Corporate Responsibility Report 2009/2010 · 2 British Airways 2009/10 Corporate Responsibility...

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Corporate Responsibility Report 2009/2010 responsible air travel

Transcript of Corporate Responsibility Report 2009/2010 · 2 British Airways 2009/10 Corporate Responsibility...

Corporate Responsibility Report2009/2010

responsible air travel

2 British Airways 2009/10 Corporate Responsibility Report

Middle East & South Asia

15

Americas41

Africa

16

UK9

Europe

67

Where we fly to

Who we are

British Airways is a full service global airline with an extensive scheduled route network. We fly to over 150 destinations and together with our codeshare and franchise partners, we fly to over 300 destinations worldwide and in 2009/10 we carried nearly 32 million passengers.

Asia Pacific

7

Our principal place of business is Heathrow near London, one of the world’s busiest airports. Heathrow is on the doorstep of the great financial centre of the City of London and is within commuting distance for some 20 million people.

We help to generate economic value by providing business travellers with vital arteries for trade and investment, and we contribute to the quality of life by offering leisure travellers new and exciting recreational experiences. We also operate a worldwide air cargo business, largely in conjunction with our scheduled passenger services.

In 2009/10, we earned £8 billion in revenue, down 11% on the previous year. Passenger traffic accounted for 87% of this revenue, while 7% came from cargo and 6% from other activities. We carried 760,000 tonnes of cargo to destinations throughout the world. At the end of March 2010 we had 238 aircraft in service.

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Community 20Overview 21Our targets 21Community Learning Centre 22Colleague volunteering 23Cargo in the community 23

Workplace 34Overview 35

Our targets 35

One Destination employee engagement

36

Training 37Employment tribunals 37

Leadership development 37

Diversity and Inclusion 38

Wellbeing 40

Corporate safety 41What’s next 41

Environment 10Overview 11Our targets 11Climate change 12Noise 17

Overview 02Highlights and achievements 04One Destination vision 06Chief Executive’s messages 08British Airways governance 09

Employee fundraising 23Change for Good – UNICEF 24South Africa youth development project

25

What’s next 25

Air quality 17Waste and recycling 18Biodiversity 19What’s next 19

Overview

Environm

entC

om

munity

Marketplace

Wo

rkplace

Marketplace 26

Overview 27

Our targets 27

Responsible procurement 28

Our forest footprint 29

Voluntary carbon offset scheme

30

Customer experience 31

Diversity and Inclusion in the marketplace

32

Great Britons 32

What’s next 33

Environmental Compliance Group

09

Our approach to Corporate Responsibility

09

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Highlights and achievements

£27m

50% by 2050

58,000

Biofuel

1st65% recycled

Over £27 million has been raised for UNICEF’s Change for Good programme over the past 16 years. Over £600,000 has been raised for other charities through payroll giving this financial year.

The target adopted by the global airline industry to reduce aviation net CO2 emissions.

Over 58,000 young people participated in educational projects since the opening of the Community Learning Centre in 1999.

BA – Solena project launched in February 2010 to develop sustainable alternative aviation fuels.

We became the first and only airline to identify its forest footprint.

This has been a turbulent year for British Airways. However, One Destination, our Corporate Responsibility strategy has delivered some exciting achievements:

In 2009, BA World Cargo achieved an average recycling rate of 49.5%. Engineering increased to 49.6%. BA World Cargo now recycles 65%. Avionics Engineering has had several months in 2009 close to 100%.

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88,37488,374 tonnes of carbon reductions were delivered through the carbon efficiency programme.

30 Wellbeing

Carbon Offset

30 harassment and bullying advisors have been recruited and 16 trained mediators are now in place.

Colleague Wellbeing was adopted as part of the One Destination programme.

1.8mEnergy demand was reduced by 1.8 million kWh, equal to 991.5 tonnes of CO2. We introduced carbon offset

by cabin of travel.

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There is a paradox... customers love to fly but are concerned about the impact on the environment.Our vision is that our customers fly, confident that together we are acting responsibly for the world we live in. Our aim is to become the world’s most responsible airline.

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Reduce carbon emissions, waste, noise and improve local air quality.

Support international communities, conservation projects and charities in the countries we fly to.

Encourage our customers and suppliers to act responsibly.

Provide a great place to work and encourage everyone at British Airways to embrace One Destination.

community

workplace

marketplace

To deliver our vision we have adopted an organisation-wide approach supported on four main pillars:

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Chief Executive’s message “Aviation continues to face incredible economic challenges. Despite this continuing uncertainty I have never been clearer on the importance and value of One Destination – our Corporate Responsibility strategy. Aviation is an economically vital activity generating employment and wealth across the world. It is therefore in all our interests to demonstrate that we can create a truly sustainable industry. Our aim is to be the leading global premium airline. To achieve this we must also become the world’s most responsible airline.”

Willie Walsh with George Taplin, the 50,000th child to enter the Community Learning Centre since 1999.

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British Airways governance One Destination is managed by the Environment and Wellbeing departments.

All activities are overseen by the Corporate Responsibility Board (CRB), which I chair. The CRB is attended by:

Willie Walsh – CEO

Baroness Denise Kingsmill – Non-executive Director

Tony McCarthy – Director of People and Operational Effectiveness

Robert Boyle – Director of Strategy and Business Units

Silla Maizey – Director of Customer

Paul Coby – Head of BA Services/CIO

Tim Steeds – Director of Safety and Security

Julia Simpson – Director ofCorporate Communication

Steve Gunning – Managing Director of Cargo

Tim Richardson – Head of Procurement

Alan Buchanan – Company Secretary

Environmental Compliance Group The Environmental Compliance Group (ECG) was formed in 2010. It brings together representatives from around the Company to ensure that our environmental programmes and risks are properly managed. Meeting every three months and reporting into the Corporate Responsibility Board, the ECG monitors compliance with regulation and Company policy, and reviews developments in legislation.

Our approach to Corporate Responsibility One Destination – responsible air travel The key issue facing British Airways and the aviation industry as a whole is climate change. We are determined that aviation plays a full and fair part in reducing global greenhouse gas emissions.

We will achieve this through the adoption of new technologies, low-carbon fuels and operating efficiencies. We also recognise that to meet our overall emissions reduction targets we will need to acquire carbon allowances through emissions trading systems that achieve emission reductions in other sectors.

However, One Destination looks at all aspects and issues of Corporate Responsibility and is made up of four streams: Environment, Community, Marketplace and Workplace.

EnvironmentOur strategy is to minimise the environmental impacts of our operation. This includes consideration of climate change, air quality, noise, waste and recycling.

CommunityOur strategy is to support community and conservation projects in countries we fly to and from, and to support our colleagues in their volunteering endeavours. In addition, we contribute to the education of our future workforce through our programmes at the Community Learning Centre.

Marketplace

Our strategy is to provide innovative and responsible ways for our customers to travel with us. We also work with our key suppliers to build a more sustainable business throughout our supply chain.

Workplace

Our strategy is to engage with our colleagues, involve them in the development of One Destination and use their expertise to find better ways to save energy and improve recycling.

I am confident that with what we already have in place, and with the future investments planned to sustain the Corporate Responsibility agenda, we will achieve our aim of becoming the world’s most responsible airline.

Willie Walsh, Chief Executive

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We recognise that by providing air transport services we have an impact on the environment. That is why we are committed to reduce our carbon emissions and play a full part in the global reduction of greenhouse gas emissions.

