Global Reporting Initiative Index 2013

  • General Standard Disclosures
    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Strategy and analysis

    G4-1

    Statement from the most senior decision-maker of the organization.

    CEO's statement

     
    Organisational profile

    G4-3

    Name of the organization.

    Kuoni Travel Holding Ltd.

     

    G4-4

    Primary brands, products, and/or services.

    Business Areas

     

    G4-5

    Location of organization's headquarters.

    Zurich, Switzerland

     

    G4-6

    Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

    Kuoni World Map

     

    G4-7

    Nature of ownership and legal form.

    Group Structure and Stakeholders

     

    G4-8

    Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

    Business Areas

     

    G4-9

    Scale of the reporting organization.

    Five Year Summary of Key Data

     

    G4-10

    Total number of employees by region, employment contract, type and gender and managerial breakdown.

    Labour Performance Indicators 2013

     

    G4-11

    Total employees covered by collective bargaining agreements

    At this time we can conservatively report that at least 8.4% of Kuoni Group employees are covered by collective bargaining agreements. Data collection processes are currently being put in place in order to provide more comprehensive data for the next reporting period.

     

    G4-12

    Describe the organization’s supply chain.

    Kuoni's suppliers include transport, accomodation, excursion and other third-party agents. For further information, see Sustainable Supply Chain Management

     

    G4-13

    Significant changes during the reporting period regarding size, structure, or ownership.

    Ad Hoc News

     

    G4-14

    Whether and how the precautionary approach or principle is addressed by the organization.

    The precautionary approach is a key aspect of the Statement of Commitment on the Environment

     

    G4-15

    Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

    International Financial Reporting Standards (IFRS); UN Global Compact 10 Principles; 5th Assessment Report of the Intergovernmental Panel on Climate Change; UN Global Compact Caring for Climate Initiative; the Universal Declaration of Human Rights (UDHR);  International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work (‘ILO Core Conventions’); UN Guiding Principles on Business and Human Rights; UN Tourism Organisations (UNWTO) Global Code of Ethics; UN Children’s Rights and Business Principles; OECD Guidelines for Multinational Enterprises; UN World Tourism Organisation Davos Declaration; UN Global Compact CEO Water Mandate; Convention on Biological Diversity (CBD) Guidelines on Biodiversity and Tourism Development; Convention on International Trade in Endangered Species (CITES) of Wild Fauna and Flora; Policy Recommendations of the International Taskforce for Sustainable Tourism Development; Code of Conduct for the Protection of Children from Sexual Exploitation in Travel

     

    G4-16

    Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

    The Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism, Travelife Sustainability System, Association of British Travel Agents, Swiss Import Promotion Programme, fairunterwegs

     
    Identified Material Aspects and Boundaries

    G4-17

    List all entities included in the organization’s consolidated financial statements or equivalent documents and whether any of these are not covered by the report.

    Principal Subsidiaries, Associates and Joint Ventures 
    Destination Management Specialists is not currently covered by the environmental reporting.

     

    G4-18

    Explain the process for defining the report content and the Aspect Boundaries and how the organization has implemented the Reporting Principles for Defining Report Content.

    Reporting; Materiality

     

    G4-19

    List all the material Aspects identified in the process for defining report content.

    Aspect Materiality

     

    G4-20

    For each material Aspect, report the Aspect Boundary within the organisation

    Aspect Materiality

     

    G4-21

    For each material Aspect, report the Aspect Boundary outside the organisation

    Aspect Materiality

     

    G4-22

    Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

    No restatements made for the reporting year

     

    G4-23

    Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

    Scope has been expanded in environmental indicators to cover GTS and VFS Global Divisions. Scope has been reduced due to the withdrawal of tour operating activities in France, Italy, Spain and Russia. 

     
    Stakeholder Engagement

    G4-24

    List of stakeholder groups engaged by the organisation.

    Stakeholder Management

     

    G4-25

    Basis for identification and selection of stakeholders with whom to engage.

    Stakeholder Management

     

    G4-26

    Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

    Advisory Panel

     

    G4-27

    Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

    Statement of Commitment on the Environment; Statement of Commitment on Human Rights; Human Rights Impact Assessment IndiaHuman Rights Impact Assessment Kenya

     
    Report Profile

    G4-28

    Reporting period (e.g., fiscal/calendar year) for information provided.

    March 21, 2013 - March 18, 2014 for all reporting, excluding environmental and labour reporting which covers January 1, 2013 to December 31, 2013

     

    G4-29

    Date of most recent previous report (if any).

    March 21, 2012

     

    G4-30

    Reporting cycle (annual, biennial, etc.)

    Annual

     

    G4-31

    Contact point for questions regarding the report or its contents.

    Contact form; cr@kuoni.com

     

    G4-32

    Report the ‘in accordance’ option the organization has chosen, the GRI Content Index for the chosen option and the External Assurance Report if any.

    In accordance, core. GRI Index 2013

     

    G4-33

    Report the organization’s policy and current practice with regard to seeking external assurance for the report.

    We do not currently seek external assurance except as outlined by the requirements for EU-ETS reporting for airline emissions.

     
    Governance

    G4-34

    Governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

    Board of Directors

    There are currently no committees responsible for decision-making on economic, environmental and social impacts.

