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2010NETJETSENVIRONMENTALUPDATE REPORTNetJets EuropeReal DifferenceClimate InitiativeA brief summary of our progress in theyear since we released our 2009Environmental Progress Report.

2010ENVIRONMENTALUPDATENetJets Europe Real Diff02

2010ENVIRONMENTALUPDATELetter from the Chairman and Chief ExecutiveAs the leader in business aviation, NetJetsEurope feels a profound responsibility tominimise the environmental impact of airtravel. Keenly aware that ours is a pollutingindustry, we faced the challenge head on,and set out three years ago to become theworld’s most environmentally responsiblebusiness aviation company by launching ourReal Difference Climate Initiative.We are ahead of schedule in meeting our first environmentalcommitment: to become 100% carbon neutral by October2012. As of October 2010, we actively offset emissions for73% of our flight hours and for all internal operations. Wehave also exceeded our second commitment—to reduceemissions from office operations by 10% over two years—withan actual reduction of 25.9% per non-crew employee. Theseresults could not have been achieved without theenthusiastic support of our Owners, employees, andpartners. 1Our fuel working group continues to identify andimplement a wide range of practices that are resulting insignificantly greater fuel efficiency in our flights. Duringthe twelve-month period ending this October, weachieved a 4.1% reduction in fuel use per flight hour,largely due to flying at slower speeds duringnon-revenue flights as well as operational proceduresand techniques.We have met and continue to meet all our monitoringand reporting obligations as we prepare for ourcompany’s inclusion in the EU Emissions TradingScheme.In late 2009, NetJets Europe acquired a majorityinterest in Frankfurt-Egelsbach Airport, which has addedto our environmental challenges and opportunities.While our support for the initial phase of the PrincetonNext Generation Fuel Project has ended, we remaincommitted to finding ways to support the developmentand use of alternative fuels.Like many companies globally, NetJets Europe hasexperienced business volatility over the past two years.Because efficiencies depend in part on economies of scale,some areas of our business experienced slightly lowereco-efficiency (on a per flight or per employee basis). Thesefluctuations are to be expected; in spite of these challenges,Real Difference has continued to progress over the past year.This update provides a brief summary of our environmentalefforts and results since we released our first EnvironmentalProgress Report in 2009. Interested readers can refer to thatreport for further context. We expect to issue anothercomprehensive report in 2011. A few items are worth noting:Through our carbon offset programme, NetJets Europeand our Owners have allocated €4.8 million for thepurchase of carbon credits and supported some of thehighest-quality alternative energy projects around theworld. More than 80% of our Owners are currentlyparticipating in the programme.NetJets Europe remains proud of its overall environmentalrecord and is committed to further improvement. We areproud to have set ourselves a number of new environmentalgoals, which cascade throughout our organisation. Notably,we aim to further reduce our carbon emissions per flight hourby 2% in 2011, through operational improvements. We alsocommit to announcing a set of annual targets next year foremissions reductions until 2015. Each employee is taskedwith achieving their own set of goals and together we believewe can make small changes that create a real difference.With the firm support of our Owners and everyone in ourcompany, we will continue to set a high bar forenvironmentally responsible flying.Sincerely,Eric ConnorChairman and Chief Executive, NetJets EuropeDecember, 20101 Throughout this report, the term Owners refers to all of NetJets Europe’s customers, including fractional aircraft owners and Private Jet Card holders.04

