Sustainability Report 2013

Transcription

1 WHO WE ARE IMPACT. Sustainability Report 2013 July 2014 British Airways Sustainability Report 2013

2 FOREWORD I see our sustainability programme as a core part of our business. Aviation plays a vital role in the global economy by providing the opportunity for people to build better businesses and also to connect people and places to build better lives. At British Airways we are fully committed to playing our part in helping our industry achieve sustainable growth through our renewed sustainability programme Responsible Flying for Everyone. Our sustainability programme and this report are organised along three dimensions: mitigating our environmental impact, enriching livelihoods and communities, and being a responsible business. We have sought to follow the guidelines established in the latest Global Reporting Initiative, version four, as we recognise this represents best practice in sustainability reporting. We work closely with regulators at a national, European and international level to help develop appropriate regulation to support the sustainable growth of our industry. In particular, in relation to the important issue of climate change we support and welcome the progress made at last year s ICAO General Assembly in committing to develop a global solution for aviation to achieve the goal of Carbon Neutral Growth from We will continue to support these important activities. I believe that sustainable alternative fuels will play an important part in enabling the aviation industry to meet its long term goal of a 50 percent reduction in net carbon dioxide (CO2) emissions by I am proud of the progress we have made with our technology partner Solena to build Europe s first biomass-to liquid biojet plant which is on track to begin production of biofuel by We are also committed to ensuring that our operations and the aircraft we purchase will enable us to continue to reduce the environmental impacts on the communities local to airports, Keith Williams, executive chairman of British Airways particularly in relation to the issue of aircraft noise. The arrival of the first of our 12 Airbus A380 and 42 Boeing 787 Dreamliner aircraft in 2013 has enabled us to reduce the noise impacts of our flights as they are at least 50 percent quieter than the aircraft they replace. I recognise that improving the sustainability performance of our industry is best achieved through working collaboratively with our industry partners. I am very pleased with the progress we have made through the UK industry Sustainable Aviation Group. I am particularly impressed with the launch of the UK Aviation Noise Road Map in 2013, the first of its kind, that shows that we can reduce the noise impacts of our flights despite forecast growth. I look forward to the development this year of the Sustainable Alternative Fuels roadmap which will show the role that these fuels can play in reducing our climate change impacts. Our flagship charity programme, Flying Start with charity partners Comic Relief goes from strength to strength raising more than 6 million since its launch in I truly believe that through continued perseverance we can create a sustainable aviation industry. This means our customers will be able to continue to enjoy the incredible benefits that come from flying and enable British Airways to continue to set the standard for safe, responsible aviation. 2

3 CONTENTS Foreword... 2 Contents... 3 About this report WHO WE ARE British Airways as an organisation Our Plan Impact and risk assessment Stakeholder engagement Governance Progress in Environmental context Environmental goals and targets Climate change Fleet age and renewal Aviation noise Local air quality Waste and recycling Water Biodiversity Community context Community goals and targets Sustainable communities Volunteering Community learning centre Responsible business context Responsible business goals and targets Safety Customer experience Colleague relations Responsible procurement Wellbeing Diversity and inclusion Report scope Governance and risk management detail Summary of 2013 achievements Mitigating our environmental impact: data calculation and methodology Operating efficiency and punctuality Sustainability indicators British Airways Sustainability Report 2013

4 ABOUT THIS REPORT The British Airways sustainability report is published for a diverse group of stakeholders. We were the first airline to report publicly on our environmental performance and have reported annually since This report relates to the calendar year 1 January 2013 to 31 December 2013 and is available online at responsibleflying. This report covers our sustainability programme which demonstrates our commitment to economic, environmental and social issues. It supplements the financial and corporate governance reporting which can be found in the International Airlines Group Annual Report 2013 (published in March Available at: This report aims to follow the Global Reporting Initiative guidance version four, and a list of indicators can be found at the end of this report in appendix 8.6 page 85. The Who We Are section provides an overview of British Airways as an organisation as well as our main goals for the future. Our Approach To Sustainability describes our strategic approach, our stakeholder engagement and governance. The Benefits of Aviation section describes the contribution that aviation makes to the economy. Mitigating our Environmental Impact explains British Airways main environmental initiatives, as well as our performance regarding emissions, noise and waste. Enriching Livelihoods and Communities reports on British Airways activity with our charity partners, and describes our community and volunteering projects. Being a Responsible Business describes our approach to safety, customer experience, colleague relations and responsible procurement. The final section of the report contains appendices, including reporting scope and a list of sustainability indicators. The information in this report has been approved by the senior management and directors of British Airways, including the Corporate Responsibility Committee. The next section, Responsible Flying For Everyone, describes our material sustainability aspects and the key progress made in

5 1 WHO WE ARE 1.1 BRITISH AIRWAYS AS AN ORGANISATION British Airways is one of the world s leading premium airlines, and the largest international scheduled airline in the United Kingdom. Our aim is to become the most admired airline. British Airways is a subsidiary of the International Consolidated Airlines Group S.A (IAG), created in 2011 from a merger between British Airways and Iberia. IAG is a Spanish registered company, with shares traded on the London Stock exchange and Spanish Stock Exchange. As of 31 st December 2013, our global workforce totalled 41,720, compared to 41,843 the previous year. We have significant presence in Heathrow, Gatwick and London City airports, making London our principal place of business. Our headquarters are at Waterside, Harmondsworth, which is close to Heathrow airport. Our colleagues are located in the following areas as shown: In 2013, British Airways carried 40.0 million passengers, compared to 37.6 million passengers in At the end of 2013, British Airways flew to 166 airport destinations around the world. 5 British Airways Sustainability Report 2013

6 1.2 PLAN British Airways vision is to be the most admired airline: admired by the communities we serve, our shareholders, our competitors and admired for, and by, our people. We therefore need to deliver consistent exceptional service to ensure loyal customers will keep flying with us. To do this, British Airways developed a new business strategy: Our Plan. This plan reflects our achievements and the areas we need to focus on. It is powered by our customer promise To Fly. To Serve. and will enable us to reach our ultimate goal of becoming the most admired airline. Setting the standard for safe responsible aviation is embedded within Our Plan with all colleagues responsible for meeting our sustainability goals and objectives. British Airways business plan: Our Plan : 6 British Airways Sustainability Report 2013

7 2 We recognise the importance of having an integrated sustainability strategy and business plan. Our right to do business is earned through responsible management of our operation and positive engagement with communities. British Airways approach to sustainability is guided by the views of its stakeholders and awareness of our impacts on society, the environment and economy. These two interdependent elements (further detailed in the following sections) inform the basis of our strategy: a commitment to mitigate our impact on the environment, run a responsible business and enrich livelihoods and communities. We have shaped our renewed commitment to sustainability around simple principles: A focussed agenda. Effective co-ordination of our initiatives. Meaningful engagement with our stakeholders. 2.1 IMPACT RISK ASSESSMENT To determine material impacts and risks to our business and their priorities British Airways uses four primary criteria: Risk impact the risk s potential financial impact. These corporate risk processes (including sustainability risks) produce regular reports, which are all distributed directly to the British Airways Leadership Team and Board, and the audit board of IAG. (For further information please refer to the appendix page 81). Probability the likelihood of the risk happening. Velocity how quickly the risk could occur. Timeframe how soon the risk could arise. 7 British Airways Sustainability Report 2013

8 2.2 STAKEHOLDER ENGAGEMENT British Airways defines a stakeholder as anyone with influence on, with interest in, or impacted by our business, projects, or products or services. Stakeholder engagement is therefore a crucial aspect of our sustainability programme in that it allows us to better understand the impacts we have as a business, qualify them and in turn continually refine our approach. As a company with significant international presence and operations, British Airways stakeholder base is both broad and diverse. We recognise that our stakeholders have both differing wants and needs and similarly, that their interest in our sustainability programme will also range widely. We therefore group our stakeholders as follows: 1. Influencers (Governments, Media, Investors/Shareholders, Academics). 2. Partners (Communities, Suppliers, Non- Governmental Organisations, Colleagues). We have worked with external consultants, such as Business in the Community, to hone our approach to enable effective dialogue. Fundamentally, our engagement of stakeholders is built around principles of being: Interactive. Encouraging. Inclusive. Prepared to Change. We are looking at four stages of engagement; Inform, Consult, Involve, Partner and Empower. As we move through these phases, the stakeholders become more engaged. We continue to develop our engagement framework and have committed to do even more to reach out, understand and communicate with our stakeholders in Customers (Corporate, Trade, Consumer). 2.3 GOVERNANCE The Corporate Responsibility Committee has ultimate oversight of economic, environmental and social impacts. This Committee is chaired by nonexecutive director Gavin Patterson. Composition of the Committee is presented at appendix British Airways Leadership Team led by executive chairman Keith Williams is responsible for decision making, agenda setting and strategic direction of the sustainability programme. Input is provided by stakeholder consultation and analysis and subject matter experts who will make a recommendation as to the proposed agenda and priorities. Nominated Leadership team members have direct responsibility for the day to day management of respective economic, environmental and social issues. British Airways Standing Instruction 2 The Way We Do Business underlines the company s expectations as to addressing economic, environmental and social issues. The Corporate Responsibility Review Board chaired by Chief Commercial Officer Andrew Crawley, is responsible for co-ordination and review of Corporate Responsibility initiatives, including stakeholder engagement and consultation Nominations and conflicts of interest The Nomination Committee identifies and nominates candidates for the approval of the Board, to fill vacancies as and when they arise as well as putting in place plans for succession. The Committee takes into consideration such factors as skill, diversity, experience with businesses and other organisations of comparable size. 8 British Airways Sustainability Report 2013

9 In accordance with Companies Act 2006 the Directors are under an obligation to avoid situations in which they have, or can have, a direct or indirect interest that conflicts, or may possibly conflict, with the interests of the Company (Section 175(1)). A register of authorised interests is maintained by the Secretary and updated by the Board as needed from time to time; it was last updated in January For more information on our company s governance, see appendix 8.2 page 80. Sustainability governance: BA Board CR Board Committee Chair: Gavin Patterson Relevant LT and board members BA Leadership Team Oversight CR Review Board Chair: Andrew Crawley Core: strategic team: Relevant LT Members, Subjects Matter Experts Corporate Business Plan: Set The Standard For Responsible Aviation Collate and audit activities; engagement of stakeholders Set and define the vision Nominate LT Members Progress, Manage and Prioritise Business Line Area Activity 9 British Airways Sustainability Report 2013

10 3 In reaffirming the fundamentals of our strategy we have also looked to give it meaning; a purpose and ambition. 2. Enriching livelihoods and communities: Sustainable communities. At British Airways our promise of To Fly. To Serve embodies who we are and what we do. We want to ensure our promise extends beyond our everyday operation and that our commitment is one that lasts. Being a good neighbour. Education and Talent Development. To do that we have one overarching goal: Responsible Flying for Everyone. We are focussing on the following material aspects, coordinating our activities across three pillars of work: 1. Mitigating our environmental impact: Emissions associated with climate change. Noise and air quality impacts. Waste and recycling. 3. Being a responsible business: Customer and colleague wellbeing Inclusion and diversity. Responsible procurement. Colleague relations, engagement and support. It is expected that all colleagues contribute to meeting the environmental, social and economic goals of British Airways, helping to achieve the goals of our three pillars which will deliver Responsible Flying for Everyone. 10 British Airways Sustainability Report 2013

11 3.1 PROGRESS IN has seen real results across each of our three key pillars of sustainability. 1. Mitigate our Environmental impact In an innovative and industry leading project, British Airways is working with Solena Fuels to build the world s first advanced fuels facility to convert waste into jet fuel. Early engineering design work for the project Greensky London has been completed and the location selected on the site of the old Coryton oil refinery in Thurrock, Essex. Once fully operational, the plant will convert 500,000 tonnes of waste into 50,000 tonnes of jet fuel every year. This represents more than 1000 Boeing 787 flights from London to New York. 2. Enrich livelihoods and communities 3. Be a responsible business and employer At British Airways, our colleagues opinions and thoughts about the business are vital to our development and growth. More than 23,500 colleagues took the time to share their views in our colleague opinion survey, Speak Up That equates to 61 percent of the 38,681 colleagues surveyed. As a result we now have robust data to give us a clear picture of people s thoughts and views. Comparisons with last year s results show we are making progress in areas such as leadership visibility and communication. For more of our achievements in 2013, see appendix 8.3 page 82. In 2010, we began our partnership with Comic Relief with the aim to raise 6 million by December As a result of the generosity of both our customers and colleagues we exceeded our target raising in excess of 6.75 million by December British Airways Sustainability Report 2013

12 4 The aviation industry as a whole provides employment, trade links, tourism and support for economic development through air travel. The global air transport industry supports 58.1 million jobs worldwide and carried 3.1 billion passengers in In 2012 aviation contributed $2.4 trillion to global GDP equivalent to 3.4 percent of global GDP 1. These figures, produced by the Air Transport Action Group (ATAG), do not include other economic benefits. A healthy network like British Airways will deliver strong direct and indirect economic benefits to the UK. The direct effects are the employment of British Airways staff, the skills they develop and the money that British Airways as a business spends in the UK on things like aircraft, fuel and catering. The indirect effects are also numerous. For example, by connecting different parts of the globe, the British Airways network has four broad positive impacts: 1. It facilitates trade for UK businesses abroad - UK businesses trade 20 times 2 as much with countries where there are daily flights than those with less frequent or no services. 2. It opens up the UK product market to competition, increasing choice for consumers, spurring businesses to be more efficient, which in turn lowers prices and raises profits. 3. It allows UK businesses better access to global labour markets. 4. It brings foreign visitors to the UK - over 80 percent 2 of long haul foreign visitors come to the UK via Heathrow. As a member of one of the largest airline groups in the world, British Airways contributes significantly to global economic prosperity. Aviation plays a vital supporting role in economic growth, particularly in developing countries, by increasing access to international markets and the availability of the benefits of globalisation. The connectivity airlines provide, which cannot be met by alternative means of transport, contributes to increased productivity by encouraging investment, innovation and efficiency. British Airways also invests substantially in aviation infrastructure. Unlike other sectors, the air travel sector pays for nearly all of its own infrastructure, instead of relying on taxation and public funds. Since its creation in 2011, IAG s economic strategy has been to add value through consolidation, improve industry stability and sustainability, and to continue increasing product choice and quality of service for all its customers. Whilst these effects are well understood, they are inherently difficult to quantify. However, according to Frontier Economic's report 'Connecting for Growth' (2011) 2, the value of the aviation network at Heathrow in terms of its contribution to GDP is some 11 billion, of which around 7 billion is the effect of foreign visitors spending. British Airways economic footprint is global. We connect people, places, communities, and cultures bringing direct and lasting benefits to many communities. We recognise our role as a contributor to a sustainable UK economy through facilitating trade and relations, encouraging direct inward investment and supporting communities through employment. Indeed, British Airways supports some 90,000 current and retired employees across the UK and invests almost 2.5 billion throughout the UK supply chain. From our Engineering facilities in Glasgow and Cardiff, our airport operations across the UK to our head office near Heathrow airport British Airways is actively engaged and committed to spurring growth and opportunity throughout the UK. Our graduate and apprenticeship schemes (see section 7.5.4) also serve to promote and develop future talent. 1 Air Transport Aviation Group, AviationBenefits2014_FULL_LowRes.pdf British Airways Sustainability Report 2013

13 WHO WE ARE 5 IMPACT. IMPACT 5.1 Environmental context Environmental goals and targets Climate change Fleet age and renewal Aviation noise Local air quality Waste and recycling Water Biodiversity British Airways Sustainability Report 2013

14 5.1 CONTEXT British Airways is committed to addressing its environmental responsibilities. We recognise that although air travel is vital to the economies of the UK and other countries we fly to, our operations have an impact on the environment. As part of our wider business strategy, we aim to set the standard for safe, responsible aviation and we have a comprehensive programme of initiatives and targets designed to alleviate our impacts on the environment. Sustainable business growth requires us to address our environmental impacts, both globally and locally. Leadership and collaboration is vital in achieving our goals, across our industry and with our regulators. As part of this, we participate in stakeholder groups such as Sustainable Aviation in the UK, the European Leaders of Sustainable Biofuels, the International Air Transport Association (IATA) Environment Committee and the International Civil Aviation Organization (ICAO) Committee on Aviation Environmental Protection. We work constructively with organisations concerned for the environment, including government and international institutions to ensure compliance with relevant legal or regulatory requirements. We continuously strive to improve our environmental performance and set stretching objectives. We undertake open dialogue on our environmental programmes with our customers and other external stakeholders. For information on our data calculation methodologies, see appendix 8.4 page British Airways Sustainability Report 2013

15 5.2 GOALS TARGETS GOALS TARGETS Goals Targets and actions Progress in 2013 Climate change: advocate a responsible global regulatory approach to the aviation industry on climate change that is cost-effective and minimises market distortions. Collaborate with IATA to develop and promote pragmatic policy recommendations for a global market-based measure. New target: work with industry and stakeholders to support detailed development of a global market-based mechanism by the 2016 International Civil Aviation Organisation (ICAO) Assembly. Press for the EU ETS to evolve in a way that avoids distortions and disputes. We played a key role in achieving global agreement at the International Air Transport Association (IATA) Annual General Meeting in June 2013 on detailed mechanisms for achieving Carbon Neutral Growth from The EU has amended the ETS to cover only flights within the European Economic Area from 2013 until This reduces the risk of distortions and disputes. In 2016, the scope will be reviewed in light of progress at ICAO. Climate change: accelerate the implementation of sustainable low-carbon fuels into the aviation industry. Work with low-carbon fuel developers to implement sustainable supply chains for alternative fuels before Deliver our sustainable fuel facility called Greensky. Continued to progress the Greensky project with key decisions on site, technology, financing. Climate change: improve carbon efficiency through a programme of targeted initiatives. Influence UK and EU regulators to establish positive incentives for sustainable low-carbon aviation fuels. 25 percent improvement in carbon efficiency from 111g CO2/ pkm in 2005 to 83g CO2/pkm in ,000 tonnes CO2 reduction due to fuel efficiency initiatives in New target: 96,000 tonnes CO2 reduction due to aircraft fuel efficiency initiatives over 2014 and Worked with a number of groups to lobby on the key role that advanced biofuels derived from waste can play in decarbonising aviation. These included Leaders of Sustainable Biofuels and the EU Flightpath in Europe and Sustainable Aviation in the UK g CO2 /pkm in ,278 tonnes CO2 reduction in British Airways Sustainability Report 2013

16 GOALS TARGETS (continued) Goals Targets and actions Progress in 2013 Climate change: improve carbon efficiency through a programme of targeted initiatives (continued). Climate change: improve information for, and discussion with, customers on climate change issues. A 5 percent reduction in ground energy use in our buildings for 2013 against New target: 20 percent reduction in ground energy use by 2020 compared to Reduce the effects of climate change along our supply chain. Provide option for customers to support low-carbon initiatives in the booking process on our main website, ba.com. Develop up to four projects a year. During 2013, we reduced our like for like ground energy by 5.8 percent and saved 5,565 tonnes CO2. We have expanded data collection on forest risk commodities and included carbon efficiency targets into catering supplier contracts. Conducted customer research on climate communications and as a result upgraded the point of sale Carbon Fund offering. The Fund supported four community energy projects in 2013 with a combined community benefit of almost 750 thousand over the projects' lifetimes. Noise and air quality: minimise impacts of aviation noise on local communities and aviation emissions on local air quality. Waste and recycling: minimise waste, reduce disposal to landfill and increase reuse and recycling. Reduce average noise per flight by 15 percent by 2018 compared to percent recycling by 2015 at our main bases of Heathrow and Gatwick. Increase level of recycling of onboard waste. We continue to liaise with aircraft manufacturers to achieve the earliest practical entry for our new aircraft. 45 percent of waste recycled at Heathrow and Gatwick (this includes re-use, recycling, composting and liquid recovery). Segregation of aluminium cans on long haul flights into Heathrow and Gatwick. 16 British Airways Sustainability Report 2013

