corporate social responsibility report 2011 - Etihad Airways

etihadairways.com

corporate social responsibility report 2011 - Etihad Airways

COLLABORATING FOR CHANGE

CORPORATE SOCIAL RESPONSIBILITY REPORT 2011


Etihad Airways

P.O. Box 35566,

Khalifa City,

Abu Dhabi

United Arab Emirates

Telephone: + 9712 511 0000

Fax: + 9712 511 1200

Website: www.etihad.com

Scope of reporting

Together, Etihad Airways’ sustainability

report, is published once a year in English

and Arabic, and covers the airline’s

sustainability strategy and performance

for a calendar year from 1 January to

31 December 2011, unless otherwise

noted.

Activities of the airline’s outstations,

subsidiaries and joint ventures have

not been included in this report unless

specifically mentioned.

An electronic version of the report is

accessible on the airline’s website at

www.etihad.com.

The report has not been independently

audited but reference is made to the

Global Reporting Initiative, GRI G3 Sustainability

reporting guidelines. Where

GRI indicators are addressed they are

referenced as a footnote next to the GRI

symbol.

For more information about this report,

please contact : Anne Tullis, Head of

CSR and Sustainability, Etihad Airways

P O Box 35566, Abu Dhabi UAE atullis@etihad.ae

+9712 511 1031 or visit

the website at www.etihadairways.com

CONTENTS

From the President and Chief Executive Officer 6 | Etihad Airways 8 | Executive Team 9 | Sustainability at Etihad Airways 10

Route map 12 | Collaborations and conversations 14 | Together 16 | Greener Together 18 | Growing Together 36 | Working Together 40

Giving Together 46 | Corporate governance 48 | Awards 50

2 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 3


HH Sheikh Khalifa bin Zayed Al Nahyan

President of the UAE and the Ruler of Abu Dhabi

HH General Sheikh Mohamed bin Zayed Al Nahyan

Crown Prince of Abu Dhabi and Deputy Supreme

Commander of the Armed Forces of the UAE

Etihad Airways

Board of Directors

HH Sheikh Hamed bin Zayed Al Nahyan (Chairman)

HH Sheikh Khaled bin Zayed Al Nahyan (Vice Chairman)

HE Mohammed Mubarak Fadel Al Mazrouei

HE Ahmed Ali Al Sayegh

HE Mubarak Hamad Al Muhairi

HE Hamad Abdullah Al Shamsi

HE Khalifa Sultan Al Suwaidi

4 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 5


From the President and Chief Executive Officer

2011 drew to a close on a high point

with the attainment of our first year of

profitability – a major milestone in our

eight year history, and the crowning

achievement of a busy and successful

year.

This result is all the more significant in

light of the testing global environment

in which it was achieved. The year

was marked by a succession of natural

disasters, the unprecedented civilian

uprisings in the Middle East and North

Africa, a persistent sovereign debt crisis

across Europe and high oil prices.

Against this backdrop Etihad Airways

delivered earnings before interest

and tax (EBIT) of US$137 million, on

revenues up 36 per cent to US$4.1

billion. Net profit for the year came in at

US$14 million.

However, we should not and do

not measure our success only in

commercial terms. As an organisation

we aim to be completely transparent

and open to a holistic evaluation - not

only on our bottom line, but more

importantly, on how we engage with

our staff, our customers and our

business partners, and on our integrity

in dealing with the industry’s impacts on

the environment.

Etihad Airways has a comprehensive

environmental strategy which makes

provision for emissions reduction,

recycling and efficient resource

utilisation. However, as part of an

industry heavily reliant on fossil fuel,

particular focus is placed on emissions

management and climate change as

airlines face increasing pressure to take

proactive measures to reduce their

dependence on oil.

In March, despite strong reservations,

Etihad Airways submitted its emissions

report in compliance with the

requirements of the European Union

Emissions Trading Scheme (EU ETS).

The decision in October by the

European Court of Justice to uphold

the legality of the EU ETS was

disappointing. In addition to the

potentially significant financial burden

on our industry, the scheme is divisive

and ineffective in addressing the real

issue of emissions reduction. Along with

local and global industry partners, we

support collaboration to find sensible

and fair solutions and we believe that

a global sectoral approach is needed

to avoid competitive distortion and

negative macro-economic effects on our

industry and wider global economy.

Over and above the significant

investment in our modern fleet of 64

aircraft, we continue to implement

initiatives that drive improved fuel

efficiency and reduce our emissions

and this is clearly reflected in annual

efficiency improvements across our

fleet. Equally importantly, we are

committed to play our role in what

we see as the most important carbon

abatement strategy, namely the

development of a commercially viable

biofuel. Working with the Masdar

Institute, Boeing and Honeywell’s UOP,

we will invest a total of US$2 million

over five years in a biofuel research and

development project investigating salttolerant

sources of biofuel in the desert

coastal regions of Abu Dhabi.

Etihad Airways employs more

than 10,000 staff representing 125

nationalities. This diverse workforce

is our most important asset, and their

wellbeing is critical to our successful

growth and sustainability. In addition to

very competitive and fair compensation

packages we continue to invest heavily

in making this a good place to work.

In the local community and across

our network, we continue to invest in

people – empowering and developing

individuals to take up meaningful

economic roles in their communities.

This commitment is no better illustrated

in Abu Dhabi than by Etihad Airways

career development and nationalisation

programs. Further afield, we support

a range of educational initiatives to

develop both business skills and artistic

talent in all disciplines.

As a natural consequence of living

and working in a multinational,

cosmopolitan city and by virtue of our

own diverse workforce, we see it as a

priority to connect people and support

projects and initiatives that facilitate

ongoing dialogue and engagement

to promote cultural awareness and

understanding.

As a driver of tourism, we play a critical

role in promoting the Emirate’s rich

culture and heritage.

In 2011 Etihad contributed US$ 7

billion (9.6 per cent of Abu Dhabi’s

non-oil GDP (or 3.8 per cent of total

GDP), supporting around 104,000 (or 8

per cent) of non-oil jobs throughout the

Emirate.

In 2011 we reinvigorated our approach

to customer engagement through the

newly established Guest Experience

department. July 2011 saw the launch

of a new initiative to encourage

passengers to ‘Tell Us What You Think’.

This feedback will form the basis for

an ongoing program of change in

productivity and performance across the

customer journey to ensure we maintain

the standards that have assured our

position as the World’s Leading Airline

for three consecutive years.

In the year since the publication of our

last report we have made good progress

on our journey towards sustainability.

I look forward to continuing an open

and productive dialogue with all our

stakeholders in the coming year.

James Hogan

President and Chief Executive Officer

As a natural consequence

of living and working

in a multinational,

cosmopolitan city and by

virtue of our own diverse

workforce, we see it as a

priority to connect people,

support projects and

initiatives that facilitate

ongoing dialogue and

engagement to promote

cultural awareness and

understanding.”

1.1, 1.2

6 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 7


Etihad Airways

US$4.1 billion

36%

TOTAL REVENUE

US$29.6 billion

23.9%

PASSENGER REVENUE

8 Etihad Airways Corporate Social Responsibility Report 2011

Etihad Airways, the national airline of the United Arab Emirates,

based in its capital, Abu Dhabi, was set up by government decree

and made its first commercial flight in November 2003.

Wholly owned by the Government of Abu Dhabi, Etihad Airways

is a global business supporting the Abu Dhabi 2030 Plan and

contributing in the region of US$1.46 billion to the UAE economy.

The airline has 35 codeshare partners and serves 84 passenger and

cargo destinations in Africa, Asia, Australia, Europe, the Middle

East and North America operating a young and environmentallyefficient

fleet of 66 aircraft.

Etihad Airways has a 29.21 per cent stake in airberlin, Europe’s

sixth largest carrier and a 40 per cent shareholding in Air

Seychelles, the national airline of the Republic of Seychelles.

Etihad Airways’ main business is the international air

transportation of passengers. The airline also operates Etihad

Holidays, Hala Abu Dhabi, Etihad Cargo and a global contact

centre organisation as part of its commercial group.

US$651 million

25.7%

CARGO REVENUE

8.3 million

17%

PASSENGER NUMBERS

38.7 billion

15.8%

REVENUE PASSENGER

KILOMETRES

2

51 billion

13%

AVAILABLE SEAT

KILOMETRES

Chief

Planning

and Strategy

Officer

• Cargo

• Government

Affairs and

Aeropolitical

• Network

Planning

• Fleet Planning

• Revenue

Management

• Amadeus Gulf

• Alliances and

Distribution

Executive Team

President and Chief Executive Officer

• Audit

• Corporate Affairs

• Corporate Security

Chief

Commercial

Officer

• Marketing

• Product

• Sales

• Contact

Centres

Etihad Holidays

• eCommerce

• Service Design

and Delivery

• Hala Abu Dhabi

• Hala Travel

Management

75.8 per cent

1.8%

SEAT FACTOR

Chief

Operations

Officer

• Airport

Operations

• Flight

Operations

• Guest

Experience

• Safety

• Aviation

Security

• Corporate Strategy

• General Counsel and Legal

• Program Management Office (PMO)

64 aircraft

Chief

Financial

Officer

• Finance

• IT

• Supply chain

• Property

• Treasury

• Investments

12.3%

FLEET SIZE

Chief

People and

Performance

Officer

• Human

Resources

• Facilities

• Medical

9,038

15.1%

NUMBER OF

EMPLOYEES

Etihad Airways Corporate Social Responsibility Report 2011 9


Sustainability at Etihad Airways

Vision: To be recognised as a sustainable airline

that operates to the highest standards of safety with

integrity and transparency.

Mission: Sustainability will be at the core of our business. We will

ensure that sustainability is integrated and integral to our day to

day operations and practices and is embedded in every layer of our

business thinking, planning and execution.

10 Etihad Airways Corporate Social Responsibility Report 2011

4.8

Objectives

• Drive individual and corporate

awareness of the necessity of living and

working sustainably.

• Develop capability and capacity in

Etihad Airways to manage the ongoing

sustainability agenda.

• Meaningfully and regularly consult with

and engage all our stakeholders at the

hub and across the network:

- to ascertain their expectations and

needs , and

- implement initiatives that show

a genuine commitment to meet those

expectations.

• Set and manage meaningful targets

to improve continuously our

sustainability performance based on

globally identified, material criteria, our

shareholder mandate and stakeholder

expectations.

• Create tools and initiatives that allow our

core stakeholders to participate: for example

staff participation (training and reward),

customer participation (voluntary

carbon offset), and supplier participation

(website recognition of adherence to

policies).

• Measure and report honestly and

transparently our performance in identified

and material criteria.

