An innovation showcase for sustainable development October 2014 1 Air France launches Lab’line For the Future Air France is recognised as a responsible business following its actions and results in terms of sustainable development. Alongside its partner KLM, the Company is ranked as the leader of the Airlines category and of the larger «Transport» sector by the DJSI*. This recognition also provides an incentive to continue with and to develop sustainable development initiatives as an essential part of its strategy. With Lab’line For the Future, Air France is going further. The Company is innovating and uniting its industrial partners and clients who share the same values to work together to design and build the more environmentally friendly travel of tomorrow. As part of these values, Air France is launching an innovation showcase dedicated to sustainable development which will run for almost a year on the Toulouse – Paris-Orly route. Regular events will be held on the route throughout the year to highlight the Company’s work towards sustainable development. Until September 2015, Air France – supported by its partners – will introduce several projects aimed at tackling the challenges of sustainable development. This innovative and large-scale operation confirms Air France’s ambition: to imagine the journeys of tomorrow – more responsible and more sustainable. Through Lab’line For the Future, Air France wants to: • Build more environmentally friendly journeys, for and with its clients and partners, thanks to the technological innovations the Company is putting in place to reduce its carbon footprint; • Develop innovative products and services, as well as services provided by partners who share the same values and who are also committed to sustainable development; and • Involve public bodies in the essential task of developing an «aviation biofuels» industry in France. *Dow Jones Sustainability index, the main international index which evaluates companies on their performance in terms of sustainable development. 2 First event: biofuels On 21 October 2014, Air France is hosting its first event dedicated to biofuels. Until September 2015, while Lab’line For the Future is taking place, one flight per week will be powered by biofuels on this route. The biofuel used on this flight The biofuel used on this flight is Farnesane, produced by Total-Amyris. Its use was certified on 16 June 2014 by the ASTM*, an internationally-recognised standards organisation. It comprises a maximum 10% mix of biofuel with kerosene from fossil fuels. This biofuel comes from fermenting cane sugars which were analysed in terms of life cycle and sustainability by the RSB**, the most demanding body in the sector, and certified on 6 May 2014. The life cycle and sustainability analysis of this fuel concluded that its use could reduce greenhouse gas emissions by up to 80% compared to kerosene from fossil fuels. As it meets sustainability criteria, this also means that the production of Farnesane does not compete with the food industry. The long-term aim is to use non-food parts of plants to produce this biofuel. Alongside this operation, data collected on these flights will allow the impact of the biofuel on CO2 emissions and the Company’s fuel consumption to be measured. * American Society for Testing and Materials ** The RSB standard is built around twelve principles and criteria: 1. Legality, 2. Planning, monitoring and continuous improvement, 3. Greenhouse gas emissions, 4. Human and labour rights, 5. Rural and social development, 6. Local food safety, 7. Conservation, 8. Soil, 9. Water, 10. Air, 11. Use of technology, inputs and management of waste, 12. Land rights. 3 Farnesane – making the fuel industry greener 3 questions with Philippe Marchand, Director of Biotechnology at Total New Energies. What is Farnesane? The name Farnesane comes from the chemist Farnèse, and it is a renewable alternative to fossil fuels. It is produced by fermenting sugars from plant matter, and this biofuel, developed by Total and its partner Amyris, can be included as up to 10% of the aviation fuel used. It meets the ASTM’s strict Jet A/A1 fuel standards criteria. Using this biofuel contributes to a significant reduction in greenhouse gas emissions and therefore constitutes an ecologically viable approach to be used in tandem with fossil fuels. This new fuel was certified by the ASTM on 16 June 2014. What does certification mean? Certification means that we can make plans to commercialise and use our Total/ Amyris Biojet in complete compatibility with the engines and systems used in civil aviation. The refinery in Brazil owned by our partner Amyris already produces it and will increase in capacity. Who uses this fuel? Currently, Air France, and also KLM, which has committed to account for 1% of global biofuel consumption from 2015, are pioneers in our position as a responsible leader. Airlines are always in the spotlight and are therefore important vehicles for promoting new practices. This story is only just beginning, but things will soon speed up: developing demand and improving performance will lead to lower costs. The next ten years are going to provide all kinds of developments: we will eventually be able to use other plant matter – cellulosic sugars from non-food parts of plants – to produce Farnesane. 