Virgin Atlantic is implanting sustainability at the nucleus of our concern. We recognise the turning impact air travel has on the environment. and are seeking to turn to this every bit best as we can. There are many undertakings in topographic point across the concern to do this a world. both in the air and on the land. Our recent committedness to put up to $ 8bn in the most efficient aircraft available for our paths. is a move that will assist us to accomplish an betterment in our fuel efficiency by 30 % by 2020. We have besides forged a dynamic partnership with Boeing to assist research sustainability chances and. in 2008. this partnership will let us to perpetrate to the first of all time biofuels presentation in a commercial aircraft. This is all supported by Sir Richard Branson’s committedness to put his net incomes and returns from the Virgin conveyance companies. including Virgin Atlantic. in biofuels research and development and undertakings to undertake planetary heating. We want our clients to experience certain that we are doing every attempt to go the most sustainable air hose in the universe and to cut down the impacts of air power on our environment. respects Steve

The purpose of this policy is to pass on our cardinal environmental policies and marks. We will supply twice annually updates on our advancement against these marks. fixed on a 2007 baseline. and they will be verified by 3rd parties. We believe that a sustainable concern is one which can go on to fulfill the demands of its stockholders and clients while moving responsibly toward the environment and the communities in which it operates. While this policy deals entirely with the environmental impacts of our concern. our journey to going a more sustainable company is besides closely linked with our societal and ethical duties. These will be detailed in a separate policy that is presently being reviewed.

1

Climate Change and air power
Aviation is a comparatively little but turning subscriber to semisynthetic C nursery gas emanations. The Stern Review. published by the UK Government in 2006. predicts that aviation’s part to planetary nursery gas emanations will lift from 1. 6 % to 2. 5 % by 2050. These emanations are produced by the combustion of fossil fuels. which power our aircraft jet engines. There are besides suggestions that because the bulk of these emanations are released at a high height during a flight. these emanations may hold a bigger impact than if they’d been released on the land. Climate alteration scientists are still debating this issue. As an air hose. we take the any environmental impact of our operations really earnestly. Given there is widespread scientific consensus that C dioxide emanations are a cardinal subscriber to climate alteration. we have chosen to turn to this as a cardinal precedence in this policy.

2

Our Aircraft
The fuel burnt by our aircraft is the chief subscriber to our emanations. so this is the country where we are presently concentrating most of our attempts. As a turning air hose. we won’t be able to accomplish an absolute decrease in our overall emanations in the close hereafter. but we are committed to turning our fleet in the most sustainable manner possible by puting in the least polluting aircraft available and winging them every bit expeditiously as we can. We already have a immature and fuel efficient fleet and run these to outdo pattern criterions. which means we’re already get downing from a strong place in footings of our fuel efficiency. We have set 2007 as our baseline so that we don’t take advantage of incremental betterments over the past decennary that would hold happened anyhow. This gives us an even more ambitious end within a tight timescale. We have worked with an independent emanations verification specializer to scrutinize the C footmark of our aircraft operations and will be printing this and a study on advancement against our emanations efficiency marks twice annually. on our web site.

Target: To accomplish a 30 % betterment in fuel efficiency per gross metric ton
kilometer between 2007 and 2020 Revenue metric ton kilometer ( or RTK ) is a standard air power industry step of efficiency. In simple footings. we want to accomplish a 30 % decrease in the sum of fuel needed – and therefore emanations generated – to transport each metric ton of riders and cargo one kilometer. This will be made possible through:

a. A fleet reclamation programme. We are puting in fuel efficient aircraft best suited to our operational theoretical account. We late ordered 15 Boeing 787-9 Dreamliners. which burn around 27 % less fuel per flight than the A340-300s they will replace. hypertext transfer protocol: //www. boeing. com/commercial/787family/

b. Concentrating on fuel efficiency. our internal Fuel Panel has a mark of salvaging 7000 metric tons of fuel ( that’s more than 21. 000 metric tons of CO2 ) in 2007/2008. This is tantamount to the emanations produced by 7119 autos in the UK each twelvemonth. The Fuel Panel. which meets monthly. is made up of pilots. applied scientists and other proficient experts from our Flight Operations squad. They will accomplish their end through enterprises such as engine compressor lavation ( which allows the aircraft engines to run more expeditiously ) . and educating pilots on more fuel efficient processs for take off and landing.