• Promote our activity through

the full range of traditional and new

communications channels and in effective

reporting.

• Continue to align Etihad Airways

sustainability policy and activity with the

objectives in the Abu Dhabi 2030 Plan.


Inverness

Malaga

Aberdeen

Oslo

Gothenburg

Helsinki

Stockholm

Londonderry

Edinburgh

Belfast

Copenhagen

Nottingham Amsterdam

Birmingham London Stansted

Prague

Stuttgart Kosice

Basel

Zurich

Lyon

Venice

Bucharest

Sofia

Madrid

Rome

Barcelona

Tirana

Thessaloniki

Berlin

Isle of Mann

Leeds

Hamburg

Manchester Hanover

Dublin

Warsaw

London

Southampton

Düsseldorf

Exeter Brussels

Jersey

Frankfurt

Paris

Munich Vienna

Salzburg Budapest

Innsbruck Graz

Geneva

Toulouse

Milan

Marseille

Belgrade

Palma de Mallorca

Istanbul

Europe Network

Broome

Port Hedland

Karratha

Perth

Route map

Newman

Darwin

Australasia Network

Athens

Catania

Malta

Cairns

Townsville

Proserpine Hamilton Island

Mackay

Rockhampton

Ayers Rock (Uluru)

Gladstone

Hervey Bay

Sunshine Coast

Brisbane

Gold Coast

Ballina

Coffs Harbour

Port Macquarie

Newcastle

Adelaide

Sydney

Canberra

Albury

Melbourne

Launceston

Hobart

Rhodes

Christchurch

Queenstown

Dunedin

Auckland

Hamilton

Rotorua

Wellington

Vancouver

Seattle

Minneapolis Ottawa

La Crosse Toronto

MadisonMilwaukeeRochester

Syracuse

Sioux City DubuqueChicago

Waterloo

BuffaloWestchester Boston

Des Moines Moline Toledo

Detroit Cleveland Hartford

Omaha Bloomington Champaign Newark New York

Salt Lake City

Indianapolis Harrisburg

Pittsburgh NY - La Guardia

Denver

Louisville Columbus Philadelphia

Saint Louis

Baltimore

San Francisco

Covington

Evansville Lexington Washington

Las Vegas

Tulsa

NW Arkansas Nashville

Oklahoma

Memphis

Knoxville

Raleigh (Durham)

Los Angeles

Little Rock

Huntsville

Charlotte Douglas

Phoenix

Dallas

Atlanta

San Diego Tucson

El Paso

Wilmington

Austin

San Antonio Houston New Orleans

Orlando

Tampa

Fort Myers

Miami

Etihad Destinations

Codeshare Partner Destinations

Etihad Future Destinations

São Paulo

Bangkok

Manila

Trat

Phnom Penh

Ho Chi Minh City

Phuket

Koh Samui

Krabi

Langkawi

Penang

Kuala Lumpur Kuantan

Johor Bahru

Singapore

Kota Kinabalu

Kuching

Tokyo

Osaka Nagoya

Fukuoka Matsuyama

Kumamoto

Kagoshima

12 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 13

Funchal

Nouakchott

Dakar

Banjul

Manchester

Dublin

London

Düsseldorf

Brussels

Frankfurt Prague

Paris

Munich

Porto Barcelona

Madrid

Lisbon

Faro

Tangiers Nador

Fez Oujda

Casablanca

Errachidia

Marrakech

Ouarzazate

Agadir

Bamako

Geneva

Milan

Ouagadougou

Cotonou

Accra

Lagos

Tripoli

Istanbul

Kiev

Athens

Minsk

Larnaca

Alexandria

Cairo

Khartoum

St. Petersburg

Nairobi

Johannesburg

Moscow

Krasnodar

San'a

Kazan

Samara

Erbil Tehran

Beirut

Baghdad

Damascus

Amman Basrah

Kuwait

Dammam

Riyadh

Bahrain

Doha

Jeddah

Abu Dhabi Muscat

Seychelles

Praslin

Astana

Karachi

Peshawar

Islamabad

Lahore

Delhi

Bengaluru

Kozhikode

Kochi

Trivandrum

Colombo

Malé

Almaty

Mumbai

Hyderabad

Chennai

Kathmandu

Dhaka

Luang Prabang

Chiang Mai

Yangon

Chengdu

Hanoi

Beijing

Jakarta

Denpasar Bali

Shanghai

Hong Kong

Seoul

Okinawa

Sapporo

Sendai

Niigata

Melbourne

Brisbane

Sydney

Auckland


Collaborations and conversations

Collaboration with stakeholders is essential in our

sustainability endeavours.

We work tirelessly across the broadest range of

stakeholders; notably employees, customers,

service providers, industry groups, local businesses,

government departments, non-government

agencies, industry associations, charities and others

to engage, educate, inform and effect change.

We engage with staff to sustain motivation,

increase awareness, to educate, gain ideas, and to

communicate our appreciation, specifically:

» the cabin crew social responsibility group works

on supporting charities;

» the green champions are volunteers within the

company who get together regularly to share ideas

and initiatives and then communicate these

amongst their colleagues;

» the three-day ‘Marhaba’ induction program for

new staff includes a section on environmental

awareness;

» the carbon management committee members

are representative of all key departments within

the business. Regular meetings ensure a common

understanding of carbon and emissions related

issues; identify and approve policy positions,

projects and programs relating to carbon

management;

» the biofuel committee is led by the Chief

Operations Officer and implements the biofuel

strategy for the business; and

» mass communication facilitated through a

dedicated intranet site for environmental matters,

a dedicated email and a section in the internal

staff newspaper – Etihad News.

14 Etihad Airways Corporate Social Responsibility Report 2011

Etihad Airways customers form a key stakeholder

group. In July 2011, a new initiative was

launched to facilitate convenient and accessible

communication between Etihad Airways and

its customers. A range of processes put in place

encourage customers to; ‘tell us what [they] think’;

measure customer feedback clearly and efficiently;

and make this information accessible to track

productivity and performance. The new systems

allow the airline to centralise and streamline all

customer feedback and customer relations activity

Within the local community, the airline uses media

channels to communicate and also engages directly

with local governments and businesses through

partnership groups, including the following;

» membership of the Abu Dhabi Sustainability

Group (ADSG);

» membership of ADSG task forces including

the waste, the labour practices and sustainable

procurement task groups; and

» within the industry Etihad Airways has an

extensive network of collaboration, both locally

regionally and at a global level. These are

essential in effectively addressing the complex

global challenges and developing common

positions.

In July 2011, a new ‘tell us

what you think’ initiative was

launched to facilitate convenient

and accessible communication

between Etihad Airways and its

customers.

Our participation includes the following:

» the Abu Dhabi Stakeholders Coordination Group,

focused on aviation and climate change and

hosted by the Department of Transport;

» regular meetings with the environment team of

the UAE General Civil Aviation Authority as part

of an aviation environment policy group;

» membership of the regional Arab Air Carriers

Associations’ Environmental Policy Group; and

» global interaction with international airlines

through the International Air Transport Association

Environment Committee and International

Affairs Committee.

Increasingly the issues facing aviation are far too

complex to address effectively within the industry

and thus its collaborative efforts are becoming

much more extensive. The airline industry’s

commitment to driving the commercialisation of

biofuels has resulted in the creation of an airline

stakeholder group, the Sustainable Aviation Fuel

Users Group, and in cross-industry engagement

with many other stakeholders throughout the supply

chain.

Etihad Airways’ flight operations and technical

teams engage extensively with all in the

aviation industry to investigate opportunities for

improvements in flight paths and routes. The

airline’s engagement on the INSPIRE - Indian

Ocean Strategic Partnership to Reduce Emissions

– project involved over 20 global stakeholders

including airlines, airports, civil aviation authorities

and airspace navigation providers. The potential

emissions savings are simply not possible without

this extensive collaboration.

In future Etihad Airways will continue to work

collaboratively, ensuring that these efforts remain

relevant to support aviation sustainability.

4.13, 4. 16, PR5

Etihad Airways Corporate Social Responsibility Report 2011 15


Together

Etihad Airways acknowledges its position as an integral part

of society and its potential to have both positive and negative

impacts on the communities in which it operates.

Aligned with the greater ambitions and vision of the Emirate

of Abu Dhabi, the sustainability policy and supporting strategy

is designed to ensure its compliance with all applicable

international and local regulations and standards; mitigate any

potential risks and enhance the airline’s reputation through

the implementation of industry best practice in the fields of

sustainability and social responsibility.

Sustainability is a collaborative process, and one which will

only succeed in partnership with the broad range of internal

and external stakeholders. For this reason, the airline’s

sustainability program is called Together.

Together is a four-part policy, communications and reporting

framework for engagement with all our stakeholders - our

staff, the local community and economy, the environment,

and the greater communities across our global network.

• Greener Together

• Growing Together

• Working Together

• Giving Together

In these four areas, the aim is to work collaboratively in:

• Identifying and developing awareness of the

issues and challenges;

• Focusing action to address these challenges; and

• Making a difference, through measurable

improvement, year on year.

16 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 17


Etihad Airways’ environmental strategy and program

is driven primarily by its commitment to reduce its

carbon dioxide emissions.

Nevertheless, the overall strategy is diverse, looking at

the environmental performance of aircraft operations

and the supporting ground activities.

The introduction of more aircraft in 2011 saw an

overall increase in resource use and emissions.

However, there were substantial improvements in fuel

efficiency when measured per passenger kilometre – a

clear reflection of the success of Etihad Airways’ fuel

saving initiatives.

Particular focus was placed on staff awareness and

partnership development and these are covered in

some detail.

Environmental policy

Etihad Airways is an important driver of economic

growth and diversification in Abu Dhabi.

While operating under a strict commercial mandate

from our shareholder, we recognise our responsibility

to the community and are committed to mitigate

the impact of our operations on the environment. To

achieve this Etihad Airways pledges to:

» Abide by all national and international

environmental legislation that applies to our

business;

18 Etihad Airways Corporate Social Responsibility Report 2011

» Put in place the measurement systems and working

procedures to allow us to track and modify our

environmental performance;

» Innovate to reduce our dependency on traditional

forms of energy and aviation fuel;

» Train our staff on the importance of environmental

protection in our business operations and on their

individual responsibilities; and

» Communicate and report openly and transparently

on our environmental performance to all our

stakeholders including employees, customers,

suppliers and partners.

