AS TALLINK GRUPP ENVIRONMENTAL AND CORPORATE SOCIAL ...

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AS TALLINK GRUPP ENVIRONMENTAL AND CORPORATE SOCIAL RESPONSIBILITY REPORT 2006/2007

Transcript of AS TALLINK GRUPP ENVIRONMENTAL AND CORPORATE SOCIAL ...

AS TALLINK GRUPP ENVIRONMENTAL AND CORPORATE SOCIAL RESPONSIBILITY REPORT 2006/2007

� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �

CORPORATE PROFILE 4

CORPORATE STRUCTURE 5

HIGHLIGHTS OF �006 / �007 6

ADDRESS OF CEO 8

ENVIRONMENTAL RESPONSIBILITY

TheBalticSea-OneofthemostUniqueEcosystemsintheWorld 11

EnvironmentalResponsibility-OurTopPriority 12

OurModernFleet-fortheSea,fortheEnvironment 14

AkerYards-anEnvironmentallyReliablePartner 15

TallinkProtectstheWater 17

TallinkProtectstheAir 21

TallinkProtectstheLand 25

People-theSaltoftheEarthinEnvironmentalProtectionatTallink 29

CORPORATE SOCIAL RESPONSIBILITY

BecomingtheLeaderontheBalticSeaThankstoCustomerTrust 32

Employees-FuellingTallink’sSuccess 37

Tallink-oneofthemostReputableEmployersintheBalticSeaRegion 41

AValuableCo-OperationPartnerforBothLargeandSmallCompanies 42

CorporateGovernance-NotaThing-In-Itself 44

Tallink-aGoodCitizen 46

OurEmployees-GoodWillAmbassadors 48

APartnerforSociety 51

TheEstonia’sLargestSportsSponsorshiptoKaiaKanepi 52

T A B L E O F C O N T E N T S

� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

C O R P O R A T E P R O F I L E

AS TALLINK GRUPP

ASTallink Grupp is one of the leading European ferry opera-

torofferinghigh-qualitymini-cruiseandpassengertransport

servicesintheNorthernBalticSearegion,aswellasaleading

providerofro-rocargoservicesonselectedroutes.

Ourfleetofeighteenvesselsallowsustoofferawiderangeof

services and frequent departures. As a result of our ongoing

investment and fleet renewal program, we currently deploy

someofthemostadvancedcruiseferriesintheNorthernBal-

ticSearegionwithstate-of-the-artfacilities,improvedaccom-

modation,largeonboardshoppingareasandhighqualityon-

boardservices,settinganewbenchmarkfortravelstandards

intheNorthernBalticSearegion.

The company has 6,500 employees and operates on seven

different shipping routes between Estonia, Finland, Sweden,

LatviaandGermany.Thecompany’sfleetconsistsofeighteen

vessels,includingfourrecentnewbuilds.Inthenexttwoyears

thecompanywill receivedeliveryof threemorenewvessels.

VesselsoperateunderthebrandsofTallink,Silja,andSeaWind

Line. Tallink also operates the hotel network, Tallink Hotels,

withtwohotelsinTallinn.Inthe2006/2007financialyearthe

company serviced 6.9 million passengers, with a revenue of

761millioneuros.

Dedicationandhardworkwerethecornerstonesof2006/2007,

sincetheperioddeliveredseveralnewservicestomanageand

demanded attention on the developing of previous invest-

ments.AsidefromtheintegrationprocessforSiljaLine,which

wasacquiredin2006,andtwonewroutes-Finland-Germany

and Latvia-Sweden - which were opened in the same year,

the hard-working team of ASTallink Grupp managed to suc-

cessfully launchthenewSpa&ConferenceHotel inTallinnin

March 2007. A month later the new service concept, Tallink

Shuttlewasintroduced,aswasthenewhighspeedvesselM/S

Star,runningontheEstonia-Finlandroute.

VISIONThecompany’svisionistoofferexcellenceinleisure,entertainmentandtravelservicesforeverymarketinwhichweoperate.

MISSIONOurmissionistoprovideanenjoyableandmemorabletravelexperiencethatexceedscustomerexpectationssimplybydoingmore.

AWARDSASTallinkGruppwasvotedthebestEstoniancompanyof2007

bythreeimportantorganisations-EnterpriseEstonia,theEs-

tonianChamberofCommerceandIndustry,andtheEstonian

EmployersConfederation.

Tallinkwasgrantedthe“EntrepreneurshipAward2007,”aswell

as the top award of the“Most Competitive Estonian Compa-

niesRanking2007.”Withthathonour,Tallinkbecamethefirst

companyinhistorytowinbothmainawardsinthesameyear.

Inaddition,ASTallinkGruppwasalsothewinneroftheaward

“TourismInnovator2007.”

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �

A S T A L L I N K G R U P PHoldingcompany,Estonia-FinlandandEstonia-Swedenrouteoperator,

salesandmarketinginEstonia,generaladministration.

Tallink Silja OyFinland-SwedenroutesSales&Marketing

AS Tallink BalticFinland-Germanyroute

AS Tallink Duty FreeSupplyofgoodsforships

18 Ship-owning Companies:

Tallink Silja ABSalesagentinSweden&manning

AS TallinkRiga-Stockholmroute

OÜ TDF KommertsSupplyofgoodsforships

Galaxy

VictoriaI

Romantika

Star

SiljaEuropa

SiljaFestival

SiljaSerenade

SiljaSymphony

ReginaBaltica

VanaTallinn

Fantaasia

RegalStar

Kapella

SeaWind

TallinkAutoExpress2

SuperfastVII

SuperfastVIII

SuperfastIX

AS Tallink LatvijaSales&MarketinginLatvia

OÜ HansaliinOnboardpersonnelcrewing

OOO Tallink-RuSales&MarketinginRussia

OÜ HT LaevateenindusTechnicalshipmanagement

AS HTG InvestStevedoringservices

HTG Stevedoring OyStevedoringservices

OÜ TLG MeediaMedia&Advertising

OÜ TLG HotellOperatorhotels

�� Other companies

OÜ Hera SalongidBeautyservices

OÜ HT Hulgi TolliladuPubliccustomeswarehouse

OÜ HT MeelelahutusEntertainmentonships

OÜ Tallink Travel ClubTravelservices

Neptun Juridica OyLegalservices

Suomen Jakelutiet OyHardwareandSoftwareservices

C O R P O R A T E S T R U C T U R E

6 AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

H I G H L I G H T S O F � 0 0 6 / � 0 0 7

PERSONNEL • The year 2006/2007 was the year of integration for

TallinkandSiljaLine.Allmajorgoalswereachievedbythe

endof2007.

CUSTOMERS• Thedevelopmentof thecompanyprovidedmanynew

opportunitiesforourcustomers.Oneofthemost impor-

tantopportunities isthenewgroup-wideloyalcustomer

program,ClubOne,whichprovidesclientswithmanyad-

ditionaladvantagesonall theroutesweoperate,aswell

asinassociatedhotelsandwithourbusinesspartners.

• The new Shuttle concept on theTallinn-Helsinki route

combines the convenience of high speed craft with fre-

quently-departingcruiseferriestoincreasetraveloptions

toalargeextent.

• ThebrandnewSpa&ConferenceHotelinTallinnwhich

wasonlyrecentlyopenedprovidesanadditional levelof

valueforthoseclientsofourswhowanttospendarelax-

ingtimeinthecapitalofEstonia.

• Tallinklaunchedthenewbookingandcheck-insystem,

probably one of the world’s most modern, connecting

together all our offices in six countries and hundreds of

travelagenciesacrossScandinaviaandEurope,andwhich

includestheadvancedinternetbookingmodule.

• AccordingtothesurveyconductedbyTNSEmor,Tallink

was one of the most reputable employers in Estonia in

2007.

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 7

ENVIRONMENT• Thenewandenvironmentallyfriendlyhighspeedserv-

iceconcept,TallinkShuttle,was launchedontheTallinn-

Helsinkiroute.

• 2006/2007wasthefinalseasonforTallink`shighspeed

crafts,whichconsumealotoffossilfuelsandcreatehigh

wavesintheirwake.AllofTallink`sHSC`sareeithersoldor

chartered.

• Tallinkcontinuedthe fleet renewalstrategy: thecruise

vessel,Cruise5,wasorderedfromAkerYards.

• ThecompanysignedtheWWFproposalonwastewater

issues.

• Thismillennium,Tallinkhasinvestedatotalofoverone

billion euros in renewing the fleet, and has additionally

spent hundreds of millions of euros on environmentally-

friendlyoperations.

H I G H L I G H T S O F � 0 0 6 / � 0 0 7

BUSINESS• March2007sawthelaunchingoftheSpa&Conference

HotelinTallinn.

• ThedeliveryoftheM/SStartookplaceinApril2007.

• Theadditionofasecondvessel,M/SVanaTallinn,tothe

Latvia-Sweden route helped assure daily departures on

theroute.

• Thefiguresforpassengervolumesandfinancialresults

were 6.9 million passengers and 761 million EUR in rev-

enue.

New Building 1�6� Tallink Cruise �

Delivery 2009

Lenght 212.1m

QuadrupledexhaustgastreatmentsystemconsistingofSelectiveCatalystReductionreactors

Advancedtriplebiologicaltreatmentplantforsewagewatertreatment

Highefficientcarbagecollectionandselectionsystem

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A D D R E S S O F C E O

TALLINK IS NOW A MAJOR PLAYER ON THE BALTIC SEA

Over eighteen years, Tallink has grown and become a well-

knownplayer inpassengershippingontheBalticSea.Tallink

is a large international company with 6,500 employees in six

countries.Lastyearthecompanyservedapproximatelyseven

millionpassengers.Asacompanywhichrecognisestheimpor-

tance of social responsibility, we comply with environmental

protection and marine safety requirements, and we aim to

give a share of our success back to the community and the

environmentwhereweoperate.

Tallink has become a leading company in the Baltic Sea pas-

sengershippingindustrythankstothetrustofitscustomers;

andeverydayouremployeesdotheirbesttoguaranteecus-

tomersatisfaction.Forthefuture,ouraimistonotonlybethe

flagshipoftheBalticSeapassengershippingindustry,butalso

tobeaproviderofcompletetravelsolutionsandtotakecare

ofallourcustomers’travel-relatedconcerns.

A VERSATILE AND INTERNATIONAL STAFF Exceeding customer expectations and achieving increasingly

highergoalswouldbemerewordsifitwerenotforourhard-

working employees.Tallink has 6,500 employees in six coun-

tries and values its versatile staff with their different cultural

and ethnic backgrounds. Our customers are all different; so

similarly,thesedifferencescanbebestunderstoodbyemploy-

eesfromvariousbackgrounds.Additionally,Tallinkiscontrib-

utingdailytoimprovingtheworkenvironment–theseefforts

wererecentlyacknowledgedwhenTallinkwasdeclaredtobe

oneofthethreemostreputableemployersinEstoniain2007.

ENVIRONMENTAL PROTECTION IS OUR PRIORITYAn emphasis on environmental protection is the company’s

priorityandisbasedonrealinitiativescoveringthecompany’s

activitiesatseaandonland.Tallinkismakingmuchmoreef-

forttopreservetheenvironmentthantherelevantregulations

stipulate. We use environmentally-friendly paints and bio-

ENN PANTChairmanoftheManagementBoard

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �

TALLINK ENVIRONMENTAL POLICY

• Werecognisethatenvironmentalprotectionandmanagementisoneofourhighestpriorities.

• Everyeffortistobemadetoconserveandprotecttheenvironmentfrommarine,atmosphericand

otherformsofpollution,includingoffice-basedwaste.

