2000 wards essay

myfway1

group_report.pdf

Home >Business & Finance homework help >Accounting homework help >2000 wards essay

VIRGIN GROUP’S CORPORATE RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT REPORT

2010

well... it’s not really a report... it’s more of a...

this wa

VIRGIN GROUP’S CORPORATE RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT REPORT

think piece or “Dicussion Document”. It’s basically...

VIRGIN’S VIEW ON A SUSTAINABLE LIFESTYLE

and what we are doing to help people get closer to that

A MESSAGE FROM RICHARD BRANSON

THE VIEW FROM THE TOP By Stephen Murphy (group CEO) and Peter Norris (group Chairman)

MANAGING CORPORATE RESPONSIBILITY & SUSTAINABLE DEVELOPMENT ACROSS THE GROUP An explanation of what sustainability means to the Virgin companies, how the Virgin Group

is structured and our governance process

WHAT VIRGIN IS UP TO AROUND THE WORLD

THE VIRGIN TIMELINE

FLYING HIGH Virgin Atlantic, Virgin America, Virgin Blue Group,

Air Asia X, Belgium Air

WE’RE ALL GOING ON A SUMMER HOLIDAY Virgin Holidays, Virgin Limited Edition

GETTING FROM A TO B Virgin Trains, Virgin Limobikes, Virgin Racing

STAYING IN TOUCH Virgin Media, Virgin Mobile, Virgin Digital Help

WATCHING THE PENNIES Virgin Money, Virgin Green Fund

MY BODY IS A TEMPLE Virgin Active, Virgin HealthMiles, Virgin Life Care, Virgin Spa

OUT OF THIS WORLD Virgin Galactic

RELAX AND HAVE FUN Virgin Media, Virgin Books, Virgin Games, Virgin Wines,

Virgin Experience Days, Virgin Balloon Flights,

Virgin Festivals, Virgin Radio International

THE VIRGIN PEOPLE STORY Our People: The HR department’s review of Virgin’s policies, achievements and how it is striving to do more

Our Customers: Virgin’s philosophy behind being the consumer’s champion

VIRGIN UNITE AND THE ‘BIG IDEAS’ Virgin Unite, The Elders, The Carbon War Room, Disease Control Hub, the Virgin Earth Challenge,

the next big idea and our view on forests

12 14

CONTENTS VIRGIN GROUP’S CORPORATE RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT REPORT

Lifestyle themes Virgin’s thoughts, the key issues and the companies’ impacts, actions and intentions

page

Richard Branson

Someone wiser than I once said that ‘knowledge is power’ – and so in the 21st Century we have no excuse to sit back and let our planet and its people continue to suffer. As “global citizens” of the world we are facing serious environmental and social challenges; climate change, a lack of key resources, widespread poverty, conflicts and enormous population growth are all threatening to destabilise our fragile status quo. Scientists have been telling us for years that we cannot continue to live the way we do and at last some of us have started to listen, started to act and started to turn back the tide, little by little – at last having grasped that in our small global village what affects our neighbours, affects us all.

It would be easy to be overwhelmed by the scale of these global issues, but I am an optimist at heart and I believe in the power of entrepreneurship and innovation. The human race has demonstrated a tremendous capacity to change and adapt in the past and I have faith we can do it again. At Virgin we’re working together to make a difference, by implementing small changes in the way we work, by continuously investing in green technologies and by exploring new possibilities in science and beyond. I believe that in the future we will be able to enjoy healthy and fulfilling lifestyles, whilst minimising the negative impact we have on the world. What seems impossible today could be possible tomorrow.

The world has changed a great deal in the 40 years since the Virgin Group started, but I’m proud to be able to say that we’ve moved with the times and we’re still listening. We’ve set up a foundation, Virgin Unite, to help us listen, bring people together and tackle issues with entrepreneurial approaches. We’re also listening to the exceptional men and women who form The Elders, to the scientists, partners and entrepreneurs who make up the Carbon War Room - all these people are helping to educate us as to what is needed both globally and at a grass roots level to help make a difference to lives on a daily basis.

A message from Richard

We have always considered ourselves to be a responsible business, and whilst we have understood the environmental and social pressures of our world, this is the first time we have outlined our thoughts and views on corporate responsibility and sustainable development for the whole Virgin Group.

At Virgin we have always looked for new, innovative ways to do business by offering consumers another way, a better way, and by being willing to fight their corner. We are determined Virgin will prove that living sustainably and responsibly need not be considered difficult or dull. Sustainable living is often portrayed as a life of sacrifice and compromise as opposed to the choice and freedom we currently enjoy. Unsurprisingly people aren’t motivated by this vision. We want our Virgin companies to provide responsibly produced, sustainable, low carbon services and products that are desirable, easy to use and good value above all else so that our customers can enjoy their lifestyles safe in the knowledge that Virgin is acting responsibly on their behalf.

We designed this report (although we feel like it’s more of a story to which we haven’t yet written an ending…) to highlight the enormous range of sustainability issues the Virgin companies face, operating in so many different sectors. Virgin’s products and services span many aspects of life, from mobile phones and financial products to holidays and health clubs. Our challenges and opportunities are consequently just as diverse, but we recognise this gives us the potential to contribute in a meaningful way to a vision of a sustainable lifestyle. We want to use the report to explain how our companies are doing this - addressing their impacts and realising the opportunities – and also to share our vision on responsibility and sustainability along with our plans for the future.

As a member of the Virgin Group, each business is responsible for making its contribution to our vision of sustainability. For some, such as the airlines, the task is far harder and so we recognise that each business will progress at its own pace. However, we expect each Virgin company to fully understand its environmental and social impacts, have the ambition to lessen these impacts and work to exert its influence to lessen the impacts of its sector.

We are proud of what our companies have achieved so far and some initiatives in particular have really set the bar high for sustainable practices within the group. However, we’re also committed to pushing them to go further and be more ambitious with their goals. ‘Business as usual’ is no longer an option - the world simply doesn’t have enough natural resources to maintain current trends of consumption, and the consequences of climate change and environmental degradation are severe. The global issues we face today are enormous and to solve them we all need to work together towards living more sustainably. To support this, we’ve also established a non-profit foundation, Virgin Unite, that works with our businesses, Richard and global partners to drive change and to encourage entrepreneurial approaches to some of the tough challenges the world is facing today.

As a society we need to be prepared for change. Businesses, governments and individuals need to speak the same language and act together to make the right decisions to shape our lives for the future. No single company can solve these problems but if we have the courage to unite, we can find the creative, pragmatic and bold solutions required to meet these challenges head on.

Peter NorrisStephen Murphy

The view from the top By Stephen Murphy (group CEO) and Peter Norris (group Chairman)

This definition of sustainable development comes from Gro Harlem Brundtland, Prime Minister of Norway and author of Our Common Future (1987).

The Virgin At lantic

sustainabilit y team is

working har d to reduce

its

company’s c arbon emiss

ions,

a goal which is less rele

vant

for Virgin Games, whic

has a tiny c arbon footpr

int,

but is inste ad working

prevent gam bling addic

tion.

THE VIRGIN GROUP’S C

HALLENGES

ARE VERY W IDE AND VA

RIED:

Managing corporate responsibility & sustainable development across the group

The Virgin brand values hav e remained unchanged for 4

0 years. They aren’t just an image but a reflection

of our very essence and the way we do business. Virgin h

as always stood for value for mo ney, quality,

innovation, fun and a sense of competitive challenge. But n

ow our brand values have go ne three

dimensional; we no longer hav e a list of brand values but

a brand cube to which we ha ve added the

Wellbeing & Happiness of P eople and

Sustainability of the Planet. This report

represents that fundamental evolution to our brand and

what we at Virgin stand for .

We pride ourselves on the d elivery of a high quality

products and services throu gh the empowerment of our

employees and innovative use of customer feedback to

continually improve the custo mer’s experience but can

no longer do this without con sidering the impact our

products and services have on people’s wellbeing and

the planet’s sustainability; th ey are intrinsically linked.

So what does this mean for the Virgin companies?

We have interpreted this definition of sustainable development into four main challenges which we believe businesses need to meet in the 21st century:

of all individuals

physical wellbeing.

We believe that we have a part to play in making this a reality and so our vision for sustainability within the Virgin Group is to: “make a credible contribution towards sustainable lifestyles whilst meeting or exceeding the expectations of our staff, customers and stakeholders”.

Our path towards sustainability is based on development by means of enlightened capitalism. We have to change the way we run our businesses by; channelling the entrepreneurial spirit of our people, pioneering new technologies, funding Research and Development (R&D) and thereby reducing the resources we use. Then we have to encourage our competitors to do the same. So it’s not only about profits – it’s about adapting and developing the products we sell and services we provide, to ensure we look after people and the planet, now and in the future.

Some of our companies have relatively small environmental footprints, but more significant social impacts which need to be addressed. For example; Virgin Games’ main responsibility is helping to prevent gambling addiction, Virgin Wines ensures its wine producers get a fair price and

also has a role to play in encouraging responsible drinking, and Virgin Money’s predominant social issue is advocating responsible lending.

Because of this wide variation in the challenges our different companies face, we decided that highly focused group-wide targets and KPIs would be inappropriate and fail to tackle the sector specific impacts sufficiently . Instead we developed the Product Story approach (explained in more detail on the next page) and asked each company to review its own individual sustainable development story, enabling them to examine on a case-by-case basis how they are meeting the four challenges outlined above and where they need to make improvements.

Whilst we have already come a long way, the road stretches indefinitely in front of us. Sustainable living is not the latest vogue or a fad that will die out. We are making a long-term commitment; we aspire to become greener and more responsible every year. Although Virgin is big, we can achieve relatively little in the grand scheme of things just by reducing our own impacts. However, by continuously trying to lead the debate, raising the bar, challenging our competitors and lobbying governments, we can make sustainable businesses a reality as well as being economically beneficial.

Since Virgin companies span so many sectors, it wouldn’t be relevant for us to outline just one set of targets and one area of focus. Instead we decided the best approach was to explain what issues face the sectors that our companies operate in and explain what the Virgin companies are doing both to maximise their positive impacts and minimise their negative impacts. You can read all of these in the later chapters.

Wellbeing & happiness of people

All stakeholders staff, customers, suppliers, society

Value for money

Good quality

Brilliant customer service

Innovative

Completely challenging

Fun

Sustainability of the planet

Finite resources

Low carbon

The Brand Cube

Virgin companies employ over 43,000 people in over 20 countries worldwide. Plus we have a further 10,000 staff employed by partner organisations who deliver a service on Virgin’s behalf to our customers. To learn more about our People see page 68.

THE FIRST STEP: PRODUCT STORY PROCESS Each Virgin business has its own Product Story, a document that outlines all the corporate responsibility and sustainable development (CR/SD) issues that a particular company faces, put together by quizzing our businesses in depth about all the products and services they offer. The Product Story covers all aspects of corporate responsibility and sustainable development and so includes what the business is doing well at and striving to improve, as well as the areas which need significant work.

Researching and writing the Product Stories hasn’t given us all the solutions, but by underscoring both the good and the bad bits, we can now say, hand on heart, that we know the whole truth (and nothing but the truth) and so are better positioned to improve our companies’ impacts and help our consumers to live more sustainable lifestyles – which, is ultimately the aim of this process.

THE SECOND STEP: DASHBOARD The detailed Product Story is then simplified into a succinct Dashboard which highlights the main risks and opportunities, progress made and next steps. A traffic light system measures the level of risk and opportunity of any given issue and a star system indicates the CR/SD team’s assessment of how well the company is addressing the issue.

The Dashboard is checked and updated at least twice a year or more frequently if a company has a red traffic light against a headline issue. It is completed by Virgin Management’s CR/SD team in collaboration with the company and is then passed onto the company’s MD/CEO and Managing Partner at Virgin’s management.

TARGET: We will update every

company’s product story by the

end of 2010.

So how does it all fit together?

In essence, Virgin is an international investment group with more than 200 companies worldwide. We hold different levels of ownership of the companies: some are fully owned by Virgin, we share ownership of others and in some cases the Virgin trademark is carried on ventures which are no longer owned by Virgin at all. Complicated? Well, not really….

Although managing the Virgin Group is pretty much a full time job, we have developed a canny way of doing it that keeps things fresh and lively whatever a company does and wherever it’s based. At the centre is Virgin Management which oversees all Virgin companies, providing advisory services and managerial support. Our people in London, New York and Sydney offer regional support and between us and the sector teams we manage Richard’s interests across the whole of the Virgin Group.

As the Virgin businesses are all so diverse and independent, we practise a collaborative and supportive

style of management, although they all make their own operational decisions. We give birth to new Virgin companies, help them develop and set best practice guidelines for crucial elements such as customer service standards, brand management and more recently our vision for Corporate Responsibility and Sustainable Development1 (CR/SD). Then we keep an eye on them as they grow and become fully-fledged members of the Virgin family.

We may be made up of many companies but we are a single brand and so it is vital that we remain consistent in order to be credible. Although Virgin’s management, our various Virgin businesses, Richard himself, Unite (our charitable foundation) all exist as separate and distinct entities, combined we can exert a powerful force in the areas in which we work. Virgin is a lifestyle brand and we now recognise that our responsibility as a consumer champion extends to improving our products and services so that it is easier for our customers to live a sustainable and low carbon life.

1. You can find a definition of SD on page 8

New Economics Foundation – Happy Planet Index 2.0. http://www.happyplanetindex.org/learn/why-we-need-hpi.html

The SD Council is chaired by Virgin Group’s CEO, Stephen Murphy and consists of senior management, Virgin Unite and the CR/SD team.

THE THIRD STEP: RISK AND OPPORTUNITY REGISTER

Key headline risks and opportunities are added to a registe r, which is discussed

at a quarterly SD Council meeting and following this meetin g appropriate

actions are taken .

These governance steps have been designed to help all our companies fulfil their

responsibilities without making the task too onerous. They focus on the benefits

of corporate responsibility and sustainable development to the business, for

example by creating a competitive advantage, ensuring res ource and cost

efficiency, as well as by managing risk.

We need to keep listening to our companies to make sure n ew risks are

identified and solutions found and disseminated as quickly as possible. We at

Virgin believe in putting our trust in robust science and sha ring our methods of

best practice. We are constantly learning and we will comm unicate our progress

to you as we go.

TARGET: We will review and update the risk and opportunity register every six months.

How does this actually work within the Virgin Group?

At Virgin Management, it’s the role of the CR/SD team to have an overview of the main trends, risks and opportunities of global issues, so that we’re well informed and understand how they will affect Virgin businesses (and of course how we affect them). Armed with this knowledge we act as a sounding board for all the businesses. We are also improving our investment and brand criteria so that any new company that joins the Virgin Group will be asked to adhere to our corporate responsibility and sustainable development approach.

The aim is to agree a consensus with all our companies on

what their contribution should be within their sectors and in comparison to their peers. We want Virgin companies to share their thinking and aim for a common goal so that we can achieve more, both by supporting one another and also by pushing each sector in a more sustainable direction. Rather than taking a top down governance approach towards corporate responsibility and sustainable development, we prefer to explain, guide and encourage the Virgin companies. In this way, we will ensure they understand that embracing sustainability as a core value means acting now on relevant issues which will ultimately be beneficial for their bottom line. We must change the mindset that running a business in a responsible and sustainable way means sacrificing growth and profits.

“If you were talking to your mates over a beer about your Product

Story, would you be proud, or would you be ashamed?”

WHAT VIRGIN IS UP TO AROUND THE WORLD…

OVER

200 BILLION STEPS taken by Virgin HealthMiles members (since 2006)

110,000 MOBILE PHONES reused through Virgin Mobile US’ Pass It On programme in six months

500 PLANE TICKETS donated to not-for-profit organisations every year by Virgin America

2 SPACESHIPS being built by Virgin Galactic in a spaceport powered by renewable sources

300 PEOPLE signed up to go on Virgin Galactic flights 200 GROWERS

that Virgin Wines buys from in South America

OVER

1,200 IDEAS sent in to the Virgin Earth Challenge

2,000 PEOPLE partying to a Lady GaGa concert in Toronto in aid of Virgin Mobile Canada’s RE*Generation campaign

OVER

£250,000 donated by Virgin Holidays and its customers to the Travel Foundation and other charities worldwide in 2009

5 VIRGIN FESTIVALS with a car-share programme to encourage festival-goers to car pool

30,000 HOURS of volunteer time generated at Virgin Mobile Festival US 2009 (FreeFest)

20,000 VIRGIN MOBILE LIMITED EDITION RE*GENERATION SAMSUNG PHONES sold to help combat youth homelessness

30 PREVIOUSLY DISADVANTAGED WOMEN working as therapists at Virgin Spa

65 HOUSEHOLDS visited each day thanks to health workers on motorbikes provided by staff at Virgin businesses and set up by

160 SUSTAINABILITY AUDITS completed worldwide at Virgin Holidays’ partner hotels

OVER

1,200 IDEAS sent in to the Virgin Earth Challenge

21 MILLION PEOPLE globally listen to Virgin Radio International’s FM radio programming

2,000 PEOPLE partying to a Lady GaGa concert in Toronto in aid of Virgin Mobile Canada’s RE*Generation campaign

361 KW of solar panels on Virgin Active South Africa health clubs

90 ENERGY & WATER METERS in Virgin Active health clubs

66 SOLAR PANELS at Kasbah Tamadot, a Virgin Limited Edition property

£2.6 MILLION worth of time, funds and gifts-in-kind donated by Virgin Atlantic passengers and staff over 2008/2009

52% AVERAGE WASTE REDUCTION in Virgin Atlantic’s ground operation main sites (between 2008 and 2009)

5,278,389 TONNES OF CO2e Virgin Atlantic’s carbon footprint in 2008

6 CARIBBEAN NATIONALS have gained or are studying for university degrees in Tourism Management thanks to Virgin Holidays scholarships

110 PATIENTS seen every day at The Bhubezi Community Healthcare Centre set up by Virgin Unite and partners and supported by Virgin Limited Edition

515 PIECES OF GYM EQUIPMENT donated to charities by Virgin Active in 2009

12 GREY WATER RECYCLING SYSTEMS in Virgin Active health clubs

3,000 PEOPLE benefiting from the three boreholes installed by Ulusaba, a Virgin Limited Edition property

332 HEALTHZONES, CLINICS AND BIOKINETICISTS in the Virgin Life Care network

175 PEOPLE work for businesses run by young entrepreneurs supported by the Branson School of Entrepreneurship, set up by Virgin Unite

72 SRI LANKAN BEACH SELLERS retrained as tourist guides through Virgin Holidays’ support of The Travel Foundation

100,000 kWht generated by the solar panels on Virgin Active health clubs in Venice (from April 2008 - October 2009)

80,000 kWht generated by the solar panels on Virgin Active health clubs in Brescia Freccia Rossa (from May 2008 - September 2009)

20,000 VIRGIN MOBILE LIMITED EDITION RE*GENERATION SAMSUNG PHONES sold to help combat youth homelessness

30 PREVIOUSLY DISADVANTAGED WOMEN working as therapists at Virgin Spa

65 HOUSEHOLDS visited each day thanks to health workers on motorbikes provided by staff at Virgin businesses and set up by Virgin Unite

11 DUCKS & 4 FLAMINGOS at the Roof Gardens, a Virgin Limited Edition property

244,681 VIRGIN BOOKS printed on FSC paper

25,000 PEOPLE a year zipping past traffic on Virgin Limobikes1 MILLION

offset Virgin Blue flights

45,000 PEOPLE signed up to Virgin Games to play safely online

25,000 BOTTLES of Fairtrade wine sold by Virgin Wines every year

13,000 BOTTLES of organic wine sold by Virgin Wines every year

60 MARRIAGE PROPOSALS on Virgin Balloon Flights in 2009

500 JACKETS and bags remade from retired Virgin hot air balloons by Worn Again in 2009

6,000 MOBILE PHONES traded in by Virgin Media customers in 2009

35,000 RUNNERS in the London Marathon sponsored by Virgin Money UK

11,000 HOMES powered by the energy saved through Virgin Trains’ regenerative brakes each year

400,000 DISCOUNTED TICKETS sold each month by Virgin Trains

400 CHILDREN provided with free home access to the internet by Virgin Media in partnership with the e-learning foundation (summer 2008 - summer 2010)

