAD
• First class customers
• Business class customers
• Economy class customers
• Transfer customers
• Family group
• Worker traffic
• Ad hoc charters
• Board members
• His Highness the Crown Prince of Abu Dhabi
OUR
PEOPLE
Stakeholder relationships
10
Etihad Airways CSR Report 2010
Etihad Airways CSR Report 2010
11
We believe that CSR is a collaborative process, and one that will only succeed in
partnership with our broad range of internal and external stakeholders. This is why we
have called our CSR and sustainability program Together.
Together provides a four-part policy and communications framework for engagement with
all our stakeholders - our staff, the local community and economy, the environment, and
the greater communities across our global network.
• Together Greener
• Growing Together
• Working Together
• Giving Together
In these four areas, it is our aim to work collaboratively in:
• Identifying and developing awareness of the issues and challenges;
• Focusing action to address these challenges; and
• Making a difference, through measurable improvement, year on year.
Focusing on priorities
As a leading brand and influential UAE business, and part of an industry with unique
environmental and sustainability challenges, it is imperative that our CSR strategy is able
to focus on areas of most concern. This needs to take account of opportunities as well as
risks, challenges and impacts. With this in mind, materiality is high on the agenda and our
strategic programs allow us to look at issues under four areas, and focus on these while
continually reviewing the appropriateness of our actions.
12
Etihad Airways CSR Report 2010
Etihad Airways CSR Report 2010
13
Etihad’s environmental strategy and program is implemented in conjunction with industry partners, suppliers and customers.
While focused primarily on measuring, managing and minimising the environmental impact of our operations, it is linked to
broader sustainability goals and includes proactive initiatives to develop cleaner technologies such as biofuels; to encourage
environmental improvements across our supply chain; the implement a comprehensive waste management program; and
initiatives to engage our customers in positive environmental action.
Carbon management
Etihad Airways Environment Policy
As the national airline of the United Arab Emirates, wholly
owned by the government of Abu Dhabi, Etihad Airways is
an important driver of economic growth and diversification
in the country.
While operating under a strict commercial mandate from
our shareholder, we recognise our responsibility to the
community and are committed to mitigating the impact of
our operations on the environment. To achieve this Etihad
pledges to:
• Abide by all national and international environmental legislation that applies to our business;
• Put in place the measurement systems and working procedures to allow us to track and modify our environmental performance;
• Innovate to reduce our dependency on traditional forms of energy and aviation fuel;
• Train our staff on the importance of environmental protection in our business operations and on their individual responsibilities; and
• Communicate and report openly and transparently on our environmental performance to all our stakeholders including employees, customers, suppliers and partners.
We hold it as a fundamental principle that true success
requires the engagement and participation of many different
partners, within the markets in which we operate and across
the air travel industry as a whole, and therefore aim to:
• Encourage collaborative action and play an active role in industry debate on environmental issues; and
• Work with industry bodies such as the International Civil Aviation Organization (ICAO), the International Air Transport Association (IATA), the Arab Air Carriers Organisation (AACO) and with local government and non-
government partners on identifying issues and developing common solutions.
The environment is a joint responsibility and every member of our workforce has a duty of care to uphold this
policy, limit their individual impact on the environment, and
actively work to mitigate the potentially harmful impacts of
our business on the environment.
14
Etihad Airways CSR Report 2010
Aviation features more prominently in the environmental
debate than any other form of transport, despite the range
and depth of improvement that has been made by the
industry in the last 20 years. A key element of this success
has been the involvement of a broad range of partners in
seeking opportunities and implementing initiatives.
Whilst contributing just two per cent of the world’s manmade carbon emissions, significant attention is focused on
aviation’s contribution to the world’s carbon footprint. The
basis for this is the increasing global demand for air travel
with particularly heavy growth in developing economic
regions and in the growth of the low cost airline sector.
Demand for air travel has grown on average by five per
cent per annum over the past 30 years and airlines now
carry 2.2 billion passengers per year.
Measuring emissions and materiality
As a growing international airline, Etihad has many
activities and operations that affect and possibly impact
negatively upon the environment, most notably through
our aircraft operations but also from running our
supporting head office, outstation offices, call centres,
sales offices, and in the provision of ground transport
services for our staff and customers. We outsource many
of our essential services, including aircraft maintenance,
in-flight catering, ground handling and additional
transportation services.
When it comes to measuring our carbon footprint
associated with these activities, we need to ensure we do
this taking into account relevance, data completeness,
consistency, transparency and accuracy. These principles
are taken from the Greenhouse Gas (GHG) Protocol,
which provides comprehensive guidance on accounting
for and reporting on greenhouse gases.
The current scope of our carbon footprinting is based on
the direct operations of our aircraft, the electricity, chilled
and potable water for our head offices, and our other main
facility, Etihad Plaza, which comprises our staff housing
and facilities complex, including shops, banks, the
medical centre and gymnasium.
“Since 2006, we have
achieved a 19 per
cent improvement in
CO2 emissions per
passenger kilometre.”
James Hogan
Chief Executive Officer
Etihad Airways CSR Report 2010
15
In addition, we track fuel use on our own fleet of 40
vehicles, which range from saloon cars to 20-seater buses
used primarily for the transportation of our crew to and
from the airport. The nature of our business means that the
operation of our aircraft represents by far the most material
(relevant) aspect of our business, accounting for over 99
per cent of our measured carbon footprint.
The Protocol covers three types of emissions, defined as
Scope 1, Scope 2 and Scope 3.
As recommended under the GHG protocol we are
focused on those areas that are under our control and
are measurable. Other areas will be subject to controls,
through policies, procedures and best practice guidelines,
including the offices across our network.
Scope 3 – Emissions from other sources, including
outsourced transportation services, aircraft maintenance,
catering services and services provided by third parties.
Scope 1 – Direct emissions from burning fossil fuel, such
as jet fuel, gasoline and diesel.
Scope 2 – Indirect emissions such as those associated with
electricity and chilled water production.
The carbon emissions associated with material activities both in the air and on the ground are measured
according to multipliers available from suppliers and international data publications, such as the Greenhouse
Gas Protocol.
We continue to develop the scope of our greenhouse gas measurement and reporting, based on the principles
of the Protocol and ensuring that such activities are relevant within the scope of our operations. In particular
we are looking at potential ‘Scope 3’ activities, as defined by the Protocol, such as additional transportation
services and ground handing activities. While we outsource major activities such as aircraft catering and
maintenance services, we will work with these organisations to ensure environmental best practice.
Aircraft (1)
Conversion Factor
CO2 total (kg)
% Total
3.15 kg/CO2
4,504,022,226
99.7o%
(2)
10.4 kgCO2/gal
962,342
0.02%
Ground Vehicle (Diesel) (2)
12.2 kgCO2/gal
5,719,559
0.13%
0.863 kgCO2/kWh
1,215,852
0.03%
0.863 kgCO2/kWh
569,890
0.01%
0.674 kgCO2/tonne of cooling
2,937,504
0.06%
EY Plaza district cooling water (4)
0.674 kgCO2/tonne of cooling
2,207,080
0.05%
EY Complex potable water (5)
1.68 kgCO2/m3
137,021
≥0.01%
1.68 kgCO2/m3
4,949
≥0.01%
Ground vehicles (Petrol)
Scope 2
EY Complex electricity (3)
EY Plaza electricity
(3)
EY Complex district cooling water
EY Plaza potable water
(Excluding residential)
(5)
TOTAL CO2 emissions
(4)
Aircraft emissions are by far the most material environmental
factor for Etihad, accounting for 99.7 per cent of the airline’s
currently quantified carbon footprint.