• VesselsaremaintainedandoperatedinaccordancewiththeMARPOLconvention

(theInternationalConventionforthePreventionofPollutionfromShips)inordertoensurethat

airandseapollutioniskepttoitslowestpracticablelevels.

• Ourvesselsuselowsulphurcontentfuel.

• Weoperateapolicyofzeroseaspillageandourobjectiveistoeliminateallpossibilityofpollutionatthesource.

• Allofourvesselshavereceivedalltherequiredinternationalpollutionpreventioncertificates.

• Inordertoprotecttheenvironmentwecomplywithcompulsoryrulesandregulations.

• Weactivelypromoteenvironmentalawarenessbycontinuouslytrainingandeducatingouremployees.

• Wefollowtherequirementsfortheefficientuseofenergyandmaterialsinourofficesandonboardvessels.

• Whereverpracticable,weadopttheprinciplesofre-useandrecycling.

• Weprefersuppliersandcontractorswhoapplyenvironmentalstandards.

A D D R E S S O F C E O

chemicals for ship maintenance; we establish strict environ-

mental sustainability requirements for our sub-contractors;

shipmachineryoperatesonfuelswithalowsulphurcontent;

wasteissorted,andwastewaterfromtheshipsistreatedon-

boardanddischargedashoreinports.

Inordertoenhanceenvironmentalprotectionandsustainabil-

ity,Tallink has constantly been renewing its fleet which, de-

spiteitssize,isnowoneofthemostmodernfleetsintheBaltic

Searegion.Thecompanyhasanambitiousstrategicobjective:

ourwishisthatinthefuturenoneofourvesselswillbeolder

thanbetweenfifteentotwentyyears.

NotonlyisTallinkoneofthemostsuccessfulcompaniesinEs-

tonia,thecompany,togetherwithotherlargecompanies,also

acts as the heart of the Estonian economy, pumping success

into the veins of smaller Estonian companies day after day.

That way, Tallink Grupp – which in 2007 was declared to be

thebestcompanyinEstoniainthreeimportantcompetitions

–doesnotkeepthissuccessto itself,buttriestoboostbusi-

nessgrowthforalmost500largeandsmallbusinesspartners

andsuppliers.

As a major tax-payer in Estonia, Finland and Sweden,Tallink

believesthatfinancialsuccesscanonlybeguaranteedthrough

responsible and sustainable development. Therefore, each

year,TallinkGruppgivesasignificantshareofitssuccessback

to society and the environment in which the company oper-

ates;Tallinksupportssports,culture,youthandchildren’sedu-

cation, and environmental protection. For two years, Tallink

has supported Kaia Kanepi, the most successful Estonian fe-

maletennisplayerever,givingherthelargestsponsorshipin

Estoniansportshistory.

“Notruemarinainthesouthernwatersiscompleteunlessthere

areat least twosun-tannedEstonians, theirhairbleachedby

the salty sea winds,” – as Ernest Hemingway, the later Nobel

Laureate in Literature, wrote in his novel,“To Have and Have

Not,”firstpublishedin1937.Asthe‘flagship’ intheBalticSea

passenger shipping industry, Tallink is striving to guarantee

thatEstoniaandtheotherBalticSeacountrieswillstillbesea-

faringcountriestodayandtomorrow,andthatthecompetent

sailors from these countries will be a welcome help in every

portintheworldandonboardeveryship.

Finally, Iwould like to thankallofTallink’scustomersand in-

vestorsfortheirtrust,andourwonderfulemployeesfortheir

contributiontothedevelopmentofthecompany.Iwisheve-

ryonesuccessandprosperityforthenewyear!

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 11

THE BALTIC SEA – ONE OF THE MOST UNIQUE ECOSYSTEMS IN THE WORLD

TheBalticSeaisoneofthemostuniquemarineecosystemsin

theworld.ProtectingtheBalticSeawillhelptopreservebio-

diversity,andwillalsomaintainthelivelihoodofthemillions

ofpeoplelivinginthenineBalticSeacountrieswhichallcon-

sidertheBalticSearegionastheirhome.

The Baltic Sea has already had to pay a high price for many

yearsofhumanactivityonthesea– illegalorexcess fishing,

irresponsible shipping operations, the strain and pressure of

agricultureandindustry;allofthese,amongotherthings,con-

tinuetohaveanegativeimpactonsuchafragilemarineenvi-

ronment.Asaresult,themarineecosystemoftheBalticSeais

oneofthemostendangeredontheentireplanet.

THE POLLUTION-SENSITIVE BALTIC SEA The Baltic Sea is sensitive to pollution due to its slow water

circulation.IntheBalticSea,evaporationandprecipitationare

almostbalanced.Ittakesabout25yearstoreplaceallthewa-

terintheBalticSea.Sowecansaythatthisisapracticallystag-

nantwaterbody.Waterexchangewiththeopenseathrough

theshallowDanishstraitsispoorandmostlydependsonthe

winds. Nevertheless, the Danish straits are enough to main-

tainasaltcontentinthewateroftheBalticSea.Thesalinityis

not high, though – the water here is brackish water which is

neitherfreshnorsaltyenough.Theaveragedissolvedsaltcon-

tentoftheBalticSeaislessthan10‰,whereasintheoceans

theaveragesalinityisabout35‰.Theflowofbothfreshand

salt water into the same water body causes the water to be

brackishandalsocausesstratification,orthelayeringofsalts

(the heavier salt water and the light fresh water do not mix

completely).Thiscreatesfavourableconditionsforthedevel-

opmentofaspecialbutfragileecosystem.TheBalticSeaalso

has specific ice conditions: the shallower bays may freeze to

thebottomincoldwinters,resultinginashortageofoxygen.

ThisinturnaffectsplantandanimallifeintheBalticSea,such

asfish.

A COMMON PLAN OF ACTIONTheEstonianFund forNatureparticipates in theBEAP (Baltic

Eco-region Action Plan) project which unites all the national

WWFdepartmentsoftheBalticSeacountriesandthepartner

organisations.BEAPisaversatileprojectwiththeaimofcon-

sideringthe factorsaffectingthestateof theseaasawhole.

Themainobjectiveistoprotectandrestoretoasgreatade-

greeaspossiblethefullextentofthebiodiversityoftheBaltic

Sea.Theeffectivenessofnatureprotectionreliesagreatdeal

on a thorough knowledge of the actual situation; therefore,

weareconstantlycollectinginformationaboutthestateofthe

BalticSeaandmonitoringtheimpactofdecisionsandpropos-

alsmadebygovernmentsontheconditionandfutureofthe

sea.

Ivar Tamm

DirectorofCommunications

EstonianFundforNature

E N V I R O N M E N T A L R E S P O N S I B I L I T Y

1� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

E N V I R O N M E N T A L R E S P O N S I B I L I T Y

ENVIRONMENTAL RESPONSIBILITY – OUR TOP PRIORITY

AS Tallink Grupp recognises that environmental protection

and management is one of its highest priorities. Every effort

is to be made to conserve and protect the environment from

marine and atmospheric pollution and any other form of

pollution, including office-based waste.

Our vessels are maintained and operated in accordance with

theMARPOLconvention(theInternationalConventionforthe

PreventionofPollution fromShips).Thisensures thatairand

seapollutioniskepttothelowestpracticablelevels.

Tallink operates a zero spill policy. Our objective is to elimi-

natethepossibilityofpollutionatthesourcebyensuringhigh

standardsofsafetyandawarenessaremaintainedandthatall

relevant legislationandconventionsarefollowedforbothits

seaandshoreactivities.Tallink isalsocommittedtothecon-

tinualimprovementofthemethodsthatareusedtocarryout

and achieve this objective, including the use of equipment

andpracticesthatminimiseswastegeneration.

AN ENVIRONMENTALLY AWARE CHOICE OF CONCEPTS: TALLINK SHUTTLEThe M/S Star and Tallink Shuttle services have added a new

dimension to maritime transport on the Baltic Sea. The fast

passengership,Star,hasanentirelynewconcept,combining

the best features and tractive force of five vessels. With this

newShuttleconceptthecompanycanreplaceasmanyassix

vessels–fourAutoExpresshigh-speedvessels,thelargeferry,

MeloodiaandthecargovesselKapella.

Theshipwaspaintedgreeninordertoemphasiseitstheenvi-

ronmentallyfriendlynatureandtheserviceitoperates.Starit-

selfusesrelativelylessfossilfuelsthansmallhigh-speedcrafts,

anddoesnotcreatebigwaveswhichcandamagethemarine

environment.

Untilspring2007,high-speedtravellingontheBalticSeawas

the privilege of passengers only. Until then, the carriage of

goods between Helsinki andTallinn was done aboard cruise

shipswhichtravelthedistancein3.5hours;whereastodayStar

travelsthesamedistanceinlessthantwohours.Andsincethe

stayattheportisshort,theunloadingandloadingprocesses

arealsoquicker.Thesignificanttime-savinggainedinboard-

ing,crossing,anddisembarkingallowscompanieswhotrans-

portgoodstooffertheirclientsanevenfasterservice.Starhas

ahighIceClassratingandthemostpowerfulmachineryofall

vesselsflyingtheEstonianflag;unlikehigh-speedvessels,Star

canalsotraveltheseaindifficultweatherconditions.

The investments made into the launch of theTallink Shuttle

service reaches hundreds of millions of euros.This service is

highly promising and Tallink will continue to make substan-

tialinvestmentsintheservicebylaunchingananalogousnew

vessel in the spring 2008. This fast passenger ship, which is

calledSuperstar,iscurrentlybeingbuiltinItalyandwillfurther

enhancetheTallinkShuttlehigh-speedservice.

INTERNATIONAL ENVIRONMENTAL CERTIFICATES FOR TALLINK

• MARPOLSewagepollutionpreventioncertificate

• MARPOLAirPollutionPreventionCertificate

• IAFSInternationalAnti-FoulingSystemCertificate

• MARPOLOilPollutionPreventionCertificate

• DocumentofComplianceforAnti-foulingSystem

• MARPOLGarbagePollutionPreventionAttestation

1� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

OUR MODERN FLEET: FOR THE SEA, FOR THE ENVIRONMENT

AS Tallink Grupp has been one of the leading companies in

the Northern Baltic Sea region not only thanks to the size

of its fleet, but also due to the number of new vessels which

have recently arrived. One of the most important ideas be-

hind the renewal of the fleet is to protect the environment.

Themostrecentnewvesselswhicharenowsailingunderthe

Tallinkbrandarethecruiseferries,Romantika(2002),VictoriaI

(2004),Galaxy(2006),andthenewgenerationhighspeedves-

sel, Star (2007). Next year we are looking forward to deliver-

iesof thesecondnewgenerationhighspeedvessel,M/SSu-

perstar,andtheGalaxy-typecruiseferry,Cruise4.In2009the

cruiseferrywhichcurrentlyhasacodename,Cruise5,willalso

joinourfleet.OurthreeSuperfastvesselsarealsorecentnew

buildings,havingbeenunveiledin2001and2002.

GOAL: ALL VESSELS ARE YOUNGER THAN TWENTY YEARSThenewarrivalsarepartof thecompany’sstrategyto finally

reachapositioninwhichnovesselinthefleetisyoungerthan

betweenfifteentotwentyyears.Itisaveryambitiousplan,but

definitelynotunreachable.

Ourpassengersaresatisfiedwiththisdevelopment,sincetrav-

elling with our modern vessels is becoming more and more

comfortable,butalsobecauseoftheimportantfactthatthey

areenvironmentallyfriendly.