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OverviewAlthough the treatment of international aviation emissions was not resolved at the 2009 Copenhagen climate change summit, we are working with the industry to ensure that the sector will be addressed at the next summit in late 2010. We want the airline sector to be included in a global sectoral approach with emissions reduction targets including carbon neutral growth from 2020 and a 50% reduction in net emissions by 2050.

We are also focusing on reducing our absolute carbon emissions. A key element of this strategy is the adoption of sustainable alternative fuels and in February 2010 we established a partnership with Solena to build Europe’s first biomass-to-liquid plant to supply us with biofuel from 2014.

We have made considerable steps to improve air quality and noise conditions through investment in improved technology.

As part of our preparations for the inclusion of aviation within the EU Emissions Trading System (ETS) from 2012, we have submitted our monitoring, reporting and verification plans to the Environment Agency – the UK’s administering authority. These have now been approved and we have started collecting data for ETS reporting.

We continue to work closely with our waste management and other contractors to improve waste data collection and recycling facilities on the ground and on-board.

Our targets Carbon efficiency Achieve 25% reduction in grams of CO2 per passenger kilometre (gCO2/paxkm) by 2025 from 111gCO2/paxkm to 83gCO2/paxkm.

Carbon emissions Reduce our net CO2 emissions by 50% by 2050.

Noise Reduce our average noise per flight by 15% by 2015.

Air qualityMeet the overall air quality targets set for Heathrow, through continued improvement of operating procedures and modernising our fleet.

Waste and recycling Increase recycling to 50% by the end of 2010 and adopt a new target of 60% by 2015.

Send zero waste to landfill from Heathrow and Gatwick by the end of 2010, and divert waste from landfill at other locations where infrastructure allows.

Commended in the 2009/10 ICARUS awardsOur efforts to minimise our environmental impact were recognised by ITM ICARUS, which represents over 1,000 travel buyers and suppliers.

We want the airline sector to be included in a global sectoral approach with emissions reduction targets.

BITC IndexIn 2009 we took part in the BITC Corporate Responsibility index, the UK’s leading benchmark of responsible business practice. Our Corporate Responsibility Index Score was 87.25% and our Corporate Responsibility Index Performance Band was Silver.

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200

100

50

CO2 INDEX(2005 = 100)

Key

2025: 25% improvement in carbon efficiency compared to 2005

Operational efficiency

New aircraft technologyand sustainable fuels

2005 2013 2020 2030 2040 2050

2050 Target: 50% cut in net emissions

The upper dotted line illustrates emissions should the industry not invest in new technology.

Operational efficiency area represents savings through operational improvements.

New aircraft technology area represents savings from new fuel efficient aircraft and use of sustainable biofuel.

Investment area represents the savings made in other sectors through carbon trading.

The lowest line is the net emissions level after total reduction.

2020: Net emissions back to 2005 level and falling

Investment in low emissions technology

through carbon trading

British Airways long-term CO2 commitment

50% cut in net CO2 emissions by 2050

Climate change Globally, aviation produces around 700 million tonnes of CO2 per year, which represents approximately 2% of total man-made emissions. This share is projected to grow. The solutions we are implementing balance the important contribution made by a sustainable and competitive aviation sector to the global economy with the urgent challenge of combating climate change.

Our climate change programme is focused on five main areas:

• Securing a global sectoral policy regime with ambitious long-term CO2 reduction targets.

• Improving our carbon efficiency.

• Developing the potential of low-carbon fuels.

• Promoting our voluntary carbon offset scheme.

• Supporting scientific research into the impact of aviation on climate change.

The overall objective of climate policy is to stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous interference with the climate system. Scientific research indicates that to achieve this, global man-made emissions must peak no later than 2020 and reduce to 50% by 2050. To ensure we play our full part in meeting this requirement we have established a long-term target to reduce net CO2 emissions by 50% by 2050, relative to 2005 levels. This target is illustrated in the chart below.

Achieving this target will require:

• Improvements in operational efficiency.

• Investment in new aircraft engine technology.

• Development of sustainable aviation fuels.

• Investment in low emissions technology in other sectors of the economy through carbon trading.

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Carbon efficiencyIn 2009 our efficiency was 106.1gCO2/paxkm. This is a significant improvement on the previous year and reflects better aircraft utilisation, higher load factors and savings delivered through our carbon efficiency programme.

The British Airways Carbon Efficiency team delivered 88,374 tonnes of CO2 savings during 2009, equivalent to 28,055 tonnes of fuel. Initiatives included modifications to our aircraft, weight reductions on board and new operational practices. A project involving teams from across the airline is focused on reducing emissions from Auxiliary Power Units (APUs) – these are small jet engines at the tail of aircraft that provide power for ground operations.

Our Engineering team has achieved a global first: an accurate monitoring system for fuel and CO2 emissions from the APU. We estimate that this initiative will deliver an annual saving of more than 40,000 tonnes of CO2.

A large proportion of our carbon efficiency will be delivered through fleet modernisation. Environmental performance is a key factor in the choice of new aircraft. At the end of 2007 we announced the purchase of new aircraft to replace some of our Boeing 767-300ERs and 747-400s. The Boeing 787 and Airbus A380 aircraft, powered by Rolls-Royce engines, are quieter and burn less fuel per passenger than the aircraft they will replace.

2007

2008

2009

110.3

107.3

106.1

EU Emissions Trading System British Airways has long been a supporter of emissions trading as the most cost effective tool to manage CO2 emissions from aviation.

In January 2010, data monitoring for the EU Emissions Trading System (EU ETS) commenced. Emissions trading works through the allocation and trading of carbon allowances – one allowance represents one tonne of CO2. An overall limit, or ‘cap’, is set on emissions. Operators are then required to ensure they have sufficient allowances to cover their emissions and can buy or sell allowances should they emit above or below their cap.

During the year we:

• Developed and implemented new procedures and a monitoring plan to meet our EU ETS requirements.

• Gained Environment Agency approval for the monitoring plan.

• Started monitoring all flights to attain our full allocation of allowances.

• Appointed an independent verifier to audit our monitoring procedures and ensure we meet all EU ETS obligations.

Securing a global sectoral policy regime British Airways is playing a leading role within the aviation industry in developing and promoting proactive solutions for post-Kyoto aviation policy, through the International Air Transport Association (IATA), Association of European Airlines (AEA) and a dedicated group of companies called Aviation Global Deal (AGD).

We believe that CO2 emissions from international aviation must be integrated within a global agreement at a sectoral level. This must be done in a way that ensures equal treatment of airlines, and we continue to work with the industry to develop a common vision that governments should collectively agree. We are engaging with governments through the International Civil Aviation Organization (ICAO) and the United Nations Framework Convention on Climate Change (UNFCCC).

A global approach must avoid competitive distortion and should not create a patchwork of conflicting and potentially overlapping national and regional policy mechanisms. Climate change policy must be equal for all carriers in all markets regardless of routing, intermediate journey points or operator nationality.

Carbon efficiency (grams of carbon dioxide per passenger kilometre)

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2007

2008

2009 16.7

17.7

17.6

* Measured using the Greenhouse Gas Protocol corporate standard guidelines to calculate our emissions from both direct and indirect sources.

Carbon footprint Our carbon footprint was 16,671,496 tonnes of CO2 in 2009.

Global ground emissions footprint (tonnes of CO2)British Airways global ground operations generated an emissions footprint of 167,857 tonnes of carbon dioxide, arising from our buildings, vehicles and ground equipment.

Carbon footprint by scope (as a proportion of total emissions)

“Through what has been a year of upheaval in the aviation industry, I’m heartened that we have still ensured Corporate Responsibility is firmly on the BA agenda. We’ve seen continued good progress in 2009 with a number of our initiatives driven by the excellent commitment of colleagues right across the airline.”