We track the total carbon dioxide (CO2) emissions from
our aircraft operations and, to more realistically monitor
efficiency improvements, we track emissions per passenger
kilometre and per tonne kilometre on all routes. Our
comprehensive fuel measuring systems allow us to track and
report on specific routes, per aircraft type, or by region.
While the total emissions are growing in line with our
fleet expansion, the emissions per Revenue Passenger
Kilometre (RPK) show a clear downward trend since the
commencement of operations. This is influenced by measures
to improve operational efficiency, the introduction of more
efficient aircraft, technological improvements to our existing
fleet, and improved load factors.
Our carbon footprint
Scope 1
In the air
4,517,776,423
100.00%
Sources:
1. As per EU Emission Trading Scheme
2. Petrol and diesel: http://timeforchange.org/what-is-a-carbon-footprint-definition
3. Includes electricity used by heat pumps and electricity used by electric boilers.
Main source: http:// www.iea.org/Textbase/stats/electricitydata.asp?COUNTRY_CODE=AE
4.Estidama Credit RE-R1 Minimum Energy Performance : COP (Coefficient of Performance of 4.5 for District Cooling Plant)
5.Average benchmark data for desalination (http://www.ecobuild.co.uk/var/uploads/exhibitor/3862/pkwybghq5k.pdf)
These key areas of investment and technical and operational
controls have together led to a significant improvement
in fleet efficiency and, since 2006, a 19 per cent
improvement in CO2 emissions per passenger kilometre.
Investment
Investment plays an essential role in the sustainability
of aviation. Operating new and efficient aircraft directly
contributes to managing emissions and provides a long-term
win-win situation from both financial and environmental
perspectives. Etihad has invested substantially in the
development of its fleet and the current fleet has an average
aircraft age of less than four years, as compared to the global
industry average aircraft age of 13 years.
Introduction of a new aircraft can result in immediate and
substantial emissions reduction. The replacement of the
MD11 freighter with our new A330-200F freighter has
reduced carbon dioxide emissions. On the Abu Dhabi to
Frankfurt flight this has been calculated to result in an average
reduction of 14,800 kilograms of CO2 for the entire flight.
% improvement in CO2/RPK
Tonnes CO2
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
500
100
95
90
85
80
75
65
60
55
2006
2007
2008
2009
2010
Technology and operations
Initiatives such as weight reduction on aircraft,
implementing optimal fuel uplift, stringent engine washing
schedules, comprehensive maintenance programs and
making full use of the operational ability of our aircraft all
contribute to ensuring fuel efficient flights.
At Etihad:
• Using LIDO, our improved flight management system, an estimated 18,000 tonnes of fuel are saved annually, equating to a reduction of 56,000 tonnes of carbon dioxide. These savings are achieved as a result of shortened routes and improved flight fuel calculations.
• The ‘Permagard’ coating on all our aircraft reduces drag and has also led to wash water savings in the region of 10 million litres per year as a result of less frequent aircraft wash requirements.
Nitrous Oxide NOx
NOx is a local air pollutant and one of the gases emitted by
aircraft engines. Etihad tracks the NOx emissions associated
with the landing and take-off (LTO) cycles which cover
emissions below 3,000 feet. This can be done with a high
degree of accuracy using industry data provided by ICAO
for each engine type. Whilst our total NOx emissions have
increased in line with airline growth, we have achieved
a significant reduction in emissions per LTO cycle. As
we have introduced new aircraft into our fleet with latest
technology engines, we have seen a 41 per cent reduction
in NOx per LTO on average across our fleet since 2007.
Regulatory compliance - the European Union Emissions
Trading Scheme (EUETS)
Etihad has taken steps to ensure its compliance with the
requirements of the EU emissions trading scheme, which
requires the monitoring and verification of emissions and
traffic data for all our flights into and out of Europe. The
scheme also required Etihad to submit third party verified
emissions and tonne kilometre reports for 2010 to the UK
Environment Agency by the end of March 2011.
kg NOx/LTO
Tonnes NOx (<3,000ft)
50
45
40
35
30
25
20
15
10
5
900
800
700
600
500
400
300
200
100
2007
2008
2009
2010
*Passenger aircraft only
16
Etihad Airways CSR Report 2010
Etihad Airways CSR Report 2010
17
On the ground
Noise management
The company’s ground-based energy consumption
initiatives are focused on raising staff awareness and
encouraging energy saving initiatives throughout its
facilities. Green Office Champions are staff volunteers who
help to support and educate staff in best practices such
as recycling, switching off office equipment and lighting
when not needed, and using office resources wisely.
Whilst emissions concerns are high on our environmental
agenda, noise affects many communities that live close
to airports. The International Civil Aviation Organisation
(ICAO) developed a ‘balanced approach’ to control
noise for the industry that focuses on four key aspects
of noise management namely, reducing the noise at
source; controlling land use around airports to prevent
noise sensitive development; enforcing noise reducing
operational procedures for aircraft; and implementing
operational restrictions, such as banning noisier aircraft.
In terms of operational control, our young aircraft are all
in compliance with the ICAO Chapter 4 Noise Standards the highest noise standard currently imposed by ICAO on
new engines types.
Electricity consumption is measured and tracked at both
headquarters (inclusive of the Etihad Training Academy)
and the offices at Etihad Plaza. We use CO2 conversion
factors to track emissions associated with electricity use.
The total electricity consumption at Etihad Complex for the
year was 1.4 GWh, with a peak in July.
Most of the building’s energy use is from the fan coil units
and air handling units associated with the air-conditioning
and ventilation systems, and to a lesser extent, the
lighting system. The extensive IT and supporting electrical
equipment in the office areas and the simulators at the
Training Academy are also major contributors to energy
consumption. The high summer temperatures result in
significantly higher cooling water requirements with
almost 50 per cent more energy being consumed in the
hottest month compared to the coldest month.
Waste management
Internally, Etihad has implemented best practices to
reduce the amount of waste material sent to landfill with a
program in the head office complex to segregate plastics,
aluminium, paper and cardboard from the general waste
streams for recycling. The ground-based recycling program
will be extended to more Etihad facilities in 2011.
Working with Abu Dhabi Airports Company (ADAC)
and other airport partners, we are developing a series
The district cooling system is an energy intensive process
resulting in one of the highest energy requirements for our
ground facilities in Abu Dhabi.
Etihad Complex: 2010 Electricity consumption
Total KWh
Carbon emission kg
160,000
Etihad Complex: 2010 District cooling consumption
Total cooling tonne/hour
Carbon emission kg
A total of 731,850 kilograms of waste was collected during
2010. Of this, 2.2 per cent was recycled. In a typical
commercial office, paper waste would represent 50 per
cent of all waste generated. Our aim during 2011 is to
significantly increase the amount of recyclable material
segregated for recycling to at least 10 per cent of our total
waste.
Etihad co-chairs the waste management taskforce set
up by the Abu Dhabi Sustainability Group to improve
communication of waste management initiatives in
Abu Dhabi, driving best practice and the more effective
implementation of waste reduction practices across the
Emirate.