Agoodexampleis inthevariousvesselsinthemarketwhich

plytheTallinn-Helsinkiroute,whereyoucanchoosebetween

the services of cruise ferries, ro-pax ferries and high speed

crafts.Thelatter-highspeedcrafts-arecreatingquiteheavy

waveswhentheyoperate,somethingthatisclaimednottobe

goodforthesea’senvironmentortheshoreline.In2007Tallink

heraldedaneweraontheroutebylaunchingthehighspeed

ferryStar,whichisalmostasfastastheolderhighspeedcraft,

but does not create the waves which are a characteristic of

highspeedcraft.M/SStarreplacedTallink`shighspeedcrafts

andTallinkusesthehighspeedcraftsnomore,asthreeoutof

thefourhavealreadybeensold.

Wearegladthatothershippingcompaniesintheregionhave

also started to follow the trend, ordering new vessels them-

selves.

THE ENVIRONMENTAL CONTRIBUTION OF MODERN SHIPSNewormodernisedshipscanhaveareducedeffectontheen-

vironment through the implementation of new environmen-

tally-friendly solutions. Either in ship design, in the form of

advancedhull formsor lowfuelconsumption,or in reducing

emissions, in the form of exhaust gases, noise and vibration,

differentwasteproducts,etc.

Thevesselscanalsobenefitfromanextendedservicelifewith

environmentallyfriendlysolutions.

There are already several international rules and regulations

which require the prevention of sea or air pollution (such as

IMO,MARPOL).Oneofthenewest,whichwillarriveveryshort-

ly,isforballastwatertreatmenttopreventharmfulorganisms

migratingbetweenharbours.

Minimising negative environmental effects is already being

considered at the design stage for new passenger vessels.

Nowadaysitistakenforgrantedthatnostanniferouspaintis

usedtokeepavessel’sbottomclean,andthatemissionsinto

theairorwateraswellasnoisepollutionbeingcreatedbyen-

gines,ventilationandothernoisyfunctions,arekeptaslowas

possible.

New engines are constantly being designed in order to op-

timise fuel consumption, and environmentally friendly fuel

variations are being developed. A good example is the Aker

Yards-builtLNGpoweredpassengerferries,ie.thoseusingliq-

uidnaturalgas;withCO2emissionsradicallyreduced.

E N V I R O N M E N T A L R E S P O N S I B I L I T Y

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 1�

AKER YARDS - AN ENVIRONMENTALLY RELIABLE PARTNER

AllvesselsbuiltbyAkerYardsforTallinkfulfiltheinternational

“MARPOL” rules for preventing sea or air pollution and also

have biological waste water treatment plants on board. The

catalyticreductionunitsinstalledonboardthevessel,Victoria

I forthebettercontrolofexhaustemissions,makethevessel

oneofthemostenvironmentallyfriendly.Asforthecruisefer-

ries,Cruise4andCruise5, there is thepresenceofadvanced

dynamicsinthehullformwhicharedesignedtominimisethe

overallpowerdemand.

An excellent example of versatile modern solutions from the

environmentalpointofviewistheworld’sbiggestcruiseship

whichisbeingbuiltatAkerYards.Onetechnicalimprovement

onboardisthatofadvancedwaterpurification.Thestate-of-

the-artAWPplantpurifiesalloftheship’sgreyandblackwa-

terstoalevelinwhichitisvirtuallypuredrinkingwaterbefore

itisreleasedintothesea.

Thevesselalsohasdiesel-electricpropulsion. In order toen-

surethebestpossiblefueleconomyandsubsequentenviron-

mentally-friendlyoperation,aseriesofdifferenthydrodynamic

improvementsincludinganewducktaildesignwerecarefully

studiedandbroughtintouse.

Aker Yards takes its environmental responsibilities seriously.

Environmentalstatusreportingisanintegralpartofthecom-

pany’sannual reporting,onaparwith reportingon financial

mattersandoperations.

AkerYards iscommittedtocomplyingwiththerequirements

containedinlaws,rules,andregulations.Thiscommitmentex-

tends to evaluating and adopting environmentally beneficial

improvements inproductionprocesses,alternativematerials,

and services.The Group will promote open communications

on environmental issues with employees, neighbours, public

authorities,andotherinterestedparties.

AkerYards’activitieshaveonlyalimitedenvironmentalimpact.

No significant accidental emissions to the environment were

recordedin2006.AkerYardscompaniesgatherandsortwaste

toensureenvironmentally-responsiblehandling,disposal,and

therecoveryofanyresidualvalue.

Sinikka Railo

CommunicationsManager,AkerYards

E N V I R O N M E N T A L R E S P O N S I B I L I T Y

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E U R 5 5 0 m i l l i o n n e w b u i l d i n g p r o g r a m 2 0 0 2 - 2 0 0 7 o f A S Ta l l i n k G r u p p

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TALLINK PROTECTS THE WATER

Each drop of water contains a whole world, and Tallink is

making efforts both at sea and on land to protect this world.

Life on Earth began in the sea and life on our planet cannot

be sustained without clean water.

SAFETY STANDARDSIn Tallink’s operations, securing the safety of people, the en-

vironmentandpropertycomesfirst.TheobjectiveofTallink’s

Safety Management System is to ensure that the valid rules

and requirements set out by the IMO maritime authorities

(theInternationalMaritimeOrganisation),variouscertification

bodies,andothermaritimeorganisations,aswellastheirap-

plicableregulationsandstandards,areadheredto.Themod-

ern technical systems on board new ships are built in a way

whichallowsthemtocontributeinprovidingtheverysafestof

voyagesandmaintainacleanseaandairenvironment.

WASTE AND OILY WATERSWastewater isdefinitelyalsoaproblemfortheBalticSea,as

discharging waste water into the sea is officially permitted.

Tallinkiscooperatingwithportstoleavewastewaterandoily

water from its ships at the harbour. The waste water is also

cleanedonboardwithmodernequipment.Toproveourpoint

in protecting the sea’s environment in this way, Tallink has

also joinedtheWWF (theWorldWildlifeFund)agreement to

continuethispolicyinthefuture.

CHEMICALSThe chemicals used on board ships to keep them tidy and

cleanaremostlybiochemicalandthereforealsoenvironmen-

tallyfriendly.

ANTIFOULING SYSTEMSAccording to the WWF, the hull of a ship is a perfect home

formarinespeciessuchasalgaeandbarnacles.“Buttheseso-

called fouling organisms slow down ships, increase fuel con-

sumption, and reduce the durability of vessels. People have

longusedvariouschemicalstokeeptheirshipsfreeoffouling

organisms.Inthe1960s,thechemicalsindustrydevelopedor-

ganotins - toxic chemicals that can be added to paint which

kill anything that attaches itself to a ship. The problem is,

these chemicals leach from the paint into sea water, and are

absorbed by marine organisms. Persistent and bioaccumula-

tive,theycanremainintheenvironmentandincreaseincon-

centrationastheyclimbupthefoodchain,”theWWFsaysat

www.panda.org

TALLINK – AHEAD OF THE FUTUREIn2001,theIMOfinallyadoptedtheInternationalConvention

on the Control of Harmful Antifouling Systems on Ships to

phaseoutdangerousantifoulingchemicals.

Many countries are still planning to ratify the convention,

whereas Tallink has been voluntarily implementing the con-

ventioninitsactivitiesforsometimenow.ForTallink,thepro-

tection of the marine environment is very important. There-

fore, the maintenance of all the company’s vessels has for

years been carried out in compliance with this international

convention.AllvesselsintheTallinkfleetalsohavecertificates

provingtheircompliancewiththisconvention.Shipsbuiltbe-

fore2003havebeenre-paintedwithenvironmentally-friendly

paints;andinthecaseofallnewerships,theprincipleofen-

vironmentalfriendlinesshasalreadybeenadheredtointheir

construction.ThehullsofTallink’svesselsarecleanedbydivers

who,whenconductingthisprocess,donotusechemicalsthat

areharmfultotheenvironment.

TallinklaudsthedecisionofthestatestojointheIMO’sinter-

national agreement and hopes that this will motivate other

shipoperatorstogivemorethoughttoenvironmentalprotec-

tionandtokeeptheBalticSeaclean.

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18

TALLINK HAS JOINED THE INITIATIVE TO STOP DISCHARGING WASTE WATER INTO THE BALTIC SEATheWWFandtheEstonianFundforNature(ELF)haveencour-

agedshipoperatorsintheBalticSearegiontostopdischarg-

ing waste water from ships into the Baltic Sea. Additionally,

theshipoperatorshavealsobeeninvitedtojointhevoluntary

agreementnottodischargewastewaterintotheseaininter-

nationalwaterswheresuchdischargingisallowed.Byjoining

the initiative, theshippingcompaniesandshipoperatorsas-

sertthatwastewaterwillbetreatedonboardshiporwillbe

transferredtoonshorewatertreatmentfacilities.

On 18 June 2007, the WWF published the list of companies

who have joined the voluntary initiative. One of the eleven

companiesonthelistwasASTallinkGruppwhichhadalready

implementedtheseprinciplesonthevesselsoperatedunder

theTallink,SiljaLineandSeawindLinebrandsbeforethispar-

ticularinitiative.

Untreated waste water contributes to eutrophication in the

Baltic Sea – ie. the proliferation of seaweed which in turn

causesalackofoxygeninthewaterandasaresultmaycause

thedeathoffishandothermarineanimalsandorganisms.The

excessofnutrientsisaseriousthreattothebiodiversityofthe

BalticSea;therefore,theWWFandELFhaveencouragedship

operators to protect the marine environment by ceasing to

dischargewastewaterfromshipsintothesea.

Byvoluntarilyapplyingtherestrictions,theshipoperatorsare

abletoshowtheirinterestinthepreservationandrestoration

oftheuniquebiodiversityoftheBalticSea.

IncooperationwithninecountriesaroundtheBalticSea,the

WWFisusingtheprogrammefortheprotectionofthemarine

environmentoftheBalticSeatotargetthebiggestproblems

threateningtheBalticSeaasawhole.

TheELFishandlingtheenvironmentalproblemsandthepro-

tection and conservation of the Baltic Sea within an interna-

tionalcooperationnetworkwhichincludesthebranchoffices

oftheWWFinthecountriesborderingtheBalticSea.Thepri-

mary activities of the ELF under the programme include the

creation of protected marine areas and all activities related

tothedangerscreatedbythesignificantincreaseinmaritime

transport,includingtheimprovementofthepreparednessfor

containingpotentialoilspillsintheGulfofFinland.

Source: WWF & ELF

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 RESPONSIBILIT Y REPORT �006/�007

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TALLINK PROTECTS THE AIR

The sea and sky merge on the horizon, and similarly, the

measures for water and air protection used by Tallink, the

biggest shipping group in the Baltic Sea Northern region, are

also intertwined.

Still, many people generally associate the shipping industry

with objects in the water and the seas themselves, and less

withtheairwhichtotallysurroundsusbutisoftenunnoticed.

Whatiscertainisthathumanactivitydoeshaveanimpacton

thequalityofaireverywhere,atseaandon land. It is impor-

tanttobeawareofthisfactandforustotrytodoeverything

in our power to guarantee that subsequent generations also

haveachanceoflivinginacleanenvironment.

Althoughtheshippingindustrydoeshaveaneffectontheair

too, this negative impact is significantly smaller than that of

othermeansoftransport,thankstothejointeffortsofcompa-

nies,governmentsandvariousorganisations.Therefore,mari-

timetransportisalsooneofthepreferredmeansoftransport

intheEuropeanUnion.

The environmental policy of ASTallink Grupp includes clear,

specificmeasuresfortheprotectionoftheenvironmentwhere

itconcernsairqualitylevels.