     

    G4-37

    Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

    Stakeholder consultation is delegated to the Corporate Responsibility function which reports to the Executive Board and Board of Directors

     

    G4-38

    Report the composition of the highest governance body and its committees

    Board of Directors

     

    G4-39

    Indicate whether the Chair of the highest governance body is also an executive officer.

    None of the present Board members sat on the Group Executive Board of Kuoni Travel Holding Ltd. or on the executive board of any group subsidiary of Kuoni Travel Holding Ltd. within the last three years.

     

    G4-40

    Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members

    Board of Directors; Organisational Regulation

     

    G4-41

    Report processes for the highest governance body to ensure conflicts of interest are avoided and managed

    Organisational Regulation, Page 10

     

    G4-45

    Report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks, and opportunities.

    Board of Directors; Organisational Regulation

     

    G4-46

    Report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics.

    Board of Directors; Organisational Regulation

     

    G4-47

    Report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.

    Board of Directors; Organisational Regulation

     

    G4-51

    Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration:
    • Fixed pay and variable pay
    • Sign-on bonuses or recruitment incentive payments
    • Termination payments
    • Clawbacks
    • Retirement benefits

    Report how performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives.

    Compensation Report

     

    G4-52

    Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization.

    Compensation Report

     
    Ethics and Integrity

    G4-56

    Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

    Code of Conduct; Vision and Mission

     

    G4-57

    Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.

    Code of Conduct, Introductory Remarks, Sect. 3, 4, 13

     

    G4-58

    Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

    Code of Conduct, Introductory Remarks, Sect. 3, 13

     
  • Economic performance
    Disclosure on Management Approach

    Economic Performance

    Kuoni has integrated a value-based management approach based on the Kuoni Economic Profit or KEP performance indicator into its entire management process to keep top management aligned as closely as possible to creating long-term added value on behalf of the Group’s owners.

    To this end, planning and budgeting, performance measurement, internal and external communications and the long-term variable-compensation models applicable to senior management positions have all been consistently adapted to the sustainable value-creation philosophy. 

    Indirect Economic Impacts

     Few realize that tourism is directly responsible for 5 percent of global GDP, that one out of every twelve people worldwide are employed in tourism or that tourism accounts for 30 percent of the world's trade in services. In some countries, tourism today represents an astonishing 25 percent of GDP. Many developing countries consider tourism to be important for economic progress and poverty reduction. However, it is also clear that the link between tourism and economic growth and poverty reduction is not automatic. It very much depends on whether tourism generates employment opportunities, creates linkages – in particular with agriculture and service-providing sectors – and stimulates the development of basic infrastructure through the construction of roads, port and airport facilities and the provision of financial services from which the economy as a whole can benefit. 

    At the same time, unplanned and poorly managed tourism development can cause serious harm. We need to be capable of building a more responsible tourism sector; one that protects our common heritage while making it accessible to all and providing the means to preserve it. Through our human rights impact assessments in Kenya and India, Kuoni has been able to identify the following negative indirect economic impacts of the tourism industry in those countries: traditional livelihoods such as fishery or agriculture being threatened due to pollution and/or lack of access to water; rising food prices; limited sourcing and supply-chain linkages with local producers; economic exclusion, particularly in the case of the all-inclusive model of tourism; limited geographical diversification of tourism products leading to an exhaustion of existing itineraries (e.g. houseboats in the backwaters of Kerala); and a minimum wage standard which does not sufficiently reflect the cost of living, amongst others. The unequal disbursement of economic benefits from tourism cannot be addressed by Kuoni alone, and will need a long-term approach involving the broader tourism industry, local communities and government. However, it is possible for Kuoni to take some practical actions, show leadership and encourage others in the industry to engage. In India, for example, Kuoni has committed to develop and promote sustainable products (e.g. checklist for sustainable product development, development of socially and environmentally responsible products); share the above findings of the impact assessment and the resulting improvement actions throughout the tourism industry in India, to raise awareness and encourage change; organize an annual seminar on sustainable tourism in collaboration with industry associations to increase the level of understanding in the sector and to engage in government lobbying on some of the issues highlighted (e.g. promoting inclusivity and sustainable tourism planning).

    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Economic Performance

    G4-EC1

    Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

    Five Year Summary of Key Data; Statement of Financial Position;  Notes to the Consolidated Financial Statements

     

    G4-EC2

    Report risks and opportunities posed by climate change that have the potential to generate substantive changes in operations, revenue or expenditure

    Kuoni recognises that climate change poses risks and opportunities to our company, to the tourism industry and holiday destinations, and to society as a whole. The company has made a long-term commitment to taking action to mitigate and adapt to the phenomenon in its Statement of Commitment on the Environment.

     
    Indirect economic impact

    G4-EC8

    Significant indirect economic impacts, including the extent of impacts

    Please refer to the corresponding DMA

     
  • Environment
    Disclosure on Management Approach

    Water

    In countries in which water is scarce, conflicts arise time and again between the requirements of the tourist sector and the needs of the local population, and of local farmers in particular. The water consumption of the tourist sector is also often hugely disproportionate to that of the local people. An average tourist in Mallorca, Spain, for example, consumes 400 litres of water per day compared to 250 litres for local residents in urban areas (European Environmental Agency, 2001).