17 5.3 CLIMATE CHANGE Climate change is our most significant sustainability issue. The vast majority of British Airways climate impact (approximately 99 percent) results from greenhouse gas emissions released through the burning of fossil-based jet fuel in aircraft engines. The international community s aim is to limit greenhouse gas concentrations in the atmosphere so that global temperatures do not increase by more than 2 C by We want to ensure the aviation industry makes a fair contribution towards achieving this aim. The industry goals are to reduce net carbon dioxide emissions through a cap on emissions from 2020 (Carbon Neutral Growth), and a 50 percent cut in net CO2 emissions by 2050 relative to These goals have been adopted by the entire aviation industry. British Airways actively participated in industry collaboration to develop them. Our climate action plan covers a wide range of initiatives that will contribute towards achieving these goals. Fundamental to our business is fuel conservation and the introduction of new fuelefficient aircraft. These initiatives contribute directly to improvements in our carbon efficiency, as seen by reductions in carbon dioxide emissions per passenger kilometre (CO2 /pkm). Fuel efficiency is a focus for all airlines, but our action plan goes much further than this. British Airways is developing innovative solutions to producing sustainable fuels. We were the first airline to take part in carbon trading in 2002 and Climate target: 50 percent cut in net CO2: The New aircraft technology & operational measures area represents savings from new fuelefficient aircraft and operational improvements. The Demand reduction area represents the reduction in flying due to the inclusion of carbon costs in airfares. The Sustainable low-carbon fuels area represents the benefit from using new low-carbon fuel. The Purchase of emissions reductions area represents the emissions reductions made in other sectors through carbon trading. Gross CO2 is a measure of the organisation's Scope 1 and 2 CO2 emissions before deducting indirect emissions reductions (e.g. participation in emissions trading). Net CO2 is a measure of the organisation's CO2 emissions after accounting for all indirect emissions reductions (e.g. emissions reductions from participation in emissions trading). The lowest line is the net emissions level achieved once all emissions reduction actions are in place. This chart describes CO2 emissions, rather than CO2e and hence shows slightly lower figures of around 1 percent. 17 British Airways Sustainability Report 2013

18 we are supporting international regulation on climate change using carbon trading. We also engage with our customers through our Carbon Fund that is offered at the time of booking a flight on ba.com. Governments need to do their part in achieving aviation climate change goals. To meet the goals, and avoid market distortion, globally coordinated government action is essential for example, in implementing market based measures, simplifying airspace, setting technology standards and incentivising the use of sustainable fuels. The climate target: 94 percent cut in net CO2 diagram illustrates the CO2 savings associated with elements of our climate action plan that will ensure our goals are met A responsible global regulatory approach on climate change Targets: Collaborate with IATA to develop and promote pragmatic policy recommendations for a global marketbased measure. New target: work with industry and stakeholders to support detailed development of a global market-based mechanism by the 2416 International Civil Aviation Organisation (ICAO) Assembly. Association (IATA), British Airways has helped to develop practical solutions to help governments prepare global climate regulation. In October 2013, governments in ICAO agreed to develop by 2016 a global market-based measure for international aviation emissions. We are encouraged by this progress and look forward to contributing to a timely, equitable and effective global agreement. The global market-based measure should: Ensure the 2020 emissions cap (Carbon Neutral Growth) is achieved. Apply equally to all airlines flying a route, regardless of nationality. Define equitably individual operators compliance obligations. Take into account states special circumstances and respective capabilities. Enable centralised reporting and compliance assurance. A global approach is needed to avoid an ineffective, costly and distortive patchwork of different policies being applied around the world. Governments must act urgently and collectively to avoid such a damaging patchwork of regulations for aviation s emissions, by actively engaging in developing steps to a global approach through ICAO. We will continue to play an active part in helping governments to make progress. We support global regulation of aviation emissions through multilateral agreement at the International Civil Aviation Organisation (ICAO). We call on governments to introduce a costeffective global market-based measure to cap net aviation emissions at 2020 levels. We support a 50 percent reduction in net carbon emissions by 2050, relative to Next steps: Work with industry partners and stakeholders to support detailed development of a global market-based mechanism by the 2416 ICAO Assembly. Through the International Air Transport 18 British Airways Sustainability Report 2013

19 EU Emissions Trading System (EU ETS) Sustainable low-carbon fuels Target: Press for the EU ETS to evolve in a way that avoids distortions and disputes. In 2012, all flights in and out of the European Union were to be included in its emissions trading system, with the first carbon payments due to be made in Following significant international opposition and the potential threat of retaliation to the scheme, at the end of 2012 the EU announced that it would suspend the coverage of all flights between EU and non-eu states, for one year. This was referred to as Stop the clock and would allow time for development of a global marketbased approach through ICAO in the lead up to the 38th General Assembly in October In the meantime, the EU ETS still applied to those flights that both took off and landed in the EU. Following the ICAO General Assembly in October, where there was an agreement to progress a global market-based measure by the next General Assembly in 2016, the EU has agreed that for the period to 2016, the scope of the EU ETS will be limited to flights that take-off and land in the European Economic Area. This decision will be reviewed in 2016 following the ICAO Assembly. British Airways was the first airline to take part in carbon trading in 2002 and has consistently supported carbon trading as the most effective way to reduce aviation's emissions. The long term solution must be a global approach led by ICAO, with whom the industry must and will continue to work closely. Targets: Work with low-carbon fuel developers to implement sustainable supply chains for alternative fuels before Influence UK and EU regulators to establish positive incentives for sustainable low-carbon aviation fuels. British Airways is committed to the development of sustainable low-carbon aviation fuels and we are advocating: (1) The prioritisation of sustainable low-carbon aviation fuels manufactured from bio-based wastes and residues, which avoid the land use and food conflicts that are often associated with cropbased fuels. (2) The standards of the Roundtable on Sustainable Biomaterials (RSB) which were recognised by the World Wildlife Fund International (WWF) during 2013 as the best performing standard for sustainable fuels and biomaterials. (3) The introduction of measures to mitigate Indirect Land Use impacts such as the standard proposed for Low Indirect Impact Biofuels (LIIB) developed by the WWF and others. (4) Greater harmonisation of sustainability standards and life cycle assessment. These must take account of the full life cycle impacts of fuel production. This means that as well as indirect impacts such as tropical deforestation associated with Indirect Land Use change, we believe that the positive climate impacts from diverting waste from landfill should also be accounted for. During 2013, much of the policy landscape in Europe on sustainable low-carbon aviation fuels was overshadowed by the ongoing debate on Indirect Land Use Change. Many policy issues 19 British Airways Sustainability Report 2013

20 remain unresolved and are now likely to stay on the legislative agenda until after the EU s parliamentary elections in May This has led to a slowing down of investment in the sector as sustainable low-carbon aviation fuel producers continue to look for investment opportunities outside Europe. The development of advanced fuels technologies, which are far more suited to the processing of wastes and residues, could greatly improve the availability of fuels suitable for use in aviation. A more supportive EU policy framework is needed. We are encouraged by the recognition by the EU and a number of NGOs that waste-based fuels can offer a highly sustainable alternative to fossil fuels. The International Council on Clean Transportation report identified 220 million tonnes of waste that could be sustainably converted into fuels, providing almost 50 million tonnes of fuel (equivalent to the EU s fuel requirement for international aviation) 3. In the USA, new fuels are being tested and seven distinct fuel pathways are now progressing through the relevant approvals process with the standards and testing organisation ASTM International 4. These include new alcohol-to-jet and sugar-to-jet pathways, as well as novel hydrogenated oils, all of which are increasing the potential for the production of sustainable lowcarbon aviation fuels. In the UK, the government announced the creation of a grant fund for advanced fuel production and this will be awarded during Aviation fuels will be eligible to apply for this. Presently the UK does not provide incentives for aviation fuels. To enable production on a larger scale, governments need to provide equivalence with road transport fuels within any incentive schemes. We are collaborating with a number of industry groups to progress this important work towards accelerating implementation of sustainable fuels: Leaders of Sustainable Biofuels is an organisation representing European advanced fuels producers committed to developing fuels from wastes, residues and non-food crops. Illustration of the future Greensky sustainable fuel facility: 3 Wasted: Europe's Untapped Resource, An Assessment of Advanced Biofuels from Wastes & Residues. Pete Harrison, Chris Malins, Stephanie Searle, Anil Baral, David Turley, Lucy Hopwood. Feb 2014.< p.6. 4 ASTM International is an international standards organisation. 20 British Airways Sustainability Report 2013

21 WHO WE ARE The EU Flightpath programme with the EU Commission to build increased policy support in Europe and has a target to produce two million tonnes of sustainable aviation fuels by The Sustainable Aviation5 Fuels Users Group (SAFUG) this group has continued to grow and now includes 27 airline members together with Boeing, Airbus and other manufacturers representing approximately a third of all aviation fuel users in the world. In the UK, the Sustainable Aviation group is working to develop a biofuels roadmap for the deployment of sustainable low-carbon aviation fuels in the UK. British Airways and Solena Greensky project Target: Deliver our sustainable fuel facility called Greensky. IMPACT. GreenSky London is our flagship project to construct an advanced fuels facility that will convert around 500,000 tonnes each year of waste normally destined for landfill into 50,000 tonnes of sustainable low-carbon jet fuel, 50,000 tonnes of biodiesel and 20,000 tonnes of bio-naphtha. The process uses waste that is left over once all recyclable material has been removed and is usually sent either to landfill or to incineration. As well as the low-carbon fuels produced, bionaphtha can be used to make renewable plastics or blended into other fuels, and the process also produces a solid aggregate-type material that can be used in construction and road building. Most of the work during 2013 focused on the completion of the pre-front end engineering and design (Pre-FEED) and on-site selection and development, including the ecological survey and impact assessment work needed to develop a project of this scale. British Airways has committed to buying the jet fuel produced by the plant for eleven years, through an off-take agreement, equating to US$550 million at today s prices. We will also be IAG group chief executive, Willie Walsh visits site of Greensky project: 5 Sustainable Aviation is a UK aviation industry group promoting sustainable development of aviation, see for more details. 21 British Airways Sustainability Report 2013

22 an investor in the project. The British Airways offtake agreement represents the largest advanced biofuel commitment made to date by an airline. The British Airways and Solena partnership project represents a significant investment in new green technology in the UK. It will provide an innovative sustainable green energy and lowcarbon fuel solution for the UK s aviation sector. GreenSky London has signed an exclusive option on a site for the facility, and consent work for the site has begun. The facility will create over 150 operational jobs, and 1,000 construction jobs. The chosen location for the project is the Thames Enterprise Park, part of the site of the former Coryton refinery in Thurrock, Essex. The project will provide much needed regeneration for this area after the closure of the oil refinery in The site has very good transport links and is at the head of a fuel pipeline that serves London s airports. Barclays has been appointed as advisor to explore the funding opportunities through export credit agencies. British Airways and Rolls Royce alternative fuels programme The British Airways Rolls-Royce novel fuels programme completed the rig and emissions testing phase. Supported by the US Federal Aviation CLEEN (Continuous Lower Energy, Emissions and Noise) framework, the project aims to help the aviation sector find additional sustainable fuels. The testing evaluated new, sustainable alternative fuels with the potential to be included in national and international aviation fuel specifications. fuel systems. Engine operation and emissions profiles have also been measured. By varying the levels of aromatics in the fuels we were able to measure the impact on seal performance and emissions. Fuels with lower aromatics led to a marked decrease in the emissions of particulate species, which will have benefits for air quality. British Airways provided a 737 Auxiliary Power Unit (APU) to Sheffield University for combustion and emission testing. All the fuels had potential as drop-in replacements for fossil kerosene and will go forward for further testing to allow the fuels to become certified for use in commercial aviation. Full results will be published early in 2014 and will be shared with the wider aviation community as part of our commitment to furthering scientific and technical understanding of the potential of sustainable fuels. Sustainability assessments on the early production of the fuels highlighted the potential for these to be sourced from sustainable feedstock in future. Next steps: Continue to progress the Solena Greensky waste to low carbon fuels project at Coryton, Essex through the planning and permitting process. Publish the full technical and sustainability reports for the BA-Rolls Royce research study into novel sustainable low carbon fuels which was carried out in conjunction with Sheffield University. During 2013 the final four fuels were tested at Sheffield University using specially designed test rigs. The aim of this was to assess the compatibility of the fuels with existing aircraft 22 British Airways Sustainability Report 2013

23 5.3.3 Carbon Footprint During 2013, British Airways implemented a sustainability data management system as part of efforts to promote active carbon data tracking and management across the organisation. As part of the International Consolidated Airlines (IAG) group, we achieved a ranking on the Carbon Disclosure Leadership Index for transparency in emissions reporting. The diagram below illustrates the greenhouse gas emissions associated with our business, including those from the broader supply chain. 23 British Airways Sustainability Report 2013

24 Our greenhouse gas emissions (Scope 1 & 2) Our total Scope 1 & 2 emissions for 2013 were 18,175,584 metric tonnes of carbon dioxide equivalent (CO2e) as illustrated in the chart below. This is an increase from 2012, when we emitted 17,736,612 metric tonnes CO2e. As over 99 percent of our emissions result directly from flying activity, increased activity or periods of disruption directly impact our greenhouse gas footprint. In 2013, British Airways transported the equivalent of billion passenger kilometres 6 compared to billion in Therefore, despite an increase in our overall carbon footprint, emissions per passenger reduced, as described in section carbon efficiency. Calculation methodology The emissions from British Airways operations are split across Scope 1 and 2 as defined in the Greenhouse Gas Protocol (see appendices for calculation methodology). From 2013 onwards, our default emissions reporting unit will shift from CO2 to CO2e. Our emissions in this report have been adjusted retrospectively to reflect this shift to CO2e. Scope 1 (99%): Direct emissions from energy consumed directly by British Airways, such as burning jet fuel. Since 2012, our Scope 1 emissions include all freighters flying on a British Airways flightplan and all six Kyoto gases.2011 Scope 2 (<1%): Indirect emissions from purchased electricity, heat, or stream. For British Airways, an example is electricity consumption at our facilities produced off-site by our energy supplier. For further detail on the calculation methodology, refer to appendix 8.4 page 83. Scope 1 and 2 emissions in metric tonnes of Carbon dioxide equivalent (CO2e): Scope ,087,654 17,634,509 17,152, , ,103 97,171 1 and 2 18,175,584 17,736,612 17,249,394 Scope 1 and 2 - Carbon dioxide equivalent (CO2e) emissions: Millions 6 To track our organisational efficiency, we convert cargo-tonne kilometres into 'equivalent passenger kilometres' (EPKs) using each aircraft type's average passenger and bag weights. 24 British Airways Sustainability Report 2013

25 Our supply chain s greenhouse gas emissions Building on progress in 2012, we are again reporting Scope 3 emissions from across our supply chain. The most notable addition in 2013 is the estimated emissions from construction of our aircraft fleet. The chart below shows the emissions Our supply chain's greenhouse gas emissions (Scope 3 ): from each element of our supply chain in log scale. Scope 3 accounts for greenhouse emissions along our value chain. Comprehensive Scope 3 reporting gives us a fuller picture of the emissions required in airline operations, and this data allows us to manage GHG-related risks and opportunities. Fossil fuel production 3,742,163 Aircraft manufacture and disposal 944,559 3rd-party freighters 42,898 RFS cargo trucking 13,067 Catering - Heathrow (2/3) 12,474 Fuel trucking 1,358 Employee commuting - staff buses 687 Aircraft refuelling trucks 457 Business travel - road 370 Water supply and treatment - UK 199 Business travel - flying 94 Waste - landfill gases 41 Waste - waste to energy 3 8 Waste - recycling ,000 1,000, ,000,000 Tonnes CO2e in logarithmic scale Fossil fuel production: emissions from energy required for the upstream extraction, refining, and transportation of jet fuel and electricity. Aircraft manufacture and disposal: emissions from energy use required for initial manufacturing and eventual disposal of an aircraft, prorated for one year of the entire fleet s life. 3rd-party freighters: refers to emissions from carriers transporting goods on behalf of British Airways, primarily cargo freighters. RFS cargo trucking: vehicle emissions from our cargo operation's Road Feeder Service Caterers - Heathrow (2/3): emissions from the operations of our long haul and one of two short haul catering suppliers at Heathrow. Fuel trucking: emissions from ground vehicles of logistics companies which transport jet fuel on our behalf. Employee commuting staff buses: emissions resulting from our UK colleagues' commute to work using our staff buses. Aircraft refuelling trucks: emissions from a supplier's ground vehicles which refuel our aircraft at Heathrow. Business travel -road: emissions from colleague travel by personal vehicle captured in mileage claims. Water supply and treatment: emissions resulting from the supply and subsequent treatment of water. (change to where relevant) Business travel - flying: emissions from colleague travel on non-british Airways flights. Waste - landfill gases: waste which is non-recyclable and unfit for incineration is sent to landfill. The decomposition of waste produces greenhouse gases (primarily methane) which leaks into the atmosphere and contributes to climate change. Waste - waste to energy: emissions from incinerating nonrecyclable materials to generate electricity and recover heat. Waste - recycling: emissions from energy use required to recycle waste materials. 25 British Airways Sustainability Report 2013

26 5.3.4 Carbon efficiency Aircraft fuel efficiency Target: 29 percent improvement in carbon efficiency from 111g CO2/pkm in 2449 to 83g CO2/pkm in British Airways is committed to improving its carbon efficiency by 25 percent by 2025 against a 2005 baseline down to 83g CO2 per passenger kilometre. In 2013, our carbon efficiency performance improved slightly to 101.7g CO2 per passenger kilometre. Despite the positive effect of introducing new aircraft into the fleet, overall cargo load factors were lower than in 2012, impacting performance. Details of our carbon efficiency calculation methodology are presented in appendix page 84. Targets: 48,444 tonnes CO2 reduction due to fuel efficiency initiatives in New target: 96,444 tonnes CO 2 reduction due to aircraft fuel efficiency initiatives over 2414 and In 2013 the business focus was to fully integrate our new fuel efficient aircraft types (Airbus A380 and Boeing 787) into service. Furthermore, to support our fuel efficiency programme, we are investing in a dedicated fuel efficiency team which will be fully functional in The structure will encompass Flight Operations, Network Operations and Engineering as its three key pillars. Its purpose is to reduce and report our fuel Carbon efficiency - performance and targets (grammes of CO2 per pax-km): Actual Projection 2025 target 26 British Airways Sustainability Report 2013