100,000
* Installed the water fittings in August 2010
Carbon emission kg
Total cubic metres
12,000
10,000
14,000
300,000
60,000
8,000
10,000
6,000
8,000
200,000
40,000
4,000
6,000
100,000
20,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
4,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2,000
2,000
Jan Feb Mar Apr May Jun
Etihad Plaza (office only): 2010 Electricity consumption
Total KWh
Carbon emission kg
Etihad Plaza office/residential: 2010 District cooling consumption
Total cooling tonne/hour
70,000
500,000
60,000
450,000
Carbon emission kg
400,000
50,000
350,000
40,000
10,000
Carbon emission kg
Total cubic metres
800
400
700
350
600
500
300
200
18
Etihad Airways CSR Report 2010
Cans
Card
board
Paper
100
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Plastic
400
100
50,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Etihad Complex: 2010 General waste production and recycling
450
150
100,000
• 5 per cent reduction in potable water consumption
at Etihad Complex
• 5 per cent reduction in energy consumption at Etihad
Complex and the Etihad Plaza offices
• 10 per cent reduction in the volume of waste to
landfill from Etihad Complex
• 10 per cent improvement in waste segregation and
recycling in Etihad Complex
• 10 per cent reduction in copy paper use in Etihad
Complex and Etihad Plaza offices
* Installed the water fittings in July 2010
200
150,000
Quantitative reduction targets for 2011
compared to 2010
Etihad Plaza Office: 2010 Water consumption
250
200,000
20,000
Jul Aug Sep Oct Nov Dec
300
250,000
30,000
Several ground-based initiatives were implemented towards
the end of 2009 and were supported by regular education
and awareness campaigns during 2010, including:
• Recycling of paper, aluminium cans, plastic bottles and printer cartridges throughout the Etihad Complex;
Etihad Complex: 2010 Water consumption
12,000
80,000
Education and communication
In 2010 the Abu Dhabi Environment Agency (EAD)
initiated an Emirate-wide program of fitting water-saving
devices to water taps in all domestic and commercial
premises. Etihad was one of the first Abu Dhabi
companies to support this initiative by instigating the early
16,000
400,000
We are able to calculate the carbon emissions associated with
the production of potable water using conversion factors from
the water providers.
We will continue to promote staff water use awareness and
will be looking to reduce water consumption further during
2011.
Water is a scare resource in the Gulf region, and the
widely used desalination method for the production of
drinkable water is a highly energy intensive process.
18,000
500,000
120,000
The existing water consumption monitoring programs in key
Etihad offices allow for the gathering of quantitative data
on water savings in order to monitor the effectiveness of the
program.
Immediately following the installation of the tap devices in
mid 2010, water usage dropped significantly. This may also
have been due to heightened staff awareness following the
water saving campaign.
Water consumption
600,000
140,000
implementation of water saving devices in Etihad offices and
residential premises. Over 14,000 devices were installed
between July and September 2010.
of tangible waste management initiatives for our airport
ground operations and in-flight services.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
General
waste
Recovery cost
28 AED
90 kg
112.25 AED
240 kg
1,303 AED
3,425 kg
3,620 AED
13,425 kg
731,850 kg
Etihad Airways CSR Report 2010
19
• Internal communications, including a new environment site on the staff intranet; office signage; regular features in Etihad Today, our monthly staff newsletter, and the launch of the Green Office Champions staff volunteer program;
• Replacement of disposable polystyrene cups with recyclable paper cups, and a reduction in the size of the annual order;
• Replacement of paper bags with bio-degradable plastic bags in Etihad shops;
• A Paperless Office Day, which resulted in a saving of more than 1,000 sheets of paper;
• Masdar City visit with Green Office Champions as part of a staff awareness campaign; and
• Support for the Emirates Environment Group beach cleanup campaign.
Biofuels
Abu Dhabi Environment Heath and Safety Management
System
The consortium is working on an integrated seawater
agriculture system, which will use the arid saltwater
landscape around Abu Dhabi’s coastline to develop
not just aviation fuels but other forms of biofuel and
aquaculture products without the need for freshwater.
An early sustainability assessment has provided positive
indications that this system is feasible and commercially
viable on a large scale. The next stage is a pilot study.
Led by the Etihad safety and quality department, action is
underway to ensure compliance with the new legislation
in Abu Dhabi for the development and implementation of
an environmental health and safety management system
for Etihad operations and facilities. All documents were
submitted by the end of December 2010 deadline.
Working in partnership
Working closely with business partners, the aviation
industry, governments, community groups and other local
and international stakeholders is essential for effecting
positive and sustainable change in environmental
practices.
In the global arena, Etihad is represented on the
Environmental Committee of lATA and the Environmental
Policy Group of the Arab Air Carriers Organisation
(AACO). We also work closely with industry associations
and other airlines to help influence and shape future
regulatory measures to ensure they are appropriate, fair
and consistently applied.
Etihad is also a member of the Abu Dhabi Sustainability
Group and the UAE General Civil Avaiation Authority
Aviation Environmental Working Group.
Our ongoing partnership with Masdar includes a service
agreement, signed with the Masdar carbon management
unit, for the purchase of carbon credits for a future
voluntary offset program.
In January 2010, Etihad committed to becoming a
founding partner of the Masdar Institute-hosted and led
Sustainable Bioenergy Research Consortium and is also
a member of the Sustainable Aviation Fuel Users Group
(SAFUG).
20
Etihad Airways CSR Report 2010
Etihad acknowledges that alternatives to traditional fossil
based fuels are fundamental to the sustainable future of
aviation. With this in mind, Etihad is demonstrating its
support directly through an Abu Dhabi based initiative
and by virtue of its commitment to a comprehensive set of
sustainability principles for alternative fuels.
The Sustainable Bioenergy Research Consortium
Alongside Boeing and Honeywell subsidiary UOP, Etihad
is a founding member of the Masdar Institute Sustainable
Bioenergy Research Consortium, a dedicated resource
investigating the viability of sustainable biofuels in
Abu Dhabi and the potential for wider application and
commercialisation.
Research and development of sustainable biofuels
is a priority for Etihad. Not only would biofuels be
commercially beneficial as an alternative fuel supply, but
the future regulatory landscape for aviation is likely to
favour their use.
Sustainable Aviation Fuel Users Group (SAFUG)
SAFUG is an airline-led industry working group
established in 2008 to accelerate the commercialisation
and availability of sustainable biofuels.
Members are bound by stringent criteria in the
development of non-fossil biofuels. The development of
plant sources must be undertaken in a manner that is noncompetitive with food, minimises biodiversity impacts, and
does not jeopardise drinking water supplies. Furthermore,
the total lifecycle greenhouse gas emissions from plant
growth, harvesting, processing and end-use should be
significantly less than those from fossil sources.
In developing economies, projects should include
provisions or outcomes that improve socio-economic
conditions for small-scale farmers and their families and
that do not necessitate the involuntary displacement of
local populations. High conservation value areas and
native eco-systems should not be cleared and converted
for jet fuel plant source development.
Each SAFUG member has pledged to work through the
Roundtable for Sustainable Biofuels (RSB), a global multistakeholder initiative consisting of leading environmental
organisations, financiers, biofuel developers, petroleum
companies, NGOs, research entities and governments.
“Etihad is a founding
member of the Masdar
Institute Sustainable
Bioenergy Research
Consortium, a dedicated
resource investigating the
viability of sustainable
biofuels in Abu Dhabi
and the potential for
wider application and
commercialisation.”
Etihad Airways CSR Report 2010
21
Growing Together is a collection of initiatives to support
the growth and development of Abu Dhabi and its citizens.
It demonstrates our ongoing commitment to work as a
catalyst for trade and tourism in Abu Dhabi, and support
national and regional development initiatives.
USD 763 million and supported an additional 14,235 jobs
in 2010, when taking into account the money spent by
the airline through commercial interactions with a wide
range of Abu Dhabi businesses, including fuel purchases,
maintenance and repairs, airport rental and landing fees,
marketing and advertising, IT and communications.
Economic contribution
Etihad plays a fundamental role in driving the economic
diversification and growth envisaged in the Abu Dhabi
2030 Plan.
A further ‘induced’ GDP contribution of USD 661 million
and 12,339 additional jobs can be attributed to money
spent during 2010 by people working for Etihad Airways
and its suppliers.