    Water Resources Management has been found to be a key material issue in Kuoni’s supply chain and has been integrated as a priority issue in its Statement of Commitment on the Environment published in 2013. Within this policy document, Kuoni commits to map water risks in its key destinations and evaluate the water footprint of its operations, suppliers and customers especially in water scarce areas; engage actively with suppliers on the basis of the Kuoni Supplier Code of Conduct to measure, report and reduce freshwater consumption especially in water scarce areas as well as appropriately treating their wastewater before returning it to the environment; raise the awareness of employees and in-bound customers travelling in water scarce areas and/or areas where the local community lacks access to appropriate drinking water, sanitation and hygiene; and support local communities in developing plans for integrated water resources management at the catchment level and in obtaining access to appropriate drinking water, sanitation and hygiene through partnerships with suppliers and NGOs in selected areas where Kuoni operates.

    Four working streams have been identified to manage freshwater resources in the destinations, namely raising customer awareness, creating standards for the supply chain, promoting technological solutions to reduce water consumption, and applying water footprinting/ accounting methodologies. 

    Actions based on these working streams are being implemented in two pilot destinations – Thailand and Kenya – which were selected based on a multicriteria decision analysis. Criteria used included passenger volume and water scarcity statistics from the World Business Council for Sustainable Development’s Global Water Tool), among other criteria. 

    Kuoni has encapsulated the four abovementioned working streams through the creation of the Kuoni Water Champion Award scheme whereby hotel partners are recognized for achieving 10 key requirements towards a sustainable water management in their operations, including developing an access-to-water project with the local community. A comprehensive user manual was developed for the end-user to have the tools necessary to implement a sustainable water management in their own operations step-by-step, including an accompanying set of Excel worksheets which calculate water consumption and cost-benefit analyses of improvement mechanisms automatically. Any hotel committing to the process outlined in the manual will be eligible for the Kuoni Water Champion award. The manual covers the following aspects: requirements for Becoming a Kuoni Water Champion; planning; data collection; cost benefit analysis; defining an Action Plan; monitoring; staff training; and creating customer awareness. The manual was rolled-out in Kenya in April 2013 to Kuoni suppliers in both the northern and southern coasts of Mombasa. 60% of Kuoni suppliers in the region were in attendance and 10 hotels subsequently committed to joining the Kuoni Water Champions Programme by working towards a sustainable water management. 

    Moreover Kuoni has supported an access to water project near Amboseli National Park in Kenya in cooperation with the NGO Caritas whereby 4 public schools to mediate water scarcity through the construction of rainwater harvesting tanks. The water will be used partly for drinking water and partly for planting tree nurseries which the students care for. Over 1700 students will access secure drinking water and benefit from environmental awareness and 250 trees will be planted per year as a result of the project. Subsequent reforestation will help mitigate climate change and soil degradation (erosion) for local communities, including flora & fauna. 

    Further, Kuoni has supported a water preservation project along the coast of Mombasa initiated by the NGO Baobab Trust. The project involved the building of nine dams in the Vikwatani area, adjacent to Mombasa’s finest beaches, which both capture the area’s rainwater and slow down the local soil erosion. 

    Biodiversity

    Biodiversity has been found to be a key material issue for Kuoni and has been integrated as a priority issue in its Statement of Commitment on the Environment published in 2013. Within this policy document, Kuoni commits to: engage in and support the identification and valuation of ecosystem services associated with protected areas, areas of high biodiversity, and World Heritage sites along Kuoni’s value chain; engage actively with suppliers on the basis of the Kuoni Supplier Code of Conduct to ensure the protection of  coastal habitats, responsible wildlife watching excursions, the purchase of sustainable food supplies, especially as regards fish and seafood, and minimise the spread of non-indigenous and invasive species; raise the awareness of customers and employees on responsible souvenir purchasing and wildlife watching; and facilitate tourism and business skills transfer to conservation specialists and protected area managers in key destinations to promote a sustainable ecotourism development.

    Specific to the fourth commitment, Kuoni and the International Union for Conservation of Nature (IUCN) have continued a joint project focusing on providing conservation organisations, which have little knowledge of the tourism market, with the business skills necessary to design successful ecotourism products. By targeting natural World Heritage Sites, community-based organisations and ecotourism businesses, the project raises awareness on the need for effective and responsible tourism management near protected areas. To this end, an ecotourism textbook has been developed to help conservation organisations, community-based organisations and protected area managers plan and run effective ecotourism businesses. Four training workshops have been held in Kenya, Laos, Sri Lanka and South Korea with a total of 115 participants.

    Emissions

    Climate change – and therefore emissions – has been found to be a key material issue and has been integrated as a priority issue in its Statement of Commitment on the Environment published in 2013. Within this policy document, and in particular reference to emissions, Kuoni commits to measure, monitor, and reduce the GHG emissions of its operations (Scope 1 and Scope 2) and business travel (Scope 3) and where reductions are not feasible, offset resulting emissions through verified, Gold Standard projects; engage actively with suppliers on the basis of the Kuoni Supplier Code of Conduct to increase energy efficiency in their operations and to measure and report their carbon emissions (Scope 3); and encourage its customers to voluntarily offset the emissions from their flights and accommodation through verified, Gold Standard carbon offset projects (Scope 4).