27 consumption in these operational areas and therefore lower costs and reduce CO2. This development emphasises the importance of fuel efficiency in our business strategy. We successfully rolled out the use of reduced engine taxiing (on departure) on the Airbus fleet. This allows the crews to taxi out on one engine where suitable. This saves 3,000 tonnes of fuel and over 9,450 tonnes of CO2 at Heathrow annually. We continue to work with Air Traffic Control at Heathrow to improve this procedure in order to gain more efficiencies. To provide training and create awareness of fuel conservation within our flight crew community, we published a guide entitled Best Practices in Fuel Management. We are continually working within the framework of Single European Sky ATM Research Programme (SESAR) 7 developing future airspace changes and new flying procedures such as Time Based Spacing (TBS) 8 which improves delays during strong winds. Next Steps: Colleague engagement in efforts toward embedding active management and communication of energy and emissions data using the new sustainability data management system. Development of a new ground energy reduction target for Ground energy Targets: A 9 percent reduction in ground energy use in our buildings for 2413 against New target: 24 percent reduction in ground energy use by 2424 compared to Emissions generated through the use of our buildings account for 0.6 percent of our total greenhouse gas emissions. Throughout 2013, we have made significant progress in reducing the amount of carbon generated through the gas and electricity that we use to heat and power our buildings. Having achieved our five-year energy reduction target of 20 percent in 2012, we set ourselves another ambitious target of a further 5 percent reduction during We exceeded this target by reducing our like-for-like energy consumption by 5.8 percent and cutting our carbon impact by 5,565 tonnes of CO2. We know that there are still further energy reductions to be realised and have set ourselves a challenging new target of a 20 percent energy reduction by 2020 against a 2013 baseline. Throughout the last year, our new Facilities Management service partner has been implementing innovative energy-led maintenance plans across our buildings. A key part of our carbon management strategy is energy efficiency coaching for our colleagues and service partners. Over 70 percent of the power used in our UK property portfolio is supplied by the airport operators, which makes collaborative working 7 SESAR is the European air traffic control infrastructure modernisation programme. Its aim is to develop a new generation of air traffic management system capable of ensuring the safety and fluidity of air transport worldwide. 8 TBS is a new method to separate arriving aircraft at Heathrow by time instead of distance which will reduce delays and cancellations due to high headwinds. 27 British Airways Sustainability Report 2013

28 with our landlords on energy reductions both mutually beneficial and rewarding. In 2013 we joined the newly formed Heathrow Sustainability Partnership Energy Working Group. Through this working group we share energy reduction best practice with other airport tenants and operators, helping to guide airport energy projects and metering strategies, in turn delivering the quickest and most sustained energy savings. Our ongoing buildings consolidation strategy has also helped meet our energy reduction targets. By relocating staff and processes into refurbished and more energy-efficient buildings we have achieved meaningful savings. originating from sustainable sources. We have set the aspiration to have zero deforestation risk from the products that we use and offer to our customers. As part of our submission to the Carbon Disclosure Project we report consumption of commodities that drive deforestation, such as palm oil, soy, beef, timber and biofuels. In 2012 our forest footprint was estimated as a minimum of 193 acres, compared to 127 acres in This increase is due to refinement of the calculation methodology. Forest footprint by commodity (acres) in 2012: In addition to a focus on mitigation of Avoiding deforestation Deforestation is responsible for around 18 percent 58 TIMBER Target: Reduce the effects of climate change along our supply chain BEEF PALM SOY of global carbon emissions and its avoidance is widely regarded as one of the fastest and most cost effective ways to reduce emissions. British Airways has an impact on deforestation indirectly through products that we consume and offer to customers, including food. There is also a risk of deforestation caused by some input feedstocks used to produce biofuels 9. For this reason we only support advanced, second generation low-carbon fuels that have low or no risk of deforestation. deforestation risk from commodities, an important mechanism for avoiding deforestation is valuing the standing forest appropriately through carbon markets. Significant progress has been made in developing REDD+ 10 credits as an additional instrument to meet obligations in carbon trading markets. There is an opportunity for our industry to support these instruments in the development of a global market-based measure to achieve Carbon Neutral Growth targets for the aviation sector. Through engagement with our suppliers, we have sought to quantify our forest footprint and the extent to which products are certified as 9 The risk of increasing pressure on global deforestation by using energy crops as a feedstock to produce biofuels is an example of negative Indirect Land-Use Change (ILUC). 10 REDD+: Reducing Emissions from Deforestation and forest Degradation in Developing countries: and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries. 28 British Airways Sustainability Report 2013

29 Next steps: Work with suppliers to: Improve completeness and accuracy of our forest footprint data and expand data capture from overseas suppliers. Encourage the use of more sustainable alternatives from certified sources. Promote REDD+ as a cost effective option for meeting future global aviation targets Customer carbon fund Targets: Provide option for customers to support low-carbon initiatives in the booking process on our main website, ba.com. Develop up to four projects a year. For the last two years, British Airways customers have been supporting a range of community-based sustainable energy projects across the UK through their donations to the Carbon Fund. Our fund charity partner, Pure Leapfrog, provides valuable advice and funding for community schemes in the form of low interest loans supplemented by grants. British Airways and Pure Leapfrog work collaboratively to identify community-based projects that have a strong social impact. Pure Leapfrog has support from the governmentbacked social investment organisation Big Society Capital (BSC) 11 that enables funds from BSC to supplement passengers donations. Projects not only reduce carbon emissions, but also reduce energy bills and attract government subsidies like the Feed-in Tariff 12 and Renewable Heat Incentive 13. We continued our focus on community-led sports facilities in 2013 with our third project: supplying a biomass boiler to Camelford Leisure Centre in Cornwall. The centre provides much-needed services to the community, offering a 20 metre swimming pool and a sports hall with a range of health and fitness activities. The leisure centre would not have been financially viable in the medium to long-term without the installation of the biomass boiler which helps to keep costs down. The boiler uses wood pellets sourced from local sustainably managed forests within Cornwall. The pool serves eight local primary schools that depend on the centre for their sport activities. The community benefit for this project is estimated to be around 615,000 over the project s life with a lifetime carbon reduction of 2,300 tonnes. In Belfast, Action Renewables 14 worked with Lough View School to install a solar PV system to supply renewable energy to the school and provide valuable educational resources. Lough View was one of the first integrated primary schools in Northern Ireland. The school provides an environment where children of Catholic, Protestant and other religions and backgrounds can learn and play together. Income generated by the installation will be used to support Action Renewables charitable activities as well as further environmental projects at the school. 11 For more information, please see 12 For more information, please see 13 For more information, please see 14 Action Renewable is a Belfast based organisation of renewable energy experts, their aim is to facilitate, educate and advise public and private bodies on renewable energy. 29 British Airways Sustainability Report 2013

30 WHO WE ARE Solar panels installed at Lough View School funded through the Carbon Fund: IMPACT. enjoyment of the natural environment and encourages people of all ages and abilities to explore and discover nature. Set in 2.5 acres in Iver Heath, Bucks, the centre offers a range of facilities and activities for young people, families and people with disabilities. The centre can now take advantage of Solar PV with an estimated total community benefit of 29,868 and a lifetime carbon reduction of 68 tonnes. Solar panels installed at the Iver Environment Centre funded through the Carbon Fund: The community benefits for this project are estimated at 54,000 over the lifetime of the project with a lifetime carbon reduction of 130 tonnes. Our fifth project is located within walking distance from our Headquarters near Heathrow at a school in the village of Harmondsworth. In 2010, the school joined the Eco-Schools15 initiative and has carried out a number of projects to educate children about recycling and waste reduction, as well as undertaking recording and monitoring measures as an integral part of the programme. Thanks to donations through the Carbon Fund, we installed low energy LED lights in the classrooms. The community benefit calculated for the LED lights is around 49,300 with a lifetime carbon reduction of 120 tonnes. Our most recent project for 2013 is also not far from Heathrow. Iver Environment Centre offers a range of activities that promote awareness and Next steps: We have more school and community projects planned in the UK during 2414 and we also will be taking the carbon fund overseas to help communities near Mombasa, Kenya. 15 Eco-schools is an international award programme that guides schools on their sustainability journey providing a framework to help embed these principles into the heart of school life. 30 British Airways Sustainability Report 2013

31 5.4 FLEET AGE RENEWAL As of December 31st 2013, our fleet comprised 280 aircraft, compared to 271 on December 31st This increase is due to the introduction of Airbus A380 and Boeing 787 aircraft, as well as taking delivery of two new Boeing 777 and three new Airbus A320s. The Boeing 737, 747, and 767 fleets have started to reduce in size following replacement by newer aircraft types. The average age of the fleet in December 2013 was 12.8 years. The table below shows the current British Airways fleet, our expected fleet for 2016, and planned deliveries. emissions, were key considerations in choosing Airbus A380 and Boeing 787 aircraft, as they are cleaner, quieter and more efficient than the aircraft they replace. Adding them to our fleet will contribute significantly towards our targets on noise, air quality and carbon efficiency. The Boeing 787 is 20 percent more fuel-efficient than the Boeing 767 it is replacing. The Airbus A380 is 16 percent more fuel-efficient than the Boeing 747 it is replacing. The first of our new Airbus A380 and Boeing 787 aircraft arrived during 2013, and will offer substantial improvements in terms of environmental impact and experience for our customers. Although the overall size of our fleet will not change significantly between now and 2016, by this time many of our older and less efficient aircraft will have been taken out of service and replaced by the next generation of aircraft. Environmental performance, including noise and British Airways aircraft fleet: Aircraft Total planned deliveries post 2013 Airbus A320 family Airbus A Boeing Boeing Boeing Boeing Other Total fleet British Airways Sustainability Report 2013

32 5.5 NOISE We recognise that whilst providing an economically vital service, our operations also create noise impacts for communities around the airports we operate from. This is particularly true of our home base at Heathrow which is one of the world s busiest airports, located to the west of the large population centre of London. Minimising these noise impacts has been a central aspect of our environmental policy for many years. Our work is organised into four key themes: Improving global noise standards: international noise standards are agreed at the Committee on Aviation Environmental Protection (CAEP); a body within the International Civil Aviation Organisation (ICAO). We were active participants in the 3- year international effort to develop the new Chapter 14 noise standard through our work on the ICAO CAEP Working Group 1. This new standard comes into force from Target: Reduce average noise per flight by 19 percent by 2418 compared to Purchasing quieter aircraft: the noise performance of each competing aircraft has been a significant factor in our fleet replacement process. We have announced firm orders for 84 aircraft, substantially improving the noise performance of our fleet and enabling the future retirement of our noisiest aircraft, the B Using best practice operational procedures: new technology and operational concepts can further reduce noise impacts. In the last 2 years we have introduced quieter approach procedures on our Airbus and B737 fleets and plan to extend these further across our operation. We also make widespread use of Continuous Descent Approach (CDA) procedures that reduce fuel burn and noise when approaching to land. Additionally, we have completed evaluations of steeper approach angles and a variety of new procedures that use the new navigational accuracy available to modern aircraft. Working in partnership across the industry: many noise issues are complex and require support from airlines, airports, manufacturers and air traffic control agencies to bring lasting improvements. We are active members of a number of such groups, in particular the widely respected Sustainable Aviation (SA) group in the UK Heathrow FlyQuiet programme In 2013 Heathrow Airport Ltd published its first FlyQuiet Report 16 which included a league table ranking airlines according to their noise performance across six noise metrics. The British Airways short haul fleet was ranked 1st and the British Airways Long haul Fleet was ranked 10 th out of 50 airlines in quarter 4 of These rankings reflect the investment we have made in our fleet as well as the consistent high level of compliance with local operational procedures, requirements and restrictions. Our long haul fleet ranking is expected to improve in the near term, thanks to the delivery of new aircraft as part of our fleet replacement programme. 16 For more information on the Heathrow FlyQuiet Programme see: flyquiet-programme 32 British Airways Sustainability Report 2013

33 5.5.2 Sustainable Aviation Noise Roadmap In 2013, Sustainable Aviation (SA) published a Noise Roadmap 17 which, for the first time, projects how noise from a growing number of flights would be offset by increasingly quiet aircraft technology. The projections used expert assessments of future noise performance from aircraft and engine manufacturers, combined with UK Government forecasts for passenger travel. The main conclusion was that UK aviation is able to accommodate significant growth in air transport movements to 2050 and at the same time achieve a potential reduction to UK aviation s total noise output, compared to The SA Roadmap also provided a toolkit of noise reduction measures that can be employed at airports as well as recommendations on providing better noise information to communities Managing noise at airports In 2001, the International Civil Aviation Organisation (ICAO) introduced the Balanced Approach, a framework with four principle elements that defines the best way to manage noise issues at individual airports. This approach has now been incorporated into both European The Sustainable Aviation noise roadmap: Source: The SA Noise Roadmap A Blueprint for managing noise from aviation sources to Full Noise Roadmap and summary are available from 33 British Airways Sustainability Report 2013

34 and UK legislation. The four principle elements of the Balanced Approach are: Reducing Noise at Source. Land Use Planning and Management. Noise Abatement Operational Procedures. Operational Restrictions. British Airways strongly supports the use of ICAO s Balanced Approach for noise management and works in partnership with industry, community, air traffic control and airport partners to deliver these improvements. Reducing noise at source Aircraft and engine manufacturers have made significant improvements in the certified noise levels of aircraft in recent years, through design improvements and research into innovative technologies. According to the International Civil Aviation Organisation Environmental Report 2010, aircraft produced today are 75 percent quieter than those of 50 years ago 18. Since the 1960s, ICAO s Committee on Aviation Environmental Protection (CAEP) has set international aircraft noise standards. Each successive ICAO aircraft noise standard has been increasingly stringent and aircraft manufacturers must demonstrate that their aircraft comply with the standards, at the date of manufacture, through a rigorous noise certification process. British Airways fleet meets the current Chapter 4 noise standards 19. It also indicates that 50 percent of the British Airways fleet already meets the future Chapter 14 noise standard, that is due to be introduced in Percentage of British Airways fleet that meet each noise technology standard: 100% 80% 60% 40% 20% 0% 100% 94% 50% Chapter 3 Chapter 4 Chapter 14 British Airways has made significant investment in its fleet replacement programme and since 2007 has placed firm orders for delivery of 84 new aircraft within the next decade. These new aircraft are quieter than the older aircraft they will replace. Deliveries have already begun with the first of our new Airbus A380 and Boeing B787 aircraft joining our fleet in We are now entering a period of significant fleet renewal which will further improve the number of aircraft in our fleet that meet the most stringent noise standard (Chapter 14). Despite the number of of older aircraft operating in the British Airways fleet, manufactured before the Chapter 4 stringency was introduced, the following chart shows that 94 percent of the These noise standards define the maximum permitted noise level that an aircraft of a specific weight and engine configuration can generate during a defined test procedure. Actual noise levels are measured during flight tests at three points on a specified flight trajectory ( Lateral or Sideline, Flyover and approach ) and compared with the maximum permitted noise level. The current noise standard is known as Chapter 4 and is applicable to aircraft manufactured from 1 January The next noise standard, known as Chapter 14, has already been defined and will be applicable for aircraft manufactured on or after 31 December British Airways Sustainability Report 2013

35 Cumulative Margin to Chapter 3 (EPNdB) QUIETER WHO WE ARE Aircraft noise certification cumulative margin from Chapter 3 of British Airways current fleet: The aircraft noise certification cumulative margin 20 of British Airways current fleet are reflected in the chart above. Due to both the age of the aircraft and their noise performance, British Airways has committed to retiring the remaining s within the next 2 years. Land use and management Data provided by Heathrow Airport Ltd has shown that the aviation industry has been able to reduce the size of the 57 db Laeq noise contours around Heathrow by approximately 52 percent between 1991 and Unfortunately, even within the new, reduced contour area, the number of households has increased from 87,900 to 101,450, an increase of over 13,000 households over the same period. We recognise this is a complex problem and that the provision of housing is also a national priority. However, we believe there is considerable scope to improve the UK s approach to land-use in the vicinity of busy airports. Operational procedures There are a range of operational procedures that have the potential to help reduce noise but their applicability is dependent on the specific circumstances at a particular airport e.g. local population density and distribution, runway configuration, local air traffic management systems capabilities, local airspace constraints and airport infrastructure. 20 The summation of the difference between the measured noise level and the permitted maximum noise level at each of the three noise certification points is known as the Cumulative Margin. It is the Cumulative Margin (along with some additional requirements relating to the differences at each of the measurement points) that defines whether an aircraft meets the noise certification standard. (Note: The greater the cumulative margin, the better, or quieter, the aircraft is compared to the standard). 35 British Airways Sustainability Report 2013

36 We are committed to adopting best practise noise abatement procedures throughout our operation. Slightly steeper approach For the last 2 years we have been developing and testing the feasibility of slightly steeper approaches. We have flown numerous approaches in the flight simulators at our Cranebank Flight Training centre. These have shown that the best descent angle for the current fleet of aircraft in use today is approximately 3.2 degrees (a normal descent gradient would be 3.0 degrees). This descent angle gives the best combination of noise benefits whilst maintaining the high safety standards we set for our operation. We will now continue to develop these procedures and seek to deploy them in our operation if they prove to be feasible. Continuous descent approach A Continuous Descent Approach (CDA) reduces the noise heard at ground level by up to 5 dba SEL 21 when compared to a conventional or stepped approach, as the procedure requires less thrust and typically ensures that the aircraft remains higher for longer. CDAs are the preferred procedure on all British Airways arrivals across the network; we continue to achieve high levels of success in employing this technique consistently. CDAs are not always possible e.g. due to adverse weather or due to limitations at particular airports but we continue to work with our industry partners to increase provision. At Heathrow in 2013, 96.2 percent of British Airways flights during the day and 97.4 percent of British Airways flights during the night 22 performed Continuous Descent Approaches. This compares with an airport average of 86.6 percent of flights during the day and 95.3 percent of flights during the night. Low Power Low Drag Whilst the priority is always to ensure a safe approach to an airport, it is possible to optimise the landing flap used and to delay the deployment of landing flaps and landing gear to minimise noise on approach. These are referred to as Low Power Low Drag procedures. All British Airways fleets approach procedures have been reviewed. Since mid 2012, improved Low Power Low Drag approaches have been in use on our Airbus and B737 fleets i.e the vast majority of our short haul operations. Further improvements have been identified for the remainder of our fleet and are currently in the process of testing and approval. Noise abatement departure procedures Noise Abatement Departure Procedures have been developed for all British Airways fleets. These specify how to manage engine thrust and aircraft climb profile to manage noise on the ground. These procedures are adopted at specific airports where a noise problem has been identified. Advanced operational procedures There is a range of advanced and novel operational procedures that could be available in the near to mid-term and British Airways is committed to working with interested partners and stakeholders to investigate these opportunities. Since 2011, we have also worked with Heathrow, National Air Traffic Services (NATS) and local community group representatives to development the following trials: Heathrow Early Morning Arrivals Trial 23. This trial created noise respite periods on a weekly basis, under the approach flight path and was completed in March Alternating Departure Route Trials. This 21 Noise from Arriving Aircraft Arrivals Code of Practice, September 2011 (Noise benefit depends on aircraft type and position along approach path). 22 Night (Core Night) = ; Day (Day + Shoulders) = British Airways Sustainability Report 2013