LESS EXHAUSTION GASESExhaustgasesareaverybigproblemforourwholeplanet. It

hasbeenproventhatmaritimetransport ismanytimesmore

environmentallyfriendlybecauseitproducesmanytimesless

exhaustgasesasdoes land-basedtransport.That isalsowhy

theEuropeanUnionhasstartedaplan tosupport thedevel-

opment of shipping as the logistical means for transporting

goods.

TALLINK USES ONLY LOW-SULPHUR FUELTallinkishuntingdownopportunitieswhichwillallowittodo

moreforthesakeoftheenvironmentandthatiswhythecom-

panyisusingonlylow-sulphurfuel,investingmoreinusingfu-

elswhichhaveanevenlowersulphurcontentthanthatwhich

isalreadyrequired.Thishelpstofurtherdecreasetheexhaust

fumeswhichareproducedbyships.

In some ports like Stockholm it is possible for our vessels to

switchoff theenginesandusetheelectricityof theharbour.

Thatminimizesthefuelusageanddiminishesthenoise level

intheportarea.

The company is also using fuel supplements to decrease the

sootpercentageinexhaustfumesinordertomakethemless

harmful to the environment where air quality levels are con-

cerned.

The catalytic converters in ships are also important tools in

contributingtoenvironmentalcare.

Catalytic converters are the most effective means of reduc-

ingNOxlevelsinexhaustfumes,withanachievablereduction

levelofupto90-99%.

CERTIFIED SPARE PARTS ONLYAllthatmovesalsoabradesandthereforewerenewourequip-

mentregularly.Tallinkusesonlycertifiedsparepartsinorder

toguaranteethebestworkingresultsincombinationwithen-

vironmentalsafety.

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THE EUROPEAN UNION INTEGRATED MARITIME POLICYFAVOURS SAFE AND SECURE SHIPPING “The first goal of an EU Integrated Maritime Policy is to cre-

ateoptimumconditionsforthesustainableuseoftheoceans

andseas,enablingthegrowthofmaritimesectorsandcostal

regions.

In many member states the recent growth of the maritime

economy has been higher than that of the overall economy;

particularly in regions which are active in maritime logistics.

Containermovementhasgrownconsiderablysince2000and

isexpectedtotripleby2020.Regionswhichareactiveinother

strong growth markets, such as marine equipment, off-shore

wind energy, recreational boating, and cruise shipping, will

also continue to benefit from this growth. The potential for

European industries to develop cutting-edge maritime prod-

uctsthatcantakealeadinworldmarketsisalsoconsiderable,

given Europe’s considerable expertise in marine technology.

/…/

ShippingisvitalforEurope’sinternationalanddomestictrade

and remains the backbone of the maritime cluster. However,

thisindustrywillonlycontinuetoprosperiftheUnionkeeps

workingtoestablishahighlevelofmaritimesafetyandsecu-

rity, helping to safeguard human lives and the environment

whilepromotinganinternationallevelplayingfield.

Although shipping is a preoccupying source of air pollution

and CO2 emissions, it remains considerably more energy ef-

ficientthanroadtransport.Forthisreason,andbecauseofthe

need to reduce the number of lorries on Europe’s congested

roads,anIntegratedMaritimePolicystronglyfavoursthepro-

motion of safe and secure shipping. Current EU programmes

(TEN-T and MARCO POLO) will continue to support the crea-

tion of the Motorways of the Sea and/or the Short Sea Ship-

ping Networks. The future development of TEN should also

takefullaccountofthe increasingusesoftheseas intheen-

ergyfield.”

Source: An Integrated Maritime Policy for the European Union;

Brussels, 10.10.2007 COM (2007) 575 final.

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TALLINK PROTECTS THE LAND

Although water covers 71 per cent of the Earth’s surface,

Tallink makes similar efforts to protect the land environ-

ment, even though most of the company’s activities take

place at sea. In nature everything is interconnected, and wa-

ter, air and land must be protected in order to guarantee a

clean environment.

OUR OFFICES AND HOTELS: SUSTAINABILITY ABOVE ALLApartof thecompanyourpassengersdonotseesooften is

theTallinkoffices.Butalsotherewecandoquitealotforthe

sakeoftheenvironment.Itstartswiththesmallthingslikeop-

timising energy consumption by switching off the lights for

thenightandswitchingofftheheatinginroomswhichdonot

requireheating.Ofcoursethishastobedoneregularly.

OneofthemostimportantfactsisthatmostofTallink’sdocu-

mentation is held only on an electronic basis, so that paper

documents are used only when it is really necessary. With

6,500employeesandsixmainofficesthiscanresult inavery

largesavinginpaper.

Theemptycartridgesfromprintersdonotgointothebin,but

areinsteadrefilledoverandoveragain.

TheenvironmentalpolicyofTallinkHotelsisbasedonthecri-

teriaoftheEstonianGreenKeyprogramme.

For an accommodation facility, the more significant areas of

environmental impact are definitely electricity consumption,

thermalenergyconsumption,waterconsumptionandwaste.

We have an effective waste handling system; waste is sorted

inaccordancewiththerequirementsofthelaw.Thefollowing

are collected separately: glass, tin cans, plastic bottles, pack-

aging,hazardouswasteandorganicwaste.

The Tallink Spa & Conference Hotel has been opened for al-

mostayearandwenowhaveanunderstandingofitspotential

environmental impact. Since the hotel is still quite new, the

specificdetailsofthehotel’senvironmentalpolicyarestillbe-

ingworkedout.Oneoftheobjectivesistodecreasetheenvi-

ronmentalimpactofouraccommodationfacilitywhichinturn

wouldalsohelptosaveonexpenditure.

The utility systems installed in the hotel are state-of-the-art

and the systems are controlled by an automated computer.

This ensures that the hotel technicians always have an over-

view of the ventilation, the lighting, the heating and the en-

ergyconsumption.Forexample,theconstantmonitoringand

adjusting of the systems’ performance has helped to signifi-

cantlydecreasethehotel’senergyconsumption.

Main onland priorities:

• Optimisingenergyconsumption

inofficebuildingsandhotels

• Electronicdocumentationsystemhelps

todiminishpaperusage

• Printercartridgesarerefilled

• Usageofrecycledpaper

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OUR VESSELS: RESPONSIBILITY EVERY SECONDThehandlingofthedomesticwastewhichisproducedbythe

shipsisalsoaresponsibilitywetakeveryseriously.Wealready

sortdomesticwasteonboardourshipsasmuchasispractica-

ble,andinportthewasteistransferredintothecareofcerti-

fiedwastehandlers.

That which is used also gets old and broken – that’s a given

fact.Asmuchasispossible,usedsparepartsarehandedover

tocertifiedmanufacturersandmostofthematerialisrecycled

andislargelyusedalloveragaininanewformat.

Main priorities on board:

• Sortingdomesticwasteonboard

• Cooperationwithcertifiedandapprovedmanufacturers

• Usageofsparepartsproducedbycertifiedmanufacturers

• Recycling

COOPERATION PARTNERS: SHARED VALUESOurmanycooperationpartners-forinstance,AkerYards,Fin-

cantieri, BLRT in the shipbuilding and renovation sector to

namesomeofthem-arealsoputtingalotofeffortintousing

environmentally friendly working methods.Together we can

createamuchlargereffectthanwouldotherwisebethecase,

andwehopewewillbeabletoaddtoournumberofcoopera-

tionpartnersinthefuture,partnerswhocareabouttheenvi-

ronmentinwhichwealllive.

Main cooperation priorities:

• Weprefersuppliersandcontractorswhoapply

environmentalstandards

Tallink’s efforts to protect the land are supported by “three

whales”:themeasurestakeninoffices,themeasurestakenon

ships,andtheobservanceofcommonenvironmentalprincip-

lesbyTallinkanditsbusinesspartners.Theultimatedreamof

eachsailoristoalwaysreachport;similarly,thewishofTallink,

thelargestshippinggroupintheBalticSearegion,isthatthat

thefamiliesandfriendsofourcrewmembersareabletowait

fortheirlovedonesonunspoiltland.

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PEOPLE – THE SALT OF THE EARTH IN ENVIRONMENTAL PROTECTION AT TALLINK

Even the most stringent environmental requirements will be of no use if there are no people who closely adhere to these requirements every day. Therefore, Tallink has un-dertaken to continually give its employees training in en-vironmental protection and to encourage employees to think green by inviting them to participate in various en-vironmental events.

Tallink’s environmental policy provides even more stringent

environmental requirements for the company than relevant

legislation and international agreements stipulate. For ex-

ample,Tallink does not release a single drop of waste water

fromtheshipsintothesea,althoughinternationalregulations

wouldallowustodothat.Naturally,wetransferallbilgewater

attheport.AnothersignofqualityisthefactthatTallinkfol-

lowstheprinciplesandrecommendationsoftheISO14001en-

vironmentalmanagementstandardthroughoutitsactivities.

TRAINING AND EVALUATIONSIn order to apply stringent environmental requirements in

practice, all crew members also receive training in environ-

mentalprotection–bothuponfirststartingworkandcontinu-

allyduringtheiremploymentonaship.Bythismeans,allem-

ployeeswillgainanoverviewofTallink’senvironmentalpolicy,

theprotectionofthemarineenvironment,andtheimpactof

pollutiononthesea,aswellaspracticalknowledgeaboutthe

safehandlingofwastewater,refuseandoils,andthepreven-

tion of pollution risks. Once every five years, crew members

mustprovetheirexpertiseinthepreventionofmarinepollu-

tion, pursuant to the MARPOL convention (the International

ConventionforthePreventionofPollutionfromShips)which

is carefully observed on all Tallink’s vessels in the course of

dailyoperations,andisalsoobservedduringtheundertaking

oftechnicalmaintenanceduties.

EXPENSIVE WATER TREATMENT EQUIPMENT ON SHIPS Furthermore,Tallink’sshipsareequippedwithwatertreatment

equipment worth of millions. This guarantees that all waste

water goes through a complicated treatment process on the

shipsandthattherefuseissortedbeforeit istransportedoff

theshipattheport.

But all the expensive equipment will only be effective if em-

ployeeshavetheknowledgeanddesiretouse it.That iswhy

the environmental training of employees at Tallink is an on-

goingprocess.Tallink’semployeesarepreparedtoattendtree

plantingeventsandtotakepartinotherenvironmentalactivi-

ties,evenwhileoffduty.

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KALEV JÄRVELILL: VISIT THE FOREST MORE OFTEN“Iwishpeoplewouldgototheforestmoreoften,asawayof

releasingstress,”saysKalevJärvelill,amemberoftheSupervi-

soryBoardofASTallinkGrupp.Hehimselfspendsoneortwo

days in the forest each week and feels great in the country-

side.

KalevJärvelillhasbeengoinghikingfortenyears.Hehastrav-

elledoverallthecontinentsandhasbeenontripseverywhere

from Asia to Antarctica.“Antarctica is the cleanest continent

–youmusttakebackhomeeverythingthatyouhavewithyou

when you arrive,” says Järvelill.“Antarctica is also the world’s

driest continent and everything that is left behind will stay

thereformillionsofyears.”

HIKING –THE MOST JOYFUL ACTIVITY InKalevJärvelill’sestimation,hikingisthemostsensibleactiv-

ity as it helps people realise that there are things we should

notruin.“Itisinterestingthattheforestcampingsitesthatyou

can access by car tend to be strewn with litter, whereas the

campingsitesyoucannotdrivetoareclean,”Järvelillwonders.

“Peoplewhocarryeverythingontheirbackalsocarryall the

litterbackhomewiththem.Hikingisagoodwaytomakepeo-

ple realise that the people coming after you should also be

able to see the same surroundings as you first did. I do not

knowanyserioushikerswhowouldeverleavelitterbehindin

thecountryside.”