1.6 MILLION SET TOP BOXES AND MODEMS re-used and recycled by Virgin Media in 2008

200 ELDERLY PEOPLE in 17 sheltered housing schemes provided with free internet access by Virgin Media (2008 - 2011)

10 COMPANIES working in renewable energy and resource efficiency invested in by Virgin Green Fund

4 BIODIESEL GENERATORS used on the stages at the four V Festivals in Australia

1 CUP RECYCLING SCHEME at a V Festival

72 ENERGY METERS in Virgin Active health clubs

30 PEOPLE enjoying a relaxing spa treatment everyday with Virgin Experience Days

VIRGIN TIMELINE… We’ve done a lot.

the back of 3 pages -

First issue of Student Magazine

The first Virgin Record Shop opens in Oxford Street, London

First Virgin Recording Studio opens at “The Manor” near Oxford, England

Virgin Publishing (Virgin Books) is formed

Virgin Records is sold to Thorn EMI

Virgin Radio hits the airwaves on AM across the UK

Virgin Direct Personal Financial Service opens for business. Virgin Cinemas and Virgin Limobikes launches in the UK. Virgin Radio launches on FM in London

Virgin Galactic, Virgin Games, and Virgin Spa launch. Virgin Unite, the non-profit foundation of the Virgin Group is established. Virgin Active launches its first clubs in Italy

Virgin Mobile launches in Canada. Active expands into Spain and Portugal. Virgin Blue joins with the Government of Samoa to launch ‘Polynesian Blue’

Start of Virgin Mail Order operation

Virgin Radio goes live in Thailand, Virgin Credit Card launches in Australia

1968 1971 19721970

2004 200520032002

1993 1991 1992

Virgin Mobile arrives in the US, Virgin Megastore launches in Australia

We’ve done a lot. In fact, we couldn’t possibly fit everything we’ve done on to

but here are some of our best bits…the back of 3 pages -

Virgin Recording Studio opens at “The Manor” near Oxford, England

Virgin Direct

Financial opens

for business. Virgin Cinemas

Virgin Limobikes launches in the

Virgin Radio launches on FM in London

Virgin Trains and V Festival UK start up. Virgin Express airline takes off. V2 Music is created and signs The Stereophonics

Virgin Active launches its health and lifestyle centres. Virgin Mobile launches Virgin’s first consumer tele- communications venture. Ulusaba is acquired by Virgin Hotels

Virgin Mobile launches in Canada. Virgin

expands into Spain and Portugal. Virgin Blue joins with the

overnment of Samoa to launch ‘Polynesian Blue’

Virgin Green Fund and Virgin Life Care are launched. Virgin Festival launches in Canada and the US, Virgin Money launches in South Africa and Virgin Mobile launches in France and South Africa. In the UK Virgin Mobile merges with NTL/Telewest. Virgin HealthMiles launches nationally across the US

Virgin Media arrives as the UK’s first company to offer TV, broadband, phone and mobile. Virgin America takes to the US domestic skies. Virgin Radio Italy launches. Al Gore joins Richard to announce the Virgin Earth Challenge. Virgin Money launches in the US

We set up Virgin Mobile India. Virgin Radio in the UK becomes Absolute. Virgin Radio launches in France, Toronto, Turkey and Dubai. TV station Virgin 17 launches in France

Launch of Virgin Record Label and Virgin Music Publishing

Virgin Records signs the Sex Pistols

1977 1984 1972 1973

2006 20082005

1995 1996 1997

1999

2007

Virgin Trains wins the 15 year franchise. Virgin Radio in the UK is acquired by Ginger Productions

In fact, we couldn’t possibly fit everything we’ve done on to

but here are some of our best bits…

Virgin Atlantic Airways and Virgin Cargo are born and a year later Virgin Holidays is formed

Virgin Hotels launches (Virgin Limited Edition)

Virgin Active launches its health and lifestyle centres. Virgin Mobile launches Virgin’s first consumer tele- communications venture. Ulusaba is acquired by Virgin Hotels

Virgin Experience Days launches. Virgin Active launches in South Africa. Virgin Megastore welcomes its first Middle East customers

We set up Virgin Mobile India. Virgin Radio in the UK becomes Absolute. Virgin Radio launches in France, Toronto, Turkey and Dubai. TV station Virgin 17 launches in France

(so far) Virgin Money acquires Church House Trust, our first steps into banking, Virgin buys into Assura Medical, our first entry into the UK healthcare market. We look forward to the first Virgin sponsored London Marathon – so get your running shoes ready…

Virgin Records

Virgin Wines; Virgin Mobile Australia and Virgin Blue all launch

198819871984

2008 2009 2010

1999 2000 2001

We partner with Brawn GP for the Formula 1 season and Jenson Button takes the winner’s podium in his first race. We sell our stakes in Virgin Mobile Canada and Virgin Mobile US but both will continue to carry the Virgin brand. Virgin becomes official sponsor of the London Marathon and launches Virgin Money Giving. We launch Virgin Digital Help in the UK. Virgin Mobile France buys Tele2, its mobile telecom rival. Launch of V Australia with flights between Australia and the US. Virgin Radio launches in Jordan, Montreal, Ottawa and Vancouver. In December we launch our

Formula One team Virgin Racing

Virgin Records America is founded and Virgin Airship & Balloon Company (Virgin Balloon Flights) is formed

Virgin Trains wins the 15 year franchise. Virgin Radio in the UK is acquired

inger Productions

FLYING HIGH “We all know that

aviation has some serious environmental impacts - particularly on our climate. Although there’s no prospect of a 100% sustainable aeroplane taxiing down the runway any time soon, that’s not a call for complacency. There’s huge potential to take action now to at least reduce aviation’s impact and increase the chance that, one day, it might approach sustainability. I’m encouraged that Virgin is both being frank about the problems - and engaged with the solutions.”

Martin Wright Editor in Chief at Green Futures

VIRGIN ATLANTIC

VIRGIN AMERICA

VIRGIN BLUE

BRUSSELS AIRLINES

AIR ASIA X

Modern aviation has changed the way we live, making the world a much smaller place. We now have a greater understanding of other civilisations and in many cases our cultures have started to merge. Air travel is much faster and more reliable than other modes of transport over large distances1. Travelling is now a reality and an achievable goal for many people who could never have afforded it before. We are proud to have been in aviation for 26 years and believe in a sustainable future for the industry.

We believe in the positive contribution global travel makes to the world. Flying is crucial to the global economy and central to many people’s lifestyles – it links families, communities and businesses resulting in vibrant and successful cultures and economies .

Aviation also has negative impacts. It produces a significant contribution to man-made carbon dioxide (CO2) emissions . It is central to the climate change debate as it is one of the fastest growing contributors of greenhouse gases (GHGs) and is forecasted to continue growing for the next thirty years2 . The aviation industry

recognises its environmental impacts and is working to minimise them while maintaining and enhancing the benefits it can bring to economies and societies3. The industry’s first step towards a carbon-free future is to work towards carbon neutral growth – meaning that any growth above the baseline will be matched by equivalent reductions in other sectors.

Aviation represents by far the biggest environmental impact of all the Virgin businesses. Climate change is therefore top of the agenda for both the Virgin Group and Virgin branded airlines and we are committed to preventing runaway climate change . We won’t hide from the difficult arguments surrounding aviation and the environment, in fact, we want to be right at their heart, pushing our industry, our suppliers, and our regulators to be bolder and to help make flying a more sustainable way to travel. Air travel is not about to disappear, particularly in the developing world. Airlines, such as Air Asia X (part owned by Virgin) are growing rapidly and giving more and more people and businesses access to an increasing number of destinations and markets.

Aviation’s global economic impact* is estimated to be 7.5% of world GDP. *direct, indirect, induced and catalytic

Source: Air Transport Action Group. Air transport drives eco- nomic and social progress. The economic and social benefits of air transport 2008. (http:// www.atag.org/files/ATAG%20 brochure-124015A.pdf)

As the Virgin Group owns a stake in many airlines around the world, it is now possible to circumnavigate the world on a Virgin plane. We own stakes in eight airlines, Virgin Atlantic, Virgin America, Brussels Airlines, Air Asia X and the Virgin Blue Airlines Group (Virgin Blue, V Australia, Pacific Blue and Polynesian Blue) as well as being involved with private planes.

Global CO2 emissions from aviation are equivalent to about

1.9 2.4% of total global CO2 emissions Source: Committee on Climate Change. International Aviation

CO2

THE AMOUNT OF CO2 EMISSIONS FROM AVIATION IS EXPECTED TO GROW BY

AROUND 3-4% PER YEAR. Source: International Civil Aviation Organisation, Environnent Section.

http://www.icao.int/icao/en/env/aee.htm

1. Oxford Exonomics. Avia- tion: The Real World Wide Web (http://www.oef.com/ OE_Cons_Aviation.asp)

2. Friends of the Earth (May 2005) Briefing: Aviation and the economy (http:// www.foe.co.uk/resource/ briefings/aviation_and_the_ economy.pdf)

3. Air Transport Action Group. Air transport drives eco- nomic and social progress. The economic and social benefits of air transport 2008. (http://www.atag.org/ files/ATAG%20brochure- 124015A.pdf)

4. “Virgin Airlines” refers to all airlines owned by Virgin or branded with the Virgin name.

The UK Industry Taskforce on Peak Oil and Energy Security (ITPOES) is a group of British companies concerned that threats to energy security are not receiving the attention they merit. It has produced two reports that can be read at: peakoiltaskforce.net

We at Virgin believe that the Virgin airlines4 can have a positive influence on this movement. Although we represent a small part of the aviation industry we have a high profile and a loud voice, which we are using to push the debate forwards. That is why:

legislation on airline CO2 emissions

fuels

the Aviation Global Deal Group5 and the Sustainable Aviation Fuel Users Group6

Industry Taskforce on Peak Oil & Energy Security

airline run offset programme

passenger airline to join the US Environmental Protection Agency’s Climate Leaders programme, and the first US airline to document its carbon footprint via internationally-accepted standards on The Climate Registry

Carbon World” which outlines our thoughts on the subject. To read the report visit http://www.virgin.com/people-and-planet.

Aviation accounts for 7 out of the 8 million tonnes of CO2 emissions emitted annually by the Virgin Group.

5 Aviation Global Deal Group (www.agdgroup.org)

6 Sustainable Aviation Fuel Users Group (www.safug.org)

Virgin Blue’s carbon offset launch 2007.

Holding the globe is (from left to right) Malcolm Turnbull (the Australian Environment Minister in 2007) and Brett Godfrey (CEO Virgin Blue)

Virgin Blue passenger who offset the millionth seat receiving a memento from Professor Tim Flannery.

The milestone of one million guest seats offset was reached in July 2009.

The members of the AGD are:

Group

emissions reduction

The AGD proposal suggests a carbon cap and trade system that would include all airlines. A CO2 cap or target would be established, creating a number of carbon allowances for aviation. A proportion of those allowances would be auctioned to airlines, with the revenues being hypothecated for climate change related projects in the developing world. You can get more information on the AGD website: www.agdgroup.org

Gold Standard offsetting makes sure that the money goes directly to a project which has immediate positive impacts, both in the local communities and the environment.

Virgin America’s fleet has a lower carbon footprint than other US airlines due to its upfront investment in new

saving practices.

Emissions Carbon Dioxide emissions from aviation represent over 90% of the Virgin Group’s entire carbon footprint making it our top priority. The Virgin branded airlines are committed to reducing emissions per passenger through a number of efficiency measures including the adoption of new technologies and by investing in new ultra-efficient aircraft.

Airlines have two sources of CO2 emissions: those from the tailpipe of the aeroplane7 and those from the ground facilities. As the tailpipe emissions account for around 99% of the total, that is where the airlines’ main focus lies:

decrease in emissions per passenger on board8 due to investment in new aircraft9

carbon emitted per passenger kilometre by 30% between 2007 and 2020

25% more fuel efficient than other fleets in the US .

Our major airlines also offer Gold Standard for their carbon offsetting:

Greenhouse Friendly™ Program11

12.

Although all the Virgin airlines are working hard to reduce the emissions per passenger, total emissions will continue to grow in the short to medium term in line with business growth. Virgin Atlantic predicts that its emissions will peak within the next decade owing to efficiency gains outstripping the airline’s growth.

Global Policy We believe it is critical for governments to agree a global framework for CO2 emissions reductions from aviation; a framework that is both environmentally effective and economically efficient .

Emissions from international aviation are not currently included in the Kyoto Protocol but the Virgin airlines, along with their industry peers, have united behind the principle of a global framework specifically for the sector.

The Virgin airlines believe that a successful global climate change framework for the industry should be based on the following key principles:

environmentally effective. It must impose a robust cap on overall emissions and truly allow aviation to play its part in meeting global greenhouse gas reduction targets

all airlines based on their emissions and establishing a sectoral approach that sets out specific targets for aviation whilst allowing airlines to access cost effective emissions reductions from other sectors through the carbon markets

distortion

consequences such as carbon leakage13, whilst upholding the central pillar of the UNFCCC14, of “common but differentiated responsibility” - where developed countries bear a greater burden of responsibility for emissions reductions as they have benefited from carbon intensive industries for much longer than developing economies.

Virgin Blue and Virgin Atlantic are members of the Aviation Global Deal Group (AGD Group), a group that came together to think about practical solutions for how aviation emissions could be included in such a framework . The AGD Group’s policy mechanism, which we have proposed as one of the ways in which aviation can be brought into a global framework, recommends that this common but differentiated responsibility is achieved by distributing revenues generated by a sector-wide cap and trade scheme . We believe a proportion of aviation’s carbon allowances should be auctioned, with the proceeds going to climate change related projects in the developing world.

The Virgin airlines support the principle of carbon cap and trade as the most effective way of maintaining a robust cap on CO2 emissions whilst also allowing the market to decide the most effective way to achieve the necessary emissions reductions.

However, there is a concern that domestic or regional schemes cannot be truly effective for an international industry such as aviation. It would make sense to develop a global scheme for the sector, thus minimising competitive inequalities between different carriers and imposing a much more meaningful absolute cap on carbon emissions worldwide.

Here is what our companies are doing to

make flying high more sustainable:

7 This included the APU

Power Unit generates electricity when the plane is on the ground).

8 Measured in revenue passenger / kilometre (an industry measure related to the number of passengers carried divided by the total number of kilometres flown)

9 Since commencing operations in 2000

10. My Climate (www.myclimate.org)

11. Australian Government’s Greenhouse Friendly™ Pro- gram (www.climatechange. gov.au/greenhousefriendly/)

12. Carbonfund.org (www. carbonfund.org)

13. For a definition of carbon leakage go to page 21.

14. United Nations Framework Convention on Climate Change

This innovative study brings together airlines, defence and research organisations, governments and fuel providers to identify opportunities and barriers to achieving a predetermined sustainable fuel mix by 2025. (An Australasian Region SAFUG Initiative).

Peak Oil is the point at which the depletion of existing reserves can no longer be replaced by additions of new flow

it is the point at which the world peaks in oil production. Up until now we have always had more oil to use than there was in the previous year. However as oil is a finite resource this cannot continue indefinitely. Once oil production peaks the world will have to start to use less oil each year due to dwindling supply which will lead to an increase in the price of oil.

Source: The UK Industry Taskforce on Peak Oil & Energy Security. The Oil Crunch: Secur- ing the UK’s energy future. (This report was part funded by the Virgin Group).

15. http://www.boeing.com/ commercial/environment/ pdf/sustainable_aviation_ fuel_users_group.pdf

Virgin Atlantic biofuel demonstration flight

Fuels The era of ‘cheap oil’ is coming to a close and peak oil is fast approaching as extraction and refining become increasingly difficult and more environmentally damaging and energy intensive. Oil is a finite resource and technological advancements can only go so far. We need to look for alternative aviation fuels, not only because of the urgency arising from climate change, but simply because we are running out . Along with other stakeholders, the Virgin airlines are championing the development of fuels based on second generation biofuels that are harvested from sustainable sources in order to reduce the sector’s dependence on declining oil supplies and reduce its carbon footprint.

However, the sustainability debate surrounding biofuels is extremely complex and biofuel production has been associated with a swathe of unintended consequences including; the link between biofuel production and increases in food prices, the loss of natural habitats and the fact that many are so fossil fuel intensive in their production, that they may have no carbon benefit at all! Although many biofuels have been made unsustainably and inefficiently in the past, we believe they have the potential to become sustainable and efficient in the future.

Any large scale move towards biofuels would occur incrementally over time. Blends of biofuel and conventional kerosene would be introduced, and then over time the proportion of biofuel will be increased. However, even with low percentage blends, the sheer quantities of biomass required to produce sufficient fuel for aviation would be colossal. Even with the sustainability issues

overcome, biofuels are not yet being produced on a viable scale, although this emerging sector is growing fast.

Second and third generation biofuels do not use food products as their feedstocks. These biofuels would be made from waste biomass or plants such as algae and salt water tolerant halophytes and could be commercially viable in sufficient quantities for the aviation industry to use within the next five years. Virgin Atlantic anticipates that up to 5% of its fuel will come from sustainable biofuels by 2015 and Virgin Atlantic along with Virgin Blue and Virgin America aspire to a 10% biofuels mix by 2020.

What Virgin is doing with regards to biofuels:

to use biofuel in a demonstration flight

Fund, is investing in research and development of emerging fuels (for more information on the Virgin Green Fund go to page 49)

Biofuels

the Sustainable Aviation Fuel Users Group15 (SAFUG)

working with other regional members to commission a roadmap for the commercialisation of sustainable aviation fuels in Australia and New Zealand .

Roundtable on Sustainable Biofuels

creating standards and audit protocol s to make it

possible through independent third pa rty certification

to identify biofuels that come from sus tainable

sources. Third party certification ensure s that new

supply chains develop to high environ mental and

social standards, so that concerns abo ut competition

with land for food cultivation, deforesta tion and

and reconciled early on (read more on the RSB on

page 37 or on their website at: www.rs b.org).

The Sustainable Aviation Fuel Users Group is an initiative to promote sustainable, second-generation biofuels for the aviation industry. Virgin Atlantic made a declaration, along with other airlines, of its commitment to advance the development, certification, and commercial use of drop-in sustainable aviation fuels that do not compete with food cultivation for land or water. These have lower life-cycle carbon footprints than traditional jet fuel, do not lead to deforestation or the loss of high value, endangered or sensitive ecosystems and retain socioeconomic benefits in the communities in which they are cultivated.

(www.safug.org)

On 24 February 2008, Virgin Atlantic became the first airline in the world to operate a commercial aircraft on a biofuel blend. The Boeing 747 flew a short flight from London to Amsterdam, using a 20% biofuel/80% kerosene blend in one of its four engines. The purpose of the demonstration flight was to move the debate forward by proving that biofuels are technically a feasible solution. Virgin Atlantic knew that the biofuel used for its test flight would not be commercially viable for the industry, but wanted to demonstrate that biofuels could be a future solution for the industry.

What is Emissions Trading?

Emission Trading Scheme (ETS) means that a robust cap is imposed on

carbon dioxide emissions from different polluting industries. Carbon

allowances are issued to participating companies up to the level of

the cap. At the end of the year each company has to have sufficient

allowances to cover each tonne of CO2 they’ve emitted during the year.

Because the ETS is designed to encourage lower carbon behaviour by

companies, airlines won’t be given sufficient allowances to cover their

activities and will have to purchase these from other industries who have

been able to reduce their emissions more quickly. The European Union

Emission Trading Scheme is going to include aviation and will come into

effect in 2012.

WHAT IS CARBON LEAKAGE? Carbon Leakage is where an increase in emissions occurs outside a region due to a policy to cap emissions in that region. With the inclusion of aviation within the European Union Emission Trading Scheme (EU-ETS) there is a risk that carriers will move activities outside the EU to avoid the EU-ETS costs or that increased costs will lead to loss of market share with demand shifting to non EU-ETS affected carriers. This would result in no overall reduction in global carbon emissions as the emissions would simply be shifted to other markets and regions. This is one of the reasons why we support a global sectoral approach for aviation and believe a worldwide solution is needed for what is a worldwide problem.

Operational efficiencies All airlines need to invest in modern fleets that operate as efficiently as possible and are backed up by low carbon ground support systems . But airlines are only one of the many stakeholders in the aviation industry and so it’s fundamental that the entire sector works together. The speed at which the aviation industry can reduce its emissions is mainly reliant on manufacturers to deliver technological step changes in aircraft and engine design, the availability of sustainable low carbon fuels and also improved air traffic control measures to ensure more efficient use of airspace.