We hold it as a fundamental principle that true

success requires the engagement and participation of

many different partners, within the markets in which

we operate and across the air travel industry as a

whole, and therefore aim to:

» Encourage collaborative action and play an active

role in industry debate on environmental issues; and

» Work with industry bodies such as the International

Civil Aviation Organization (ICAO), the International

Air Transport Association (IATA), the Arab Air Carriers

Organisation (AACO) and with local government and

non-government partners on identifying issues and

developing common solutions.

The environment is a joint responsibility and every

member of our workforce has a duty of care to

uphold this policy, limit their individual impact on

the environment and actively work to mitigate the

potential impacts of our business on the environment.

Data collection and materiality

We continue to monitor and measure the

environmental performance associated with our key

operations and activities. Our efforts are focused on

those activities that are most material, notably:

» those activities or operations that are covered by

environment related regulations;

» those that make the largest contribution to our

carbon footprint, both locally and globally; and

» those that may be of specific concern to certain

stakeholder groups.

We make use of several important reference

documents to ensure that we are appropriately

identifying key issues, including the Greenhouse Gas

Protocol, and, for reporting purposes, the Global

Reporting Initiative.

Non compliance

Etihad Airways complies with all relevant environment

related legislation and regulations.

We make use of several important reference documents to ensure

that we are appropriately identifying key issues, including the

Greenhouse Gas Protocol, and, for reporting purposes, the Global

Reporting Initiative Guidelines.


Our challenges

Decarbonising the aviation industry

Whilst our environmental strategy is diverse, covering

all potential environmental concerns both in the air

and on the ground, the efforts to reduce our reliance

on fossil fuel are at the forefront.

The industry four-pillar strategy remains valid and

essential in engaging the broad range of industry

stakeholders and looking at all potential opportunities

to decouple aviation growth and carbon emissions is

a priority.

Whilst aircraft development and operational controls

to improve efficiency continue, there is increasing

emphasis on alternative sustainable fuels as a way to

decarbonise the industry. Several technologies have

been approved to create aviation fuel from non-fossil

fuel based feedstock and a number of airlines are

using these alternative fuels on a limited commercial

basis.

Aviation has a distinct advantage over road

transportation in having far fewer distribution points.

For example in Abu Dhabi there are about 200

petrol stations, whereas Abu Dhabi airport provides

for almost all the fuel needs of the airlines out of

the Emirate of Abu Dhabi. This means that if the

challenges of supply, refining capability and cost

parity can be addressed, the use of biofuels has

the potential to make a significant contribution to

decarbonising the aviation industry. We believe that,

given the limitations on other forms of technical

innovation in the short- and medium-term, sustainable

alternative fuels should be a priority for the aviation

industry.

Waste and materials management

With the carriage of 8.3 million passengers in 2011,

the production of significant quantities of waste

is inevitable. In this area, most of the focus is on

minimising resource utilisation and the reduction

of final waste material. This includes the careful

measurement of food requirements and preferences;

cutting down on single-use items and using products

that can be collected and cleaned for re-use.

On the ground, we work closely with our catering

providers and equipment and product suppliers

in reducing consumption and looking at ways to

minimise unnecessary items which will end up as

waste.

Recycling continues across our main commercial

facilities and key residential complexes. We will look

to expand on this, both by extending the practice and

encouraging and educating our staff.

The industry four-pillar strategy remains valid and essential in engaging the broad

range of industry stakeholders and looking at all potential opportunities to decouple

aviation growth and carbon emissions is a priority.

Effective engagement and messaging

In 2011 we extended the scope and range of our

stakeholder engagement to communicate our

messages more effectively. An environmental

awareness session for all our new ground staff is part

of their three-day induction program. Etihad Airways

also participates in global environmental events such

as World Environment Day and Paperless Day, while

continuing to engage extensively within the industry

in a range of activities and initiatives.

Aircraft emissions management

The current contribution to man-made carbon dioxide

emissions by air transport is two per cent, and the

Intergovernmental Panel on Climate Change (IPCC)

estimates that this could rise to three per cent by

2050.

The emissions management strategy of the industry

is based around rigorous initiatives to reduce fuel

burn under the industry inspired ‘Four Pillar’ strategy;

technology innovation, operational efficiency,

improvements in infrastructure and market based

mechanisms.

Driven largely by fuel costs, substantive improvements

are being made in the way our aircraft are designed

and built, the way in which they are flown; and

by updating and modifying ground infrastructure

including airport procedures, airspace modifications

and the removal of unnecessary ground infrastructure

restrictions.

Globally these have achieved incremental efficiency

improvements across the industry.

AVIATION IN PERSPECTIVE

20 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 21

2% of Global

CO2 emissions

12% of Transport

CO2 emissions


Our carbon footprint

The carbon footprint is the total amount

of carbon dioxide emissions or equivalent

associated with our activities. As our

operations and activities are geographically

widespread, and to ensure we focus on

those that we can influence and reduce, we

measure and set improvements on those

that are considered material. At present the

focus is on our core aircraft operations, the

operations of our 43 ground vehicles and the

operations at our key office facilities.

Our carbon footprinting has developed

in alignment with the Greenhouse Gas

Protocol. The Protocol covers three types of

emissions, defined under Scope 1, Scope 2

and Scope 3

Scope 1 - Direct emissions from burning

fossil fuel, such as jet fuel, gasoline and

diesel.

Scope 2 - Indirect emissions such as those

associated with energy requirements in

the production of electricity, potable water

through the desalination process and chilled

water for air conditioning.

Scope 3 – Emissions from other sources,

including waste disposal.

The focus in 2011 was on Scope 1 emissions

and Scope 2 emissions generated at the

largest ground facilities within the UAE. In

future years we will look to expand these

and include other areas of our business that

are considered material and that we are able

to influence in terms of improvement.

Scope 1

Total

Usage

Unit

Conversion

Factor

Tonnes of

Carbon

Dioxide

% of

Total

Aircraft 1,722,842 tonnes 3.15tCO2/tfuel 5,426,954 99.74

Ground Vehicle (Petrol) 190,340 Litre 2.3kgCO2/litre 438 0.01

Ground Vehicle (Diesel) 1,932,795 Litre 2.7kgCO2/litre 5,219 0.1

Scope 2

EY Complex Electricity 1,501,981 kWh

EY Plaza Electricity 675,813 kWh

EY Complex District

Cooling Water

EY Plaza District Cooling

Water

(including residential

areas)

EY Complex potable

water

EY Plaza Offices potable

water

Scope 3

4,239,162 tonnes/hr

3,009,064 tonnes/hr

74,202 m 3

2,481 m 3

Waste to Landfill 728,700 kg

0.700 kgCO2/

kWh

0.700 kgCO2/

kWh

0.674 kgCO2/

tonnes/hr

0.674 kgCO2/

tonnes/hr

15kg CO2/m 3

1,051 0.02

473 0.01

2,857 0.05

2,028 0.04

1,113 0.02

15kg CO2/m3 37 0

1.000 tonnes/

CO2

729 0.01

Total CO2 emissions 5,440,899 100

The global industry commitment

The aviation industry has improved its

fuel efficiency by 70 per cent over the

last 40 years.

Pressure placed on the industry due to

climate change concerns, fuel prices,

carbon regulations and the perception of

the industry’s ‘do nothing’ attitude, has

reinforced the need to be much more

proactive, about global strategy and

action.

The industry has come together in a way

unique to aviation in forging a set of

collective industry goals, namely:

» an average annual fuel efficiency

improvement of 1.5 per cent annually

to 2020;

» the stabilisation of net CO2 emissions

levels (‘carbon neutral growth’) from

2020; and

» a 50 per cent reduction in net carbon

dioxide emissions compared to 2005.

Etihad Airways is fully supportive of this

industry-wide commitment.

The aviation industry has come together, unlike

any other industry, to agree on quantitative

emissions reduction goals.

EN1, EN3, EN4, EN8, EN16

22 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 23


Our actions

The environmental strategy is the responsibility of

the Head of Environmental Affairs at Etihad Airways.

Through communication and consultation across

all business units the strategy is developed into a

comprehensive environmental plan and from these

tangible meaningful actions are taken.

Initiatives to improve fuel efficiency are extensive

and the environment office ensures that these are

measured not only in terms of fuel and financial

benefits, but also the resulting reduction in associated

carbon emissions.

Investment

Greener engines

In 2011 Etihad Airways began an engine upgrade

program for more than half the Airbus A330 fleet.

Scheduled to last two years, the program will see 15

of the airline’s A330 aircraft with Trent 700 engines

being retrofitted with enhanced performance kits,

resulting in significant improvement to the overall

efficiency of the aircraft. It is estimated that the

modification process will save more than 3,000

tonnes of fuel and reduce our carbon footprint by

more than 10,000 tonnes per year.

Lighter cargo containers

Etihad Airways, along with its cargo container partner,

Jettainer, embarked on a program in 2011 to replace

3,000 of the original aluminium containers with

environmentally-friendly lightweight versions.

The new lightweight containers are manufactured

from a range of composite materials including Kevlar,

the material used in making bullet-proof jackets.

This composite is tougher and much lighter with an

average weight saving of 17kg per container or over

200kgs per average wide-bodied flight. This significant

24 Etihad Airways Corporate Social Responsibility Report 2011

weight reduction will lower fuel consumption,

costs and CO2 emissions. It is estimated that the

implementation of the new containers will cut

emissions by approximately 5,000 tonnes in 2012.

Collaboration and innovation

Green flights

At a time when fuel costs remain high and there is

pressure on the industry to take action to reduce

emissions, Etihad Airways has embarked on a number

of multi-stakeholder initiatives to enhance flight

operations.

In July 2011, we worked with the various stakeholders

engaged in the ‘INSPIRE’ program. This ‘Indian Ocean

Strategic Partnership to Reduce Emissions‘ investigates

aspects of flight and identifies opportunities for

fuel saving and emissions reductions. All the stated

aims of INSPIRE partners, which include airports,

air navigation service providers and civil aviation

authorities, include accelerating the development and

implementation of operational procedures to reduce

the aviation industry’s carbon footprint, capitalising

on existing technologies and best practice, and

developing shared performance metrics.

The Etihad Airways flight from Abu Dhabi to Sydney

in July 2011 resulted in savings of more than 15

tonnes of carbon dioxide emissions. This is a clear

demonstration of the massive savings in emissions

that can be achieved if airlines are able to make more

effective use of the on-board computerised systems for

calculating the most efficient routes based on current

weather conditions; and the removal of airspace

restrictions, many of which simply require political

will.

If similar savings were possible just once each week

for flights between Abu Dhabi and Australia, we

conservatively estimate a saving of 350 tonnes of fuel

annually based on our current frequency. This would

represent a reduction of more than 1,100 tonnes of

carbon dioxide.