c. Reducing unneeded weight from our aircraft. We have a cross-company group of experts who meet monthly to place where we can do weight nest eggs across the concern. They have a mark to take one metric ton per aircraft for 2007/2008. and this will be achieved by taking unneeded points. utilizing lighter-weight options and new stuffs for onboard merchandises. Each metric ton of weight removed from merely one of our aircraft saves over 420 metric tons of C dioxide emanations per twelvemonth. Key to this challenge is working with the aircraft inside makers to present lightweight high quality merchandises that have a good care life rhythm on all our new aircraft.

d. Encouraging and prosecuting with all relevant stakeholders ( national authoritiess. air traffic direction service suppliers. international administrations ) to take forward chances for air traffic direction efficiency additions – e. g. Individual European Sky.

3

Localised environmental impacts
Equally good as the clime alteration impacts of air power. we besides have a duty to communities populating around our airdromes to run every bit softly as possible and to better local air quality. In recent old ages. there have been major progresss to do aircraft quieter and through the Sustainable Aviation Strategy. the industry has committed to a farther 50 % decrease in entire noise energy for aircraft come ining into service in 2020. compared with 2000 equivalents. Nationally. the figure of people adversely affected by aircraft noise has fallen by 60. 000 since 2000. Virgin Atlantic’s ain fleet well improves on international noise enfranchisement criterions. In fact our current fleet of 37 aircraft produces less noise energy in a full year’s operation than it did in 2001/2002. when there were 10 % fewer aircraft. The landing and take-off rhythm ( LTO ) has the most immediate impact on communities who live near airdromes. This is the phase where most fuel is consumed proportionate to the distance travelled. Since 2001/02. Virgin Atlantic has seen a downward tendency in CO2 emanations and Unburned Hydrocarbons ( UHCs ) in the LTO rhythm. a tendency that is expected to go on through 2007 and 2008.

This is mostly the consequence of our pilots runing to industry best pattern. including idle power descents. understating fuel used and the strain on the engine. Unfortunately. as we introduce more modern aircraft. we have seen a decrease in CO2 emanations at the disbursal of NOx. Current engineering does non let CO2 emanations to be reduced without increasing NOx and the immediate aim of the industry has been to concentrate on cut downing CO2. We are confident that with the Sustainable Aviation Strategy committedness of bettering NOx efficiency in new aircraft by 80 % between 2000 and 2020. this issue will be to the full addressed. One of the ways we improve fuel efficiency is by on a regular basis rinsing our aircraft. This has a existent impact on their weight and aeromechanicss. Pollutants and contaminations removed from the aircraft during rinsing are non merely flushed into the local H2O tabular array. With the BAA we have established a H2O intervention works at our Heathrow Hangar. into which the H2O used for cleansing aircraft is drained and the contaminations removed. During 2008
we’ll be looking at installations we used at other airdromes to do certain any inauspicious impact on local land H2O quality is minimised.

4

Energy
Although most of Virgin Atlantic’s impact on the environment is caused by aircraft operations. we’re non burying what happens on the land. Therefore. in partnership with the Carbon Trust. we are set abouting an energy reappraisal to set up the C footmark of the daily activities in our offices. aircraft care installations and airdromes. and to assist us place chances to cut down it. These consequences will be published on our web site.

Target: By 2020. we will bring forth all the electricity required for our chief UK sites. By 2012. we will cut down our ingestion by 10 % and by 2020 we will cut down it by 20 % at all Virgin Atlantic-controlled sites around the universe. At all of our chief UK sites we presently buy electricity from renewable beginnings. but even so we are committed to cut down our use through ;

a. Staff instruction on energy salvaging enterprises b. Investing in cost effectual energy salvaging devices and contraptions c. Identifying chances for efficiency additions in cardinal countries such as warming. chilling. lighting and technology procedures

5

Natural resources
Target: To do a 10 % decrease in our H2O usage by 2012 at Virgin Atlantic-controlled sites around the universe. This mark will be achieved through:

a. Identifying and implementing cost effectual ‘quick wins’ including ex post facto fitting H2O salvaging devices to lights-outs and lavatory cisterns. and staff instruction programmes to assist salvage H2O.

B. Investigating the possibility of recycling gray H2O within our bing edifice portfolio and doing this a cardinal factor in future building or major refurbishment undertakings.