4 A weekly flight powered by biofuels Cane sugars Farnesane BfIuO els kerosene from fossil fuels A weekly flight powered by biofuels ORY TLS Reduced CO2 emissions 5 Driving forwards research into biofuels Although the air transport industry only represents 2-3% of global emissions, it is nevertheless making steady progress due to continued growth** in air transport. This is why the air sector’s CO2 reduction aims remain ambitious: - by 2020, improve energy efficiency by 1.5% annually (excluding economic measures) - from 2020, stabilise CO2 emissions - by 2050, reduce CO2 emissions by 50% compared to 2005 levels. Air France is fully aware that the transition from fossil energy to renewable energy is a priority to ensure that air transport has a future. Unlike other transport methods, an alternative to liquid fuels will not be available to the industry until at least 2050. At the first Lab’line For the Future operation, the Company wants to highlight the need for more research into developing sustainable biofuels in order to create a French «aviation biofuels» industry. Using biofuels could lead to savings of up to 80% in terms of CO2 emissions compared to fossil fuels. To reduce its own impact on the environment, Air France is using all tools available to it to fulfil its responsibilities, including continuing to modernise its fleet, using new piloting procedures which emit less CO2 and reducing on-board weight. However, to reach these objectives, Air France and the air transport industry as a whole cannot ignore biofuels as a way to drastically reduce CO2 emissions. On a global scale, sustainable biofuel production for air transport remains marginal and the cost can be up to ten times higher than fossil fuels. However, Air France is already involved in biofuel research and supports their development by participating, alongside the CNRS*, in the European IAGOS climate research project. The Company is currently interested in developing biofuels which conform to internationally recognised sustainability criteria: non-competition with the food sector, preservation of biodiversity and forests, etc. *France’s National Centre for Scientific Research **Increase in air traffic of approximately 5% annually predicted for the next 30 years (2013 data from French aeronautical and space industries) 6 Air France-KLM, a sustainable development leader In September 2014, the Dow Jones Sustainability Index (DJSI), the main international index evaluating companies on their performance in terms of sustainable development, ranked Air France-KLM leader of the «airline» category for the tenth consecutive year. In addition, Air France was ranked leader of the broader «transport» sector – which covers air, rail, sea and road transport and airport operations – for the sixth year running. Air France-KLM is thus one of the world’s 24 most responsible companies, each operating in its own sector. In order to integrate sustainable development into its activities and operations, Air France-KLM is working on four main challenges: reducing its environmental footprint, integrating sustainable development into its products and services, promoting a responsible human resources policy and contributing to the development of the areas in which the Group operates. *The DJSI includes the most efficient companies in terms of sustainable development, selected by RobecoSAM, an international asset management firm which assesses companies’ sustainability performance. A member of the DJSI since 2005, the Group is also listed on the non-financial NYSE Euronext Vigeo, Ethibel and FTSE4Good indexes. 7 Key partners Air France is bringing together partners with similar values around the innovative Lab’line For the Future project. - Technical and industrial partners: Safran-Snecma and Total-Amyris - Commercial partners: Aéroport de Toulouse Blagnac, Airbus, BETC, Coca Cola Entreprise, EDF, Hertz, Orange, Région Midi Pyrénées, Thalès, Véolia, ZodiacAerospace. The French civil aviation authority (DGAC – Supporting aeronautical innovation) is also supporting this operation in order to show that it is in France’s interest to create an aviation biofuel industry. 8 DGAC Advances made in terms of technology and operational procedures have reduced aircraft consumption by 80% in 50 years. In France, stakeholders in the aviation industry are grouped under the Council for Civil Aeronautics Research (Conseil pour la recherche aéronautique civile, CORAC) to ensure consistency of aviation research and innovation, and follow up on progress that has already been made. Unlike other industries that have a choice of energy sources (electricity, wind, solar, etc.), at present the aviation industry can only use a liquid fuel with a very high energy content to meet some extremely strict usage constraints. The DGAC attaches particular importance to technological initiatives that combine air travel growth with minimal environmental impact, as part of the general green growth trend. Every year, the DGAC devotes €50-100 million to supporting research and innovation. France, the first European country with a network for future aviation fuels France is one of the first European countries to have established a network of private and governmental bodies working on aviation fuels for the future, called the Ini-FCA. This initiative is a special forum for strategic exchange, reflection and planning for researching alternative jet fuels. In this dynamic, the DGAC also supports research projects in order to identify, in line with legal targets on energy transition for green growth, the most effective solutions for the aviation industry, or to ensure compatibility between new and current fuels as future aviation materials. The DGAC joins Air France’s Lab’line For the Future project This project will provide operational feedback with a view to wider deployment of aviation biofuels. This project will assess the appeal of biofuels for Air France passengers. Making progress towards using biofuels in the aviation industry entails answering a number of questions, which the Air France project will help to resolve, especially with regards to the structure of an economic model and operational feasibility in the face of the strictest safety requirements. 