Etihad Airways strongly advocates industry

modernisation that will allow aircraft to fly within

their current capabilities. IATA estimates that global

emissions reductions of up to 12 per cent can be

achieved simply by improving and modernising

ground and airspace infrastructure and by allowing

more reliance on the aircraft systems to calculate

efficient flight paths.

Carbon offsetting

The Etihad Airways loyalty program had 1.3 million

members by the end of 2011, an increase of over

a third on the previous year. A carbon offsetting

program provides the opportunity for members to

donate their miles to carbon reduction projects

around the world. In 2011 the approximate equivalent

of AED 26,000 was donated as miles, offsetting

approximately 600 tonnes of carbon dioxide.

Three projects benefited from this offset. One in India

involves the switching of the fuel use for a paper

factory from furnace oil to ‘bagasse’ – a renewable

energy source using the pulp left after crushing

sugarcane to extract the juice. Projects in Uganda

and Cambodia involve upgrading of traditional lowefficiency

stoves with more efficient types.

Regulatory regimes

The most significant move towards regulating carbon

emissions from aviation has been through the

European Union Emissions Trading Scheme (EU ETS).

EN5, EN6, EN18

From 2012, airlines flying within, into and out of the

EU will have to account for their emissions and pay

for the right to emit carbon.

In 2011 Etihad Airways received notification of its

entitlement of free carbon allowances. The remainder

will need to be purchased on the carbon market or

through auction. The financial exposure on this is

likely to be significant, and heavily influenced by

fluctuating carbon prices and the growth of our traffic

into Europe.

Etihad Airways’ position on emissions trading

Our position on emissions trading can be summarised

under the following points:

» While recognising emissions trading as one of a

range of potential market-based measures in a many

tiered approach to reducing carbon emissions, we

view the EU ETS and any other national or regional

emissions trading scheme, as counterproductive and

contrary to the terms of the Chicago Convention.

» The current EU ETS scheme penalises all airlines,

does not take account of investment by individual

airlines, and will undoubtedly reduce funds

available for further investment in new and

emerging technologies. In short, it will have the

effect of penalising growth without taking account of

direct investment in efficiency. The mechanism used

by the scheme in determining the industry cap and

distributing the free allowances effectively favours

established airlines over those with more ambitious

growth plans.

» No rules for the application of the scheme’s

financial proceeds by member countries have

been determined and there is no indication that they

will be invested in environmental programs.

» We fully support the overriding position of the

UAE to pursue a global ICAO-led scheme to address

climate change. We will therefore continue to

encourage ICAO to pursue with diligence its work

on the Assembly Resolution on Climate Change and

hope that its conclusions will make the EU ETS

redundant.

» We support the prioritisation by the UAE

government of measures that will result in a tangible

and quantifiable reduction of emissions, such as

those possible through infrastructure improvements

in ground and air traffic management and a

reduction in regional airspace inefficiencies. This

will undoubtedly require multi-stakeholder input

from airlines, airports, the military and neighbouring

states. Effectively managed actions could reduce fuel

wastage and emissions considerably.

» We strongly oppose measures that will impose

any additional financial burdens on airlines

without a corresponding and real reduction in

carbon emissions. We also believe that marketbased

measures should be used with caution, and

only as a last resort, when all possible operational

measures have been exhausted.

» Any measures directed at airlines should take

account of efficiency, and the considerable capital

investment involved in the acquisition of a modern,

fuel-efficient fleet. Those airlines with younger more

efficient fleets should be treated advantageously

over those with older aircraft/engines.

» Investments by airlines in environmental projects,

such as biofuel research, should be credited against

any market-based measures.

Etihad Airways Corporate Social Responsibility Report 2011 25


Measuring our efficiency

Fuel efficiency and emissions reduction

Fuel use and corresponding carbon dioxide

emissions increased in 2011 in line with fleet

expansion. Nevertheless we have been successful in

demonstrating year on year efficiency improvements.

As a result of continued efforts we improved the

efficiency of our passenger fleet by four per cent

on our 2010 performance. This adds up to an

improvement of 17 per cent between 2006 and 2011

which is more than double the industry target of 1.5

per cent per annum.

Nitrous oxide (NOx) emissions

A local pollutant, released during the fuel combustion

process, NOx emissions are regulated by ICAO,

through emissions standards for new engine types.

We are able to track emissions during the landing and

take-off (LTO) cycle at Abu Dhabi airport using the

ICAO engine emissions database.

The total NOx emissions increase as our fleet

expands and the number of flight events increases.

Nevertheless, since 2007 we have seen a 29 per

cent improvement in emissions per LTO. This can be

attributed to stricter NOx emissions controls in the

newer generation of aircraft engines.

Although the overall trend is positive, there was a

slight increase in NOx per LTO between 2010 and

2011, which is a reflection of the increase in the

proportion of the wide-bodied long haul aircraft being

utilised in 2011.

Fuel dumping

Passenger medical emergencies and technical issues

may require a flight to divert to an alternative airport.

If this occurs while the aircraft weight is still above

its maximum landing weight, mid air fuel dumping

may be required prior to landing. This procedure is

only performed if absolutely necessary and in 2011

this occurred only seven times, mainly as a result

of passenger illness requiring emergency medical

treatment.

Noise

Aircraft noise continues to affect local communities

around busy airports. Global regulations on aircraft

noise control are determined through ICAO which

sets noise restrictions on new engines as part of the

certification process. In addition, local regulations

may be placed on individual airports in terms of

restrictions on noisier aircraft and curfews. All Etihad

Airways aircraft are compliant with the most stringent

Chapter 4 noise standards imposed by ICAO. Etihad

Airways was not subject to any noise complaints or

infringements during 2011

TOTAL NOx (TONNES) kg NOx / LTO

1200

50

1000

45

40

800

35

600

30

400

25

20

200

15

0

10

2007 2008 2009 2010 2011

ALL AIRCRAFT (THOUSAND TONNES)

TOTAL FUEL CONSUMPTION g FUEL/100PK

2000

256

1800

254

1600

252

1400

250

1200

248

1000

800

246

600

244

400

242

200

240

0

2008 2009 2010 2011

238

CO2 EMISSIONS g CO2 / 100TK

6000

800

790

5000

780

4000

770

760

3000

750

740

2000

730

1000

720

710

0

700

2008 2009 2010 2011

PASSENGER AIRCRAFT (THOUSAND TONNES)

TOTAL FUEL CONSUMPTION g FUEL/100PK

1800

50

1600

45

1400

40

1200

35

1000

30

800

600

25

400

20

200

15

0

10

2006 2007 2008 2009 2010 2011

CO2 EMISSIONS g CO2 / 100TK

6000

160

5000

150

4000

140

3000

130

2000

120

1000

110

0

100

2006 2007 2008 2009 2010 2011

Etihad Airways has improved fuel efficiency on its passenger fleet by 17 per cent per

passenger kilometre between 2006 and 2011, more than double the 1.5 per cent per

annum industry target.

EN3. EN20. EN28

26 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 27


Driving the development of alternative, sustainable fuels

While the airline industry works tirelessly in looking

for opportunities to reduce its carbon footprint, the

growth of the industry, in line with global economic

and social demands, will inevitably drive the

continued net growth in emissions.

We recognise this and the role we can play in helping

to support the move towards viable sustainable

alternatives to regular fossil fuel as a major step

forward in decarbonising the industry.

The progression towards the acceptance and potential

use of biofuels in the aviation industry over the last

two to three years has been rapid with drivers such

as climate policies, carbon regulations and fears

around the cost and supply of fossil fuels leading

to a proliferation of global initiatives investigating

sustainable aviation alternatives and their commercial

feasibility.

It is evident that the only real opportunity for a step

change in technology will come through an alternative

fuel. However its development is not without

challenges and constraints.

» It will have to be a ‘drop in’ fuel with the same

specification as regular fuel with the required

certification.

» It will have to be cost competitive with regular fuel

and its total lifecycle impacts will have to be lower

than those of traditional fuel sources.

» Biomass and refining capacity will have to meet

the high global demand for aviation fuel which is

presently approximately 60 billion gallons per year.

» In the production of biofuel, sustainability and

ethical issues around competition with local food

and water resources and the social impacts of

biofuels must be taken into account.

28 Etihad Airways Corporate Social Responsibility Report 2011

Our commitment to using only fully sustainable fuels is

confirmed by our membership of the Sustainable Aviation

Fuel Users Group (SAFUG).

SAFUG consists of 23 international airlines, all committed

to enabling the commercialisation of sustainable alternatives

to aviation fuel. This independent airline group represents

approximately 20 per cent of the commercial global fuel

use and is focused on supporting and driving sustainability

principles in the development and commercialisation

of alternative fuels. New members are only admitted by

majority vote of existing members and are required to make

a formal application committed to driving the development

of biofuels and sign to the SAFUG sustainability pledge.

The pledge includes commitment to the following:

» The development of feedstock in a manner which

is non-competitive with food and where biodiversity

impacts are minimised. In addition, the cultivation

of plant-based feedstock sources should not

jeopardise drinking water supplies.

» Total lifecycle greenhouse gas emissions from plant

growth, harvesting, processing and end-use should

be significantly reduced compared to those

associated with jet fuels from fossil sources.

» In developing economies, development projects

should include provisions or outcomes that improve

socio-economic conditions for small-scale farmers

who rely on agriculture to feed their families, and

that do not require the involuntary displacement of

local populations.

» High conservation value areas and native eco-

systems should not be cleared and converted for jet

fuel plant source development.

EN6

We see the use of sustainable biofuels as a major positive step change for our industry

and we are proud to be involved with the Masdar Institute, Boeing and Honeywell’s UOP

on a project that makes use of the resources of this region and supports the sustainability

strategies of Abu Dhabi, including key research and development.”

The Sustainable Bioenergy Research

Consortium

Led by the Masdar Institute and funded by

Etihad Airways, Boeing, Honeywell’s UOP

and the Abu Dhabi Government, the project is

focused on the research and development of

biofuels in the region.

The flagship program of the consortium

is investigating and piloting an integrated

seawater energy agriculture energy system

(ISEAS) utilising both aquaculture and potential

feedstock.

The production of Salicornia – a saltwater

tolerant, oil producing halophyte – is part of

a system which includes the development of

commercial fish and shrimp farming along

marginal desert coastal areas.

The ISEAS makes provision for the nutrient-rich

effluent from the aquaculture system to be

directed to Salicornia plantations, providing

essential nutrients for the growth of these

shrub-like plants. The effluent undergoes

further biological treatment in mangrove

habitats which can themselves be harvested

and converted into electricity, as well as

providing a habitat for birds and coastal fish.