    As of 2012 Kuoni is using a centralised, web based sustainability data management system to gather, analyse and communicate company-wide environmental data. A main goal is reporting the impact of all business flights, paper consumption, and energy use across the Kuoni Group, in order to communicate on our carbon footprint and set reduction targets. 

    Kuoni’s largest Scope 1 emissions stem from its charter airline Novair, which is a key advisor in major international projects in cooperation with different bodies in the European Union. Novair was, for example, the only Swedish carrier to participate in the AIRE (Atlantic Interoperability Initiative to Reduce Emissions) project, funded by the EU and which aimed to find ways to reduce carbon emissions and noise. Through the project, an advanced navigation system was used to avoid flying over populated areas and featured highly accurate wind information uplinked to the aircraft, which was integrated in the curved approach to reduce drag and fuel consumption. During the project period 6% of Novair’s carbon emissions were reduced. 

    Further, passenger transport is one of the main causes of CO2 emissions in the tourism industry. Kuoni reduces its own direct emissions and emissions in its value chain, including those of its customers. To this end Kuoni collaborates with the carbon offsetting organisations myclimate and Green Seat to offer clients with high-quality offsets for their flight emissions and compensate its own carbon emissions generated through its business travels. This compensation is made possible by supporting, for example, waste management projects which produce compost in Bali or efficient stove dissemination projects in Kenya.

    Supplier Environmental Assessment

    Environmental standards are embedded into the Supplier Code of Conduct. These contractual provisions commit our suppliers (e.g. hotel partners, cruise ships, excursion providers) to minimise their negative impact by actively reducing the amount of energy

    and water used and shall minimize the use of chemicals known to cause damage or pose risks to health and/or the environment; comply with mandatory national and international law, particularly in regard to the procedures and standards for waste management, handling and disposal of chemicals and other dangerous materials, emissions and effluent treatment; and monitoring and controlling wastewater and solid waste generated and shall treat it as required prior to discharge or disposal, amongst other criteria. 

    Kuoni suppliers agree to report on their compliance and progress and allow their properties to be inspected by Kuoni upon request. In case of a breach of the terms and conditions of the Supplier Code of Conduct Kuoni is entitled to terminate any contract and cooperation with the supplier with immediate effect and reserves the right to take any further legal action at its discretion. 

    Kuoni monitors the sustainability performance of its most important hotel partners biennially through an on-site check. These hotels cover over 30% of Kuoni’s leisure travel guests out of Europe. Kuoni aligns its monitoring process of core hotel partners with the internationally recognised system for sustainable tourism management, called the Travelife Sustainability System and shares data with other tour operators across Europe. Hotels are invited to conduct an online self-assessment which gives them an initial benchmark of their sustainability performance.

    In a second step, an auditor trained by Travelife or another recognised sustainability scheme carries out an audit to assess the social and environmental performance of the hotel. Kuoni encourages hotels to become Travelife members and, with the help of the system, to improve their sustainability level. Hotels demonstrating excellent sustainability performance are certified and their performance communicated to customers.

    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Water

    G4-EN8

    Total volume of water withdrawn from the following sources:
    Surface water, including water from wetlands, rivers, lakes, and oceans; Ground water; Rainwater collected directly and stored by the organization; Waste water from another organization; Municipal water supplies or other water utilities

    Given the nature of our services-based business, water consumption is considered material in our supply chain rather than our own offices. Nonetheless, we have collated water consumption for our facilities. Total water consumed by reporting offices in the Kuoni Group (excluding Specialists) was 215 475 cubic metres of municipal water supplies. Wherever data could not be gathered due to water fees being included in office rent, it was assumed that each full-time equivalent employee consumed 4 cubic litres of water in the reporting year. 

     
    Biodiversity

    G4-EN13

    Habitats protected or restored.

    The focus of Kuoni's biodiversity strategy is to provide conservation organisations, which have little knowledge of the tourism market, with the business skills necessary to design successful ecotourism products. By targeting natural World Heritage Sites, community-based organisations and ecotourism businesses together with the IUCN, we raise awareness on the need for effective and responsible tourism management near protected areas. Participants of the ecotourism development project in 2013 included representatives from Sril Lanka's Bar Reef Sanctuary, Muthurajawela Sanctuary, Kodigahakanda Sanctuary amongst others.

     
    Emissions

    G4-EN15

    Direct greenhouse gas (GHG) emissions (Scope 1)

    Environmental Performance 2013

     

    G4-EN16

    Energy indirect greenhouse gas emissions (Scope 2)

    Environmental Performance 2013

     

    G4-EN17

    Other indirect greenhouse as emissions (Scope 3)

    Environmental Performance 2013

     

    G4-EN18

    Greenhouse gas emissions intensity

    Environmental Performance 2013

     

    G4-EN21

    NOx, SOx and other significant air emissions

    Environmental Performance 2013

     
    Supplier Environmental Assessment

    G4-EN33

    Significant actual and potential negative environmental impacts in the supply chain and actions taken

    319 suppliers were assessed in 2013. No significant actual negative environmental impacts were identified. Potential negative impacts are outlined in the Statement of Commitment. 77% of the suppliers assessed committed to improvements. No contracts have been terminated.