37 trial created two parallel departure tracks and alternated their use on a weekly basis, creating respite periods for those under the aircraft flightpath. These trials started in December 2013 and will conclude in June The aim of such trials is to establish the technical feasibility, operational practicality and noise reduction benefits of these advanced procedures. With information and experience gained from conducting trials, it is possible to identify what is possible and beneficial in terms of noise. With investment and development in airspace design, enhanced airport infrastructure and the proliferation of advanced aircraft navigation systems, it is conceivable that other novel operational procedures could be adopted. These include: Displaced landing thresholds (landing further along the runway to move aircraft noise further away from the local community). Segmented steeper approaches (flying a steeper initial approach to increase the altitude of aircraft above the community). Curved approaches (to route aircraft around areas of dense population). Ground operations British Airways has adopted the following procedures in order to minimise the noise and emissions produced by our ground operations: Minimising use of reverse thrust on landing: all British Airways aircraft use idle reverse as standard during landing, varying this only when safety considerations require higher reverse thrust levels. Reduced Engine Taxi (RET): reduced engine taxi means taxiing using less than all engines i.e. using one engine on a twin engine aircraft and using three engines on a four engine aircraft. The use of reduced engine taxi procedures has benefits in terms of both ground noise and emissions produced by the engines and British Airways has adopted this as standard procedure on our Airbus A320 family of aircraft and B fleet. However, it is not possible to use this procedure on all British Airways fleets due to safety considerations (e.g. risk of jet blast from the single operating engine on large twin engine aircraft). Use of fixed Electrical Ground: in order to reduce ground noise it is British Airways standard procedure to use fixed electrical ground power and pre-conditioned air as this negates the requirement for prolonged or unnecessary use of main engines or the aircrafts Auxiliary Power Unit (APU). Operational restriction Whilst Operational Restrictions are part of the Balanced Approach, their use is intended to be as a last resort. If such restrictions are used, an airport will develop a process of advising airlines of any infringements. Airlines will then investigate each report to identify contributory factors, trends and root causes. Where necessary, corrective actions are put in place e.g. advisory communications to pilots or improvements to the design of airspace of flying procedures. Average sound energy indicator In order to demonstrate our ongoing commitment to reducing the noise impact of our operations across our network, we have introduced an additional measure of the noise we produce in our operations; the Average Sound Energy Indicator. This measure has been developed to take into account the noise certification levels of each aircraft, as well as the number of movements operated by each aircraft across the network. The Average Sound Energy Indicator is calculated based on certified noise levels (reflecting the noise performance under test conditions at set locations relative to the arrival and departure flight path), rather than trying to reflect operational noise levels (that vary on a flight by flight basis 37 British Airways Sustainability Report 2013

38 LHR Noise Infringements Average Sound Energy Indicator per Movement Millions WHO WE ARE depending on aircraft, airfield and atmospheric conditions and the location of the observer). Using certified noise levels enables a year-on-year comparison to be made of average noise across the network without having to account for changes in procedures and the day-to-day variations. As can be seen in the chart below, the Average Sound Energy Indicator has reduced over the last 3 years as a result of the introduction of quieter aircraft into the fleet and reflects the significant investment British Airways has and continues to make in new aircraft technology. Average sound energy indicator: ,271 1,210 1, Heathrow noise infringements Whilst endeavouring to minimise noise through the adoption of appropriate operational procedures and observance of local restrictions, British Airways incurred a number of departure noise infringements 24 at Heathrow in However, as illustrated in the chart, the number of noise infringements incurred by aircraft departing from Heathrow in 2013 decreased to 28 compared to 33 noise infringements in The flights that caused a noise infringement represent 0.02% of all British Airways Heathrow departures, compared to 0.03% in All infringements this year were caused by 747 departures. British Airways Heathrow departure noise infringements by year, by period 25 : Night Shoulder Day 24 Departure noise level limits at Heathrow vary depending on the time of the departure. Noise levels of each aircraft departure are measured and monitored by Heathrow Noise and Track Keeping System. If an aircraft exceeds the maximum noise levels permitted on departure, Heathrow send a noise infringement notification and imposes a Departure Noise Surcharge or fine. 25 Heathrow Departure Noise Levels vary by operating period, defined as follows: Day Shoulder Night ; 94 dba Lmax and ; 89 dba Lmax ; 87 dba Lmax 38 British Airways Sustainability Report 2013

39 Next steps: Continue to reduce our impact on noise through fleet purchasing decisions, better operational procedures and collaboration with airports, local communities and manufacturers. Support efforts to improve the accuracy of modelling and forecasting for effects on noise. Support appropriate regulation at national, European and International level. Continue to contribute to the ongoing UK Government consultation on the future night flights regime for Heathrow, Gatwick and Stansted airports. Continue to investigate availability of cost effective and noise beneficial aircraft modifications. Continue to support trials into improved operational procedures with particular focus on reducing noise impacts during approach and departure. 5.6 LOCAL AIR QUALITY Target: Minimise impacts of aviation emissions on local air quality. Local air quality near airports is affected by emissions from many sources both on and off the airfield. These sources include emissions from diesel and petrol vehicles and aircraft operations on the airport, as well as emissions from domestic, commercial and industrial processes in the local area. These emissions can have an adverse effect on both human health and the environment. The Project for Sustainable Development of Heathrow found that emissions from aircraft have a lesser impact on local air quality outside the perimeter of the airport in comparison to other sources. However, we are committed to minimising the impact of our aircraft operations on air quality and are introducing new aircraft with engines that have improved emissions performance compared to older engines that they replace. This is achieved through our fleets renewal programme as well as by adopting operational procedures that minimise emissions Better understanding of aircraft emissions and local air quality impacts At Heathrow, our main operating base, air quality is monitored both by Heathrow Airport and Local Authorities through real time air quality monitoring and through emission inventory and dispersion modelling. British Airways works with these stakeholders to better understand our contribution to the overall impact of the airport on local air quality. In 2013 British Airways also supported several initiatives aimed at developing a better understanding of aircraft emissions and their impact on local air quality. One of these projects was the NERC funded Sensor Network Air Quality project at Heathrow (SNAQ-Heathrow) lead by Cambridge University 26. We supported the project by providing proprietary data relating to aircraft movements, to enable evaluation of emissions data from the network of sensors around Heathrow airport and the associated analysis and modelling. 26 For more information see 39 British Airways Sustainability Report 2013

40 5.6.2 Aircraft emissions A number of emissions are produced by jet engines that impact local air quality, including Oxides of Nitrogen (NOx), Carbon Monoxide (CO), Unburnt Hydrocarbons (UHC), Particulate Matter (PM) and other substances including Oxides of Sulphur (SOx) and trace elements. Certain emissions from aircraft jet engines are regulated through the International Civil Aviation Organisation s (ICAO) Committee on Aviation Environmental Protection. Manufacturers of jet engines over a certain size (thrust) have to demonstrate that the emissions of aircraft meet set standards in order for the engine to be certified. The emissions currently certified are: NOx CO UHC Smoke NOx Emissions Historically, NOx emissions have been of particular concern and successive CAEP standards have reflected the technological advances made by engine manufacturers in reducing NOx emissions. The current CAEP emissions standard is known as CAEP 8 and is applicable for large engines certified from The percentage of engines compliant with the latest CAEP standard will increase as we introduce the new, cleaner engines into our fleet and retire the older engines. The A s Rolls Royce Trent 970 engine is 15 percent better than the latest CAEP 8 NOx standard whilst the s Rolls Royce Trent 1000 engine is 19 percent better. In 2013 we have made an assessment of NOx emissions from our aircraft operations at Heathrow. We have assessed global emission below 1000 feet generated during the approach, landing and taxi-in phases of all British Airways flights, based on the ICAO Landing and Take-off (LTO) cycle. However, as recommended in ICAO s methodology for assessing Air Quality at Airports, we have adjusted the standard ICAO LTO cycle calculations to reflect how we actually operate our aircraft. This includes adjusting for average actual taxi times and thrust settings, leading to better accuracy of the calculations. Aircraft NOx emissions: This table shows that in 2013 NOx emissions from British Airways Heathrow operations have only increased by 7.1 percent compared to 2012, despite a 9.9 percent increase in movements. Also, our NOx emissions per turnround have decreased Heathrow NOx Emissions below 1000 foot (tonnes) NOx emissions per turnround (tonnes) by 2.6 percent compared to This improvement is a result of the introduction of new aircraft into the fleet including the A and during Reducing emissions In addition to significant investment in new aircraft with improved emissions performance, British Airways is committed to adopting operational procedures that minimise emissions. This includes procedures that minimise the use of main engines (for example reduced engine taxiing), optimising take-off thrust, and minimising the use of the integrated aircraft Auxilliary Power Unit (APU). British Airways has been working with Heathrow Airport and other airport authorities across our network to ensure that appropriate ground based systems for the provision of aircraft power and air 40 British Airways Sustainability Report 2013

41 conditioning are available in order to minimise the use of the aircraft APU. concern is addressed, whilst ensuring that the other impacts are minimised as far as possible Trade Offs It is important to note that there is often a tradeoff between different environmental impacts particularly in terms of fuel burn, noise and emissions. For example, a procedure that reduces aircraft noise on departure may in fact increase emissions and fuel burn. British Airways seeks to make appropriate decisions in these situations, to ensure that the environmental impact of greatest Next steps: Continue to reduce our impact on air quality, through fleet purchasing decisions, better operational procedures and collaboration with airports and manufacturers. Support scientific research into aviation s contribution to particulate matter and NOx emissions, and other effects on air quality. Support efforts to improve the accuracy of modelling and forecasting for effects on air quality. Support appropriate regulation at national, European and International level. 41 British Airways Sustainability Report 2013

42 5.7 WASTE RECYCLING Targets: 64 percent recycling by 2419 at our main bases of Heathrow and Gatwick. Increase level of recycling of onboard waste. Our UK offices are fully equipped for collecting, segregating and recycling paper, cardboard, glass, aluminium cans, plastic bottles and batteries. In our cargo areas, we collect large amounts of cardboard, polythene sheeting and wood, and our engineering facilities recycle metals, fluorescent tubes, oil, wood, plastics, tyres and textiles. British Airways aims to minimise waste, reduce disposal to landfill, and increase levels of reuse and recycling. Where we cannot prevent the creation of waste as part of our operations, we will manage its disposal responsibly, recovering energy and resources wherever possible. In 2013 we recycled 45 percent of our waste at our main bases of Heathrow and Gatwick, the same as the previous year. Our target to reach 60 percent recycling by 2015 remains unchanged. We process our nonrecyclable waste at Heathrow and Gatwick through a nearby waste-to-energy plant. The remaining residual waste once recyclables have been removed, is fed into twin furnaces. Heat generated by incineration is used to power a steam turbine that generates some 38 MW of electricity. After combustion, any remaining ferrous and non-ferrous metals are extracted from the inert ash, which are then used as a substitute for natural aggregate. In 2013, British Airways disposed of 1,656 tonnes of waste through the plant. Only 5.7 percent of our total waste at Heathrow and Gatwick, managed by contracts, is sent to landfill. We continue to work with our service partners at Heathrow and Gatwick to find better ways to dispose of residual waste that cannot be incinerated, and find alternatives to landfill at our other locations where infrastructure or alternative techniques allow Our recycling initiatives Case study: recycling and reusing our aircraft interiors British Airways Interior Engineering (BAIE) has a waste minimisation scheme. Last year s figures show that on average BAIE recycled 95 percent of their total waste. This is a figure they plan to improve on throughout 2014, with a view to achieving zero to landfill in the second quarter. BAIE have adopted a new method of packaging waste on site to reduce the amount of waste collections, reducing transportation costs. Aircraft components from various sectors of the airline are sent to BAIE to be assessed. There it is determined if that component can be repaired and reused. Any components that can be reused are cleaned, repaired and re-certified before reentering the supply chain Onboard recycling At the beginning of 2012, we launched segregation and recycling of aluminium drinks cans on short haul outbound flights from Heathrow. We have recently introduced the use of bespoke recycling bags to segregate drinks cans, plastic and glass bottles on all short haul flights outbound and inbound to Heathrow. In 2013, we started to recycle drinks cans onboard our inbound long haul services at Heathrow and Gatwick. We plan to recycle additional materials on our long haul services such as plastic bottles. In the following table, you will find our onboard recycling launch dates. Our aircraft cleaning partner continues to recycle 42 British Airways Sustainability Report 2013

43 newspapers from our inbound flights into Heathrow and Gatwick, and we expect to extend this to other locations as facilities and regulations permit. Onboard recycling launch dates: Heathrow long haul Heathrow short haul Inbound April 2013 * Outbound January 2014 January 2012 Gatwick long haul July 2013 * Gatwick short haul ** ** Notes: * Not currently possible because of strict regulations controlling international catering waste. ** Under review for introduction in Our catering partner Gate Gourmet London Heathrow long haul operation Gate Gourmet continues to demonstrate its commitment to minimising its impact on the environment and has improved its waste management throughout Applying the principles of the waste hierarchy, Gate Gourmet sends international catering waste to the nearby energy from waste plant preventing over 8,000 tonnes a year of waste ending up in landfill. As well as the significant environmental benefits of preventing waste going to landfill, this also achieves considerable carbon savings. Gate Gourmet has increased levels of mixed recycling by 50 percent in 2013, compared with 2012 levels. Materials recycled include supplier packaging, used cooking oil, glass from inbound bar carts, cardboard, plastics, paper, used menu cards and wine lists. Gate Gourmet continues to work with its supply chain to minimise packaging and waste. Throughout 2013, Gate Gourmet continued to work closely with British Airways on the long haul onboard recycling of aluminium cans. Gate Gourmet was the recipient of a British Airways One Destination Award in recognition of improvement in waste and recycling Our catering partner Alpha Flight UK London Gatwick long haul & short haul operation During 2013 we worked with Alpha Flight UK, our London Gatwick catering partner, to introduce the recycling of drinks cans from long haul services inbound to Gatwick. Combined materials recycled increased to 304 tonnes (+44 percent) Our catering partner DHL London Heathrow short haul operation 2013 also saw DHL Supply Chain, our Heathrow Short Haul catering partner win two Mercury Awards at the International Travel Catering Association ceremony. The awards acknowledge DHL s unique waste management and recycling processes. This involves utilizing the application of food waste-drying technology to support our target of zero waste to landfill as well as removing associated carbon emissions with reduced disposal transport. In 2013, DHL Supply Chain recycled 930 tonnes of combined materials from British Airways operations. A significant proportion of this material is captured through an onsite materials recovery facility. 43 British Airways Sustainability Report 2013

44 Cubic metres WHO WE ARE Next steps: Continue to work with our suppliers and catering providers to reduce the amount of waste at source by looking at the volume of packaging and order quantities and increasing recycling. Extend onboard recycling to include our Gatwick short haul operation both inbound and outbound. 5.8 WATER In 2013, we worked to improve our data tracking of water consumption and we also reviewed our water scarcity impact and associated risks. In 2013 the water footprint of British Airways UK operations was 232,524 cubic metres. Throughout 2013, we continued to drive down our water consumption across our buildings and are now using almost 20 percent less water than we were in By refining our automatic monitoring and targeting systems we are now able to more swiftly highlight abnormal consumptions and limit water wastage through leaks and faulty controls. Our benchmarking system also allows us to identify water saving opportunities across our estate and rank them in order to maximise savings. UK water consumption: 300, , , , ,000 50, , , , Note: This figure only includes water consumption used in our buildings and does not include potable water uploaded to aircraft. 5.9 BIODIVERSITY Harmondsworth Moor is a 250 acre (101 ha.) parkland site owned by British Airways located near Heathrow airport. The parkland is open to the public and holds the UK Wildlife Trusts Biodiversity Benchmark award for the high standards of its biodiversity management. The parkland consists of extensive grasslands, immature woodlands, rivers and other wet habitats. The various habitats are managed to encourage their overall diversity and as habitats attractive to species such as song thrush, cuckoo and skylark, UK red-listed bird species of conservation concern. During 2013 an adjacent waste/scrapyard site of approximately.80 acres (3.2 ha.) was remediated and added to the parkland and opened to the public as new wetland habitat. 44 British Airways Sustainability Report 2013

45 WHO WE ARE 6 IMPACT. 6.1 Community context Community goals and targets Sustainable communities Volunteering Community learning centre British Airways Sustainability Report 2013

46 6.1 COMMUNITY CONTEXT As an airline we connect people, cultures and communities across the globe. British Airways takes its social obligations seriously and we recognise that flying provides a unique opportunity for us to get people and goods to places where they need to be, making a difference to communities across the world. We aim to positively contribute to Enriching Livelihoods and Communities. This is a central pillar of our overarching sustainability strategy. Our work with people and communities locally, nationally and globally is focussed around three key areas: British Airways is proud to be able to make a difference to the lives of people in the communities we serve by: installing solar panels on local leisure centres through our Carbon Fund; supporting children leading tough lives in the UK and abroad through Flying Start, our partnership with Comic Relief; educating future generations through our Community Learning Centre. British Airways continues to support communities in the countries where we operate through our partnerships with a network of UK charities. In 2013 we partnered with 40 community and conservation organisations that have benefited from flight bursaries, excess baggage, merchandise, cargo space and fundraising events. 1. Being A Good Neighbour (Volunteering & Flying Start). 2. Education and Talent (Community Learning Centre, Apprenticeships and the Graduate programme). 3. Building Sustainable Communities (British Airways Community and Conservation Programme and the Customer Carbon Fund). Apprentices climb Ben Nevis to raise money for Flying Start: 46 British Airways Sustainability Report 2013

47 6.2 COMMUNITY GOALS TARGETS COMMUNITY GOALS TARGETS Goals Targets and actions Progress in 2013 Sustainable communities: continue our investment in the communities we serve, and develop strong relationships with our charity partners. Sustainable communities: increase volunteering. Assess total contribution to communities and charities using the BITC model. Continue to build on the Flying Start partnership with Comic Relief, aiming to raise 6 million by the end of New target: 2.3 million raised for Flying Start in 2014; 10 million by 2015 (from 2010). Further develop the Community Learning Centre (CLC) and grow the talent pipeline. New Targets: Aim to engage 100,000 young people through activities at the CLC and through school based presentations by 2016 and 7000 children to visit the CLC annually. 5 percent of colleagues to volunteer by 2014; 10 percent by 2015 (excluding Cabin Crew). In 2013, we reached 7.5 million. Achieved 6.7 million in Over 7,000 young people participated in programmes at the CLC in Total number of young people reached both in the CLC and through school based presentations to date = 90,969. Since July 2013, 700 colleagues have volunteered. 47 British Airways Sustainability Report 2013

48 6.3 SUSTAINABLE Flying Start Target: Assess total contribution to communities and charities using the BITC model. Target: Continue to build on the Flying Start partnership with Comic Relief, aiming to raise 6 million by the end of New target: 2.3 million raised for Flying Start in 2414; 14 million by 2419 (from 2414). Flying Start is British Airways corporate charity partnership with Comic Relief UK. The aim of the partnership is to raise money for children both in the UK and overseas who have experienced challenge and hardship in their lives. The partnership began in June 2010 with the aim of raising 6 million by December As a result of the generosity of both our customers and colleagues we exceeded our target raising in excess of 6.75 million by December Colleagues from across the business have also participated in numerous fundraising activities and they have raised over 124,000 for Flying Start. funds for Flying Start in We have over 3,500 Flying Start cabin crew champions who actively make the announcements and collections on board our flights. Our customers have generously donated their unwanted coins on board our flights. Over 8 million envelopes are produced annually enabling us to collect their donations. In 2013, AVIS sponsored the production of the envelope and we are working together in 2014 to explore further opportunities to partner in support of Flying Start." In addition, customers have been making on-line donations at ba.com and through those donations we have raised 200,000 which has contributed to our overall total of 6.75million Wentworth Annual Gala Ball We hosted two customer and supplier events at the prestigious Wentworth Golf Club in aid of Flying Start raising over 270,000. Red Nose Campaign In March 2013, the Red Nose Day campaign saw British Airways set two world records at 43,000 feet on board a Boeing 767 for the Highest Harlem Shake and the Highest 80s Concert in the Sky featuring Tony Hadley and Kim Wilde. British Airways raised 2million for the Red Nose Campaign which was featured on the BBC. Thirty cabin crew from across all fleets raised over 15,000 by walking Hadrian s Wall. Over 40 apprentices from Engineering in Glasgow, Cardiff and Heathrow raised 12,000 by climbing Ben Nevis. Our colleagues in Operations walked from Brighton to Big Ben raising over 18,000 and overall they have raised 74,000 by running marathons, organizing regional events, sponsored walks and cake sales. Nearly 700 colleagues on the ground have raised 48 British Airways Sustainability Report 2013