A study by UK think tank Oxford Economics was
commissioned to quantify the overall economic
contribution of Etihad Airways to the Emirate of Abu
Dhabi now and in the future. The study, which is refreshed
annually, uses data from Etihad and the Abu Dhabi
government and incorporates the results of a survey of 210
companies in Abu Dhabi, as well as in depth case study
interviews with a number of key business leaders.
Travel and tourism
Detailed examination of the economic contribution
framework shows the airline is playing an increasingly
important role in many diverse areas of local economic
endeavour, including trade, tourism, location investment,
labour supply and productivity.
essential abu dhabi
Etihad Airways designated 2011 as “the year of Abu
Dhabi” and launched its “essential abu dhabi” destination
marketing campaign to enhance Abu Dhabi’s standing
as a top tourist and MICE destination through a range of
promotional activities across its network.
According to the 2011 study, overall, the airline
contributed USD 6.1 billion (9.1 per cent) of Abu Dhabi’s
non-oil GDP (3.7 per cent of total GDP) in 2010, and
helped generate and support a total of 97,472 non-oil jobs
throughout the Emirate, employing 6,631 people directly.
Hala Abu Dhabi
Part of Etihad Holidays, Hala Abu Dhabi, was launched in
March 2010 as Etihad’s destination management company.
It provides business and leisure visitors to Abu Dhabi and
the UAE with a wide range of unrivalled products, services
and activities.
A campaign with community stakeholders, the campaign
draws together all major tourism operators in the Emirate
of Abu Dhabi for the first time to showcase the best the
capital has to offer.
Etihad made a further ‘indirect’ economic contribution of
Direct
Indirect
(within Etihad)
(suppliers to Etihad)
Airline
Passenger services
Air cargo services
Airport services
Catalytic Effects
Airport and services
Suppliers
Business services
• Fuel on site
• Aircraft Maintenance
• Air traffic control
• Retail and catering
• Offsite fuel suppliers
• Manufacturing
• Computers/electronics
• Retail goods
• Call centres
• Accountancy
• Travel agents
Trade
Tourism
Local/Investment
Induced
Maintenance
(spending of direct and indirect employees)
Hotels
• Food and Beverage
Travel network
• Clothing
• Recreation
• Household goods etc.
The impact of Etihad Airways economic contribution to Abu Dhabi
22
(impacts on other
industries)
Etihad Airways CSR Report 2010
Labour supply
Productivity
“The progress the company has
achieved since its launch and
the projected growth constitute
an effective contribution to
the growth and boom being
witnessed by the UAE. Such
contribution will also boost the
tourism sector in the country.”
HH Shaikh Khalifa bin Zayed Al Nahyan
President of the UAE
Etihad Airways CSR Report 2010
23
“We are proud to
support programs
that promote
the richness and
diversity of modern
Arabic cultural
life.”
Etihad plays a crucial role in bringing visitors to Abu
Dhabi, and essential abu dhabi will give extra momentum
to its efforts to promote the capital as one of the world’s
best destinations.
essential abu dhabi is being promoted in all of our
overseas destinations, as well as online and in-flight.
A new Etihad Airbus A330 aircraft painted in a striking
“Visit Abu Dhabi in 2011” livery is carrying the message to
many destinations around the world.
The campaign is supported by the Abu Dhabi Tourism
Authority as a major partner, demonstrating the
commitment of the entire local tourism industry to work
effectively together.
Sougha – embracing our heritage
A unique collaboration with Sougha, a Khalifa Fund
initiative, is working with women in the western region to
preserve traditional crafts in a range of modern products
that are included in the duty free selection on board Etihad
flights.
This project supports the economic inclusion and
development of an otherwise marginalised rural
community, the enhancement and creation of employment
opportunities for women, and the Emirate’s overall goal of
economic diversification.
Emiratisation
One of our primary contributions to the local economy
is through our Emiratisation program. Since its
commencement, Etihad has been invested a significant
amount in the three main streams of the Emiratisation
endeavour; the cadet pilot program, the graduate
management development program, and the trainee
engineering apprenticeship scheme. A total of 100 Emirati
nationals have graduated from the programs so far. (See
also Working Together)
Emirati percentage of workforce
(excluding flight crew)
16%
12%
8%
4%
0%
2009
24
Etihad Airways CSR Report 2010
2010
Sponsorship
Etihad sponsorship covers arts, community, cultural
and sporting activities which promote and enhance its
brand and profile locally and in key markets across the
network. We also engage in strategic regional and national
sponsorships which allow for grassroots activities that
engage the local community.
Sport in the community
We work with our sports partners to develop Emirati and
international sporting talent and support grass roots sport
in the UAE.
The inaugural Etihad Airways Manchester City FC Soccer
Schools took place in April 2010 following the highly
successful Harlequins Rugby Schools and Chelsea FC
Soccer Schools held previously. Players and coaches from
the club flew to Abu Dhabi and Al Ain to train more than
400 young sportsmen in the Emirate and to help develop
youth football in the region.
Etihad picked up top honours at the Arabian Sponsorship
Awards 2010 for its partnership with English Premier
League team Manchester City Football Club, winning the
‘International Sponsorship’ category. Etihad was credited
for its activation of the partnership in areas that included
competitions and promotions in the local market as well
as the highly popular Etihad Airways Manchester City FC
Soccer Schools during the winter months.
Etihad conducted a tour of local schools and malls in the
UAE with a giant replica of the Manchester City FC shirt
that gained over 5,000 signatures and messages of good
luck for the club ahead of the 2010/2011 English Premier
League season.
Etihad was also closely involved with the “Our Country
versus Our City” match, which saw many of the
Manchester City FC star players take on the UAE national
team in an exhibition match.
PROGRAMS
Graduated
2011 Participants
Existing
New
Cadet pilot
60
80
100
Graduate management development
31
30
50
Technical engineering
9
37
50
Contact centre
-
80
80
VEDC
-
7
40
Emirati development career
n/a
30
-
Program support and overheads
n/a
15
8
Total
100
249
328
Etihad Airways CSR Report 2010
25
Our people
Since 2005, the number of Etihad employees has grown
fourfold, with the greatest increase occurring in the period
from 2007 to 2008.
Finding and attracting talent locally and globally is
imperative to the success of our organisation. High calibre
candidates are sourced a range of other professional
sectors depending on the nature of the role.
As of December 2010, Etihad employed 7,855 people
worldwide, representing 123 different nationalities
and creating a unique cultural diversity. UAE nationals
currently comprise 13 per cent of the workforce (excluding
cabin crew and outstations).
Emiratisation
The Board’s directive to source and develop young
Emirati nationals is seen as a key management priority
and Etihad is committed to providing real and meaningful
employment opportunities and career paths for Emiratis.
An Emiratisation policy and strategy were formally
implemented in 2007 when the first programs were
launched.
The core initiative comprises three schemes - the cadet
pilot program, the graduate management development
program and the trainee engineering apprenticeship
scheme.
Employee growth
Etihad has invested significantly in the Emiratisation
program, which is now in its fourth year, a fact endorsed
by the growing number of applicants and the positive
market perception of Etihad as an employer.
In September 2010, Etihad’s largest graduate group of
77 received certificates of achievement from the Chief
Executive Officer at a ceremony in Abu Dhabi.
Al Ain contact centre
As part of our continuing efforts to focus on opportunities
for Emirati women in the workforce, planning began in
2010 for the opening of a unique all-women contact
centre at Al Ain. Employment and training of the Emirati
staff commenced in the third quarter of 2010 to ensure
that the 85 women would be fully equipped to take on
their new roles. The contact centre was opened in March
2011.