What the Virgin airlines are doing on energy efficiency:

to reduce CO2 and NOx16 emissions

providers for more efficient airspace routings

Team that examines every aspect of flight operations to continuously improve efficiency. Recent initiatives include installing winglets on the 737NG fleet as well as applying a coating to the aircraft that reduces drag and therefore emissions

efficiently, and cost index flying which is the practice of regulating cruising speeds to reduce fuel burn

champions new best practice and efficiency measures .

Since aviation can have a impact on communities that are local to airports, our airlines have initiatives at airports around the world which directly benefit local communities. For example:

reduced since 2001/2 despite an increase in fleet size

supply for ground operations at airports around the world will reduce emissions and improve local air quality

has a reduced noise footprint.

Virgin Atlantic target: To reduce energy consumption at all the UK sites that it controls by 10% by 2012 and 20% by 2020.

reduced noise footprint

16. Nitrous Oxide

Virgin Atlantic target:

A 30% reducti on in the carbo

n intensity

of each passen ger and cargo

kilometre

flown between 2007 and 202

30% reduction

Working with communities Each year, Virgin Atlantic, Virgin Unite and Virgin Holidays, along with the support of their passengers and staff, collectively invest millions of pounds in community projects within the destinations they travel to and work in. Under the Change is in the Air programme, Virgin Atlantic and its passengers will be supporting two organisations, The Travel Foundation and Free the Children, which both work towards sustainable futures for young people in its destinations.

Virgin Blue’s “Red Jet” charity foundation is currently focusing on “Indigenous Communities and Natural Environments” in Australia. The foundation has provided assistance to several projects including a residential energy efficiency programme in Alice Springs and a savannah fire management project in Arnhem Land.

Virgin America works with the California State Parks Foundation and selects California-based carbon offset projects via its partnership with Carbonfund.org. Virgin America also hosts regular e-waste collection events to clean-up local beaches and parks.

Sustainable tourism Aviation has played a key role in expanding tourism, which has in turn boosted air travel. Over 40% of international tourists now travel by plane17 and in the UK growth in air travel is being driven by an increase in international leisure flights18 .

Tourism can be a catalyst for positive social and economic development, but it is becoming increasingly evident that some aspects of tourism are currently unsustainable . The Virgin airlines, along with Virgin Holidays and Virgin Limited Edition, are working towards gaining a greater understand of their impacts and promoting sustainable tourism. To find out more go to ‘We’re all going on a Summer Holiday’ on page 24.

There are now five holiday flights to every business flight made overseas by a UK resident. Source: Cairns, S., Newson, C., Boardman, B. and Anable, J. Predict and decide Aviation, climate change and UK policy. Environmental Change Institute Oxford University.

Air tourism accounts for 8 million direct jobs and 18 million indirect jobs as well as $396 billion US in global GDP. Source: Oxford Exonomics. Aviation: The Real World Wide Web

17. Air Transport Action Group. Air transport drives eco- nomic and social progress. The economic and social benefits of air transport 2008. (http://www.atag.org/ files/ATAG%20brochure- 124015A.pdf)

18. Cairns, S., Newson, C., Boardman, B. and Anable, J. Predict and decide Avia- tion, climate change and UK policy. Environmental Change Institute Oxford University.

WE’RE ALL GOING ON A SUMMER HOLIDAY VIRGIN HOLIDAYS VIRGIN LIMITED EDITION

In the introduction we talked about how important it is that our vision of a low carbon lifestyle in the future is desirable and free from sacrifice. Holidays represent happy times in our lives but the travel and tourism industry, like many others, makes both positive and negative contributions in the wider world. At Virgin, we describe sustainable tourism as ‘when locals benefit as much as visitors and where the resorts we enjoy today are preserved for others to enjoy in the future’ .

Travel and tourism is the world’s largest industry and a critical component of the global economy, fuelling growth and employment . It represents 10% of global GDP1 and 8% of employment worldwide2 . It also encourages development of infrastructure, such as transport networks, sanitation works and other public amenities. Many developing countries are highly reliant on tourism and in some countries it can represent up to 30% of GDP3. The industry’s predicted growth reflects the increasing mobility of populations in emerging economies: in 1995

there were 565 million international tourist journeys made and that figure is forecast to grow to over 1.6 billion by 20204.

With such massive growth comes huge challenges; overdevelopment, over-reliance on tourism for economic growth in developing countries, an ever increasing carbon footprint, depletion of destinations’ natural resources and damage to land and ocean based ecosystems. The challenges facing the tourist industry are enormous and cover many different and complex issues that are hard to unpick. It is therefore critical to ensure that our travel and tourism related businesses are doing their best to address these challenges.

Overdevelopment is a key challenge which is likely to worsen as travel becomes increasingly accessible. Despite the economic benefits that tourism can bring to a region, there are often some environmental and social trade-offs for the local population. When a new destination suddenly becomes popular, resorts can be

Tourism leads to a wide range of potential employment opportunities by generating jobs across a whole range of skills and occupations. Many of the jobs in tourism attract younger workers who might otherwise emigrate in search of employment. Source: Aviation: The Real World Wide Web. Oxford Economics.

Globally, tourism directly employs 79 million people and in total supports 226 million jobs when downstream effects are taken into account. Source: Aviation: The Real World Wide Web. Oxford Exonomics.

Holidays are great for recharging our batteries and allowing us to relax both mentally and physically. Travelling is also a great way to expand our horizons and the growth of the travel industry in recent years has been invaluable in increasing our understanding of other cultures and customs.

“Sustainable tourism is tourism that leads to

the management of all resources in such a way

that economic, social and aesthetic needs

can be fulfilled while maintaining cultural

integrity, essential ecological processes, biological diversity and

life support systems”. Source: World Tourism Organization

(www.unwto.org)

growth & employment PLANE

TRAIN BO AT

INCREASING MO BILITY OF POPUL

ATIONS

IN EMERGING EC ONOMIES

1. GDP – Gross Domestic Product

2. World Travel & Tourism Council Leading the Chal- lenge on Climate Change February 2009

3. Why your world is about to get a whole lot smaller. Jeff Rubin. Pg 235

4. UNWTO World Tourism Barometer

quickly overdeveloped in a frenzy of hotel and amenity building, only to decline a few years later when the development, which originally attracted tourists, has been taken too far resulting in them seeking out new ‘untouched’ destinations where the cycle starts over again.

Another concern associated with the development of tourist destinations is ensuring that the economic gains of foreign-owned tourism businesses filter through to the local communities via employment and procurement of goods and services. Some holidays can result in guests spending little time and money outside their resort hotels, limiting the opportunities for local people to generate income from tourists. It is essential that the relationships that foreign- owned tourism businesses and tourists have with their host communities are based on trust and respect rather than exploitation5.

As a tour operator, Virgin Holidays tailor-makes trips including flights, hotels, cruises, activities and transfers which are all provided by third party suppliers. This means that the majority of its impacts are outside its direct control and it is therefore actively encouraging its suppliers to be aware of their impacts and work to reduce them. Virgin Holidays’ commitment to sustainability is articulated as its threefold Human Nature Promise to:

address its direct impacts

suppliers fairly and honestly and to encourage them to be more sustainable

communities it operates in through its ‘Help Youth Shine’ programme .

‘Help Youth Shine’ Virgin Holidays has partnered with the local council, schools and community organisations in its home town of Crawley, UK to raise the aspirations of young people at risk of becoming NEET (Not in Education Employment or Training). ‘Help Youth Shine’ is a programme to help children and young people who don’t get access to the opportunities they deserve to achieve their full potential.

The Travel Foundation is an independe nt UK charity which acts as

mainstream destinations worldwide

integrating sustainability into every as pect of their business

www.thetravelfoundation.org.uk

5. Travel Concern (http://www. tourismconcern.org.uk/

Virgin Holidays’ joint project with Oxfam and The Travel Foundation to help Caribbean farmers grow produce to supply to local hotels.

Al Maha Desert Resort and Spa, Dubai.

Costa Luminosa. Virgin Holidays

Virgin Holidays is the only mainstream tour operator to automatically include a charity donation in the cost of every holiday it sells. In 2009 this raised much needed funds to support The Travel Foundation in helping people and the environment in holiday destinations worldwide.

Here is what our companies are doing to make going on holiday more sustainable:

971 hours volunteering in the community in the UK 2008/09

Supporting local economies Virgin Holidays contributes to the economic development of developing countries in which it operates. Currently it is the largest scheduled UK tour operator to the Caribbean - the most tourist dependent region in the world. Virgin Holidays makes it easy for customers to ‘give something back’. Every single holiday sold includes a donation to the sustainable tourism charity, The Travel Foundation, raising hundreds of thousands of pounds every year . As part of this partnership, it supports local charities with donations and encourages staff to volunteer . It supports small community

projects in the Caribbean such as agro-linkage development and raises awareness about sustainable seafood issues in the Caribbean by working with The Travel Foundation and the Marine Stewardship Council6.

The Virgin Limited Edition properties are working hard to ensure that they have a positive economic impact on their local communities as well as creating wider reaching benefits .

At Kasbah Tamadot in Morocco 90% of employees come from the local community. Kasbah Tamadot provides staff with free English lessons and covers 80% of their medical expenses. It supports the local

Virgin Limited Edition includes: Necker Island in the British Virgin Islands; Ulusaba Private Game Reserve in South Africa; a hotel called Kasbah Tamadot situated in the foothills of Morocco’s Atlas Mountains; a ski chalet in Switzerland called The Lodge; Sa Terra Rotja, a villa on Mallorca’s northern coast; a luxury catamaran called Necker Belle and The Roof Gardens in London which includes a restaurant, events venue and Private Members Club.

Tourist

6. The Marine Stewardship Council (www.msc.org)

Ulusaba Private Game Reserve in South Africa, a Virgin Limited Edition property

PROJECTS PARTNER

HERE ARE SOME EXAMPLES OF PROJECTS THAT VIRGIN H

OLIDAYS HAS

CARRIED OUT TO SUPPORT L OCAL COMMUNITIES IN ITS D

ESTINATIONS:

Nataana is now able to go to school, because visitors are taking a new excursion to Enkerari village in the Maasai Mara. Income from tourists is being used to provide education for the children, as well as basic sanitation, running water and access to health care. Sustainable excursions have helped six communities in Kenya increase earnings by up to 800% and are now being extended to 27 more villages within the Maasai Mara.

7. Oxfam (www.oxfam.org.uk)

An annual scholarship programme for Caribbean nationals to study for a degree in Tourism Management. Higher education in the Caribbean is often prohibitively expensive and due to the lack of loans or other forms of funding, many potential scholars miss out

Caribbean Hotels and Tourism Education Foundation (CHATEF)

Agro-tourism linkages development - helping Caribbean farmers to grow produce and encouraging local hotels to purchase from them, rather than relying on imported goods

Oxfam7 and The Travel Foundation

Boosting incomes - helping ensure Maasai villagers gain a greater share of the money that tourists pay to visit their villages

The Travel Foundation and Tribal Voice

Teaching schoolchildren in Tobago, St Lucia and Jamaica to grow herbs and farm honey which they then sell to hotels. This has helped the children raise money for their schools while also teaching them business and self sufficiency skills

The Travel Foundation

Giving students from Johannesburg townships, like Soweto, the skills and confidence they need to set up their own businesses

Virgin Unite’s Branson School for Entrepreneurship

Raising awareness of sustainable seafood options amongst hoteliers, restauranteurs and tourists and supporting the development of sustainable fish farming in the Caribbean

The Travel Foundation and the Marine Stewardship Council

Retraining beach sellers in Sri Lanka as tourist guides, resulting in higher and more stable incomes

The Travel Foundation

Travelife is a scheme set up by the Federation of Tour Operators and supported by the EU, to encourage sustainability in tourism. Its principal function is to audit tourism business for sustainability, reward those taking action and drive improvements across the industry. For more information see www.its4travel.com

Pride ‘n Purpose* organises trips for guests to the local area around Ulusaba Private Game Reserve in South Africa. All proceeds are directed back into the community and so far the charity has:

hole

pumps

Bhubezi clinic for the communities around the game reserve

house orphaned and vulnerable children

crèche and a day care centre

(*Pride ‘n Purpose is jointly funded by Virgin Limited Edition and Virgin Unite)

160 audits have been completed worldwide, with 44 Travelife Bronze, Silver and Gold award winners.

community by buying all fruit, vegetables and toiletries locally. With the assistance from Kasbah Tamadot the local village has also installed a well and an electricity supply. Kasbah Tamadot and Virgin Unite work hand in hand to help people from the local communities set up sustainable enterprises such as a carpet workshop and a craft house which are both run and managed by locals .

At Ulusaba Private Game Reserve in South Africa 100% of the staff are from South Africa. The property founded Pride ‘n’ Purpose, a charity that supports the local community and with the help of Virgin Unite, has done extensive work for the local communities . Ulusaba buys 99% of its food from South Africa including crafts, toiletries, wine, linen and towels. The nearby community provides supplies equivalent to at least 10% of the property’s total expenditure.

Environmental impacts Virgin Holidays and Virgin Limited Edition want to ensure that their presence does not lead to the degradation of local environments or cultures.

Virgin Holidays’ vision is to create a great holiday experience that has minimal impact and maximum benefit for local people and communities. It is working to reduce the

environmental impact of the hotels in its portfolio by supporting the Travelife Sustainability Award scheme8 . Using this system, hotels are audited and rewarded with Bronze, Silver, or Gold awards according to their sustainability performance, and recommendations are made on how to improve. Measures include energy, water and waste management, conservation and biodiversity, treating people fairly, choice of suppliers, benefiting communities and vulnerable groups, and staff and customer engagement. At the moment 43% of Virgin Holidays’ customers stay at an audited hotel .

Virgin Holidays provides staff and customers with information on the importance of environmental issues while encouraging them to act responsibly and offset the carbon emissions generated by their holidays9. This information is sent with tickets, and is included in resort guides and hotel books. The Travelife scheme also provides customers with the sustainability credentials of hotels so they can factor this into their holiday choice. Virgin also invests the profits and dividends from its holidays and transport businesses in a number of renewable energy and resource efficiency ventures through initiatives such as the Virgin Green Fund and Carbon War Room (for more information see the Virgin Green Fund page 49 and Carbon War Room page 76).

AMSWELL MAPP age 14 Amswell’s family is dependent on fishing, however

incomes of up to 40%. Amswell is now learning about fish farming at his school. He learns how to farm freshwater tilapia, which are herbivores/vegetarian – so they don’t need to be fed wild caught fish. The fish farmed at the school are being sold to hotels and restaurants in the area, providing the school with additional income for books and other materials as well as helping to maintain the reef’s fish stocks. Over the next two years the project aims to supply 20% of the fish eaten in local hotels and restaurants.

8. Its4travel.com

9. The Air Travel CO2 calculator at climatecare.org

This effort is spearheaded by Eve Branson. The Eve Branson Foundation aims to help the local people in the long term by setting up sustainable enterprises.

Virgin Holidays target:

For all its top tier

suppliers to be Travelife

award winners by 2012.

Virgin Limited Edition, which owns and manages properties, has considerable scope for reducing its impacts. Each property is working individually to reduce its environmental footprint and Virgin Limited Edition has set an ambitious target to achieve the gold standard for all its properties within the next two years through Travelife10. So far both Ulusaba Private Game Reserve and The Lodge in Verbier have been audited and have achieved Travelife Gold. To be awarded Travelife Gold all the properties will need to demonstrate that advanced sustainability actions have been taken and must be able to prove continual improvements, as well as how they are actively communicating their progress.

Progress to date in the Virgin Limited Edition properties includes:

swimming pool and hotel

to power the airstrip building and uses geysers for heating hot water

two powered ventilation systems to heat the pool and jacuzzi thus reducing their energy consumption. The Lodge also operates on 100% hydropower and for its recent refurbishment it made sure that all timber and wooden furniture were from reclaimed sources

clean garden waste and install a wormery as well as trying to source locally as much of its food as possible to reduce food miles

provide 25% of its power

to increase bulk purchasing, recycling and composting wherever possible. Waste in luxury properties is always a challenge but one which the Virgin Limited Edition properties are actively addressing following environmental audits

they will not buy, for example foie gras, and they make use of the WWF sustainable endangered fish list.

10. www.travelife.eu

Kasbah’s solar panels have reduced energy

consumption by 40%.

The Roof Gardens in London, a Virgin Limited Edition property

Kasbah Tamadot in Morocco, a Virgin Limited Edition property

A Wormery is a great way to reduce the amount and transport costs of taking food waste to landfill. It is simply a container containing worms that composts waste food and creates a high nutrient fertiliser.

The Lodge in Switzerland, a Virgin Limited Edition property

Holidays are part of happy lives We feel that both Virgin Holidays and Virgin Limited Edition make a positive contribution to their customers’ wellbeing and happiness by offering exciting, relaxing and stimulating holidays. Holidays can be life changing experiences; they can open people’s eyes to other cultures and the challenges of people living in other countries. Virgin Holidays also recognises that the benefits of a ‘holiday of a lifetime’ can go far deeper than a bit of relaxation and a sun tan, which is why it has:

allocation of holidays for terminally ill children and their carers

which gives young Londoners at risk of becoming involved in crime and gang culture, the opportunity to experience life changing visits to Kenya to live and work alongside children orphaned by HIV

education and training for homeless US teens.

Yemi Graham age 16 Yemi lives in North West London with his uncle and knows many kids who are involved in gangs. He was very apprehensive about going on the trip to Kenya where he helped to build a house for children orphaned by HIV. He was completely overwhelmed by the huge number of Kenyan children who are living without parents. He had expected that any person living with such hardship would be “cold” when in reality they were warm and inviting. The trip has changed him profoundly, he realises how privileged he is and values the opportunities and security that life in the UK provides. He is more aware of how many young people in the UK are wasting their lives and potential. He says that since returning home he has opened his eyes to the world and has been working to raise money for charity and help his local community.

To read our ‘On our way to sustainability’ report go to: www.virginholidays.co.uk/info/about/who_are_we/responsible_tourism/downloads/csr_so_far.pdf

GETTING FROM VIRGIN TRAINS VIRGIN LIMOBIKES VIRGIN RACING

In our vision of the sustainable society of the future, people will need to be provided with the kind of affordable and convenient transport that we have become accustomed to as a fundamental part of our lifestyles. Two centuries of economic growth have created corporate and social networks which span countries and continents, and transportation, alongside telecommunications, now provides the backbone of social accessibility. Both are vital to the exchange of goods and services and, by allowing people to stay in touch, keep the wheels of international business turning.

Transportation is energy intensive and currently dependent on fossil fuels. Consequently it has a very high carbon footprint, currently it accounts for roughly 21% of global greenhouse gas emissions; a proportion which is projected to continue rising1 . The main contributor to this is cars. In the UK within the transport sector cars and vans combined to contribute 45%2 of carbon dioxide emissions whereas trains currently account for 2% .

Transport is also very resource intensive, using a quarter of all commercial energy and half of all oil produced globally1. As well as its high carbon footprint, emissions from the transport sector also damage sensitive ecosystems, agriculture and urban environments.

High levels of transportation can impact human health since emissions contribute to reduced air quality and increased stress caused by congestion and noise pollution. Increased mobility of the population in general has led to urban sprawl making the vulnerable and less mobile sectors of society physically and socially isolated.

Forecasts suggest that all areas of the transport sector will continue to grow considerably. Today there are 700 million cars in the world, a figure predicted to increase to around 1.5 billion in

10 years’ time. This would be devastating for both our climate and society, so we need to encourage people to move from private to public transport in order to curb the perpetual rise in transport related emissions.

Airlines are crucial for fast, long distance and international travel. However, we believe that short haul and domestic journeys should increasingly be covered by lower carbon options such as trains . Virgin Trains operates a fleet of 73 trains over the busy West Coast route of the UK, encompassing a number of major towns and cities.

Public transport has the potential to reduce people’s use of private cars and reliance on domestic flying, but a variety of issues need to be considered if train travel is to become an alternative option for a greater proportion of the population . Trains need to be affordable for lower income families, fast and reliable for business commuters and integrated with other modes of transport such as local buses and cycle routes. Additionally, the environmental impact of train travel needs to be reduced by the ongoing development of fuel-efficient trains and low carbon fuels.