     
  • Labor practices and decent work
    Disclosure on Management Approach

    Employment

    Behind Kuoni’s long tradition and remarkable success as a leader in the travel industry lies a strong working force: people who enjoy their job and who embody the Kuoni brand values of "Reliability", "Authenticity" and "Passion". More than 11,000 people worldwide share the spirit and energy to continuously learn more about their destinations, their business partners and clients. Kuoni ensures that its vision, values and strategy are reflected in a strong people-centred culture through group-wide systems for training and development and the global application of business ethics that are based on legal compliance, corporate social responsibility and good business practice. 

    Kuoni managers and employees base their decisions on the solid foundations laid by the Kuoni Code of Conduct and strong Corporate Governance rules. Furthermore, internal guidelines for transfer, performance management and recognition serve as a framework to ensure equal opportunity for all. 

    The company encourages employees to share their opinions and give it the opportunity to improve the way it manages the business. Kuoni’s global employee survey called EMPOWER confirms that work environments, day-to-day work tasks, team spirit and support by managers are the most valued aspects of working at Kuoni. 

    The leitmotif for sourcing, assessing and developing talents starting from the job interview through to annual appraisals are the 16 Kuoni Business Competencies, clustered in 4 categories: Leadership, Business Development, Passion and Performance.

    Recognition of people ranks amongst the most important instruments of leadership. The “Recognition Toolkit” helps managers find the right measures and the right moments to give feedback and reward good performance.

    Kuoni is dedicated to engage employees in sustainability related issues and therefore implements several initiatives that range from small personal contributions such as the calculation of their personal CO2 footprint and a bike-to-work scheme through to the organisation of a global annual Corporate Responsibility Day where entities across the world organise activities to learn about different sustainability issues. 

    Training and Education

    Leadership and individual capabilities are leveraged by means of the Kuoni Corporate Academy, which serves as a virtual platform and grants access to all development and training programs available to all employees including classroom trainings, eLearning modules and self-learning templates. The range of training modules reaches from self-management through communication and sales specific courses up to leadership and strategic management. 

    Kuoni managers are expected to meet the highest expectations in terms of strategic and operative leadership and to leverage manpower for success. To meet this target Kuoni trains managers on guiding principles to support them in leading and developing their teams. Amongst these are a competency based skill management and the setting and monitoring of clear and achievable targets on all levels. 

    The Kuoni CR team and further members of the Kuoni Group’s CR network also conduct regular training sessions with employees to promote a dialogue and an exchange of views and ideas. The activities here include introducing new employees to the company’s CR activities on their first day at work and holding employee workshops on specific topics. Moreover we actively support vocational training for future tourist-sector specialists. For example, Kuoni supports a centre for vocational training in Yangon, Myanmar which has developed a three-year “Hotel & Gastronomy Assistant” course to train young people in a wide range of professional skills. 

    Supplier Assessment for Labour Practices

    Human and labour rights standards are embedded into the Supplier Code of Conduct. These contractual provisions commit our suppliers (e.g. hotel partners, cruise ships, excursion providers) to respecting local employment law and international human rights, to not tolerating any discrimination on the basis of sex or religion, to offering a safe and hygienic workplace and to paying at least the minimum wage for the work done. 

    Kuoni suppliers agree to report on their compliance and progress and allow their properties to be inspected by Kuoni upon request. In case of a breach of the terms and conditions of the Supplier Code of Conduct Kuoni is entitled to terminate any contract and cooperation with the supplier with immediate effect and reserves the right to take any further legal action at its discretion. 

    Kuoni monitors the sustainability performance of its most important hotel partners biennially through an on-site check. These hotels cover over 30% of Kuoni’s leisure travel guests out of Europe. Kuoni aligns its monitoring process of core hotel partners with the internationally recognised system for sustainable tourism management, the Travelife Sustainability System and shares data with other tour operators across Europe. Hotels are invited to conduct an online self-assessment which gives them an initial benchmark of their sustainability performance.

    In a second step, an auditor trained by Travelife or another recognised sustainability scheme carries out an audit to assess the social and environmental performance of the hotel. Kuoni encourages hotels to become Travelife members and, with the help of the system, to improve their sustainability level. Hotels demonstrating excellent sustainability performance are certified and their performance communicated to customers.

    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Employment

    G4-LA1

    Total number and rates of new employee hires and employee turnover by age group, gender and region

    Labour Performance 2013

     
    Training and education

    G4-LA11

    Percentage of employees receiving regular performance reviews and career development reviews, by gender and by employee category.

    Labour Perfomance 2013

     
    Supplier Assessment for Labour Practices

    G4-LA15

    Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

    326 suppliers were assessed in 2013. No significant actual negative labour impacts were identified. Potential negative impacts are outlined in the Statement of Commitment. 72% of the suppliers assessed committed to improvements. No contracts have been terminated.

     
  • Human Rights
    Disclosure on Management Approach

    Child labour

    Kuoni respects and promotes the rights of the child, including protection from sexual exploitation of children and adolescents in tourism, protection from child labour and trafficking, as described in the company’s Supplier Code of Conduct and the Statement of Commitment on Human Rights. In this regard, the company adheres to accepted international laws and practices as set out by:

    - the Universal Declaration of Human Rights (UDHR)  

    - the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work (‘ILO Core Conventions’)

    - the UN Guiding Principles on Business and Human Rights 

    - the UN Global Compact Ten Principles

    - the UN Tourism Organisations (UNWTO) Global Code of Ethics

    - the UN Children’s Rights and Business Principles

    - and the OECD Guidelines for Multinational Enterprises.