ItwassomewhatofacoincidencethatKalevJärvelillbecame

interestedinhiking.HisfriendboughtacanoeandinvitedKa-

lev to go on a spring-time canoeing trip on the River Jägala.

Thetripendedwithaswimintheice-coldAprilwater.“Iprom-

isedmyselfthatIwouldnevergoonawatertripagain,butsix

monthslaterIboughtacanoemyself,”recallsJärvelill.

ESTONIA IS A COOL PLACE The man who could live anywhere in the world has nothing

but praise for Estonia. “Denmark, for example, is basically a

park and you must use a plane in order to get to untouched

countryside,whereas inEstoniayoucanseeabeaverdamor

virginforestafterjustathirtyminutedriveoutofthecapital,”

Järvelillexplains.“ThatisalsothereasonwhyIdon’teverwant

to move away from here – Estonia is a cool, wonderful place

forpeoplewholovenature.Finland,SwedenandEstoniaalso

offer unlimited options for hiking and camping; for instance,

morethanfortypercentofEstoniaiscoveredbyforest.”

YOU CAN ONLY HEAR TRUE SILENCE IN THE COUNTRYSIDEKalevJärvelillhasbeenonmountaintrips,skitripsandwater

hiking trips – a potholing trip is the only one he has not yet

beenonbutnaturallyKalevisplanningtoremedythat.“Ona

hikingtripyoudonotreallyneedverymuch–justwarmfood

a couple of times a day and firewood or a portable stove for

cooking,”Järvelillexplains.“Civilisationhasitscharmsbutinno

waycanitreplacebeingoutinapurelynaturalenvironment.

InAntarctica,youcanhearthebloodcirculatingthroughyour

bloodvessels;intheforestinautumnyoucanhearleavesfall-

ing into the river.You can never hear true silence anywhere

butinpurenature.”

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KALEV JÄRVELILL

MemberofTallink’sTopManagementsince1999

�� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

BECOMING THE LEADER ON THE BALTIC SEA THANKS TO CUSTOMER TRUST

What is the recipe for becoming the leader in the Baltic Sea passenger shipping industry in a little over fifteen years? Seemingly, the recipe is simple – win the customers’ trust.

It is only thanks to the customers thatTallink can be one of

theleadingshippinggroupsintheBalticSearegionandcan

employ6,500peopleinsixcountries.Allofouremployeesgive

their best every day in order to win customer trust, because

the company’s mission is to exceed the customers’ expecta-

tionsbyofferingamemorabletravellingexperience.

NEW BOOKING AND CHECK-IN SYSTEM FOR MORE CONVENIENCE Inordertoofferservicestoeachcustomer–ofwhomTallink

serves about seven million a year – which meet their exact

needs, this year Tallink launched a booking system that is

probablythemost innovative intheworld.Thenewbooking

systemconnects,inrealtime,alltheTallinkandSiljasalesof-

ficeswhicharelocatedinthesixcountries,andalsohundreds

of travel agencies all over Scandinavia and Europe. Custom-

erswillbeabletoexperiencethebenefitsofthenewsystem

astheyusethenewonlinebookingsystemonthecompany’s

web page. The system enables people to buy tickets for all

TallinkandSiljavesselstravellingsixregularroutesdaily,and

todosoevenatmidnight,requiringjustafewmouseclicks.

ThenewbookingsystemhasbeenintegratedwiththeTallink

callcentre.ThecontemporaryIP-based(InternetProtocol)call

centre helps customers to save time: for example, when the

customerservicephonelineinFinlandorSwedeniscurrently

onhold,thecallcanbeautomaticallyre-directedtoEstonia,to

acustomerassistantwhospeakstherespectivelanguage;this

way,thecustomerwillgetananswertotheirquestionquicker.

Thecallcentreallowsustoconvenientlymonitortheworkload

of customer service assistants and to flexibly distribute cus-

tomer calls between different countries, regardless of where

thepersonansweringthecustomer’scallisactuallysitting.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

SAFETY FIRST Tallink’sprioritybothatseaandonlandis,aboveall,the

safetyof thepassengers,andweshallnothesitateto in-

vestmoneyandtimeinincreasingsafety.

Tallinkcomplieswiththeprinciplesofinternationalsafety

regulations and with the requirements of the ISO 14000

environmentalmanagementstandardinordertoprevent

accidentsandthepresenceofdanger topeopleandthe

environment.Eachyear,oursafetymanagementsystemis

auditedbyexpertsfromtheindependentriskassessment

organisation, Lloyds Register, and the Estonian, Swedish

andFinnishmaritimeadministrations.

TallinkaimstocomplywiththeregulationsoftheInterna-

tionalMaritimeOrganization(IMO)andtoguaranteethat

ouractivitiesaresafeforpassengersaswellascrewmem-

bers. Since our employees are the key to guaranteeing

safety, we are constantly developing their skills by train-

ingourstaff.Theproperprocedure forcrewmembers in

emergencysituationsispracticedindrillsandtestswhich

arecarefullymonitoredbyinspectionauthorities.

Allourvesselsareequippedwithlife-savingandsurvival

equipment which meets all requirements and is ready

foruseallday,everyday,andallyearround.Evenso,the

crewsofTallinkandSiljavesselsusetheirgreatexpertise

and long-term work experience, combined with an effi-

cientsafetysystem, inorder toprevent theneedtoever

usethelife-savingequipment.

The company responsible for the technical manage-

mentofTallink`sshipshasgainedcertificatesconfirming

company`s congruity to ISM (International Safety Mari-

time)codebySwedish,FinnishandEstonianMaritimeAd-

ministrationsaswellasbytheindependentauditorLloyds

Register.Itconfirmsthecompany`scongruityofresources

andactivityplanstoSwedish,Finnish,Estonianandinter-

nationalmaritimesafetyrequirements.

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 ��

COMPLETE TRAVELLING SOLUTIONS Thenewstate-of-the-artbookingsystemmakesitpossibleto

studycustomers’expectationsinmoredetailandtoofferserv-

icesthatmeettheirexpectations.Sincepeopleareincreasing-

lybusyandtheyarefacedwithmuchmoreinformationevery

day, more and more effort has to be made each day to win

clients.Tallinkhassetitselftheobjectivenottosellseatripsas

just journeys fromoneplace toanother,but ratherasaholi-

dayandauniqueexperiencewhichwillexceedthecustomer

expectations. That is why we offer our customers complete

travellingsolutions,combiningvariousserviceswitheachoth-

er.Forexample,onsomeofourships,businesstravellerscan

enjoyentertainmentafteratiringconferenceday;passengers

goingonaholidaycanpurchasecruisetrips,hotelpackages,

spaservicesorskitripsfromTallink.

Tallinkhasaclearobjectiveforthefuture:tobenotonlythe

flagshipoftheBalticSeapassengershippingindustry,butto

beaproviderofcomplete travellingsolutions, takingcareof

allthetravel-relatedconcernsofcustomers.Tothispurpose,a

spaandmorethanoneTallinkhotelhavealreadybeenopened

in Tallinn; the sale of holiday packages is picking up; pursu-

anttotheclient’swishes,seajourneyscanbecombinedwith

a flight; the company is also planning to set up its own taxi

service in order to serve its customers even better. All these

undertakingshavethesameaim:toguaranteeroughly20,000

people–whosewishesourcustomerservicestaffarecarefully

listening to every day, both at sea and on land – a travelling

experiencefromTallinkthatwillexceedtheirexpectations.

CLUB ONE – THE BEST ON THE BALTIC SEAIn May 2007, Tallink launched the new groupwide loyal cus-

tomer programme Club One, which combines the previous

loyal customer programmes of both companies. Today, Club

Onealreadyincludes450,000households.

Club One clients can use travel benefits with fixed monetary

valuesandspecialoffersintheshopsandrestaurantsofboth

TallinkandSiljavessels.Additionally,ClubOneclientsarecol-

lectingbonuspointsontheirticketsandonboardpurchases;

these points can be used to pay for their trips. Club One cli-

entscantakeadvantageofthebiggestfleetontheBalticSea,

plentyof interestingtravelroutesandthebestshoppingop-

portunitiesinthevessels’shops.ClubOnealsooffersbenefits

onland–loyalcustomerscanenjoydiscountpricesatTallink

Hotelsestablishmentsaswellasfromourotherbusinesspart-

ners,rangingfrompopulardiningandentertainmentfacilities

tobeautysalonsandtheatres.

Club One is a three-level customer loyalty programme (with

Gold,SilverandBronzelevels), inwhichthebenefitsbecome

increasinglytemptingthemoreyoutravelonTallinkandSilja

vessels.Thetransferfromoneleveltoanotherisrelatedtothe

amountoftripsandtheonboardpurchasesmade.

TALLINK CUSTOMER CARE IN �006/�007Numberofpassengersacrosssixcountries 6.� million

Callstothecustomerservicenumber �,�0�,��0

Totallengthofcallstocustomerservice 8,8��,��6 minutes

Numberofe-mailshandled �71,�61

VisitstotheTallinkferrybookingenginesover �.� million

VisitstoTallinkGroup’sallwebpages over 10 million

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

Sweden Finland

Estoniaa

Latvia

Germany

Turku Helsinki

Kapellskär

Stockholm TallinnPaldiski

Rostock

Riga

Mariehamn

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �7

EMPLOYEES – FUELLING TALLINK’S SUCCESS

The thousands of employees in six countries are Tallink’s greatest asset as they are fuelling the company’s success. The responsibility of the employees is to guarantee our passengers’ wellbeing every day; similarly, the company is also trying to do its best to guarantee that the employees feel great.

ASTallink Grupp has about 6,500 employees, most of whom

workatsea.Thisisnatural,ofcourse,sincethecompanydoes

specialiseinmaritimetransport–thecompanyownsatotalof

eighteenvesselsandoperatessevendifferentshiproutes.The

company`sheadquarterissituatedinEstoniaandthedestina-

tionofthreemajorroutesisTallinn;therefore,itisnaturalthat

a largeshareofcrewmembersarefromEstonia.Atthesame

time, Tallink is a very international company which employs

people from six different countries and where at least seven

differentlanguagescanbehearddaily.Nevertheless,thisdoes

nothindercooperationamongthestaff.Onthecontrary,our

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

A QUARTER OF A CENTURY WITH THE COMPANY Ann-MarieSamilsstartedtoworkatSiljaLineon17May

1982.That’sabitofacoincidence,as it isNorway’s Inde-

pendence Day, and Ann-Marie is half Norwegian. For 25

years Anne Marie has been working for Silja Line and,

morerecently,forTallinkSilja.

“Itwasmoreorlessbymereaccident,”shesayswhenstart-

ing to talk about how she chose this job.“I had studied

tourisminthecityofFalunandIlikedtoworkintheserv-

ice sector. On one of our study trips we went to Finland

byboat -withSiljaLine inonedirectionandwithViking

Line in the other. I must say that I liked Silja Line much

more, so Iguess thatwas themain reasonwhy Iapplied

toworkinSiljaLine’sTelexDepartment.Therewerethree

of us there who received bookings from travel agencies.

Itwasallhandledmanuallythosedays.FromthereIwent

toSiljaLine’scallcentre.ThenIstartedtoworkattheSilja

LineshopatStureplaninStockholmcitycentre.There,we

also served customers with a special offer we had then

– we rented cottages on the Aaland Islands. After that I

servedinthegroup&conferencedepartmentinthesame

shopforsomeyears,beforeIstartedtoworkatthemain

officeinStockholm.UntilrecentlyIworkedintheproduct

&pricingdepartmentandsinceNovember2007mynew

titleisMarketingCoordinator.SoIhavepickedupquitea

bitofexperiencefromworkinginseveraldepartments.”