Jude Winstanley, Head of Network & Freighters and Corporate Responsibility Senior Sponsor

Scope 2 – 95,048 tonnesEmissions arise from electricity at the point of consumption.

Scope 3 – 534,010 tonnes Emissions are not directly attributable to British Airways but we have chosen to include them as part of our footprint.

534,010 tonesEmissions are not directly attributable to British Airways but we have chosen to include them as part of our footprint.

95,048 tonesEmissions arise from electricity at the point of consumption.

16,042,437 tonesEmissions arise from the burning of fossil fuels such as aviation kerosene, natural gas, petrol and diesel.

Other: 534,010 tones

.

Electricity: 95,048 tones

Fuel: 16,042,437 tones

Other: 534,010 tonesEmissions are not directly attributable to British Airways but we have chosen to include them as part of our footprint.

Electricity: 95,048 tonesEmissions arise from electricity at the point of consumption.

Fuel: 16,042,437 tonesEmissions arise from the burning of fossil fuels such as aviation kerosene, natural gas, petrol and diesel.

Other: 534,010 tones

Electricity: 95,048 tones

Fuel: 16,042,437 tones

Scope 1 – 16,042,438 tonnes Emissions arise from the burning of fossil fuels such as aviation kerosene, natural gas, petrol and diesel.

5,243

15,907

13,131

575

28,347

584

104,070

Fixed Electrical Ground Power (FEGP)

Ground vehicles

Land surface transport

Overseas engineering buildings

Overseas passenger buildings

Overseas cargo business

UK & JFK buildings

Overseas cargo business

UK & JFK buildings

Overseas engineering buildings

5,243

15,907

13,131

575

28,347

104,071

584

Overseas passenger buildings

Land surface transport

Ground vehicles

FEGP (Fixed Electrical Ground Power)

Carbon dioxide emissions* (million tonnes)

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Carbon Trust Standard Awards The Carbon Trust Standard was awarded to BA last year in recognition of our action on climate change and shows our commitment to reducing our ground emissions year on year.

BA World Cargo energy usage & emissionsBA World Cargo has continued to track and challenge energy usage across our London operations and has developed a carbon footprinting method. For the first time we are able to report a detailed carbon efficiency metric reflecting all global operations.

Cargo carbon efficiencyCarbon efficiency in BA World Cargo improved from 1,253gCO2 per cargo tonne kilometre in 2007 to 1,243gCO2 per cargo tonne kilometre in 2008. During 2009 further work was completed on increasing scheduling efficiency and reducing absolute emissions. Total CO2 emissions reduced by over 6% versus 2008 to 5.6m tonnes. However, as less cargo tonne kilometres were flown, the year-on-year efficiency reduction was due mainly to difficult market conditions. Our carbon efficiency in 2009 was 1,252gCO2 per cargo tonne kilometre.

Carbon Reduction Commitment Energy Efficiency SchemeThe UK’s Carbon Reduction Commitment (CRC) came into effect in April 2010. The legislation, which aims to improve energy efficiency within large organisations, will introduce an emissions trading system for companies using more than 6,000MWh of electricity per year.

We have continued to focus on energy efficiency. As well as meeting the requirements of the Carbon Trust Standard, we have improved our energy metering systems.

British Airways was awarded Brand Emissions Leaders status in 2009 in recognition of our carbon performance.

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Biofuel A number of exciting developments in 2009 indicate that full-scale commercialisation of biofuels for aviation is now possible. Increasingly, there is evidence of the role that sustainable, credible fuels can play in providing low-carbon, renewable substitutes for conventional kerosene.

In December 2009, the UK’s Climate Change Committee reported that up to 10% of aviation fuel could be supplied by sustainable alternative fuels by 20501. We believe that biofuels are uniquely placed to provide a low-carbon solution for our sector in the short to medium term and we remain committed to finding alternative fuels that minimise the whole life-cycle impacts associated with fuel development.

British Airways is involved in a number of biofuel projects, including:

• A partnership with renewable fuels specialist Solena to build the UK’s first waste to liquid fuel plant.

• Working with the Sustainable Aviation Fuels User Group (SAFUG) on biofuel deployment and sharing learning.

• We are continuing our work with Rolls-Royce to conduct engine tests using alternative fuels.

Our partnership with Solena sets out to create Europe’s first sustainable biojet plant converting waste materials into sustainable alternative fuels.

We expect the plant to begin operation in 2014 when it will convert 500,000 tonnes of waste per year into sustainable aviation kerosene. This fuel will save 145,000 tonnes of carbon dioxide each year.

The plant will also create sustainable road transport fuel as well as renewable energy and heat, giving further carbon emissions savings of up to 405,000 tonnes a year. In addition, by diverting waste away from landfill the production of methane, a powerful greenhouse gas, will be avoided.

The process produces no harmful waste materials or emissions.

The plant is expected to be located in East London and the new facility will provide up to 1,200 jobs and help to regenerate this area.

Scientific researchOur primary focus on research has been to support the OMEGA programme, a consortium of nine universities studying the impact of aviation on the environment. In addition, we are supporting research into the non-CO2 climate change effects of aircraft in the atmosphere. One example is the integration of routine aircraft measurements into a global system (IAGOS) – a project which aims to use aircraft to take in-flight measurements of the non-CO2 gases in the atmosphere.

GasTurbine

FuelGas

Steam

Steam

HeatExchange Steam

Turbine

Electricity

GridElectricity

FuelGas

GasClean Up

VitrifiedGlass

RecycledProducts

BiomassFeed

Liquid Biofuel byFischer Tropsch Biodiesel and

Aviation Fuel

BA – Solena Biofuel plant

1 Source: Meeting the UK aviation target – options for reducing emissions (2050 Committee on Climate Change December 2009, Executive Summary).

Our partnership with Solena sets out to create Europe’s first sustainable biojet plant converting waste materials into sustainable alternative fuels.

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NoiseAt Heathrow, we will continue to work with the BAA to reduce the noise impact of aviation through improved procedures and the purchase of quieter A380 and B787 aircraft. We are also supporting UK airports with the introduction of noise action plans in accordance with the EU Noise Directive.

We continue to operate our aircraft using best practice for our arrivals and are taking part in industry efforts to find further ways of reducing noise impacts from our operations.

At Heathrow we target 95% Continuous Descent Approach adherence, to achieve fuel efficiency and reduce the impact of noise. For the last calendar year we achieved our target of 95% for night time and surpassed it at 96% for daytime, compared to the airport average of 89% for night time and 84% for daytime.

Last year we reduced the number of times we exceeded departure noise limits by over 30% to a total of 25 occasions. These infringements were mainly the result of our Boeing 747-400 departures being delayed into the more stringently regulated night time period due to extreme weather.

Air qualityWe have a number of operating initiatives to improve our air quality performance. We are modifying our Boeing 737 (CFM56-3) engines to deliver a 20% reduction in NOx, and the recently introduced Airbus 318 (CFM56-5B) has a low NOx engine.

At Heathrow Terminal 5 and other airports worldwide, we are able to use aircraft stands with fixed ground power and preconditioned air. This means that we rely less on aircraft Auxiliary Power Units (APUs) and are able to reduce atmospheric emissions, fuel consumption and noise. We have this year stepped up our efforts to further prioritise the use of these ground systems over APUs.

Our APU project work won second place at the Process Excellence Awards in the category Best Green Process Improvement Project.