05Eric ConnorChairman and Chief Executive, NetJets Europe

2010ENVIRONMENTALUPDATEClimate Change andCarbon ManagementNetJets Europe’s Climate Initiative has focused primarily on our greenhouse gas emissions (GHG). Based onthe Greenhouse Gas Protocol, NetJets Europe has created a comprehensive profile of its greenhouse gasemissions each year since 2007. 2 This includes emissions from:Flights. All emissions from flights by NetJets Europe’s fleet of aircraft, which represents the bulk of ourcarbon footprintInternal operations. All non-flight emissions, including those from general office operations, crew travelto and from flights, other business travel, commuting and other sources.The figure and table on the right detail 2009 greenhouse gas emissions by source. 32 For further information on NJE’s GHG inventory, please get in touch using the NJE contact details at the back of the report.3 This report provides numbers for calendar year 2009 unless otherwise noted.NetJets Europe 2009 Greenhouse Gas ProfileNJE FlightEmissions(95%)Total Emissions 234,372 Tonnes CO 2InternalOperations(5%)Real Estate (0.6%)BusinessTravel3.2%)Owned andLeased Vehicles(0.2%)Deliveries andWaste(0.3%)Commuting(0.6%)06

NetJets Europe 2009 Greenhouse GasEmissions by Source (Metric tonnes CO2)EMISSIONSSOURCEDESCRIPTION 2008 2009EXCLUDINGEGELSBACHAIRPORT42009AircraftOperationsBusiness TravelReal EstateFuel consumption on short-haul andlong-haul flights using both NJE-owned andsubcontracted aircraft.Business-related travel by NetJetsemployees – crew travel between flights andother employee business travel.Includes heating, cooling, and electricityconsumption for a total of 21 offices aroundEurope, including Egelsbach Airport.265,597 222,71810,417 7,5961,267 1,149222,7187,5961,321Deliveries andWasteDeliveries of aircraft and parts; deliveries tooffices and transport and disposal of waste;transport of passengers to and from theairport; transport within the airport.979 791791Owned andLeased VehiclesFuel consumption from cars and otherNJE-owned and leased vehicles. These rangefrom company cars to aircraft tugs, includingvehicles at Egelsbach Airport.536 442475CommutingTravel to and from work by NetJetsemployees, not including crew travel toflights or business travel.1,837 1,4421,472Total Emissions All GHG emission sources 280,632 234,138 234,3724 Emissions from aircraft operations and business travel for Frankfurt-Egelsbach Airport are included in the2009 inventory but not calculated separately. Data to calculate deliveries and waste forFrankfurt-Egelsbach Airport were unavailable for 2009.07

2010ENVIRONMENTALUPDATENetJets Europe and the EuropeanUnion Emissions Trading SchemeOne of NetJets Europe’s most important environmental obligations is to comply fully with theEuropean Union Emissions Trading Scheme (EU ETS), an EU-wide initiative designed to achievecommitments under the Kyoto Protocol. Aviation will be included in the ETS beginning in 2012.Operators of passenger and cargo flights arriving and/or departing from airports in the EU will berequired to pay for their emissions.As Europe prepares for 2012, all operators are providing information to authorities. Over the pastyear, NetJets has fulfilled its monitoring and reporting obligations and is currently engaged inimplementing an independent verification process as required by the legislation.Some of NetJets Europe’sCross-Departmental Fuel Team, who worktogether to drive down fuel emissions.08

Reductions in Flight EmissionsGreenhouse gas emissions for NetJets Europe flight operations declined on an absolute basisbetween 2008 and 2009, but, as was the case in the prior year, much of this decline was dueto a reduced flight schedule as a result of the global economic downturn. On a per revenue flighthour basis, emissions increased slightly (about 2%) from 2008 to 2009, but this still representsan overall decrease of nearly 4% from 2007 to 2009. 5 Many new efficiency programmes wereimplemented over the course of 2009, with the result that recent numbers have been quitepromising. From November 2009 to October 2010, we achieved a 4.1% fuel reduction per flighthour largely due to flying at slower speeds during non-revenue flights as well as operationalprocedures and techniques.5 A revenue flight is defined as either 1) an Owner flight or 2) another NetJets Europe flight that, while not directlyundertaken on behalf of an Owner, is related to revenue generation, such as a demonstration flight for aprospective customer. Emissions from all types of revenue flights are offset under the flight offset programme.Emissions from non-revenue flights (such as ferry flights) are addressed as an aggregated overhead componentapplied to the revenue flights.Initiatives to Reduce Flight EmissionsOver the past year, the company has continued its efforts to reduce overall fuel consumption andrelated emissions. NetJets Europe accomplishes greater aircraft utilisation by 1) promotingaircraft sharing through our fractional ownership and card models, 2) enabling Owners to varyaircraft choice based on their needs for individual trips, and 3) operating a large fleet that fostersvery efficient routing.09