9 Safran The aircraft that fly weekly from Toulouse to Orly, operated by Air France and fueled by a biofuel, is powered by CFM56 engines designed, developed and produced by CFM International, a 50/50 joint company of Snecma (Safran) and GE. Through this flight jointly conducted with its partners Air France and Total, Snecma (Safran), is demonstrating its expertise in developing feasible sustainable fuels, and reducing CO2 emissions. The first step for Snecma is to offer engines that use less fuel, which means lower CO2 emissions. For example, the new LEAP* engine, successor to the CFM56*, will reduce specific fuel consumption by 15%. Snecma is also a partner in the European research program Clean Sky, through which it is conducting research on the development of an «open rotor» type engine, which will reduce fuel burn per seat by 30 to 40% (depending on the aircraft’s design and operations), versus the conventional turbofans now in service. Over and above the ongoing improvements driven by technological innovation, the use of sustainable biofuels will play a critical role in meeting the ambitious objectives set by the air transport industry. Snecma, and its parent group Safran in general, is taking an active role in research, as well as the ground and flight testing of biofuels that could contribute to the sustainable development of air transport, based on a favorable carbon budget, without impacting agrifoods resources. This research is carried out in conjunction with a wide range of partners, including aircraft manufacturers, airlines, producers of feedstock and biofuels, laboratories and other research institutions, and public authorities. In particular, Snecma is participating in a four-year research program that kicked off in 2012, called CAER (Alternative Fuels for the Aviation Industry), financed by the French civil aviation authority DGAC, which aims to evaluate alternative fuels and their compatibility with engines and aircraft. Snecma is also a member of ASTM International, an organization that draws up technical standards on materials, products, systems and services. In 2009, ASTM International officially approved the commercial use of alternative fuels based on the Fischer-Tropsch process for aviation applications, followed in 2011 by biofuels derived from vegetable oils, such as HEFA (up to a limit of 50% of total fuel). Snecma played a major role in drawing up the specifications and in the approval process. As an engine manufacturer, Snecma is involved early in the process of defining standards for these new biofuels, to make sure that they offer properties in line with requirements, and equivalent to those of conventional jet fuel. Once these biofuels are certified, Snecma will support airlines in deploying these biofuels in their operations. CFM56 facts & figures More than 26,000 CFM56 engines have been delivered to date to over 530 customers worldwide. The CFM56 engine fleet has logged more than 670 million flight-hours in the last 30 years, clearly reflecting its status as the most reliable engine flying today. A CFM56-powered airplane takes off somewhere in the world every 2 seconds. * The CFM56 and LEAP engines are produced by CFM International, a 50/50 joint company between Snecma (Safran) and GE of the United States. 10 total Without jet fuel, no air transport • 2.5 billion passengers a year in 2010; 6.6 billion in 2050. • 30 million commercial flights a year (one departure/second). • Nearly one billion liters of jet fuel consumed every day (9,000 liters/second). • Air transport accounts for: . 8% of global consumption of petroleum products, . 2% of CO2 emissions. (Source IPCC report, 1999) In this context, the air transport sector has made a commitment to stabilizing its emissions starting in 2020 in order to cut its greenhouse gas emissions by half between 2005 and 2050. Improving the energy efficiency of aircraft and ground and flight operations is not enough to reach this goal. Companies are developing biofuels that can be incorporated into jet fuel, and which have the same technical characteristics as fossil fuels. Total: on the cutting edge of innovation in aviation Total sold 11 million metric tons of aviation fuel in 2013 — 33 million liters a day — making it the leader in Europe and Africa, and one of the world’s biggest suppliers. This position and the desire to reduce greenhouse gas naturally lead the Group to play a major role in the development of renewable and sustainable alternative fuels. Since June 2010, Total has been Amyris’s lead industrial shareholder, with an approximately 18% equity share at year-end 2013.. Total and Amyris teams are jointly conducting research programs aiming to develop and market new molecules to produce biofuels and feedstock for green chemicals. Active across the biotech value chain, Amyris has both research laboratories and a production plant in Brazil. Created in 2003, Amyris has developed an innovative technology to convert sugar to building block molecules for fuels and chemicals. Farnesene is Amyris’s flagship molecule. Farnesene molecules can be hydrogenated into farnesane, which can be directly blended into aviation fuels or diesel and does not require technical modifications to engines. Farnesane offers better cold resistance, improved thermal stability and higher energy content than jet fuels from fossil sources. Initial studies show that this renewable jet fuel can reduce GHG emissions by as much as 80%. Farnesane is a renewable, sustainable alternative to fossil fuels. Total and Amyris have specifically developed a breakthrough jet fuel blend with up to 10% farnesane which meets the stringent requirements set for standard Jet A/A-1 fuel by ASTM, the American Society for Testing and Materials. Certification obtained in June 2014 means that it will be possible to commercialize and use this biofuel in commercial aviation. 11 Total: an industrial player committed to biomass Together with solar power, biomass is a strategic growth area for Total in new energies. It is the only renewable alternative to fossil resources for supplying high energy-density liquid fuels used in transport (biodiesel, bioethanol and biokerosene). Large-scale biomass conversion is an industrial and technological challenge that must reconcile: • technical and environmental performance; and • societal acceptability and economic viability. 