1. Gorham. R. Air Pollution from ground transporta- tion. An assessment of causes, strategies and tactics, and proposed ac- tions for the international community. The Global Initiative on Transport Emissions. A Partnership of the United Nations and the World Bank, Division for Sustainable Development, Department of Economic and Social Affairs, United Nations. 2002. (http://www.un.org/esa/ gite/csd/gorham.pdf)

2. HM Treasury Annex 7.c Emissions from the trans- port sector (http://www. hm-treasury.gov.uk/d/ Transport_annex.pdf)

In the UK GHGs from transport industries rose by 47% between 1990 and 2002. Source: UK National Statistics. Greenhouse gas emissions from transport. (http://www.statistics.gov. uk/downloads/theme_environment/ transport_report.pdf).

Flights between London and Liverpool have now ceased and trains are making important inroads into reducing the number of flights between London and Manchester and even Scotland.

Transport sector emissions of carbon dioxide are forecast to increase by 92% between 1990 and 2020 . Source: International Energy Agency 1998. World Energy Outlook. Paris, International Energy Agency/ Organisation for Economic Cooperation and Development.

Flyin g fr

om L ondo

to M anch

ester emit

appr oxim

ately fiv

e tim es

more emis

sions per

pass enger

kilo metr

e tha n

a Pe ndoli

no tr ain,

and

2.5 t imes

more than

priv ate c

ar.

Sourc e: Rai

l Safet y & St

andar ds Bo

ard

‘Tracti on En

ergy M etrics’

2007

Fuel Sources It is in the interest of Virgin Trains to find a source of sustainable biofuel as an alternative to oil given that the world’s supplies are predicted to soon peak and decline3. In June 2007, Virgin Trains successfully ran the first ever scheduled train on a biodiesel blend in the UK4. This was part of a six month trial run in association with Association of Train Operating Companies (ATOC)5 and Railway Safety Standards Board (RSSB)6, to test the use of biodiesel. The trial was successful in that it showed that the train could operate without impairing its performance. It also demonstrated the potential to reduce CO2 emissions from train travel by 12%. Although the trial was successful it will not be taken further for the fleet of 21 Super Voyagers (diesel) trains, until a source of commercially viable biofuels is found that is both environmentally and socially responsible.

Energy Use Virgin Trains’ carbon footprint is highly dependent on the trains’ design and the fuel that is used. Although it was involved in the design of its trains, fuel efficiency was only one of many aspects considered. A major factor in improved performance was the incorporation of tilting technology which enables Virgin Trains to operate competitively against domestic air travel .

It’s possible to reduce the carbon footprint of a train journey, simply by improving driving behaviour. Taking basic efficiency measures like this is always a fundamental first step as they are considerably more sustainable than buying new energy efficient trains, developing alternative fuels or overhauling existing infrastructure. Virgin

Trains has recently introduced energy metering and eco-driving which have the potential to reduce traction energy use by 5-10% . Virgin Trains seeks to be closely involved in the development of the infrastructure and technology of ‘new generation’ train designs.

Virgin Trains has worked with the Carbon Trust on a co-funded project to understand and reduce the carbon footprint of every aspect of its business7 . The company’s growth plans mean Virgin Trains’ total carbon footprint will increase. However, because of the measures introduced with the help of the Carbon Trust, the footprint per passenger should decrease.

Due to the current franchise model in the UK, large-scale modification of existing fleets presents enormous challenges. Making even minor software adjustments to improve onboard consumption of power can be an extremely costly and lengthy process. Virgin Trains has however been successful in implementing a range of modifications to its fleet to increase energy efficiency. Virgin Trains is:

introduce regenerative braking on the Pendolino trains

onboard computers that enables all trains to register and record energy usage which can then be analysed to increase efficiencies further

to increase passenger capacity which will in turn increase energy efficiency per passenger (a DfT/Virgin project)

Voyager trains by lowering the power output.

The use of tilt technology allows Virgin trains to travel over the main London to Glasgow route at high speeds on regular railway tracks. As a result, the reduced overall journey time competes very strongly against domestic airlines especially when factoring in the time saved by the train travelling directly into the city centre.

‘Traction energy’ is the energy that physically drives the train along as opposed to ‘hotel energy’ which is used for lighting, heating, air conditioning etc.

Conventional brakes convert the train’s kinetic energy into waste heat and noise, whereas regenerative brakes convert a proportion of energy into electrical energy which feeds back into the national grid. All 52 of its Pendolino (electric) trains have regenerative brakes which return 17% of the energy used to the grid.

Here is what our companies are doing to make

Getting from A to B more sustainable:

Bend to right

Side winds Hump bridge Worded warning

3. For a definition of Peak Oil go to page 20

4. B20 – 20% bio-diesel, 80% ultra-low sulphur diesel

5. Association of Train Operating Companies – ATOC (www.atoc.org)

6. Railway Safety Standards Board – RSSB (www.rssb.co.uk)

7. The Carbon Trust (www.carbontrust.co.uk)

Over the

year

each Pend

olino

train sav

enoug h en

ergy

to po wer

over

11,00 0 ho

mes.

Bikes Virgin Trains will be one of the first flagship Bike ‘n’ Ride train companies in the country following a £1 million funding deal with the Department for Transport through its Cycling England campaign . More than 500 additional cycle parking spaces are to be shared between Stafford, Stoke-on-Trent, Macclesfield, Stockport and Manchester Piccadilly train stations. Virgin Trains will also be supporting Manchester in its development of a cycle hire scheme that will allow commuters working in the city to complete their journeys by bike. At Stoke-on-Trent station, where an old bookshop is being converted into secure cycle storage, Virgin Trains is working closely with the local council on a scheme to encourage passengers to travel to and from the station by sustainable modes of transport.

Railway stations Throughout the rail network, Virgin Trains aims to increase the number of people arriving at stations by bus, bike or on foot, by focusing on the development of an integrated transport system. It is taking practical action, such as:

cycle parking and trialling cycle hire schemes where possible.

Virgin Trains has also started work on its stations:

Virgin-managed stations so that it knows where to focus to achieve maximum carbon reductions

systems to increase efficiency

footprints by 4% by the end of its current franchise (March 2012)

wind turbines in its multi-storey car parks.

Waste Waste is an issue both onboard trains and in stations. Newspapers and magazines account for the largest part of onboard waste by far, so this is Virgin Trains’ initial focus. It is segregating and recycling newspapers and magazines on services that terminate at a number of major stations . There is also the potential to expand this to other materials such as plastics and metals.

The Bike ‘n’ Ride project promotes sustainable travel for commuters and

Virgin Trains target: It aims to reduce its ‘business as usual’emissions by 17,000 tonnes CO2 a year between now and the end of the franchise in 2012.

Virgin Trains has committed to ensuring that 100% of the newspapers and magazines on services terminating at its major stations can be recycled.

Train stations are allocated to different train operators to run (this allocation is based on a line of route and principal user concept). That is why Virgin Trains has many of the stations north of Rugby, where it is the main service provider.

w in d

tu r b in es

b ik e

r id e

b ik e

Social interventions Affordability is vital in order to persuade people to use public transport over cars and to ensure equality of mobility. Virgin Trains has led the industry in offering value-for-money tickets and its advance tickets are the fastest growing part of the business. It now sells over 400,000 heavily discounted tickets each month.

Virgin Trains recognises that its responsibilities extend to its supply chain and for this reason it was the first train operator to move all its hot drinks and sugar to Fairtrade suppliers. It is now introducing organic, responsibly- farmed local produce. It has also written into its contract with Rail Gourmet (its food supplier) that it too is obliged to reduce its energy use and packaging waste, move towards recyclable onboard packaging and provide healthy, seasonal products that are environmentally and economically sustainable.

Virgin Trains’ staff, customers and suppliers helped raise funds for the Heaven’s Angels campaign, to put 60 health workers on motorbikes, who reach over 19,000 people in rural Kenya every month (read more about the Heaven’s Angels in the Unite section on page 75).

Virgin Trains expects soon to achieve its target of raising more than £200,000 for children and their families affected by cancer, through its charity partnership with CLIC Sargent8.

Transport with a difference Public transport is not always appropriate and for those occasions there needs to be a variety of low carbon options. Virgin Limobikes, is a taxi company using motorbikes in London that offers a low carbon, speedier and fun alternative to conventional taxis in the busy city . While not being as low carbon as public transport, the bikes use less fuel than cars, do not contribute to congestion, have no air-conditioning or heating and spend far less time idling in traffic and therefore have a lower impact on air pollution. Annual rider training ensures efficient use of fuel.

Virgin Limobikes has seven bikes at the moment, which between them do around 65 trips per day, serving customers who often don’t have enough time to travel by public transport.

The Virgin VR01 is the first F1 car to be entirely designed using computer simulation tools thus negating the need for inefficient wind tunnels.

A Virgin Limobike

8. CLIC Sargent (www.clicsargent.org.uk)

Gevo is developing new generation bio based fuels and related products. www.gevo.com

You can read more about the Virgin Green Fund on page 49.

THE CARBON GREEN PROCESS:

1. Uses pyrolysis 10 to reduce the tyres to:

carbonaceous char, steel, and volatiles.

2. Converts the volatiles firs t to synthesis

gas and then burns that gas to produce

electricity for resale.

3. Upgrades the char to prod uce CBp, a

highvalue commercial substit ute for

carbon black, whose propertie s have been

proven to satisfy the demand s of the

industry producing rubber p roducts;

and

4. Offers clean operations th at cause no

detrimental environmental imp act.

(www.cbpcarbon.com)

Virgin Racing Virgin’s entry into Formula 1 naturally raises some important environmental challenges. Our approach has been to have a positive influence on the sport and encourage the use of certified, sustainable biofuels, both by increasing their use within the sport and by using it as a test bed for mainstream industry. Virgin Racing is pleased that during the past 12 months the sport has made a significant commitment to moving issues such as biofuels and best practice further up the Formula 1 agenda.

Virgin Racing has formed a partnership with Carbon Green Inc.9, which is Formula 1’s first ever green technology sponsorship deal. Carbon Green takes discarded tyres, which are an environmental hazard, and breaks them down into 100% reusable products with much lower greenhouse gas emissions .

At the moment the technical regulations in Formula 1 call for a minimum of 5.75% bio-components in the fuel mix. Virgin Racing hopes to see this amount increase substantially over the next few years and indeed wishes to be part of the process of driving biofuel development forward. Sustainability issues surrounding the production of biofuels have not yet been resolved and Virgin Racing believes the only way to ensure that negative environmental and social impacts are avoided is through third party certification. Virgin Racing therefore supports the Roundtable on Sustainable Biofuels and pledges to supply its biofuel from RSB compliant sources as soon as possible .

The Virgin Group has already invested in a biofuel company called Gevo via the Virgin Green Fund and one of its first challenges will be to design a biofuel that meets Formula 1 regulations while still performing as well as current fuels .

The Roundtable on Sustainable Biofuels (RSB) is an international initiative coordinated by the Energy

Center at the Swiss Federal Institute of Technology in

Lausanne that brings together farmers, companies,

non-governmental organisations, experts, governments,

and inter-governmental agencies concerned with

ensuring the sustainability of biofuels production and

processing (read more on the RSB on page 21 or on their

website at: www.rsb.org).

9. Carbon Green Inc. (www.cbpcarbon.com)

10. Heating in the absence of oxygen

STAYIN G IN

TOUC H

VIRGIN MEDIAVIRGIN MOBILE VIRGIN DIGITAL HELP

no u turn

broadband

television

phone

mobile

V ir g in M ed ia , w h ic h f or m ed i n 2 0 0 6 , is t h e

f ir s t c om p an y i n t h e U K t o of f er T V , B r oa d b an d ,

P h on e an d M ob il e s er v ic es

Technology is playing an ever increasing role in the way we are ‘Staying in Touch’ in the 21st century. Mobiles and the internet have transformed the way in which businesses and individuals communicate with one another both in developed and developing societies. It has turned the impossible into everyday occurrences; increasing productivity, connectivity and access to information right across the globe.

Virgin Media believes that digital technology has the power to exert a positive influence over the way in which we all work and play. Whilst the power of the internet owes much to the fact that it is an open, uncensored and unmanaged environment to which consumers and content providers alike have equal and unrestricted access, these limits are being tested against a range of complex commercial and social issues. Although a challenging and controversial idea, Virgin Media believes that Internet Service Providers (ISPs) need to be given a bit more freedom to proactively manage online activity. They think that the key is to build trust among their stakeholders, especially customers, that

they’re approaching it in a measured, proportionate and transparent way.

The internet is also a tremendous medium in which to educate and entertain and its ability to spread the word about different issues or the latest fad is a powerful tool for keeping people informed and up to date on news and entertainment. As one in every five houses in the UK is a Virgin Media customer, Virgin has a responsibility to maximise this positive impact . It is a key challenge for Virgin Media and Virgin Mobile to ensure that services are available to as many consumers as possible, regardless of location or income.

In total, ICT could deliver approximately 7.8 Gigatonnes CO2e of emissions savings in 2020.

Some of the biggest and most accessible opportunities for ICT to achieve these savings are through Smart motor systems, Smart logistics, Smart buildings and Smart grids

SMART technology

technology to monitor and control electronic devices so that they are used as efficiently as possible. Source: The Climate Group and the Global e-Sustainability Initiative (June 2008). SMART 2020: Enabling the low carbon economy in the information age. (http://www.theclimategroup.org/ assets/resources/publications/ Smart2020ReportSummary.pdf)

online shopping and remote communication.

Virtualisation is software technology which uses a physical resource such as a server and divides it up into virtual resources called virtual machines. Virtualisation allows users to consolidate physical resources, simplify deployment and administration, and reduce power and

Source: Virtualization Technology (http://www. virtualizationtechnology.com/)

1. The Climate Group and the Global e-Sustainability Initiative (June 2008). SMART 2020: Enabling the low carbon economy in the information age.

2. BBC (http://news.bbc.co.uk/1/hi/sci/tech/4620350.stm)

3. Recycle More (http://www.recycle-more.co.uk/nav/page1763.aspx)

Balancing act A transformation in the way people and businesses use technology could potentially reduce annual man-made global emissions by 15% by 2020 and deliver energy efficiency savings to businesses worth over £400 billion1 . The Information Communications Technology (ICT) sector will contribute significantly towards a low carbon economy through improvements in virtualisation technology, which will enable a change in behaviour without compromising the way we do business . There is also enormous potential to save energy from global infrastructure and industry, by providing “smart” solutions such as smart building design and smart electricity grids . After all, we can’t manage what we can’t measure.

However, there is a flipside to the advantages that technology can bring. Electrical devices waste vast quantities of energy when they are left plugged-in or on standby but not in use, with standby lights responsible for the production of 800,000 tonnes of CO2 annually in the UK alone2. Mobile phone chargers continue to consume energy when left idle but plugged into an outlet . Around two-thirds of the energy used by chargers is wasted in this way. Some

newer appliances, such as set-top boxes, have actually been designed to be left on to download updates as they become available .

Although technological advancements have in some areas lead to dematerialisation, across the globe we now own more possessions than ever before including a plethora of electrical appliances. The fast pace of technological evolution, coupled with a throw away culture has resulted in electrical waste becoming the fastest growing waste stream in the UK, increasing at 5% per year .

Electrical waste is extremely damaging to the environment as appliances are energy intensive to produce, are mainly made from finite resources and lead to soil and water contamination when they end up in landfill, which over 75% do3. These issues must be addressed to ensure that the positive contribution that technology brings is not outweighed by the energy it consumes and the waste it generates.

Virgin Digital Help assists its customers to solve all types of digital problems. It has only been running since December 2009, however it aims to have impact on electrical waste by ensuring that people do not discard digital equipment unnecessarily.

Estimated annual CO2 emissions from devices left on standby in the UK. Source: Energy Saving Trust (www.energysavingtrust.org.uk)

Britons waste

the equivalent

of around two

power stations’

worth of

electricity each

year by leaving

TV sets and

other gadgets on

standby.

STANDBY

EMISSIONS

STEREOSTVs VIDEOSDVD PLAYERS

SET-TOP BOXES

CONSOLES

10 0,

00 0

to nn

60 ,0

to nn

1, 60

0, 00

0 to

nn es

96 0,

00 0

to nn

48 0,

00 0

to nn

39 0,

00 0

to nn

By 2010 there are predicte d to be

TWh of electricity.

REDUCE SPEED NOW

Each year in the UK we ditch over 1.2 million tonnes of electrical waste

double decker buses! Source: Recycle More (http://www.recycle-more.co.uk/nav/page1763.aspx)

Here is what our companies are doing to make staying in touch more sustainable:

Virgin Media has committed to an initial CO2 reduction target of 15% below its 2007/08 baseline by 2015.

4. International Telecommunications Union (www.itu.int)

5. Internet Watch Foundation - IWF (www.iwf.org.uk)

6. Child Exploitation and Online Protection Agency - CEOP (www.ceop.gov.uk)

7. Now standard across all of its current cable products.

8. UK Council for Child Internet Safety - UKCCIS (www.dcsf.gov.uk/ukccis/)

World-wide communications The internet and mobile telecommunications have contributed to the creation of a connected world where people can communicate with one another from opposite ends of the earth. Virgin Media, based in the UK, is making its contribution to the development of an interconnected, digital world through the provision of broadband, TV, phone and mobile services.

Virgin Mobile has a wide presence around the world operating out of Australia, Canada, France, India, South Africa, UK and the US, and these operations provide mobile services to 13.2 million customers worldwide. In this way Virgin Mobile has played its part in providing some of the 3.3 billion mobile accounts which were active across the globe at the end of 2007 and which is set to increase to 4.8 billion by 20204.

Combating problematic online behaviour The internet provides quick and easy access to an infinite array of online services and entertainment but its ‘unmanaged’ status has also made it a versatile and powerful medium for illegal behaviour. Virgin Media routinely removes or blocks access to any website brought to its attention as containing potentially illegal material, such as images of child abuse or incitement to racial hatred. It also works routinely with the police, law enforcement agencies and other legally-recognised bodies to support investigations into online criminal activity on its network.

Virgin Media was one of the founder members of the Internet Watch Foundation5, which identifies and enables it to remove or block access to websites containing illegal images of child exploitation. Virgin Media also works closely with the Child Exploitation and Online Protection Agency6, providing the information needed to conduct investigations free of charge.

Some policy makers and interest groups are going further by calling on ISPs to take action against sites that, while not strictly illegal, feature content that is ‘harmful’ to children such as graphic violence. Virgin Media has a PCguard Total service7 which includes Anti-Spyware, Identity Theft Protection and Parental Controls to help parents protect their families. It is also a member of the newly created UK Council for Child Internet Safety8 where it aims to be active in discussions around the responsibility of ISPs to take further action.

The growth of sophisticated file sharing applications represents a significant threat to creative industries, particularly those relating to music and film. Virgin Media has been a progressive voice in this debate, working collaboratively with rights holders, their representative bodies, other ISPs and policy-makers.

Virgin Media doesn’t see heavy-handed legislation as a solution. Instead it wants a simple, pragmatic legislative framework for implementation, enforcement and cost sharing that provides certainty to ISPs and their customers and promotes the availability of content online.

Ultimately, Virgin Media believes the answer lies in providing consumers with offers that provide rational and affordable alternatives to unlawful file sharing and reflects its customers’ desire for on demand content in flexible formats. That’s why it recently announced a new partnership with Universal Music to provide a ground- breaking new unlimited MP3 music download subscription service to its broadband customers.

Digital inclusion The digital world can make a significant difference to people’s lives but unfortunately not everyone is able to gain access to it either due to lack of money or lack of understanding. That’s why Virgin Media is addressing the problems around digital inclusion and literacy. In 2008 it launched two projects – one targeted at kids, the other at the elderly – which helped to generate greater access to its products in disadvantaged communities.

It teamed up with the e-Learning Foundation to provide children with free home access to the internet . Those that have taken part are demonstrating the educational value of online access. It has also worked with UK online centres to provide a support package for the parents of the children involved, to help them take advantage of being online at home and to enable them to support their children’s learning and ensure their safety whilst online.

Virgin Media’s other project involved working with Digital Unite, an organisation that helps older people get online, and as part of this scheme provided 17 sheltered housing projects with a ‘get online’ package . The package contained two computers per scheme, software and accessories, plus a seven week training programme delivered by Digital Unite. Virgin Media received great feedback from residents at the sheltered housing schemes, with 71% of participants saying they’d continue to use a computer and the internet.

Technology is wonderful – when it works, but extremely frustrating when it doesn’t . Virgin Digital Help’s aim is to revolutionise the way British consumers solve any digital problems using a combination of downloadable tools, online and phone support and home visits . This will help people to get the most from digital technology and supports digital inclusion.