Initial small scale investigations into yield

and extensive desk top investigations have

been very positive, with studies indicating that

there may be some carbon positive benefits as

residual carbon becomes locked in the soils.

In 2012, the selection of a sizeable site will

allow for the pilot project to commence.

1

4

Pump seawater from the

ocean to ponds, where

fish and/or shrimp will

be farmed

Biomass from the halophytes

is used to produce bioenergy,

including biofuels

2

5

Aquaculture for

fish and shrimps

Water that drains from the

halophyte fields is fed into a

mangrove wetland

3

6

Waste water from the

aquaculture operation,

which is enriched in

nutrients, is used to irrigate

salt-tolerant biomass

(halophytes)

Biomass from the

mangroves can be

converted into bioenergy

Etihad Airways Sustainability Report 2011 29


Total CO2

emission

Petrol

(litres)

total

usage

Diesel

(litres)

total

usage

Ground emissions

Emissions from ground vehicles

Etihad Airways owns a fleet of 48 buses, ranging from

14-seater minibuses to 40-seater coaches. Their fuel

consumption is carefully monitored allowing for the

calculation of associated emissions.

In 2011, the utilisation of diesel vehicles increased

slightly compared to 2010 while there was a decrease

in the use of petrol driven buses. Overall this

resulted in a 14 per cent reduction in carbon dioxide

emissions.

2011 2010

ETIHAD CREW BUS FUEL CONSUMPTION

190,340

350,237

1,932,795

1,774,469

5,656,329

6,645,901

Emissions from our facilities

Our key office facilities, namely the Etihad Airways

headquarters, the Training Academy and Etihad Plaza

provide a work environment for approximately 44

per cent of our Abu Dhabi ground-based staff. The

headquarters, which includes the Training Academy,

is located close to Abu Dhabi International Airport,

adjacent to land that is considered to be of no

significant biodiversity value. Airline property is not

close to any ‘desert preservation’ areas designated in

the Abu Dhabi 2030 Plan.

The emissions associated with these facilities can be

calculated based on the data we collect for electricity

and water usage and the provision of centralised

cooling water.

As expected, the use of electricity and water increased

in these facilities in 2011 in line with the number of

staff using the facilities and as their use for meetings

and training purposes increased.

Despite its being the most resource intensive utility,

the level of district cooling required for our Etihad

complex and Etihad Plaza showed improvements

between 2010 and 2011. At the Complex and Plaza

the total cooling demands fell by three and eight per

cent respectively, saving the equivalent of 260 tonnes

of carbon dioxide.

These achievments were primarily as result of

improvements in the building management systems,

setting the thermostats to automatic, to work more

effectively as and when required.

Resource management

Resource savings

The use of copy paper in the offices is monitored and

staff are encouraged to send documents electronically

and avoid printing unnecessarily.

Various communication tools are used to drive these

messages to staff:

• As part of the ‘Marhaba’ induction training for all

new ground staff

• The Green Champions, who have representation in

most departments, are tasked with encouraging best

practice among their colleagues.

Reducing potable water

Potable, that is, fully treated, water in Abu Dhabi, is

primarily derived from desalinated seawater.

At our main facilities it is used for bathrooms,

canteens, cleaning purposes and for irrigation. In

2011 the water demand at both our main facilities,

the Etihad Complex and the Etihad Plaza, fell by nine

and nearly 16 per cent respectively.

These improvements are a reflection of our efforts to

be more careful in the use of water, and a result of

fewer maintenance activities which place additional

demands on water. 2011 also saw fewer instances of

problems with the water systems such as leakages and

pipe work problems.

In 2012, the launch of the company-wide water

savings campaign should drive further water saving

and an additional five per cent reduction target has

been set.

Waste collection and recycling

Paper, cardboard, cans and plastic bottles are

collected and placed in bins around offices and other

areas.

This initiative has been extended to our residential

facilities in Etihad Plaza, with the provision of

collection bins close to every residential tower,

and clear communication to all residents about the

locations of these and the types of materials that can

be segregated.

We also support the Philippine Community Fund

(PCF), a non-sectarian not for profit organisation that

works in the most depressed areas of the Philippines

with communities who are unable to provide their

own basic needs. We encourage staff and individual to

support and collect ring pull tabs from canned drinks

and food tins.

Etihad Airways also supported a student from a nearby

school in an independent initiative to recycle inkjet

printer cartridges in support of the British Guide Dog

Association.

Waste material from offices, the canteen and from

facilities and maintenance management continues to

be monitored.

The airline made significant improvements in the

amount of paper and cardboard that was segregated

for recycling in 2011. This is reflected in a slight

decrease of 3,150 kilograms in waste being taken to

landfill from our head quarters and office facilities.

ETIHAD COMPLEX

ELECTRICITY CONSUMPTION

(Total KwH)

EN2, EN3, EN4, EN5, EN7

EN1, EN8, EN9

30 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 31

2011

2010

2011

2010

2011

2010

2011

2010

2011

2010

1,501,981

1,408,867

ETIHAD COMPLEX

DISTRICT COOLING

(Total Cooling Tonne/hr)

4,239,162

4,358,315

ETIHAD COMPLEX

WATER CONSUMPTION

(Total cubic metres)

74,202

81,560

ETIHAD COMPLEX

WASTE GENERATION

(Total kg)

728,700

731,850

ETIHAD COMPLEX

OFFICE PAPER

CONSUMPTION (Reams)

18,725

21,450

2011

2010

2011

2010

2011

2010

2010

2011

2010

ETIHAD PLAZA (OFFICES)

ELECTRICITY CONSUMPTION

(Total KwH)

675,813

660,359

ETIHAD PLAZA

DISTRICT COOLING

(Total Cooling Tonne/hr)

3,009,064

3,274,599

ETIHAD PLAZA

WATER CONSUMPTION

(Total cubic metres)

2481

2946

ETIHAD PLAZA

WASTE GENERATION

(Total kg)

17,300

24,775

ETIHAD PLAZA

OFFICE PAPER

CONSUMPTION (Reams)

3,428

3,296


Staff engagement

Green Champions

Etihad Green Champions are staff volunteers

who help to support the office greening and drive

behaviour change by educating staff in best practice.

Recycling, using office resources wisely, switching off

office equipment and lighting when not needed, are

examples of actions encouraged among our staff.

Earth Hour

Earth Hour in the UAE was marked on March

26, 2011 between 8.30pm and 9.30 pm. This

international event, started in Australia in 2007, has

gained increasing global recognition and support as

a way of driving awareness when it comes to energy

saving.

We supported Earth Hour by promoting the event,

encouraging staff support and by turning off the lights

across our major facilities in Abu Dhabi.

Building on this initiative, we participated in a

joint activity ‘Going Beyond Green’ with the Abu

Dhabi Airports Company (ADAC). This included

an inspirational presentation from HH Sheik Abdul

Aziz bin Ali Al Nuaimi of the ruling family of Ajman,

popularly known as the “Green Sheikh” for his ecofriendly

initiatives.

Kid’s art competition

We partnered with ADAC in a children’s art

competition. We invited children between the ages of

two and 12 to submit entries using recycled materials

The theme of the competition was Saving Planet

Earth. The overall winners won a fantastic Etihad flight

simulator experience.

Green Room

2011 saw the official opening of the Etihad ‘Green

Room’. Located in the Etihad Training Academy,

the room is a showcase for environmental best

practice and eco-technology and a venue to raise

environmental awareness.

World Environment Day

Etihad Airways celebrated World Environment Day in

June as part of the airline’s environmental awareness

program.World Environment Day is the most widely

supported annual event aimed at promoting positive

environmental action.

The environment team arranged a number of activities

including earth meditation sessions, the sale of

eco-friendly products, documentary screenings and

presentations.

Our efforts rewarded

In November 2011, Etihad Airways was honoured for

its commitment to the environment at China’s 2011

Top Travel magazine awards.

The prestigious Environmental Contribution of the

Year Award is given annually to travel companies for

demonstrating global leadership in corporate social

responsibility.

The award was made in recognition of the

introduction of ‘Permagard’, a polymer coating

applied to the exterior of our entire fleet of aircraft.

The Permagard treatment provides protection to

the aircraft surface, reflecting dirt and dust from the

surface, so aircraft need to be washed less often.

The treatment also eliminates the need for strong

cleaning agents, which can be replaced by more

environmentally friendly alternatives.

This has resulted in significant savings in washing

water and cleaning fluids - 10 million litres of water

a year, as well as a 96 per cent reduction in cleaning

fluid, from 50,000 litres to just 2,000 - as well as

improvements in fuel efficiency from reduced drag on

aircraft.

32 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 33


Goals and targets

Our 2011 targets

Several targets were set in 2010 for 2011.

Some of these targets were met and our efforts were particularly rewarded with a

nine per cent reduction in water consumption and a 45 per cent increase in the

amount of wastepaper and cardboard collected for recycling.

However, some of our targets were not met. We set a five per cent reduction target

for our energy consumption in Etihad Complex and in our offices at Etihad Plaza.

However, the electricity demand in these facilities increased during 2011 by seven

and two per cent respectively. This was primarily due to the more intensive use of

the facilities, particularly our crew training areas. Plans for building improvement

projects in 2012 should allow for efficiency improvements in 2012.

Reduction targets Outcome

Five per cent reduction in potable water consumption

at Etihad Complex

Five per cent reduction in energy consumption TARGET NOT MET

Etihad Complex

Etihad Plaza offices

10 per cent reduction in the volume of waste to landfill

from Etihad Complex

10 per cent improvement in waste segregation and

recycling in Etihad Complex

TARGET EXCEEDED

Nine per cent reduction in consumption

in 2011 versus 2010

Seven per cent increase in consumption

in 2011 on 2010

Two per cent increase in consumption in

2011 on 2010

TARGET NOT MET

0.4 per cent reduction in volume of

waste to landfill in 2011 on 2010

TARGET EXCEEDED

45 per cent more material segregated

and sent for recycling in 2011 on 2010

10 per cent reduction in copy paper use in TARGET NOT MET

Etihad Headquarter (HQ)

Etihad Training Academy (TA)

Etihad Plaza offices

four per cent reduction in copy paper

use in 2011 on 2010

Three per cent increase in copy paper

use in 2011 on 2010

Four per cent increase in copy paper use

in 2011 on 2010

District cooling No target set for 2011

Etihad Complex

Etihad Plaza offices

Three per cent reduction in district cooling

needs in 2011 on 2010

Eight per cent reduction in district cooling

needs in 2011 on 2010

Our 2012 targets

The main focus for 2012 is to drive down electricity consumption in our ground

facilities, identify ways and means to reduce the volume of waste going to landfill

and to use the 2012 water saving campaign to reduce dependence on fresh water

both in our offices and facilities and in the daily lives of our staff.