To reduce fuel burn, CO2 and NOx emissions, we have put in place procedures to allow our aircraft to shut down one engine during taxiing and use reduced thrust for all routine take-offs.

We have invested in new ground vehicles and continue to seek environmental improvement through our membership of the Heathrow Clean Vehicles Programme. We operate a large fleet of electric vehicles and a fleet of buses that comply with the latest Euro 5 exhaust emissions standard. Remote monitoring by telematics technology allows us to manage fleet efficiency.

Jennifer O'Brien (left) and Hetel Gokal from the APU team and Steve Shaughnessy from BAIE interiors team collect the awards

2008

2007

2009

1,107

1,063

1,081

Air quality data

Total NOx emissions from British Airways aircraft operations below 1,000 feet at London Heathrow airport (tonnes).

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In 2009 we recycled 39% of our waste at Heathrow and Gatwick (up from 35% in 2008).

“Green IT is a core objective for BA Technology Services and we are on course to cut CO2 emissions by 25% by 2011. We find that attacking waste in the way we use power fits very well with our ‘drive to attack waste of money’ by reducing our costs and working through LEAN process techniques.”

Paul Coby, Head of BA Services, CIO and member of the Corporate Responsibility Board

Waste and recyclingThe amount of landfill waste managed through our contracts at Heathrow and Gatwick reduced on an annual basis by 36% from 3,424 tonnes to 2,187 tonnes. We have begun processing our non-recyclable waste at Heathrow and Gatwick through a waste-to-energy plant and expect to meet our target of zero landfill waste for our main activities by the end of 2010. We aim to divert waste from landfill at other locations where infrastructure or alternative techniques allow.

We have continued to work with our furniture management partner, Amaryllis, to reuse and recycle unwanted office furniture. Our information technology partner SCC provides a similar service for our computer and communications equipment. Both companies are able to recycle the majority of equipment that cannot be reused and divert most waste away from landfill.

This year we have extended the scope of our waste measurement beyond our main activities at Heathrow and Gatwick. Although we do not have perfect data for all locations and activities, we have prorated waste volumes based on passenger numbers and other relevant measures of activity. We estimate that our worldwide waste is some 60,000 tonnes.

Department % Waste

Catering 42%

Engineering 19%

Aircraft interior cleaning 16%

Customer 11%

World Cargo 4%

Other 8%

Method Tonnes

Recycling 1,344

Composting 13

Liquid recovery 328

Energy from waste 372

Incineration 106

Landfill 2,187

Liquid treatment 6,363

BA worldwide waste by department

Waste management method LHR and LGW

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British Airways received the Wildlife Trust’s Biodiversity Benchmark award for land management for 2009/2010 for its management of Harmondsworth Moor.

Biodiversity We continue our commitment to protect and enhance Hamondsworth Moor, the parkland surrounding our Head Office at Heathrow.

Following the planting of a new five-acre woodland of 2,500 native hardwood trees last year, we are turning our attention to the long-term maintenance of the plantations that have become well established since their planting during the landscaping of the 1990s. We are also working on improvements to several of the many ponds across the site and have re-commenced cattle grazing as an important conservation measure.

These biodiversity improvements are part of our overall biodiversity management plan for Harmondsworth Moor that received the Wildlife Trust’s Biodiversity Benchmark award for Land Management for 2009/2010

What’s nextClimate change• Play a leading role in developing a global sectoral approach to

regulating international aviation emissions.

• Keep supporting further environmental research into alternative fuels and the non-CO2 effects on the upper atmosphere. In addition, ensure that the full environmental benefit of using biofuels is recognised in Government legislation including the EU ETS.

• Continue to propose that the EU ETS should apply to intra-EU flights only, prior to reaching a global multilateral agreement on aviation emissions.

Noise and air quality• Further identify opportunities to minimise our aircraft noise and

emissions through international collaboration with industry, governing bodies and academia.

Waste and recycling• Further improve our measurement and management of waste to

increase the proportion recycled, decrease disposal and provide recycling facilities on-board our aircraft.

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We are committed to supporting communities in the countries where we operate through our investment programme.

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OverviewWe are continuing to develop strong community partnerships in the UK and overseas. Over the past year we have prepared for the launch of our new corporate charity partnership with Comic Relief and continue to engage our colleagues in raising money for causes both in the UK and overseas.

Business in the Community reported that our total direct and in-kind donations for 2009-10 amounted to £5 million, £190,000 of which was direct charitable donations.

We continue to be members of both the London Benchmarking Group (LBG) and Business in the Community. The LBG’s benchmarking model is used to assess our total contribution to the community.

In 2009 we worked with over 120 community and conservation organisations who have benefited from flight bursaries, excess baggage, merchandise, cargo space and fundraising events.

Our targets EducationReach 8,000 students in 2010-11 through our education programmes at the British Airways Community Learning Centre.

Work experienceIncrease the number of departments offering work experience from 7 to 13 and the number of students taking part from 60 to 70.

VolunteeringLaunch community volunteering within the business in 2011.

New charity partnerLaunch our new corporate charity partnership with Comic Relief in June 2010.

London 2012 GamesAs the official airline partner of the London 2012 Olympic Games, this year we will be giving away 180 flights through the Great Britons programme to encourage talent in sport, the arts and community.

community

Willie Walsh with George Taplin

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Community Learning CentreThrough our Community Learning Centre, students across Heathrow have the opportunity to gain insights into the world of British Airways, develop their business awareness and interact with positive role models.

In June 2009 we celebrated the achievement of our goal to welcome 50,000 young people through our doors since the centre opened in 1999. We have subsequently welcomed a further 8,000 young people, bringing the total to 58,000.

The centre’s programmes include customer service, languages, global awareness, environmental education and information communication technology (ICT). All are themed on British Airways’ core business of aviation. In 2009, our language programme won an award from the National Centre for Languages. We are now offering primary programmes in French, Spanish and German.

Environmental educationWe have an extensive environment education programme for both primary and secondary schools.

During National Tree Week we launched the Tree Buddies programme, a collaboration between British Airways and Green Corridor, which links people and places in the London area. Tree Buddies helps to integrate young people arriving from other countries to live in the UK – the youngsters take part in creative activities designed to promote social cohesion.

Other environmental education activities included education sessions hosted by scientists from the Natural History Museum for local primary schools.

Work experienceIn 2009 we re-introduced work experience for 15-16 year-old students from schools within the Heathrow catchment. One-week placements were offered to 39 students in seven different departments.

Community awardsBritish Airways won the prestigious Lord Mayor of London’s Dragon Award for Corporate Community Involvement in Education. The award recognises companies who work to improve educational attainment.

Kath Curry and Debbie Workman receive the National Centre for Languages Award

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Colleague volunteering Many of our colleagues volunteered their services during the year in support of community and charitable initiatives:

A team from the UK and Ireland Sales department set up external auction sites to help raise an impressive £40,000 for two charities – the DePaul Trust for homeless young people and Aid for Children, a respite centre in Romania for children with HIV/AIDS.

The same team renovated a charity shop for Harlington Hospice in West Drayton, redecorating it inside and out and stocking it with brand new items donated by BA colleagues.

Engineering apprentices based at BA Maintenance Glasgow spent a week volunteering at the CHAS children’s hospice in Balloch to create a sensory garden. They also won a £1,000 British Airways volunteering award for the hospice.

We are one of several partners supporting a programme to help disadvantaged youngsters in Scotland raise their aspirations and gain a wider understanding of the world of work.

British Airways is the main sponsor of an engineering awareness project which gives the students opportunities to visit engineering locations and engage with positive role models.

