Partnering with suppliers

Large companies, such as Thomas Cook Group, can bring about sustainability improvements in whole supply chains by using their purchasing power. We want our suppliers to meet high social and environmental standards, but we also appreciate that this is harder for some suppliers, for example smaller companies or those in countries where environmental protection is less established. We therefore use our influence as a buyer in combination with practical support to help our suppliers adopt sustainable practices.

The sustainability topics on which we engage with suppliers include:

• The welfare of animals used in tourist attractions – see the Conservation page
• Sexual exploitation of children around holiday destinations – see Destination communities
• The environmental impacts of hotels – see below, the Travelife page and Spotlight: sustainability in our hotels
• The environmental impacts of airline catering – see below.

Increasingly, our companies are integrating sustainability criteria into their tender requests and procurement contracts. Thomas Cook Northern Europe, for example, specifies that its cleaning supplier use environmentally sound products. Our airline in Northern Europe will be incorporating environmental criteria into its key supplier contracts in 2011 as part of its environmental management system. Already, however, the airline has specified that its supplier of crew uniforms uses Ecotex, a range of environmentally sound fabrics.

In the UK, a review of procurement documentation in 2010 resulted in expansion of the sustainability criteria included. The topics that suppliers are assessed on now include resource use, environmental management, child labour and working hours. Our UK airline is also trialling the use of sustainability indicators in evaluating existing suppliers. For example, the airline's catering supplier has been tasked with reducing the number of disposable items in the catering packs and ensuring that any remaining disposable items are biodegradable or compostable. Our plan is to roll out the use of sustainability indicators in procurement across the UK business in 2010/11.

Catering is also an area of focus for our German airline, Condor. When assessing suppliers for a new catering contract in 2010, environmental performance was taken into consideration. The company chosen has won awards for its environmental programme.

Also in Germany, Thomas Cook requests that construction suppliers building new hotels meet specific environmental standards. These include the use of solar energy and renewable raw materials. With existing properties we focus more on reducing energy use, consumption of water and other resources, and waste.

In 2010, we launched an electronic magazine to promote sustainability initiatives among accommodation and excursion providers. The magazine includes examples of innovative projects already implemented, to inspire our suppliers. Among the most innovative are:

• A fruit and vegetable garden at a hotel in Egypt, which generates around 1,000kg of produce for the hotel each year, as well as providing employment for 10 gardeners
• A herb and vegetable garden in Crete, the opening of which was marked with a tree planting ceremony for guests and a drawing competition for children
• The installation of solar panels at a hotel in Ibiza, which will reduce consumption of fossil fuels by 70%.

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