Internship and mentoring
Etihad offers internships to UAE nationals providing
on-the-job opportunities to gain work experience while
completing their studies at several tertiary educational
institutions in the UAE.
Vocational education
In 2010 Etihad employed the first team of students from
the Vocational Educational Development Centre (VEDC).
Having gained work experience at Abu Dhabi Airport
during the previous year, the 2009 class of 11 students
graduated and joined Etihad as permanent employees of
the airport services team.
AS AT 31 DECEMBER
2009
2010
Total staff
7,828
7,855
Head office staff - headquarters
6,605
6,631
Outstation staff
1,223
1,224
6,000
Flight attendants
3,031
2,783
5,000
Flight deck crew
829
982
4,000
Number of Emiratis
316
484
3,000
2010 PROGRAM
Places
Applicants
Graduate management program
15
430
Cadet pilot program
24
449
Engineering
24
225
Number of employees
9,000
8,000
7,000
2,000
1,000
2005
26
2006
2007
2008
Etihad Airways CSR Report 2010
2009
2010
We are committed
to achieving
full sustainable
employment and
development of the
national workforce.
Etihad Airways CSR Report 2010
27
Productive partnerships
Etihad has an agreement with Zayed University in Abu
Dhabi to develop and train Emiratis who want to pursue
a career in the airline industry, and works closely with
Abu Dhabi University, UAE University, Higher Colleges of
Technology, IAT, ILM, the British Council and the Horizon
Flight Academy.
We also partner with local institutions such as the Abu
Dhabi Tawteen Council, the Abu Dhabi Education Council
and the Institute of Applied Technology to broaden and
enrich the scope of our Emiratisation program.
in 2010, Etihad’s Emiratisation team participated in
the ‘Quadurat’ research project conducted by Hewitt
Associates and Stanford University to improve their
understanding of the strengths, capabilities and aspirations
of Arab nationals across the region. The survey was open
to all Emirati employees during August and September
2010. A total of 80 staff responded and the report has been
published.
Training and development
Given the regulated nature of the aviation industry, a high
level of technical competency is essential to business
operations, delivery and safety. To meet this requirement,
Etihad opened its own state-of-the-art training academy in
2008 to offer a positive learning environment and provide
classroom-based and technical training.
With the introduction of e-learning in 2010, the training
academy has been able to increase its productivity.
E-learning now comprises 67 per cent of the total training.
Training on cultural diversity and Islamic culture is
embedded in many of the academy’s training programs,
including management development, group dynamics,
performance feedback communication and coaching.
Induction program
A new, mandatory induction program called ‘Marhaba’
was introduced in September 2010. The program provides
all the tools, information and support new joiners need
as they take up their roles in Etihad. Marhaba includes a
cultural awareness seminar to help employees integrate
into life in the UAE. There is also a ‘buddy’ system, which
teams existing employees with new joiners to ensure they
are assisted in every way possible in the first stage of their
journey as an Etihad employee.
Succession planning
A formal methodology for identifying and managing talent,
called Talent Watch, was introduced in the first quarter of
2010 with the aim of recognising and developing internal
talent; identifying critical roles in the organisation and
creating succession plans for those roles.
28
Etihad Airways CSR Report 2010
This process uses the nine-box model first used by
General Electric, which assesses people on two matrices –
performance and potential. In 2010, senior and mid-level
managers were evaluated by the Talent Board, which
met six times during the year. A number of key talent
placements were made as a result.
A holistic approach to employee wellbeing
Remuneration
Etihad Medical Centre
Opened in May 2010, Etihad’s state-of-the-art medical
centre is accredited by the GCAA and the Health Authority
of Abu Dhabi. It offers a broad range of medical services
free of charge to employees, with plans in place to extend
these services to their families. An average of 500 people
visit the clinic, which is located in Etihad Plaza, each
week.
Etihad offers employees a wide array of financial and nonmonetary benefits including a home ownership scheme;
living and education allowances; supplementary flight
tickets for friends and family, and annual leave tickets for
employees and their immediate family members anywhere
on the Etihad network.
Fit-2-Fly
All Etihad employees and their families have free access
to the airline’s Fit-2-Fly gyms and swimming pools in five
locations in and around Abu Dhabi. Personal trainers are
on hand to guide and support employees with individual
nutrition and fitness programs. The facilities record an
average of 9,000 visits per month.
iachieve and pay for performance
Etihad believes that rewarding organisational and
individual performance is crucial in retaining high
performing staff, and in ensuring that remuneration is
competitive regionally and internationally.
Continuously benchmarked against and informed by
market and industry trends, the Etihad reward approach
has evolved from annual cost of living increments to one
that links and differentiates pay based on performance.
In 2010, 100 per cent (7,119) of all eligible staff
underwent the annual performance appraisal and rating
on which the approved range of salary adjustments was
based.
Academy resources
Number
Classrooms
32
Computer-based training rooms
6
Auditorium
1
Flight simulators
4
Cabin emergency evacuation
1
Real fire fighting trainer
1
Door trainers (Boeing and Airbus)
4
Pool for emergency training
1
AS AT 30 DECEMBER
Our main staff accommodation complex, Etihad Plaza,
offers a community-based environment with access to
grocery shopping, a pharmacy, a medical centre, a spa,
banking and money exchange services and restaurants.
2005
2006
Total number of courses
offered by Etihad
1,107
1,320
Number of training hours
23,833
27,672
Staff conference
Etihad held its Worldwide Staff Conference at the Yas
Marina Circuit in January 2011. The two-day conference,
attended by over 500 staff from around the world, was
addressed by the Chief Executive Officer and Etihad’s
senior management team. The Chairman of the airline’s
Executive Committee, His Excellency Mubarak Al Muhairi,
also made a special address to Etihad staff to thank them
for believing in Abu Dhabi and its vision for the future,
pointing out that the growth and future success of both
Etihad and Abu Dhabi is interwoven.
The CEO and senior executives also update all staff
on developments across the business at bi-annual staff
roadshows.
Health and safety
Safety lies at the heart of our business and is a core value
across the company. The statement of commitment, policy
and procedures, reinforced by practice and training,
demonstrates management’s commitment to safety.
Safety management system (SMS)
The implementation of a Safety Management System was
a major project for the safety and quality team and will
allow Etihad to manage safety proactively. The SMS is a
comprehensive system designed to manage health, safety
and general risks, providing a systematic way of identifying
hazards to control and reduce risks to acceptable
levels. It enables goal setting, planning and measuring
performance, communication with staff, training, safety
assurance and safety culture and reporting.
The organisation of the safety action group, accountable
for follow up and corrective action, was also improved
during the implementation of the SMS, and training in
safety management was conducted for the management
team. Online courses, available on the intranet, have
facilitated a smooth implementation process.
First Etihad safety manual
In 2010 we published the first safety manual. Structured as
a cross-departmental manual, it supports the requirement
for a company-wide SMS and helps to embed safety in
Etihad’s working procedures and processes.
Quality and safety training
Key to establishing consistency will be the continuing
design and implementation of standards, documented
processes and procedures, enforced through ongoing
training. Safety and quality support operational
departments in their training requirements. An audit
system allows measuring and qualifying needs of the
organisation to maintain regulatory compliance.
IOSA renewal 2010 with zero findings
All IATA member airlines are required to pass the IOSA
(IATA Operational Safety Audit) audit, which is conducted
every two years by an externally accredited audit
organisation. During 2009 and 2010, Etihad’s operations
quality team worked on the implementation of new IOSA
standards. In 2010 Etihad passed a major UAE GCAA
audit and the IOSA 2010 renewal, the latter being the
most recognised operational safety accreditation in the
airline industry. The program is comprehensive, consisting
of 966 standards subdivided into eight operational areas.
