OUR JOURNEY

Corporate Social Responsibility Report 2010

 HH Sheikh Khalifa bin Zayed Al Nahyan HH General Sheikh Mohamed bin Zayed Al Nahyan
President of the UAE and the Ruler of Abu Dhabi Crown Prince of Abu Dhabi and Deputy Supreme
Commander of the Armed Forces of the UAE
 Report parameters

This report is Etihad Airways’ first report on its

Corporate Social Responsibility performance.

In this document, we outline our policies with regard

to the four core areas of our social responsibility efforts
- the environment, the workplace, our community and
our charitable efforts – and we report on our activities
and results in each of these areas.

The formal reporting period is from 1 January 2010 to

31 December 2010; however, as this is our first report,
there are a number of elements of our airline’s eight-
year history that we also cover.

Etihad has no subsidiaries on which to report; nor do

we have joint ventures on which it would be relevant
to report.

How we have defined this report’s content

Our CSR team members conducted a series of

workshops and stakeholder engagement exercises
(described in the report) to help define the scope of the
report.

Throughout this process, we used the Global Reporting

Initiative (GRI) frameworks as a guide. We have
recognised a number of principles in doing so:

• Scope: The report aims to cover all relevant aspects

of our operations, in the air and on the ground. In
this first report, our main focus for the on-the-ground
section is the hub of our operations, in Abu Dhabi.
• Materiality: We believe the report’s scope covers the
major issues that are recognised as important by our
internal and external stakeholders.
• Data collection and publication: We have aimed

CONTENTS
for accuracy in collection of all relevant data,
and we aim to be as transparent as commercial
restrictions allow in publishing such data.
• Subsidiaries / joint ventures etc: This report covers From the Chief Executive Officer 4 | Etihad today 6 | Sustainability vision 8
the operations of Etihad Airways.
Corporate social responsibility at Etihad Airways in 2010 9 | Stakeholders 10 |Together 12
• Reporting cycle: Our intention is to report on an
Together Greener 14 | Growing Together 22 | Working Together 26 | Giving Together 30
annual basis.
Corporate governance 34 |Global Reporting Initiative 36
This report has not been externally assured.

For further information on Etihad’s CSR activities, or for

questions on this report, please contact: csr@etihad.ae

2 Etihad Airways CSR Report 2010

From the Chief Executive Officer

Welcome to the first Etihad Airways Corporate Social
Responsibility Report.
Etihad is a global ambassador for the Emirate of
Abu Dhabi, and one of its most visible brands in
the international arena. That places a heightened
responsibility on our business to engender and promote
the government’s well-established sustainability agenda,
which affords tremendous value to:
We are a major employer, directly creating opportunities
for employees and their families from more than 120
countries, and indirectly generating thousands of jobs
across the UAE and our network.
The airline gives generously to disaster relief efforts and
third-world education initiatives while our employees
also give generously of their own time and resources to
those less fortunate.

• The preservation of the Emirate’s cultural traditions and Finally, as a driver of tourism to Abu Dhabi we play a
natural environment; critical role in promoting Abu Dhabi’s rich culture and
• Support for those suffering the effects of disease, poverty heritage.
or natural disaster around the world;
• The wellbeing and future prospects of the Emirati people Our Emiratisation program is creating a new and
and society, and indigenous generation of aviation professionals. They
• The diversification of Abu Dhabi’s economy to be less receive the industry’s best training, are exposed to all
reliant on hydrocarbons and equipped to prosper in an facets of the airline business, are equipped to lead Etihad
increasingly energy-scarce world. Airways into its very bright future, and are well-placed to
pass on their skills and experiences to future generations
Looking back on just our seventh year of operation, we of UAE nationals.
have grown to this point rapidly while maintaining a strong
focus on our social and environmental impacts, which we The publication of this report is a formalisation of Etihad’s
see as inextricably linked with our financial sustainability. suite of sustainability programs under one banner. This first
report focuses on our efforts to date. We are committed
The safety and wellbeing of our customers and employees to continued an open reporting on an annual basis from
is, at all times, our greatest concern. We allocate now on.
enormous resources to maintaining the highest levels of
flying safety and we provide state-of-the-art health and I look forward to a continuing and open dialogue with
wellbeing facilities to our more than 8,000 staff members our stakeholders.
and their families.

We operate the newest, most environmentally efficient

aircraft in the skies, while our operations teams work
tirelessly to reduce the airline’s fuel burn and emissions
and to identify greener suppliers and partners.

We are founding members of the Masdar Institute’s James Hogan

Sustainable Bioenergy Research Consortium in Abu Dhabi,
providing substantial financial and in kind contributions in
support of research into the use of salt water tolerant plants
as the basis for alternative aviation fuels.

4 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 5
 Etihad development

Etihad today 2003-2004

AIRLINE START-UP
2006-2007
COMMERCIAL MANDATE
2008-2009
LARGE AIRCRAFT ORDER
2011
SELF-SUSTAINABLE BUSINESS

Etihad Airways, the national airline of the United Arab Etihad is safety-certified by the International Airline Transport Operational Mandate • Financial • Network/Fleet • Brand
Emirates, is based in its capital Abu Dhabi. Etihad was set Association’s (IATA) and the General Civil Aviation Authority • Reporting • Capital plan to • Product and service
up by government decree to be a key driver of the Emirate’s (GCAA) in the UAE. • Mitigate financial risk accommodate fleet order • Network reach/connectivity
• Start up work force • Linkage to Abu Dhabi Plan • Strong growth
economic diversification and growth program, outlined
• Governance • Major hiring ramp up • Revenue maximisation
in the Abu Dhabi 2030 Plan, and is wholly owned by the In July 2008, we announced a then record-breaking order
• Change in leadership • Cost minimisation
government of Abu Dhabi. for up to 205 new aircraft at the Farnborough International structure • Pay for performance
Airshow, including firm orders for 55 Airbus and 45 Boeing
From 2003 to 2006, Etihad Airways grew faster than any aircraft. The transaction remains one of the largest in
other airline in commercial aviation history, according to a commercial aviation history and will allow Etihad to meet
study by Booz & Co. As the three-year start up phase came long-term demand for the period from 2011 to 2020.
to an end, the Board appointed a new management team to
consolidate the airline’s growth and align its development Today, Etihad is a global business contributing in the region of
still more closely with the Emirate’s economic aspirations and AED 25.1 billion (USD 6.8 billion) to the economy, according Current fleet Aircraft on order
development strategy. to a study conducted by Oxford Economics in 2010. at December 2010 at December 2010*

We currently serve 72 key business and leisure destinations To deliver this performance, Etihad has a skilled management
6x B777-300ER 10x A380
in Africa, Asia, Australia, Europe, the Middle East and North team and a well defined organisational structure supported by
America, operating a young, safe and fuel-efficient fleet of 61 8,083 employees, representing 123 nationalities.
aircraft comprising five fleet types. 11x A340-500/600
Etihad operates under a rigorous corporate governance 10x B777
With 68 per cent of destinations served by at least daily structure. The Board comprises leading figures from Abu
frequencies, Etihad carried 7.3 million passengers in 2010 Dhabi’s business community. Our Board members are HH 19x A330-200/300
with an average seat load factor of 74 per cent. The network is Sheikh Hamed bin Zayed Al Nahyan (Chairman), HH Sheikh 25x A350
further enhanced through the airline’s 32 code-share partners. Khaled bin Zayed Al Nahyan (Vice Chairman), HE Ahmed Ali 15x A319/320
The airline’s average on-time performance is 87 per cent with Al Sayegh, HE Mohammed Mubarak Fadel Al Mazrouei, HE 35x B787
a track record of 99 per cent dispatch reliability. Hamad Abdullah Al Shamsi, HE Mubarak Hamad Al Muhairi
2x MD11F
and HE Khalifa Sultan Al Suwaidi.
In 2010 our revenues rose to USD 2.95 billion. In 2011, 3x A330
we expect continued double-digit revenue growth to reach Etihad Airways aims to fly 25 million passengers a year to at 2x A330-200F
break-even; a remarkable achievement in just eight years. least 100 destinations by 2020. 20x A320
2x A300-600F
* Firm deliveries, excluding 105 options and purchase rights