49 Project visits Our executive chairman Keith Williams paid his second visit to Ghana visiting Gliffe, a thriving community just outside Accra, to see how funds raised for our vaccines campaign were being used. Our aim was to raise 500,000 to save the lives of 100,000 children by March 2013; we achieved our target by January confidence and gain respect through using their sporting abilities. Magic Bus works with children throughout their adolescence. Importantly, girls and boys take part in the project on an equal basis. This improves the self-worth of the girls who take part and helps break down negative stereotypes. Many young people go on to become youth leaders within the project and some stay on as adult mentors, working together to run weekly sports sessions for up to 2,800 children between the ages of seven and nine. The project also links young people into other education and training activities, enabling them to access higher education and employment opportunities. Sierra Leone: Y-Care International Since the partnership began, over 300 colleagues have had the opportunity to visit Comic Relief funded projects both in the UK and overseas. In 2013 we visited projects in Sierra Leone, India, South Africa and the UK showcasing how funds raised were used to support a range of community based projects. The projects we visited included: India: Magic Bus, Mumbai Magic Bus is an organisation that uses sport to engage boys and girls from India s poorest slums, helping them discover their potential and become leaders and role models in their communities. The project provides training and ongoing mentoring and support and a rare chance to play for young people living in extreme poverty. The experience can be life-changing for the children who take part. Taking part in sport programmes provides opportunities for leadership and socialisation, as well as developing their skills to handle success and failure. It also gives young people the opportunity to build Colleagues visited a number of projects in Freetown, Sierra Leone, including Y-Care International which provides training and support for young people in setting up social enterprises. Funds also supported improved access to water and sanitation. Alongside this, the project has also established a nationwide network of women-led savings groups. Transform Africa Transform Africa enables young people and female traders to apply for micro-loans and gain access to training, apprenticeships and employment. UK: The WISH Centre, Harrow, London In 2013, the teams visited seven UK projects including the WISH Centre in Harrow, London, which has gained a national reputation as a model of excellent practice in helping young people who self-harm. Through Comic Relief, funding the WISH Centre is extending its training provision and establishing a comprehensive programme for teachers, health care workers and social care staff who come into contact with young people who self-harm. 49 British Airways Sustainability Report 2013

50 Scotland: North United Communities Underage and binge drinking are more prevalent in communities affected by poverty and disadvantage. North Glasgow is one of the most deprived areas in Europe, with high levels of health and social problems and five times the Scottish average for alcohol and drug related deaths. Since 2006 North United Communities (formerly called the Ruchill Youth Project) have been running a Comic Relief funded alcohol project for young people who drink excessively or are starting to experiment with alcohol. North United Communities main goals are to provide accessible, informal education opportunities and on-going support to help young people develop emotionally and socially. The project offers workshops, one-to-one and group work sessions, together with brief interventions during street work sessions. They deliver services after school, in the evening and on weekends. North United Communities helps young people to address and reduce alcohol consumption, thus enabling them to lead more healthy and positive lives Celebrating our fundraising achievements for Flying Start In December we hosted a number of events across the company to thank our colleagues for all their fundraising efforts. We were joined by celebrities including Emma Freud, Vernon Kay, Shane Ritchie and X-Factor s Jahmene who joined in the fun as well as presenting awards to many of our fundraisers. The Gherkin We welcomed over 120 British Airways customers to the Gherkin to thank them for their generosity and support over the past three years. The evening was hosted by Davina McCall, our former Chairman Sir Martin Broughton and Garry Copeland, Managing Director Combined Operations. Other guests included Richard Curtis, the founder of Comic Relief, Lenny Henry, Jon Culshaw and a number of other celebrities. The evening reception saw Katherine Jenkins perform hits including Jeff Buckley s Halleluiah and Habanera from the opera Carmen by Bizet. She said: It s an honour to perform at such an elegant setting, made even more special by the incredible fundraisers, project workers and supporters in the room tonight. Next steps: We will launch a new Call to Action for Flying Start in April We aim to raise 2.3 million for Flying Start. We will launch Flying Start in America by June British Airways community and conservation programme We have 40 community and conservation partners, all of which are UK registered charities based in communities across our worldwide network. Our main focus is on education, youth development and conservation. We provide flight bursaries, excess baggage and cargo to support our partners in their work. We work closely with these partners to deliver lasting change across our key communities. Here 50 British Airways Sustainability Report 2013

51 are some examples of the partners we worked with in 2013: Cricket for Change Cricket for Change supports disadvantaged young people in the UK and the Caribbean. They use cricket as a tool to engage with them in an educational or community setting. They have developed a network of youth coaches who work alongside the young people to develop their confidence, raise their self-esteem and provide work-related opportunities with partner organisations. As a result of our flight bursary programme, Cricket for Change has been working with Chris Gayle to set up a foundation for young people in Jamaica. They have worked with the Barbados Association for People with Disabilities providing training and support for young people to raise their aspirations and gain access to training and employment. Young people from Cricket for Change were also given the opportunity to participate in a work taster day at our engineering base at Gatwick. In 2014 we hope to develop further opportunities for partnership with them. The David Sheldrick Wildlife Trust The Trust focuses on the conservation, preservation and protection of wildlife. These include anti-poaching, safeguarding the natural environment, enhancing community awareness and addressing animal welfare issues. The main focus of their work is in Kenya. The flights enabled the UK director to attend a high profile fundraising event in Toronto supported by the Margolis Foundation. As a result of the visit the charity was also registered in Canada and enabled them to increase their fundraising opportunities. Our long standing partnership with DSWT has enabled us to engage colleagues and provide them with the opportunity to visit the Trust and see at first hand the excellent work of the organisation. Fauna and Flora International Our flight bursary programme has enabled Fauna and Flora International (FFI) to work with a range of charity partners on conservation projects worldwide. FFI has provided institutional support/training to at least 68 organisations and technical support to an additional 128 organisations. They have also provided focused training to local community partners, helping at least 800 individuals to adapt or improve local livelihoods, or develop new income generation skills. The One Foundation The One Foundation implements water, hygiene and sanitation programmes in some of the world s harshest regions and in countries where over 30 percent of the population live below the extreme poverty line. The flight bursaries allocated to the One Foundation enable the team to visit projects to see the impact of their work and monitor Through the use of our flight bursary programme we welcomed the Trust s head keeper from Tsavo National Park to the Community Learning Centre to work with the children during a global education week to help them address and understand the importance of wildlife conservation and the economic benefit it brings to communities. Photo: Stephen Maud, Cloud 9 Productions 51 British Airways Sustainability Report 2013

52 progress and ensure the sustainability of the programmes. Funds that would have otherwise been used to purchase flights have been channelled into new water projects. The One foundation have presented to colleagues across the business as well as hosting visits to see the work of the Foundation London Gatwick, Scotland, Manchester, Leeds Bradford & London City Gatwick The team at London Gatwick has been actively engaged with their local community. Our engineering colleagues at Hangar 6 hosted a party for the brothers and sisters of children who attend Chestnut Tree House Children's Hospice which is one of our charity partners at Gatwick. Over 20 ground colleagues, cabin crew and flight crew volunteered to help on the day and made the morning really special for the children with a very big British Airways welcome. The team also hosted a Mad Hatters Tea Party for 70 children from Chestnut Tree Hospice in Gatwick s North Terminal. Colleagues from Customer Operations volunteered at Chestnut Tree House Snowman Spectacular Ball in Brighton, helping to host and sell raffle tickets for the top prize of British Airways flights to Las Vegas. The raffle raised 6,180 for the children s hospice. In December, our team at Gatwick s North Terminal entertained customers by singing Christmas carols in aid of Flying Start. The team also raised over 4,000 for St Catherine's Hospice in Crawley through their fundraising activities. The team raised nearly 6,000 for Dreamflight, a British Airways supported charity that provides a once in a lifetime holiday for children with life limiting illnesses, through fundraising and volunteering at events throughout the year. Members of our cabin crew regularly visit the Bustamante Children s Hospital in Kingston Jamaica, taking gifts for the children. Alongside all the charitable fundraising, over 40 work experience students were placed in Customer Operations and Engineering, and over 60 students visited the airport for work experience taster days with Customer Operations. Scotland Scotland hosted two high profile events for Flying Start: The Glasgow ball was attended by Willie Walsh, IAG Group chief executive and Frank Van der Post, Managing Director Brands and Customer Experience. The ball was attended by corporate customers and suppliers. Over 300 people attended and we raised over 32,000. The Aberdeen ball was hosted by Keith Williams, our executive chairman, and over 200 guests attended, with 12,445 raised for Flying Start. In 2013, we donated 4,000 to Glasgow s Cash for Kids. The project supports children who come from families where drugs and alcohol have an impact on the family. The children are given the opportunity to have days out with specialised carers and some of the funds are used to provide counselling for the children with more severe behavioural issues due to their background and history. Manchester A Venetian Ball was held in March at Manchester Airport attended by 250 people raising over 5,000 for Flying Start. 11,000 was raised for Variety, the Children s Charity. 52 British Airways Sustainability Report 2013

53 Leeds Bradford The team at Leeds Bradford had the opportunity to visit the Armley Youth Project, a Comic Relief funded project in Leeds. The team at Leeds Bradford are planning more activity for British Airways Fun Run In 2013, the British Airways Fun Run, in aid of Cancer Research UK, raised 23,000 making the total raised in excess of 953,264 since British Airways began the partnership in London City The team at London City Airport organised a Christmas charter to Disneyland Paris in support of Flying Start. More than 40 children and helpers from the Young Carers Trust and ASTA Community Hub, close to London City Airport were invited. The event was generously supported by Disneyland Paris. The youngsters had all been nominated by Young Carers Trust and ASTA, a community hub based in Silvertown, East London for their individual achievements and actions. The Young Carers Trust is a Comic Relief funded project and ASTA is an organisation supported by London City Airport which helps young people to live better lives Emergencies Typhoon Haiyan British Airways continues to provide assistance to official disaster emergency appeals. We funded an IAG cargo freighter flight to Cebu in the Philippines to help with typhoon relief efforts. Space was given to Oxfam, Save the Children, UNICEF and the Reina Sofia Foundation of Spain. The supplies transported included water and sanitation equipment, medical supplies and other equipment to support the relief effort. The 10 th anniversary of BA CityFlyer was celebrated at the Docklands Museum, East London. All proceeds went to Flying Start and the event was hosted by Willie Walsh, Gary Lineker and Matt Cardle Payroll Giving Over 3,000 current and retired colleagues donate to charity through our payroll giving scheme, raising over 632,112 for their chosen charities. The top three charities are Cancer Research UK, Sreepur Village, Bangladesh (a project for abandoned women and children who design cards and other gifts for sale in the UK) and Highflight (a charity for young people with disabilities who want to learn to fly or have a flight experience). 53 British Airways Sustainability Report 2013

54 6.4 VOLUNTEERING Target: 9 percent of colleagues to volunteer by 2414; 14 percent by 2419 (excluding Cabin Crew) Colleague volunteering As a business we have always demonstrated our commitment to the community by participating in volunteering activities both in the UK and overseas. In July 2013, we formalised our volunteering programme which gained Board approval. Colleagues now have the opportunity as part of their development to volunteer within a structured framework. We will be officially launching our strategy in 2014 under our new learning platform Ascend. However, since the announcement of our plans in July 2013, over 700 colleagues have volunteered working closely with a number of local charities, NGOs and schools on many diverse projects. Through volunteering we have been able to work more closely with our current Community and Conservation partners whilst creating over twenty new charity partnerships in the Heathrow community, these include: Scope; The Golf Trust; Hillingdon Association of Voluntary Services; and VAIS - Volunteer Action In Spelthorne. The Hillingdon Women s Centre Over 100 colleagues worked tirelessly to improve the internal and external environment of the centre. The centre is a safe house providing a variety of services and support for all women who are in crisis due to physical and emotional abuse. Thank you British Airways. The women and our volunteers are thrilled to have a nicer, cleaner and brighter environment to work in, and the garden has been used nearly every day. Every new volunteer and visitor that comes to look around are made aware of the work you put into supporting our centre and making it look so lovely. You were so amazing to work with, so positive and cheerful, so determined to do a great job for us. With grateful thanks from the team of volunteers, and the women in the Hillingdon community. Douay Martyrs School, Hillingdon Over 30 colleagues were able to attend career and mock interview days to support the students in preparation for their work-experience placements. Students also gained an insight into the world of British Airways and learnt about the range of career opportunities available to them through our graduate and apprentice programme. The Willow Tree Centre 400 colleagues have participated in activities supporting a range of environmental initiatives at the Willow Tree Centre which is a multi-purpose 15-acre outdoor facility. They welcome over 14,500 young people every year, of which 3,500 have a range of special educational needs Community Volunteering Awards The aim of the Community Volunteering Awards is to recognise colleagues who have made an outstanding contribution to their communities through volunteering and charitable work. We also presented awards to some of our external charity partners for their outstanding work in our local communities. Awards included: Community champion of the year. UK regional champion of the year. Unsung hero award. Charity of the year. Volunteer team of the year. 54 British Airways Sustainability Report 2013

55 Next steps: Formally launch our Volunteering programme and build it into Ascend, our new learning platform. Build on our Community and Conservation programme and use it as an engagement tool for colleagues. Showcase the work of our community partners by building more strategic relationships which make a real impact on the communities we serve. 6.5 COMMUNITY LEARNING CENTRE Targets: Further develop the Community Learning Centre (CLC) and grow the talent pipeline. New Targets: Aim to engage 144,444 young people through activities at the CLC and through school based presentations by 2416 and 7444 children to visit the CLC annually. The British Airways Community Learning Centre opened in 1999, providing learning opportunities for young people from schools and colleges across the Heathrow community and further afield. The team of specialist trainers provide insights into the world of work and the airline industry. Our core programmes include information and communication technology (ICT), customer service, languages, and global and environmental education. In 2013, 9,167 young learners and teachers benefited from education sessions at our Community Learning Centre, or in their schools. To date 90,969 young people have benefited from sessions at the Centre or through school-based presentations by the team. ICT Programmes A total of 1,313 primary and secondary students participated in ICT programmes at the centre. The students gain an understanding of how technology is used to deliver our business and engage our customers. The programmes focus on the use of social media, ba.com and Journey Planning. All of the business topics link in with their school studies and the activities complement the work they do already, using their IT skills. Environmental Education Our environmental education programmes give young people access to the natural world, offering learning experiences on the green spaces of Harmondsworth Moor at Heathrow. We encourage children and young people to think about human activity and how it affects our planet, and we examine what steps British Airways takes to minimize and counteract the effects flying has on our environment. We work with several external organisations, such as the Wildfowl and Wetlands Trust, whose expertise helps us add depth and richness to our environmental sessions saw 1,283 young people and visitors take part in environmental education sessions, and this year we had a special focus during National Tree Week in November, 55 British Airways Sustainability Report 2013

56 during which primary and secondary school students planted saplings on Harmondsworth Moor, learning about the special environmental significance of trees, and helping to transform the local landscape. Spelthorne Junior Citizen Programme Every year, the British Airways Community Learning Centre hosts the Spelthorne Junior Citizen event, open to all pupils in their last year of primary school in the borough of Spelthorne, next to Heathrow. The event runs for two weeks and involves a series of short workshops promoting personal safety. Teams from various emergency services and community organisations join British Airways colleagues for sessions on issues including knife crime, safety near water, road safety, staying safe online, how to deal with strangers and much more. Every year since 2008, Spelthorne Junior Citizen has been a highlight of our September schedule and in 2013, 1,032 young people and their teachers attended the event. The skills learned prove to be invaluable in later life, demonstrated by a pupil reporting to us that she had helped at the scene of a bicycle accident, and that she had known what to do because of the First Aid skills learned here at the Community Learning Centre on her Spelthorne Junior Citizen event. Global Education Weeks Each year the centre delivers global events that focus on a specific country to promote cultural and global awareness. They offer a balance of activities that appeal to all the senses and include language, music, dance, art, calligraphy, and the opportunity to debate environmental and social issues that affect the communities we fly to. In 2013, our global events focused on Kenya, Jamaica, the Polar regions and our new Chengdu route with a total of 817 children taking part. Chengdu Global Event: To celebrate our new route to Chengdu in China, we hosted a one-day event celebrating the new destination with 100 secondary school students attending. The young people enjoyed the language and culture of the Sichuan province s capital city, practiced their Mandarin, flew on a mock flight, explored the tea house culture and learnt about the giant panda. The students had first hand accounts from a Pilot and cabin crew member, who were present on the inaugural flight to Chengdu, who talked about their roles and visits to the new destination. International cabin crew flew in to attend the day and share their experiences and two life size pandas also showed their faces! Senior First Officer, Dan Arnold said The pupils were really enthusiastic and all had a really enjoyable time learning about Chengdu. Work Experience Since 2009, we have taken on over 850 students for placement of five days in 21 departments including Heathrow Customer Service, British Airways Component Engineering, and Flight Training and IT Service delivery. A number of former work experience students are now British Airways colleagues having successfully secured places on apprenticeship programmes. In 2014 the programme will expand again as work experience will be reintroduced in the Heathrow Aircraft Hangar and new placements will start in the Operation Support Unit, Network Planning and Digital Innovation. 'The first few months of my time at British Airways have been amazing. I've experienced many aspects of the company in such a short time, and I look forward to progressing my career with British Airways in the future' -Andrew Breadman, 56 British Airways Sustainability Report 2013

57 Engineering Technical Apprentice, London Heathrow, former work experience student. Language Programmes Our award-winning language programmes continues to thrive with 529 young learners participating in either primary or secondary school language workshops at the CLC. Presentations stressing the importance of knowing a language in the world of work have been popular, with 1,576 students benefitting from school visits in The British Airways Language Flag Award The British Airways Language Flag Award (BALFA) is a vocational speaking test aimed at increasing confidence in communication in other languages. There are currently 120 schools and 249 teachers who are members of our programme which is open to any UK school. Greek and Turkish have been added to the programme and the test is now available in 20 languages. British Airways colleagues from around the world showcased their linguistic ability, volunteering to record new listening test materials and announcements which students can download from ba.com/languageresources to help them to perfect their accents. Customer Service Programme The Customer Service and Recruitment & Selection sessions are designed to support students studying a variety of topics both in school and at college. In 2013, over 850 students participated in the programme. We have delivered Work Preparation Days for the sixth form students where they had the opportunity to meet British Airways colleagues from a number of departments who gave them an insight into the business and career opportunities available. The students also took part in activities designed to develop skills to help them in their quest for employment. The head of sixth form from Wexham Park School in Slough said: The experience provided to our sixth form students by British Airways was invaluable in terms of their understanding of a real life workplace. The tremendous knowledge and enthusiasm displayed by all the British Airways staff we met, not only helped to motivate the pupils in their academic studies, but also to inspire them to raise their aspirations and ambitions. The professional and friendly approach made the day an enjoyable experience for all. During the academic year September 2012 to July 2013, 2,101 students took the test with a 79.9 percent pass rate. Next steps: Deliver a new Community Learning Centre by Grow our work experience programme by engaging new departments across the airline and increasing the number of young people participating. Develop a talent pipeline through our work related programmes at the Community Learning Centre and increase the opportunities for young people to access career opportunities through our apprenticeship scheme. 57 British Airways Sustainability Report 2013