“I’m not sure there are any clear specific advantages re-

garding a shipping company as such, although it is an

interestingenvironment.There isalwayssomethinghap-

pening – new routes, new vessels and destinations and,

ofcourse,Ireallylikethecompanyandmycolleagues.It’s

almostlikeasecondfamily.”

peoplehavesomuchtohearandlearnfromeachother–we

considerthisexchangeofexperienceasamajoraddedvalue.

Moreover, the languageproficiencywithinthecompany isat

averyhighlevelduetothenatureoftheservices–ourroutes

betweentheBalticsandScandinaviaserveapproximatelysev-

enmillionpassengersfromScandinaviaandBalticsaswellas

fromEurope,Asia,USA,andsoon,peryear.

TALLINK VALUES ITS VERSATILE STAFF Thecompanyisproudoftherichmixofdifferentnationalities

initsstaff.Also,theknowledgeofbothyoungerandolderem-

ployeesisthebasisforahighlysignificantpoolofexperience

–thisissharedinordertoalloweveryonetolearnsomething

new.Tallinkvaluesitsversatilestaffwiththeirdifferentcultur-

alandethnicbackgrounds.Ourcustomersarealldifferent;so

similarly,thesedifferencescanbebestunderstoodbyemploy-

eesfromvariousbackgrounds.

�8 AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

TALLINK’S AND SILJA’S EMPLOYEES SHARING THEIR EXPERIENCE ThepastyearwasspecialforTallink’sstaffastheyworkedto-

wards making the integration ofTallink and Silja Line a suc-

cess.Amongother things,employees responsible forvarious

fieldsontheTallinkandSiljavesselsvisitedeachother’sships

in order to get to know the work organisation and methods

and to be able to share their experience.Today, we are pre-

paringevenlongervisits,sothatthebestworkpracticesand

professional discoveries of different ships can be applied on

allvessels.

Tallink will continue to cooperate with various educational

institutions,includingmostvocationalschoolsandespecially

the Estonian Maritime Academy and other organisations in

thisfield,inordertointroduceyoungpeopletothemaritime

industry.We try to actively promote maritime transport as a

fieldofemploymentandtointroducetheemploymentoppor-

tunities atTallink with the primary aim of attracting employ-

eeswiththerelevantspecialisededucation,sothatevenyears

fromnowourstaffremainsamongstthebestintheBalticSea

region.

TALLINK – FAMILY BUSINESS FOR LATVIAN COUPLEStewardessNataļjaAntoņukaandautomaticengineerValērijs

AntoņuksdidnotmeeteachotheronboardM/SReginaBaltica

–theyhadalreadybeenmarriedfor25years.Goingthrough

so many different days, having grown-up children, spending

somuchtimetogether,theyareluckynowthattheycanwork

inonecompany.

Having worked in Tallink since its first trip on the Riga line,

Valērijsissurethatworkingonboardistherightplaceforhim.

Nataļjaisnowhappythatsheacceptedthejobayearago:be-

ingbusyandmeetingvariouspeople,herdailylifehasnowbe-

comemuchmoreinteresting.Despitebothdealingwiththeir

own duties and having their own working hours and friends

onboard,theystilltrytofindsometimetospendtogether.

Jokingthatsomebodyalsohastotakecareofacatathome,

theyadmitthattheircommonworkingweeksarepartlyover-

lapping…Stillyouarethelightofsomeone’slife,andit’snice

thatyoucanbrightensomeone’sdayssosubtly-justbybeing

close.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

ThefollowingtableprovidesanoverviewoftheGroup’spersonnel

asof31August2007:

Onshore total* 1,6��Estonia 683Finland 662Sweden 238Latvia 37Germany 15Russia 7

At Sea �,�67Estonia 2417Finland 951Sweden 922Latvia 277

Hotel* �7�Total 6,�81

*Thenumberofhotelpersonnelisnotincludedinthetotalnumberofonshorepersonnel

StewardessNATAĻJA ANTOŅUKAand

automaticengineerVALĒRIJS ANTOŅUKSonM/SReginaBaltica

AconcerttothanktheemployeeswasorganizedinDecember2007,wheregreatEstoniansingers

IVO LINNA,GERLI PADARandHANNA-LIINA VÕSAperformedtotheaudience.

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �1

TALLINK – ONE OF THE MOST REPUTABLE EMPLOYERS

According to the survey conducted by TNS Emor, Tallink was the most reputable employer in Estonia in 2007. Tallink strives for employee satisfaction on a daily basis. Interest-ing career and development opportunities, flexible work-ing schedules, a great salary plus a performance pay sys-tem and stock options – these are just a few examples of the benefits that Tallink offers its employees.

Employeesaremostmotivatedbyinterestingworkduties,at-

tractivewages,acontemporaryworkenvironment,andinter-

nal career opportunities, as indicated by the latest employer

reputationsurveyconductedbyTNSEmor.Tallinktriestooffer

alloftheabovetoitsemployeeswherevertheyareontheBal-

ticSeacoastlineand,consideringthenumberof jobapplica-

tions the company receives, Tallink is a popular employer in

Estonia,Finland,SwedenandLatvia.Tallink’sfleetisoneofthe

most modern and comfortable fleets on the Baltic Sea; also,

the new professional challenges and career opportunities at

thefast-developingcompanyarequitegood.Newpeopleof-

tenjoinourcrewsbecauseofsuitableworkingschedulesand

rotaswhichgiveemployeestwoweeksoffaftertwoweeksof

working, while the company provides complementary cater-

ingandaccommodationforemployeesonduty.SinceTallink

isaninternationalcompany,itsemployeescanalsotravelalot,

whichespeciallypleasesyoungerpeople.

DEVELOPMENT OPPORTUNITIESTallinkalsooffersverymanytrainingopportunities targeting

both the specific job responsibilities and the improvement

ofadditionalskills– includingvariousfree languagecourses.

Naturally,thetraininganddevelopmentofemployeesisacon-

tinuingprocess.Theservicestafftrainingcourses–whichare

requiredbothforachievingaservicestandardandforimprov-

ing customer service skills – are considered to be especially

important. Brand new employees will receive basic training

andweeksofspecialisedtrainingbeforetheystartwork.Inac-

cordance with maritime standards, there are frequent safety

trainingsessionsanddrillsforships’crewsinordertoguaran-

teeanextremelyhighlevelofmaritimesafety.

APPRECIATING EMPLOYEES Tallinkalsohasperformancepayandrewardsystemsandsev-

eral other internal benefits to offer. Occasionally, there are

alsospecialone-off rewards; forexample, recently thegroup

thankedallofits6,500employeesfortheawardsandrecogni-

tion thatTallink has received. However, there is always room

for improvementandwetrytocreateevenbetterconditions

forouremployeesinordertoguaranteethesuccessfuldevel-

opmentofthecompany.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

TALLINK IS MAKING SIGNIFICANT CONTRIBUTIONS TO OCCUPATIONAL HEALTHAS Medicover Eesti, which is the leading provider of oc-

cupationalmedicineservicesinEstonia,isveryhappythat

moreandmorecompaniesarerealisingtheimportanceof

occupationalhealthandsafety,andareapplyingrelevant

regulationsintheireverydayactivitiestotakecareoftheir

employees’ health. The cooperation between Medicover

Eesti and AS Tallink Grupp has been fruitful – which no

doubtbenefitsbothemployeesandemployer.

IncooperationwithTallink,ouraimistoavoidordecrease

thedanger toemployees’healthand topreventoccupa-

tional diseases. All the different occupational medicine

and health specialists at Medicover Eesti – occupational

health doctors, occupational health nurses, an occupa-

tionalpsychologist,anergonomist,andoccupationalhy-

gienists–areincludedintheprocess.Allthesespecialists

work together as a multidisciplinary team and each spe-

cialisthastheirownimportantroleinassessingthework-

ingconditions.

Tõnu Velt

ChairmanoftheBoard,ASMedicoverEesti

�� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

A VALUABLE CO-OPERATION PARTNER FOR BOTH LARGE AND SMALL COMPANIES

What does the Äksi quail farm have in common with the Saku and A Le Coq breweries? Quails do not drink beer; quail’s eggs are not used to brew beer. Nevertheless – they are all important business partners for Tallink. On the one hand, our partners contribute to the satisfaction of the millions of customers of AS Tallink Grupp; on the other hand, they become more successful companies themselves through co-operation with Tallink.

NotonlyisTallinkoneofthemostsuccessfulcompaniesinEs-

tonia,thecompany,togetherwithotherlargecompanies,also

acts as the heart of the Estonian economy, pumping success

intotheveinsofsmallerEstoniancompaniesdayafterday.

Tallinkhasapproximately500suppliersandbusinesspartners,

includinglargecorporatechainsaswellassmall-scalecompa-

nieswhosecontributiontoTallink’sservicesatseaandonland

isinvaluable.

A SPRINGBOARD TO THE SCANDINAVIAN MARKETOntheonehand,Tallinkappliesthecriteriaofthebestprice/

qualityrelationshipwhenchoosingsuppliers,withtheaimof

offeringend-customersgoodsandservicesatmoreaffordable

prices. However, the company observes other principles, as

well.First,thesupplierswithwhichTallinkco-operatesarere-

nownedandreliablebusinesspartnerssothatwecanalways

guaranteetheobservanceoffairtradepractice.Inadditionto

majorinternationalgroupsandpassengershippingagencies,

our valued cooperation partners also include domestic pro-

ducersinEstonia,FinlandandSweden,astheysupplyalmost

allof the foodstuffs for theTallink restaurantsandotherdin-

ing facilities. Also, thanks toTallink, the Estonian beers from

the Saku and A Le Coq breweries are available in the shops

onSwedish-Finnishroutes`vesselsandhavebecomeavalued

brandnexttotheFinnishandSwedishbeerbrands.Foryears

now,wehavecooperatedwith twovaluablepartners:Liviko,

which is also well-known abroad, and Kalev, which has for

yearsbeenthemostvaluedEstonianbrand.Butinadditionto

the big suppliers,Tallink equally values its smaller co-opera-

tionpartners.

TheÄksiquail farm,which is located inTartuCounty,started

itscooperationwithTallinkbackatthetimewhenthelegen-

daryM/SGeorgOts,whichusedtosymbolize thewhiteship

ofhopeforEstonians,wasstilltravellingbetweenTallinnand

Helsinki. Practically all of the farm’s production output, that

is, 20,000 to 25,000 quail’s eggs per month, ends up on the

tableswhicharelaidforTallink’scustomers.Butthesupplyof

foodstuffsisnottheonlyareainwhichdomesticpartnersare

preferred.

NEW JOBS IN THE LOCAL COMMUNITY Some time ago, the laundry on Silja cruise ships which were

departingfromTurkuwasalsowashedinEstonia.Butthisyear,

itwasdecidedtotakethelaundryworkbacktothelocalcom-

munity and to continue co-operation with the local service

provider, Comforta. The reason behind the decision was the

better price/quality relationship that was available in Turku,

forwashingtextilesfromtheshipswhichweredepartingfrom

thattown.Asaresultofthisdecision,therewillbeextrawork

formanypeoplelivinginTurku,becausethecompany’sserv-

icecentrewillstarttoworkintwoshiftsinordertowashthe

morethantwomillionkilogramsoflaundryayearthatisgen-

eratedbySiljavessels.