6 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 7
Sustainability vision
To be recognised as a sustainable
airline that operates to the highest
standards of safety, with integrity
and transparency.
Sustainability mission
Social responsibility and sustainability will be at the
core of our business.
We will ensure that sustainability is integrated and
integral to our day-to-day business operations and
practices, and is embedded in every layer of business
thinking, planning and execution. All material financial,
environmental and social impacts will be accounted for
and measured and managed across our operations in
line with international best practice.
8 Etihad Airways CSR Report 2010
Objectives Corporate social responsibility
• Drive individual and corporate awareness of the
necessity of living and working sustainably. at Etihad Airways in 2010
• Develop capability and capacity in Etihad to manage
the ongoing sustainability agenda.
• Meaningfully and regularly consult with and engage all
our stakeholders at the hub and across the network to:
–– ascertain their expectations and needs, and
Etihad acknowledges its position as an integral part
–– implement initiatives that show a genuine of society and its potential to have both positive
commitment to meet those expectations; and negative impacts on the communities in which
• Set and manage meaningful targets to improve it operates. Aligned with the greater ambitions
continuously our sustainability performance based and vision of the Emirate of Abu Dhabi, the CSR
on globally identified, material criteria, our shareholder and sustainability policy and supporting strategy
mandate and stakeholder expectations. is designed to ensure our compliance with all
applicable international and local regulations and
• Create tools and initiatives that allow our core standards; mitigate any potential risks, and enhance
stakeholders to participate: for example, staff
the airline’s reputation through the implementation
participation (training & reward); customer participation of industry best practice in the fields of sustainability
(voluntary carbon offset); and supplier participation and social responsibility.
(public/website recognition of adherence to Etihad
policies).
• Measure and report honestly and transparently our
performance in identified and material criteria.
• Promote our CSR activity through the full range of
traditional and new communications channels and in
effective reporting.
• Continue to align Etihad CSR and sustainability policy
and activity with the objectives in the Abu Dhabi
2030 Plan.
Etihad Airways CSR Report 2010 9
 Stakeholders
Active and ongoing stakeholder engagement with the
broadest range of stakeholders is essential to our CSR strategy
and program.
During 2010, our CSR team members conducted a series of
workshops and stakeholder engagement exercises to identify
our major stakeholders, to begin to understand their concerns
and interests, and to help define the scope of the report.
These exercises identified stakeholder audiences which we
believed had an interest in and/or a necessity to know about
Etihad’s CSR activities. They include:
• Employees
• Our shareholder
• Customers
• Our supply chain, in Abu Dhabi and internationally
• Our business partners
• The local community in Abu Dhabi
• National and international regulatory bodies
• The wider air travel industry
• Channels which reach these audiences, such as government, the local community and passengers.
the media and non-government organisations
We conducted our first focus groups in June 2010, covering
employees and our customers.
The first groups included employees representing all
disciplines and levels of staff in London, Mumbai and Abu
Dhabi – destinations selected for their importance on the
network and for their cultural diversity. We also held one
group session with frequent Etihad guests in Abu Dhabi.
The aim of these first discussions was to identify priority
areas related to the environment, the workplace, and the
community, and to further investigate the best ways of
communicating information about CSR activities.
Key issues raised included:
• A definition of the scope of the airline’s CSR efforts
and activities
• The importance of environmental performance in
our operations
• The desire for employee engagement at all levels
• The importance of our contribution to the national
and local communities in Abu Dhabi
Further activities to engage with external stakeholders,
including the Board of Directors, the Abu Dhabi
The outcomes of our ongoing stakeholder dialogue will
be used in shaping and driving our CSR and sustainability
agenda.

• Corporate social responsibility SOCIETY

• Environment
• First class customers
• Business class customers
PARTNERSHIPS • Economy class customers
• Alliance/codeshare partners
• Manufacturers • Transfer customers
• Travel trade • Family group
GUESTS • Worker traffic
• Abu Dhabi service providers
• Abu Dhabi hub operators • Ad hoc charters
• Financial institutions
SHAREHOLDERS • Board members
• His Highness the Crown
Prince of Abu Dhabi
ETIHAD

OUR
PEOPLE

Stakeholder relationships

10 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 11
 We believe that CSR is a collaborative process, and one that will only succeed in
partnership with our broad range of internal and external stakeholders. This is why we
have called our CSR and sustainability program Together.

Together provides a four-part policy and communications framework for engagement with
all our stakeholders - our staff, the local community and economy, the environment, and
the greater communities across our global network.

• Together Greener
• Growing Together
• Working Together
• Giving Together

In these four areas, it is our aim to work collaboratively in:

• Identifying and developing awareness of the issues and challenges;
• Focusing action to address these challenges; and
• Making a difference, through measurable improvement, year on year.

Focusing on priorities
As a leading brand and influential UAE business, and part of an industry with unique
environmental and sustainability challenges, it is imperative that our CSR strategy is able
to focus on areas of most concern. This needs to take account of opportunities as well as
risks, challenges and impacts. With this in mind, materiality is high on the agenda and our
strategic programs allow us to look at issues under four areas, and focus on these while
continually reviewing the appropriateness of our actions.

12 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 13
 Etihad’s environmental strategy and program is implemented in conjunction with industry partners, suppliers and customers.
While focused primarily on measuring, managing and minimising the environmental impact of our operations, it is linked to
broader sustainability goals and includes proactive initiatives to develop cleaner technologies such as biofuels; to encourage
environmental improvements across our supply chain; the implement a comprehensive waste management program; and
initiatives to engage our customers in positive environmental action.
Carbon management

Etihad Airways Environment Policy
As the national airline of the United Arab Emirates, wholly
owned by the government of Abu Dhabi, Etihad Airways is
an important driver of economic growth and diversification
in the country.
Aviation features more prominently in the environmental
debate than any other form of transport, despite the range
and depth of improvement that has been made by the
industry in the last 20 years. A key element of this success
has been the involvement of a broad range of partners in
seeking opportunities and implementing initiatives.

While operating under a strict commercial mandate from Whilst contributing just two per cent of the world’s man-
our shareholder, we recognise our responsibility to the made carbon emissions, significant attention is focused on
community and are committed to mitigating the impact of aviation’s contribution to the world’s carbon footprint. The
our operations on the environment. To achieve this Etihad basis for this is the increasing global demand for air travel
pledges to: with particularly heavy growth in developing economic
• Abide by all national and international environmental regions and in the growth of the low cost airline sector.
legislation that applies to our business; Demand for air travel has grown on average by five per
• Put in place the measurement systems and working cent per annum over the past 30 years and airlines now
procedures to allow us to track and modify our carry 2.2 billion passengers per year.
environmental performance;
• Innovate to reduce our dependency on traditional forms of Measuring emissions and materiality
energy and aviation fuel;
• Train our staff on the importance of environmental As a growing international airline, Etihad has many
protection in our business operations and on their activities and operations that affect and possibly impact
individual responsibilities; and negatively upon the environment, most notably through
• Communicate and report openly and transparently on our our aircraft operations but also from running our
environmental performance to all our stakeholders supporting head office, outstation offices, call centres,
including employees, customers, suppliers and partners. sales offices, and in the provision of ground transport
services for our staff and customers. We outsource many
We hold it as a fundamental principle that true success of our essential services, including aircraft maintenance,
requires the engagement and participation of many different in-flight catering, ground handling and additional
partners, within the markets in which we operate and across transportation services.
the air travel industry as a whole, and therefore aim to:
When it comes to measuring our carbon footprint
• Encourage collaborative action and play an active role in
industry debate on environmental issues; and associated with these activities, we need to ensure we do
this taking into account relevance, data completeness,
“Since 2006, we have
• Work with industry bodies such as the International
Civil Aviation Organization (ICAO), the International consistency, transparency and accuracy. These principles
are taken from the Greenhouse Gas (GHG) Protocol,
achieved a 19 per
Air Transport Association (IATA), the Arab Air Carriers
Organisation (AACO) and with local government and non-
government partners on identifying issues and developing
which provides comprehensive guidance on accounting
for and reporting on greenhouse gases. cent improvement in
common solutions.
The current scope of our carbon footprinting is based on CO2 emissions per
the direct operations of our aircraft, the electricity, chilled
The environment is a joint responsibility and every
member of our workforce has a duty of care to uphold this and potable water for our head offices, and our other main passenger kilometre.”
policy, limit their individual impact on the environment, and facility, Etihad Plaza, which comprises our staff housing
and facilities complex, including shops, banks, the James Hogan
actively work to mitigate the potentially harmful impacts of
medical centre and gymnasium. Chief Executive Officer
our business on the environment.

14 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 15
In addition, we track fuel use on our own fleet of 40
vehicles, which range from saloon cars to 20-seater buses
used primarily for the transportation of our crew to and
from the airport. The nature of our business means that the
operation of our aircraft represents by far the most material
(relevant) aspect of our business, accounting for over 99
per cent of our measured carbon footprint.
As recommended under the GHG protocol we are
focused on those areas that are under our control and
are measurable. Other areas will be subject to controls,
through policies, procedures and best practice guidelines,
including the offices across our network.
The Protocol covers three types of emissions, defined as
Scope 1, Scope 2 and Scope 3.
Scope 1 – Direct emissions from burning fossil fuel, such
as jet fuel, gasoline and diesel.
Scope 2 – Indirect emissions such as those associated with
electricity and chilled water production.
Scope 3 – Emissions from other sources, including
outsourced transportation services, aircraft maintenance,
catering services and services provided by third parties.
In the air
Aircraft emissions are by far the most material environmental
factor for Etihad, accounting for 99.7 per cent of the airline’s
currently quantified carbon footprint.
We track the total carbon dioxide (CO2) emissions from
our aircraft operations and, to more realistically monitor
efficiency improvements, we track emissions per passenger
kilometre and per tonne kilometre on all routes. Our
comprehensive fuel measuring systems allow us to track and
report on specific routes, per aircraft type, or by region.
While the total emissions are growing in line with our
fleet expansion, the emissions per Revenue Passenger
Kilometre (RPK) show a clear downward trend since the
Technology and operations
Initiatives such as weight reduction on aircraft,
implementing optimal fuel uplift, stringent engine washing
schedules, comprehensive maintenance programs and
making full use of the operational ability of our aircraft all
contribute to ensuring fuel efficient flights.
At Etihad:
• Using LIDO, our improved flight management
system, an estimated 18,000 tonnes of fuel are saved
annually, equating to a reduction of 56,000 tonnes of
carbon dioxide. These savings are achieved as a result of
shortened routes and improved flight fuel calculations.