12 Toulouse Blagnac Airport Airports are where air meets land. They are also the first and last thing passengers see on their journeys. Consequently, airports have a major strategic role to play in land planning (opening up areas, establishing effective transport and related activities, tourism, and more) and supporting economic development in the region. They create wealth and generate jobs. They are also ambassadors for the region’s image and have a part to play in the air passenger experience. Within their region, airports also regularly face questions from civil society on the negative impacts they have in terms of the environment. Planned air transport developments cannot take place without including social acceptability, which requires close relationships with local stakeholders but also consideration of global environmental challenges such as the fight against greenhouse gases. Each player in the air transport chain has to play its part and aim to be an example. Today, the idea of sustainable development is becoming a standard which strikes the balance required between respect for the environment, social progress and economic performance. This process, a backbone for business, leads to guaranteed business sustainability through structured management. The three pillars of sustainable development should not be thought of as independent but as a common foundation which helps with decision-making. They allow businesses to find new synergies and to create further added value while respecting the expectations of the parties involved. This is why Toulouse-Blagnac airport is continuing with its commitment to sustainable development by including corporate social responsibility as one of the 3 axes on its strategic plan. Our 10+ years of triple certification (ISO 14001, ISO 9001, OHSAS 18001, Carbon Accreditation...), transparency in airport activity data, ambitious human resources policy (Gender Equality Prize, company bargaining agreement, company day nursery, etc.), and our financial commitment to our partners with our recent signing of a new economic regulation agreement, are testament to our commitment. That is why Toulouse Blagnac Airport wanted to be a partner of the Lab’line operation in order to help show that all stakeholders in air transport are working to make progress to guarantee sustainable development in our sector. 13 Airbus Airbus Group incorporates social and environmental value into its core strategy and operations. A commitment that not only improves management of business risks and opportunities, but also enhances long-term social and environmental sustainability. Serving our customers and delivering profitable growth Corporate Responsibility & Sustainability (CR&S) at Airbus Group is about the long-term creation of value for the benefit of our shareholders and other stakeholders. This means Airbus Group is fully focused on serving its customers and delivering profitable growth, which ultimately benefits all stakeholders. Each Group programme, from new aircraft to satellites, helicopters and security equipment, brings together strengths built over many years. In order to make its programmes successful, Airbus Group needs the right technologies in place to sustain innovation, the appropriate competencies for multi-skilled teams and a robust, well-resourced supply chain. As a world leader in aerospace and defence, we have a clear vision about our approach to corporate responsibility and sustainability, which is based on 5 priorities: - Strong governance - Innovative products and processes - Developing and engaging our people - Building supplier partnerships - Corporate citizenship As part of its commitment to environmental sustainability, Airbus Group is involved in the research and development of sustainable fuels for aviation. Airbus aims to be a catalyst in the search for affordable sustainable fuels, in sufficient commercial quantities, contributing to the aviation industry goals for minimising aviation CO2 emissions. This is why Airbus is proud to be a partner in Air France’s “Lab’line For the Future”. 14 BETC BETC understands how advertising can act as a catalyst of virtuous behaviour in society. The advertising industry has the potential to be a major force in rolling out sustainable development among the general public, BETC is committed to making this happen. This is why BETC strives to implement sustainable development in both the communication strategies and the messages it develops for its customers, as well as in audiovisual production with its partners, and of course in its own internal functions. BETC became an advanced member of the Global Compact of the United Nations in 2014, and was awarded the Gold Standard for its sustainable development implementation by EcoVadis. In addition, BETC has held the equality label since 2005. The agency which is the leader in its market, is also committed to promoting its commitments within the industry, by taking part in initiatives, and by getting involved in worthy causes and collective action. As part of this commitment, BETC is pleased to support Air France in its Responsible communication by being a partner in the «Lab’line For the Future» project. For more information BETC was founded in 1994 by Rémi Babinet and Mercedes Erra within the Havas Group. The agency is led by Stéphane Xiberras and Bertille Toledano. BETC is one of the leading agencies in France and creates global campaigns for famous brands such as Air France, Evian, Lacoste, Petit Bateau, Peugeot, Disneyland Paris and Aigle. 15 coca-cola To reduce our carbon emissions by 1/3 by 2020 compared to 2007 To achieve this target, the company has conducted an environmental audit into its production, distribution and marketing activities. We have identified four priority areas for improvement: the implementation of a circular economy for our packaging; reducing energy consumption; optimising transport; and innovating refrigeration equipment at points of sale. Coca-Cola Enterprise has therefore integrated its entire sustainable development strategy into its production chain and into the heart of its growth model. We have built a circular economy system for our packaging, which is incorporated into our growth model: • Eco-design: over the past 10 years we have reduced the weight of our packaging by 10% to 30%. • Infineo: in 2013 we have invested €8.7 million with the European recycling specialist APPE in a PET recycling plant in Burgundy and in the 1st educational centre on circular economy for packaging. • The recycling loop: our bottles contain 32% recycled PET, 100% coming from Infineo. We have launched a project to invent the factory of the future, with efficient and clean production sites: • Modernising industrial equipment: we have invested a total of €173 million on the 5 French plants between 2009 and 2013. • Energy saving: we have reduced energy expenditure by 25% across all our industrial sites in France, thanks to improved production systems (heating, cleaning, etc.). Our road transport has been optimised and complemented by other methods of transport: • Switching to railways: since 2001, we have transferred over 35,000 lorries to railways, which currently accounts for 7% of our annual transportation. • Smart road transport: we have reduced empty journeys by 80% by introducing backhauling, a logistics system that aims to maximise full journeys We have improved refrigeration equipment at points of sale to minimise their impact on the environment: • Optimised refrigeration: we have reduced carbon emissions by 50% by fitting single doors on open equipment. • Innovation: we have replaced 16,000 light bulbs with LEDs, improving energy efficiency by 80%. 