The British Airways Community Volunteering Awards54 awards totalling £36,663 were presented to BA colleagues for their volunteering efforts both in the UK and overseas in December 2009. The money goes to the charity of their choice.

Cargo in the community BA World Cargo continued to work with a variety of charities by donating logistics support. They transported Sreepur Village greetings cards from Bangladesh, shipped hospital gowns for the 2009 Blue Peter appeal on behalf of Operation Smile, and supported aid flights to Haiti on behalf of Oxfam, the Red Cross, UNICEF and World Food Programme. For the Haiti Relief effort, over £800,000 was donated in cargo and gift-in-kind.

Employee fundraisingPayroll

As many as 3,335 current and retired colleagues donate to charity through our payroll giving scheme, raising over £600,000 for their chosen charities. The top three charities are Cancer Research UK, Highflight, which is a charity for young people with disabilities who want to learn to fly or have a flight experience, and Sreepur Village, Bangladesh, a project for abandoned women and children who design cards and other goods for sale in the UK.

This year we also hosted two fundraising events, raising a total of £14,748 which was distributed to two charities – the Variety Club Of Great Britain, which supports sick, disabled and disadvantaged children, and Street Action, which works with street children in South Africa.

Other colleague fundraising activities included:

• The BA Fun Run and other events during the year, which raised £30,000 for Cancer Research UK.

• Support for Children in Need, which raised over £1,200.

• London City Airport Fun Day, sponsored by British Airways, which raised more than £41,000 for Richard House Children’s Hospice.

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Change for Good – UNICEF This year is the sixteenth and final year of British Airways’ successful partnership with the children’s charity UNICEF. Through the generosity of our customers and colleagues, we have raised over £27 million since 1999 to support the work of UNICEF UK.

Since its inception, British Airways colleagues have given exceptional support to the UNICEF Change for Good programme, which is helping millions of vulnerable children around the world. Change for Good has recently funded a project in Tunisia helping children with disabilities to integrate into the mainstream schooling system, and has supported the construction of child-friendly schools in Angola.

“ In the past sixteen years, Change for Good has been a phenomenal success. On behalf of UNICEF, I would like to extend a huge thank you to all BA Cabin Crew and staff who have supported the Change for Good programme during this time and helped to raise more than £27 million. Together, BA and UNICEF have provided a real legacy for the world’s children of which we should be extremely proud. You really have helped to change children’s lives. Thank you.”

Julie Milnes, Change for Good Manager, UNICEF

Closer to home, Change for Good has worked with schools in the UK, for example to help them take on board the United Nations Convention on the Rights of the Child. In the aftermath of the Haiti earthquake, £300,000 of Change for Good funding was donated to the UNICEF Haiti Earthquake Children’s Appeal and a special on-board collection was launched which in just two weeks raised over £70,000.

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South Africa youth development project Over the past seven years, British Airways has been a key partner in a major youth diversion and safer schools project in deprived townships across Johannesburg, Cape Town and Durban. We have helped to develop a programme of sports coaching and citizenship for young people.

In March 2010, the UK partners presented at Wembley Stadium to President Jacob Zuma during his state visit to the UK.

As part of the project, British Airways has run workshops in South Africa on health and wellbeing, personal safety, and citizenship for approximately 50,000 young people.

Some key achievements since 2003• 215 youth coaches have gained the Football Association Level 1 Coaching

Skills qualification.

• 69 South African police officers have been trained as school-based officers, enabling them to engage with young people in schools and the wider community.

• The first Training the Trainers programme for 20 members of the South African Police Service (SAPS) was completed in Durban in March 2010. This programme will be integrated into the national training strategy for SAPS.

What’s nextEducation• Continue to offer an extensive

range of airline-focused education programmes to schools and colleges at the BA Community Learning Centre.

• Continue to grow our work experience programme.

• Link our environmental education programmes to the United Nations International Year of Biodiversity 2010.

Colleague volunteering• Launch our colleague

volunteering strategy by 2011.

New charity partner• Build on our new corporate

charity partnership with Comic Relief and start to raise funds.

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We engage our customers and suppliers in One Destination, to encourage commitment to Corporate Responsibility and to build a more sustainable business.

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OverviewWe are continuing to introduce innovative products and to embed One Destination throughout the customer journey.

We have launched our Responsible Procurement programme with the aim of incorporating best practice into every element of our procurement and supplier management process.

We were the only airline to disclose our forest footprint and we also plan to adopt ethical sourcing to help support efforts to combat deforestation.

In addition we are enhancing our carbon offset product.

“Our customers are increasingly aware of the environmental impact of flying and want to understand how we manage these impacts within our business. Our sustainability focus covers the range of touchpoints along the customer journey, from our carbon offsetting scheme on ba.com through to how we manage waste within our supply chain on the ground.”

Silla Maizey, Director of Customer and member of the Corporate Responsibility Board

Our targets EnvironmentEstablish new partnerships with suppliers on alternative fuels.

InvestmentsInvest in innovative and sustainable products and services that enhance the customer experience from booking to destination.

ProcurementKeep listening to the views of our customers and suppliers to deliver our responsible procurement strategy.

Audit key suppliers on Corporate Responsibility by 2012.

Diversity and InclusionResearch trends to improve satisfaction of our disabled customers with the aim of improving their journey.

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Responsible Procurement in BA Reduce supplier emissions• Real contribution to fuel efficiency• Alternative fuels a reality in our fuel supply chain• Suppliers’ environmental goals aligned with ours• Reduce the impact on deforestation from our supply chain Source ethical suppliers• An effective ethical sourcing process and culture• Buyers capable of making Corporate Responsibility trade-offs• Selected suppliers audited by 2012 Behave responsibly towards our suppliers• Encourage competition and be fair in our sourcing approach• Pay on time• Build effective supplier relationships to solve mutual problems

Responsible procurement By working with organisations such as Business in the Community (BITC), and by benchmarking the approaches of other companies, we have developed a new vision called Responsible Procurement. This has three themes – emissions reduction, ethical behaviour and our responsibility towards our supply partners.

A new questionnaire has been developed to obtain information from suppliers on their Corporate Responsibility credentials. We use this information in our supplier negotiation, selection and management processes, and it helps to ensure our suppliers achieve their commitments to us.

Our new Responsible Procurement approach takes us towards one of our key One Destination goals: to be able to audit our key suppliers on their Corporate Responsibility performance by 2012.

Supplier risk

We have completely overhauled our supplier risk assessment and monitoring process in favour of a less subjective approach using external Company data and analytics. We are currently trialling the new method on a selection of suppliers, with a view to fully automating the process. Once fully rolled out we will be able to monitor risk more robustly across a broader supplier base.

Supplier marketA review of spend with our top 500 suppliers focused on the structure of our commercial deals and the specification of goods and services purchased. At the same time, we are leveraging our supplier relationships to make further progress to our Corporate Responsibility goals. For example:

• We encouraged suppliers to collaborate with us in the Forest Footprint Disclosure Project.

• We achieved our goal of zero waste to landfill by utilising our waste management Company’s energy-from-waste facility.

• We announced our partnership with Solena to build Europe’s first sustainable jet fuel plant.

• We renewed our surface transport bus contract, rationalised routes and switched to Enviro buses in pursuit of reduced emissions.

• Over 4,000 IT components were sent to our specialist partner for recycling, with a number donated to charity.

• We are replacing glass wine bottles with plastic equivalents in some of our cabins, which reduces the carbon footprint both in the supply chain and through on-board weight, thereby reducing fuel burn.