2010ENVIRONMENTALUPDATEOperating Aircraft toReduce Fuel BurnSince late 2008, an internal working group has focused on ways to operate aircraft in order toreduce fuel burn. Many of their specific recommendations were detailed in our 2009 report.During the past two years we have transformed each of these recommendations into a firm policyand incorporated it into our pilot training. Since March 2010, in addition to the intensive trainingour pilots receive for duty, all pilots are scheduled to receive fuel awareness training, whichcombines classroom instruction and simulator training in the NetJets Europe training centre inCascais, Portugal. The training promotes techniques shown to increase flight efficiency; forexample, flying higher or at altitudes with different wind speeds. To date, 30% of all pilots haveattended simulator training, and we are observing a reduction in the average hourly fuel burn. Aspromising techniques are uncovered, they are incorporated into the training.NetJets Europe sought and recently received approval to conduct Extended Range Operations(EROPS) under commercial rules, meaning that the company can fly its twin-engine GulfstreamG550 aircraft along routes not more than 180 minutes flight time from an airport (the previousmaximum was 120 minutes). This new maximum will result in more direct routes, fewer fuel stopsand reduced overall fuel burn, as well as time savings and convenience for Owners. On a flightfrom Rio de Janeiro to Cape Town, for example, flight time is reduced by 2.8 hours while 12,075lbs of fuel are saved.Improving Aircraft EfficiencyAircraft design is a major determinant of fuel efficiency. We work to improve our jet fleet’s fuelefficiency by purchasing and using more fuel-efficient aircraft. We recently chose the EmbraerPhenom 300 as our new light jet after carefully evaluating its environmental characteristics. Thisquiet, aerodynamic aircraft, equipped with winglets, consumes 14% less fuel than its closestcompetitor, and will help us to further reduce the carbon footprint of our flight operations. Therelatively low average aircraft age of our fleet (half that of the industry average) also contributes tothe average fuel efficiency of our fleet.10

Carbon Offset Programme for FlightsA key component of Real Difference is our Carbon Offset Programme for flights, through whichwe partner with our Owners in an effort to achieve carbon-neutral flying. Contracts betweenNetJets Europe and its Owners run for standard five-year terms, and since October 2007 all newcontracts and renewals have included mandatory 100% carbon offsetting as a matter ofcompany policy. Mid-contract Owners can also participate in a voluntary offset programme. Asof 1 st October 2010, 84% of our Owners are participating in the offset programme and 73% offlight hours have net zero emissions. Continuing this policy for all contract renewals will achieve100% carbon offsetting for flights by 1 st October 2012.From the beginning of the programme to 31 st October 2010 we collected more than€4.8million for the purchase of qualified carbon offsets.Initiatives to Reduce and OffsetInternal Operations Carbon FootprintWhen we launched Real Difference in October 2007, we made two important commitments withrespect to NetJets Europe’s internal or non-flight operations:100% carbon neutrality for all of our internal operationsA 10% reduction in greenhouse gas emissions across our offices over two yearsWe met the first commitment by offsetting 100% of internal operations emissions from thebeginning. In addition, we exceeded the goal of 10% reduction for our office operations in thefirst full year of Real Difference. Though our internal operations office emissions increased on aper non-crew employee basis in the past year, we significantly exceeded our commitment of10% reduction over two years, achieving a 25.9 % decrease in emissions per non-crewemployee from office operations from 2007 to 2009.Recognising that business travel is responsible for the largest part of our emissions frominternal operations, we have continued to raise awareness of its environmental impact,encourage video conference usage where possible, and implement management controls thatensure trips are necessary. As a result, emissions from business travel have continued todecrease, with an 8.6% decrease over the past year and an overall 18.3% decrease from 2007per non-crew employee.11