16 Why is Coca-Cola Enterprise a partner of Lab’line For the Future? It seemed a natural choice for us to work with Air France, our iconic partner, on the Lab’line For the Future project. As a market leader in the soft drinks sector and key player in the French food industry, Coca-Cola Enterprise has a duty to provide momentum for the industry and train its suppliers and customers in sustainable development and the infinite cycle of circular economy. The inaugural Paris-Toulouse flight was a major first in France, and we intend to maintain this momentum with our expertise. With one of our plants located near Toulouse, in Castanet-Tolosan, we are proud to be contributing to the sustainable industrial excellence of the region. Both of our companies are working towards the same goal: creating innovation to invent tomorrow. This is a long-term ambition that marks the beginning of many years of collaboration between Coca-Cola Enterprise and Air France. About Coca-Cola Entreprise Coca-Cola Enterprise is responsible for producing, marketing and distributing drinks for the Coca-Cola Company. With its 2,600 employees, 5 factories and 400,000 points of sale for its drinks across France, Coca-Cola Enterprise strives to contribute towards the economic, responsible and sustainable growth of the regions where it is based. 17 edf EDF has joined the “Lab’line For the Future” operation led by Air France to contribute to the launching and operation of a regular air transport route based on biofuel. For EDF as a responsible industrial partner, it is an occasion to give an impetus to progress. As the 3rd biggest corporate user of the Toulouse-Paris Orly route, EDF will thereby be favouring transport with a reduced CO2 footprint for its employees who travel on this link between the Paris region, where the company’s headquarters are, and the Midi-Pyrénées region where 5,700 EDF Group employees work and live. The project forms part of an ongoing collaboration between two major French groups, EDF and Air France, which are both committed to energy management as a driver for competitiveness. The project is a natural addition to various joint actions to monitor and manage Air France’s energy consumption. Another example is the High-Quality energy production unit designed, produced and operated by EDF for Air France’s datacentre in Antibes. As a major stakeholder in efficient, low-carbon energy solutions in France, EDF aims to act together with its customers, partners and regional authorities to reduce greenhouse gases. EDF promotes a more virtuous use of energy to its 28.5 million customers. This includes reducing their consumption, using energy more efficiently, integrating decentralised renewable energies, and choosing the most appropriate energy for their needs. EDF develops global solutions that include projects in the scope of energy performance contracting. The group also furthers the growth of a professional building industry with the establishment of dedicated subsidiaries, a partner network and vocational training programmes. Finally, it forms partnerships with regional authorities and humanitarian associations to bring energy to the most disadvantaged. About EDF The EDF Group, a leader in the European energy market, is a vertically integrated player operating in all business lines in the energy industry, from generation to transmission, distribution and the buying and selling of energy. As Europe’s largest electricity producer, the Group’s power generating capacity in France consists mainly of nuclear and hydropower plants generating electricity which is 95% CO2 emission-free. EDF manages 1,246,000 km of overhead and underground medium and lower voltage power lines and approximately 100,000 km of high and extra-high voltage lines. The Group contributes to the supply of energy and services to nearly 28.5 million customers in France. In 2013, the Group generated consolidated sales of € 75.6 billion, of which 46.8% were outside France. EDF is listed on the Paris Stock Exchange and is a member of the CAC 40 index. 18 hertz Since its start in 1918, Hertz has been setting the trend on innovation within the industry. Sustainability is one of the key elements of our strategy and it is also part of this tradition of innovation. Our sustainability strategy Living Journey is another way we found to create value for our company, our customers and the communities we serve. Hertz’s sustainability strategy Living Journey focuses on sustainable transport initiatives as well as on reducing the environmental impacts of the company’s buildings and operations. A number of strategic initiatives have materialized so far, including solar energy production, energy efficiency upgrades, recycling at rental locations and use of waterless car washing. We made significant progress with our fleet globally, offering our customers environmentally friendly cars through our ‘Green Collection’ ( ‘Green Traveller Collection’ in the US) which includes highly fuel-efficient, electric and hybrid vehicles. We also strive to reduce the environmental impact of our activities through more efficient resource management. Thus, in 2012 we recycled globally 6.5 million litres of waste (oil, solvents, etc.) and, during 2013, around 100,000 tyres in Europe. In November 