Our carbon footprint commencement of operations. This is influenced by measures • The ‘Permagard’ coating on all our aircraft reduces
to improve operational efficiency, the introduction of more drag and has also led to wash water savings in the
efficient aircraft, technological improvements to our existing region of 10 million litres per year as a result of less
fleet, and improved load factors. frequent aircraft wash requirements.

The carbon emissions associated with material activities both in the air and on the ground are measured Nitrous Oxide NOx
These key areas of investment and technical and operational
according to multipliers available from suppliers and international data publications, such as the Greenhouse controls have together led to a significant improvement
Gas Protocol. in fleet efficiency and, since 2006, a 19 per cent NOx is a local air pollutant and one of the gases emitted by
improvement in CO2 emissions per passenger kilometre. aircraft engines. Etihad tracks the NOx emissions associated
We continue to develop the scope of our greenhouse gas measurement and reporting, based on the principles with the landing and take-off (LTO) cycles which cover
of the Protocol and ensuring that such activities are relevant within the scope of our operations. In particular Investment emissions below 3,000 feet. This can be done with a high
we are looking at potential ‘Scope 3’ activities, as defined by the Protocol, such as additional transportation degree of accuracy using industry data provided by ICAO
services and ground handing activities. While we outsource major activities such as aircraft catering and Investment plays an essential role in the sustainability for each engine type. Whilst our total NOx emissions have
of aviation. Operating new and efficient aircraft directly increased in line with airline growth, we have achieved
maintenance services, we will work with these organisations to ensure environmental best practice.
contributes to managing emissions and provides a long-term a significant reduction in emissions per LTO cycle. As
win-win situation from both financial and environmental we have introduced new aircraft into our fleet with latest
perspectives. Etihad has invested substantially in the technology engines, we have seen a 41 per cent reduction
Scope 1 Conversion Factor CO2 total (kg) % Total in NOx per LTO on average across our fleet since 2007.
development of its fleet and the current fleet has an average
Aircraft (1) 3.15 kg/CO2 4,504,022,226 99.7o% aircraft age of less than four years, as compared to the global
industry average aircraft age of 13 years. Regulatory compliance - the European Union Emissions
Ground vehicles (Petrol) (2) 10.4 kgCO2/gal 962,342 0.02% Trading Scheme (EUETS)
Introduction of a new aircraft can result in immediate and
Ground Vehicle (Diesel) (2) 12.2 kgCO2/gal 5,719,559 0.13% substantial emissions reduction. The replacement of the Etihad has taken steps to ensure its compliance with the
MD11 freighter with our new A330-200F freighter has requirements of the EU emissions trading scheme, which
Scope 2
reduced carbon dioxide emissions. On the Abu Dhabi to requires the monitoring and verification of emissions and
EY Complex electricity (3) 0.863 kgCO2/kWh 1,215,852 0.03% Frankfurt flight this has been calculated to result in an average traffic data for all our flights into and out of Europe. The
reduction of 14,800 kilograms of CO2 for the entire flight. scheme also required Etihad to submit third party verified
(3)
EY Plaza electricity 0.863 kgCO2/kWh 569,890 0.01% emissions and tonne kilometre reports for 2010 to the UK
(4)
Environment Agency by the end of March 2011.
EY Complex district cooling water 0.674 kgCO2/tonne of cooling 2,937,504 0.06%

EY Plaza district cooling water (4) 0.674 kgCO2/tonne of cooling 2,207,080 0.05%

EY Complex potable water (5) 1.68 kgCO2/m3 137,021 ≥0.01%

(5)
EY Plaza potable water
1.68 kgCO2/m3 4,949 ≥0.01% Tonnes CO2 % improvement in CO2/RPK Tonnes NOx (<3,000ft) kg NOx/LTO
(Excluding residential)
5,000 100 900 50
TOTAL CO2 emissions 4,517,776,423 100.00% 4,500 95 800 45
90 700 40
4,000
600 35
Sources: 3,500 85
30
1. As per EU Emission Trading Scheme 3,000 80 500
25
2. Petrol and diesel: http://timeforchange.org/what-is-a-carbon-footprint-definition 2,500 75 400 20
3. Includes electricity used by heat pumps and electricity used by electric boilers. 2,000 65 300 15
Main source: http:// www.iea.org/Textbase/stats/electricitydata.asp?COUNTRY_CODE=AE 1,500 60 200 10
4.Estidama Credit RE-R1 Minimum Energy Performance : COP (Coefficient of Performance of 4.5 for District Cooling Plant) 500 55 100 5
5.Average benchmark data for desalination (http://www.ecobuild.co.uk/var/uploads/exhibitor/3862/pkwybghq5k.pdf)
2006 2007 2008 2009 2010 2007 2008 2009 2010
*Passenger aircraft only

16 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 17
On the ground
The company’s ground-based energy consumption
initiatives are focused on raising staff awareness and
encouraging energy saving initiatives throughout its
facilities. Green Office Champions are staff volunteers who
help to support and educate staff in best practices such
as recycling, switching off office equipment and lighting
when not needed, and using office resources wisely.
Electricity consumption is measured and tracked at both
headquarters (inclusive of the Etihad Training Academy)
and the offices at Etihad Plaza. We use CO2 conversion
factors to track emissions associated with electricity use.
The total electricity consumption at Etihad Complex for the
year was 1.4 GWh, with a peak in July.
Most of the building’s energy use is from the fan coil units
and air handling units associated with the air-conditioning
and ventilation systems, and to a lesser extent, the
lighting system. The extensive IT and supporting electrical
equipment in the office areas and the simulators at the
Training Academy are also major contributors to energy
consumption. The high summer temperatures result in
significantly higher cooling water requirements with
almost 50 per cent more energy being consumed in the
hottest month compared to the coldest month.
The district cooling system is an energy intensive process
resulting in one of the highest energy requirements for our
ground facilities in Abu Dhabi.
Noise management
Whilst emissions concerns are high on our environmental
agenda, noise affects many communities that live close
to airports. The International Civil Aviation Organisation
(ICAO) developed a ‘balanced approach’ to control
noise for the industry that focuses on four key aspects
of noise management namely, reducing the noise at
source; controlling land use around airports to prevent
noise sensitive development; enforcing noise reducing
operational procedures for aircraft; and implementing
operational restrictions, such as banning noisier aircraft.
In terms of operational control, our young aircraft are all
in compliance with the ICAO Chapter 4 Noise Standards -
the highest noise standard currently imposed by ICAO on
new engines types.
Waste management
Internally, Etihad has implemented best practices to
reduce the amount of waste material sent to landfill with a
program in the head office complex to segregate plastics,
aluminium, paper and cardboard from the general waste
streams for recycling. The ground-based recycling program
will be extended to more Etihad facilities in 2011.
Working with Abu Dhabi Airports Company (ADAC)
and other airport partners, we are developing a series
of tangible waste management initiatives for our airport
ground operations and in-flight services.
A total of 731,850 kilograms of waste was collected during
2010. Of this, 2.2 per cent was recycled. In a typical
commercial office, paper waste would represent 50 per
cent of all waste generated. Our aim during 2011 is to
significantly increase the amount of recyclable material
segregated for recycling to at least 10 per cent of our total
waste.
Etihad co-chairs the waste management taskforce set
up by the Abu Dhabi Sustainability Group to improve
communication of waste management initiatives in
Abu Dhabi, driving best practice and the more effective
implementation of waste reduction practices across the
Emirate.
Water consumption
Water is a scare resource in the Gulf region, and the
widely used desalination method for the production of
drinkable water is a highly energy intensive process.
In 2010 the Abu Dhabi Environment Agency (EAD)
initiated an Emirate-wide program of fitting water-saving
devices to water taps in all domestic and commercial
premises. Etihad was one of the first Abu Dhabi
companies to support this initiative by instigating the early
implementation of water saving devices in Etihad offices and
residential premises. Over 14,000 devices were installed
between July and September 2010.
The existing water consumption monitoring programs in key
Etihad offices allow for the gathering of quantitative data
on water savings in order to monitor the effectiveness of the
program.
We are able to calculate the carbon emissions associated with
the production of potable water using conversion factors from
the water providers.
Immediately following the installation of the tap devices in
mid 2010, water usage dropped significantly. This may also
have been due to heightened staff awareness following the
water saving campaign.
We will continue to promote staff water use awareness and
will be looking to reduce water consumption further during
2011.
Education and communication
Several ground-based initiatives were implemented towards
the end of 2009 and were supported by regular education
and awareness campaigns during 2010, including:
• Recycling of paper, aluminium cans, plastic bottles and
printer cartridges throughout the Etihad Complex;