2010ENVIRONMENTALUPDATEThe NetJets EuropeCarbon Offset PortfolioTo define and source the carbon offset portfolio for our flight and internal offset programmes,NetJets enlisted the help of EcoSecurities, a leader in sourcing, developing and trading emissionreduction credits. The projects in our offset portfolio are carefully selected, and are vetted,monitored and verified to Kyoto levels. 6 We have done our utmost to ensure the offsets providesolid benefits for the environment, are of the highest authenticity, and are fairly priced. Theportfolio composition changes from year to year, as project activities are completed. The currentportfolio includes the projects listed below.For more information on NetJets Europe’s Carbon Offset Programme, please click here:http://www.ecosecurities.com/Standalone/NetJets_Carbon_Offset_Program/default.aspxInner Mongolia Chiefeng Dongshan Phase II Wind Power Project (China). This project islocated in Danianzi Town, Songshan District, Chiefeng City, Inner Mongolia Autonomous Region. Itinvolves the installation of 58 turbines, each of which has a rated output of 850Kw, providing atotal capacity of 49.3 MW. The annual output of the proposed project is estimated to be124,073MWh. The electricity to be generated will be sold to Northeast China Grid through a powerpurchase agreement. The project will help reduce GHG emissions generated from coal-dominatedpower generation.Lucélia Bagasse Cogeneration (Brazil). This project enhances the efficiency of the bagassecogeneration facility at Central de Álcool Lucélia Ltda (Lucélia), a Brazilian sugar mill. Bagasse isa renewable fuel source that is a residue resulting from sugarcane processing. This project willenable the mill to sell bagasse-based electricity to the national grid, displacing the same amountof energy produced by fossil fuel thermal plants. As a result, the project reduces CO 2 emissionsand contributes to regional and national sustainable development.Monte Rosa Bagasse Cogeneration (Nicaragua). By extending cogeneration activities andincreasing energy efficiency and cogeneration capacity at the Monte Rosa sugar mill, this projectgenerates electricity to sell to the grid, thereby displacing power from fossil fuels. The project alsocreates a sustainable competitive advantage for agricultural production in the sugarcane industryin Nicaragua by adding value to the bagasse. The sale of the offset credits generated by the projectboosts the attractiveness of bagasse cogeneration projects, helping to promote this energy sourceand decreasing dependency on fossil fuel. The project also directly creates 35 new jobs on thesite.12

13Inner Mongolia Chiefeng Dongsham Phase IIWind Power Project (China)

2010ENVIRONMENTALUPDATEShanmugou Small Hydropower Project (China). This small-scale hydropower project in SichuanProvince in China has a total installed capacity of 10 MW, with a predicted power generation of 52,048MWh per year. The purpose of the project is to utilise the hydrological resources of the Guanliao River ina run-of-river scheme (without the creation of a dam or reservoir) to generate zero-emission energy to theHuazhong power grid, displacing energy that otherwise would have been generated using fossil fuel-firedpower plants.Shanmugou Small HydropowerProject (China)Wahei Hydroelectric Project (Sichuan Province, China). This hydroelectric plant in the village ofWahouku on the Wahei River consists of two 22 MW generators that use water from the river in arun-of-river scheme. The project will contribute over 180,000 MWh of zero-emission electricity toChina’s central power grid. Given that China is currently commissioning a new coal-fired plantevery five days, projects like this one, that displace coal-generated energy, help to create a greaterdiversity of energy sources, meet growing demand, and foster sustainable development.6 The Verified Emission Reductions (VERs) used by NetJets Europe for offsetting its GHG emissions come fromprojects that are in development under the UN-approved Kyoto Clean Development Mechanism (CDM). VERs arecreated as the project activity starts operation and emission reductions are verified by an accredited independentauditor. Emission reductions from projects certified under the CDM must also meet the test of additionality, whichmeans they would not have happened given any kind of business-as-usual scenario. In other words, they areadditional reductions.14