Carbon Virgin Media’s greatest environmental impact is the carbon emissions generated by powering its network and operations. In 2008 Virgin Media managed to reduce its carbon footprint by 3% through a variety of initiatives including; a national ‘switch-off’ campaign, consolidating sites and technical equipment, a 20% efficiency improvement in air-conditioning and improved office infrastructure.

It has committed to an initial CO2 reduction target of 15% below its 2007/08 baseline by 2015. Ownership of this target has been given to its Carbon Management Group which is made up of representatives from across the business functions. Virgin Media has signed up to the voluntary EU code of conduct for digital TV systems which sets maximum power consumption and advanced features such as auto-standby.

In 2008 it provided just under 200 people in 17 sheltered housing schemes with a ‘get online’ package.

A third of the British population say that digital stuff has caused them real stress, with 78% having shouted at their technology, 21% having thrown gadgets against the wall, and 14% having even punched technology.

Virgin Digital

Help launched

in December

2009.

Virgin Media has provided over 400 children across five UK cities with free home internet.

The Digital Unite, Sheltered Housing Scheme project (Photo by Holly Grange – Birmingham)

The e-Learning project (Birmingham Case Study)

The majority of emissions from mobile devices is ‘phantom power’ which is the energy used by chargers that are left plugged in but are not actually in use. Phantom power is set to decrease as “smart chargers” are introduced which turn off when a device is not connected. The absolute footprint of mobile phones is therefore only expected to increase by 4% between 2002 and 2020, as the sharp decrease in energy consumption by chargers will go a long way to offset the growth in number of handsets9. A set of guiding principles for eco-design has also been drafted to ensure the lifecycles of products are as efficient and environmentally sound as possible.

Whilst striving for a reduction in carbon emissions in its operations, Virgin Media also recognises the opportunities presented by investment in rainforests which act as powerful carbon sinks. Virgin Media has been working with The Forest Trust10 on a pioneering initiative called The Climate Tree in the Congo Basin; helping to launch a Centre for Social Excellence for the Forests of the Congo Basin, to train African graduates and professionals in forest and land management. Virgin Media has also supported the first ever indigenous people’s language radio station in the Congo which broadcasts to over 16,000 people, allowing locals to communicate with the logging companies and between tribes11.

Dematerialisation Virgin Media and the mobile companies are contributing to dematerialisation in a variety of ways such as by enabling remote working and teleconferencing, which will play a substantial role in reducing emissions. There are still, however, barriers to the adoption of these technologies which need to be overcome. Remote working has been slow to take off due to feelings of isolation, lack of colleague collaboration and difficulties in performance management. The next generation of professionals however, are already significantly more experienced in using collaborative technologies (social networking and mobile use) and so may develop very different ways of working thus increasing dematerialisation. Plus, we may find that future technological breakthroughs, as yet unidentified, could further alter the way we live and work.

Waste The shelf life of mobile handsets has become increasingly short as old handsets make way for new designs. Change could be on the horizon, as service upgrades are becoming possible without needing to trade in the phone, thereby extending the life of the device itself. Virgin Mobile companies have worked together to develop a Group environmental position, Globile Policy, which was formalised in 2008 and agreed by all Managing Directors

9. The Climate Group and the Global e-Sustainability Initiative (June 2008). SMART 2020: Enabling the low carbon economy in the information age. (http://www.theclimategroup.org/assets/resources/publications/Smart2020ReportSummary.pdf)

10. Previously known as The Tropical Forest Trust (www.tropicalforesttrust.com)

11. Virgin Media 2009 Report (http://cr.virginmedia.com/wp-content/uploads/reports/Virgin-Media-Responsibility-Report-2009.pdf)

The radio station in the Congo which allows locals to communicate with the logging companies and between tribes (The Forest Trust).

The Forest Trust (Photo by E. Parker)

of the Virgin Mobile companies. Despite the different countries, and consequently cultures, in which the various companies work, the policy outlines a set of minimum standards including measures such as recycling handsets, to which all Virgin Mobile companies must adhere.

The Virgin Mobile companies are working hard to increase recycling and create formal initiatives within their markets:

paid shipping label online so that customers can return their handsets easily. All profits from this recycling scheme go to RE*Generation US, a Virgin Mobile US and Virgin Unite initiative to help homeless youth

handsets from any brand or company and in any condition

old phones and get up to £150 back in free airtime depending on the make, model and condition of their handset. It also offers people the option to donate some, or all of its value, to charity which the company matches .

Reusing is always better than recycling where possible as it avoids having to break down and remanufacture products, which is extremely energy intensive:

programme which encourages users to pass on old phones to friends in exchange for airtime. During the first half of 2009, it won 110,000 additional customers from the Pass It On programme.

Virgin Media provides other electronic equipment such as set top boxes to customers. These have relatively short life spans and need to be reused and recycled as they contain precious metals, toxic chemicals and plastics. Virgin Media is committed to taking back equipment that customers no longer wish to use. In 2008 it took back more than 1.6 million boxes and modems, all of which were either reused or recycled. Virgin Digital Help is also hoping to have an impact on waste by helping people repair or upgrade existing equipment thereby reducing the consumption of new hardware .

56% of Britons have unused digital stuff at home, even though it’s in perfect working order.

RE*Generation: Virgin Mobile and Virgin Unite are working with Foyer and Kids Company, who help homeless or vulnerable young people turn around their lives and kickstart their future.

WATCHING THE PENNIES VIRGIN MONEY

VIRGIN GREEN FUN D

The financial crisis has raised fundamental questions about the purpose of banks, how they should be regulated and the true measure of performance of a well-run bank. Against this backdrop, the eyes of the world are on financial services companies to act responsibly both towards their customers and the economy as a whole.

One of the fundamental pillars of sustainability is to have a healthy economy – and a healthy banking system is necessary to achieve this. Rebuilding the trust of customers and consumers will be of paramount importance to a stable and well-functioning financial services industry in the years ahead. This is clearly a major challenge, but it is one that has to be met and where new market participants and trusted brands can play an important role.

Sound management of personal finances is core to wellbeing. We will all face times in our lives when we struggle financially and may have to think much harder about how to manage and spend our money, examining how we live and evaluating what’s important to us. Financial services companies have a fundamental role to play, providing guidance and supporting responsible financial management. Virgin Money is focused on developing new services to support customers to do just this.

Everyone’s better off with Virgin Money One of Virgin’s core values is to be a consumer champion and Virgin Money is no exception. Established in 1995 to give customers a better deal, Virgin Money now has businesses operating in the UK, Australia, South Africa and the US and offers a range of great value financial products across lending, investments and protection.

Virgin Money aims to offer financial products that are easy to understand and places a strong emphasis on bringing simplicity and transparency to a traditionally complex sector so that its customers can feel confident when managing their money. Virgin Money believes it can make a contribution towards sustainable development by helping rebuild trust in the financial services industry through its philosophy of making everyone better off. It aims to achieve this by offering good value to customers, treating employees well, making a positive contribution to society and delivering a growing profit to shareholders. As part of delivering this ambition, Virgin Money is focused on:

customers in control of their finances

interested in managing their finances

money for charities.

With the reputation of large chunks of the banking and

financial services indus try in tatters, Virgin Money is

distinctly different. It’s a small er organisation that has grow

steadily, stepbystep, and b ecause of this we are in a st

ronger position

to look after our customers. I love the philosoph

y that

everyone is better off with Virgin Money.

Richard Branson

We are currently suffering from the aftermath of a financial crisis that has shaken peoples’ trust

in the banking industry and major corporations. Banks and financial institutions have been major

contributors to the recession and have suffered a loss of consumer confidence as a result.

Virgin credit and prepaid cards Virgin Money UK offers a market-leading Balance Transfer credit card that has helped over two million customers manage their credit card borrowing repayments, as well as a Prepaid MasterCard that allows customers to budget easily, helping to reduce stress and anxiety.

Family loans Virgin Money in the US offers a product which directly contributes towards financial wellbeing. The Handshake Basic or Handshake Plus is a loan scheme which helps people borrow from friends, family and personal networks, with Virgin Money acting as a third party to protect the relationship and the money.

Leadership in personal pensions The Virgin Personal Pension was revolutionary when launched in 1996 in the UK, with its unprecedented flexibility, simple charging structure and straightforward processes.

Responsible investment The Virgin Climate Change Fund invests in selected businesses (predominantly in the UK and Europe) that aim to drive outstanding profit growth and have a lighter environmental footprint. Virgin Money believes these companies will outperform heavier polluters who are facing increasing pollution taxes and penalties, imposed by governments and regulators.

Here is what our companies are doing to make watching the pennies more sustainable

Supporting charities Virgin London Marathon Virgin Money will host the official fundraising website of the Virgin London Marathon (www.virginmoneygiving.com) and Virgin has pledged to help the runners raise more than a £1/4 billion over the next five years.

Virgin Money Giving Virgin Money has launched Virgin Money Giving. It is using its infrastructure and expertise to ensure that the new service is efficient, secure and offers a high quality service to all fundraisers, charities and donors. Virgin Money Giving is not-for-profit and simply aims to cover its operating costs so that it can offer the lowest possible charges to charities.

Green Light Trust Virgin Money supports the Green Light Trust, an environmental education charity, which offers schools and communities the chance to learn about nature through a range of hands-on woodland and wild space restoration programmes1. Virgin Money UK has helped it achieve these goals, by providing financial support and working to build a five year plan to become less reliant on grants, thereby enabling greater financial security.

THIS WAY...

CONSTRUCTION AHEAD

The financial crisis highlighted

widespread failures in the

banking system, large ly created by

complexity, a lack of transparency

and a focus on high returns with

excessive risk. To p ut this right,

banks need to focus on simple

products, clearly exp lained, that

deliver real and last ing value to

customers. Virgin Mon ey’s approach

is in line with this v ision.

Metrolight delivers dimming capabilities to street lighting

Alice Chapple

(Director of Su stainable Finan

cial Markets at

Forum for the F uture)

n o le f t tu r n

1. Green Light Trust (www.greenlighttrust.org)

The London Marathon has over

35,000 runners, half a million

spectators and raises over

£47million for good causes each year.

Virgin Green Fund Virgin Green Fund is a private equity fund that invests capital in the renewable energy and resource efficiency sectors and has raised in excess of $200 million US to date. Through the Fund’s financial investments and its active participation on the board of the new businesses, it aims to help companies realise their full growth potential and become market leaders. Virgin Group’s commitment to Virgin Green Fund clearly demonstrates our commitment towards accelerating the pace of change and making sustainable lifestyles easier to achieve by promoting renewable energy and resource efficiency.

To date, the Virgin Green Fund has made ten investments across the US and Europe and continues to seek investment opportunities across a wide array of sub- sectors in energy, waste and water. We believe that it is vital to have a swathe of different technologies up our sleeves in order to help combat climate change and resource depletion. By investing responsibly Virgin Green Fund is in a position to support the technologies of the future.

Virgin Green Fund investments include:

DuraTherm provides treatment services for waste streams generated by petroleum and olefin-related industries

Gevo has successfully pioneered the development of advanced renewable fuels and chemicals based on isobutanol production

GreenRoad’s patented technology system improves driver behaviour and consequently reduces both accident rates and fuel consumption, By instantly identifying risky behaviour and empowering drivers to change their behaviour behind the wheel via real-time feedback and regular web reporting

Metrolight provides energy efficient lighting solutions to commercial, industrial and municipal customers utilising its patented HID electronic ballasts, digital communication and remote control and monitoring software systems

Odersun designs and manufactures flexible, non-toxic, solar cells and modules using a proprietary, worldwide patented, thin-film technology that targets the building integrated photovoltaic market

Quench is an independent owner, marketer and distributor of point-of-use bottle-less drinking water purification and dispensing systems that offer a lower cost, healthier, more convenient and less wasteful alternative to traditional bottled water delivery

Seven Seas Water designs, builds, owns and operates desalination water and waste water treatment facilities for hotels, resorts and governments in The Bahamas, Caribbean and Southern US

Solyndra has developed thin-film photovoltaic panels that enable high module efficiency, low installation costs, and high energy production per rooftop compared with most competing technologies

Wildcat Discovery Technologies is a company that is developing new materials required to resolve energy- related technology challenges.

Additional traffic joining from left

Solyndra’s rooftop panels

On September 30, 2009, Gevo announced it had successfully operated its 1 million gallon (3.8 million litre) demonstration plant for biobutanol. The demonstration plant is located in St. Joseph, Missouri, USA. Biobutanol is an advanced biofuel that can be blended with gasoline, jet and diesel fuels.

MY BODY IS A TEMPLE VIRGIN ACTIVE VIRGIN HEALTHMILES VIRGIN LIFE CARE VIRGIN SPA

1. UN News Centre. Europe is getting too fat and needs to eat more fruit and vegetables, UN warns.

2. Obesity raising airline fuel costs.’ 9/11/04. (www.livescience.com)

3. NHS. (2008) The Information Centre. Statistics on obesity, physical activity and diet: Eng- land, January 2008 (http://www.ic.nhs.uk/default. asp?sID=1)

4. Department of Health and Human Services Centers for Disease Control and Prevention. Recommended Community Strategies and Measurements to Prevent Obesity in the United States. (http://www.cdc.gov/ mmwr/pdf/rr/rr5807.pdf )

5. Robyn Martin (2008) The role of law in the control of obes- ity in England: looking at the contribution of law to a healthy food culture. Australia and New Zealand Health Policy 2008, 5:21. http://www.anzhealthpolicy.com/ content/5/1/21

6. Kahneman, D, Krueger, A. B., Schkade, D., Schwarz, N., Stone, A. A. Would You Be Happier If You Were Richer? A Focusing Illusion. Science 30 June 2006: Vol. 312. no. 5782, pp. 1908 – 1910

7. World Health Organization (www.who.int/mental_health/ en/)

It goes without saying that if you want to live a long, happy and healthy life you need to look after yourself and that doesn’t just mean taking regular exercise, it’s about mental wellbeing and healthy eating as well.

CLEAN AIR

ZONE

Understanding good nutrition and making time for exercise and relaxation are essential life- skills that need to be cultivated to ensure that your body stays fit while your mind has time to unwind. While ‘health and wellness’ have historically fallen outside the scope of traditional sustainability discussions, that has since changed and ‘health and wellness’ are now key ingredients in the sustainability recipe. Our health and wellbeing is dependent on a stable climate, clean air and water and fertile soils, and so the state of the global environment is paramount.

In addition, experts are now seeing a link between unhealthy lifestyles and the size of a person’s carbon footprint. A healthy lifestyle often includes more exercise, and less reliance on carbon intensive transport, as well as a healthier diet with more fruit and vegetables rather than red meat and dairy . By contrast unhealthy diets tend to be higher in fat, sugar, and often contain excessive calories which can contribute to weight problems. This in turn leads to an increased risk of many diseases and health conditions, including high blood pressure, type 2 diabetes, coronary heart disease and strokes which then put increasing pressure on countries’ health systems5 .

Worryingly, some studies have concluded that as western economies become richer, health and happiness ratings decline6 whilst obesity and incidences of heart disease increase . These changes in human health can then impact on the environment as people become more reliant on energy intensive modes of transport .

On top of this, the World Health Organisation states that at a global level, one in four patients visiting a health service has at least one mental, neurological or behavioural disorder7 while a mental health charity in the UK suggests that one in three of the British population will suffer from mental health problems, including stress.

So we in the west may be wealthier as a society, but that success is leading to new health trends that need to be tackled if we’re to achieve a truly sustainable future. We believe that the Virgin companies operating in this sector have the opportunity to make a meaningful contribution to improve health and wellness through the services they offer.

An article in the New Scientist (2007) suggests that a kilogramme of beef is

responsible for more greenhouse gas emissions and pollut ion than driving for three

hours while leaving all the lights on back home. This is b ecause it takes around

16lbs of grain to produce 1lb of meat, and also due to the greenhouse gas methane

released from the animals’ digestive systems.

Source: New Scientist (http://www.newscientist.com/article /mg19526134.500)

of adults in the UK3 and

24%

34% of adults in the US are

obese4.

Obesity is already responsible for

of deaths in different parts of Europe1.

10-13% of health care costs and

2-8% A study2 has shown that as the weight of the average American

increased by 10lbs, the airline industry has had to burn an additional 350 million

gallons of fuel, resulting in an extra

3.8 million tonnes of CO2

Moderate-intensity aerobic activity means you’re working hard enough to raise your heart rate and break into sweat, e.g. • Walking fast • Doing water aerobics • Riding a bike on level

ground or with a few hills

• Playing doubles tennis • Pushing a lawn mower

HealthMiles’ members regularly measure key biometrics with HealthZone health measurement stations.

Members earn ‘HealthMiles’ by participating in the activities they like and by reaching key milestones in the programme. HealthMiles are then redeemed for cash, gift cards to national retailers, or donated to the member’s charity of choice.

Virgin Life Care has: • 90 HealthZones • 104 Clinics • 130 Biokineticists VIRGIN HEALTHMILES

Members 2.5 times more active than peers

HOURS OF PHYSICAL ACTIVITY Source: Bureau of Labor Statistics (2008), Virgin HealthMiles 2008-2009 Total members in sample = 101,273

!"#"$%&$'()*$+,#$-+./)0%"&$)#"$1+%02$*+$.)3"$

*#")*%02$4+,#$5+14$6%3"$)$*"./6"$.+#"$&,&*)%0)56"7

Healthier, happier lifestyles Exercise has been associated with reduced levels of anxiety, decreased depression, enhanced mood, improved self-worth and body image, as well as improved cognitive functioning8. Of course more active lifestyles don’t necessarily have to involve daily strenuous exercise but instead could incorporate a broad range of low and moderate-intensity activities that add up throughout the day9 . This is the idea behind Virgin HealthMiles, based in the US, and Virgin Life Care in South Africa. Both companies are developing innovative health programmes that empower individuals to take greater control of their health and fitness. The companies provide employee health programmes that pay people to get active . The programmes provide employees of participating organisations with a Pay-for-PreventionTM approach which is based on physical activity and healthy lifestyle changes

. In the US, within organisations that have participated, it has attracted an average of 40% of employees. The scheme helps organisations reduce medical costs and improve employee productivity and satisfaction10.

Employees enrolled in the programme use a pedometer to track daily activity which can then be uploaded, validated and tracked online . Progress is measured and incentivised. The programme is offered by employers, government bodies, insurers and other network partners, such as health clubs. Over 120 industry leaders representing more than 500,000 employees across the US have used the Virgin HealthMiles’ programme. In June 2009 Virgin HealthMiles announced a 313% increase in new members over 2008 and 2009. Virgin HealthMiles’ members are 2.5 times more active than the average US adult.

Virgin Life Care inspires and motivates members to reach health goals via a personalised journey that includes tracking, questionnaires, communication and various online wellness tools. It uses a network of HealthZones in Virgin Active clubs, clinics in pharmacies and Biokineticists in private practices around South Africa to allow members to track their progress by carrying out fitness assessments and taking health measurements including weight, body fat, BMI, blood pressure, glucose and cholesterol . Members receive health reports and exercise and dietary plans throughout their journey.

AMERICAN ADULTS

HEALTHMILES MEMBERS

899

:;(+,#&

(+,#&

HealthMiles member Betty taking a hike.

8. The Way Forward for Physical Ac- tivity Biddle S., Fox K., Boutcher S. eds (as in no 7) pages 154-158

9. Virgin HealthMiles recommend moderate-intensity activities which are in line with the U.S. Department of Health and Human Services and the Centers for Disease Control and Prevention’s physical activity recommenda- tions.

10. The programme’s Reward Levels reinforce the Centers for Disease Control and Prevention’s (CDC) recommended activity levels (www.cdc.gov)

Anne, a Virgin HealthMiles member, taking a walk during her Colorado honeymoon.

HealthMiles’members have

collectively taken more than 200

billion steps on the progra mme

since it started in 2006.

Number of clubs: 90 in South Africa 72 in the UK 19 in Italy 7 in Spain 2 in Australia 2 in Portugal

Virgin Active, which operates in Australia, Europe and South Africa also contributes significantly to healthier and therefore happier lifestyles . In fact its mission is to bring positive change to people’s lives, because, as it says, “life’s more fun when you move”. One of the many benefits of exercising is that it causes the body to release endorphins, a combination of chemicals that reduce stress and produce a feeling of wellbeing. Therefore, Virgin Active is trying hard to move away from the image of gyms as places for lycra-wearing fitness fanatics and is instead focusing on encouraging everyone to alter their lifestyles to improve physical wellbeing. The clubs’ diverse timetables reflect this, by offering everything from yoga, kettle bells and dance lessons to kick boxing and spinning.