Etihad Complex: 2010 Electricity consumption Etihad Complex: 2010 District cooling consumption Etihad Complex: 2010 Water consumption
* Installed the water fittings in August 2010
Total KWh Carbon emission kg Total cooling tonne/hour Carbon emission kg
160,000 600,000 Carbon emission kg Total cubic metres Quantitative reduction targets for 2011
140,000 18,000 12,000
compared to 2010
500,000
120,000
16,000 • 5 per cent reduction in potable water consumption
10,000
400,000 14,000
at Etihad Complex
100,000
12,000 8,000 • 5 per cent reduction in energy consumption at Etihad
80,000 300,000
10,000
Complex and the Etihad Plaza offices
6,000
60,000
8,000
• 10 per cent reduction in the volume of waste to
200,000
40,000 4,000
landfill from Etihad Complex
6,000
20,000 100,000
4,000
• 10 per cent improvement in waste segregation and
2,000 recycling in Etihad Complex
2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • 10 per cent reduction in copy paper use in Etihad
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Complex and Etihad Plaza offices

Etihad Plaza (office only): 2010 Electricity consumption Etihad Plaza office/residential: 2010 District cooling consumption Etihad Plaza Office: 2010 Water consumption
* Installed the water fittings in July 2010
Total KWh Carbon emission kg Total cooling tonne/hour Carbon emission kg
70,000 Carbon emission kg Total cubic metres Etihad Complex: 2010 General waste production and recycling
500,000
450 800
60,000 450,000
400 700
400,000 28 AED Recovery cost
50,000 350 600 Plastic
350,000 90 kg
300
40,000 500 112.25 AED
250,000
250 Cans
400
240 kg
30,000 200,000
200 Card 1,303 AED
150,000 300
20,000 board 3,425 kg
150
100,000 200
10,000 100 Paper 3,620 AED
50,000 13,425 kg
100
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec General
waste 731,850 kg
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

18 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 19
• Internal communications, including a new environment Biofuels
site on the staff intranet; office signage; regular features
in Etihad Today, our monthly staff newsletter, and the Etihad acknowledges that alternatives to traditional fossil
launch of the Green Office Champions staff volunteer based fuels are fundamental to the sustainable future of
program; aviation. With this in mind, Etihad is demonstrating its
• Replacement of disposable polystyrene cups with support directly through an Abu Dhabi based initiative
recyclable paper cups, and a reduction in the size of the and by virtue of its commitment to a comprehensive set of
annual order; sustainability principles for alternative fuels.
• Replacement of paper bags with bio-degradable plastic
bags in Etihad shops; The Sustainable Bioenergy Research Consortium
• A Paperless Office Day, which resulted in a saving of Alongside Boeing and Honeywell subsidiary UOP, Etihad
more than 1,000 sheets of paper; is a founding member of the Masdar Institute Sustainable
• Masdar City visit with Green Office Champions as part Bioenergy Research Consortium, a dedicated resource
of a staff awareness campaign; and investigating the viability of sustainable biofuels in
• Support for the Emirates Environment Group beach Abu Dhabi and the potential for wider application and
cleanup campaign. commercialisation.

Abu Dhabi Environment Heath and Safety Management
System
Led by the Etihad safety and quality department, action is
underway to ensure compliance with the new legislation
in Abu Dhabi for the development and implementation of
an environmental health and safety management system
for Etihad operations and facilities. All documents were
submitted by the end of December 2010 deadline.
Working in partnership
Working closely with business partners, the aviation
industry, governments, community groups and other local
and international stakeholders is essential for effecting
positive and sustainable change in environmental
practices.
In the global arena, Etihad is represented on the
Environmental Committee of lATA and the Environmental
Policy Group of the Arab Air Carriers Organisation
(AACO). We also work closely with industry associations
and other airlines to help influence and shape future
regulatory measures to ensure they are appropriate, fair
and consistently applied.
Etihad is also a member of the Abu Dhabi Sustainability
Group and the UAE General Civil Avaiation Authority
Aviation Environmental Working Group.
Our ongoing partnership with Masdar includes a service
agreement, signed with the Masdar carbon management
unit, for the purchase of carbon credits for a future
voluntary offset program.
In January 2010, Etihad committed to becoming a
founding partner of the Masdar Institute-hosted and led
Sustainable Bioenergy Research Consortium and is also
a member of the Sustainable Aviation Fuel Users Group
(SAFUG).
The consortium is working on an integrated seawater
agriculture system, which will use the arid saltwater
landscape around Abu Dhabi’s coastline to develop
not just aviation fuels but other forms of biofuel and
aquaculture products without the need for freshwater.
An early sustainability assessment has provided positive
indications that this system is feasible and commercially
viable on a large scale. The next stage is a pilot study.
Research and development of sustainable biofuels
is a priority for Etihad. Not only would biofuels be
commercially beneficial as an alternative fuel supply, but
the future regulatory landscape for aviation is likely to
favour their use.
Sustainable Aviation Fuel Users Group (SAFUG)
SAFUG is an airline-led industry working group
established in 2008 to accelerate the commercialisation
and availability of sustainable biofuels.
Members are bound by stringent criteria in the
development of non-fossil biofuels. The development of
plant sources must be undertaken in a manner that is non-
competitive with food, minimises biodiversity impacts, and
does not jeopardise drinking water supplies. Furthermore,
the total lifecycle greenhouse gas emissions from plant
growth, harvesting, processing and end-use should be
significantly less than those from fossil sources.
“Etihad is a founding
In developing economies, projects should include member of the Masdar
provisions or outcomes that improve socio-economic
conditions for small-scale farmers and their families and Institute Sustainable
that do not necessitate the involuntary displacement of Bioenergy Research
local populations. High conservation value areas and
native eco-systems should not be cleared and converted Consortium, a dedicated
for jet fuel plant source development. resource investigating the
Each SAFUG member has pledged to work through the viability of sustainable
Roundtable for Sustainable Biofuels (RSB), a global multi- biofuels in Abu Dhabi
stakeholder initiative consisting of leading environmental
organisations, financiers, biofuel developers, petroleum and the potential for
companies, NGOs, research entities and governments. wider application and
commercialisation.”

20 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 21
Growing Together is a collection of initiatives to support
the growth and development of Abu Dhabi and its citizens.
It demonstrates our ongoing commitment to work as a
catalyst for trade and tourism in Abu Dhabi, and support
national and regional development initiatives.
Economic contribution
Etihad plays a fundamental role in driving the economic
diversification and growth envisaged in the Abu Dhabi
2030 Plan.
USD 763 million and supported an additional 14,235 jobs
in 2010, when taking into account the money spent by
the airline through commercial interactions with a wide
range of Abu Dhabi businesses, including fuel purchases,
maintenance and repairs, airport rental and landing fees,
marketing and advertising, IT and communications.
A further ‘induced’ GDP contribution of USD 661 million
and 12,339 additional jobs can be attributed to money
spent during 2010 by people working for Etihad Airways
and its suppliers.

A study by UK think tank Oxford Economics was Travel and tourism

commissioned to quantify the overall economic
contribution of Etihad Airways to the Emirate of Abu
Dhabi now and in the future. The study, which is refreshed
annually, uses data from Etihad and the Abu Dhabi
government and incorporates the results of a survey of 210
companies in Abu Dhabi, as well as in depth case study
interviews with a number of key business leaders.
Hala Abu Dhabi
Part of Etihad Holidays, Hala Abu Dhabi, was launched in
March 2010 as Etihad’s destination management company.
It provides business and leisure visitors to Abu Dhabi and
the UAE with a wide range of unrivalled products, services
and activities.

Detailed examination of the economic contribution essential abu dhabi

framework shows the airline is playing an increasingly
important role in many diverse areas of local economic
endeavour, including trade, tourism, location investment,
labour supply and productivity.
According to the 2011 study, overall, the airline
contributed USD 6.1 billion (9.1 per cent) of Abu Dhabi’s
non-oil GDP (3.7 per cent of total GDP) in 2010, and
helped generate and support a total of 97,472 non-oil jobs
throughout the Emirate, employing 6,631 people directly.
Etihad Airways designated 2011 as “the year of Abu
Dhabi” and launched its “essential abu dhabi” destination
marketing campaign to enhance Abu Dhabi’s standing
as a top tourist and MICE destination through a range of
promotional activities across its network.
A campaign with community stakeholders, the campaign
draws together all major tourism operators in the Emirate
of Abu Dhabi for the first time to showcase the best the
capital has to offer.