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Our forest footprint

Deforestation

The environment does not distinguish between individual sources of carbon emissions, such as electricity production, heavy industry and transport. What matters is the combined global total and we need to manage all our actions with this in mind.

Stopping deforestation between now and 2030 is regarded as one of the fastest and most cost effective measures for reducing emissions. The scale of deforestation is alarming – an estimated 32 million acres are being lost per year1 accounting for around 18%2 of global carbon emissions. BA is contributing to the mitigation of deforestation directly, by focusing on our forest footprint, and indirectly, by supporting research aimed at using market-based policy instruments to value standing forests.

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Stopping deforestation between now and 2030 is regarded as one of the fastest and most cost effective measures for reducing emissions.

Forest Footprint Disclosure Project

Last year BA became the first and only airline to disclose its forest footprint.

We were one of 35 pioneering companies that took part in the Forest Footprint Disclosure Project, launched in June 2009 (www.forestdisclosure.com).This initiative identifies where companies use the key commodities driving global deforestation – timber, beef, palm oil, soy and biofuels – and highlights those companies that are managing the issues well.

We took inspiration from the Forest Footprint Disclosure Questionnaire and investigated our impact in even greater detail than was required by developing our own methodology for the assessment. The initial results have helped us understand how commodities are used by us and our suppliers, and what is involved in their production.

BA’s forest footprint can be estimated at a minimum of 250 acres. We found our biggest impact was from the consumption of beef and the lowest was from paper, as we use many certified or recycled sources already. We plan to work with our suppliers to increase the use of independently certified materials, as we have already done with our construction partners for certified timber. We want to be able to show that whatever we consume is not grown on land converted from natural forests.

1 FAO Global Forest Resources Assessment 2005. 2 Stern report 2006.

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Voluntary carbon offset schemeSince the launch of our upgraded carbon offset scheme in 2008, more than 330,000 passengers have opted to offset the carbon emissions associated with their flights. Take-up dropped slightly in 2009, with 126,474 passengers offsetting a total of 45,941 tonnes of CO2.

In addition, across both the Mileage Company and OpenSkies a total of 18,583 customers offset 4,186 tonnes. The scheme uses high-quality UN-certified emissions reductions to help finance new clean energy projects in developing countries, which often bring improvements for local communities as well as economic benefits.

There are three projects in our portfolio being developed within the UN Clean Development Mechanism (CDM):

Bayin’aobao Wind Farm, Outer MongoliaThis project is now going through the final verification stages – all 33 wind turbines have been fully operational since May 2009. Carbon reductions of approximately 120,000 tonnes of CO2 per year are expected.

Xiaohe Hydro Power (Run-of-River) Project, ChinaThe largest project in our portfolio, this will provide a clean, renewable energy source for the region. It is expected to offset approximately 37,000 tonnes of CO2 per year.

Faxinal dos Guedes Hydro Power (Run-of-River) Project, BrazilThis small project will offset almost 6,000 tonnes of CO2 per year. Although operational for some time, the project is still progressing through the CDM registration process.

The Quality Assurance Scheme for Carbon Offsetting is a UK Government-led initiative aimed at increasing consumers’ understanding of the role of offsetting in tackling climate change and helping them to make informed purchases of good quality offsets. Since our accreditation to the scheme in March 2009, we have undertaken a number of changes to improve information for our customers and have developed a cabin-specific calculation and pricing system.

Cabin differential offsettingOur carbon offset scheme is a simple ‘one click’ option, passengers can now pay for offsets according to the cabin they are booked in. In our World Traveller and Euro Traveller cabins, the offset volume and hence the cost of offsetting has dropped. World Traveller Plus, Club cabins and First will see an increase in the offset price. This system better reflects the emissions associated with the differing seat pitch and seat sizes between cabins.

From May 2010, members of our Executive Club who book tickets using redemption miles from the BA Miles scheme are able to offset the emissions from their flights.

More than 330,000 passengers have opted to offset the carbon emissions associated with their flights.

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Customer experienceAn extensive change programme will roll out in 2010 for our people on the ground, on-board and in our contact centres.

On-board experienceWe launched two new premium products:

• The innovative, exclusive all-business class service from London City to New York.

• The new FIRST cabin offering our guests a sophisticated environment in which to work, sleep, eat and be entertained.

Further on-board innovation includes working with our suppliers to use recycled packaging and sustainable products, while reducing weight and waste from our catering.

On-board cateringWe now use seasonal menus, which use locally sourced food, in First and Club World on all flights from London. The menus on our London City – JFK service are designed in conjunction with the Restaurant Roast at Borough market and feature UK regional suppliers – the menus change monthly to make use of the best seasonal products.

We now use seasonal menus, which use locally sourced and produced food, in First and Club World on all flights from London.

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Diversity and Inclusion in the marketplace

Building ability

We are using the London 2012 Games to make improvements for our disabled customers and raise awareness of their needs. Achievements during the past year include:

• Our first disabled customer forum took place – we invited regular disabled customers and paralympic athletes to help us to identify what we can do better. As a result, a project group is now reviewing four key areas of the customer journey – booking process, airport experience, in-flight service and the arrivals process.

• A video was produced to help colleagues understand the needs and priorities of our disabled customers as they go through their journey.

• Data about disabled customers is being collected and analysed on a monthly basis.

• We were the winner in the Holiday Extras Awards category as the most recommended airline for travellers with a disability.

Great BritonsAs the official airline partner of the London 2012 Games, British Airways launched the Great Britons programme in 2009, which will run until 2012. Great Britons will help and inspire people in the UK to achieve in six categories – sport, performing arts, community, fashion, innovation, and art and design.

The programme looks for individuals who demonstrate the values associated with the Olympic and Paralympic Games and who strive to be the best, whatever their passion. Every three months a panel of judges, which includes Olympic gold medal winner Denise Lewis, selects the strongest entries which are then voted on by the general public at www.greatbritons.ba.com.

We are seeking partnerships with organisations who share our goal of nurturing British talent. BAFTA has recently joined us as a programme partner to share their expertise in the art forms of the moving image.

proud airline partner of the Olympic and Paralympic Games

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What’s nextProcurement and forest footprint• Roll out further changes

under Responsible Procurement, including buyer training and new supplier payment performance targets.

• Progress the Solena biofuel project to make it a commercial reality.

• Continue to participate in the Forest Footprint Disclosure Project.

• Roll out new policies to ensure that wherever possible we no longer use commodities associated with deforestation.

• Improve the methodology used to quantify our forest footprint.

Carbon Offsetting • Review the carbon offset

scheme to reflect the introduction of aviation into the EU Emissions Trading System.

• Launch a carbon offsetting facility for cargo customers.

Customer experience• Continue to hold annual

Corporate Responsibility Seminars for our key corporate clients and industry experts.

• Communicate our key environmental initiatives to customers in our lounges and on board our aircraft.

• Monitor the transfer of our short haul catering operation to DHL, the new catering unit designed to minimise any effect on the environment.

Diversity and Inclusion• Hold regular follow-up

forums with LOCOG (London Organising Committee of the Olympic and Paralympic Games) and our customers.

• Complete the end to end process review to improve the journey process for disabled customers with specific recommendations.

Great Britons• Continue to support home-grown

talent by giving away £500,000 worth of flights until 2012.

• Create partnerships with organisations to attract new applications.

• Follow our current and future winners on their journey to success.

• Establish influential communities and passionate advocates of our brand.

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Our aim is to provide a working environment that motivates, engages, supports and develops our people.

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OverviewWe constantly review and adapt the way we run our business with our prime goal in mind – to be the leading global premium airline.