Unlike last year, we will also set a target for our cooling water consumption.

While we achieved improvement in this area from 2010 to 2011 (three per cent

and eight per cent respectively at Etihad Complex and Etihad Plaza), the facilities

management team will be looking at the feasibility of further improving the

efficiency of the air cooling units. Signifigant upgrading of the water distribution

systems within Etihad Airways facilities should result in fewer instances of broken

pipeworks and leaks.

Reduction targets Action plan

Five per cent reduction in potable water consumption at

Etihad Complex compared to 2011

Five per cent reduction in energy consumption at Etihad

Complex and the Etihad Plaza offices compared to

2011

Five per cent reduction in cooling water requirements at

Etihad Complex compared to 2011

10 per cent reduction in the volume of waste to landfill

from Etihad Complex compared to 2011

10 per cent improvement in waste segregation and

recycling in Etihad Complex compared to 2011

10 per cent reduction in copy paper use in both Etihad

Complex and Etihad Plaza offices compared to 2011

The 2012 water saving campaign will

promote water saving among staff.

Feasibility studies on using drainage

water from air handling and fan cool

condensate for irrigation may lead to

implementation of this initiative in 2012.

A switch to energy saving lighting

Improvements in the building management

systems will enable a more effective

and efficient scheduling system for

lighting and air conditioning systems.

More comprehensive cleaning and

maintenance of air conditioning

systems.

Improvements to building management

system.

A waste composition assessment will

allow a comprehensive plan which

reflects reduction opportunities.

Additional materials for recycling will

be identified.

Continued education and awareness

raising for office and cleaning staff

Changing of the printer setting to default

double sided.

Education and awareness raising and

communication to office staff by the

Green Champions.

Summary

Units 2011 2010

Aircraft Operation Metrics

Total Passenger Kilometers (PK) 40,020,920,494 34,516,523,826

Freight Tonne Kilomters (FTK) 2,245,587,824 2,212,751,786

Total Tonne Kilometer (TK)

Fuel Consumption

7,048,098,283 6,354,734,645

Total Consumption tonnes 1,722,842 1,548,638

Fuel consumption (passenger flights only) tonnes 1,561,426 1,429,848

Fuel consumption (Cargo)

Carbon Dioxide Emissions

tonnes 161,416 118,789

Total CO2 emission (pax & cargo) tonnes of CO2/kg 5,427 4,878

CO2 per RPK (passenger only) gCO2/100 PK 123 130

CO2 per TK gCO2/100 TK 770 768

% of improvement in CO2/RPK (Since 2006) CO2/RPK 17.25% 12.13%

% of improvement in CO2/TK (Since 2008) CO2/TK 3.52% 3.82%

Total NOx emission during LTO kg 974,575 843,569

NOx emission per LTO kg 33 32

CO emission per LTO

Fuel Ground Vehicle

kg 14 13

Petrol Liters 190,340 350,237

Diesel

Energy

Liters 1,932,795 1,774,469

Etihad Headquarter & Training Academy

Etihad Plaza (Offices and Common Area)

District Cooling

kWh

1,501,981

675,813

1,408,867

660,359

Etihad Headquarter & Training Academy

Etihad Plaza (Including residential areas)

Water

tonnes/hour

4,239,162

3,009,064

4,358,315

3,274,599

Etihad Headquarter & Training Academy

m3 Etihad Plaza (Offices and Common Area)

Waste

74,202

2,481

81,560

2,946

Paper and Cardboard recycled kg 24,775 17,300

Printer Cartridges recycled pcs 206 549

Aluminium (cans) recycled kg 0 240

Plastic (bottles) recycled kg 10 90

Etihad Complex General Waste kg 728,700 731,850

EN1, EN2, EN3, EN4, EN8, EN16, EN20, EN22

34 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 35


Driving economic growth in Abu Dhabi

Aviation is a critical cluster industry within the Abu

Dhabi Government’s 2030 Plan, in which a successful

airline and airport are recognised as fundamental

drivers of successful free-market commercial activity

and vital to underpin a diverse economy in the global

arena.

According to the latest study, completed in April 2011

by leading UK think tank, Oxford Economics, Etihad

Airways plays a crucial role in supporting and driving

economic growth in the UAE.

The research used the standard methodology for

economic impact appraisals, and was based on data

from the International Airline Transport Association

(IATA), the Air Transport Action Group (ATAG),

EUROCONTROL, the UK aviation industry, and the

Civil Aviation Authority of Singapore (CAAS).

Economic contribution is classified into four key

areas: direct (within Etihad Airways), indirect

(suppliers to Etihad Airways), induced (spending of

direct and indirect employees) and catalytic (impacts

on other industries).

Creating wealth, creating jobs

Direct economic contribution: The airline contributed

US$1.46 billion (2.1 per cent) of Abu Dhabi’s non-oil

GDP (or 0.8 per cent of total GDP) in 2011, and

helped to generate and support nearly 104,000 nonoil

jobs throughout the Emirate.

Our procurement policy guides the cost efficient

and transparent purchasing of goods and services

and provides a standard framework for governance

to create value and mitigate risk to Etihad Airways.

While the use of local suppliers is always preferred,

they are selected only where they are able to provide

a service and/or product that is equivalent or superior

to an external supplier based on the evaluation

criteria specified in the supplier selection and tender

process, which includes, but is not limited to price,

quality, and experience.

Indirect economic contribution: Etihad Airways made

an indirect economic contribution of US$830 million

and supported an additional 15,000 jobs in 2011

through fuel purchases, maintenance and repair,

airport rental and landing fees, marketing, advertising,

IT ventures and communications.

Induced economic contribution: An induced GDP

contribution of US$760 million and 13,839 additional

jobs can be attributed to money spent during 2011 by

people working for Etihad Airways and its suppliers.

Catalytic economic contribution: Etihad Airways

played an important role in improving air links

between Abu Dhabi and the rest of the global

economy, and the airline’s expanding network was

a key factor in encouraging businesses to invest in

the Emirate and the UAE. These activities provided

a catalytic economic contribution of nearly US$4

billion, representing 5.3 per cent of the Abu Dhabi’s

non-oil GDP (2.1 per cent), and supported nearly

68,000 jobs.

Etihad Airways was also a key contributor to the

development and growth of tourism in the UAE.

In 2011 the airline carried 8.3 million passengers

through its hub in Abu Dhabi. In 2012 this figure is set

to increase to 10 million passengers.

Based on the airline’s current growth projections,

Etihad Airways’ total economic contribution to Abu

Dhabi’s GDP is on track to increase by 76 per cent

to US$10.743 billion by 2015, helping to support

162,000 jobs in the Emirate.

Building a national workforce

A key imperative for Abu Dhabi is the development

of long term strategic initiatives aimed at empowering

its national workforce, motivating young people,

equipping them with the right workplace skills and

enabling them to fulfill their potential and sustainably

power the national economy in the long term.

One of our primary contributions to the local

economy is through our Emiratisation program,

which is a key business imperative mandated by

the Board and fundamental to our human resources

strategy. Ensuring that we attract and develop Emirati

nationals to support our future growth, we adopted an

integrated approach.

Source - aligning business requirements with

community needs;

Develop - aligning learning interventions with

business and individual needs;

Engage - fostering a conducive working environment;

and

Deliver - sustainably embedding Emirati talent at all

levels within our workforce.

Aviation is a critical cluster industry within the Abu Dhabi government’s

2030 Plan, in which a successful airline and airport are recognised as

fundamental drivers of successful free-market commercial activity and

vital to underpin a diverse economy in the global arena.

36 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 37


Since the commencement of the Emiratisation

program in 2007, we have invested a significant

amount in the three main streams of the Emiratisation

endeavour; the cadet pilot program, the graduate

management development program, and the trainee

engineering apprenticeship scheme. A total of 140

Emirati nationals have graduated from the programs

since their inception. (See also Working Together)

In the four years since inception, the number of

nationals within our workforce has grown from four

per cent in 2007 to 21 per cent (excluding cabin crew

and outstations) by the end of 2011, representing an

impressive 98 per cent year-on-year increase.

Local innovation through partnership

Environmental performance and action to benefit

the local community are intrinsically linked. Our

‘Together’ strategy ensures that anything we do,

or support, adds value to local communities. Our

engagement in research into feedstock for biofuel

in Abu Dhabi with the Masdar Institute is a perfect

example of this. The ‘integrated seawater energy

agriculture system’ will create long-term value for

local communities through the development of an

economically viable aquaculture industry, creating

work and prosperity in the less developed areas of the

Emirate. For the aviation industry a potentially viable

alternative to fossil fuel for this region is an exciting

prospect.

Supporting the community

Despite the broader commercial imperative at the

macro level of the country’s economy, we also

participate in several projects and initiatives which

positively and more directly impact and improve the

lives of people in the local community.

Sponsorship

Etihad Airways is proud to support a range of sporting

and cultural events in the United Arab Emirates and

worldwide. These sponsorships are consistent with the

airline’s values of hospitality, team spirit, and helping

bring Abu Dhabi to the world.

Our major sponsorships include the Formula 1 Etihad

Airways Abu Dhabi Grand Prix, Manchester City

Football Club, Etihad Stadium in Melbourne, Sport

Australia Hall of Fame, GAA Hurling All Ireland

Senior Championship, Harlequins Rugby Football

Club and V8 Supercars Australia.

We work with our sports partners to develop Emirati

sporting talent and support grass roots sport in the

UAE in various community program properties

including the F1 in Schools Program in conjunction

with Mubadala; the Etihad Manchester City Soccer

School Program reaching over 2000 children; the

Etihad Harlequins Rugby Schools Program and Clinic,

which in the last six years has reached over 3,000

children from schools in Abu Dhabi.

In 2011, Etihad Airways also supported several key

international conferences, notably the Eye on Earth

Summit and the Women in Leadership Conference

held in Abu Dhabi.

Etihad Airways celebrated the 40th anniversary of the

UAE’s National Day with a fly past across the seven

emirates, in addition to sponsoring several other staff,

community and sporting activities in Abu Dhabi.

2011 was designated as the ‘Year of Abu Dhabi’ to

coincide with the launch of ‘essential abu dhabi’,

a campaign to enhance Abu Dhabi’s standing as a

top tourist and MICE destination through a range of

promotional activities organised with major tourism

operators in the Emirate.