Etihad made a further ‘indirect’ economic contribution of

Direct Indirect Catalytic Effects

(within Etihad) (suppliers to Etihad) (impacts on other
Airport and services Suppliers Business services industries) “The progress the company has
Airline • Fuel on site • Offsite fuel suppliers • Call centres

Passenger services
Air cargo services
Airport services
Maintenance
Hotels
Travel network
The impact of Etihad Airways economic contribution to Abu Dhabi
• Aircraft Maintenance • Manufacturing • Accountancy Trade achieved since its launch and
• Air traffic control • Computers/electronics • Travel agents
• Retail and catering • Retail goods Tourism the projected growth constitute
Local/Investment
Induced
an effective contribution to
Labour supply
(spending of direct and indirect employees)
Productivity
the growth and boom being
• Food and Beverage
• Recreation witnessed by the UAE. Such
• Clothing
• Household goods etc. contribution will also boost the
tourism sector in the country.”
HH Shaikh Khalifa bin Zayed Al Nahyan
President of the UAE

22 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 23
“We are proud to
support programs
that promote
the richness and Etihad plays a crucial role in bringing visitors to Abu
Dhabi, and essential abu dhabi will give extra momentum
Sponsorship

Etihad sponsorship covers arts, community, cultural

diversity of modern to its efforts to promote the capital as one of the world’s
best destinations. and sporting activities which promote and enhance its
brand and profile locally and in key markets across the
Arabic cultural essential abu dhabi is being promoted in all of our
overseas destinations, as well as online and in-flight.
network. We also engage in strategic regional and national
sponsorships which allow for grassroots activities that

life.” A new Etihad Airbus A330 aircraft painted in a striking

engage the local community.

“Visit Abu Dhabi in 2011” livery is carrying the message to
many destinations around the world.
The campaign is supported by the Abu Dhabi Tourism
Authority as a major partner, demonstrating the
commitment of the entire local tourism industry to work
effectively together.
Sougha – embracing our heritage
A unique collaboration with Sougha, a Khalifa Fund
initiative, is working with women in the western region to
preserve traditional crafts in a range of modern products
that are included in the duty free selection on board Etihad
flights.
This project supports the economic inclusion and
development of an otherwise marginalised rural
community, the enhancement and creation of employment
opportunities for women, and the Emirate’s overall goal of
economic diversification.
Emiratisation
One of our primary contributions to the local economy
is through our Emiratisation program. Since its
commencement, Etihad has been invested a significant
amount in the three main streams of the Emiratisation
endeavour; the cadet pilot program, the graduate
management development program, and the trainee
engineering apprenticeship scheme. A total of 100 Emirati
nationals have graduated from the programs so far. (See
also Working Together)
Sport in the community
We work with our sports partners to develop Emirati and
international sporting talent and support grass roots sport
in the UAE.
The inaugural Etihad Airways Manchester City FC Soccer
Schools took place in April 2010 following the highly
successful Harlequins Rugby Schools and Chelsea FC
Soccer Schools held previously. Players and coaches from
the club flew to Abu Dhabi and Al Ain to train more than
400 young sportsmen in the Emirate and to help develop
youth football in the region.
Etihad picked up top honours at the Arabian Sponsorship
Awards 2010 for its partnership with English Premier
League team Manchester City Football Club, winning the
‘International Sponsorship’ category. Etihad was credited
for its activation of the partnership in areas that included
competitions and promotions in the local market as well
as the highly popular Etihad Airways Manchester City FC
Soccer Schools during the winter months.
Etihad conducted a tour of local schools and malls in the
UAE with a giant replica of the Manchester City FC shirt
that gained over 5,000 signatures and messages of good
luck for the club ahead of the 2010/2011 English Premier
League season.
Etihad was also closely involved with the “Our Country
versus Our City” match, which saw many of the
Manchester City FC star players take on the UAE national
team in an exhibition match.

Emirati percentage of workforce

(excluding flight crew) PROGRAMS Graduated
2011 Participants
Existing New
16%
Cadet pilot 60 80 100

12% Graduate management development 31 30 50

Technical engineering 9 37 50
8% Contact centre - 80 80
VEDC - 7 40
4%
Emirati development career n/a 30 -
0% Program support and overheads n/a 15 8
2009 2010 Total 100 249 328

24 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 25
Our people
Since 2005, the number of Etihad employees has grown
fourfold, with the greatest increase occurring in the period
from 2007 to 2008.
Finding and attracting talent locally and globally is
imperative to the success of our organisation. High calibre
candidates are sourced a range of other professional
sectors depending on the nature of the role.
As of December 2010, Etihad employed 7,855 people
worldwide, representing 123 different nationalities
and creating a unique cultural diversity. UAE nationals
currently comprise 13 per cent of the workforce (excluding
cabin crew and outstations).
Emiratisation
Etihad has invested significantly in the Emiratisation
program, which is now in its fourth year, a fact endorsed
by the growing number of applicants and the positive
market perception of Etihad as an employer.
In September 2010, Etihad’s largest graduate group of
77 received certificates of achievement from the Chief
Executive Officer at a ceremony in Abu Dhabi.
Al Ain contact centre
As part of our continuing efforts to focus on opportunities
for Emirati women in the workforce, planning began in
2010 for the opening of a unique all-women contact
centre at Al Ain. Employment and training of the Emirati
staff commenced in the third quarter of 2010 to ensure
that the 85 women would be fully equipped to take on
their new roles. The contact centre was opened in March
2011.

The Board’s directive to source and develop young Internship and mentoring
Emirati nationals is seen as a key management priority Etihad offers internships to UAE nationals providing
and Etihad is committed to providing real and meaningful on-the-job opportunities to gain work experience while
employment opportunities and career paths for Emiratis. completing their studies at several tertiary educational
An Emiratisation policy and strategy were formally institutions in the UAE.
implemented in 2007 when the first programs were
launched. Vocational education
In 2010 Etihad employed the first team of students from
The core initiative comprises three schemes - the cadet the Vocational Educational Development Centre (VEDC).
pilot program, the graduate management development Having gained work experience at Abu Dhabi Airport
program and the trainee engineering apprenticeship during the previous year, the 2009 class of 11 students
scheme. graduated and joined Etihad as permanent employees of
the airport services team.
We are committed
Employee growth
AS AT 31 DECEMBER 2009 2010 to achieving
Number of employees
full sustainable
Total staff 7,828 7,855
9,000
Head office staff - headquarters 6,605 6,631

employment and
8,000
Outstation staff 1,223 1,224
7,000

development of the
6,000 Flight attendants 3,031 2,783

5,000 Flight deck crew 829 982

4,000

3,000
Number of Emiratis

2010 PROGRAM
316 484
national workforce.
Places Applicants
2,000
Graduate management program 15 430
1,000
Cadet pilot program 24 449