Passing this with zero findings is a significant achievement
demonstrating the very highest levels of safety.
Environment, health and safety legislation
2010 we engaged with authorities in Abu Dhabi to ensure
compliance with new environment, health and safety
legislation. Internal resources have been put in place to
implement the system by the end of 2011.
Etihad Airways CSR Report 2010
29
Corporate and individual philanthropy is an important
part of Etihad’s CSR strategy. We enjoy a high degree of
recognition among our diverse stakeholders in the UAE
and the communities in which we operate. This brings
with it a corresponding expectation and responsibility of
involvement in these communities through philanthropic
and charitable projects and activities that enhance the
social and economic wellbeing of the people.
We manage our philanthropic giving and community
involvement ethically and transparently to meet our
corporate governance criteria and the expectations of our
stakeholders.
Crisis and humanitarian aid
Etihad staff responded with compassion and energy to
several successive natural disasters in 2010, donating
money and crisis aid items for distribution to communities
in Haiti, Chile, Pakistan and Australia.
Haiti
In January 2010 Etihad Crystal Cargo operated a special
Red Crescent and Khalifa Welfare Foundation charter
flight to Haiti carrying more than 80 tonnes of medical
and humanitarian supplies, while staff donated money and
relief items which were sent to Médecins Sans Frontières
and SOS Children’s Villages.
Pakistan
Due to the proximity and scale of the flood disaster
in Pakistan, the country’s close ties with the UAE and
its importance on our network, we undertook several
humanitarian initiatives to assist the affected communities
across the country.
Etihad staff and our brand ambassadors in Pakistan, the
pop-rock band Strings, visited the Sajawal relief camp
and also worked with the Emirates International Mobile
Humanitarian Hospital for Children (EIMHH) to distribute
more than 1,000 Eid gift packs to displaced children living
in the Razzakabad relief camp in Karachi.
Etihad also sponsored volunteers from the Pakistan Flood
Relief Dubai (PFRD) agency to visit the north-western
regions of Pakistan, where they distributed donated food,
clothing, and household items to families that were left
destitute by the floods.
In the last quarter of 2010, we took part in HRH The
Prince of Wales’ ‘Seeing is Believing’ program, which,
following damage and need assessment, is to fund and
implement a long-term and holistic reconstruction in the
country.
Etihad operates in a
unique multicultural
environment. Promoting
cultural exchange and
connecting people and
places is part of our
business as an airline,
and an obvious area
of focus in our CSR
program.
Queensland flood disaster
In response to the devastating flood that engulfed a
vast area of Queensland, Australia, and affected at least
200,000 people, companies in Australia and around the
world rallied to provide support to the government and
affected communities.
With the strong endorsement of our Board, and in addition
to initiatives by the UAE government, Etihad pledged
AUD 1 million in aid to the Queensland government in
recognition of the close ties between Australia and the
UAE.
Care by Air
Etihad is a founding signatory and member of Care by Air,
a humanitarian and relief aid initiative from Abu Dhabi
together with Maximus Air Cargo and Abu Dhabi Airport
Services. Care by Air provides cargo space at cost price
to deliver relief aid to disaster stricken areas around the
world.
Airlink
Etihad is a registered member of the International Society
of Transport Aircraft Trading (ISTAT) Airlink, which
provides and promotes a free web-based portal aimed at
addressing developmental and emergency humanitarian
air transportation needs. The system connects charities
and non-government organisations with airlines that can
provide passenger or cargo transportation for free or at
reduced cost to meet humanitarian and emergency relief
aid requirements.
In August 2010, we launched our new A330 freighter
aircraft carrying 59 tonnes of aid to assist the humanitarian
effort in Pakistan and also carried medical supplies from
Italy to Pakistan for the EIMHH.
30
Etihad Airways CSR Report 2010
Etihad Airways CSR Report 2010
31
Community engagement
One of our key areas of focus is human empowerment
and development. In the workplace this manifests in our
Emiratisation program and a range of training and career
development programs for all staff. Externally, we work in
a variety of communities and with accredited programs to
deliver opportunities, education and vocational training
that have the potential to drive employment and enhance
the quality of life in the community. [See also Working
Together.]
Mosaic
Founded by His Royal Highness the Prince of Wales,
Mosaic has two key priorities - to create opportunities for
young people of all backgrounds, and to promote cultural
understanding between different people and groups.
Etihad has a longstanding relationship with Mosaic,
and over the last three years has sponsored numerous
initiatives, including the Mosaic International Summer
School and the Mosaic International Awards.
As the official airline for the Mosaic International Summit,
Etihad flies delegates from across the Muslim world
to attend the program which, in addition to providing
opportunities for delegates to develop leadership skills,
offers a multicultural perspective of key global issues
and works with students to address these in positive and
creative ways.
Three Etihad employees participated in the Mosaic
International Summit in 2010. The delegates, members
of Etihad’s Emiratisation program, were Aisha Al Ameer,
Shaeb Alnajjar and Najla Al Nahdi.
In November 2010, Etihad continued to celebrate the work
of young Muslims through its sponsorship of the Mosaic
Talent Awards 2010 in London. The International Award
recognises a young Muslim individual or group which
delivers significant social benefit to their community.
The winner of the International Award for 2010 was Korvi
Rakshand Dhrubo, a 25 year old Bangladeshi who was
credited by Mosaic for dedicating his life to breaking the
cycle of poverty through education in the Dhaka slums.
32
Etihad Airways CSR Report 2010
Summit delegates flew with Etihad from Bahrain,
Bangladesh, Indonesia, Malaysia, Oman, Pakistan, Qatar,
Saudi Arabia and the UAE to spend two weeks hearing
from expert and inspirational speakers, taking part in
discussions and debates, and finally, planning how they
will put their learning into effect on their return home.
Offscreen
Offscreen is an award-winning social enterprise promoting
cross-cultural understanding among young people. This
not-for-profit initiative specialises in building creative
bridges and improving relations and perceptions across
economic and geographical borders, especially between
the UK, Middle East and the wider Islamic World.
It covers all forms of artistic expression and endeavour,
such as photography, film, fine art and fashion design, and
empowers young people to inspire their peers through the
creative communication and expression of other cultures,
ultimately building an educational legacy that is used in
various forums, including schools and public venues such
as museums.
Etihad was the official airline for two 2010 Offscreen
expeditions that took place in the UK and Pakistan.
Child Welfare Scheme
The Child Welfare Scheme (CWS) is a British charity
dedicated to improving the lives of vulnerable children
and their families in Nepal. CWS targets the most remote
or marginalised children with health, education and
protection initiatives. CWS reached in excess of 200,000
people in 2010.
Associations
Looking ahead
Abu Dhabi Sustainability Group
The Abu Dhabi Sustainability Group (ADSG) aims to
promote sustainability management in Abu Dhabi by
providing learning and knowledge sharing opportunities
for government, private companies and not for profit
organisations.
While we will continue to sponsor initiatives that
empower and develop young and disaffected people in
Abu Dhabi and across our network, and provide support
for ad hoc philanthropic activities, we will look to select
a single philanthropic project that will draw together
the efforts of our staff and customers in the provision of
financial and other meaningful support.
All members are required to sign the ADSG Declaration,
committing to adopt best practices of sustainability
management and reporting and to actively participate in
ADSG activities, which focus on achieving economic,
environmental and social sustainability, and strengthening
inter-cultural dialogue around global and local
sustainability trends.