2013 we introduced waterless washing for cars, which has been gradually extended to the entire organisation. In Italy, for instance, 23% of the car washing is waterless and in 2014 we will save around 100,000 washes in the country. Among other achievements, we were the first car rental company to install solar panels at our locations and our new head office building in the US, currently under construction, complies with the most stringent standards of sustainable development. Elsewhere, across our International markets we have implemented 53 energy saving projects that resulted in a total saving of 1,332,006 kWh. Hertz has been recognized for its sustainability achievements, receiving the “Best Green Options” in Zagat Car Rental Survey, the Global Business Travel Association’s “Sustainable Innovation Award”, Swedish Association of Green Motorists’ “Most Environmentally Friendly Car Rental Company”, and Fleet News UK’s “Environmental Award.” Additionally we have joined sustainable mobility initiatives such as ZEM2ALL in Spain, aimed at delivering sustainable real-world solutions by providing electric vehicle (EV) access to residents and tourists. In October 2014 Hertz Europe Service Centre (HESC) was awarded an “All Ireland Safety Award” with distinction in recognition of the quality of its Health and Safety system and how it performs against other organisations in its industry. 19 Orange The world is changing and information and communication technologies are a driving force in its transformation. This makes Orange a key player in terms of supporting these mutations, but it also increases its responsibility. For Orange, acting as a socially responsible corporation is not only a matter of taking part in this transformation, but of turning it into a lever for shared progress and development. Orange’s ambition is to become the leading operator of the Internet era. This implies accelerating and instilling an open vision of innovation by fostering joint action with digital players. The partnership with Air France illustrates this joint approach to innovation, in this instance applied to environmentally responsible travelling. The “Lab’line For the Future” project also provides a new chance to demonstrate the relevance of technologies that further sustainable mobility. The project fits in naturally with Orange’s forward-looking environmental policy that aims to reduce its greenhouse-gas emissions by 20% and its energy consumption by 15% before 2020 (starting from 2006). Considering that 10% of its energy consumption comes from employee travel, Orange is looking for new sustainable mobility options in which digital solutions play a determining role. For Brigitte Dumont, head of Corporate Social Responsibility at Orange, the project illustrates Orange’s commitment to apply digital technologies to the benefit of society: “Paris-Toulouse is one of the flights most frequently taken by our employees – another reason for us to get involved in this joint project to look for innovative solutions that can benefit the development of sustainable mobility, which is one of the main challenges of green energy transition.” About Orange Orange is one of the world’s largest telecommunication operators, with a turnover of € 41 billion in 2013 and 161,000 employees on 30 June 2014, of which 101,000 are in France. The Group is present in 30 countries, and served more than 236 million customers on 30 June 2014, including 179 million mobile customers and 16 million fixed broadband customers worldwide. Orange is also one of the world leaders in telecommunication services for multinational companies under the Orange Business Services brand. 20 Midi-Pyrénées Region The Midi-Pyrénées Region is one of Air France’s partners in “Lab’line”, a particularly innovative project that will bring great progress in aircraft fuel consumption. The Region has actively supported the aeronautics industry in its innovations for many years. With 72,000 jobs directly related to the industry on its territory, the Region naturally sustains companies in this sector. The Region has undertaken an aeronautics plan with a budget of € 130 M. Each year, together with the Government, it launches AEROSAT, a call for collaborative projects to further technological initiatives in aeronautics and satellite building. Through its backup agreements, particularly those related to innovation, it also supports companies in the aeronautics sector. The Midi-Pyrénées Region is furthermore committed to the fight against greenhouse gases. It has launched a forward-looking Midi-Pyrénées Energies Plan through which it will directly invest € 300 M in favour of sustainable development over 10 years. This should generate projects of more than € 2 billion, which in turn will maintain or create at least 2,500 jobs per year. The Midi-Pyrénées Energies Plan is based on 4 strategies: - Saving energy - Producing renewable energies - Compensating greenhouse-gas emissions - Adapting to climate change 21 Thales Greener technologies for a cleaner sky As a leading player in the optimisation of onboard energy, flight paths and operational efficiency of aircraft, Thales is proud to contribute innovative green solutions to meet the economic and environmental challenges of the air transport market. Thales works in partnership with other European stakeholders in the aeronautics industry with the aim to develop disruptive green technologies that will help reduce the environmental footprint of aviation for next-generation aircraft. In the scope of the Clean Sky Joint Technology Initiative*, Thales is a driving force in a number of Integrated Technology Demonstrators (ITDs). More specifically, it acts as coordinator of Green Systems and Operations ITDs and the entire Clean Sky Technology Evaluator, a series of assessment tools that integrates ITD data and turns them into easily understandable and quantifiable advantages for the environment. The fact that Thales has been chosen to coordinate these two ITDs demonstrates its capacity to manage large international projects and the technological skills that they entail. Expertise that benefits the entire air transport chain Thales’s expertise embraces