2005 2006 2007 2008 2009 2010 Engineering 24 225

26 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 27
Productive partnerships
Etihad has an agreement with Zayed University in Abu
Dhabi to develop and train Emiratis who want to pursue
a career in the airline industry, and works closely with
Abu Dhabi University, UAE University, Higher Colleges of
Technology, IAT, ILM, the British Council and the Horizon
Flight Academy.
We also partner with local institutions such as the Abu
Dhabi Tawteen Council, the Abu Dhabi Education Council
and the Institute of Applied Technology to broaden and
enrich the scope of our Emiratisation program.
in 2010, Etihad’s Emiratisation team participated in
the ‘Quadurat’ research project conducted by Hewitt
Associates and Stanford University to improve their
understanding of the strengths, capabilities and aspirations
of Arab nationals across the region. The survey was open
to all Emirati employees during August and September
2010. A total of 80 staff responded and the report has been
published.
Training and development
Given the regulated nature of the aviation industry, a high
level of technical competency is essential to business
operations, delivery and safety. To meet this requirement,
Etihad opened its own state-of-the-art training academy in
2008 to offer a positive learning environment and provide
classroom-based and technical training.
With the introduction of e-learning in 2010, the training
academy has been able to increase its productivity.
E-learning now comprises 67 per cent of the total training. pointing out that the growth and future success of both
Training on cultural diversity and Islamic culture is
embedded in many of the academy’s training programs,
including management development, group dynamics,
performance feedback communication and coaching.
Induction program
A new, mandatory induction program called ‘Marhaba’
was introduced in September 2010. The program provides
all the tools, information and support new joiners need
as they take up their roles in Etihad. Marhaba includes a
cultural awareness seminar to help employees integrate
into life in the UAE. There is also a ‘buddy’ system, which
teams existing employees with new joiners to ensure they
are assisted in every way possible in the first stage of their
journey as an Etihad employee.
Succession planning
A formal methodology for identifying and managing talent,
called Talent Watch, was introduced in the first quarter of
2010 with the aim of recognising and developing internal
talent; identifying critical roles in the organisation and
creating succession plans for those roles.
28 Etihad Airways CSR Report 2010
This process uses the nine-box model first used by
General Electric, which assesses people on two matrices –
performance and potential. In 2010, senior and mid-level
managers were evaluated by the Talent Board, which
met six times during the year. A number of key talent
placements were made as a result.
Remuneration
Etihad offers employees a wide array of financial and non-
monetary benefits including a home ownership scheme;
living and education allowances; supplementary flight
tickets for friends and family, and annual leave tickets for
employees and their immediate family members anywhere
on the Etihad network.
iachieve and pay for performance
Etihad believes that rewarding organisational and
individual performance is crucial in retaining high
performing staff, and in ensuring that remuneration is
competitive regionally and internationally.
Continuously benchmarked against and informed by
market and industry trends, the Etihad reward approach
has evolved from annual cost of living increments to one
that links and differentiates pay based on performance.
In 2010, 100 per cent (7,119) of all eligible staff
underwent the annual performance appraisal and rating
on which the approved range of salary adjustments was
based.
Academy resources Number
Classrooms 32
Computer-based training rooms
Auditorium
Flight simulators
Cabin emergency evacuation
Real fire fighting trainer
Door trainers (Boeing and Airbus)
Pool for emergency training
AS AT 30 DECEMBER 2005 2006
Total number of courses 1,107 1,320
offered by Etihad
Number of training hours 23,833 27,672
A holistic approach to employee wellbeing
Our main staff accommodation complex, Etihad Plaza,
offers a community-based environment with access to
grocery shopping, a pharmacy, a medical centre, a spa,
banking and money exchange services and restaurants.
Etihad Medical Centre
Opened in May 2010, Etihad’s state-of-the-art medical
centre is accredited by the GCAA and the Health Authority
of Abu Dhabi. It offers a broad range of medical services
free of charge to employees, with plans in place to extend
these services to their families. An average of 500 people
visit the clinic, which is located in Etihad Plaza, each
week.
Fit-2-Fly
All Etihad employees and their families have free access
to the airline’s Fit-2-Fly gyms and swimming pools in five
locations in and around Abu Dhabi. Personal trainers are
on hand to guide and support employees with individual
nutrition and fitness programs. The facilities record an
average of 9,000 visits per month.
Staff conference
Etihad held its Worldwide Staff Conference at the Yas
Marina Circuit in January 2011. The two-day conference,
attended by over 500 staff from around the world, was
addressed by the Chief Executive Officer and Etihad’s
senior management team. The Chairman of the airline’s
Executive Committee, His Excellency Mubarak Al Muhairi,
also made a special address to Etihad staff to thank them
for believing in Abu Dhabi and its vision for the future,
Etihad and Abu Dhabi is interwoven.
The CEO and senior executives also update all staff
on developments across the business at bi-annual staff
roadshows.
6 audit and the IOSA 2010 renewal, the latter being the
Health and safety
1
4 Safety lies at the heart of our business and is a core value
across the company. The statement of commitment, policy
1
and procedures, reinforced by practice and training,
1 demonstrates management’s commitment to safety.
4
Environment, health and safety legislation
1 2010 we engaged with authorities in Abu Dhabi to ensure
compliance with new environment, health and safety
legislation. Internal resources have been put in place to
implement the system by the end of 2011.
Safety management system (SMS)
The implementation of a Safety Management System was
a major project for the safety and quality team and will
allow Etihad to manage safety proactively. The SMS is a
comprehensive system designed to manage health, safety
and general risks, providing a systematic way of identifying
hazards to control and reduce risks to acceptable
levels. It enables goal setting, planning and measuring
performance, communication with staff, training, safety
assurance and safety culture and reporting.
The organisation of the safety action group, accountable
for follow up and corrective action, was also improved
during the implementation of the SMS, and training in
safety management was conducted for the management
team. Online courses, available on the intranet, have
facilitated a smooth implementation process.
First Etihad safety manual
In 2010 we published the first safety manual. Structured as
a cross-departmental manual, it supports the requirement
for a company-wide SMS and helps to embed safety in
Etihad’s working procedures and processes.
Quality and safety training
Key to establishing consistency will be the continuing
design and implementation of standards, documented
processes and procedures, enforced through ongoing
training. Safety and quality support operational
departments in their training requirements. An audit
system allows measuring and qualifying needs of the
organisation to maintain regulatory compliance.
IOSA renewal 2010 with zero findings
All IATA member airlines are required to pass the IOSA
(IATA Operational Safety Audit) audit, which is conducted
every two years by an externally accredited audit
organisation. During 2009 and 2010, Etihad’s operations
quality team worked on the implementation of new IOSA
standards. In 2010 Etihad passed a major UAE GCAA
most recognised operational safety accreditation in the
airline industry. The program is comprehensive, consisting
of 966 standards subdivided into eight operational areas.
Passing this with zero findings is a significant achievement
demonstrating the very highest levels of safety.
Etihad Airways CSR Report 2010 29

Corporate and individual philanthropy is an important
part of Etihad’s CSR strategy. We enjoy a high degree of
recognition among our diverse stakeholders in the UAE
and the communities in which we operate. This brings
with it a corresponding expectation and responsibility of
involvement in these communities through philanthropic
and charitable projects and activities that enhance the
social and economic wellbeing of the people.
We manage our philanthropic giving and community
involvement ethically and transparently to meet our
corporate governance criteria and the expectations of our
stakeholders.
Crisis and humanitarian aid
Etihad staff responded with compassion and energy to
several successive natural disasters in 2010, donating
money and crisis aid items for distribution to communities
in Haiti, Chile, Pakistan and Australia.
Haiti
In January 2010 Etihad Crystal Cargo operated a special
Red Crescent and Khalifa Welfare Foundation charter
flight to Haiti carrying more than 80 tonnes of medical
and humanitarian supplies, while staff donated money and
relief items which were sent to Médecins Sans Frontières
and SOS Children’s Villages.
Pakistan
Due to the proximity and scale of the flood disaster
in Pakistan, the country’s close ties with the UAE and
its importance on our network, we undertook several
humanitarian initiatives to assist the affected communities
across the country.
Etihad staff and our brand ambassadors in Pakistan, the
pop-rock band Strings, visited the Sajawal relief camp
and also worked with the Emirates International Mobile
Humanitarian Hospital for Children (EIMHH) to distribute
more than 1,000 Eid gift packs to displaced children living
in the Razzakabad relief camp in Karachi.
In August 2010, we launched our new A330 freighter
aircraft carrying 59 tonnes of aid to assist the humanitarian
effort in Pakistan and also carried medical supplies from
Italy to Pakistan for the EIMHH.
30 Etihad Airways CSR Report 2010
Etihad operates in a
unique multicultural
environment. Promoting
cultural exchange and
connecting people and
places is part of our
Etihad also sponsored volunteers from the Pakistan Flood business as an airline,
Relief Dubai (PFRD) agency to visit the north-western
regions of Pakistan, where they distributed donated food, and an obvious area
clothing, and household items to families that were left
destitute by the floods.
of focus in our CSR
In the last quarter of 2010, we took part in HRH The
program.
Prince of Wales’ ‘Seeing is Believing’ program, which,
following damage and need assessment, is to fund and
implement a long-term and holistic reconstruction in the
country.
Queensland flood disaster
In response to the devastating flood that engulfed a
vast area of Queensland, Australia, and affected at least
200,000 people, companies in Australia and around the
world rallied to provide support to the government and
affected communities.
With the strong endorsement of our Board, and in addition
to initiatives by the UAE government, Etihad pledged
AUD 1 million in aid to the Queensland government in
recognition of the close ties between Australia and the
UAE.
Care by Air
Etihad is a founding signatory and member of Care by Air,
a humanitarian and relief aid initiative from Abu Dhabi
together with Maximus Air Cargo and Abu Dhabi Airport
Services. Care by Air provides cargo space at cost price
to deliver relief aid to disaster stricken areas around the
world.
Airlink
Etihad is a registered member of the International Society
of Transport Aircraft Trading (ISTAT) Airlink, which
provides and promotes a free web-based portal aimed at
addressing developmental and emergency humanitarian
air transportation needs. The system connects charities
and non-government organisations with airlines that can
provide passenger or cargo transportation for free or at
reduced cost to meet humanitarian and emergency relief
aid requirements.
Etihad Airways CSR Report 2010 31
Community engagement
One of our key areas of focus is human empowerment
and development. In the workplace this manifests in our
Emiratisation program and a range of training and career
development programs for all staff. Externally, we work in
a variety of communities and with accredited programs to
deliver opportunities, education and vocational training
that have the potential to drive employment and enhance
the quality of life in the community. [See also Working
Together.]
Mosaic
Founded by His Royal Highness the Prince of Wales,
Mosaic has two key priorities - to create opportunities for
young people of all backgrounds, and to promote cultural
understanding between different people and groups.
Etihad has a longstanding relationship with Mosaic,
and over the last three years has sponsored numerous
initiatives, including the Mosaic International Summer
School and the Mosaic International Awards.
As the official airline for the Mosaic International Summit,
Etihad flies delegates from across the Muslim world
to attend the program which, in addition to providing
opportunities for delegates to develop leadership skills,
offers a multicultural perspective of key global issues
and works with students to address these in positive and
creative ways.
Three Etihad employees participated in the Mosaic
International Summit in 2010. The delegates, members
of Etihad’s Emiratisation program, were Aisha Al Ameer,
Shaeb Alnajjar and Najla Al Nahdi.
In November 2010, Etihad continued to celebrate the work
of young Muslims through its sponsorship of the Mosaic
Talent Awards 2010 in London. The International Award
recognises a young Muslim individual or group which
delivers significant social benefit to their community.
The winner of the International Award for 2010 was Korvi
Rakshand Dhrubo, a 25 year old Bangladeshi who was
credited by Mosaic for dedicating his life to breaking the
cycle of poverty through education in the Dhaka slums.
32 Etihad Airways CSR Report 2010
Summit delegates flew with Etihad from Bahrain,
Bangladesh, Indonesia, Malaysia, Oman, Pakistan, Qatar,
Saudi Arabia and the UAE to spend two weeks hearing
from expert and inspirational speakers, taking part in
discussions and debates, and finally, planning how they
will put their learning into effect on their return home.
Offscreen
Offscreen is an award-winning social enterprise promoting
cross-cultural understanding among young people. This
not-for-profit initiative specialises in building creative
bridges and improving relations and perceptions across
economic and geographical borders, especially between
the UK, Middle East and the wider Islamic World.
It covers all forms of artistic expression and endeavour,
such as photography, film, fine art and fashion design, and
empowers young people to inspire their peers through the
creative communication and expression of other cultures,
ultimately building an educational legacy that is used in
various forums, including schools and public venues such
as museums.
Etihad was the official airline for two 2010 Offscreen
expeditions that took place in the UK and Pakistan.
Child Welfare Scheme
The Child Welfare Scheme (CWS) is a British charity
dedicated to improving the lives of vulnerable children
and their families in Nepal. CWS targets the most remote
or marginalised children with health, education and
protection initiatives. CWS reached in excess of 200,000
people in 2010.
Etihad Airways supported CWS, providing flights and
saving the organisation thousands of dollars in airfares.
These savings helped CWS to support emergency transport
schemes that include cycle ambulances in the Terai region
of Nepal. The ambulances help women from remote rural
areas to reach hospital safely and ensure they give birth
with medical support.
Associations Looking ahead
Abu Dhabi Sustainability Group While we will continue to sponsor initiatives that
The Abu Dhabi Sustainability Group (ADSG) aims to empower and develop young and disaffected people in
promote sustainability management in Abu Dhabi by Abu Dhabi and across our network, and provide support
providing learning and knowledge sharing opportunities for ad hoc philanthropic activities, we will look to select
for government, private companies and not for profit a single philanthropic project that will draw together
organisations. the efforts of our staff and customers in the provision of
financial and other meaningful support.
All members are required to sign the ADSG Declaration,
committing to adopt best practices of sustainability Other objectives for 2011 include the implementation of a
management and reporting and to actively participate in staff volunteer program that will build on the present work
ADSG activities, which focus on achieving economic, of the IFS volunteer group to facilitate and assist voluntary
environmental and social sustainability, and strengthening participation in projects with NGOs across our network.
inter-cultural dialogue around global and local
sustainability trends.
In addition to participation in the quarterly group
meetings, Etihad chairs the waste management taskforce
and participates in the supply chain and sustainable labour
practices taskforce groups.
Business in the Community
In 2010 Etihad signed up to become a member of Business
in the Community (BITC), one of the Prince of Wales’
charities. This business-led charity boasts 850 member
organisations that work together to define and implement
best practice in the workplace while creating a sustainable
future for people and the planet and improving business
performance.
We work with BITC to implement our sustainability
strategy and in finding new ways to play a meaningful
and responsible role in the workplace, marketplace,
environment and the community.
Etihad Airways CSR Report 2010 33