Target: 25 % decrease in paper ingestion for each full clip member of staff by 2012. We already use recycled paper throughout our offices and so our focal point is on decrease. We aim to make this through:

a. Staff instruction b. Duplex printing as standard c. Reusing waste paper. etc d. In the long term. working towards being a paperless office. e. Reviewing our selling stuffs to guarantee we are utilizing the most environmentally friendly stuffs and traveling toward more electronic agencies of communicating.

6

Waste
Our chief precedence is to cut down the sum of waste we generate in the first topographic point. This is being addressed through a series of internal runs and enterprises to procure staff buy-in. We’re besides turn toing this issue by taking a closer expression at the stuffs we use. By sourcing merchandises which use fewer stuffs. or which can be reused or recycled and by taking stuffs that are reclaimable. biodegradable or renewable. we will hold a important impact on the sum and type of waste we presently produce.

Target: 50 % of the waste generated by the terminal of a flight will either be recycled or reused by 2012 Target: 50 % of waste from our land operations will be recycled or reused by 2012 We’re working really closely with airdrome operators around the universe to do certain we can recycle every bit much waste as possible from our aircraft. We already have in topographic point a comprehensive recycling strategy at all our chief UK office and care sites. and this will be reviewed continually to guarantee we’re invariably cutting down on the sum of waste we send to landfill.

7

Our concern travel
Like most big companies ( and as an air hose in peculiar ) our staff pass a batch of clip going around the universe on concern. As portion of our C footprinting exercising. we are mensurating C emanations generated by travel ( surface and air ) on company concern. We’ll besides be placing chances to cut down these emanations through communicating engineerings. cleaner vehicles. alternate agencies of conveyance and holding a company-wide policy on the least polluting conveyance for all concern travel. In 2007. some of our Heathrow staff trialled the G-Wiz electric auto and we’ll be looking at other chances to utilize renewable fuels for vehicles on the land. peculiarly at our airdromes where bettering local air quality is a precedence.

8

How we get to work
Virgin Atlantic already has in topographic point a travel-to-work program. which provides discounted options to driving. We are acute to better on this enterprise and to put robust marks for cut downing individual auto tenancy journeys to work. Opportunities such as flying a distant working enterprise. car-sharing strategies. farther price reductions on public conveyance and other inducements are presently under reappraisal.

9

Emissions Trading Scheme ( ETS )
Virgin Atlantic supports the overall aims of ETS. These are to utilize a market-based mechanism to accomplish cost effectual C emanation decreases and promote concerns to put in newer. cleaner engineerings. Therefore. we will go on to force for an international emanations merchandising strategy. based on the EU ETS theoretical account proposed by the Commission with a robust cap on emanations ; fix the air hose for engagement in emanations trading ; and construct the external cost of C into future concern determinations. Unlike environmental revenue enhancements and grosss generated through
auctioning C licenses. this market-based solution will accomplish guaranteed environmental benefits. As portion of our readyings for emanations merchandising we have carried out a C baseline confirmation pilot with independent specializers CICS and we make certain the possible monetary value of C emanations under ETS is taken into history in all hereafter concern determinations.

10

Air rider responsibility
We believe our riders have the right to cognize how their extra air rider responsibility charge is being spent and we urge the authorities to let go of inside informations of the environmental undertakings supported by this responsibility. This is peculiarly in visible radiation of the late announced audience on altering the manner that this responsibility is levied and associating it more closely to the environmental public presentation of air hoses.

11

Catalyst for industry invention
Our purpose is to dispute cardinal providers and other industry stakeholders to develop advanced solutions to turn to aviation’s impact on clime alteration and other facets of our environmental footmark. In 2008. in partnership with Boeing. Virgin Green Fund and engine shaper GE Aviation we will be transporting out a biojetfuel presentation. This will be a worldwide foremost for a commercial air hose. We’re besides working closely with industry and Virgin Green Fund to understand how biofuels can go an environmentally sound and truly sustainable long-run option for air power.

We will keep force per unit area on the UK authorities every bit good as other states around the universe to play their portion by bettering air traffic direction systems. which have an consequence on fuel efficiency. A good illustration of how successful this could be is through the possible efficiency additions accomplishable through the Single European Sky enterprise. which could ensue in a 12 % fuel efficiency betterment for the industry. We will go on to work with our spouses in air pilotage services and other industry stakeholders
to take forward interim enterprises ( e. g. collaborative determination devising ) that will supply shorter-term air traffic direction efficiency additions.