58 7 7.1 Responsible business context Responsible business goals and targets Safety Customer experience Colleague relations Responsible procurement Wellbeing Diversity and inclusion British Airways Sustainability Report 2013

59 7.1 CONTEXT We are committed to operating our business in a responsible way. We wish to create a respectful environment for customers and colleagues. Additionally we expect our partners to uphold our high standards and values. We believe such things should be expected of any business. The wellbeing and comfort of our passengers is of paramount importance and we have invested 5 billion over 5 years to enhance the customer experience for all customers. Throughout our operation, across our people, customers and suppliers, we strive to uphold our responsible flying ethos. We are keenly aware of the responsibilities and obligations we have to our customers to provide not only outstanding customer service but also to deliver a safe operation. Safety is our first priority at British Airways and is ingrained in our culture. 59 British Airways Sustainability Report 2013

60 7.2 GOALS TARGETS GOALS TARGETS Goals Targets and actions Progress in 2013 Safety: continuously improve British Airways safety and security culture. Customer: put the customer at the heart of everything we do. Customer: develop brand awareness and engagement in key markets. Colleague: make British Airways a great place to work for all colleagues. Improve British Airways colleagues occupational health and minimise safety and security issues impact on business activities. Maintain a culture of continuous improvement across all aspects of safety and security. Invest selectively in customer centric initiatives, products and new technologies to better deliver exceptional customer service. Continue to embed the British Airways brand positioning in key markets. Understand and measure our customer insights better and use them to drive our future proposition development work. Maintain the Learning Academy as a centre of excellence for corporate training. Improve communications with colleagues on key issues and increase the annual survey response rate from 44 percent in Maintain influx of new talent through graduate and apprenticeship schemes. Focus given to activities that may give rise to hand arm vibration issues. Revised procedures for management of statutory inspections and health surveillance introduced. Continued use of behavioural safety training. Days lost due to work related injuries reduced by 16% compared to last year. Major injuries reduced 30% compared to last year. Understand and measure our customer insights better and use them to drive our future proposition work. The To Fly. To Serve. Today, Tomorrow campaign was developed and implemented across the UK, USA & Indian markets showcasing the care and thought that goes into every customer journey. In June 2013 we introduced our new Customer Voice survey, a monthly online customer satisfaction questionnaire conducted across random samples of ba.com passengers. The customer satisfaction measure as of June 2013 was 55 percent while Jan 2014 saw this increase to 59 percent. Launch of Ascend: our integrated Learning and Performance system enabling people to own their development. Speak Up response rate has increased to 61 percent. 50 graduates and 135 apprentices joined across the business. 60 British Airways Sustainability Report 2013

61 GOALS TARGETS (continued) Goals Targets and actions Progress in 2013 Procurement: operate in a socially ethical manner. Audit of 30 Tier 1 suppliers by Q British Airways is the first airline member of Sedex and we look forward to working collaboratively with Sedex to improve supply chain standards. Wellbeing: provide support, and a safe and healthy environment for our customers when they are on board, and support colleagues in improving overall health. Diversity and inclusion: promote a working environment that motivates, engages, supports and recognises the differences of all colleagues and deliver an inclusive service to all our customers. Ensure suppliers are paid on time in at least 95 percent of cases. Continue to support customers who require medical clearance on board our aircraft. Help colleagues adopt healthier lifestyle choices. Encourage and instil positive and permanent change within the airline on issues of dignity at work. A positive legacy for disabled customers post-olympic and Paralympic games. We are a signatory to the Prompt Payment Code and have maintained our long-standing policy not to extend supplier contracted payment terms. Developing a streamlined screening process across the 11 airlines in the Joint Business Agreement (JBA). Multiple health promotion events; subsidised exercise facilities; delivered an extensive health surveillance programme. We introduced a Dignity Index in 2012 which we have built on during The Index consists of 15 questions and allows a more holistic approach to what drives feelings of being respected and valued. Our disabled customer proposition has been embedded into our brand. To make the journey as easy as possible, we have improved ba.com to enable customers to let us know their requirements via Manage My Booking. 61 British Airways Sustainability Report 2013

62 7.3 SAFETY provided to them. Safety and Security Management system as part of move to EASA Ops A planned and structured project is underway to ensure British Airways gains EASA OPS approval by October The project, that commenced in August 2013, will see the introduction of a revised Safety Management System that provides greater transparency through the use of regulatory Compliance Statements and a comprehensive restructure of a number of key organisational manuals. The project plan includes regular meetings with the UK CAA to ensure the requirements are being fully addressed throughout Work related injuries Targets: Maintain a culture of continuous improvement across all aspects of safety and security. Improve British Airways colleagues occupational health and minimise safety and security issues impact on business activities. Whilst incident prevention is the key objective of all colleagues, on those occasions where a colleague does suffer an injury, there is a robust rehabilitation programme to support an early return to work. Alongside the incident prevention programmes, effective rehabilitation has enabled us to reduce our days lost due to work related injuries by 50 percent over 3 years. Strong reporting culture 2013 saw the launch of two new corporate reporting systems, one to control health surveillance and the other statutory inspections. Safety culture Development of our safety behaviours continued throughout 2013 with the launch of bespoke training for Senior Managers and colleagues alike. The training is developed to raise awareness of how each colleagues personal actions can impact on safety outcomes and culture. Major injuries A total of 26 work related major injuries were recorded worldwide by British Airways colleagues. The majority of these relate to slips and trips and identifying risk reduction strategies is an area of constant attention Customer safety We have continued to develop the travel experience for customers with reduced mobility. New facilities within ba.com now enable our customers to provide more comprehensive information about their mobility equipment, prior to travel. This enables us to address their travel requirements more effectively and handle their equipment with the minimal risks to both the equipment and colleagues. Cabin safety is another area where risk assessment has identified further areas of improvement. A redesign of the beverage pots used as part of the hot drinks service will ensure that risks to both our cabin crew colleagues and customers are minimised and demonstrates the benefits of continuous improvement. We pride ourselves in having a strong reporting culture. All colleagues are encouraged to report all safety related events including potential occurrences. We continue to make reporting easy with ongoing development of ipad apps for our colleagues to take full use of the technology that is 62 British Airways Sustainability Report 2013

63 7.4 CUSTOMER EXPERIENCE Targets: Invest selectively in customer centric initiatives, products and new technologies to better deliver exceptional customer service. Continue to embed the British Airways brand positioning in key markets. Understand and measure our customer insights better and use them to drive our future proposition development work. Being a responsible business means putting the customer at the heart of everything we do, and this is a core value immortalized by our 35-year old motto: To Fly. To Serve. Our sustainability practices are becoming more important to our customers and we endeavour to make these visible throughout the entire customer journey. From opportunities for donations to carbon reduction projects through the online experience, to boarding the newest aircraft with improved fuel efficiencies; from seeing onboard recycling to being kept up to speed with our community investment and exciting fuel innovation work; our customers are witnessing our commitment to sustainability across their journey. We strive to deliver exceptional customer service and in order to do this we must understand how our customers feel and what they want. Thanks to our new online Customer Voice and real time Pulse surveys we have access to a greater level of insight, which enables us to empower our onboard staff using ipad technology to turn this insight into a more personalised service for each and every customer. We are committed to integrating diversity and inclusion principles and values into our business. We understand that each customer expects and deserves to be provided with a service that meets their individual needs. Customers with disabilities want to be more in control of requesting the type of assistance they need and so we have improved ba.com to enable customers to let us know their requirements via Manage My Booking. Our activity continued to be rewarded this year. Industry prizes such as Best Airline, Best Short Haul Carrier, Best First Class, Best Airport Lounge and Best Frequent Flyer programme in the Business Traveller 2013 awards were joined by best Long Haul and Short Haul trophies from The Sunday Times Travel awards and the Brand Revitalization award from the Marketing Society Brand values and management Four simple words capture the essence of British Airways; To Fly. To Serve. These words describe the passion and expertise that we set out to demonstrate to customers everyday; delivering a unique combination of iconic British style, a thoughtful service that is personal and knowledgeable; and an unrivalled flying knowhow. Our reputation is built on our heritage of excellence in all areas of flying, our uncompromising standards of safety and security and a commitment to set new standards for the future. 63 British Airways Sustainability Report 2013

64 their ipads Communication integrity British Airways endeavours to comply with all relevant laws, standards, regulations and voluntary codes in terms of advertising price and tactical offers in the United Kingdom. The British Airways marketing and sponsorship teams work closely with the in-house legal team in relation to our marketing communications where workshops and training are provided. Furthermore, we ensure that we obtain the relevant approvals from approval bodies, such as Clearcast in the UK, where necessary. Over 2013, 5 complaints against British Airways were resolved informally with the Advertising Standards Authority (ASA). One formal complaint against British Airways was not upheld by the ASA. In 2013, we significantly increased the amount of proactive contacts we make. This means that we proactively call a customer when we believe we have not sufficiently delivered to their expectations in order to resolve any issues they may have. Where we have contacted customers proactively we have received much improved feedback. In the last 12 months we have seen increases in issues associated with flight delays and cancellations. We have also seen an increase in claims for compensation for delays and cancelled flights due to changes in EU law. Average number of complaints per 1000 passengers: Complaints and claims The British Airways Global Customer Relations operation team is responsible for addressing issues or concerns raised by customers post travel, including lost or damaged baggage claims, as well as disruption cases. Customers can contact Customer Relations by webform, , letter or telephone as well as through various social media channels. In addition, our cabin crew can capture information and gather feedback on board our aircraft using British Airways Sustainability Report 2013

65 7.5 COLLEAGUE RELATIONS We want British Airways to be a great place to work and to get all colleagues involved in making this happen. Discussions with all colleagues and a focus on putting the customer first in all areas of the business, are helping us to achieve this. We update our employment policies regularly with input from colleagues across the business. We aim for all employment policies to meet specific criteria. These are: Legal compliance. Short and simple. Empowering for line managers. Cost effectiveness. Fairness. We work collaboratively with all trade unions towards establishing a modern framework for colleague relations, with agreements that allow the business to focus on the customer and retain flexibility and competitiveness. All managers at British Airways have a role in creating an accepting, inclusive and high performing team environment. They receive support which helps them manage and develop colleagues effectively, which in turn, encourages them to realise their full potential. We encourage conflict resolution through alternative, informal means. Our mediation process allows for private conversations without resorting to formal action. There are trained mediators across all areas of the company available for this process Training Target: Maintain the Learning Academy as a centre of excellence for corporate training. We have recently introduced an online learning, performance and talent management system called Ascend, which brings innovative ways to learn. It helps colleagues manage their learning and personal development with more access to aligning learning to our business objectives. It is also an interactive performance and talent management tool. Ascend offers dynamic learning opportunities for all colleagues, helping them to take ownership of their own learning and enables them to learn on the go or from home. It is a fully integrated business wide learning, performance and talent management system. It is fast, effective and efficient - colleagues will have greater choice and more control. These new ways of learning will build our expertise to help us deliver even better service to our customers, helping us towards our vision to become the most admired airline. In 2013, our Learning Academies arranged and provided 15,553 management training days to just under 5,000 managers ranging from Management Development skillbytes and Project Management Professional development courses to online Corporate Compliance learning. We also delivered 100,552 training days to around 15,000 cabin crew covering new entrant, Premium Service Training and recurrent / conversion courses. Just over 3,700 Flight Crew completed a total of 31,853 training days comprised of Simulator and new entrant / recurrent / conversion training. 4,500 engineering colleagues completed 31,100 training days including training on new Airbus A380 and Boeing 787 aircraft. Just under 14,000 ground operational colleagues 65 British Airways Sustainability Report 2013

66 were offered 45,874 training days including regulatory and compliance learning Speak Up Survey More than 23,500 colleagues took the time to share their views in our colleague opinion survey, Speak Up That equates to 61 percent of the airline. As a result we now have the most robust data that we have ever had which is starting to give us a clear picture of how people are feeling. Comparisons with last year s results show we are making progress in areas such as leadership visibility and communication. Our key indices continue to be: Customer Focus, Leadership, Safety and over all Engagement which is 72 percent. Our colleagues continue to demonstrate their passion and enthusiasm for the British Airways brand. 77 percent of those who responded believe that British Airways will be successful in the future and 75 percent are proud to work for British Airways. This year, we have changed the managers report to highlight and prioritise what drives engagement across the company. Our priority now is for managers to analyse the data and continue the conversations started with their teams to fully understand what is driving the data and then prioritise actions to address concerns and issues Leadership development Our aim is to develop inspirational and capable leaders now and for the future. To achieve this the High Performance Leadership (HPL) approach was introduced into British Airways in 2008 and our focus on building our leadership through the HPL approach continued throughout The HPL approach links: business planning, objective setting, performance assessment, talent management, reward, leadership development and career progression. Over the last five years, as part of the HPL approach, we have introduced a broad and comprehensive leadership portfolio. We understand and develop the potential within our leadership communities and continually review our succession plans with appropriate action planning. Key components of our leadership portfolio are our accelerated leadership programmes (Horizons, Compass and Leaders of Tomorrow), our company -wide frontline leadership development portfolio (which is now accredited) and individual leadership development (including profiling and coaching). In 2013 we also ran targeted leadership development programmes to build leadership capabilities in specific areas or functions (e.g. collaborative leadership development and leadership development for our cabin crew leaders). Speak Up survey response: 70% 60% 50% 40% 30% 20% 10% 0% 58% 61% 44% British Airways Sustainability Report 2013

67 7.5.4 Graduates and apprentices Graduates are an essential part of the talent pipeline in British Airways. At any moment in time we have over 100 graduates engaged on one of nine graduate programmes that cover a range of disciplines including: Procurement; HR; IT; General Management; Finance; Engineering; Cargo; Operational Research and Commercial Analysis. While on a graduate programme, our graduates carry out real jobs with real responsibilities and benefit from a broad and varied range of additional development opportunities and experiences. Over the last 12 months we have carried out a review of our graduate proposition to ensure it is the correct size and shape to serve British Airways for the future. Graduate programme Leaders business for Engineering IT Finance HR Cargo Procurement OR Commercial Analysts 3 Target: Maintain influx of new talent through graduate and apprenticeship schemes. Annual graduate cohort numbers: Total Apprentices Our apprenticeship programmes also play a key role in bringing new talent into the airline. We currently have over 300 individuals completing a wide range of apprenticeship programmes that provide on the job experience in different areas of our business. We are currently offering opportunities to develop skills in professions such as Project Management, Engineering, Information Technology, Head Office/ Business Administration, World Cargo & Logistics, Heathrow Operations, Financial Services and People Services. All programmes follow a structured agenda of on the job skills development, coaching and academic studies leading to a nationally recognised qualification. We currently offer Intermediate Apprenticeships Level 2, Advanced Apprenticeships Level 3 and Higher Apprenticeships Level 4-7, dependant on the programme. Our apprentices are also encouraged to develop their skills and abilities further by getting involved in additional development opportunities. All programmes complete activities to support our Community Investment and Flying Start team, which include team challenges with other organisations, volunteering with local community groups and fund raising to support our chosen charities. We also support local schools by giving presentations to students and attend Careers Fairs. In addition, we seek opportunities for our apprentices to become ambassadors and engage with MPs by attending government events. 67 British Airways Sustainability Report 2013

68 Annual Apprentice Recruitement Numbers : Programme Apprenticeship Qualification level Engineering - Industrial Level Engineering - Business & Administration Level Engineering - Aircraft Appearance Level 2 11 Heathrow Operations Level Information Technology - Operations Level Information Technology - Delivery Level 4 12 Information Technology - Security Level Project Management Level Head Office Level World Cargo Level People Services Level 3 2 Financial Services Level 2 4 TOTAL (Year) Severance pay British Airways provides severance pay for colleagues whose roles become redundant. A severance amount is paid, which is compensation for loss of office. In all cases, the amount paid will be at least (and usually more than) the minimum legal requirement. The severance amount takes into account a colleague's length of service. It also makes reference to the Government's Statutory Redundancy Pay formula, which takes into account colleague age and years of service. support. Colleagues who are at risk of redundancy are registered with the service and are assigned to a Talent Transition Consultant. In addition to receiving priority consideration for suitable internal vacancies, all registered colleagues become eligible to receive one-to-one advice and support on a range of subjects such as identifying a potential career path, writing a CV and preparing for interviews. This support is complemented by further offerings from our external career coach partners, who offer seminars and one-to-one support in areas such as setting up your own business and planning for an active retirement Job placement services Over the last 12 months British Airways internal Career Transition Service has provided over 300 colleagues with career coaching and job-search Retirement planning Support for colleagues approaching retirement is provided by British Airways Clubs. Seminars are presented in partnership with Lighthouse 68 British Airways Sustainability Report 2013

69 Financial Advice and are available to colleagues of British Airways as well as their partners. Professional financial advice is provided to colleagues who are concerned about losing their regular income with a view to offering expert guidance on a range of subjects including pensions, tax planning, long term care and state benefits. Short term disability: available for both parttime and full-time. Long term disability: only available to fulltime colleagues. 401K Defined contribution plan: available to part-time and full-time colleagues Benefits Below you will find the benefits that are given to our colleagues: Pension plan: closed to new members - benefits dependent upon income and length of service (part-time and full-time). UK: US: Life insurance: provided via membership of a pensions scheme and is based on individual's pensionable pay, so would be pro-rated for part-timers. Health care: same cover provided for fulltime and part-time colleagues. Temporary staff would not be eligible. Disability and invalidity coverage: all eligible but pro-rated for part-timers (based on salary). Parental leave: expressed in calendar weeks but may be adjusted for part-time workers in some circumstances. Stock ownership: shares granted under a Deferred Share Plan (DSP) are pro-rated for part-time workers. Shares granted under a Performance Share Plan (PSP) are not prorated for part-time workers. Temporary staff are not eligible for awards under either of these schemes. Health insurance: available to both part-time and full-time colleagues (part-time staff pay more for dependent coverage). Life Insurance: we provide for both parttime and full-time - coverage is based on income Colleague litigation Between 1 January 2013 and 31 December 2013, British Airways was served with 70 Employment Tribunal claims. Of these, seventeen claims were related to pilot holiday claims, and included claims repeated from previous years. The majority of these claims have now been settled. Of the remaining fifty-three claims, there were three multi-party claims, thirty-two of unfair dismissal and thirty-nine of discrimination many of which overlap. Of these fifty-three claims, twenty-two are ongoing, twenty-one were withdrawn by the claimant, six were won by British Airways, one claim was struck out by the Employment Tribunal and three claims were settled. Employment tribunal claims: British Airways Sustainability Report 2013

70 Grievances about labour practices Corrective action taken: There were also a number of grievances about labour practices filed and discrimination claims, which you can see in more detail in the tables below: Grievances and discrimination claims: Grievances claims Total number of grievance claims Not upheld Partially upheld Upheld WIP 18 Removal of suspension of improvement plan during maternity leave. Proposed changes to the current practice for accruing lieu days for part-time workers. Performance issue removed due to incorrect application of managing performance. Addressing people management style in communication of key messages. Discrimination claims 2013 Total number of discrimination claims 15 Discrimination claims not upheld 10 Discrimination claims partially upheld 2 Discrimination claim upheld 1 Discrimination claim withdrawn 1 Discrimination claim ongoing 1 70 British Airways Sustainability Report 2013