Corporate governance
Articles of Association
Manual of Authority
Contracts Manual
Tender Board
Etihad Airways operates under a rigorous organisational
structure, established in 2007 in line with the revised
Manual of Authority, which outlines authority limits
delegated by the Board to the Executive Committee,
management and staff in order to run the company’s
affairs and operations.
Etihad’s governance framework is as follows:
Shareholder
Board Meeting – Quarterly
Executive Committee – Monthly
Audit Committee – Quarterly
34 Etihad Airways CSR Report 2010
Etihad’s management reporting framework is as follows:
Name of Meetings Objective Frequency Attendees
Board Meetings The board meets the management of the company Quarterly Board members, CEO,
to ensure that shareholder mandates are effectively CFO and Chief Officers as
implemented. The Board receives its authority from required
the shareholder and effectively delegates that to the
management via the manual of authorities.
Executive Committee The Executive Committee meets management to Monthly A subcommittee of Board
Meetings discuss and authorise the carrying out of any activity members, CEO , CFO and
Government of Abu Dhabi deemed necessary to enable the company to achieve Chief Officers as required
its commercial objectives and operational activities,
and to review risks and formulate actions to address
such potential risks.
Board of Directors
Audit Committee To provide assurance to the Board over the quali- At least 5 Two members of the Board
fication, independence, and performance of the times a year – CEO and CFO
registered public accounting firm (external auditor),
and to seek advice from the company’s internal audit Two independent members
Executive Committee of the Board Audit Committee function as to the adherence to relevant governance including representatives of
standards. Abu Dhabi Accountability
Authority
External Audit
Audit Committee Secretary
(VP IA)
Management Internal Audit
Chiefs Meetings The Chief Officers of the company meet to discuss Monthly CEO, Chief Officers
Abu Dhabi Audit and review performance to ensure the company
Authority achieves its commercial objectives. At this meeting
the CEO updates his direct reports on issues affect-
ing the company and feedback of Board, Executive
COMMERCIAL MANDATE Committee and other meetings. The Chief Officers
update the CEO on issues and focus areas relating to
their divisions.
Performance Review These meetings focus on the performance of the Quarterly or CEO, Chief Officers, PMO
Prioritisation Meeting company including planned initiatives and continu- as required
The organisational structure ensures transparent reporting
ous improvement. Included in this review is the Cross functional VPs, FP
and sufficient checks and balances. A 2009 report by
BSC/ PMO/CAPEX
leading global management consulting firm Oliver
Wyman, for the Abu Dhabi Audit Authority, concluded VMC (Value Management Committee)
that Etihad had “established strong corporate governance
and process redesign”. Divisional Business The CEO meets with the management teams on a Monthly CEO, Chief Officers, VPs,
Review Meetings (BRM) monthly basis to ensure the organisation’s perfor- Departments Heads and
Various layers of shareholder, management and regulatory mance is aligned to strategic objectives and a healthy Divisional Financial Con-
operational environment exists. This is done through trollers
oversight ensure continuous performance review against
updating the CEO and other members of the BRM
corporate strategic objectives and external standards. on initiatives, projects, risks and critical performance
indicators and focus areas of the division
Divisional Organisa- Divisional Organisational Review Meetings (ORM) Twice CEO, Chief Officers, CPPO
tional Review Meetings are held to review the divisional organisation struc- Quarterly and HR Business Partners
(ORM) ture and identify resource needs, gaps, efficiency
Management Regulatory measures, career plans and succession planning
Manual of Authority External Audit – KPMG Annual
Tender Board Meetings Financial Review – KPMG Quarterly
Internal Audits Government Audit – ADAA Periodic In addition to the various layers of shareholder, management and regulatory oversight, Etihad employs a centralised
Operations Audit – GCAA Annual
project management office (PMO) and value management committee (VMC), and operates an ethical and objective
Safety Audit – IOSA Biennial
process for the procurement of goods and services, managed by a tender board.
Etihad Airways CSR Report 2010 35
Global Reporting Initiative
Page Yes Section
4.13 Membership in relevant associations 19, 20 ü Working in partnership
4.14 List of stakeholder groups engaged by organisation 11 ü Partial Stakeholders