In 2007,Tallink Grupp was declared to be the best company

in Estonia in three important and independent competitions

–thecompanydoesnotenjoythissuccessalone.Manylarger

and smaller business partners have made an invaluable con-

tributiontothesuccessstoryofthebiggestshippinggroupof

theBalticSearegion;inturn,Tallinktriestohelptheirbusiness

todevelopaswell.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 ��

ÄKSI QUAIL FARM – PRESERVING THE ESTONIAN QUAIL BREEDÄksi quail farm, which is known for preserving the Estonian

quail,beganoperationsthirtyyearsago;itsco-operationwith

Tallink already began twenty years ago, when quail’s eggs

werenotusedforfoodinEstonia.“WhatmakesÄksiquailfarm

special is the fact that it is one of the two farms where the

breedofEstonianquailisbeingpreserved–itistheonlycul-

tivatedbirdbreedthatwasoriginallybredinEstonia,”explains

VelloPeedimaafromÄksiquailfarm.“Wesellninetypercentof

oureggproductiontoTallink,whichisanaverageof20,000to

25,000eggsamonth.InJulyandinAugust,eggconsumption

is lower, whereas around Christmas and Easter we get more

ordersthanwecanfulfil.”

Äksi quail farm, which raises 1,000 birds on average, consid-

ersTallinktobeaveryvaluablecooperationpartner.“Wehave

developed a reasonable business relationship and thanks to

long-termcooperation,wewillknowtheclient’sneedsmuch

earlier,”VelloPeedimaasaid.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

�� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

CORPORATE GOVERNANCE – NOT A THING-IN-ITSELF

Corporate governance at Tallink is not a thing in itself. The main objective of our entire management system is to guarantee customer satisfaction and our employees’ com-pliance with Tallink’s core values in their daily activities.

ThehighestgoverningbodyofTallinkGruppistheSharehold-

ers`GeneralMeetingwhereallTallink’sshareholders,fromthe

smallestuptomajorinvestors,canhavetheirsayindiscussing

the company’s situation. The general meeting approves the

annual financial statementsanddividenddistribution; italso

electsthemembersoftheSupervisoryCouncilandtheaudi-

tor,andmakesalloftheremainingdecisionswhichareofthe

highestimportance.

SUPERVISORY COUNCIL AND MANAGEMENT BOARD The Supervisory Council ofTallink determines the company’s

strategy and objectives, elects the members of the Manage-

mentBoardandoverseesthecompany’smanagementasthey

carryoutthebusinessplan.TheSupervisoryCouncilincludes

betweenfivetosevenmemberswithathree-yeartermofof-

fice.

The executive governing body of Tallink is the Management

Board,which`membersareappointedforathree-yeartermof

office.MembersoftheManagementBoardareresponsiblefor

theeverydayactivitiesatTallinkandreporttotheSupervisory

Council.

THE CORE VALUES OF TALLINKForTallink,themanagementsystemactsasakindofbackbone

which guarantees that allTallink’s employees give their best

and strive towards customer satisfaction, in accordance with

thecompany’scorevalues.Asaservicecompany,Tallinkcon-

sidersitsvaluestobehonesty,reliability,commitment,dyna-

mismandenjoyment.

By treating customers with respect and showing maximum

concern for their needs, wishes and well-being, we want to

earn the esteem and respect of our customers. By striving

towards reliability, we take care of the well-being and safety

of our customers at all times. Reliability does not come from

nowhere - it must be earned. We are committed to our job

responsibilities and, through this, to professionally fulfilling

customerwishessothatwecanguaranteethatbothcustom-

ersandTallink’semployeeswillbesatisfied.Atthesametime,

ouremployeesmustrealisethattherearedifferentclientsand

differentsituations.Ifouremployeesaredynamicintheirap-

proach,wewillbeabletoofferexactlywhatcustomersexpect,

wantandneed.Andfinally,withhonesty, reliability,commit-

mentanddynamismwecanofferourcustomerssuchanen-

joyableseatripthattheywillwanttoexperienceitagainand

againinthefuture.

HOW ARE TALLINK’S VALUES APPLIED IN PRACTICE? EmployeeswhohavejustjoinedTallinkwillfirstreceivetrain-

ingwheretheywilllearnaboutthecompany’sgoals,coreval-

uesandservicestandards.

TheTallinkservicestandardprovidestheguidelinesforevery-

day communications with customers – from the appearance

andcommunicativestyleoftheservicestafftoteamworkand

thesolvingofproblemsituations.

Allnewemployeeswillbeassignedasupervisortohelpthem

adapt to theTallink way of business as smoothly as possible

and to learn to guarantee customer satisfaction at their job

every day. Employee skills are further enhanced at regular

training sessions and evaluations – passing these is the pre-

requisiteforasuccessfulcareer inthe leadingshippingcom-

panyintheBalticSearegion.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

CaptainROLAND LEMENDIK

M/SVictoriaI

�6 AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

TALLINK - A GOOD CITIZEN

As a major tax-payer in Estonia, Finland and Sweden, Tallink believes that financial success can only be guaran-teed through responsible and sustainable development. Therefore, each year, Tallink Grupp gives a significant share of its success back to society and the environment in which the company operates.

PROTECTING SEALS IN THE BALTIC SEAAgoodexampleofgivingsomeofthesuccessbacktotheen-

vironment is in the sale of plastic bags. At sea as well as on

land,itisdifficulttorunshopswithoutprovidingplasticbags

for customers; however, these bags are still one of the lead-

ingdangersthreateningmarinefaunaifsuchplasticbagsend

upinthesea.Therefore,alltheprofitsearnedfromthesaleof

plasticbagsontheSiljavesselsaredonatedtotheprotection

ofsealsintheBalticSea,inordertobalanceouttheimpactof

economicactivitiesonthemarineenvironment.

ASTallink Grupp and its subsidiaries are actively involved in

supporting many public initiatives and events, especially in

youth and sports organisations. Being one of the largest Es-

toniancompaniesbynumberofemployees,ithasalsoalways

beenourgoaltomotivateouremployeestoparticipateinso-

cialeventsforthesakeofnatureorsociety.

There are many areas in which Tallink is providing support

and sponsorship.The environment, children and young peo-

ple,andsportsaresomeofthemajorareaswhichareconsid-

eredtobeimportanttargetsforsupportinallthecountriesin

whichTallinkoperates.

KAIA KANEPI - TENNIS TALENT FROM ESTONIAThelargestsponsorshipdealforTallink,andthelargestsofar

inEstoniansportshistoryforanathlete,wasannouncedatthe

beginningof2007,whenTallinkbecamethemainsponsorof

thehighlytalentedyoungEstoniantennisplayer,KaiaKanepi.

Nowthecontracthasbeenextendedinto2008aswell.

Inspired by its successful cooperation projects,Tallink Grupp

will definitely continue its sponsorship and charitable activi-

tiesovercomingyears.Wewishthatgoodideascouldalways

be realised and life would be happier and more carefree for

everyoneinallthecountriesinwhichweoperate.

TALLINK SUPPORTS

SPORTSYouthsportsandprofessionalsportsinvariousfields.

Thebiggestsponsorshiptargetsareasfollows:

•Tennisplayer,KaiaKanepi

•SpeedPromotionFinlandSPFOy

•IlvesHockeyOyicehockeyclub

•HIFKicehockeyteam

•EstonianKarateFederation

•EstonianUnionofSportsfortheDisabled

•EstonianBiathlonFederation

•EstonianMotoCycleSportsFederation

•EstonianSwimmingFederation

•EstonianHandballFederation

•EstonianShootingUnion

•EstonianParaolympicCommittee

•TheEquestrianFederationofEstonia

CHILDRENWehaveallbeenchildrenandweknowthatintheearly

yearsthemostimportantthingistofeelsafe,secureand

supported.Educationandhobbiesarenolessimportant.

AS Tallink Grupp cooperates with organisations which

workwithchildrentoprovidethemwithbetterlivingcon-

ditionsandhelpscoordinatetheirhobbies,etc.

Thebiggestsponsorshiptargetsareasfollows:

•SantaClausFoundation-theFoundationhelps

childreninneedbothinFinlandandabroad

•NuoriSuomi/TheYoungFinlandAssociation.

CULTUREThe cultural environment of the region is incredibly rich

- creativity finds its way into theatres, cinemas, concert-

halls,andmuseums.ASTallinkGrupphasnotchosenonly

one branch to be its favourite but is instead supporting

differentkindsofevents.

•Thefilm,“Georg,”isataleaboutthelifeof

Estonia’sbest-knownsinger,GeorgOts

•Thefilm,“Iwashere,”(“Minaolinsiin”)

•TheAssociationofGreatMusic

•TheYouthTheatreinTallinn

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �7

ENVIRONMENT•WorldWildlifeFund-WWF

•PidäSaaristoSiistinä/

TheKeeptheArchipelagoTidyOrganisation

SOCIETY•TheDelegationoftheEuropeanCommission

inEstonia

•EnterpriseEstonia

•The“MyCountry”Foundation

•TheEstonianNationalDefenceCollege

•TheBalticDevelopmentForum

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

WORLD CUP COMPETITION-

TallinnInternationalHorseShow2007

�8 AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

OUR EMPLOYEES - GOOD WILL AMBASSADORS

TheemployeesofASTallinkGrupparenotonlyputtingagreat

dealofeffortintotheirday-to-daywork,theyarealsoputting

agreatdealofeffortintoparticipatinginpubliccampaignsfor

thesakeofsocietyandtheenvironment.Thecompanyiswill-

ingtoprovideasmuchinformationaspossibleaboutthevari-

ouscampaignsgoingontomotivatethepeopleintoincreas-

ingtheirawarenessaboutdifferentsocialandenvironmental

issues and to encourage them to participate in the ongoing

projects.

EVERYONE’S HELP IS NEEDEDAccordingtoTallink’sandSilja’schoiceinrespectofsocialre-

sponsibility projects, one criteria is the opportunity for em-

ployees to participate. We prefer activities where our own

peopleareabletolendahandandshareinthejoyofcontri-

butionwiththecompany.Thiswastheonemainreasonwhy

Tallink supported a project called Greenwave - an extensive

tree-plantingcampaign.

Theeagernessofouremployeestotakepartinsuchactivities

givesusthecouragetosponsormanymoresuchcampaigns.

Asustainablelifestyleenablesustoconsiderthewelfareoffu-

turegenerationsandtobeabletohandovertoourchildren

acleanenvironmentandanuntouchedEstoniancountryside

whichiswell-knowngloballyforthelevelofitspreservation.

GREENWAVE - THE TREE-PLANTING EVENTIn 2004, when the ten new members joined the EU, Estonia

arrangedanationwidetreeplantingcampaigntomarkitsac-

cession.Atotalofamilliontreeswasplanted,mainlybyvolun-

teers,inacountryof1.3millioninhabitants.Thesuccessofthe

event, including the high participation rate, and the compli-

ancewiththecriteriainspiredthere-useoftheconceptinEs-

toniaaswellassuggestingthatitbecomesanEU-wide“wave”:

Greenwave.

Among the various EU 50th Anniversary celebration events,

thatoftheGreenwavecampaignwhichisbasedontreeplant-

ing is probably the most wide-reaching, long-lasting and in-

teractive.

Estonia’sGovernmentCommunicationsOffice,incooperation

withtheStateForestManagementCentre,initiatedapan-Eu-

ropeancampaignforplantingtreeswhichwascalled“Green-

wave”. The campaign involved opinion leaders from society,

majorcorporationsandinstitutions,andithasthepotentialto

reacheveryinhabitantofthestateinapositiveandinvolving

way.

Themembersofgovernment,parliament,diplomaticmissions,

EU institutions, local authorities and major participating cor-

porate partners were invited to the event which marked the

culminationofthecampaigninPurila.

ASTallinkGruppparticipatedinthisprojectaswellasinform-

ing its employees and clients that they should share in the

project.Upto300employeesofthecompanyactivelypartici-

patedinthiscampaign.