Etihad Airways unveiled a special “Visit Abu Dhabi in

2011” livery on an Airbus A330-300 aircraft, which

took off for a celebratory flight across the United Arab

Emirates, with a group of special needs children from

Zayed Higher Organization for Humanitarian Care

and Special Needs, to take in some of the country’s

top landmarks.

We also sponsored flights to Paris for a group

of scholars from Zayed Higher Organization for

Humanitarian Care and Special Needs for an

educational visit and provided tickets to support the

Future Centre in Abu Dhabi.

UAE women – the core of the community

In 2011, as an extension of our Emiratisation program,

we opened a new call centre staffed entirely by

Emirati women from Al Ain, the second largest city

in the Emirate of Abu Dhabi and the fourth largest

in the UAE with a population of 374,000 (2009).

The complement of 80 staff includes the manager,

seven team leaders, five quality executives and 67

agents. It has capacity to grow from its present size

to accommodate 200 staff as the requirements of the

business dictate.

The staff underwent a comprehensive six-month

training program to equip them fully for employment.

Courses covered soft skills, reservations systems

knowledge and English language essentials.

In addition to empowering a previously excluded

sector of the local community, the centre will

enhance the prosperity of Al Ain, providing a second

income for many families and contributing directly

and indirectly to economic growth and development

in the UAE.

A unique collaboration with Sougha, a Khalifa Fund

initiative, is working with women in the Western

Region, to preserve traditional crafts in a range of

modern products that are included in the duty free

selection onboard Etihad Airways flights.

This project supports the economic inclusion and

development of an otherwise marginalised rural

community, the enhancement and creation of working

opportunities for women, and the Emirate’s overall

goal of economic diversification.

In October we marked breast cancer awareness

month by sponsoring a campaign in the community

to raise awareness of the disease and importance of

early detection, offering free screening and education

in collaboration with Lifeline Mobile Clinic in the city

and other locations in the Emirate. We also sponsored

Pink Polo at the Ghantoot Racing and Polo Club.

EN5, EN18

38 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 39


Our workforce

Etihad Airways recognises the value of a talented

and diverse workforce, and is committed to valuing

and promoting diversity in all areas of recruitment,

employment, training and promotion. Etihad Airways

will work towards an environment that is based on

meritocracy and inclusiveness, where all employees

can develop their full potential irrespective of their

race, gender, marital status, language, age, disability,

religious belief, socio-economic status, thinking styles,

experience and education.

At the end of 2011, our total workforce comprised

9,038 employees, 7,672 of whom were based in Abu

Dhabi with 1,366 located in 46 countries across our

network. Of the total number of employees, 1,185 are

pilots and 3,230 are cabin crew. There is a 48 to 52 per

cent ratio of women to men.

Nearly all employees, (99.93 per cent) within the

organisation are full time employees, with only a very

small number of external consultants, (just 0.07 per

cent of the total workforce), being retained on part time

or temporary employment contracts.

Location Headcount %

Outstations 1,366 15.11%

UAE 7,672 84.89%

Grand Total 9,038

Gender Headcount %

Female 4,374 48.40%

Male 4,664 51.60%

Grand Total 9,038

Age Group Headcount


Currently in training

We have a continuous focus on building aviation

specific capability through training programs:

As the national airline of the UAE, Etihad Airways will

continue to create opportunities in every part of its

business to attract, develop and retain talented and

committed UAE nationals. Ultimately the Emiratis from

the various program will be empowered and developed

to meet its future needs.

Learning and development

In 2011, the learning and development function

designed and delivered several new learning

interventions aligned with business requirements to

enhance organisational performance.

2000

1500

1000

500

0

JANUARY - DECEMBER 2011 COMPARATIVE ANALYSIS

COURSES VS TRAINEES

JAN

Trainees currently in

training

Cadet

Pilots

Second

Officers

State-of-the-art Academy resources include:

− 32 classrooms

− 1 auditorium (seating approx 120)

− 4 flight simulators (1 x B777, 1 x A320,

2 x A330/340)

− 1 Cabin Emergency Evacuation Trainer

− 1 real Fire Fighting Trainer

− 4 door trainers (Airbus & Boeing)

− 6 computer-based training rooms

The Etihad Academy, now accredited by IATA,

delivered almost 1,300 classroom-based courses to

more than 12,700 participants in 2011. Core Etihad

employees based in head office underwent an average

of two hours training, with cabin crew averaging six

hours of training for the year.

Trainee

Engineers

Total 1,391 courses and 13,915 trainees

Average trainees/month=1,159

Average number of courses/month=115

Courses Trainees

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Graduate

Managers

Airport

Managers

Trainees 159 63 84 101 10 417

Males 152 60 76 44 9 341

Females 7 3 8 57 1 76

Total Trainees

Our adoption of on-line learning proved to be very

successful with a 500 per cent increase in on-line

learning courses, an effective training solution for a

global and mobile workforce which also delivers cost

advantages to the airline. The shift to on-line learning

delivery enabled a cost avoidance of AED10 million in

2011.

Competitive benefits

In addition to very competitive remuneration packages,

UAE based staff receive an end of service benefit in

line with UAE labour legislation based on the years

of service. Outside the UAE, payments to government

pension plans are made in line with local labour

legislation.

Our fulltime employees enjoy a wide range of

benefits, including accommodation assistance, sports

and recreational facilities, educational assistance to

managerial staff, discounted air travel and cargo as well

as access to medical care and medical insurance.

Performance management

At the end of 2010 Etihad employees completed

their first full year cycle in the new performance

management system ‘iachieve.’ One hundred per cent

of employees completed an end of year performance

review in the first quarter of 2011 and the first

performance-based pay increases were applied in

April 2011. In tandem with this significant change, the

company grading structure was redesigned with the

introduction of job levels and a reduced number of

grades while the number of job titles in the organisation

was also reduced by over 30 per cent and a standard

job title protocol introduced. Both these changes were

key initiatives in reducing complexity and bureaucracy

in organisation design. Further reinforcing the link

between performance and reward, global incentive

schemes were introduced in the Sales and Cargo

divisions. The focus on ongoing dialogue between the

employee and the manager continued through 2011

with almost 100 per cent of employees completing a

formal end of year performance discussion.

We are committed to fairness in the workplace

and recognise that a diverse workforce allows us

to serve our stakeholders most effectively.

LA10, LA11, LA12

42 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 43


A positive workplace A safe workplace

We are committed to fairness in the workplace and

recognise that a diverse workforce allows us to serve

our stakeholders most effectively. We do not tolerate

any form of discrimination or harassment directed at

any individual or group on the basis of race, colour,

religion, sex, national origin, citizenship, creed, age,

marital or family status or disability.

This in entrenched in our code of conduct and noncompliance

is subject to disciplinary action.

A healthy workplace - medical and employee

wellbeing services

Since opening its doors in 2010, the Etihad Airways

Medical Centre has provided essential medical

services to cabin crew and pilots. As services are

regulated by both the Health Authority of Abu Dhabi

and the General Civil Aviation Authority there is a

natural emphasis on compliance with regulations and

standards.

During 2011 our emphasis changed from not just

achieving compliance but to achieving excellence.

This was a necessary step in order to meet the needs

of Etihad Airways. To achieve this objective medical

services were restructured into distinct specialties:

Aviation, General and Occupational medicine.

As access to services is critical for airline staff with

variable and busy schedules, the Etihad Airways

Medical Centre re-engineered internal business

processes to provide flexibility and increase the

number of available appointment slots, reduce waiting

times and improve the service flow through the centre.

In the next phase, opening hours will be extended

and the capacity of the centre increased by providing

additional consultation rooms so that a broader range

of services can be provided for more staff and their

families.

Recognising that prevention is better than a cure,

and that a healthy workforce is happier and more

productive, the Medical Centre partnered with the

CSR team in a series of highly successful campaigns,

including a breast cancer screening program,

wellbeing days and a flu vaccination program. The

Centre also encourages health and wellbeing in the

staff newspaper, Etihad News, and promotes fitness

and wellbeing through the Fit2Fly exercise programs

at gyms and state-of-the-art sports facilities in five

locations.

Etihad Airways is committed to supporting healthy

lifestyles through its modern, dynamic gyms, rapidly

expanding healthcare facilities and health education

and promotion activities.

An active community

The Etihad Sports and Social Committee is an

independent and self funded group voluntarily

constituted to promote sporting and social activities for

employees and their families in Abu Dhabi. Sporting

activities coordinated and promoted by the committee

at tournaments and friendly club fixtures include

football, squash, basketball, bowling, cricket, tennis

and junior football.

Safety is Etihad Airways’ top priority. It lies at the heart

of our business and is a core value across the entire

organisation. The statement of commitment, policy and

procedures are outlined in the airline’s safety manual,

which supports the requirement for a company-wide

Safety Management System and helps to embed safety

in our working procedures and processes.

Safety Management System (SMS)

Etihad Airways’ Safety Management System (SMS) is a

comprehensive system designed to proactively manage

health, safety and general risks in the workplace.

Mapped to ISO 14001 and OHSAS 18001 standards

to ensure consistency with international best practice,

the proactive SMS risk management strategy and

tools provide a comprehensive and systematic way of

identifying risks across the organisation and controlling

and mitigating them to acceptable levels. It enables

goal setting, planning and measuring performance,

communication with staff, training, safety assurance

and safety culture and reporting.

During 2011, a 61 per cent reduction in risk for

identified hazards across all operational areas was

achieved

The SMS also involves the airline’s third party suppliers

and contractors, who are assessed and have to adhere

to the SMS requirements and procurement ratification

process.

Etihad Airways’ Safety Management System gained full

approval by the Abu Dhabi Department of Transport

and the Competent Department for Occupational

Safety and Health Abu Dhabi in September 2011.

Etihad Airways commenced formal reporting on health

and safety injury and lost days from that time, with

10 work-related injuries being recorded across the

organisation by year-end. This resulted in two days’ lost

time. There were no work-related fatalities recorded

within the organisation in 2011.

Safety Action Groups

Under the Abu Dhabi Environment, Health and Safety

Regulatory framework, it is mandatory for Etihad

Airways to consult with its employees in decisions

affecting their health and safety. Within the Safety

Management System (SMS) we have set up Safety

Action Groups (SAGs) throughout the business to

ensure that effective and appropriate EHS information

is disseminated and communicated between

management and employees.

The SAGs are also engaged in resolving health and

safety issues, monitoring employees’ health and

workplace conditions and ensuring that adequate

training and information is provided on hazard

identification, risk assessment and maintaining healthy

and safe working conditions.

Consisting of representatives from nine key operational

departments, the SAGs have been improved and

expanded during 2011, to include representation

from three key outstations across the global network.