cross reference and index

4.15 Basis for identification and selection of stakeholders 11 ü Partial Stakeholders
4.16 Approaches to stakeholder engagement 11, 13 ü Partial Stakeholders; Together
4.17 Key topics and concerns raised through stakeholder engagement 11 ü Partial Stakeholders
Other
Etihad is fully committed to using the Global Reporting Initiative (GRI) and the application of GRI inidicators in
Performance indicators: Environmental
developing its CSR report. We have reported on material environmental and social indicators, either fully or partially
Materials
this year and will look to improve on this as we widen the scope of our reporting in future years.
EN1: Materials used by weight or volume x
EN2: Percentage of materials used that are recycled input materials X
Page Yes Section
EN3: Direct energy consumption by primary energy source 14, 16 ü Measuring emissions and materi-
A.    Formal CSR reporting
17 ality; In the air
Publication of CSR policy ü Sustainability vision
EN4: Indirect energy consumption by primary energy source 14, 16 ü Measuring emissions and materi-
Formal annual reporting of CSR performance ü 18 ality; On the ground
Other EN5: Energy saved due to conservation / efficiency improvements 14, 16 ü Measuring emissions and mate-
17, 18 riality; In the air; On the ground;
1.     Strategy Education and communication
1.1 Senior management statement of vision for CSR / sustainability 5 ü From the Chief Executive Officer EN6: Initiatives to provide energy-efficient products and services 20 ü Working in Partnership; Biofuels
1.2 Description of key impacts, risks and opportunities EN7: Initiatives to reduce indirect energy consumption x
2.     Organisational profile 6 ü Etihad today Other:
3.     Report parameters Water
3.1 Reporting period 2 ü Report parameters EN8: Total water withdrawal by source 19 ü Water consumption; Education
and communication
3.2 Date of recent previous report Not relevant
Other
3.3 Reporting cycle 2 ü Report parameters
Biodiversity
3.4 Contact point for questions regarding report 2 ü Report parameters
EN11: Location and size of land owned, leased etc in or adjacent to protected areas and x
3.5 Process for defining report content 2 ü Report parameters
areas of high biodiversity value
3.6 Boundary of report ü
EN12: Description of significant impacts of activities x
3.7 Statement of limitations on scope or boundary ü Emissions, effluents and waste
3.8 Basis for reporting on JVs, subsidiaries, etc Not relevant EN16: Total direct and indirect greenhouse gas emissions by weight 14, 16 ü Measuring emissions and materi-
3.9 Data measurement techniques and basis of calculations x ality; Our carbon footprint;

3.10 Explanation of effect of any restatements of information from earlier reports Not relevant EN17: Other relevant indirect greenhouse gas emissions by weight 14, 16 ü Measuring emissions and materi-
ality; Our carbon footprint;
3.11 Significant changes from previous reporting periods in scope, boundary, measurement Not relevant
etc EN18: Actions to reduce greenhouse gas emissions and reductions achieved 14, 16 ü Measuring emissions and
17 materiality; Our carbon footprint;
3.12 Table identifying standard disclosures x In the air; Education and com-
3.13 Assurance x munication

4.     Governance, commitment and engagement EN19: Emissions of ozone depleting substances by weight x

4.1 Governance structure ü Partial Corporate Governance EN20: NO, SO and other air emissions by weight 14, 16 ü Partial Measuring emissions and
17 materiality; Our carbon footprint;
4.2 Chair of highest Governance body an executive officer ü Partial Corporate Governance In the air; Education and com-
munication
4.3 # of members of Governance body who are independent X
EN21: Total water discharge by quality and destination x
4.4 Mechanisms for shareholders / employees to provide recommendations to Governance X
body EN22: Total weight of waste by type and disposal method 18, 19 ü Waste management; Education
20 and communication
4.5 Linkage between compensation and organisation’s performance (inc social and environ- X
mental performance) EN23: Total number and volume of significant spills x
4.6 Process for Governance body to avoid conflicts of interest X Products and services
4.7 Process for determining qualifications of highest Governance body X EN26: Initiatives to mitigate environmental impacts of products and services, and extent of 14 to 21 ü Together Greener
mitigation
4.8 Internally developed statement of mission or values ü
EN27: Percentage of products sold and packaging materials that are reclaimed by category x
4.9 Process for Governance body to identify management of performance x
Compliance
4.10 Process for evaluating Governance body’s own performance x
EN28: Monetary value of significant fines and total number of non-monetary sanctions for x
4.11 Explanation of whether and how precautionary approach is addressed x
noncompliance with environmental laws and regulations
4.12 Externally developed charter, principles etc to which organisation adheres x
Transport

36 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 37
 Page Yes Section Page Yes Section
EN29: Significant environmental impacts of transporting goods, materials and members of x SO6: Total value of financial and in-kind contributions to political parties, politicians and x
the workforce for the organisation’s operations related institutions by country
Performance indicators: Human rights Anti-competitive behaviour
Investment and procurement practices SO7: Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly x
practices and their outcomes
HR1: Percentage of significant investment agreements that include human rights clauses or x
have undergone human rights screening Compliance
HR2: Percentage of significant suppliers and contractors that have undergone screening on x SO8: Monetary value of significant fines and total number of non-monetary sanctions for x
human rights and actions taken noncompliance with laws and regulations
Non-discrimination Performance indicators: Product responsibility
Total number of incidents of discrimination and actions taken x Customer health and safety
Freedom of association and collective bargaining PR1: Life cycle stages in which health and safety impacts of products and services are as- x
sessed for improvement, and percentage of significant products and services categories
HR5: Operations taken in which right to exercise freedom of association and collective x
subject to such procedures
bargaining might be at risk, and actions taken
PR2: Total number of incidents of non-compliance with regulations and voluntary codes x
Child labour
concerning health and safety impacts of products and services
HR6: Operations identified as having significant risk for incidents of child labour and meas- x
Product and service labelling
ures taken to contribute to elimination of child labour
PR3: Type of product and service information required by procedures, and percentage of x
Forced and compulsory labour
significant products and services subject to such information requirements
HR6: Operations identified as having significant risk for incidents of forced and compulsory x
PR5: Practices related to customer satisfaction, including results of surveys measuring x
labour and measures taken to contribute to elimination of forced and compulsory labour
customer satisfaction
Security practices
Marketing communications
HR8: Percentage of security personnel trained in organisation’s policies concerning aspects x
PR6: Programmes for adherence to laws, standards and voluntary codes relations to market- x
of human rights that are relevant to operations
ing communications, including advertising, promotion and sponsorship
Performance indicators: Labour practices and decent work
Customer privacy
Employment
PR8: Total number of substantial complaints regarding breaches of customer privacy and x
LA1: Total workforce by employment type, employment contract and region 26 ü Our people losses of customer data

LA2: Total number and rate of employee turnover by age group, gender and region x Compliance

LA3: Benefits provided to full-time employees that are not applied to temporary or part-time 26 to 29 ü Working together; Emiratisation PR9: Monetary value of significant fines for noncompliance with laws and regulations x
employees, by major operations concerning the provision and use of products and services

Labour / management relations Performance indicators: Economic

LA4: Percentage of employees covered by collective bargaining agreements x Economic performance

LA5: Minimum notice periods regarding operational changes, inc whether specified in col- x EC1: Direct economic value generated and distributed, including revenues, operating costs, 22 ü Partial Economic contribution; Giving
lective agreements employee compensation, donations and other community investments, retained earnings, together
and payments to capital providers and governments
Occupational health and safety
EC2: Financial implications and other risks and opportunities for the organisation’s activities x
LA7: Rates of injury, occupational diseases, lost days and absenteeism x due to climate change
LA8: Education, training, prevention programme to assist workforce members and families x EC3: Coverage of the organisations defined benefit plan obligations x
regarding serious diseases
EC4: Significant financial assistance received from government x
Training and education
Market presence
LA10: Average hours of training per year per employee by employee category ü Partial Our people
EC5: Range of ratios of standard entry level wage compared to local minimum wage at x
Diversity and equal opportunity significant locations of operation
LA13: Composition of governance bodies and breakdown of employees per category ac- x EC6: Policy, practices and proportion of spending on locally-based suppliers at significant x
cording to gender, age group, minority group membership and other indicators of diversity locations of operation
LA14: Ratio of basic salary of men to women by employee category x EC7: Procedures for hiring and proportion of senior management hired from local com- 26 ü Emiratisation
Performance indicators: Society munity at locations of significant operation

Community Other

SO1: Nature, scope and effectiveness of programmes and practices that assess and manage ü Noise management Indirect economic impacts
the impacts of operations on communities EC8: Development and impact of infrastructure investments and services provided prima- 22, 30 ü Economic contribution; Giving
Corruption rily for public benefit through commercial, in-kind or pro bono engagement together

SO2: Percentage and total number of business units analysed for risks related to corruption x Performance indicators: Logistics and transportation

SO3: Percentage of employees trained in organisation’s anti-corruption policies and proce- x LT2: Breakdown of fleet composition 7 ü Our fleet
dures LT3: Description of policies and programmes on the management of environmental im- 14 to 17 ü Etihad airways Environment
SO4: Actions taken in response to incidents of corruption x pacts, including sustainable transportation, modal shift and route planning Policy; In the air

Public policy LT4: Description of initiatives to use renewable energy sources to increase energy efficiency 20 ü Biofuels

SO5: Public policy positions and participation in public policy development and lobbying 20, 28 ü Partial Working in partnership; Health LT7: Description of policies and programmes for noise management / abatement. 18 ü Noise management
and safety

38 Etihad Airways CSR Report 2010 Etihad Airways CSR Report 2010 39
 Etihad Airways PJSC
Airport Road, P O Box 35566,
Abu Dhabi, United Arab Emirates
Licence No. with the Department of Economic
Development - 1002105
Tel +971 2 511 0000

40 Etihad Airways CSR Report 2010