all aspects of air transport: embedded systems, ground installations, air traffic management, telecommunications, navigation… The Group is thus able to handle the optimisation of aircraft trajectories using a global approach that takes all flight phases into account: on the ground (runway, taxi) and in flight (take-off, cruise, approach and landing). Thales’s FMS NG, a new-generation flight management system, is the key to this optimisation and a generator of new operational benefits such as a 4D flight path (I4D), airborne separation assistance systems (ASAS), digital taxi navigation on the ground, and optimised Eco take-off. Clean Sky positions Thales at the forefront of green technologies, allowing the company to address its customers’ needs directly to help them keep pace with constantly changing environmental standards and reduce their fuel consumption. For Thales customers, CO2 footprint and noise taxes play an integral part in their strategies; that is why Clean Sky research will enable them to optimise their costs. The work done by Thales in the scope of Clean Sky JTI is also perfectly in line with the significant progress achieved in programmes like SESAR (Single European Sky ATM Research). Interoperable European air traffic control is becoming a reality. In addition, Thales is naturally involved in the work undertaken by industry associations on a national, European and worldwide scale, contributing its expertise to the defining of tomorrow’s air traffic standards and solutions: cleaner, more efficient and less noisy aircraft that are capable of flying safely in increasingly congested skies. 22 About Thales Thales is a global technology leader for the Aerospace, Transportation, Defence and Security markets. In 2013, the company generated revenues of € 14.2 billion with 65,000 employees in 56 countries. With its 25,000 engineers and researchers, Thales has a unique capacity to design, develop and deploy equipment, systems and services that meet the most complex security requirements. Thales has an exceptional international footprint, with operations around the world working with customers and local partners. About Avionics Whether in next-generation cockpits for i-generation pilots or smart air/ ground connectivity, Thales brings a new dimension to flight and operational efficiency. All our connected avionics solutions, whether they are destined for civil or military aircraft, are based on open and flexible architecture systems that generate efficiency in manufacturing and customisation processes, lower the cost of ownership throughout their lifecycle, and facilitate maintenance and product adaptability. *The Clean Sky initiative is the second largest research project in Europe. It will help to reach environmental goals set for 2020 by ACARE (Advisory Council for Aeronautics Research in Europe): 50% less CO2 emissions, 80% less NOx (nitrogen oxide) emissions, 50% reduction in externally perceived noise, and greener design, manufacturing and maintenance processes and waste lifecycle. 23 Veolia Our mission: Revitalising the world Veolia is the expert in managing waste, whether liquid or solid, ordinary or hazardous. Its expertise covers the entire waste lifecycle, from collection to reprocessing, and final recycling in the form of materials or energy. Contributing to Green Flights comes naturally to Veolia, which continues to innovate by transforming waste into material as part of a circular economy approach on the ground as well as in the air. 9 sustainable commitments Raw materials, ecosystems, people and regions are all resources that need protection. Our responsibility is considerable, but so is our power to act. Revitalising the world means creating value at all levels: financial, social, societal and environmental. For a more environmentally friendly, sustainably prosperous and kinder world. Our commitments to revitalise the planet 1. Sustainably managing natural resources by favouring a circular economy Natural resources are deteriorating and getting depleted. Radical change is needed in the way they are used and their pollution is dealt with. We act and innovate at all levels to limit the consumption and optimise the productivity of resources and deal with complex pollution. As a pioneer in circular economy, we implement new models with tailored recycling and treatment processes for each situation. 2. Contributing to the fight against climate change The consequences of climate change are already being felt in the most vulnerable regions where water supplies, agricultural production and populations are affected. By inventing and offering everyday solutions and services to not only reduce but avoid the emission of greenhouse gases, Veolia is actively engaged in the fight against climate change. 3. Protecting and restoring biodiversity Human activities severely alter natural environments, fauna and flora. Through our water treatment, waste collection and management processes, and the establishment of responsible biomass industries, Veolia is committed to the protection of natural environments and biodiversity. Our Foundation also encourages actions to educate or raise awareness when it comes to environmentally friendly behaviour. For instance, we support the scientific expedition “Tara Méditerranée” that assesses the impact of plastic waste on marine ecosystems. 24 Our commitments to revitalise regions 4. Building new relationship and value-creation models with our partners Our CSR performance is the result of a progress-oriented approach deployed worldwide with all our partners. We interact with all local stakeholders: institutions, citizens, users, industrial and economic players. We offer them solutions for dealing with regulatory, societal and environmental issues in order to improve our customers’ performance in all areas, for the benefit of their regions. 5. Contributing to the development and attractiveness of regions Despite globalisation, water, energy and waste remain local issues. Veolia plays a key role in developing regions, of which we have an in-depth knowledge. Our solutions contribute to the attractiveness and competitiveness of the communities and companies that operate there, thereby increasing the vitality of the regions. We are furthermore a direct driver of employment, and an indirect driver for services operations and the maintenance and development of infrastructures. Lastly, we favour green employment through solidarity and insertion, and support the local SME fabric. 