Altogether,nearly6,200volunteerssignedupforparticipation

in the three-week planting period, which started on 14 April

andreacheditsculminationon4MayinPurila,RaplaCounty.

Nearly900,000pineandfurtreeswereplantedat250sitesall

overEstonia.

TheinitiativewasfollowedbyMalta,Bulgaria,Romania,Slov-

enia, Slovakia, the Czech Republic, Belgium, Lithuania, and

Latvia.

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

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C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

HundredsofTallink`semployeesparticipatedinthetree-plantingcampaignin2007

SalesandMarketingDirectorPETER ROOSEand

the2ndplacewinneroftheessaycontest,VIKTORIA MIHHAILOVA

AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007 �1

A PARTNER FOR SOCIETY

A few hundred years ago, when ships were made of wood and men were made of iron, applicants for the position of sailor’s apprentice had to swim under the keel in order to get to serve on board a ship. The modern maritime romance is different: snow white uniform shirts with epaulets, the dim light on the bridge at night, long rows of displays for radar, gyroscopes and other navigational equipment, the quiet and even vibration of the machinery, and, of course, the waves beating against the ship and the salty sea air, all of which attracts young people like a magnet to the mar-itime industry. But sailors must still be made of iron – in good physical shape, with nerves of steel and a sharp mind – so that they can also successfully handle high-level state-of-the-art technology on ships made of iron.

Maritimeeducationandyoutheducationareimportantfields

forTallinktosupport. Incooperationwiththestateandlocal

governmentauthorities,Tallinkaimstoguaranteethatevena

century from now there will still be a highly-valued Estonian

sailorineveryportintheworld,sothatthefutureErnestHem-

ingwayscanwriteaboutthem;andbecauseoftheirgreatskills

thesesailorswillbewelcometoworkinanyleadingshipping

companyintheworld.

SUPPORTING YOUNG PEOPLE For Tallink, supporting the hobbies and the development of

youngpeople isas importantassupportingmaritimeeduca-

tion, because not everyone has to become a sailor or work

at sea. Every year,Tallink supports the long-distance trips of

thousands of youngsters who are attending sports competi-

tions, cultural events or student conferences. In addition to

that,Tallinkprovidesprizesforvariouscontestsandcompeti-

tions. As an example,Tallink was one of the sponsors of the

nationalintegrationproject,“MinuRiik”whichhelpsstudents

fromRussian-languageschools learnaboutthestate, theau-

thoritiesandpoliticalinstitutions.

Children and education will continue to be one of the most

importantfieldsforTallinktosupport.Bysupportingthisarea,

wearetryingtoguaranteethatinthefuture,therewillstillbe

activeandtalentedyoungpeopleinEstoniatoadvanceboth

theeconomyandthesocietyofEstonia.

INTEGRATION PROJECT “MINU RIIK”The national integration project,“Minu Riik” (“My Country”),

wasstartedinthe2002/2003schoolyearaspartofthenation-

alprogramme,“IntegrationinEstonianSociety2000to2007.”

The“Minu Riik” project targets schoolchildren from Russian-

languagegeneraleducationschools,introducingthemtothe

state,theauthoritiesandpoliticalinstitutions.

Withinfiveyears,morethanfortythousandstudentsandtheir

teachers have attended study days which have been organ-

ised under the project. Participation in the study days has

broadenedthestudents’knowledge,giventhemabetterun-

derstanding of society, and sparked interest in paying more

attentiontowhat isgoingoninthecountry,which ispartof

theintegrationprocess.

Thepatronofthe“MinuRiik”projectisEneErgma,Presidentof

theRiigikogu,andtheprojectwasinitiatedincooperationbe-

tweentheMinister for thePopulationandEthnicAffairs,and

the office of the President, the Chancellery of the Riigikogu,

andtheStateChancellery.

This year, one of the project activities was the essay contest,

“My Country is Proud of Me,” with the aim of encouraging

schoolchildrenfromRussian-languageschoolstoexpresstheir

opinionsaboutbeingcitizensofEstonia,andtoseetheimpor-

tanceofcitizensasthecornerstoneofthecountrythroughthe

eyesofschoolchildren.Theorganisationoftheessaycompeti-

tionwasalsosupportedbyASTallinkGrupp.

A jury selected the fifteen best essays from the 264 entries

which were submitted to the essay contest and announced

the following students as being the winners, with additional

honourablementions:

1stplace–DorisTihu,VäätsaPõhikool(JärvaCounty)

Prize–SEBEestiÜhispank

2ndplace–ViktoriaMihhailova,

NarvaPähklimäeGümnaasium

Prize–ASTallinkGrupp

3rdplace–AnnaReginaLoik,

MiinaHärmaGümnaasium(Tartu)

Prize–ASEMT

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

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C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

THE ESTONIA´S LARGEST SPORTS SPONSORSHIP TO KAIA KANEPI

ASTallinkGruppandcompany’slargestshareholderASInfor-

tarsponsoredEstoniantennisplayerKaiaKanepiwith1.5mil-

lion Estonian kroons (approximately 100,000 euros), which is

the largest sponsorship given to an individual sportsperson

sofarinEstonia.Withthiscontinuoussupportthecompanies

are going to be the main sponsors of Kanepi already for the

secondyear.

Kaia Kanepi is the youngest player ever to get the Estonian

Championtitleofadultclassattheageof14.Attheageof16

shewonEuropeanjuniorChampionshipsandFrenchOpenin

juniorclass.In2001Kanepiwas13weeksinarowinthetopof

ITFjuniorrankinglist.

Inpreviousseason’sGrandSlamtournamentsKanepimadeit

tothesecondroundinAustraliaaswellasWimbeldonandto

thesemifinalsinBadGasteiniWTAtournamentinAustria.After

sevenyearsofbreakKanepiplayedagaininEstonianChampi-

onshipsbecomingthealreadytheforthchampiontitleforher

intheindividuallevelaswellasdoubles.

ThebestresultofKanepiinlastseasonintheWTArankingswas

the40thpositiongainedintheendofJulyof2007.Amongthe

victories the most valuable was the one over Patty Schnyder

(13.)inMiami.

“WewishtogiveKaiathefreedomtoconcentrateontraining

andcompetingandwehopethatthiscontinuoussupportwill

giveheragoodadvantageforthat.Asinthelastyear,weare

also going to visit the competitions, because aside of the fi-

nancialsupportalsoemotionalsupporthasanimportantrole,”

saidMr.EnnPant,CEOofASTallinkGrupp.

EstoniantennisplayerKAIA KANEPI

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C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

KAIA KANEPI – THE MOST SUCCESSFUL ESTONIAN TENNIS PLAYER

Talented Estonian tennis player Kaia Kanepi as the god-mother of Tallink’s newest high speed vessel “Superstar” believes that the high expectations, placed upon her by the company that is also her main sponsor, are far from inac-cessible.

“In2008wewillhavetwosuperstars–onesailingfromTallinn

toHelsinkiandback,theotheronthetenniscourtsalloverthe

world,”saidtheCEOofTallinkMr.EnnPantwhenhewasintro-

ducing Kaia Kanepi to the hundreds of people taking part in

theship’schristeningceremonyinOctober2007. Ms.Kanepi

hadbeenaskedtobegodmothertotheshipincentralItaly.

Arethesepredictionsasboldasthenewship’ssomewhatsur-

prisingandflamboyantcolourschemewith itsbrightorange

andlettucegreenstripes?

“No,Idonotbelievethat,”statedMr.Pantlaterfirmly.“Expec-

tationsarealwaysgreatandsurelyonemustalwayssethigh

aimsforoneself.AndKaiahasn’tbeendoingsobadatall–al-

thoughherworldrankinghasslippedabitlately,herplaceis

neverthelesshigherthananyotherEstoniantennisplayerhas

everachieved.Andbeing in the rangeof theworld’sbest50

playerscanhardlybecalledapoorresult.”

ThereisatentsetuponthewharfatAnconashipyardandKaia

Kanepilooksshyandsummeryinjeansandaflimsyshirt,with

herblondehaircharacteristicallypulledupinaponytail,asa

contrasttothecrowdofbusinessmenandofficialsall insuits

and ties. Her hand is used to hard serves and with a steady

chopshebreaksthe lineonthetable in frontofher,starting

the chain reaction that sends the traditional bottle of cham-

pagnehurtlingagainsttheship’shull.

“Westartedtotalkaboutmycomingheretochristenthenew

Tallink’sshipafewmonthsago, IthinkitwasattheUSOpen

inNewYork,”sherecalls.“OfcourseIagreedtocome.Because,

amongotherthings,Ihaveneverhadsuchagreatrelationship

as I have with Tallink with any sponsors before. They are no

longer just sponsors, but more like good friends.” And what

abouttheexpectations–greatormaybeevenfrightening?“No,

Ithinktheyareactuallyratherrealistic,”sheclaims.“Thanksto

their support Icantakepart innecessarycompetitionswith-

outhavingtoworryabouthavingthemoneyforthat.”

Sheconfessesthatnaturallyitishardtostayatthetopofher

formallyearround;neverthelesssheconsidersherresultsthis

year to be“rather good”. Although the tournaments in New

YorkandParisendedquitequickly.“But in2007Iplayedwell

inAustralia,andinWimbledonalso,IdidwellinMiami–bet-

terthantheyearbefore.Myphysicalandmentalconditionis

goodatthemoment.Theshoulderisfineonceagain.”

Kaia is hoping that the shower of champagne said to bring

lucktoanewshipmightbringsomeforheralso,astheprevi-

ousweekendmeantanewbeginningforhertoo–afterashort

break at home she moved on to Sweden, where she started

workingwithanewcoach.“Actuallytherehasbeentalkabout

needing to change my coach for quite a long time. Magnus

Larssonhasbeenamongtheworld’s toptenand Ihavehigh

hopesforhim,”shesaid.Althoughtrainingwillnowmeancon-

tinuousshuttletripstoSweden,becauseLarssonisraisinghis

daughter alone and thus would not care for intensive travel-

ling.

EnnPantislookingforthesamekindofsparkleinKaia:“Kaia

hasfullyjustifiedourexpectationsandwillcertainlycontinue

doingso.Thereforeitseemedlogicaltomethatshewouldbe

thepersontowishhersixfeetofwaterunderherkeel.”

�� AS TALLINK GRUPP ENVIRONMENTAL AND CORPOR ATE SOCIAL RESPONSIBILIT Y REPORT �006/�007

ContactInformation:

AS TALLINK GRUPP

RegNo10238429

Visitor’sAddress:

Tartumnt13,10145Tallinn

Tel: +3726409800

Fax: +3726409810

E-mail: [email protected]

www.tallink.com

Editors: ASTallinkGrupp

Hamburg&Partnerid

Layout&DesignbyOÜTLGMeedia2008

Designer: KertuKaldaru

Photo: MarkoStampehl

SA“MinuRiik”

IngmarMuusikus

TiitMõttus

JüriPere

KalevJärvelill

ElinaPjazok

KülliTedre

Printhouse: ASVabaMaa

Printed on recycled paper:

ASTallink Grupp recognises the need for environmental pro-

tectionandmanagementasoneofitshighestpriorities.Every

effortistobemadetoconserveandprotecttheenvironment

frommarine,atmosphericandotherformsofpollution,includ-

ingoffice-basedwaste.Ourvesselsaremaintainedandoper-

atedinaccordancewiththeMARPOLconvention.Ourvessels

uselowsulphurcontentfuelandweoperateazerospillpolicy.

Weactivelypromoteenvironmentalawarenessbytrainingand

educating our employees and by making efficient use of en-

ergyandmaterialsinourofficesandonourships.