    Kuoni also expects suppliers to commit to these same high standards, as monitored during sustainability audits conducted on a frequent basis. The supplier shall not employ children younger than 15 years of age unless local minimum age law stipulates a higher age for work or mandatory schooling, in which case the higher age shall apply. If however, local minimum age law is set at 14 years of age in accordance with developing country exceptions under ILO Convention No. 138, the lower will apply. If the supplier employs young people between the age of 14 and 18, the supplier must treat them with particular consideration, for example by restricting their working hours. 

    Kuoni has also been an active member of the The Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism (the Code.org) since 2006 and is represented on its board. As part of this commitment, Kuoni informs its customers about the issue, contractually obliges its partners to adopt the same ethical approach and shows its partner hotels and their employees what they should do if they come across any cases of sexual exploitation of children in the course of their work.

    Forced and compulsory Labour

    As in accordance with the ILO Declaration on Fundamental Principles and Rights at Work, forced or involuntary labour is not tolerated in any form. During sustainability audits and monitoring processes, Kuoni makes sure that all employees are covered by an employment contract, and employees are free to enter their employment through their own choice. The audits also check that working hours comply with national or international laws.

    HR Assessment

    The Kuoni Group is committed to respect human rights and seeks to avoid direct responsibility for and complicity in human rights abuses. Kuoni has outlined this as follows in the Kuoni Code of Conduct: “We aim to respect and proactively foster internationally-recognised human rights within our sphere of influence, especially the rights of the most vulnerable of our society. We seek to avoid complicity in human rights abuses and to further develop appropriate response mechanisms.” 

    In 2012 Kuoni published its Statement of Commitment on Human Rights, which is endorsed by the Group Executive Board. Kuoni does not attribute more importance to one human right over another. However, it strives to prioritise its implementation efforts in aspects of operations over which it has greater degrees of control and influence, which are: 1. respect for labour rights; 2. respect and promotion of the rights of the child; 3. due diligence in regards to human rights and its business in selected sensitive destinations. 

    In addition, a human rights impact assessment, which represents a first assessment of the human rights risks and impacts arising from Kuoni’s operations and business relationships, was conducted in Kenya in 2012. 

    This pilot paved the way for a second human rights impact assessment which was conducted by Kuoni in India in October 2013. The choice of India, where Kuoni operates through its fully-owned company Kuoni Destination Management (KDM ) India, was based on Kuoni’s global human rights risk assessment, which assesses all destinations by the criteria of: the country’s human rights risk level according to publicly-available human rights indices; passenger volume; and the company’s leverage at the destination (own ground agents vs. external partners). 

    The impact assessment methodology follows a sequence of six steps: 1. clarify the scope and plan the assessment including preparation of a stakeholder briefing document; 2. conduct background research and map stakeholders and the value chain; 3. collect evidence on the ground of actual and potential human rights impacts along and around the value chain; 4. review, structure and analyze the findings of the on-site assessment; 5. develop the impact assessment report; and 6. define mitigation actions and plan.

    Through the course of Kuoni’s regular audits, Group Internal Audit reviews and reports on the conditions of human rights within the company’s operations. Kuoni is dedicated to monitor its progress in regards to human rights in an appropriate way aligned to the UN Guiding Principles on Business and Human Rights. 

    Supplier Human Rights Assessment

    Human and labour rights standards are embedded into the Supplier Code of Conduct. These contractual provisions commit our suppliers (e.g. hotel partners, cruise ships, excursion providers) to respecting local employment law and international human rights, to not tolerating any discrimination on the basis of sex or religion, to offering a safe and hygienic workplace and to paying at least the minimum wage for the work done. The application of Kuoni’s sustainability criteria is assessed and verified. We also strive to help our partners meet these requirements over the longer term, and to ensure due and appropriate acknowledgement of their achievements in this regard. 

    Kuoni suppliers agree to report on their compliance and progress and allow their properties to be inspected by Kuoni upon request. In case of a breach of the terms and conditions of the Supplier Code of Conduct Kuoni is entitled to terminate any contract and cooperation with the supplier with immediate effect and reserves the right to take any further legal action at its discretion.

    Kuoni monitors the sustainability performance of its most important hotel partners biennially through an on-site check. These hotels cover over 30% of Kuoni’s leisure travel guests out of Europe. Kuoni aligns its monitoring process of core hotel partners with the internationally recognised system for sustainable tourism management, called the Travelife Sustainability System and shares data with other tour operators across Europe. Hotels are invited to conduct an online self-assessment which gives them an initial benchmark of their sustainability performance. 

    In a second step, an auditor trained by Travelife or another recognised sustainability scheme carries out an audit to assess the social and environmental performance of the hotel. Kuoni encourages hotels to become Travelife members and, with the help of the system, to improve their sustainability level. Hotels demonstrating excellent sustainability performance are certified and their performance communicated to customers.  

    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Child labour

    G4-HR5

    Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

    Kuoni sees no material risk for incidents of child labour within its own operations. However, Kuoni pays particular attention to protecting children from commercial sexual exploitation in the tourism supply chain including in its key destinations: The company acknowledges that the issue amounts to worst forms of child labour according to the ILO Convention 182. With acts of child sex tourism occurring in hotels, Kuoni sees itself as duty-bound to take action against this problem, particularly in Thailand, India, the Dominican Republic and Kenya. In 2013  2013 Kuoni supported a new e-learning system through its collaboration with The Code.org in Thailand, through which at least 60% of The Code's country members have been trained. Visit our Child Protection page to read about more measures.

