It’s often said that sustainability is a journey. For UK-based travel and tourism company Thomas Cook, the metaphor is particularly apt

Thomas Cook’s 2010 Sustainability Report is website only and you might need a guide to find it if you start at the company’s customer site. You first have to notice “sustainable tourism” in the tiny font menu at the bottom of the page. This takes you to the sustainable-tourism landing page where the link to the report is buried in text at the bottom. The signage at New Delhi railway station is clearer.

But just like going on holiday, it gets better when you arrive at your destination. The report menu is revealed by a neat unpacking suitcase graphic. There are relevant links throughout the report and the navigation is clear and consistent. Charts and data are clearly marked within each section, as well as bundled together in the performance section.

SRI analysts generally prefer a pdf download option, lacking here, but at least this website makes it simple to find data and other information. Each section leads with a case study – or Spotlight. The first – “Continuity through the ash cloud” – illustrates the company’s commitment to customer service during the spring of 2010 when air travel in the UK and EU came to a standstill because of the Icelandic volcano eruption. The story does a good job of demonstrating Thomas Cook’s commitment to its customers. However, it also highlights the company’s dependence on air travel.

Mega emissions

To its credit, the report acknowledges the impact of aviation and calculates Thomas Cook’s carbon footprint to be a jumbo 4m tonnes of CO2. The company argues that this impact should be viewed in the context of the significant economic value that tourism brings to many of the destination communities: “We do not advocate a reduction in air tourism. Of course, that would threaten our business, but it would also threaten the social and economic benefits brought by tourists to many of the world’s poorest countries.”

This is hazardous territory. There’s no metric for carbon emissions vs tourism economic value added and Thomas Cook makes no attempt to develop the concept. The reality, unacknowledged, is that fuel prices already threaten the growth of tourism, a trend that may well increase if carbon taxes are levied. Investors are smart enough to price this in to their calculations, but the company appears to have its head in the sand on the issue.

The report is commendably candid about risks from tourism. It states: “Tourism can contribute to problems such as child prostitution or damage to natural environments in destination communities. It is our responsibility to tackle these concerns.” Thomas Cook has robust policies to make tourism a power for good and provides numerous examples of social and environmental projects benefiting destination communities.

The company is also focusing on its supply chain, for example in the hotels it uses. Thomas Cook uses the Travelife rating system to raise the sustainability standards of its accommodation.

The credibility points earned in the tourism impacts section are eroded by an inadequate approach to reporting customer safety. The seven customer fatalities in 2010 involving hazards such as balconies, pools and transport (not to mention alcohol) aren’t treated with the seriousness they deserve: “While every death is of course deeply regrettable, it is important to remember that the figures here represent a tiny proportion of the millions of customers who holiday with us.”

We don’t doubt that Thomas Cook takes customer safety very seriously. But the way to convey this is to go into obsessive detail about the reasons for each and every death and not to appear to sweep them aside with general statements about millions of customers. They should take a look at other sectors, Xstrata in mining for example, to see how this is best achieved.

The report contains a lot of data covering a broad range of issues although most of it is for just two years. Trends are therefore not yet apparent and the company explains it is in the process of establishing a database to improve the collection of environmental data. Everything about this website is nicely done and that includes the progress and targets tables. The targets themselves are mostly commitments to undertake specific tasks. The few quantitative targets are short term and incremental in ambition.

Overall, it is a well organised and presented foundation for greater ambition. Thomas Cook can point to some significant strengths such as the social impact of tourism and it is well placed to tackle its other issues. It is not every time we say this, but we are genuinely looking forward to reading the company’s next report.

Kristina Babbitt is a consultant at Context America

kristina@contextamerica.com

www.contextamerica.com

 

 

 

Snapshot

 

Follows GRI     

Yes

Assured

No

Materiality assessment

Partial

Goals

Yes

Targets

Yes

Stakeholder input

Yes

Seeks feedback

Yes

Key strength

Ease of use and clear communication.

Chief weakness

Limited targets and ambition.

Pleasant surprise

Balanced discussion of risks associated with tourism.

 



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