6. Providing and maintaining services that are essential for human health and development Water, energy and waste services are indispensable to daily life. Veolia is committed to ensuring sustainable access to these services. We endeavour to find the most appropriate solutions for local challenges and offer quality services to all. Together with local authorities and associations, we undertake specific actions in favour of disadvantaged populations by devising new modes of access and payment adapted to those who are in difficulty or excluded from the system. Our commitments towards the people in our company 7. Guaranteeing a safe and healthy work environment The prevention of health and safety risks is an ongoing concern for Veolia. We make a point of ensuring the physical and psychological well-being of our employees. We fulfil this commitment by including all aspects of prevention, social dialogue, safety and health in our social agreements, and by deploying a system for health, safety and risk-prevention management throughout the group. On 1 July 2013, we signed the Seoul Declaration of the International Labour Organisation recognising health and safety at work as a basic human right. 8. Furthering the professional development and commitment of each employee Veolia’s reputation, excellence and performance are built on the skills and commitment of its employees. Skill and career development, and giving recognition to our employees and their performance while respecting their diversity, are determining factors in attracting, motivating and retaining talented people. We have made it one of our priorities. Our ambitious training policy – 20 training centres in 11 countries – and our HR development programmes are proof thereof. We also take care to ensure adherence to our values as expressed in the “Manager code of conduct” that serves as our operational framework. 25 9. Guaranteeing respect for diversity and fundamental human and social rights in the company With a staff of 200,000, the people who work in our company are our greatest asset. Social cohesion and stability are of the utmost importance to Veolia, particularly at a time of organisational change. This is why we are placing increased emphasis on the social dialogue with employee representative bodies as well as respect for diversity, the principle of equal chances and the fight against discrimination. Taking the local context and existing teams into account forms the core of our social model. 26 Zodiac Aerotechnics Zodiac Aerotechnics named INTERTECHNIQUE Company until 2013, is one of three global players in Aircraft Fuel Systems and as such we wanted to support the Air France Biofuel initiative. The aviation industry has experienced strong growth in recent decades and will undoubtedly continue to grow. Today more than 2 billion passengers a year travel by aircraft. The economic, societal and cultural exchange brought by this means of transport cannot be called into question. This progress has a cost. The carbon footprint created by this mode of transport represents about 2% of all human related activities emissions. Although this figure is modest, all the players in this sector are mobilized to reduce CO2 ptoduction in the sector. Zodiac Aerotechnics is engaged in several research projects that aim to reduce the carbon footprint of aviation on the environment: - CCFCA (Coordinating Committee for Future Alternative Fuels), the committee, headed by the French Civil Aviation Authority facilitates the coordination of research activities for the introduction of alternative fuels in aviation. - Clean Sky, which aims to reduce carbon emissions and nitrogen oxide responsible for the greenhouse effect. Under the Clean Sky project studies focus on better management of non-propulsive energy used by different systems. Several companies in the Zodiac Aerospace Group work on two areas: the distribution and management of electrical power and electrical Wing Ice protection. The challenge for the coming decades is to reduce the consumption of fuel for aircraft. The aircraft and engine manufacturers will help meet this goal, but this is not enough to sustainably reduce the CO2 footprint. The use of alternative fuels with a positive CO2 impact on the life cycle is one of the promising ways to replace fossil fuels. The introduction of alternative fuels on aircraft fuel systems is well supported by the ASTM 1655 standard to ensure that they are compatible with use in civil aviation - (fuel concept called «Drop In»). The introduction of these new fuels is accompanied by laboratory tests performed as part of the ASTM certification and testing operations like those performed by the Air France initiative. Among the features under surveillance for equipment like Zodiac Aerotechnics, two aspects are of importance to our fuel systems: fuel density and aromatic rates. Indeed Alternative Fuels have a density that significantly deviates from that of a fuel such as JET A-1. Knowing that the density occurs with other parameters in the calculation of the onboard energy and therefore the maximum range, this parameter is critical and the system providing the crew an indication of mass of fuel on board must be able to take into account these variations in density. Furthermore the impact of these new fuels on certain materials must be checked; this check is provided by the many tests performed during the ASTM certification. Nevertheless synthesis fuels do not contain aromatics whose presence is necessary for seal swelling. The lack of aromatics restricts the use of these new fuels to 50% blends with the JET A-1. Materials manufacturers, Zodiac Aerotechnics and other stakeholders in the aviation industry are working to push the limits and ensure that tomorrow, in a virtuous circle, the C02 emitted by aircraft is reabsorbed by plants used to make biofuel for aircraft. 27