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