12

Sustainable procurance
Target – To map the cardinal supply concatenation of our major merchandises and embed sustainable procurement patterns during 2008. For all UK staff with a cardinal duty for procurance. we will be supplying in depth preparation on sustainable procurance patterns and will be including sustainability standards into our internal briefing and prioritisation paperss and tools. We will besides be pass oning our environment policies and sustainable procurance practises with our supply concatenation. and program to scrutinize our cardinal providers on these rules.

This will assist us to guarantee all of our new onboard merchandises are more sustainable than those they replace. For illustration. we will be bespeaking that where possible our providers: reclaimable. or * usage re-usable. usage of naturalbiodegradable stuffs and merchandises guarantee they are from sustainable understate their resources and where they do utilize them * or renewable beginnings use stuffs and merchandises which * environment on their extraction usage minimum energy to bring forth. and have minimum impact on the provide * as oftenus with merchandises which are lasting and long lasting. so they will non necessitate to be replaced

* minimise the transit of our merchandises to us the sum of on our merchandises * cut down the people whopackaging merchandises have good on the job conditions. are reasonably treated and are guarantee do our * paid a life pay Virgin Atlantic presently serves Fairtrade tea and java onboard all flights and in our Clubhouses. and we hope to widen this to other Fairtrade merchandises in the hereafter.

13

Customers
Target: 100 % of our selling stuffs will be printed on recycled paper or paper from sustainable beginnings by 2008 We already use recycled and/or
sustainably sourced paper for most of our selling stuffs. and we have besides been experimenting with biodegradable laminates and other advanced merchandises. Our mark is to guarantee we can accomplish this criterion in all of our offices globally and of class support cut downing our usage of paper where possible. One illustration of this is our switch to eticketing. which we now use for approximately 99 % of our riders who book straight with us.

Target: Our purpose is to animate and authorise our clients on the issue of climate alteration. We will make this by supplying information. offering the most sustainable service possible. and back uping clients to cut down their ain environmental impact.

One manner we are prosecuting our clients on clime alteration is through our Gold Standard C beginning strategy. where riders can countervail the C produced during their flight. online when they buy their ticket. or onboard when they buy their responsibility free. We have calculated the exact emanations each rider is responsible for. in each category. on each of our flights and had this verified by an independent organic structure. We are working with a charity called myclimate to guarantee our riders money goes towards back uping Gold Standard renewable energy undertakings. which non merely vouch the C is offset but besides that the local community and local environment benefit excessively. Our strategy will guarantee the bulk of our customer’s fiscal part will make the undertakings Another manner we engage our clients is through our web site. where we aim to supply the latest information on clime alteration and what we are making to cut down our footmark. In the hereafter. we’ll besides be adding tips for clients on how they can cut down their ain C footmarks. and have fun at the same clip.

14

Staff
At Virgin Atlantic we’re ever lament to affect our staff and we recognise they are polar in accomplishing our environmental marks. So to prosecute and animate them about all things environmental. we’ve been set abouting a figure of cardinal enterprises. We presently produce regular staff communications on the
activities outlined in this policy and on cardinal environmental issues. We besides provide employees with tonss of information about how they can actively cut down their ain footmark both at place and in the office. Plus. we will be enrolling title-holders from each concern country to assist us acquire staff interested and aroused and accomplish our marks on the land. We’ve besides been inquiring people for their thoughts on how they think we can outdo cut down our footmark in their country of the business…some have been somewhat off the wall. many have been great. but all of them have been really insightful!

15

With a small aid from our friends
We are delighted that our attack to environmental issues is being supported across the whole scope of Virgin Atlantic services. Not merely does Sir Richard Branson agree with the focal point and gait of our environmental enterprises. but our programme of alteration is supported by our Chief Executive. Chief Financial Officer and Chief Operating Officer. This policy and our marks have been agreed between Senior Managers and Directors. and it is now the duty of all concern countries to take up the challenge and play their portion in bettering Virgin Atlantic’s environmental public presentation. With the support of riders and staff. we’re confident that the ambitious marks we’ve set can be met. and that Virgin Atlantic will go the most sustainable air hose in the universe.