The Virgin Active websites offer members a wide variety of information promoting healthy and happy lifestyles. There are daily tips on fitness, a variety of wellness programmes (from “Body Building” to “Doctor’s Orders”), healthy lifestyles advice, nutritious eating guidelines and online health checks. Active encourages its members to exercise regularly because once exercise becomes a habit or part of a routine, it can be integrated to form part of an overall healthy lifestyle.

Energy Virgin Active’s contribution to a happier lifestyle is clear but health clubs are energy intensive operations and so energy efficiency is a priority for all the clubs :

consumption so that continual improvements can be made

intelligent lighting systems thereby reducing overall electrical consumption in the clubs

utilised including well-insulated walls and roofs and energy saving lighting

cool during the hottest months in some of the clubs

conditioning units) help reclaim waste heat from the air conditioning process and recycle it as hot water used in the showers, taps and swimming pools

panels are used to increase temperatures in both hot water and swimming pools systems, adding to the already reclaimed heat from the chiller units

customers understand their environmental impacts through an online carbon calculator. It then gives tips on how to change their behaviour to reduce their impact and offset emissions www.virginactive.co.za/carbon_calculator

air handling units with heat pumps in its health clubs

Portugal (two, soon to be four) make extensive use of variable speed drives to control motor electrical power

voltage optimisation units and third generation LED lighting systems to reduce the company’s overall carbon footprint.

Virgin Active South Africa has been trialling an energy and water smart monitor which in the future will be displayed in the clubs so members can see in real time the energy and water consumption. It aims to roll these meters out in all its clubs over the next three to five years.

“life’s more fun

when you mov e”

Virgin Active South Africa: Over 8,700 people used the Carbon Calculator in its first year

January 2010).

Virgin Active Swimming pool Italy.

A Virgin Life Care blood pressure measurement being taken.

Virgin Life Care members track their progress at 104 pharmacies and 90 HealthZones nationwide.

Virgin Active Italy: Solar thermal collectors in

Venice generated 100,000 kW ht

(from April 2008 - October 20 09)

and Brescia Freccia Rossa

generated 80,000 kWht

(from May 2008 - September 2009).

Virgin Active South Africa is trialling solar panels in one

its clubs where it has installed

361 kW of solar panels.

Solar thermal panels on the Virgin Active club in Venice Italy.

For example in South Africa the clubs have already cut energy consumption by 10% since January 2008 and now have another 15% reduction target to achieve by December 2010.

The advantage of using water from wells is that the water does not have to go through the treatment process that normal drinking water does, meaning that the water has a much lower carbon footprint.

Twelve of the clubs in South Africa and one of the UK clubs carry out greywater recycling, using ‘greywater’ from the pool to flush the toilet.

Greywater is wastewater generated from domestic activities such as showering, washing and laundry. Water from toilets is called blackwater.

Virgin Active South

Africa target:

Water recycling system s to be

fully installed and fun ctional

in 10 % of its clubs by mid

2010.

Water Health clubs use a considerable amount of water (swimming pools, spa areas, showers, irrigation of playing fields and tennis courts) so it’s important to be as efficient as possible. For this reason, the Active clubs use a whole range of measures such as:

flush toilets

pools which allows clean pool water to be re- circulated

for use in the technical plant

Looking ahead Virgin Active has some excellent examples of best practice in its clubs and is working hard to share these across clubs in different countries. It also continues to benchmark its clubs against competitors to ensure they continue to demonstrate leadership. Virgin Active recognises the need to set targets on energy and water reduction . Water is a key focus in South Africa – Virgin Active is the 70th largest user of water in the country – so more and more measures will be put into place to reduce its water footprint.

Social impacts Virgin Active, by the very nature of its physical presence, has a responsibility to the communities in which it operates.

charities to engage young people in healthier lifestyles and is providing opportunities for them to access fitness equipment without club membership

A glimpse of the world-class facilities offered to Virgin Active SA members

Can yo u do i

in 3 m inutes?

It’s all about y ou,

every drop counts

Turn it off whi

you lathe r up

Work or play: the GoZone pedometer tracks all your daily activity.

Virgin Active South Africa has supported the BSoE with:

competitions

SowASeed turns vacant pieces of land into thriving veggie gardens and involves the community in caring for its garden and educates the people about basic nutrition. The Virgin Life Care staff have been actively involved in planting the gardens and their sponsorship buys compost, seeds and gardening equipment.

Virgin Life Care team planted a vegetable garden at a school in a very poor area to help provide nutritious meals for the kids

from two of its clubs to refurbish a community gym run by KidsCo

of gym equipment in 2008 and 515 pieces in 2009 to correctional centres, drug and alcohol rehab centres, old age homes, schools and township gyms and has plans to open clubs in the townships

with Virgin Unite to support the Branson School of Entrepreneurship (BSoE) (for more information on the BSoE go to page 75)

Youth Support Network to fit out a mini gym, provide regular personal trainer visits to set fitness goals and encourage young people in the community, with a view to creating longer- term employment opportunities in Active clubs

partnered the Heart and Stroke Foundation in a project called Sow-A-Seed to provide people in townships with the tools they need to create more nutritious meals .

Virgin Spa Virgin Spa in South Africa has embraced the African spirit of ubuntu – good neighbourliness and respect for those it lives and works among. It has worked hard to ensure it has a positive impact on local communities by carrying out the following initiatives:

communities with plans to establish an in-house academy to train disadvantaged youngsters as spa therapists

used in treatments, from Zimbabwean street traders

indigenous ingredients in its products wherever possible.

11. Avert (http://www.avert.org/ safricastats.htm)

Virgin Active club in Chigwell UK

Virgin Spa Therapists - South Africa

For Virgin Active South Africa there is the added challenge of its employees’ health and wellbeing, since HIV/AIDS is such a major concern. It is by far the biggest health issue in South Africa with a prevalence rate of around 28% of the population11. Since 2005 Active South Africa has run the Direct AIDS Intervention programme for its employees, which offers a broad range of services including HIV/ AIDS awareness training and education, voluntary counselling and testing, clinical management of HIV/AIDS, 24 hour telephone counselling and home delivery of medication. It is run by a professional team of registered medical practitioners, specialist physicians, nurses, clinical psychologists, psychiatrists and social workers.

VIRGIN GA LACTIC

OUT OF THIS WORLD

positively influenced by man’s ability to go into space. The technology has been beneficial to many scientific endeavours such as weather

forecasting, communications and climate studies to name a few examples. Without it, our ability to understand the pace and

nature of climate change would be curtailed, as much of the evidence of the causes and

effects of global warming have been derived from satellite technology.

Virgin Galactic’s commercial suborbital space craft are based on Burt Rutan and Paul Allen’s SpaceShipOne, which won the Anasari

a $10 million US prize for the first commercial enterprise to travel into space using a privately funded, reusable, manned spacecraft twice in a two week period.

Rocket boosters power the first stages of ground based launches. Usually the oxygen is combined with fuel using curing and binding agents which contain toxic substances that deplete ozone (e.g. hydrochloric acid, aluminum oxide and chlorine). The advantage of Virgin Galactic’s hybrid rocket motor is that the fuel and the oxidiser are separate thus avoiding using these agents.

change

direction

in thinking

Continuing to realise the potential that space holds requires a dramatic and rapid change in space access technology, away from the dirty, dangerous and expensive systems that have been employed for the last half century. We need to make space travel less carbon intensive, less environmentally damaging, less wasteful, safer and more cost efficient so that it can play a key role in the low carbon economy of the future.

Here is what our companies are doing to make going out of this world more sustainable:

Cleaner space technology Virgin Galactic is a clean-tech project whose mission has been to overturn much of the traditional thinking behind 50 years of space travel . This has been realised with a design that has transformed the safety, cost and environmental impacts of access to space.

Virgin’s willingness to invest and take risks has already pushed the pace of change beyond that which government agencies and traditional industry have been able to achieve.

from a carrier aircraft at 50,000 ft rather than a vertical ground launch, radically reducing the amount of energy and therefore rocket fuel required to propel the vehicle into space

from carbon composite materials that are four times the strength of steel but only a quarter of the weight, dramatically reducing energy requirements

benign, non-toxic fuels

extent than any other manned space vehicle.

Test Bed WhiteKnightTwo is already the world’s largest all carbon composite aviation vehicle and the most fuel efficient of its size. In achieving its mission, Virgin Galactic can act as a test-bed for new and clean technologies, such as the use of carbon composites in large aircraft, which have applications across a range of industrial sectors.

Due to the experimental licence under which it operates, Virgin Galactic could also provide an ideal platform for testing the commercial use of and regulatory requirements for sustainable, renewable jet fuel.

rocket fuel

reduction

CARBON FOOTPRINT

Carbon footprint Calculations suggest that emissions per passenger, per suborbital space flight, will be approximately 0.8 tonnes1 – less than the per passenger footprint of a one-way business class flight from London to New York. Approximately 70% of the spaceflight carbon footprint is from the WhiteKnightTwo carrier aircraft, rather than the spaceship itself. This means there is great potential to reduce the overall carbon emissions from non-renewable sources by using a large proportion of sustainable fuel, once one is available.

Our markets:

Space tourism To date, fewer than 500 people have travelled into space, but Virgin Galactic will offer many thousands of people from around the world the opportunity to experience space travel first hand. This kind of space tourism presents itself as the primary target market for Virgin Galactic, without which the project would not have been feasible .

Scientific research Virgin Galactic aims to support low gravity and near-space scientific research through its space launch systems. In particular, access to the upper atmosphere from the limit of commercial aviation at ~12km (40000ft) to the edge of space at ~100km is currently very limited. Balloons cannot reach the upper atmosphere and orbital vehicles fly too high. Ground-based measurements e.g. with lasers, and rocket experiments into this region of the atmosphere, have either limited sensitivity or duration respectively.

The upper atmosphere is the “gateway” that connects Earth’s environment and space. Here great surges of energy meet; energy from the sun and interplanetary space travelling inwards and energy from the Earth’s surface radiating back into space. A specific region of the upper atmosphere, the mesosphere (50-90km) is a highly sensitive indicator of global atmospheric temperatures, with the potential to act as the ‘canary in the coal mine’ where climate change is concerned . Virgin Galactic aims to revolutionise regular access to this region for scientists and their experiments, thus greatly enhancing our ability to understand climate change and determine appropriate strategies to mitigate the impacts.

earth

tropospher e

stratosphere

thermosphere (aurora)

mesosphere

space

1. This is an estimate. Virgin Galactic will not know the exact carbon footprint until SpaceShipTwo completes its powered test flight programme.

An artist’s impression of Virgin Galactic’s future home, Spaceport America in new Mexico - now in course of construction.

Virgin Galactic’s carrier aircraft VMS Eve - the world’s largest all composite aviation vehicle.

The Virgin Galactic space tourism project has attracted a global media following and high levels of public enthusiasm and support. Virgin Galactic has been able to use its high profile to raise money for good causes. For example, in 2007 Virgin Galactic auctioned off a seat and raised $300,000 US which was donated to Virgin Unite to help support the creation of the Disease Control Hub, a partnership with the South African Government that aims to help save thousands of lives (you can read more about this in the Unite section on page 74).

In addition, the ability to travel suborbitally and experience periods of near-zero or ‘microgravity’ will allow for a wide range of valuable scientific experiments to be carried out, which currently have to be performed using sounding rockets or at great cost, using the long duration space station or space shuttle. Microgravity science can help to address problems such as protein folding, instrumental in developing drugs to combat a host of diseases; as well as aiding research into new materials for transportation, computing and biomedicine.

The space launch system under development will allow more detailed, affordable and frequent microgravity science experiments to be carried out by humans rather than robots, potentially advancing several areas of science that have stagnated in the last few decades due to poor access to space.

Partnering with NASA US space policy has increasingly been looking to the emerging private sector to provide space launch services – initially for payload but potentially in the future for professional astronauts and scientists .

While not Virgin Galactic’s core market, given these trends in US policy, there may be future opportunities for NASA to purchase Virgin Galactic suborbital flights for professional astronaut training, science research and the testing and qualification of equipment designed to operate

in space. This will allow NASA to achieve its aims more cheaply, effectively and with less environmental impact whilst enabling it to devote increased resources to non- commercial but vital exploration activities.

The Future Virgin Galactic’s plan for suborbital space launch represents the first of many necessary steps if we are to reap the greater benefits that space has to offer. The next steps will require significant new private sector investment which we believe will be readily available if Virgin Galactic is a commercial success. It is clear from industries such as mobile telephony that once technologies are opened to private R&D and investment, that innovation and change can rapidly follow. This is where Virgin Galactic, as a private company, can really make a difference.

We believe that the advent of cheap, on-demand small satellite launch vehicles, space-based solar power, space- based server farms, transcontinental passenger and freight travel via space and a range of other transformational applications are all achievable in a relatively short time frame. How short, will depend to a large degree on the early and visible success of Virgin Galactic and other similar cutting edge clean-tech space initiatives.

“We could use commercial su borbital human

transportation for early trai ning of astronauts.

. . . If I could buy a seat to s uborbital flight

for a few hundred thousand dollars. . . why

wouldn’t we have all our new astronauts make

their first flights in such a manner?”

Previous NASA Administrator Mike Griffin has

publicly stated:

Source: David. L, (2008) Private Suborbital Spaceships Could Aid NASA Science. Space.com (http://www.space.com/businesstechnology/080910-tw-nasa-suborbitalships.html)

RELAX AND HAVE FUN

VIRGIN MEDIA

VIRGIN BOOKS

VIRGIN GAMES

VIRGIN WINES

VIRGIN EXPERIENCE DAYS

VIRGIN BALLOON FLIGHTS

VIRGIN FESTIVALS

VIRGIN RADIO INTERNATIONAL

In the western world, we’re working harder and harder and earning ever more money but leaving little time to enjoy it. It’s said (but often forgotten) that money doesn’t buy happiness and that life is for living. Relaxing and having fun is good for our health, so it not only makes us happy but helps us live longer.

The Happy Planet Index shows that we are still far from achieving sustainable wellbeing and that it is possible to achieve long, happy lives without overstretching the planet’s resources.

Source: New Economics Foundation

A major challenge in our future, however, is that the media has regularly portrayed the necessary transition to a sustainable lifestyle as involving cutting back and living more frugally, which doesn’t sound like much fun at all. This has created the impression that a sustainable future requires making innumerable sacrifices, a view that is entirely opposite to Virgin’s vision. An ideal scenario would be to create happy and fulfilling lives which are also sustainable – a vision worth aspiring to, surely . With businesses spanning many sectors and touching many aspects of your lifestyle we feel that Virgin is in a perfect position to contribute to this vision. After all, the Virgin brand has always been about having fun in that unique Virgin way.

Virgin wants you to enjoy life safe in the knowledge that we’re working hard to make all of our products responsible and sustainable: the latest paperback from Virgin Books that you read in the park, the bottle of Sauvignon Blanc from Virgin Wines that you take to your friend’s for dinner, your favourite film on Virgin Media, or favourite song from Virgin Radio International, the weekend away at a V Festival, the friends you meet online with Virgin Games and even the Virgin Balloon Flights or Virgin Experience Days that you book to give yourself something special to look forward to. Virgin is a lifestyle brand and we want to ensure that your lifestyle can be a ‘sustainable lifestyle’.

Virgin Media uses its expertise and passion to discover hidden talent by encouraging and developing

young people through its competition Virgin Media Shorts.

brightest, undiscovered film-making talent in the UK and has been a huge success so far with over 2,000 film entries. Its efforts to nurture talented young musicians also continues to gather pace through the Road to V competition,

which gave exciting new bands the chance to compete to become the first act on stage at the V Festival.

Here is what our companies are doing to make relaxing and having fun more sustainable:

Virgin Media S horts

Chain of Custody tracks certified timber through every stage in the supply chain from the forest to the final user. Having FSC Chain of Custody does not mean that all the papers it uses is FSC certified but it shows it has procedures in place that prevent mixing

paper. It is a third party verified system – it has been audited on these procedures by BMTRADA and will be audited again at least every six months to ensure it is following procedures correctly (audits can take place at any time).Virtual & tangible entertainment

Just as Virgin Media is enabling low carbon forms of communication (as described in Staying in Touch page 40) it will increasingly make a contribution to reducing the environmental impact of buying music. In a government white paper comparing the carbon footprint and energy usage associated with various forms of music delivery, from CDs sold at retail to CDs sold on the internet to simple downloads, downloads were shown to have by far the least environmental impact. Purchasing music online reduced CO2 emissions by 40-80%, compared with buying a CD at retail1 (the research took into account all facets, from packaging to the type of shipping involved). Virgin Media has partnered with Universal Music to provide an unlimited MP3 music download subscription service to its broadband customers.

Downloading material is, of course, not confined to music and we have recently witnessed the development of e-books. Although there aren’t many e-readers on the market yet, they have the potential to revolutionise the industry and Virgin Books now offers its new titles as e-books wherever possible. At present Virgin Books’ greatest impacts are the energy used to produce and transport the books alongside the source

of its paper. Virgin Books is part of the Random House Group which was the first publisher in the world to get the Forest Stewardship Council (FSC) chain of custody certification . Currently over 75% of the paper it purchases is FSC accredited2, and for the next two years all of its black and white books will be printed on FSC accredited paper . Virgin Books is also working with other large industry players to resolve the complex issue of stock management in retailers, to prevent books being overstocked and then later pulped. Virgin Books now prints closely to the orders it receives and if books are returned and pulped the paper is recycled into newsprint.

Virgin Books makes positive social contributions through its significant involvement in literacy programmes, by means of its partnerships with Quick Reads and World Book Day. It donates books to a wide variety of charities with donations ranging from large consignments to Book Aid, The National Literacy Trust and The Roald Dahl Library to smaller one-off donations of single boxes of books to local charities and small fundraising initiatives. Virgin Books also runs a volunteer reading scheme which allows employees paid time away from work, to volunteer in London schools to help improve children’s literacy skills.

CO2 REDUCTION

40-80%

Forest Stewardship Council is an international,

organisation dedicated to promoting responsible management of the world’s forests. It is supported by NGOs including WWF, Greenpeace and the Woodland Trust.

1. Source: “The Energy and Climate Change Impacts of Different Music Delivery Method August 2009

2. Certified by the Forest Stewardship Council for paper from sustainable sources

FSC UK (www.fsc-uk.org), FSC International website (www.fsc.org)

Virgi n Boo

ks is a found

ing

memb er of

a wo rking

part y to d

evelop

a tool to m

easur e the

carbo n foo

tprin t

of a typic

al har dback

and paper

back

book w hich

will t ake in

to con sider

ation

the en tire l

ife of a boo

k inc ludin

produ ction

and d istrib

ution.

A study carried out in 2006 by Merrill Lynch reported that the internet gambling industry was still in its infancy with a projected peak expected in the year 2015. At that time Merrill Lynch predicted that the mature market would bring in $528 billion US annually worldwide, compared with $12 billion US back in 2006, making it by far the largest ecommerce industry. Source: Casino Gambling Web. Internet Gambling Industry Growth to Reach $528 Billion by 2015 (http://www.casinogamblingweb. com/gambling-news/online- casino/internet_gambling_indus- try_growth_to_reach_528_bil- lion_by_2015_20607.html)

Responsible gaming Technology has facilitated an increase in many different types of online entertainment for example, online gaming . Last year in the UK, the government estimated there were 3.5 million regular players3. While this number represents a considerable increase compared to past surveys, the number of problem gamblers seems to have remained constant at about 250,000. Gamblingplanet.org suggests that while the current recession has left many regular gamblers short of cash, it has also inspired a wave of new players looking for a fun distraction from troubling times, and online gaming is both cheap and accessible4.

As online gaming becomes more popular, the industry must make sure that it develops appropriately so that it is a safe and responsible form of entertainment. Virgin Games is an online gaming business that offers three main games – poker, casino and bingo – to its 45,000 cash customers and five times as many free-players. Virgin Games ensures that the range of gaming products it offers is done so in a fun and safe

environment and is very active in making sure it can identify customers with a potential problem to avoid exploiting the vulnerable few. It does this by developing proactive, customer-facing solutions to protect and educate players.