     
    Forced and Compulsory Labour

    G4-HR6

    Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

    .

    Kuoni sees no material risk of forced or compulsory labour in its own operations. However, work or service executed under the menace of a penaly or for which the said person has not offered him- or herself voluntarily might occur in touristic areas. Examples could be woman trafficked and forced into prostitution or migrants forced into labour in  tourism-related economic activities. Kuoni has taken measures to assess the risk of forced or compulsory labour in its value chain in India during the Human Rights Impact Assessment.

     
    HR Assessment

    G4-HR9

    Total number and percentage of operations that have been subject to human rights reviews or impact assessments

    Destination Management Services subsidairy SITA in India was assessed in 2013. Read more details in the assessment report.

     
    Supplier Human Rights Assessment

    G4-HR11

    Significant actual and potential negative human rights impacts in the supply chain and actions taken

    326 suppliers were assessed in 2013. No significant actual negative human rights impacts were identified. Potential negative impacts are outlined in the Statement of Commitment. 72% of the suppliers assessed committed to improvements. No contracts have been terminated.

     
  • Society
    Disclosure on Management Approach

    Anti-Corruption

    Kuoni is committed to doing business ethically and believes that bribery and corruption are wrong and not acceptable. According to the Kuoni Code of Conduct, each employee is obliged to comply with all applicable laws, rules and regulations as well as with internal regulations and guidelines. The Kuoni Code of Conduct also states that gifts and hospitality may not be given, offered or received with the intent or prospect of influencing decision making or other conduct and refers to Kuoni’s Group Anti-Corruption Regulation (“Group Regulation”) for further guidance. The Group Regulation has been issued by Kuoni’s Board of Directors and is fully endorsed by the Group Executive Board.  The Regulation is reviewed on an annual basis by the Group Compliance Officer and an external expert and any changes are submitted to the Group Executive Board and the Board of Directors for approval. 

    VFS Global Division has issued its own Anti-Corruption Regulation ("VFS Regulation") in line with the Group Regulation. The focus in 2013 was on implementation of the Group Regulation and the VFS Regulation. In 2013 the Group Compliance Officer and the Group Risk Manager in cooperation with an external expert conducted a corruption risk assessment in order to identify corruption risks across the Kuoni Group. Mitigation actions are being implemented in order to reduce identified risks. 

    The Group Regulation was rolled out in eight languages within the divisions Outbound & Specialists and Global Travel Services (together the “Divisions”) and the Group functions. A customized e-learning module was rolled-out through the LMS (Learning Management System). Approximately 75 percent of employees of the Divisions and the Group functions have completed the course. In some units in more exposed jurisdictions classroom trainings have been held.

    Under the Group Regulation, the HR Departments are in charge of administering the LMS and clearing gifts and hospitality. Where a legal department exists, the latter is in charge of the clearance process. 

    All employees of the VFS Global Division were encouraged to go through the VFS Regulation in the LMS. HR managers were trained and 54 percent of VFS Global’s employees have passed an online test. Since November 2013 a revised version of the VFS Regulation is available in the LMS. 

    Monitoring: According to the Group Regulation, all business units must maintain adequate compliance monitoring programs and Group Internal Audit reviews the effectiveness of the regulations and compliance with them. Findings are reported to the Audit Committee and the Group Compliance Officer. All employees are requested to report any violation of the law or the Group Regulation and any suspicious, risky or corrupt conduct to their superior or any higher ranking superior. In addition, they are requested to report their suspicions to the legal department of their business unit or the Group Compliance Officer. The contact details of the Group Compliance Officer are therefore mentioned in the Code of Conduct and the Anti-Corruption Regulation. Reports to the Group Compliance Officer can be made on a confidential basis or anonymously (whistleblowing). 

    In 2013 no specific incidents of corruption have been detected within Kuoni. 

    Anti-competitive Behavior

    It is the corporate policy of Kuoni that all of Kuoni’s business activities must be conducted with due and full regard to all compulsory laws and, in particular, the relevant competition regulations in all the countries in which Kuoni conducts its business. Kuoni’s commitment to Antitrust law is outlined in the Kuoni Code of Conduct as follows: "Antitrust law may on no account be violated. Any such violation may result in substantial fines for Kuoni and in fines or prison sentences for its employees. In particular, price-fixing among competitors (verbal, written or in any other form), market allocation, exchange of information and any other practices which may inhibit free competition are prohibited."

    Moreover, Kuoni has implemented a Group Competition Law Regulation that shall give guidance to avoid prohibited practices and to identify situations in which – in case of doubt – consultation with the superior, the Divisional or local legal department or the Group Compliance Officer should be sought. 

    In 2013 no legal actions regarding anti-competitive behavior or violations of anti-trust and monopoly legislation have been filed against Kuoni.