71 7.6 PROCUREMENT British Airways is committed to encouraging our suppliers to achieve the highest standards in responsible procurement and in 2013 we continued to work with an identified group of suppliers to drive the highest standards of ethical behaviour. We require that any new potential suppliers complete a comprehensive sustainability questionnaire as part of our tender process. At a strategic level, we continue to focus on each of the three themes of our responsible procurement strategy: Reduce supplier emissions. Source ethical suppliers. Behave responsibly towards our suppliers. Our procurement team maintain a risk based approach to identify where potential Sustainability risks lie in our global supplier base. During 2012, their review has allowed a clear understanding of where the highest risks exist when measured against three elements: Target: Audit of 34 Tier 1 suppliers by Q Impact on our customers through products or services. Impact on the environment. Exposure to potential labour issues. We have undertaken sample supplier audits based on the Sedex members Ethical Trade Audit (SMETA) Best Practice Guidance and in addition a number of suppliers are obliged to undertake SMETA audits and share findings. In 2013, we joined Sedex and are proud to be their first airline member. We look forward to a long and successful partnership with them and contributing to the improvement of standards in the supply chain. We have identified 30 suppliers that in the main are either supplying Customer Product or Overseas Caterers where product is generally manufactured in higher risk locations, has a higher dependency on labour and together with potential environmental concerns poses a potentially higher risk. Together with Sedex, we are currently working on a joint project to identify increased levels of supply chain risk, initially within this group and will identify subsequent actions in mid We remain committed to working with Sedex to improve supply chain standards Anti bribery and corruption British Airways remains committed to maintaining the highest standards of ethics, honesty, openness and accountability in our procurement processes. This is underpinned by our code of conduct, The Way We Work and our business Integrity Policy. In 2012, we introduced a facility where suppliers who have ethical concerns about how British Airways procurement conduct business can contact in confidence either the British Airways Company Secretary or Safecall, an external and independent specialist Risk management In 2013 we refreshed our approach to Supplier risk monitoring, adopting an approach endorsed by the Institute of Risk Management with regular reviews undertaken Suppliers payment system Target: Ensure suppliers are paid on time in at least 99 percent of cases. The process for payments to suppliers is well established and managed by the Payment Services 71 British Airways Sustainability Report 2013

72 team, who are dedicated to ensuing that payments are managed effectively and that suppliers are paid to contracted terms with Supplier On-Time Payment Performance circa 90 percent. Substantial controls are in place to ensure that the creation of supplier accounts and subsequent payments operate within well-defined segregation of duties. The system and processes are audited annually and in addition, a third party audit company regularly monitors payments to suppliers to keep the risk of duplicate payment to the absolute minimum Supply chain labour policies British Airways is a strong advocate of responsible behaviour within its sourcing companies who are required to aspire to British Airways supply chain standard policy. This provides guidance on responsibilities for labour practices and their application. Our supply chain standard policy is based on the International Labour Organisation standards and provides guidance on: General conditions. Child labour. Equal opportunities and diversity. Freedom of association and collective bargaining Sustainable sourcing of our onboard catering There is a strong focus on the sustainability of ingredients we use in all our meals. Over-fishing and damage to marine ecosystems are pressing global problems. In 2012 British Airways signed the Sustainable Fish City pledge with the aim of using only fish from sustainable sources at our London bases. We are also working with our overseas catering suppliers to ensure they adhere to the Marine Conservation Society s fish to avoid list when selecting fish for our meals. To further demonstrate our commitment, both British Airways and the Marine Stewardship Council collaborated at the end of 2012 and throughout 2013 to place independently certified fish on our menus. This was made possible by the accreditation gained by our long haul catering partner Gate Gourmet at the Heathrow catering unit to integrate MSC Chain of Custody requirements. We have recently agreed use of the approved MSC eco-label artwork onto the British Airways menu, assuring our customers that the product is fully traceable to a certified sustainable fishery wherever this is displayed. There is still much to do, but we are committed to working with our partners and suppliers to ensure that we endeavour to responsibly source our produce and minimise our impact on the environment where possible. Forced labour. Wages, benefits and working hours. Harassment and bullying / dignity at work. 72 British Airways Sustainability Report 2013

73 7.7 WELLBEING British Airways remained focused throughout 2013 on maximising Customers and Colleagues health and wellbeing. Customer wellbeing Targets: Continue to support customers who require medical clearance on board our aircraft. Help colleagues adopt healthier lifestyle choices. This year British Airways Health Services (BAHS) completed a review of on board medical equipment, however any changes in medical kit content are being delayed pending a final decision on EASA regulation. New automated external defibrillators (AEDs) will be introduced on all British Airways aircraft which in addition to being faster and easier to use are 6kg lighter than the previous model, contributing to British Airways commitment to achieving fuel efficiency savings. operates with other airlines to various regions of the world) with the aim of providing one medical clearance process for Customers whose itinerary includes JBA airlines. Colleague s wellbeing British Airways health surveillance programme, aimed at prevention and early detection of work related ill health has been extended this year and in 2014 we are planning to open another Health Centre, which will provide additional resource. The Early Active Rehabilitation (EAR) scheme has continued to provide support for colleagues by providing more rapid access to medical treatment and an earlier return to work. In 2013 the scheme achieved a return on investment of 6.6:1 British Airways employees on UK contracts have access to our Employee Assistance Programme, Helpdirect which offers support on personal and work related issues 365 days a year. This year the Helpdirect provider also supported various health promotion events to promote the service and have delivered emotional resilience training which we intend to extend in In 2013 we delivered a comprehensive health promotion programme aimed at raising awareness of important health issues and culminated in November with a multi themed Health Fair where health charities and health professionals offered advice, screening tests and health and wellbeing information. British Airways has reviewed its life saving equipment provided on the ground. As a result of this, AEDs will be provided at various locations across British Airways and the BAHS first aid team will be offering half hour Basic Life Support (BLS) sessions, including demonstration of the new AED. Throughout 2013 in house Passenger Medical Clearance Unit (PMCU) cleared 5629 customers with medical problems as fit to fly, and provided additional oxygen free of charge to 75% of them. PMCU have continued to work with 11 airlines participating in Joint Business Agreements (JBA a revenue share agreement British Airways In 2012 BAHS pledged to improve employees health by signing up to the government s Responsibility Deal, pledging to improve employees health by: Promoting the importance of physical activity in the workplace 73 British Airways Sustainability Report 2013

74 WHO WE ARE Supporting staff with chronic conditions Gaining accreditation for the OH department through SEQOHS (Safe Effective Quality Occupational health Service) Raising awareness of Domestic Violence As part of these pledges, British Airways provides facilities at most work locations to make it easier for employees to exercise during their working day and offers subsidised facilities to colleagues and their families to encourage physical activity. In 2013 British Airways committed to raising awareness on Domestic Violence. British Airways is a member of the Corporate Alliance Against Domestic Violence. We have incorporated the issue of domestic violence into health promotion events and a seminar for British Airways managers on the importance of well being in the 74 IMPACT. workplace. We worked closely with our EAP provider to ensure that our Helpdirect leaflets reflect this issue. Following an extensive review of internal processes and procedures, BAHS has submitted its initial application for accreditation under SEQOHS with formal audit to follow in Next steps: In the coming year we will continue to exploit IT opportunities, social media and health apps to benefit both our customers and colleagues. British Airways Sustainability Report 2013

75 7.8 DIVERSITY INCLUSION Targets: Encourage and instil positive and permanent change within the airline on issues of dignity at work. A positive legacy for disabled customers post-olympic and Paralympic games. British Airways is committed to building a diverse and inclusive workplace, based on developing trust and relationships with colleagues, customers and local communities. We seek to achieve this by integrating diversity and inclusion principles and values into our business and people plans. This year has seen us embedding our new governance framework to create local accountability and delivery of diversity and inclusion. Our central team provides advice, guidance and support for our local diversity sponsors who are in turn supported by diversity advisers. We also provide expertise to the business in areas such as recruitment, talent, products and services and training Customer Building Ability Our Director of Business Services sponsors our work with customers with disabilities and has brought together senior managers from strategic areas of the business to focus on highlighted issues. Our customers have told us they would like more control over the type of disability assistance they need. In order to make the journey as easy as possible we have improved ba.com to enable customers to let us know their requirements via Manage My Booking. Disability assistance via Manage My Booking: 75 British Airways Sustainability Report 2013

76 Cultural intelligence We have worked in close collaboration with our Products and Services team to ensure cultural knowledge is integrated into communication and training for the opening of new routes, with particular focus on India and Korea. We have encouraged information sharing across directorates such as Inflight services and Flight Operations and other regional bases such as Gatwick Colleagues Our approach in 2013 has been to link diversity and inclusion to wellbeing and engagement to embrace all colleagues. We are working in close partnership with our colleague assistance programme, our health services and mediation partners to embrace physical and psychological health. In addition, we seek to maximise the potential of our colleagues and have worked in close collaboration with our Talent team to understand the diversity demographics of our future leaders. Our focus is on gender balance within our directorates and to work externally to attract a diverse applicant pool as well as internally to ensure we attract and retain the best people, irrespective of background. Gender we have carried out talent research and are reviewing gender diversity at senior levels and below. We have worked with the 30 Percent Club on understanding more about motivation and aspiration for progression, as well as the different career paths individuals take. Dignity at work We introduced a Dignity Index in 2012 which we have built on during The Index consists of 15 questions and allows a more holistic approach towards exploring the feelings of being respected and valued and links to engagement and wellbeing. We continue to monitor feedback from colleagues on harassment and bullying and discrimination and have seen a fall in both areas during 2013, although we recognise we still have work to do during the coming year. Senior management gender report: Employee Group Female Male Total Female % 2012 Direct % reports to executive chairman Band % Band % 2013 Direct % reports to executive chairman Band % Band % British Airways supports a range of informal and formal flexible working practices to support our business and to enable colleagues to manage their lifestyles. We have worked with our recruitment team to advertise more roles as being open to flexible working to encourage more diverse applications. British Airways contract profile: In addition, this year we have: 2011 All % Part-time 10, % Full-time 24, % 2012 Part-time 10,908 30% Full-time 25,443 70% 2013 Part-time 10, % Full-time 25, % Implemented a new training course on managing unconscious bias for effective decision making. We aim for all our 76 British Airways Sustainability Report 2013

77 managers to have attended this programme by the end of Reviewed the role of our colleague resource groups within the business. Delivered upskilling courses for sponsors and advisers on gender, discrimination law, dignity and disability. Provided foundation level training for new sponsors and advisers across our business to provide support to local line managers. Reviewed and revised the role of Diversity and Inclusion within our sustainability strategy to widen the remit towards responsible employment will see continued focus on our Wellbeing & Inclusion strategy. It will align with the business plan and people strategy to benefit our colleagues and customers by enhancing the organisational health and effectiveness of British Airways. Priorities will include mental health and resilience, dignity at work, flexible working and supporting colleagues with disabilities. Provided a consultancy service to our business on all the strands of diversity and inclusion including customer and colleague issues. British Airways colleague age profile: 77 British Airways Sustainability Report 2013

78 WHO WE ARE 8 IMPACT. 8.1 Report scope Governance and risk management detail Summary of 2013 achievements Mitigating our environmental impact: data calculation and methodology Operating efficiency and punctuality Sustainability indicators British Airways Sustainability Report 2013

79 8.1 REPORT SCOPE This report covers the calendar year 1st January to 31st December 2013, and unless otherwise stated, all figures, calculations and assumptions are based on this reporting period. The previous report was published in April 2013 and covered the calendar year of It is British Airways intention to continue producing reports on this annual cycle, however, updates on individual projects, initiatives and unforeseen events throughout the year are covered by our media partners, our main corporate website ba.com and our sustainability microsite responsibleflying. As covered in the Stakeholder Engagement section in section 2.2, this report is intended for a diverse range of individuals with a stake or interest in British Airways sustainability activities. These include customers, shareholders, potential investors, colleagues, students, academic professionals, suppliers, regulators, governmental representatives, industry trade groups and associations, representatives of other airlines (including our partners and competitors), NGOs, the travel and tourism market, community groups and the media. The content of this report was defined through multiple means, including: materiality surveys and discussion with stakeholders. feedback on previous reports. moving towards a format more in line with the Global Reporting Initiative (GRI). This is balanced against the expectations of the multiple NGOs, trade partners and local community groups we communicate with, so in some areas we have reported in greater detail than specified by DJSI or GRI frameworks. The topics covered in this report are also prioritised according to their importance to the British Airways business plan, as well as IAG s strategic goals. 79 British Airways Sustainability Report 2013

80 8.2 GOVERNANCE RISK MANAGEMENT DETAIL Governance British Airways Board Composition: Name Executive or Non- Executive Independence Positions and Commitments Gender Keith Williams Executive Non-Independent Executive Chairman, British Airways M Garry Copeland Executive Non-Independent Managing Director of Combined Operations, British Airways Andrew Crawley Executive Non-Independent Chief Commercial Officer, British Airways Gavin Patterson Non-Executive Independent Chief Executive Officer, BT Group Plc M Alison Reed Non-Executive Independent F Julia Simpson Non-Executive Non-Independent Chief of Staff, IAG F Ken Smart Non-Executive Independent M Nick Swift Executive Non-Independent Chief Financial Officer, British Airways M Frank Van Der Post Executive Non-Independent Managing Director, Brands and Customer Experience, British Airways M M M British Airways CSR Board Committee Composition: Name Executive or Non- Executive Independence Positions and Commitments Gender Gavin Patterson Non-Executive Independent Chair of Committee; Chief Executive Officer, BT Group Plc Andrew Crawley Executive Non-Independent Chief Commercial Officer, British Airways Maria Da Cunha Executive Non-Independent Director People, Legal, Government and International Affairs, British Airways Lynne Embleton Executive Non-Independent Director of Strategy, British Airways F Alison Reed Non-Executive Independent F Ken Smart Non-Executive Independent M Frank Van Der Post Executive Non-Independent Managing Director, Brands and Customer Experience, British Airways Keith Williams Executive Non-Independent Executive Chairman, British Airways M M M F M 80 British Airways Sustainability Report 2013

81 8.2.2 Risk management The executive chairman and the British Airways Board require that all areas within the company use effective risk management strategies. British Airways uses integrated multi-disciplinary risk management processes, which help prioritise investment to enable the delivery of corporate goals, and identify risks linked to economic, environmental and social responsibility. The British Airways Board has assigned responsibility for the risk management programme to the Risk Group, which comprises members of the Leadership Team. With support from Risk Leaders from each business area, the Head of Corporate Risk and Compliance who is directly responsible for the administration and coordination of the corporate risk process also supports the Risk Group. To determine risk materiality or priorities British Airways uses four primary criteria: Probability the likelihood of the risk happening. Velocity how quickly the risk could occur. Timeframe how soon the risk could arise. These corporate risk processes (including sustainability risks) produce regular reports, which are all distributed directly to the British Airways Leadership Team and the audit board of IAG. There are a number of corporate risks relating to sustainability. Climate risk influences a number of work programmes, including our work on the global regulation of aviation emissions at the ICAO level, and on regional schemes such as the EU ETS. In addition, strategic investments made by the group, for example the investment in advanced low -carbon fuels, are linked to our mitigation of climate risk. Risk impact the risk s potential financial impact. 81 British Airways Sustainability Report 2013

82 8.3 SUMMARY OF 2013 ACHIEVEMENTS In June 2013, IAG and British Airways played a key role in the adoption of a global aviation industry position on implementation of Carbon Neutral Growth from We are investing in new sustainable low carbon fuels. Our London Greensky project with Solena completed the early engineering design phase and we have made good progress on site, financing and planning. In 2010, we began our partnership with Comic Relief with the aim to raise 6 million by December As a result of the generosity of both our customers and colleagues we exceeded our target, raising in excess of 6.75 million by December Over 7,000 young people participated in activities in our Learning Centre. In total 90,969 young people have participated in activities which includes visits to the Learning Centre as well as the team presenting to students in local schools. In July 2013, we formalised our volunteering programme and have already had over 700 colleagues volunteer and work closely with charities, NGOs and schools. Introduced four new 787 and three new A380 aircraft which are significantly quieter and more fuel efficient than the aircraft they replace. British Airways short haul fleet ranked first out of 50 airlines operating at Heathrow airport in Fly Quiet programme. Launch of the Sustainable Aviation Noise Roadmap, the first of its kind in the world, showing how quieter aircraft will contribute to reducing noise impacts per flight. IAG was ranked in the Climate Disclosure Leadership Index. This index, a key component of CDP s annual FTSE 350 report, highlights companies which have displayed a strong approach to information disclosure regarding climate change. Through improved efficiency measures we reduced our yearly building related carbon impact by 5,565 tonnes CO2 by reducing the gas and electricity used in our buildings. British Airways customers donations supported four new Carbon Fund projects helping community projects across the UK reduce emissions and their energy bills. These will deliver almost 750 thousand pounds of community benefits over their lifetimes. 82 British Airways Sustainability Report 2013

83 8.4 MITIGATING OUT IMPACT: DATA CALCULATION METHODOLOGY All environmental indicators and commentary covered in this report were reviewed during 2013, in an effort to align with the GRI version 4 framework. This work was informed by an internal materiality study, completed by drawing on our experience from reporting to the Dow Jones Sustainability Index, the FTSE4Good Index, Carbon Disclosure Project (CDP), and our own previous experience of reporting on sustainability issues and activities. British Airways has a long history of reporting on sustainability issues (our first environmental report was published in 1992), and these annual reports have evolved to meet stakeholders needs Notes on scope There are some limitations to the scope of data in this report, and these are due to the following limitations: Ground energy target Our ground energy targets only apply to properties within the UK. Water Data for the consumption of water refers solely to our UK operations, including our London Heathrow hub. However, this does not include the potable water uplifted into our aircraft. Waste & recycling data refers solely to our main bases of London Heathrow, London Gatwick, and Newcastle. Development ( (WRI/WBCSD), Additionally, the following resource supported carbon reporting in this section: Measuring and reporting environmental impacts: guidance for businesses, UK Department for Environment, Food and Rural Affairs (DEFRA), ( measuring-and-reporting-environmentalimpacts-guidance-for-businesses). Organisational boundary Operational Control British Airways accounts for 100% of emissions from operations that we or one of our subsidiaries control. Operational boundary Scopes 1, 2, and 3: Scope 1 Fuel burned directly by British Airways operations. Our definition includes all aircraft flying on a flightplan filed for British Airways, BA CityFlyer or OpenSkies. In addition we include British Airways ground vehicle fuel use and natural gas consumption at BA properties. This was primarily calculated from actual fuel burn data and metered energy use. Scope 2 Electricity use by the global British Airways property portfolio (including leased space within airports). This was primarily calculated from actual metered energy use Carbon footprint The carbon footprint section of this report (section 5.3.3) was prepared using the methodology outlined in: Scope 3 Emissions occurring across our value chain, including suppliers upstream emissions from producing goods and services for our business operations. These figures are calculated using a combination of actual fuel burn data and estimates. The Greenhouse Gas Protocol A Corporate Accounting and Reporting Standard (Revised Edition), World Resources Institute and World Business Council for Sustainable 83 British Airways Sustainability Report 2013