Virgin Games is one of a select group of operators that has been invited to take part in the development and trial of an industry- wide data sharing solution. The idea is to help customers to recognise warning signs and take preventative steps rather than only offering solutions after a problem has arisen. There are in-built spend limits and self-select tools which prevent customers from inadvertently overspending. It has default deposit/withdrawal limits. Players can also set their own lower deposit limits and self-exclude themselves for a period of time if they want to take a break from playing. Virgin Games is also one of a handful of companies to be fully certified by GamCare, the gaming industry’s most recognised problem gaming support organisation.

increase in online entertainment

Virgin Games – why go to Vegas when we can bring Vegas to you?!

Sony E-reader for reading digital copies of books

Business Stripped Bare by Richard Branson, published by Virgin Books

One of Virgin Books environmental books - Why Your World is About to Get a Whole Lot Smaller by Jeff Rubin

3. Department for Culture, Media and Sport (2006). A literature review and survey of statistical sources on remote gam- bling. London: DCMS.

4. Gambling Planet.org. (September 2009). Is online gambling recession-proof? (http://www.gambling- planet.org/editorial/Is- online-gambling-reces- sion-proof/091009)

The impacts of wine Virgin Wines recognises that a responsible approach to drinking is important and believes that “Drinking is only fun when you don’t overdo it”. The company actively promotes the Drink Aware logo and will be addressing ways of further promoting responsible drinking in the future.

A significant environmental impact of Virgin Wines is the use of water in the production of wine, specifically through irrigation of the vines. It’s estimated that it takes 120 litres of water to produce a 125 ml glass of wine. French growers only use natural irrigation and other Virgin Wines’ growers have installed water-recycling processes to save on the water they draw from the local community. They are looking to encourage more growers to do the same.

Virgin Wines has used its influence to ensure that its distribution partner, HDN, has worked hard to create an Environmental Policy focusing on carbon reduction and other negative impacts. Its efforts were recognised at the Interactive Media in Retail Group’s Online Green Awards where it was awarded Large Supplier of the Year for 2007 and 2008.

Virgin Wines also has a strong connection with forests through its use of cork. In contrast to the issues faced by Virgin Books, using cork for wine bottles harvested in a sustainable manner has social benefits as outlined in a report by WWF (2006)5. Up to two million hectares of cork forest in the Western Mediterranean and North Africa could be lost if the industry moves away from cork stoppers (which accounts for 70% of the cork market). The report also claims that the loss of the forests would lead to the loss of over 62,000 jobs. Others argue however, that aluminium screw caps are very energy efficient when recycled as they save around 95% of the energy used to manufacture them and can be recycled an infinite number

of times. Virgin Wines is working hard to understand both sides of the debate so it can make an informed judgement on this issue.

Since Virgin Wines works predominantly with smaller growers to source its wines, it supports those with limited marketing budgets and purchasing power, while giving them exposure and enhancing their return.

Internet shopping and extensive, sophisticated supply chains allow customers to shop with ease for products from all over the world, often without the knowledge of where they come from or how they are made. Virgin Wines believes that transparency is vital to know more about its wine so that its customers can make informed decisions about the type of products that they buy. For that reason Virgin Wines offers its customers the chance to engage with winemakers both online and at wine-tasting events. Virgin Wines also runs regular competitions, giving its customers the chance to win visits to its vineyards. In the future it plans to provide more information to customers by presenting individual profiles for each of its winemakers and their wineries in the WineZone section of its website and on its Facebook page6.

Virgin Wines’ ambition is to increase the range of organic wines it carries, and it plans to achieve this by supporting a number of its growers through the complex and expensive process of becoming organic by guaranteeing to purchase their wine and thereby mitigating any risk to them. In addition, Virgin Wines is working with a cooperative of growers in the Cape in South Africa in order to develop a range of Fairtrade wines whose premium prices will provide the extra funds needed to support the development of a school classroom.

Last year Virgin Wines sold around 13,000 bottles of organic wines and 25,000 bottles of Fairtrade wine (July 2008 – June 2009).

Steve Grimley – one of Virgin Wines’ Australian winemakers

5. Cork Screwed? (May 2006) WWF (http://assets. panda.org/downloads/cork_rev12_print.pdf)

6. http://www.facebook.com/home.php?#/pages/

The carbon footprint of a day out Environmental impacts are a priority for Virgin Experience Days since one of its best selling gifts is a carbon- intensive driving experience. However it is also currently working with a number of suppliers who offer sustainable experiences. For Balloon Flights, all customers have to travel to the launch sites which are usually in rural areas and only accessible by car, thereby contributing to the overall carbon footprint of the experience.

Since Virgin Balloon Flights and Virgin Experience Days offer intangible gifts it’s important for them to create perceived value by sending gift vouchers and information packs to customers prior to their experience, which can often involve unnecessary amounts of packaging. Balloon

Flights has introduced 100% recycled and recyclable paper for all its tickets and brochures and Virgin Experience Days is developing recyclable packaging.

Last year Balloon Flights donated £1 to The Forest Trust for every tonne of carbon produced during the experience, which was given to support projects conserving rainforests and ensuring long-term sustainable forestry management to maximise value to people, wildlife and the environment. Balloon Flights has taken this one step further by launching a range of designer clothes and bags called Bon Voyage! made out of recycled balloon envelopes with the sustainable products and services company Worn Again, which gives a percentage of its profits to the sustainable lifestyles charity Anti-Apathy .

Worn Again have so far recycled two balloons into 500 bags & jackets.

A Worn Again Virgin balloon jacket in full flight!

170,000 people attended two V festivals across the UK

five Virgin festivals across Canada

one Virgin festival in the US

four Virgin festivals across Australia

Biodiesel generators were used on all stages at Virgin festival Australia.

Partying with concern for the planet The 12 Virgin music festivals around the world have made huge efforts to improve their environmental impacts by:

chain

biodiesel and solar generated power

water.

With around 400,000 people attending the Virgin festivals, there is a great opportunity to raise awareness of environmental issues . A number of the festivals have a dedicated area on-site to educate and inspire people on green issues. The festivals actively encourage punters to participate in minimising their environmental

impact through initiatives such as:

returning cups to a recycling bank are rewarded with a discount on the next pint

car-share to and from the event

site.

In fact, in response to the challenging economic climate and Virgin Mobile US’ positioning as a company who gives back to the community, in 2009 the US festival was free. Re-named ‘Free Fest’, the event was free to attend in return for a non-compulsory charitable donation, raising over $80,000 US and offers of 30,000 hours of help within the community and on environmental projects.

The US festival has won numerous awards for its work in greening its festival and is considered one of the greenest large music festivals in the country. Although other festivals in the US are starting to focus on green issues, very few do it so comprehensively.

PARK + RIDE

Diversion

Virgin Festival Canada.

Virgin Festival’s Lady GaGa concert in Toronto in aid of Virgin Mobile Canada’s RE*Generation Campaign.

Virgin Experience Day spa.

Virgin on the airwaves Music is an integral part of Virgin’s heritage. Around 21 million people currently listen to Virgin Radio International associated FM radio stations, making its programming one of the most widely consumed products within the Virgin Group. Virgin Radio International works with these radio stations with the aim that they become the most popular within their respective markets . It wants listeners to be happier, better informed and more aware of what’s happening in their communities.

Virgin Radio France is pursuing an environmental initiative by:

reduction plan

related to deforestation and global warming

in the Peruvian Amazon to compensate for its carbon emissions.

The trees were planted by the 1,500 small cocoa producers comprising the Acopagro cooperative, a recognised and certified organic cocoa production organisation that is also certified by Fairtrade.

Virgin Radio International is a management services company tasked with overseeing and developing the Virgin radio franchise globally.

Virgin Radio International aims to establish the first branded global FM radio network. It currently operates in North America, Europe, the Middle East and Asia. It is exploring further opportunities throughout the World and anticipates launching more Virgin radio stations over the coming years.

Virgin Radio Advertisement

OUR PEOPLE Virgin companies employ over 43,000 people in over 20 countries worldwide. Plus a few thousand more people are employed by partner organisations but deliver a service on Virgin’s behalf to our customers.

The Virgin brand is built upon Richard’s philosophy that if you keep your staff happy then the customer will be happy, and if you keep the customer happy then the shareholders are happy. The size of our shareholding in the Virgin companies can vary dramatically but the principles of how we treat our staff are consistent. It’s Virgin people who deliver brilliant customer service, who give the company its personality, who shape its culture and who innovate. Virgin people are Virgin’s greatest asset and we believe in treating them as such: with respect, looking after their welfare and allowing them the freedom to be themselves. We do this by focusing on key areas of people practice: culture, diversity, health and wellness, development, reward and saying thank you.

1. Culture

Virgin has a strong set of brand values which shapes the way we do business and so we select people to work with us who share those same principles. We want people to bring their personalities to work and our lack of hierarchy fosters a culture that encourages freedom of expression at all times. Our guiding management principle is this; give individuals the tools they need, outline some parameters in which to work and then let them get on and do their stuff!

Building on a progressive culture is part of doing business the Virgin way and so we regularly invite employee feedback through a mixture of formal and informal mechanisms (staff communication events, CEO lunches, blogs and interactive intranets, employee satisfaction/

In 2010 we aim to have

at least 75% of Virgin

companies running a staff

survey every two years. We

set each Virgin business a

target of having a minimum

of 70% employees satisfied,

or very satisfied working

at Virgin. In the near future

this will form part of the

formal requirements we place

on new businesses when they

agree to operate under the

Virgin brand licence.

Following em ployee feedb

ack, Virgin M edia

ran an initiat ive last year

called ‘Trading

Places’ in whi ch two empl

oyees from t he

UK swapped places with

two employe es from

the call cent re in India fo

r a week to p romote

understandin g of working

environmen ts in

different cou ntries.

They were fi lmed throug

hout their vis its. The

team conclu ded that altho

ugh culturall y

the environm ents were ve

ry different,

everything e lse was just

the same -

inductions, t he average w

orking day, t raining

and of cours e the custom

er calls!

engagement surveys, focus groups). At present around half of Virgin companies report having run a formal staff survey in the past two years. Of those that have been surveyed:

- 84% of employees said they are happy working at Virgin,

- 77% said they intended to keep working at Virgin for the foreseeable future,

- 85% said they are happy to recommend Virgin as an employer to others.

In the past year we have developed our ‘People Stats’ to measure things such as staff turnover, absence and engagement levels across all Virgin companies, allowing us to understand the implications of these key people measures thus providing a focus for future action. We also consolidate these numbers at a group level to give us an overall picture of Virgin as an employer as well as benchmarking ourselves regularly against other external companies to highlight if there are things we need to work on.

From these stats we know that in 2008 the Virgin Group had an overall turnover rate of 27.6% (slightly above the average of our benchmark group) which is mostly due to a higher turnover in our leisure and hospitality companies. High turnover is concerning when we pride ourselves on our efforts to make Virgin a great place to work and so this year we are undertaking a project to dig into the reasons why people leave.

Virgin believes that anyone who delivers a service on behalf of Virgin should be treated in a way consistent with our people principles and this includes employees of third parties. Virgin therefore has a clear set of outsourcing/ off-shoring guidelines which our companies are required to adhere to when services are contracted out to a third party .

With bases in different locations all across the UK,

Virgin Trains has recently introduced an approach

of local forums to work on local agendas. Since the

needs of the people in Holyhead are very different

from the needs of the people in Euston using a

nation-wide approach to address diversity was

nonsensical. Examples of initiatives prompted by

feedback from the local Euston forum are:

to remote parts of the world for family emergencies

spoken by employees working at Virgin Trains in Euston

of assessment procedures where a more straight forward

job-based assessment would suffice and wouldn’t discriminate

against those less proficient in written English or numerical skills.

2. Diversity

Virgin is a diverse group of businesses with a huge range of products and services and a customer base from all walks of life. We recognise that to be the best we need to attract and retain the best people, and to ensure that our employees are as diverse as our customers.

We aim to reflect the diverse nature of society and to foster an environment which values people’s contribution irrespective of their age, sex, disability, sexual orientation, race, religion, marital status, ethnic origin or shoe-size. To support this, each Virgin company has policies in place which lay out the core principles of respect and fair treatment and we regularly train managers to ensure they’re confident in their role of managing others .

Virgin employs a high proportion of ‘younger’ workers - 58% of our employees are under the age of 35. We believe this is reflective of the youth associations of our brand, but we also know that it makes commercial sense to tap into a wider talent pool of older workers which, as well as giving us access to some great experience, may in turn have a positive impact on our retention figures.

We are proud of our well balanced female to male gender split within the group. In 2008 women accounted for 48.6% of our workforce. However some of our companies have skewed gender ratios attributable to their industry. For example, cabin crew are largely female and train drivers are mostly male. These companies need to do further benchmarking to compare themselves relative to industry norms and to address imbalances. Around 32% of our management population and 33% of our professional population are female which is about average compared to the companies that we benchmark against. In the future, we will continue to profile women working in senior roles within the group in order to provide role models for women in other Virgin companies.

As a group, our ethnicity mix appears to compare strongly against other companies (the median in Saratoga’s European database is approximately 88% white whereas only 70% of Virgin employees with a recorded ethnicity are white). However, this data is consolidated across all our territories and we recognise that the greater ethnic diversity of some of our regions including India and South Africa has an impact on the overall statistics.

3. Looking after our People

Our people’s wellness is of paramount importance to us. This includes every aspect of health – physical, mental and spiritual.

We strive to create sensitive working environments that are conducive to wellbeing; using ergonomic work- stations, natural light, plants, colour and music and visual entertainment where possible. Where uniforms are required, our remit goes beyond safety, comfort and identity – we want them to be attractive and nice to wear too.

Virgin companies around the world seek to protect the wellness of their people by educating them about illnesses or conditions which may affect them, including HIV/AIDS, malaria, TB, heart disease, cancer or health issues related to stress. In regions of the world with high HIV/AIDS prevalence, we provide access to counselling and testing on company premises to ensure that our employees are aware of how to protect themselves and can access the necessary advice and treatment. We strive to enable a climate of non-discrimination and harassment by ensuring that a programme of awareness and education exists for all our staff and by providing guidelines and training for managers in how to manage the issues of HIV/AIDS within the workplace.

Lunch with Stephen Murphy (group CEO). Stephen in the middle surrounded by employees from Virgin Active, Virgin Atlantic, Virgin Media, Virgin Money and Virgin Trains.

Target: we aim to increase

the number of vacancies that

were filled internally to

around 35% in the coming

year. We have recently

completed a new Careers

Portal which provides a

facility for our employees to

see and apply for jobs in

Virgin companies around the

world.

We also give our people access to impartial advice (e.g. through an EAP1) if they are facing issues inside or outside of work. Some of our businesses have introduced further initiatives to encourage their people to look after their own health and wellness, including:

negotiable part of working at Virgin. We’ll also be able to identify areas of best practice to share across the group.

With employees’ spiritual and mental health in mind, we seek to provide a range of flexible working and family friendly policies for employees to utilise when the time is right. In many cases, Virgin companies choose to enhance the statutory provisions on maternity, paternity or adoption leave to ensure that people get to spend time with the people that matter the most – their families. Some of our companies offer their people the chance to

take sabbaticals during which they can pursue a personal endeavour such as travelling or further study. But it’s not

more engaged and consequently more productive people, which is good for us as well.

However, as at the end of 2008 less than 1% of our employees were taking advantage of the company’s flexible working or career break programmes. As such we are in the process of reviewing these policies to ensure that what we offer strikes the right balance between commercial requirements and what our people need in order to make the most of their time away from work.

4. Developing our People

At Virgin we don’t aim to manage our employees’ careers through every stage of their development. As an entrepreneurial company, we expect our people to be

strongly encourage employees to move freely and pursue opportunities within the Virgin Group. In 2008 22% of our

Given our entrepreneurial heritage we try to put in place mechanisms which encourage and reward innovative thinking in our companies .

Virgin Active has a longstan ding, successful

innovation scheme in which e mployees can submit

new ideas online to be consid ered by the business.

Virgin Active has approxima tely 4,600 staff and receiv

around 1015 suggestions eac h day. Roughly three of thes

e are

implemented per month and f or each successfully impleme

nted

idea the staff member receiv es a small cash prize in reco

gnition.

The introduction of kettle be lls into our Virgin Active gy

ms is a

great example of an employee idea which was hugely succ

essful

with our members and a real commercial win!

Example:

Innovation Winners - Sarah Kingsbury & Alison Smith

Customer Service Winner - Talli Osborne

service funded by the employer. EAPs provide employees with access to

really…

5. Rewards & Saying Thank You

At Virgin we take a holistic approach to rewarding our employees. We help with all the usual things like saving for retirement (pensions/annuities/401ks2) and access to healthcare at no or reasonable cost, but added to this our companies promote employee wellbeing with things like free fruit, flexible working hours and cooked lunches delivered to new parents or those who’ve suffered a bereavement. A number of larger Virgin companies offer flexible or voluntary benefits packages which give people the chance to pick and choose the benefits best suited to them, and to use their salary to buy extra benefits.

The Virgin Tribe scheme is a creative initiative that we have evolved to help our people make the most of their money by offering discounts and special offers on a range of Virgin products and services, plus a large number of third party deals. In 2008 UK Tribe members spent over £425,000 on Apple products and over £1.5 million on Virgin Holidays; approximately 6,000 people hired a car, booked airport parking and went continental using Eurostar in those same 12 months. And they all saved money. Three quarters of UK employees, 66% of South African and 25% of Australian employees have a Tribe card (the Australian scheme launched in late 2008).

At Virgin we believe in celebrating employees who go the extra mile. Both employees and customers can nominate out-of-the-ordinary employees through schemes designed to express our appreciation. These include Virgin Atlantic’s Heroes scheme, Virgin Media’s Shout programme and Virgin Money’s Academy Awards. Each year we take the winners from each of our operating company award schemes and invite them to an intimate event hosted by Richard called the Annual Group Stars Dinner. And sometimes Richard likes to say an extra special thank you by picking out one employee to spend a week at one of his lovely holiday resorts.

Many Virgin employees are active in their own ways to improve the wellbeing of those less fortunate than themselves. Across the group, Virgin people regularly volunteer their time and resources to a wide range of causes that are close to their hearts. We are extremely proud of all these endeavours which completely embrace the Virgin spirit of social responsibility .

We work with

Virgin Unite

to harness the

talent and the

entrepreneurial

energy available

throughout the

group. We do so

by inspiring our

people to give

their time, money

and stuff, as

appropriate, to

support charities,

foundations and

social enterprises

in tackling

tough social and

environmental

problems.

Target - we are aiming for an 80% take up on Tribe so that more of our staff can take advantage of the deals available to them.

Virgin Tribe Card

to set aside money in a tax efficient way for their retirement. The employer can also contribute.

Issue 13 The magazine for everyone at Virgin

Cover : Issue 13 : Roger 1

Issue 16 The magazine for

everyone at Virgin

ROGER

FOR ALL THIS AND MOR E VISIT VIRGIN.COM

RICHARD STRIKES A POSE

WIN SOME UNUSUAL DESIGNER GEAR

BACKSTAGE AT THE V FESTIVALS

TAKE OUR PERSONALITY QUIZ!

Issue 16 The magazine for

everyone at Virgin

ROGER

FOR ALL THIS AND MOR E VISIT VIRGIN.COM

RICHARD STRIKES A POSE

WIN SOME UNUSUAL

DESIGNER GEAR

BACKSTAGE AT THE V FESTIVALS

TAKE OUR PERSONALITY QUIZ!

Issue 14

The ma gazine

for

everyo ne at

Virgin ROGER

What were

you u p to

in 198 4?

K I C K I N G

B A C K I N F

E T C H I N G

L A C E U P S

S P O R T I N G

K N I T W E

A R A T I T S

B E S T ?

U S I N G U P

- T O - T H E - M

I N U T E T E

C H N O L O G

Y ?

M A K I N G

A M I X TA

P E ?

WAT C H I N

G T H E A - T

E A M O R D

A L L A S ?

!"#$#"% &&&!$'""

'(%

Roger is our quarterly staff magazine that reaches all staff worldwide. It’s an informative, entertaining and inclusive

piece of

communication, a reminder to each reader that they’re an important part

of the business.

It’s a great way of keeping up to date with what’s going on in other

Virgin companies and helps us keep that Virgin family f eel; it informs

staff about new exciting projects and expansions within the group;

events and launches that have taken place and also featur es fun and

interesting

articles on

individual

staff and

companies. It

emphasises a

shared attitude,

culture and

history across

what has

become a hugely

diverse group

of companies.