    Compliance

    In view of the international nature of its business activities, Kuoni is confronted with a wide range of legal frameworks and parameters. The general commitment of Kuoni to compliance with the law and internal regulations is outlined in the Kuoni Code of Conduct which states the following: "Each Kuoni employee is personally obliged to comply with all applicable laws, local rules and regulations as well as with Kuoni’s internal regulations and guidelines for their jurisdiction and/or area of activity. All employees shall familiarise themselves with the rules, regulations and guidelines which are relevant to their business activity. Local Kuoni top management is responsible for ensuring that the relevant training and monitoring is provided." 

    The compliance framework of Kuoni consists of several regulations in various areas of law: Anti-corruption, competition law, record retention, securities trading, IT security, data protection etc. All of these regulations are available to Kuoni staff on Kuoni’s intranet.

    Monitoring: As set out in the Kuoni Code of Conduct, Kuoni encourages the reporting of any transgressions to the employee’s superior or to the Group Compliance Officer. Reports to the Group Compliance Officer can be made on a confidential basis or anonymously (whistleblowing). 

    In 2013 no substantial fines or non-monetary sanctions for non-compliance with laws and regulations have been imposed on Kuoni.

    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Anti-Corruption

    G4-SO4

    Communication and training on anti-corruption policies and procedures

    Approximately 75 percent of employees of the Outbound & Specialists and GTS Divisions as well as the Group functions have completed an e-learning course on the Group Anti-Corruption Regulation. 54 percent of VFS Global’s employees have passed an online test on the VFS Anti-Corruption Regulation. Further information is available in the corresponding DMA

     

    G4-SO5

    Confirmed incidents of corruption and actions taken

    In 2013 no specific incidents of corruption have been detected within Kuoni.

     
    Anti-Competitive Behaviour

    G4-SO7

    Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes

    In 2013 no legal actions regarding anti-competitive behavior or violations of anti-trust and monopoly legislation have been filed against Kuoni.

     
    Compliance

    G4-SO8

    Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

    In 2013 no substantial fines or non-monetary sanctions for non-compliance with laws and regulations have been imposed on Kuoni

     
  • Product Responsibility
    Disclosure on Management Approach

    Customer Health and Safety

    The health and safety of Kuoni customers is of the utmost importance. Our Health & Safety operations in the UK are designed in conjunction with the Federation of Tour Operator’s (FTO) Preferred Code of Practice on Health and Safety in relation to accommodation, land transport and other activities. Our team of qualified personnel is responsible for the health & safety of the Kuoni UK Group programmes. Carrying out checks, monitoring services, ensuring standards are maintained and where possible, working with the suppliers to encourage ongoing improvement, often over and above those standards required in the country of operation. Independent consultants and experts are used to support the health & safety team. The company ensures that all properties featured comply with local regulations and are in possession of a current valid fire certificate or equivalent documentation, where issued by the appropriate licensing authority. The featured properties should also hold current public liability and building insurance policies and any operating licenses as required by the local authorities. 

    The company carries out workshops and seminars with hoteliers, excursion operators, restaurants and transportation suppliers independently and as part of FTO joint initiatives. Further, health and safety awareness training for Kuoni UK employees, ground agent contractors and our overseas representatives are conducted s part of an ongoing programme covering key health & safety issues. 

    Customer Privacy

    As a globally operating company, Kuoni is committed to offering a high, uniform minimum standard for the collection and processing of personal data.

    The Kuoni Code of Conduct states that Kuoni respects and protects the privacy of every individual, be it an employee, customer, business partner or any other individual about whom Kuoni processes personal data. Hence, Kuoni does not divulge any confidential information unless required by law. The Kuoni Code of Conduct continues: "Personal data may not be acquired by illegal means. Any processing of personal data must be reasonable. Any employees processing personal data should ensure that such data is correct. Kuoni shall also provide the technical and organisational means required to ensure that personal data is protected against unauthorized processing." 

    Based on the Kuoni Code of Conduct the Group Data Protection Regulation has been established. This regulation applies to all persons having access to or processing personal data controlled by Kuoni and incorporates the key principles of data protection found in most national and supranational laws. Also in countries not providing for an adequate level of protection or where there is no data protection or privacy legislation in place Kuoni adheres to the standards of its Group Data Protection Regulation. 

    The Group Data Protection Regulation is supplemented by the IT Security Regulation which demonstrates Kuoni’s commitment to information security and defines the minimum IT security requirements and the principles to preserve confidentiality, integrity and availability of all information and sets out the roles and responsibilities of the stakeholders. 

    Further, VFS Global Visa Application Centres (VACs) are certified to ISO 27001 standard. VFS Global has implemented information security management system (ISMS) and controls as described in ISO 27002: Code of Practice to ensure confidentiality, integrity, availability and privacy of data while it is being handled by VFS Global during visa processing services. VFS Global maintains a statement of applicability that describes the various controls as mentioned in the ISO 27002 structure and as applicable to VFS Global business operations. These controls meet the requirements of Security Policy Framework of respective client governments and help VFS Global to comply with such requirements.

    In 2013 no substantiated complaints concerning breaches of customer privacy have been received by Kuoni.

    GRI Indicator Explanation of GRI Description/Reference Fulfillment
    Customer Health and Safety

    G4-PR2

    Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

    In 2013 no incidents of non-compliance have been received by Kuoni.

     
    Customer Privacy

    G4-PR8

    Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

    In 2013 no substantiated complaints concerning breaches of customer privacy have been received by Kuoni.