Other objectives for 2011 include the implementation of a
staff volunteer program that will build on the present work
of the IFS volunteer group to facilitate and assist voluntary
participation in projects with NGOs across our network.
In addition to participation in the quarterly group
meetings, Etihad chairs the waste management taskforce
and participates in the supply chain and sustainable labour
practices taskforce groups.
Business in the Community
In 2010 Etihad signed up to become a member of Business
in the Community (BITC), one of the Prince of Wales’
charities. This business-led charity boasts 850 member
organisations that work together to define and implement
best practice in the workplace while creating a sustainable
future for people and the planet and improving business
performance.
We work with BITC to implement our sustainability
strategy and in finding new ways to play a meaningful
and responsible role in the workplace, marketplace,
environment and the community.
Etihad Airways supported CWS, providing flights and
saving the organisation thousands of dollars in airfares.
These savings helped CWS to support emergency transport
schemes that include cycle ambulances in the Terai region
of Nepal. The ambulances help women from remote rural
areas to reach hospital safely and ensure they give birth
with medical support.
Etihad Airways CSR Report 2010
33
Etihad’s management reporting framework is as follows:
Corporate governance
Government of Abu Dhabi
Board of Directors
Articles of Association
Executive Committee of the Board
Manual of Authority
Name of Meetings
Objective
Frequency
Attendees
Board Meetings
The board meets the management of the company
to ensure that shareholder mandates are effectively
implemented. The Board receives its authority from
the shareholder and effectively delegates that to the
management via the manual of authorities.
Quarterly
Board members, CEO,
CFO and Chief Officers as
required
Executive Committee
Meetings
The Executive Committee meets management to
discuss and authorise the carrying out of any activity
deemed necessary to enable the company to achieve
its commercial objectives and operational activities,
and to review risks and formulate actions to address
such potential risks.
Monthly
A subcommittee of Board
members, CEO , CFO and
Chief Officers as required
Audit Committee
To provide assurance to the Board over the qualification, independence, and performance of the
registered public accounting firm (external auditor),
and to seek advice from the company’s internal audit
function as to the adherence to relevant governance
standards.
At least 5
times a year
Two members of the Board
– CEO and CFO
Audit Committee
External Audit
Contracts Manual
Management
Audit Committee Secretary
(VP IA)
Internal Audit
Chiefs Meetings
The Chief Officers of the company meet to discuss
and review performance to ensure the company
achieves its commercial objectives. At this meeting
the CEO updates his direct reports on issues affecting the company and feedback of Board, Executive
Committee and other meetings. The Chief Officers
update the CEO on issues and focus areas relating to
their divisions.
Monthly
CEO, Chief Officers
Performance Review
Prioritisation Meeting
These meetings focus on the performance of the
company including planned initiatives and continuous improvement. Included in this review is the
BSC/ PMO/CAPEX
Quarterly or
as required
CEO, Chief Officers, PMO
Abu Dhabi Audit
Authority
Tender Board
COMMERCIAL MANDATE
Etihad Airways operates under a rigorous organisational
structure, established in 2007 in line with the revised
Manual of Authority, which outlines authority limits
delegated by the Board to the Executive Committee,
management and staff in order to run the company’s
affairs and operations.
The organisational structure ensures transparent reporting
and sufficient checks and balances. A 2009 report by
leading global management consulting firm Oliver
Wyman, for the Abu Dhabi Audit Authority, concluded
that Etihad had “established strong corporate governance
and process redesign”.
Etihad’s governance framework is as follows:
Shareholder
Management
Regulatory
Board Meeting – Quarterly
Executive Committee – Monthly
Audit Committee – Quarterly
Manual of Authority
Tender Board Meetings
Internal Audits
External Audit – KPMG Annual
Financial Review – KPMG Quarterly
Government Audit – ADAA Periodic
Operations Audit – GCAA Annual
Safety Audit – IOSA Biennial
Etihad Airways CSR Report 2010
Cross functional VPs, FP
VMC (Value Management Committee)
Divisional Business
Review Meetings (BRM)
The CEO meets with the management teams on a
monthly basis to ensure the organisation’s performance is aligned to strategic objectives and a healthy
operational environment exists. This is done through
updating the CEO and other members of the BRM
on initiatives, projects, risks and critical performance
indicators and focus areas of the division
Monthly
CEO, Chief Officers, VPs,
Departments Heads and
Divisional Financial Controllers
Divisional Organisational Review Meetings
(ORM)
Divisional Organisational Review Meetings (ORM)
are held to review the divisional organisation structure and identify resource needs, gaps, efficiency
measures, career plans and succession planning
Twice
Quarterly
CEO, Chief Officers, CPPO
and HR Business Partners
Various layers of shareholder, management and regulatory
oversight ensure continuous performance review against
corporate strategic objectives and external standards.
34
Two independent members
including representatives of
Abu Dhabi Accountability
Authority
In addition to the various layers of shareholder, management and regulatory oversight, Etihad employs a centralised
project management office (PMO) and value management committee (VMC), and operates an ethical and objective
process for the procurement of goods and services, managed by a tender board.
Etihad Airways CSR Report 2010
35
Global Reporting Initiative
cross reference and index
Etihad is fully committed to using the Global Reporting Initiative (GRI) and the application of GRI inidicators in
developing its CSR report. We have reported on material environmental and social indicators, either fully or partially
this year and will look to improve on this as we widen the scope of our reporting in future years.
Page
Yes
Section
A. Formal CSR reporting
Publication of CSR policy
ü
Formal annual reporting of CSR performance
ü
Sustainability vision
Other
Page
Yes
Section
4.13 Membership in relevant associations
19, 20
ü
Working in partnership
4.14 List of stakeholder groups engaged by organisation
11
ü Partial
Stakeholders
4.15 Basis for identification and selection of stakeholders
11
ü Partial
Stakeholders
4.16 Approaches to stakeholder engagement
11, 13
ü Partial
Stakeholders; Together
4.17 Key topics and concerns raised through stakeholder engagement
11
ü Partial
Stakeholders
Other
Performance indicators: Environmental
Materials
EN1: Materials used by weight or volume
x
EN2: Percentage of materials used that are recycled input materials
X
EN3: Direct energy consumption by primary energy source
14, 16
17
ü
Measuring emissions and materiality; In the air
EN4: Indirect energy consumption by primary energy source
14, 16
18
ü
Measuring emissions and materiality; On the ground
EN5: Energy saved due to conservation / efficiency improvements
14, 16
17, 18
ü
Measuring emissions and materiality; In the air; On the ground;
Education and communication
EN6: Initiatives to provide energy-efficient products and services
20
ü
Working in Partnership; Biofuels
1. Strategy
1.1 Senior management statement of vision for CSR / sustainability
5
ü
From the Chief Executive Officer
1.2 Description of key impacts, risks and opportunities
2. Organisational profile
EN7: Initiatives to reduce indirect energy consumption
6
ü
Etihad today
2
ü
Report parameters
3. Report parameters
3.1 Reporting period
x
Other:
Water
3.2 Date of recent previous report
EN8: Total water withdrawal by source
19
Water consumption; Education
and communication
ü
Not relevant
3.3 Reporting cycle
2
ü
Report parameters
3.4 Contact point for questions regarding report
2
ü
Report parameters
3.5 Process for defining report content
2
ü
Report parameters
Other
Biodiversity
EN11: Location and size of land owned, leased etc in or adjacent to protected areas and
areas of high biodiversity value
x
EN12: Description of significant impacts of activities
x
3.6 Boundary of report
ü
3.7 Statement of limitations on scope or boundary
ü
Emissions, effluents and waste
3.8 Basis for reporting on JVs, subsidiaries, etc
Not relevant
EN16: Total direct and indirect greenhouse gas emissions by weight
14, 16
ü
3.9 Data measurement techniques and basis of calculations
x
Measuring emissions and materiality; Our carbon footprint;
3.10 Explanation of effect of any restatements of information from earlier reports