84 8.4.3 Greenhouse gas emissions factors Over 99 per cent of the carbon footprint was calculated using greenhouse gas emissions factors as defined by the UK government in the 2013 UK Government conversion factors for Company Reporting, ( To estimate emissions from overseas properties without metered energy data, we create annual, British Airways-specific emissions factors (kwh per m 2 occupied) based on our UK energy consumption per property type (e.g. offices, terminals, hangars, engineering, etc). quantity of NOx emissions due to engine ground running and Auxiliary Power Unit (APU) use. We do not currently calculate SO2. There is no ICAO engine emission certification standard relating to SO2 and in terms of emissions from aircraft and the impact on local air quality, SO2 is of less significance than NOx Forest footprint For all calculations related to the Carbon Disclosure Project Forests Program, we have assumed that: Carbon efficiency We calculate carbon efficiency using our organisational CO2 emissions (Scope 1 and 2) and payload carried. We report carbon efficiency in grammes of CO2 per passenger kilometre (gco2/ pax-km). The CO2 component of the carbon efficiency calculation includes all CO2 emissions within Scope 1 and 2 operational boundaries. As with the Carbon Footprint methodology, emissions were calculated using the 2013 UK Government conversion factors for Company Reporting. For the passenger kilometre component of the carbon efficiency calculation we collect all passenger and cargo payload data from flights within our Scope 1 operational boundary. The cargo data is converted into equivalent passenger-kilometres in order to capture the entire payload carried within one simple metric. Forest Stewardship Council (FSC) paper is construed of 70 percent certified material. 1 tonne of uncoated (non-recycled source) office paper is equivalent to the processing of 24 individual trees. Average tree density in affected areas is trees per acre. 1 acre of deforested land is required to produce 1.44 tonnes of beef product. 1 acre of deforested land is required to produce 1.03 tonnes of soy-derived product. 1 acre of deforested land is required to produce 1.59 tonnes of palm oil Local air quality Total NOx is based on evaluation of NOx emissions from aircraft departures, arrivals and ground operations at Heathrow. The arrival and departure NOx emission calculations are based on a modified ICAO Landing and Take-Off (LTO) cycle model, using appropriate adjustments for thrust settings and taxi times based on actual operational data. Ground emissions include estimations of the 84 British Airways Sustainability Report 2013

85 8.5 OPERATING EFFICIENCY PUNCTUALITY Operating efficiency is measured by the percentage of available seats that are used (passenger load factor). British Airways passenger load factor in 2013 was 81.3 percent compared to 79.9 percent in saw our worst punctuality performance since 2008 with 76 percent of services departing within 15 minutes and 72 percent arriving within 15 minutes. Several major incidents outside of our control impacted on our performance including two major aircraft incidents at Heathrow, poor weather including snow in January, Storm St Jude and the Christmas storms and floods. However, towards the end of the year, a sustained underlying improvement in performance was noted and the new year has started with our third best quarter since Passenger load factor and punctuality: Year Passenger load factor 81.3% 79.9% 78.2% Punctuality 76% 79% 83% 8.6 INDICATORS STARD DICLOSURE INDICATORS GRI ref 1 2 Name of indicator Statement from the most senior decisionmaker of the organisation Description of key impacts, risks and opportunities Units, explanation, location in the report *See Foreword * *See section 3 * Year on year ( ) 3 Name of the organisation British Airways Plc 4 Primary brands, products and services *See section 1.1 * 5 Location of the organisation s headquarters *British Airways, PO Box 365, Harmondsworth, UB7 0GB, UK * 7 Nature of ownership and legal form *See section 1.1 * 9 Total number of colleagues 41,720 41,843 39,852 (0.3)% Scheduled airport destinations (1.8)% Number of permanent colleagues by contract and gender Full-time female 9,480 9,718 9,142 (2.4)% 10 Full-time male 20,286 20,155 19, % Part-time female 9,140 9,260 8,886 (1.3)% Part-time male 2,814 2,710 2, % Percentage of total colleagues covered by collective bargaining groups Process for defining the report content and the Aspect Boundaries Material Aspects identified in the process for defining report content List of stakeholder groups engaged by the organisation 82.2% 82.5% 83.4% (0.3) pts *See section 8.1 * *See section 3 * *See section 2.2 * 85 British Airways Sustainability Report 2013

86 STARD DICLOSURE INDICATORS (continued) GRI ref Name of indicator Basis for identification and selection of stakeholders with whom to engage Organisation s approach to stakeholder engagement Units, explanation, location in the report *See section 2.2 * *See section 2.2 * Year on year ( ) Reporting period *This report s content covers the calendar year 1 January 31 December 2013 Date of previous report *April 2013 * * 30 Reporting cycle *Annual * 34 Governance structure of the organisation *See section 2.3 * Process for consultation between stakeholder and the highest governance body Composition of the highest governance body *See section 2.3 * *See section * 39 Report whether the Chair of the highest governance body is also an executive officer *See section 2.3 * 40 Nomination and selection processes for the highest governance body *See section * Processes for the highest governance body to ensure conflicts of interest are avoided and managed Highest governance body s and senior executive s roles in the development, approval and updating of the organisation's purpose, value or mission Identification of economic, environmental and social impacts, risks and opportunities *See section * *See section 2.3 * *See sections 2.1 & 8.2 * 48 Highest committee or position that formally reviews and approves the organisation s sustainability report *Corporate Responsibility Committee * 86 British Airways Sustainability Report 2013

87 ECONOMIC PERFORMANCE INDICATORS GRI ref Name of indicator Units, explanation, location in the report Year on year ( ) Operating profit (IAG Group) Million euros 770 (23) 485 EC1 Operating profit (BA) Million pounds % Revenue (IAG Group) Million euros 18,675 18,117 16, % EC2 Total direct and in-kind donations to charity as assessed by BITC Financial implications and other risks and opportunities for the organisation's activities due to climate change Million pounds (24.0%) *See section 8.2 * EC6 Proportion of senior management hired from local communities Based on distance between home and work postcodes where local is considered under 15 miles. Excludes colleagues outside the UK. 67% 60% 55% 7 pts EC7 Development and impact of infrastructure investments and services supported *For 2011, 2012, and 2013 there were no significant infrastructure investments or services supported * * * EC8 Significant indirect economic impacts, including extent of impacts *See section 4 * BA1 Total number of passengers carried Thousands 39,960 37,580 34, % BA2 Sectors flown Freighters 32,866 36,400 37,755 (9.7)% Passenger aircraft 310, , , % BA3 Seats flown 52,651,235 49,911,398 46,920, % BA4 Block hours flown Freighters 19,207 20,484 22,017 (6.2)% Passenger aircraft 1,060,906 1,011, , % BA5 BA6 BA7 Revenue Passenger Kilometres (RPK) Millions 131, , , % Available Seat Kilometres (ASK) Millions 161, , , % Cargo Tonne Kilometres (CTK) Millions 4,646 4,891 4,793 (5.0)% BA8 Passenger load factor See section % 79.9% 78.2% 1.4 pts BA9 Punctuality Percentage of services departing within 15 minutes of published departure time. See section % 79% 83% (3) pts 87 British Airways Sustainability Report 2013

88 INDICATORS GRI ref Name of indicator Units, explanation, location in the report Year on year ( ) Energy consumption by fuel type Aircraft jet fuel Tonnes 5,668,473 5,523,649 5,371, % Natural Gas Kilowatt hours 155,596, ,290, ,615, % Electricity Kilowatt hours 191,864, ,706, ,222,533 (3.0%) Gas oil properties (generators) Kilowatt hours 2,172,652 2,374,116 2,038,739 (8.5%) Gas oil vehicles (red diesel) Litres 5,128,243 5,053,842 5,104, % Diesel Litres (selected trucking activities reported as Scope 3 from 2013 onwards) 455,930 5,689,920 5,977,970 (92.0%) EN3 Energy consumption by fuel type in Megawatt hours Total energy consumption Megawatt hours 69,530,528 67,776,845 65,937, % Aircraft jet fuel Megawatt hours 69,123,875 67,329,089 65,487, % Natural Gas Megawatt hours 155, , , % Electricity Megawatt hours 191, , ,223 (3.0%) Gas oil combined Megawatt hours 54,250 54,043 54, % Diesel Megawatt hours (selected trucking activities reported as S3 from 2013 onwards) 4,550 56,297 59,546 (91.9%) Other Megawatt hours 391 1,417 4,133 (72.4%) EN8 EN15 EN16 EN17 EN18 EN19 EN20 EN21 Total water withdrawal Direct greenhouse gas emissions (GHG) (Scope 1) Indirect greenhouse gas emissions (Scope 2) Other indirect greenhouse gas emissions (Scope 3) Greenhouse gas emissions intensity (carbon efficiency) Amount of GHG emissions reduction achieved as a direct result of initiatives to reduce emissions Emissions of ozone depleting substances Total NOx emissions below 1000 feet from Heathrow aircraft operations Total NOx emissions below 1000 feet per turnround (arrival and departure) Cubic metres 232, , ,410 (11.9%) Tonnes of CO2e (2011 amended to reflect new methodology) 18,087,654 17,634,509 17,152, % Tonnes of CO2e (Decrease due in part to reduced CO2e in grid average) 87, ,103 97,171 (13.9%) Tonnes of CO2e (Methodology changed in 2012, so 2011 is excluded) 4,758,438 4,267,575 Na 11.5% Grammes of CO2 per passenger kilometre Tonnes of CO2 (Methodology changed in 2012, so 2011 is excluded) (0.2%) 43,278 34,454 Na 25.6% Kilogrammes of CFC-11 equivalent (Estimated emission of halons from deployment of fire suppression system) 205 Na Na Tonnes of NOx 1,239 1,157 1, % Kilogrammes of NOx per turnround (2.8)% 88 British Airways Sustainability Report 2013

89 INDICATORS GRI ref Name of indicator Units, explanation, location in the report Year on year ( ) Waste by type (in tonnes, numbers for Heathrow, Gatwick and Newcastle) Non Hazardous waste General Dry Waste Tonnes 1,459 1,517 1,336 (3.8)% ABP & Other Imported Food Waste Tonnes (9.3)% Dry Recyclables Tonnes 1,249 1,329 1,215 (6.0)% Organic Waste (green waste) Tonnes % Recoverable Liquids Tonnes (33.3)% Foul / Sewage Tonnes (16.7)% Grease Trap Liquid Tonnes % Other Non Hazardous Liquid Tonnes (3.4)% Reusable items Tonnes (83.3)% Hazardous waste Dry Hazardous Waste Tonnes (31.4)% EN23 Recoverable Liquids Tonnes (20.8)% Interceptor Liquid Tonnes 2,773 3,033 3,290 (8.6)% Other Hazardous Liquid Tonnes % Dry Recyclables Tonnes (18.4)% Clinical Waste Tonnes (9.1)% Waste by disposal method (in tonnes, numbers for Heathrow, Gatwick and Newcastle) Reuse Tonnes (83.3)% Recycling Tonnes 1,329 1,427 1,310 (6.9)% Composting / Anaerobic Digestion Tonnes % Liquid recovery Tonnes (21.2)% Energy from waste (with recovery) Tonnes 1,656 1,796 1,652 (7.8)% Incinerations (without recovery) Tonnes % Landfill Tonnes (7.7)% Liquid treatment Tonnes 4,558 4,929 4,998 (7.5)% EN24 EN32 Number of fuel leaks, spills and venting worldwide Percentage of new suppliers screened using environmental criteria N.B. venting related to temperature London summer long and hot % Estimated 80% Na Na 89 British Airways Sustainability Report 2013

90 INDICATORS GRI ref Name of indicator Units, explanation, location in the report Year on year ( ) Suppliers with significant actual and potential negative environmental impacts Catering & Fuel, estimated 150 Na Na Significant negative environmental impacts in the supply chain *Catering Supply Chain. See section 5.6 * * * EN33 Suppliers agreed to make improvements on their negative environmental impacts UK Caterers (Gate Gourmet, Alpha Flight UK & DHL). See section 6.6 * * * EN34 BA10 Suppliers terminated due to negative environmental impacts Legal actions taken about environmental impacts Percentage of aircraft fleet that meet ICAO Chapter 4 technology standard for noise None 0 Na Na % 92.6% 91.7% 1.7 pts BA11 Average noise energy per movement Based on sound intensity 1,162m 1,210m 1,271m (4.0)% BA12 BA13 Percentage of aircraft fleet that meet ICAO CAEP 4 technology standard for NOx emissions Percentage of aircraft fleet that meet ICAO CAEP 6 technology standard for NOx emissions 83.1% 82.0% 79.9% 1.1 pts 40.6% 36.7% 40.2% 3.9 pts BA14 Average age of aircraft fleet Years % Acres BA15 Forest footprint *The data for 2013 was still being processed at the time of publishing this report Na* Na BA16 Number of departure noise infringements at Heathrow (15.2)% BA17 BA18 Percentage of achievement of CDA procedure during the daytime 96.2% 95.9% 96.2% 0.3 pts Percentage of achievement of CDA procedure during the night-time 97.4% 97.2% 97.8% 0.2 pts 90 British Airways Sustainability Report 2013

91 SOCIAL PERFORMANCE INDICATORS GRI ref LA1 Name of indicator Rate of new hires by age group, gender and region Units, explanation, location in the report Year on year ( ) Headcount of joiners 2,779 4,464 2,670 (37.7)% Percentage of joiners 6.7% 10.7% 6.7% (4) pts Age Group Under 30 - rate 56.6% 45.3% 62.1% 11.3 pts rate 35.5% 43.9% 33.9% (8.4) pts Over 50 - rate 8.0% 10.8% 4.0% (2.8) pts Gender Female - rate 44.1% 46.3% 52.1% (2.2) pts Male- rate 55.9% 53.7% 48.0% 2.2 pts Region UK and Ireland 75.7% 80.9% 80.1% (5.2) pts Europe 3.5% 2.0% 2.5% 1.5 pts Americas 8.2% 8.6% 7.7% (0.4) pts Africa and ME 10.6% 7.2% 7.8% 3.4 pts Asia Pacific 2.0% 1.3% 1.9% 0.7 pts Colleague turnover by age group, gender and region Headcount of leavers 1,759 1,763 1,579 (0.2)% Percentage turnover (headcount) 4.2% 4.2% 4.0% 0 pts Age Group Under 30 - rate 35.2% 35.8% 27.0% (0.6) pts rate 42.7% 40.6% 49.3% 2.1 pts Over 50 - rate 22.1% 23.6% 23.7% (1.5) pts Gender Female - rate 48.6% 53.1% 50.5% (4.5) pts Male- rate 51.4% 46.9% 49.5% 4.5 pts Region UK and Ireland 67.4% 67.3% 68.1% 0.1 pt Europe 5.1% 4.0% 5.1% 1.1 pts Americas 13.4% 14.6% 13.1% (1.2) pts Africa and ME 11.7% 12.5% 10.6% (0.8) pts Asia Pacific 2.5% 1.6% 3.0% 0.9 pts LA2 Benefits provided to full time colleagues not provided to temporary or part-time colleagues. *See section * Return to work and retention rates after parental leave, by gender Female - returned to work ,430 (39.1)% LA3 Female - retention rate 88.8% 95.8% 96.4% (7) pts Male - returned to work (29.8)% Male - retention rate 99.8% 99.9% 98.9% (0.1) pts 91 British Airways Sustainability Report 2013

92 SOCIAL PERFORMANCE INDICATORS GRI ref LA5 LA6 LA9 LA10 LA11 LA12 Name of indicator Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes Injury rate Units, explanation, location in the report Per 100,000 man hours. This only includes events that lead to absence Year on year ( ) 100% 100% 100% 0 pts % Work related fatalities % System of rules applied in recording and reporting accident statistics *Incident reporting is carried out via a company wide system where all safety and security related events are coordinated and investigated Average hours training per colleague % Average hours training per colleague by gender Female % Male % Average hours training per colleague by colleague category Flight Crew Na 9.0% Cabin Crew (0.6)% Management (Band 1-3 plus IM) % Engineering (2.1)% Ground staff / other % Programmes for skills management and lifelong learning that support the continued employability of colleagues and assist them in managing career endings Percentage of colleagues Performance Managed Percentage of all colleagues by gender See section 7.5.5, and Performance management only applies to the Band 1-3 and IM community * * 13.1% 12.9% 12.5% 0.2pts Female 44.6% 45.4% 45.2% (0.8) pts Male 55.4% 54.6% 54.8% 0.8 pts Percentage of all colleagues by age group Under % 13.2% 10.2% 2.3 pts % 62.8% 63.7% (0.8) pts Over % 24.0% 26.1% (1.5) pts Percentage of colleagues on Leadership Team and Board by gender Female 20% 21.1% 21.1% (1.1) pts Male 80% 78.9% 78.9% 1.1 pts Percentage of colleagues on Leadership Team and Board by age group (under 30, 30-50, over 50) Under % 0.0% 0.0% 0 pts % 47.4% 47.4% 2.6 pts Over % 52.6% 52.6% (2.6) pts 92 British Airways Sustainability Report 2013

93 SOCIAL PERFORMANCE INDICATORS GRI ref LA13 LA14 LA15 LA16 BA19 Name of indicator Ratio of basic salary and remuneration of women to men, at significant locations of operation Percentage of new suppliers screened using labour practice criteria Actual and potential negative impacts for labour practices in the supply chain, and actions taken Number of suppliers subject to impact assessments Percentage of identified suppliers where relationships where terminated as a result of assessment Units, explanation, location in the report Year on year ( ) 1:1 1:1 1:1 0% *Via RPF *100% Na Na Na *See section 7.6 * 30 Na Na Na 0% Na Na Na Number of grievances about labour practices filed, addressed and resolved through formal grievance mechanisms Total number of grievance claims % Not upheld (3.7)% Partially upheld % Upheld % WIP 18 Na Na Na Colleague anonymous survey response rate (Speak Up) See section % 58% 44% 3 pts BA20 Number of graduates recruited per annum (12.3)% BA21 HR3 HR10 Number of apprentices recruited per annum Total number of incidents of discrimination and actions taken (35.4)% Total number of discrimination claims See section Na Na Na Discrimination claims not upheld See section Na Na Na Discrimination claims partially upheld See section Na Na Na Discrimination claim upheld See section Na Na Na Discrimination claim withdrawn See section Na Na Na Discrimination claim ongoing See section Na Na Na Percentage of new suppliers screened using human rights criteria Actual and potential negative human rights impacts in the supply chain, and actions taken HR11 Number of suppliers subject to impact assessments Percentage of identified suppliers where relationships where terminated as a result of assessment. *RFP evaluation followed by Sedex Four Pillar audits undertaken pre appointment (for significant contracts) or a contractual obligation to undertake a Sedex audit within a prescribed time scale post contract award * Na Na Na *See section 7.6 * Na Na Na 30 Na Na Na 0% Na Na Na 93 British Airways Sustainability Report 2013

94 SOCIAL PERFORMANCE INDICATORS GRI ref SO1 SO2 BA22 Name of indicator Operations with implemented local community engagement, impact assessments and development programs Operations with significant actual and potential negative impacts on local communities Total direct and in-kind donations to charity as assessed by Business in the Community (BITC) Direct donations to charity as assessed by BITC Units, explanation, location in the report *See section 6 * *At airports where we operate there is the potential for negative impacts associated with noise and air quality. See section 5.5 and Year on year ( ) * Pounds (000s) 7,512 9,881 9,187 (24.0)% Pounds (000s) (72.7)% Flying Start partnership cumulative total Pounds (000s) 6,763 4,248 2, % Flying Start annual total Pounds (000s) 2,515 1,967 1, % Community Learning Centre annual attendees 7,057 6,510 5, % PR5 PR7 BA23 Results of surveys measuring customer satisfaction Total number of incidents of noncompliance with regulations and voluntary codes concerning marketing communications, by type of outcomes Average number of passenger complaints per 1000 passengers *Changed survey, only based on 7 months *See section * 50%* 65% 64% (15) pts See section % 94 British Airways Sustainability Report 2013