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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 />

30 <strong>Etihad</strong> <strong>Airways</strong> CSR Report 2010 <strong>Etihad</strong> <strong>Airways</strong> CSR Report 2010 31


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 />

32 <strong>Etihad</strong> <strong>Airways</strong> CSR Report 2010 <strong>Etihad</strong> <strong>Airways</strong> CSR Report 2010 33<br />

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 />

34 <strong>Etihad</strong> <strong>Airways</strong> CSR Report 2010 <strong>Etihad</strong> <strong>Airways</strong> CSR Report 2010 35<br />

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

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