OUR CUSTOMERS

Roger Magazines

Virgin is a consumer champion, and to ensure that we have great customer services, it is critical that we have competent and passionate staff that care about great customer service. We also make sure that we listen to our customers, engage with them and think like they do. When we design our services and products we create them from the customer’s viewpoint ensuring that they are both flexible and accommodating. Our service principles are to:

customers and employees

when things go wrong

outcomes based on ‘look up tables’

dealings.

Virgin has a clear mission when it comes to its customers.

The genesis of every Virgin company can be boiled down to this:

There is a market where consumers aren’t getting a good deal, nor are they getting much choice. Virgin senses their frustration and steps in, in effect answering an unspoken “calling” from the consumers to intervene. Virgin breaks with convention and backs up the challenge with an alternative, tangible Virgin solution.

The result?

Virgin is clearly identifiable as offering another way - a better way. Virgin inspires consumers by having the guts to fight their corner.

VIRGIN UNITE Launched in September 2004, Virgin Unite is the non- profit foundation of the Virgin Group. It unites people across the globe to tackle tough social and environmental problems with an entrepreneurial approach. Its aim is to help revolutionise the way businesses and the social sector work together – driving business as a force for good. This is based on the belief that this is the only way we can address the scale and urgency of the challenges facing the world today. Its work focuses in three core areas.

Business Mobilisation - supporting businesses across the Virgin Group, and beyond, to help them put social and environmental impacts at their core, so that business is a force for good

Entrepreneurial Incubation - developing entrepreneurial initiatives that lead to economic empowerment and healthy communities

Global Leadership Models - using Richard’s mobilising power to create new models to address conflict, climate change and disease.

Business Mobilisation – Business as a Force for Good

Virgin Unite has been working closely with the Virgin businesses all over the world for the last few years to support them in putting driving change for communities and the environment at their core. Many of the businesses are doing exciting work in this area. Some examples are listed below.

It worked closely with Virgin Mobile US to develop The RE*Generation campaign by offering support with strategic development, the design and delivery of staff and customer engagement initiatives and partner management. The initiative enabled Virgin Mobile US staff and customers to support homeless young people and leading grassroots partners such as StandUp for Kids and Youth Noise. Their efforts, reinforced by acclaimed singer songwriter Jewel, have had a ‘disproportionate impact on the issue of youth homelessness’ by: lobbying Congress for the introduction of a Youth Homelessness Month, raising awareness of the issue by 36%, investing over $3 million US and facilitating over 200,000 customer actions in support of the campaign. The next phase in the development of this campaign is other Virgin businesses in the US joining together to maximise their impact and to ensure that business truly is a force for good.

In South Africa, Virgin Active worked with Virgin Unite and local entrepreneur Tumi Masite to open a Community Gym in Alexandra Township, Johannesburg. This initiative has since flourished to become a local community centre offering a number of initiatives that extend beyond fitness, including: rehabilitation for stroke patients that cannot reach hospitals, and the Twilight Kids programme, which encourages street kids to spend time in the gym to distract them from the negative influences of the streets. Virgin Active has a strong global programme to look at how they can help reactivate young lives through a focus on health and wellness.

In 2008 to expand the focus on business as a force for good, Virgin Unite launched Entrepreneurs Unite, a group that brings together successful international entrepreneurs

to help them leverage their resources, expertise and creative energy to become a force for good. For example, Joe Polish – an internet entrepreneur – has established a group from his contacts and friends to support Virgin Unite and to date they have committed over $1 million US.

Entrepreneurial Incubator - Impact on the Frontlines – bringing together the best of the social and business sectors to create new models

The Bhubezi Community Healthcare Centre has been established as a ‘one stop healthcare clinic’ resulting from a partnership between USAID, the South African Government, Anglo Coal, Virgin Unite and the Dutch entrepreneur, Doctor Hugo Templeman. The clinic, based in rural South Africa, provides basic healthcare services on a sliding scale fee basis and free diagnosis and treatment for those with HIV and AIDS. Over 40,000 patients were seen in 2009. Of the patients that have been initiated on antiretroviral medication, 80% remain on treatment.

The Branson School of Entrepreneurship was established to nurture budding entrepreneurs and incubate their businesses by equipping them with skills and seed funding. Virgin Unite is working closely with CIDA City Campus, and other partners, including several Virgin businesses, to train over 800 young people from economically disadvantaged backgrounds each year. The School can incubate up to 35 businesses for a 12 month period and a seed fund has supported 14 businesses, employing 175 people to date. For example, Gaming Zone is a video arcade franchise located in repurposed shipping containers in Soweto (a township near Johannesburg), which offers the latest gaming for local children. Gaming Zone employees 15 people and currently consists of seven containers, with 100 -120 children visiting each day.

Businesses across the Virgin Group have also raised hundreds of thousands of pounds to support the Rural Transport Network – providing motorbikes to health workers. These health workers save many lives by delivering essential medicines and health education to people in isolated rural areas in Kenya, but they are also entrepreneurs. The innovative approach of this project means that these riders also have the opportunity to use the motorbikes to start up their own local businesses, such as a taxi or delivery service, enabling them to earn a livelihood for themselves and their families while providing vital services to their communities. There are currently 63 bikes on the road that have provided essential medical care – including reaching over 6,000 people every month through community health outreach events.

Heaven’s Angels rider Kennedy Otieno at work in Kenya

The Virgin businesses and Virgin Unite are also supporting a suite of innovative entrepreneurial initiatives that are helping to protect forests around the world with business based approaches – from Australia, to the UK and the Congo.

All of these initiatives and others are supported by a number of influential celebrities such as Estelle, Jewel, Natalie Imbruglia and Christian Slater who have joined forces with Virgin Unite, as ambassadors to raise funds and awareness of social and environmental issues in the global media. In 2008 alone, through its ambassadors, Virgin Unite had a media reach of over 50 million people and had significant impact on hard to tackle issues such as obstetric fistula (a preventable childbirth injury affecting over two million women and girls across the world) by raising awareness and funds.

Richard’s ‘Big Ideas’ New Global Leadership Models

The Elders Founded in 2007 by Nelson Mandela, Graça Machel, Desmond Tutu, Peter Gabriel, and Richard, and incubated and supported by Virgin Unite, The Elders comprises ten visionary leaders who speak freely and are fiercely independent. The Elders work both publicly and behind the scenes, collectively and individually. They support courage where there is fear, offer hope where there is despair, foster agreement where there is conflict, including in areas such as Kenya, Cyprus, Darfur and Zimbabwe. They also work on a number of global issues, such as health and gender equality.

The idea of The Elders came from Richard and Peter Gabriel, who felt very strongly that, in an interconnected world, we need leaders who are respected and experienced in problem solving at a global level. They were inspired by the role that elders play in traditional societies – as a source of advice, wisdom and experience. They took the idea to Nelson Mandela who agreed to help bring a group of ‘global elders’ together. Virgin Unite was then instrumental in building the initial concept plan, in bringing together a group of passionate and influential partners who provided $18 million US in support of this initiative and in recruiting a strong management team led by Mabel van Oranje.

In 2009, Virgin Unite supported Richard to start two new global leadership models; The Carbon War Room and The Disease Control Hub.

www.theelders.org

The Carbon War Room Achieving sustainability of the human race on our planet is the defining challenge of the 21st Century. The Carbon War Room believes that the private sector, public sector and civil society must join forces to build a common framework that can take on this challenge with the urgency and scale required. In June 2009, Virgin Unite helped support Richard to bring together a group of the world’s top entrepreneurs to kick off the Carbon War Room. This global initiative will harness the unique influence, resources and spirit of entrepreneurs. The vision is to mobilise capital, innovation, expertise and international collaboration to speed and scale sustainable new market models to drive a low carbon economy. The Carbon War Room will increase the effectiveness of climate change efforts already underway; it is not about duplicating existing efforts but will focus instead on filling gaps. Jigar Shah, the founder of Sun Edison, is the CEO. He is joined by former Costa Rican President Jose Maria Figueres who has taken up a role as the Chair of the Board. Together, they will lead some of the best entrepreneurial minds to help find solutions that will deliver a low carbon economy.

www.carbonwarroom.com

Disease Control Hub Developed in partnership with the South African Government, the Disease Control Hub will bring together a number of national and global partners, including experts and frontline organisations, to create a health resource for South Africa and the Sub-Saharan African region. This initiative is intended to transform responses to devastating

Lazarus Seema Born in a small village in the Freestate, 26 year old Lazarus has lost both parents and he now supports his three siblings.

Always being told that “he talks too much”, Lazarus felt that marketing was his ideal vocation. Through the Branson School of Entrepreneurship, he developed skills in Business Communications. He is now the MD of his own company, Milestone Communications, which was funded through the Branson School of Entrepreneurship and Virgin Unite. The business continues to do well, recently employing two more people and increasing the

positive impacts within the community. Lazarus remains focused on continually improving the company by developing its own marketing strategies. He feels that being a graduate of the Branson School of Entrepreneurship has given him “status” within the business world. Lazarus hopes that he will be a positive role model within his community. He is the only person from his village who has graduated from University and who owns their own company. He aspires to show others that by having a “go getter” attitude, anything is possible.

The Elders with Richard Branson and the advisory board members

diseases such as HIV and AIDS, TB and malaria. It will work to: consolidate, analyse and coordinate information, map disease burden and responses, maximise resources, and coordinate efforts to defeat these diseases. The Disease Control Hub will focus on assisting and scaling up current initiatives and rapid response mobilisation.

Virgin Earth Challenge In 2007 Richard put up $25 million US for the Virgin Earth Challenge, a prize for whoever can demonstrate, to the judges’ satisfaction, a commercially viable design for “air capture” which is in the removal of greenhouse gases from the atmosphere.

The Challenge is judged by Al Gore, Sir Crispin Tickell, Jim Hanson, James Lovelock, Tim Flannery and Richard Branson. It has a simple mission, to reward the best applicant and help take their idea from prototype to a commercially viable business.

Air capture is one example of what many now call “geoengineering” - the deliberate large-scale intervention in the Earth’s natural systems to address climate change. Whilst geoengineering is still a very young science it is attracting serious attention from both policy makers and the science community. The recent Royal Society report1 on geoengineering supported Richard’s original thinking - these technologies could one day be important and although we hope that we never need them, now is the time to test their technical viability and resolve legal, ethical and political complications.

The deadline for entries passed in January 2010 and in total we received over 1200 - ranging from brilliant to eccentric! We are currently assessing the applications and the science behind air capture. We want to ensure that the prize is sensitive to the latest science and policy thinking. In aid of this we are therefore talking with the Royal Society, Oxford Institute of Geoengineering along with other experts around the world.

Many entries pointed out that trees and forests are fabulous sequestration machines. The logic is compelling and the irony depressing; while we search for cures to remove greenhouse gases from the atmosphere we simultaneously cut down swathes of natural carbon sequesters. Intellectually we have no disagreement with the rainforest advocates but the prize’s intention was to reward technological innovation. This observation however has motivated a company focus on forests, (for more information on forests read the next section).

www.virginearth.com

And the next big idea…

The coming year will also see a huge effort to bring all sectors together including businesses, social and government organisations and the global community to support the people of Zimbabwe. Virgin Unite is working closely with Richard and other partners to set up a trust in Zimbabwe to help facilitate the flow of philanthropic and commercial funds back into the country.

It is widely accepted that reducing the rate of deforestation is fundamental to stabilising the global climate. The world simply cannot meet the necessary greenhouse gas emission reduction targets without reducing deforestation, which is responsible for around 17% of global greenhouse gas emissions1 .

At the current rate of deforestation (5% of the world’s tropical forests are cleared each decade2) experts fear that many of the world’s forests could be reduced to shadows of their previous size by the middle of the century .

Deforestation has a huge impact on climate change. Living forests act as carbon sinks and once destroyed by logging or fires become carbon sources, releasing CO2 back into the atmosphere3. Tropical forests absorb up to 15% of annual man-made greenhouse gas emissions and 75% of the world’s living carbon is stored in forests4. Deforestation has additional negative impacts on climate change, as rainforests form clouds which in turn reflect solar heat. If the world is serious about tackling climate change, then preserving our remaining ancient forests has to be a priority5. However, the opposite is currently happening with tropical deforestation rates increasing6 year on year.

FORESTS

Deforestation results in the release of more than 78 billion tonnes of CO2 annually. Source: IPCC, AR4 Synthetic Report (2007)

The Forest Trust (Photo by E. Parker)

A few years ago humid tropical forests

covered 12% of the planet’s surface, now

they only cover 5%.

Source: The Prince’s Rainforests Project. An Emergency Pac kage for Tropical

Forests. The Prince’s Charities. March 2009.

1. IPCC, AR4 Synthetic Report (2007)

2. Mongabay (2006) World bank says carbon trading will save rainforests. 23 October 2006. http:// news.mongabay.com/2006/1023-forests.html

3. Deforestation and climate change. Greenpeace UK. http://www.greenpeace.org.uk/forests/ climate-change

4. IPCC (2000) Land Use, land-use change and forestry. Special report. Watson, R.T., Noble, I.R., Bo- lin, B., Ravindranath, N.H., Verardo, D.J., Dokken, D.J. Intergovernmental Panel on Climate Change (IPCC): http://www.grida.no/Climate/ipcc/land_use/index.htm

5. Deforestation and climate change. Greenpeace UK. http://www.greenpeace.org.uk/forests/ climate-change

6. As a percentage of total forest cover.

1. Royal Society (September 2009) Geoengineering the climate: science, governance and uncertainty (royalsociety.org/geoengineeringclimate)

We’re losing an area the size of 36 football pitches per minute. Source: Friends of the Earth

(2009). Saving forests.

http://www.foe.co.uk/cam-

paigns/biodiversity/issues/

saving_forests_18269.html

7. Mongabay (2006) World bank says carbon trading will save rainforests. 23 October 2006. http://news.mongabay.com/2006/1023-forests.html

8. SCBD Secretariat of the Convention on Biological Diversity (2001). The Value of Forest Ecosystems. Montreal, (CBD Technical Series no. 4)

9. FAO (2006) Global Forest Resources Assessment 2005: Progress towards Sustainable Forest Management, FAO, Rome [Online] Available from: http://www.fao.org/DOCREP/008/ a0400e/a0400e00.htm [Accessed on 28th July 2008]

10. Eliasch, J. ‘Climate Change: Financing Glboal Forests’ (Eliasch Review). London, Office of Climate Change, Government of the United Kingdom (2008).

11. Hassan, R., Scholes, R., Ash, N. (eds.) (2005) Ecosystems and Human Well-being: Current State and Trends, Volume 1, Millenium Ecosystem Assessment [Online] Available from: http://www.millenniumassessment.org/en/Condition.aspx

12. The Forest Footprint Disclosure Project (www.forestdisclosure.com)

13. The Prince’s Rainforest Project (www.rainforestsos.org)

14. The Forest Trust (formerly Tropical Forest Trust) (www.tropicalforesttrust.com)

15. The Green Light Trust (www.greenlighttrust.org)

16. The North Australian Indigenous Land and Sea Management Alliance (www.nailsma.org.au)

17. United Nations Framework Convention on Climate Change (http://unfccc.int)

Virgin Media donated £20,000 from 2008 to 2009

Virgin Unite donated £10,000 in 2009

$65,000 (Australian dollars) in 2009.

NAILSMA aims to support practical Indigenous land and sea management. (www.nailsma.org.au)

Avoided deforestation has additional benefits to fighting climate change7. Forests hold the majority of the world’s terrestrial biodiversity8 , provide watershed protection, food, timber and non-timber products, medicines and homes for 1.6 billion of the world’s poorest people9, 10. Many of the world’s poor depend on services and goods provided by forests for their livelihoods but these services and resources are depleting rapidly11 .

Virgin’s forest footprint

As well as having direct impacts, companies can indirectly contribute to deforestation through their supply chains resulting in a ‘Forest Footprint’. Having worked hard to measure the Virgin Group’s carbon footprint (8 million tCO2), we also recognise the importance of understanding our forest footprint and so despite its relatively small size are using the principle behind the Forest Disclosure Project12 to consider our companies’ direct (e.g. how much paper and wood they buy) and indirect impacts (e.g. how much forest is destroyed because of the food or fuel that the company consumes). From this, we can then make improvements and ensure that their forest footprints are kept to a minimum.

Forests and Virgin

Richard is very passionate about forests and has served on the Prince of Wales’ board for the Prince’s Rainforest Project13. Virgin Trains and Virgin Atlantic have also supported the Prince’s Rainforest Project by promoting awareness to their customers of the urgent need to take action against tropical deforestation

Virgin Media and Virgin Unite have donated funds to a project in the Congo through The Forest Trust14 . The project involves working with local communities which rely on the forest as their principal source of shelter, nutrition and medicine, to help them gain greater access to the resources they need for income generation and food security

Virgin Money UK and Virgin Unite have donated £50,000 to the Green Light Trust Community15, a charity that educates children about the importance of forests and builds wildlife habitats across the UK to increase biodiversity and help motivate children and young people to become responsible custodians of the environment. Virgin Money UK helped by providing financial support and by working to build a five year plan to enable greater financial security

Virgin Blue and Virgin Unite provide financial support to NAILSMA’s16 savannah fire management projects and indigenous youth economic development projects for remote communities across Northern Australia

Virgin Radio France has been supporting a reforestation project in the Peruvian Amazon and working to raise awareness amongst its listeners of issues connected with deforestation and climate change (read more about this in the ‘Relax and Have Fun’ chapter on page 67)

Virgin Balloons Flights donates £1 to The Forest Trust14 for each tonne of carbon it emits

Virgin airlines have lobbied the UNFCCC17 for the inclusion of Avoided Deforestation and Reducing Emissions from Deforestation and Forest Degradation in Developing Countries in the Clean Development Mechanism

The Carbon War Room is planning a ‘battle’ on forests (read more about the Carbon War Room on page 76)

Local communities gain

little benefit from

logging. In West Papua

logging generates only

$10 US per log for

the local people, while

traders sell the logs

for thousands of

dollars. Source: Maung, Z. (2008) Avo

ided deforestation credits hea d

for the voluntary carbon mark ets. Climate Change Corp. 4 J

une

2008.

Rainforests contain at least

twothirds of the world’s

plant species and store

over half of the Earth’s rainwater.

Source: Rainforest Concern (2009).

Why are rainforests important?

(www.rainforestconcern.org/rainforest_facts/why_the_impo rtance/)

The Prince’s Rainforest Project has raised awareness of the urgent need to take action against tropical deforestation.

Richard and the frog from the Prince’s Rainforest Project.

The Forest Trust (E. Parker)

Thank you to everyone who contributed to the report.

This was the Virgin Group’s first corporate responsibility and sustainable development report and it has taken a lot of effort from all of our partners. We are very grateful to everyone for their help, input, feedback, and above all, patience.

Flying High

Other

We’re All Going on a Summer Holiday

Getting from A to B

Staying in Touch

Watching the Pennies

My Body is a Temple

Out of this World

Just Relax and Have Some Fun

Glossary: AGD Group Aviation Global Deal

AIDS Acquired immune deficiency syndrom

APU Auxiliary Power Unit

BSoE The Branson School of Entrepreneurship

CD Compact Disc

CO2 Carbon dioxide

CO2e Carbon dioxide equivalents

CR/SD Corporate Responsibility and Sustainable Development

ETS Emissions Trading Scheme

EU European Union

EU-ETS European Union - Emissions Trading Scheme

FSC Forest Stewardship Council

GDP Gross Domestic Product

GHG Greenhouse gas

Gigatonnes 1 x 109 tonnes

HIV Human immunodeficiency virus

ICT Information and Communication Technologies

ISP Internet Service Provider

ITPOES The UK Industry Taskforce on Peak Oil and Energy Security

kWht Kilowatt hour thermal

MP3 Music Downloads

NASA National Aeronautics and Space Administration

NEET Not in Education Employment or Training

NHS National Health Service

NOx Nitrous Oxide

R&D Research and Development

SAFUG Sustainable Aviation Fuel Users Group

TB Tuberculosis

TWh Terawatt hour (1 x 1012 Wh)

UK United Kingdom

UNFCC United Nations Framework Convention on Climate Change

US United States

WWF The World Wide Fund for Nature

This report was produced by the Corporate Responsibility and Sustainable Development team at

Virgin Management and published in March 2010.

If you would like to comment on the report you can either leave your comments

on: Virgin.com (www.virgin.com/sustainabilityreport)

write to: The Corporate Responsibility and Sustainable Development team,

The School House, 50 Brook Green, London W6 7RR

or email: [email protected]

Design and production www.conkerdesign.co.uk

This report was printed on 100% recycled paper.