We are developing a customer-focused, high-performing culture that links performance to reward and recognises the different needs of our people. Quality leadership is the key – it ensures that our managers engage with and involve their people, so that we deliver world-class productivity and pursue our commitment to be a responsible airline.

Important headway has been made in Diversity and Inclusion, notably in our Dignity at work and Disability initiatives.

We continue to focus on safety at work. During the year we developed a safety manual for use in colleague training – this can be tailored to meet the needs of each work discipline.

Our targetsOne Destination employee engagement• Supply our managers with

the tools to embed the engagement framework in their departmental strategies.

• Invest in additional recycling units and energy saving initiatives.

• Improve performance by educating colleagues to use existing recycling facilities.

• Develop and encourage our car sharing and cycle-to-work schemes.

Diversity and InclusionProvide better support for managers, including new training initiatives. Addressing harassment and bullying remains a priority.

WellbeingImprove communication with our employees with the aim of increasing motivation and reducing absence.

workplaceThrough our Workplace pillar we encourage colleagues to commit to One Destination, our Corporate Responsibility strategy. We give them the opportunity to support our initiatives and help us in our drive to become the world’s most responsible airline.

“To be the leading global premium and world’s most responsible airline, it is vital that we continue to improve how we work together and develop our people so that we are a high performing organisation.”

Tony McCarthy, Director of People and Organisational Effectiveness and member of the Corporate Responsibility Board

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One Destination employee engagementSenior Sponsors programmeEach directorate has a Senior Sponsor who is responsible for delivering their department’s contribution to our One Destination strategy.

Champions programme We have a pool of worldwide champions who support One Destination, around the organisation – more than 100 committed colleagues now contribute to the success of our strategy. Some areas, such as Engineering, World Cargo and Operations, have formed subgroups to develop departmental strategies.

One Destination awardsTo recognise and reward the efforts of our colleagues, we held our first annual One Destination Awards in December 2009. The event aimed to raise awareness of charity projects and the work carried out by our colleagues.

“ At BA Engineering we have taken Corporate Responsibility to heart, with the reduction of waste high on our agenda. Throughout the department our people are contributing innovative ideas that save energy, increase the amount and type of material that we recycle, improve the carbon efficiency of our fleet in the air, and cut our emissions on the ground.“

Mark Novell, Design Assurance Manager Engineering and Corporate Responsibility Senior Sponsor

“ In Customer Experience, we know how important it is to consider all aspects of Corporate Responsibility when developing our products, such as lighter seats or trolleys on board our aircraft and specifying where our coffee is sourced. This way we reassure our customers that, although their journey has an adverse impact on the environment, flying with us is the most responsible option.”

Rebecca Farr, Customer Experience Development Lead and One Destination Champion

Listening to colleaguesColleague surveys include an engagement index that managers are expected to track and take action on. Behavioural training continues and is being rolled out to a wider population – our aim is to embed cultural change and put emphasis on listening and acting on feedback. A pool of internal coaches has also been created.

TV presenter Ben Shephard presents the One Destination award to Terry Chaudry

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TrainingWe delivered 173,000 days of training during the year.

The number of training days for cabin crew doubled to 9,000. Our training organisation has refocused resources to provide more courses for volunteer cabin crew that meet CAA standards. This has allowed British Airways to continue operations through the cabin crew strike, and to reinforce service after the volcanic ash cloud disruption.

Several new leadership initiatives have been introduced for senior, middle and front line management. In addition, planning and design work has started in support of major strategic projects including new system introductions and collaboration with other airlines.

Our training organisation has refocused resources to provide more courses for volunteer cabin crew.

Leadership developmentOur Leadership and Talent strategy underpins our vision to be the leading global premium airline.

High Performance Leadership (HPL) links business planning, target setting, performance assessment, development and reward together and this year it has been rolled out to the wider management population.

Behavioural Performance Feedback (BPF) provides feedback against our three leadership capabilities – communicating a common vision, agreeing accountabilities and motivating and inspiring others.

This year we have been building leadership capabilities amongst front line, emerging and strategic leaders. We have rolled out several key programmes, such as:

• Behaviours for Success.

• Leaders of Tomorrow, which includes voluntary work with local charities and schools.

• Emerging Operational Leadership, which focuses on developing front line leadership capabilities.

• Developing collaborative leadership with a range of identified charities.

We continue to attract and develop talent at all levels. Last year this included taking 100 people on the new Engineering Apprenticeship programme and hiring 20 graduates to our Graduate Recruitment programme which now totals 50 in the business.

Employment tribunalsDuring 2009/10, the Group was served with 73 new proceedings in employment tribunals and one claim in the High Court. British Airways plc was the respondent in all but three of the proceedings. This is a low figure relative to our size.

• 7 claims involved multiple claimants, including three relating to holiday pay calculation for some 14,000 pilots and cabin crew members, and one in the High Court regarding crew complement changes for 5,400 cabin crew.

• We lost no tribunal claims during the year.

• We lost one appeal concerning the rights of staff employed and resident in Hong Kong to pursue discrimination claims in the UK – a further appeal has been submitted.

• There were 43 unfair dismissal claims.

• 45 discrimination claims were lodged.

• 49 claims are ongoing, 3 were settled and 22 were withdrawn, struck out or won by British Airways.

• We successfully defended the crew complement claim in the High Court, and we also won an appeal about religious discrimination regarding our uniform policy.

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Diversity and InclusionDiversity and Inclusion is integrated into everything we do at British Airways. We have a four year strategy that embraces our customers as well as our colleagues – its key elements are:

• Globalisation – we are working towards a global approach to ensure that training and product delivery worldwide reflects different cultures. New champions and sponsors are now in place.

• Inclusion – we are integrating diversity strands into our business to create a more inclusive working culture and widen the talent pool for new colleagues.

• Building ability – we are using London 2012 as a platform to drive cultural change in the way that we deal with disabled customers.

• Dignity at work – we are striving to ensure that colleagues feel valued and respected, and that harassment and bullying in the workplace are addressed effectively.

Employee engagement We engage with colleagues through our network groups and through local Diversity champions and sponsors. 13 sponsors are now in place to ensure that Diversity and Inclusion is integrated into our business. There were several highlights during the year, including:

• The re-launch of a Black and Asian employee network.

• The introduction of mentoring circles by our women’s network, Link, one of which has an ethnic minority focus.

• The continuing growth of Bangles (British Airways Network for Gay and Lesbian people). Over 50 British Airways employees marched in the 2009 Pride parade in London.

• The interfaith network representatives continued to provide information and guidance on such issues as prayer rooms and uniform standards.

• Members of the disabled employee group helped us to test new products and training to ensure their accessibility.

• A successful Diversity Day in November 2009 provided a focus on Diversity and Inclusion across our business.

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Diversity and Inclusion trainingAn online and video training programme has been introduced to help colleagues understand the different needs of our disabled customers and new legal requirements in the USA. Also, a new toolkit gives colleagues best practice information about workplace disability issues.

Dignity at workWe have a five year strategy, with progress measured through our colleague survey. Each department has targets to ensure there is accountability at senior levels. During the past year, we have introduced a range of mechanisms, including a detailed toolkit, to help resolve conflict and prevent unacceptable behaviour.

We have recruited 30 harassment advisors, whose role is to offer advice, support and guidance to colleagues who are experiencing harassment and bullying by trying to resolve conflict informally.

Mediation has been introduced to help resolve workplace relationship issues in a more sustained and positive way – 16 trained mediators are now in place.