Beyond Carbon: OtherEnvironmental Impactsand InitiativesWhile NetJets Europe’s environmental attention has been largely focused on managing andreducing the company’s greenhouse gas emissions, we have also continued to execute the widerange of other environmental programmes detailed in our 2009 report. Examples includeimproved recycling in our offices, a waterless car-cleaning system, and utilisation ofenvironmentally-friendly aircraft paints. During the past year, we have also introduced several newinitiatives, some of which are described below.Re-usable Materials for Flight MealsRecognising that flight meals can result in significant waste, we are gradually implementingre-usable catering materials and have achieved a 25% reduction in waste so far. Our new cateringbox is fashioned from sustainably sourced bamboo and features wooden cutlery and porcelaininserts – all of which are recyclable. Even the lids are biodegradable, and the porcelain inserts willbe re-used. As we expand this programme, we expect to achieve higher levels of re-use.Frankfurt-Egelsbach Noise ReductionAs majority owner in the Frankfurt-Egelsbach Airport, we have focused our attention on ensuringthat the airport complies with regulations, is environmentally responsible, and is responsive to theneeds of the local community. The airport has been operating two stationary aircraftnoise-monitoring units since 2004. Following the purchase, we introduced the Quiet AirportProgramme (QAP). As an integral part of this programme, the airport is in the process of deployingtwo additional noise-monitoring units, one of them a mobile unit. Because this new equipment isbetter able to filter out surrounding noise (such as noise from road traffic, trains, agriculturaloperations and passing aircraft), we will have more accurate reports that will help us achieve ourgoals. We have also introduced a new approach path that improves safety and reduces noise; thisis the only approach path NetJets uses when flying to Egelsbach.15

2010ENVIRONMENTALUPDATEFrankfurt-Egelsbach Natural Features, Green Space and LandscapingAbout six years ago, the runway at Frankfurt-Egelsbach Airport was extended. During the process,the local Hegbach creek had to be partly diverted. Given that the creek had been diverted yearsago, the runway extension allowed us to return the creek to its original course. In addition, bypurchasing land and planting 45,000 bushes and trees chosen with natural balance in mind,NetJets Europe has been able to improve both the environment and the natural beauty of 25hectares of the airport landscape. NetJets Europe is currently assessing options for expanding itsenvironmental initiatives at the airport across a broad range of issues. We have also appointed acommunity liaison officer and initiated diverse forms of outreach to and support for the localcommunities.Reaching Out to Employees, Owners, Partners and the PublicNetJets Europe recognises that environmental awareness must infuse every area of our businessand that communications play a very important role. We have worked hard to ensure that ourOwners, employees, and partners are fully aware of Real Difference and our specific environmentalinitiatives, along with the actions they can take to support these efforts.Owner Communications. Our monthly invoices thank our Owners for participating in theOffset programme and show them how much they are paying for offsets.Flight Crew Training. Not only have we provided flight crew with periodic information andtraining about the programme’s overall goals, but we also have incorporated specific pilottraining modules that will help our flight crew contribute to reducing emissions on the job.Participation in Single European Sky Air Traffic Management (ATM) Research (SESAR).The goal of the European Commission’s Single European Sky initiative is to organise airspaceand air navigation at a pan-European rather than a national level in order to shorten flights,reduce fuel consumption and improve efficiency – enabling Europe to better accommodatefuture demand. Contributing our expertise in business aviation, safety and small airportoperations, NetJets Europe is partnering with the European Business Aviation Association(EBAA) and Dassault Aviation to develop related technology, standards and procedures.Partner Programmes. With the goal of ensuring environmental responsibility throughout thesupply chain, we evaluate suppliers’ green credentials and work with key partners to findopportunities for reducing environmental impacts.16