With between five and 15 staff per group, there are

around 90 employees (or approximately one per cent

of the total workforce) who are actively involved in

disseminating EHS information and providing feedback

between management and employees.

Environmental health and safety training

EHS training is fundamental for any workplace if it

is to succeed in achieving its objectives. All training

requirements are determined by the organisation’s

Safety and Quality Department and overseen by

the Health and Safety Division of the Abu Dhabi

Department of Transport.

The training provided during 2011:

− 220 core grade staff underwent EHS-specific

induction training

− 227 staff undertook fire fighting training

− 800 crew underwent EHS specific induction training

− 55 pilots underwent EHS specific induction training

− 45 staff were trained as fire marshalls

Full regulatory compliance

All IATA member airlines are required to pass IOSA

(IATA Operational Safety Audit), which is conducted

every two years by an externally accredited audit

organisation. In 2010 Etihad Airways passed a major

UAE GCAA audit and the IOSA 2010 renewal, the

latter being the most recognised operational safety

accreditation in the airline industry. The program

is comprehensive, consisting of 966 standards,

subdivided into eight operational areas. Passing

this with zero findings in 2006, 2008 and 2010 is a

significant achievement demonstrating the very highest

levels of safety.

There were no incidents of non-compliance with local

regulations and voluntary codes, which was further

validated following an unscheduled inspection by the

Abu Dhabi Department of Transport in February 2012.

44 Etihad Airways Corporate Social Responsibility Report 2011 LA7

PR.2, LA6, LA8

Etihad Airways Corporate Social Responsibility Report 2011 45


Corporate and individual philanthropy plays an

important part in meeting our social responsibility.

In 2011 we increased our commitment to local and

international projects and initiatives that improve the

lives and wellbeing of the communities in which we

operate.

Crisis and humanitarian aid

Staff in Japan and Thailand affected by the natural

disasters during the year were supported in

various ways, including the provision of alternate

accommodation and a daily living allowance. Staff

based in Abu Dhabi were given access to information

and assistance hotlines to stay in touch with their

families during the crises.

Our staff responded with generosity and compassion

to the devastating earthquake and tsunami in Japan

and the flooding in Thailand later in the year.

We extended our support for HRH the Prince of

Wales Pakistan Relief Fund which continues to rebuild

villages and communities still stricken by the 2010

floods.

Working with Airlink and Care by Air, Etihad Cargo

transported large consignments of aid destined for

Somalia in the wake of the civil war and famine.

Our association with Airlink strengthened and

we were able to support several charities and

organisations carrying out relief work in Thailand, the

Philippines and Africa, flying passengers and cargo to

areas in need.

Community engagement

Our focus continued in the areas of individual

and community empowerment and development.

Extending the rationale and strategy in our workplace,

we work in a variety of communities and with

accredited programs to deliver opportunities,

education and vocational training that in turn create

employment and enhance the quality of life in

communities. 2011 also increased engagement with

cultural and artistic programs, and our continued

support for those which promote multi-cultural

dialogue. Etihad Airways does not provide any

financial support to politicians or political parties.

» Peace X Peace and Connection Point

» Mosaic

» Offscreen

» Edge of Arabia Exhibition

» National Museum of Australia –

Handwritten Exhibition

» TEDx

» Give and Gain Day

» Islamic Relief

» Islamic Museum of Australia

» Maria Christina Foundation

and Scholarship Program

» Child Welfare Scheme

» Monyati

» Medicimage

» Palestine Children’s Relief Fund

» Shelterbox

» Pakistan Relief Fund

» 2041 and International Antarctic Expedition

» Pink Polo

» Plurabelle Paddlers

» F1 in Schools

Adding it all up in 2011

We provided 170 free flights across our network for

charities, community and cultural projects and waived

200 kgs of excess baggage for voluntary charity

support.

Our frequent flyer customers donated a total of

31,422,850 Etihad Guest Miles to the 63 charities

listed on the Etihad Guest shop.

In 2011 we increased our commitment to local and

international projects and initiatives that improve the lives

and wellbeing of the communities in which we operate.

46 Etihad Airways Corporate Social Responsibility Report 2011 SO.6

Etihad Airways Corporate Social Responsibility Report 2011 47


Corporate governance

Corporate governance is rigorously enforced in line

with the Manual of Authority through carefully defined

structures and processes. The Manual of Authority

outlines authority limits delegated by the Board to the

Executive Committee, the executive team, management

and staff in order to run the company’s affairs and

operations.

The organisational structure ensures transparent

reporting and necessary checks and balances. A 2009

report by leading global management consulting firm

Oliver Wyman for the Abu Dhabi Audit Authority

concluded that Etihad Airways had “established strong

corporate governance and process redesign”.

Various layers of shareholder, management and

regulatory oversight ensure continuous performance

review against corporate strategic objectives and

external standards.

Etihad Airways governance framework

Shareholder

Board Meeting – Quarterly

Executive Committee – Monthly

Audit Committee – Quarterly

Management

Manual of Authority

Tender Board Meetings

Internal Audits

Regulatory

External Audit – KPMG Annual

Financial Review – KPMG Quarterly

Government Audit – ADAA Periodic

Operations Audit – GCAA Annual

Safety Audit – IOSA Biennial

Etihad’s management reporting framework

Meetings Objective Frequency Attendees

Board Meetings The Board meets the management of the company to ensure

shareholder mandates are effectively implemented. The Board

receives its authority from the shareholder and effectively

delegates that to the management via the Manual of Authority.

Executive Committee

Meetings

The Executive Committee meets management to discuss and

authorise the carrying out of any activity deemed necessary to

enable the company to achieve its commercial objectives and

operational activities, and to review risks and formulate actions

to address such potential risks.

Audit Committee The Audit Committee provide assurance to the Board over the

qualification, independence, and performance of the registered

public accounting firm (external auditor), and seeks advice from

the company’s internal audit function as to the adherence to

relevant governance standards.

Chiefs Meetings The Chief Officers of the company meet to discuss and review

performance to ensure the company achieves its commercial

objectives. At this meeting the CEO updates his direct reports on

issues affecting the company and feedback of Board, Executive

Committee and other meetings. The Chief Officers update the

CEO on issues and focus areas relating to their divisions.

Performance Review

Prioritisation Meetings

Divisional Business

Review Meetings (BRM)

These meetings focus on the performance of the company

including planned initiatives and continuous improvement.

The CEO meets with the management teams on a monthly basis

to ensure the organisation’s performance is aligned to strategic

objectives and a healthy operational environment exists. This is

done through updating the CEO and other members of the BRM

on initiatives, projects, risks and critical performance indicators

and focus areas of the division.

Quarterly Board members, CEO, CFO and

Chief Officers as required

Monthly A subcommittee of Board

members, CEO , CFO and Chief

Officers as required

At least five

times a year

Two members of the Board, CEO,

one independent member

including a representative of

Abu Dhabi Accountability

Authority, Audit Committee

Secretary (VP Internal Audit),

CFO and other VPs as required

Monthly CEO, Chief Officers

Quarterly or

as required

CEO, Chief Officers, PMO,

Cross functional VPs

Monthly CEO, Chief Officers, VPs,

Departments Heads and

Divisional Financial Controllers

Ethics and compliance

During 2011 Etihad Airways implemented a Fraud

Control Policy and a reporting hotline (800 1919)

to guide employees when faced with incidents of

potential fraud.

A new Code of Business Conduct addresses

workplace conduct with respect to business ethics,

conflicts of interest and dealings with outside parties.

Other policies used to guide employee actions;

include the Competition Law Compliance Manual,

Disciplinary Policy, the Fraud Control Policy, the

Manual of Authority and the Social Media Policy

Guidelines. Employees can seek guidance from the

Compliance Office or the Ethics hotline.

Responsibility for administering the Code lies with

the Ethics Committee, comprising the Vice President

Internal Audit (Chair), the Chief People & Performance

Officer, and the General Counsel. Oversight

responsibility rests with the President and Chief

Executive Officer, Audit Committee and the Board of

Directors.

Compliance

We take compliance very seriously and have

compliance programs in the areas of Competition/

Antitrust, Data Protection and Anti-corruption/Bribery.

We are in the process of updating and relaunching

our compliance programs in the Competition and

Data Protection areas and recently launched an

ethics hotline to enable our staff to report instances of

corruption, bribery and other unethical behaviours.

We require managers to undergo online training in

these areas. All of our contracts have clauses dealing

with compliance and we require our agents and

suppliers in high risk areas to undertake competition

compliance training.

Articles of Association

Manual of Authority

Government of Abu Dhabi

Etihad Airways was not involved in any legal actions

arising from anti-competitive behaviour, anti-trust, and

monopoly practices and was not subject to any fines

or sanctions for non-compliance.

Manual of Authority

Ensuring that Etihad Airways operates to the highest

ethical standards with strict compliance to corporate

governance procedures is critically important.

GRI 4.1, GRI 4.6, SO7, SO8

48 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 49

Contracts Manual

Tender Board

Board of Directors

Executive Committee of the Board

Executive Team

COMMERCIAL MANDATE

Audit Committee

External Audit

Internal Audit

Abu Dhabi Audit

Authority

The airline’s Manual of Authority sets out its corporate

governance processes and approval limits, which

are intended to enable efficient decision making

and approval processes without compromising the

effectiveness of governance and business controls.

It was comprehensively reviewed for renewal by

2012 in line with international best practice and

to accommodate the growth requirements of the

business.


2011 Awards recognition of our excellence

• World’s Leading Airline – World Travel Awards

• World’s Leading First Class – World Travel Awards

• World’s Leading Airline to the Middle East – World Travel Awards

• World’s Best First Class – Skytrax Awards

• World’s Best First Class Onboard Catering – Skytrax Awards

• World’s Leading Airline – Arabian Business Magazine

• Airline of the Year – TTG Travel Awards

• Best Business Class – Biz Travel Forum, Milan

• Business Airline of the Year – Guardian Observer Travel Awards

• Middle East’s Leading Airline – World Travel Awards

• Middle East’s Leading Airline First Class – World Travel Awards

• Middle East’s Leading Airline Inflight Entertainment – World Travel Awards

• Middle East’s Leading Cabin Staff – World Travel Awards

• Web Excellence, Airline category – Pan Arab Web Awards

• Best Co-Branded Card in the Middle East – Smart Card Awards Middle East

• Best Long Haul Airline – Irish Travel Awards

• Best Economy Class – Monitor Airline of the Year Awards

• Best Meal in Economy Class – Monitor Airline of the Year Awards

50 Etihad Airways Corporate Social Responsibility Report 2011

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