We also meet on a regular basis with members of the trade unions to discuss the strategy and to work towards embedding the principles of dignity at work into the organisation.

Diversity dataThe latest data, which compares figures between March 2009 and March 2010, shows that:

• 28% of employees worked part time compared to 24% last year.

• Of these, 23% were women – an increase of 3%.

• Women account for 33% of all middle management roles. An increase of 3% over last year.

• Women accounted for 27% of senior management roles – a decrease of 1%.

Diversity highlightsDignity at work

• 16 mediators trained.

• 18 new harassment advisors recruited, bringing the total to 30.

Building ability

• 1 partnership signed with Face Equality.

• 1 video produced to celebrate 1,000 days to 2012 Paralympics.

• 30 disabled customers and paralympians attended the first disability forum.

Global diversity

• 30 countries completed surveys on global diversity issues.

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WellbeingOur investment in Colleague Wellbeing is helping to make BA a great place to work and the airline of choice. For example, BA Health Services (BAHS) has a responsive and proactive strategy that focuses on:

• Continuation of an early intervention programme, with particular regard to the needs of colleagues returning to the workplace following absence.

• Provision of a flexible and healthy lifestyle programme that encourages all BA colleagues to take personal responsibility for their wellbeing.

Wellbeing targets Work with external organisations to deliver a healthy lifestyle programme that is tailored to the needs of business areas across the Company and supports the ethos of the London 2012 Games.

• Give all colleagues access to a healthy lifestyle programme with a 75% uptake by 2012.

• Develop wellbeing information on BA’s intranet.

• Ensure British Airways Early Active Rehabilitation Scheme (BAEAR) achieves its financial target of 3.5:1 by 2012.

Wellbeing achievementsKey achievements include:

• Establishing Colleague Wellbeing as part of the One Destination agenda.

• The continuing success of BAEAR. For example, since July 2009, the management of treatment following accidents at work has been managed via BAEAR.

• Basic Life Support skills sessions for the Annual Community Learning Centre Local Schools Programme.

• Contingency planning and monitoring of the spread of the H1N1 influenza virus in 2009.

• Education and information about alcohol provided at ‘Know your Units’ road-shows held in key areas of the business.

Triathlete Vanessa Raw at the Energy Day event at Waterside

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BA Early Active Rehabilitation SchemeThe aim of the scheme is to provide earlier interventions than can be achieved by the NHS. There needs to be a cost benefit to the Company and the treatment should have an 80% success rate. Earlier treatment should allow absent colleagues to return to work earlier, thus contributing to our aim to reduce sickness absence.

On average 80 referrals are made by the occupational health team to the BAEAR scheme per month. 45% of these relate to musculoskeletal ill health and 40% to psychological ill health, which reflects UK national absence-from-work statistics.

This scheme is achieving a Return On Investment of 2.3 : 1 (May 2009).

Corporate SafetySafety and security is our number one priority. We have a formal safety management system in place to support the company in complying with all relevant regulations. This is supported by a comprehensive monitoring system for reporting all safety incidents and taking necessary action. A corporate safety plan sets continuous improvement targets. Performance is reviewed at the Safety Review Board which meets at least four times per year and is chaired by the Chief Executive.

Safety strategyThe most frequent causes of injury to British Airways’ employees and contractors are either manual handling or slip and trip events. We have worked closely with an external supplier to develop manual handling training for colleagues, and bespoke solutions have been developed for each operational departments activities. As many of the risks come from the carriage of heavier items, British Airways introduced a new hold baggage policy in 2009 – this is designed to encourage passengers to limit the maximum weight of any single bag to 23 kg.

This winter’s cold weather led to some additional challenges for UK airports. Following a number of ice-related injuries in February 2009, a review was conducted with the airport operator and, in spite of harsher weather conditions in February 2010, no employees suffered major injuries as a result of slipping on icy surfaces.

The most common cause of injury to our passengers is from being struck by a falling object. Even including the most minor injuries, the incident rate is extremely low at 55 reports per million passengers carried (0.0055%).

Staff safety performance British Airways is proud to have gone 10 years without being subject to an HSE Improvement or Prohibition Notice. We achieved a year-on-year reduction in the number of major injuries from 21 to 18.

What’s nextEmployee engagement • Engage with our champions,

including those at our businesses overseas, through roadshows and workshops.

People and Organisational Effectiveness• Deliver the next phase of our

People Strategy with the aim of creating inspirational leaders with global perspectives.

Diversity and Inclusion• Provide support to managers

on all aspects of Diversity and Inclusion.

• Roll out skill bite sessions to outline practical harassment and bullying issues.

• Develop a revised and simplified process to improve journey quality for our disabled customers.

• Continue to educate, train and support our managers about disability issues.

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Our websitewww.ba.com

Our investor relations website is www.bashares.com

Our website for individual shareholders is www.basharefholders.com

AEA Association of European Airlines

AGD Aviation Global Deal Group

APD Air Passenger Duty

APU Auxiliary Power Unit

BAEAR British Airways Early Active Rehabilitation scheme

BAHS British Airways Health Service

BALPA British Airlines Pilot Association

BITC Business in the Community

BPF Behavioural Performance Feedback

CAA Civil Aviation Authority

CBI Confederation of British Industry

CDM Clean Development Mechanism

CIPD Chartered Institute of Personnel and Development

CO2 Carbon dioxide

CRB Corporate Responsibility Board

CRC Carbon Reduction Commitment

DWP Department for Work and Pensions

ECG Environment Compliance Group

EU ETS European Union Emissions Trading System

FEGP Fixed Electrical Ground Power

gCO2/paxkm Grams of carbon dioxide per passenger kilometre

HPL High Performance Leadership

HSE Health and Safety Executive

IAGOS Integration of routine aircraft measurements into a global system

IATA International Air Transport Association

ICAO International Civil Aviation Organisation

ICT Information Communication Technology

LBG London Benchmarking Group

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43British Airways 2009/10 Corporate Responsibility Report

Awards and Recognition

Carbon Trust Standard Awards The Carbon Trust Standard was awarded to BA last year in recognition of our action on climate change and shows our commitment to reducing our ground emissions year on year.

Commended in the 2009/10 ICARUS awardsOur efforts to minimise our environmental impact were recognised by ITM ICARUS, which represents over 1,000 travel buyers and suppliers.

Biodiversity BenchmarkBritish Airways received the Wildlife Trust’s Biodiversity Benchmark award for land management for 2009/2010 for its management of Harmondsworth Moor.

Process excellence award British Airways was awarded second place at the Process Excellence Award in the category Best Green Process Improvement Project.

BITC IndexIn 2009 we took part in the BITC Corporate Responsibility index, the UK’s leading benchmark of responsible business practice. Our Corporate Responsibility Index Score was 87.25% and our Corporate Responsibility Index Performance Band was Silver.

Brand Emissions AwardBritish Airways was awarded Brand Emissions Leaders status in 2009 in recognition of our carbon performance. The award is verified by ENDS Carbon, an independent third party and carbon performance ratings expert.

PEFC/16-33-656Promoting sustainable forest management

This report is printed on Revive 100 Uncoated which contains 100% recycled and de-inked pulp from post consumer waste which has been FSC (Forest Stewardship Council) certified. It is 100% recyclable and biodegradable and has been printed using an alcohol free process; the printing inks are made with non-hazardous vegetable oil from renewable sources.

Over 90% of solvents and developers are recycled for further use and recycling initiatives are in place for all other waste associated with this production.

Designed and produced by RR Donnelley Creative Printed by CPG on behalf of RR Donnelley