Employee Programmes. From the inception of Real Difference, we have engaged thecooperation of employees across the company and sought their input to improve ourprogrammes. Our first-ever internal “Day of Difference” event, introduced in late 2010, isdesigned to encourage even greater focus and engagement by employees on the programmeand on environmental issues in general. Overall, the internal programme enables employeesto learn about the work being done across the organisation and share ideas and bestpractices through internal events, intranet content, newsletters, and specific training efforts.Public Reporting. We are committed to reporting publicly about our carbon footprint andenvironmental programmes, and hope that this transparency will encourage other companiesto do the same.17

2010ENVIRONMENTALUPDATENetJets EuropeEnvironmental ManagementNetJets Europe’s environmental efforts are led by a cross-functional team in order to ensure asound, pragmatic environmental strategy and to foster effective execution of that strategy acrossall areas of the business. The overall strategic direction of Real Difference is set by our seniormanagement team, led by our CEO and the COO of our operating company, who ensure thatNetJets Europe is meeting and exceeding its environmental commitments. The environmentalteam is managed on a day-to-day basis by Joe Bauer, Director of Asset Management, and AdamBarriball, VP of Communications, and incorporates members from multiple areas of operations,along with representatives from regulatory affairs, finance, communications, and marketing.The NetJets Europe Environmental Advisory Board is a group of environmental managementexperts who ensure that the company has the benefit of the latest thinking on climate issues andenvironmental management. The Board meets regularly with NetJets Europe EnvironmentalManagement leaders, providing advice, reviewing plans and identifying opportunities to improveor accelerate environmental initiatives. Members, listed in alphabetical order, include:DAN ESTY is the Hillhouse Professor at Yale University, Director of the Yale Center for Business andthe Environment and the Yale Center for Environmental Law and Policy. He was a top official at theUS Environmental Protection Agency and has helped many global companies, including Unilever,IKEA, Shell and Nokia, design serious, long-term environment or sustainability programmes.JAN-OLAF WILLUMS is Chairman of Inspire, a group that invests in young enterprises withenvironmental agendas. He is the current Chairman of the Zero Emissions Mobility Initiative,having previously served as CEO of electric car company THINK. He is a professor at the NorwegianSchool of Management, co-founder of its Centre for Corporate Citizenship, and a member of theWorld Economic Forum Automotive Agenda Council and of the environmental advisory board ofthe EBRD.JOHN MCCALL MACBAIN, a NetJets Owner and the founder, former President and CEO ofTrader.com, is a philanthropist with interests in environmental protection. He serves as the Chairof the Board at the European Climate Foundation. He was a Rhodes Scholar at Oxford Universityand holds an MBA from Harvard Business School.MARITTA R. VON BIEBERSTEIN KOCH-WESER worked on environmental programmes at the WorldBank for 18 years and served as Director General of the World Conservation Union, the world'slargest umbrella organisation of environmental institutions. She is CEO of the Global Exchange forSocial Investment and Founder/President of Earth3000. She is also currently coordinating theproject “Amazonia in Transformation: History and Perspectives” at the University of São Paulo,Brazil.18

19OLIVER RAPF is Head of Business and Industry Engagement on Climate Change at WorldWildlife Fund International. He is heading the global WWF climate change businesspartnership programme, advising and working with international companies on climatechange and energy issues and leading an international team of WWF staff from around theworld. Prior to 2007 he was the deputy head of the WWF’s European Climate Change andEnergy Policy Unit and helped co-ordinate the WWF’s work on Emission Trading in the EU.

For more informationTo learn more about NetJets Europe’s Real Difference ClimateInitiative, visit (http://is.gd/hZY4e). If you have questions about anyaspect of this report, please contact Adam Barriball, VP ofCommunications, at abarriball@netjets.com