Not relevant
EN17: Other relevant indirect greenhouse gas emissions by weight
14, 16
ü
3.11 Significant changes from previous reporting periods in scope, boundary, measurement
etc
Not relevant
Measuring emissions and materiality; Our carbon footprint;
EN18: Actions to reduce greenhouse gas emissions and reductions achieved
x
14, 16
17
ü
3.12 Table identifying standard disclosures
3.13 Assurance
x
Measuring emissions and
materiality; Our carbon footprint;
In the air; Education and communication
4. Governance, commitment and engagement
EN19: Emissions of ozone depleting substances by weight
4.1 Governance structure
ü Partial
Corporate Governance
EN20: NO, SO and other air emissions by weight
4.2 Chair of highest Governance body an executive officer
ü Partial
Corporate Governance
4.3 # of members of Governance body who are independent
X
4.4 Mechanisms for shareholders / employees to provide recommendations to Governance
body
X
4.5 Linkage between compensation and organisation’s performance (inc social and environmental performance)
X
4.6 Process for Governance body to avoid conflicts of interest
X
Products and services
4.7 Process for determining qualifications of highest Governance body
X
4.8 Internally developed statement of mission or values
ü
EN26: Initiatives to mitigate environmental impacts of products and services, and extent of
mitigation
4.9 Process for Governance body to identify management of performance
x
4.10 Process for evaluating Governance body’s own performance
x
4.11 Explanation of whether and how precautionary approach is addressed
x
4.12 Externally developed charter, principles etc to which organisation adheres
x
36
Etihad Airways CSR Report 2010
x
14, 16
17
EN21: Total water discharge by quality and destination
EN22: Total weight of waste by type and disposal method
Measuring emissions and
materiality; Our carbon footprint;
In the air; Education and communication
x
18, 19
20
EN23: Total number and volume of significant spills
EN27: Percentage of products sold and packaging materials that are reclaimed by category
ü Partial
ü
Waste management; Education
and communication
x
14 to 21
ü
Together Greener
x
Compliance
EN28: Monetary value of significant fines and total number of non-monetary sanctions for
noncompliance with environmental laws and regulations
x
Transport
Etihad Airways CSR Report 2010
37
Page
EN29: Significant environmental impacts of transporting goods, materials and members of
the workforce for the organisation’s operations
Yes
SO6: Total value of financial and in-kind contributions to political parties, politicians and
related institutions by country
Section
x
SO7: Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly
practices and their outcomes
Investment and procurement practices
HR1: Percentage of significant investment agreements that include human rights clauses or
have undergone human rights screening
x
HR2: Percentage of significant suppliers and contractors that have undergone screening on
human rights and actions taken
x
x
Compliance
SO8: Monetary value of significant fines and total number of non-monetary sanctions for
noncompliance with laws and regulations
x
Performance indicators: Product responsibility
Non-discrimination
Total number of incidents of discrimination and actions taken
Customer health and safety
x
Freedom of association and collective bargaining
HR5: Operations taken in which right to exercise freedom of association and collective
bargaining might be at risk, and actions taken
x
Child labour
HR6: Operations identified as having significant risk for incidents of child labour and measures taken to contribute to elimination of child labour
x
HR6: Operations identified as having significant risk for incidents of forced and compulsory
labour and measures taken to contribute to elimination of forced and compulsory labour
PR1: Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories
subject to such procedures
x
PR2: Total number of incidents of non-compliance with regulations and voluntary codes
concerning health and safety impacts of products and services
x
Product and service labelling
Forced and compulsory labour
x
Security practices
PR3: Type of product and service information required by procedures, and percentage of
significant products and services subject to such information requirements
x
PR5: Practices related to customer satisfaction, including results of surveys measuring
customer satisfaction
x
Marketing communications
HR8: Percentage of security personnel trained in organisation’s policies concerning aspects
of human rights that are relevant to operations
x
PR6: Programmes for adherence to laws, standards and voluntary codes relations to marketing communications, including advertising, promotion and sponsorship
Performance indicators: Labour practices and decent work
x
Customer privacy
Employment
26
LA2: Total number and rate of employee turnover by age group, gender and region
LA3: Benefits provided to full-time employees that are not applied to temporary or part-time
employees, by major operations
Yes
Anti-competitive behaviour
Performance indicators: Human rights
LA1: Total workforce by employment type, employment contract and region
Page
Section
x
ü
Our people
ü
x
Compliance
x
26 to 29
PR8: Total number of substantial complaints regarding breaches of customer privacy and
losses of customer data
Working together; Emiratisation
PR9: Monetary value of significant fines for noncompliance with laws and regulations
concerning the provision and use of products and services
x
Performance indicators: Economic
Labour / management relations
LA4: Percentage of employees covered by collective bargaining agreements
x
Economic performance
LA5: Minimum notice periods regarding operational changes, inc whether specified in collective agreements
x
EC1: Direct economic value generated and distributed, including revenues, operating costs,
employee compensation, donations and other community investments, retained earnings,
and payments to capital providers and governments
Occupational health and safety
22
ü Partial
LA7: Rates of injury, occupational diseases, lost days and absenteeism
x
EC2: Financial implications and other risks and opportunities for the organisation’s activities
due to climate change
x
LA8: Education, training, prevention programme to assist workforce members and families
regarding serious diseases
x
EC3: Coverage of the organisations defined benefit plan obligations
x
EC4: Significant financial assistance received from government
x
Training and education
LA10: Average hours of training per year per employee by employee category
ü Partial
Our people
Diversity and equal opportunity
Market presence
EC5: Range of ratios of standard entry level wage compared to local minimum wage at
significant locations of operation
x
x
LA13: Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity
x
EC6: Policy, practices and proportion of spending on locally-based suppliers at significant
locations of operation
LA14: Ratio of basic salary of men to women by employee category
x
Performance indicators: Society
EC7: Procedures for hiring and proportion of senior management hired from local community at locations of significant operation
Community
Other
SO1: Nature, scope and effectiveness of programmes and practices that assess and manage
the impacts of operations on communities
ü
Noise management
26
ü
Emiratisation
22, 30
ü
Economic contribution; Giving
together
Indirect economic impacts
EC8: Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or pro bono engagement
Corruption
Economic contribution; Giving
together
SO2: Percentage and total number of business units analysed for risks related to corruption
x
Performance indicators: Logistics and transportation
SO3: Percentage of employees trained in organisation’s anti-corruption policies and procedures
x
LT2: Breakdown of fleet composition
7
ü
Our fleet
ü
x
LT3: Description of policies and programmes on the management of environmental impacts, including sustainable transportation, modal shift and route planning
14 to 17
SO4: Actions taken in response to incidents of corruption
Etihad airways Environment
Policy; In the air
Public policy
LT4: Description of initiatives to use renewable energy sources to increase energy efficiency
20
ü
Biofuels
SO5: Public policy positions and participation in public policy development and lobbying
LT7: Description of policies and programmes for noise management / abatement.
18
ü
Noise management
38
Etihad Airways CSR Report 2010
20, 28
ü Partial
Working in partnership; Health
and safety
Etihad Airways CSR Report 2010
39
Etihad Airways PJSC
Airport Road, P O Box 35566,
Abu Dhabi, United Arab Emirates
Licence No. with the Department of Economic
Development - 1002105
Tel +971 2 511 0000
40
Etihad Airways CSR Report 2010

Similar documents