Global trends: impacts on the environment Transport Richard Brown, Chief Executive, Eurostar 29 April 2009

216/04/2015 Travel in the 21 st century Overwhelming evidence that climate change is occurring The transport industry has a fundamental duty to reduce its environmental impact, accounting for roundly one quarter of the UK’s greenhouse gas emissions Nicholas Stern’s Review warns that –‘Transport is also expected to be one of the fastest growing sectors in the future. For these two reasons, studies tend to find that transport will be among the last sectors to bring its emissions down below current levels.’ Transport will have to play its full part in substantially reducing these if UK to achieve the Government’s 80% cut in emissions by 2050 as per the 2008 Climate Change Act Despite economic context this is a time for action and a time for change

316/04/2015 Moving Forward Three strategies needed Reducing the need to travel and transport goods; in effect breaking the historic link between rising prosperity and ever increasing travel demand –greater walking and cycling for short trips –range of travel ‘substitutes’ such as home working and video conferencing –car clubs, shared taxis Ensuring that each mode of transport increases its carbon efficiency dramatically Ensuring that wherever possible travel and transport uses the most carbon efficient mode

416/04/2015 Consumers are taking the initiative in looking for solutions; looking for ways to minimise their carbon footprint when they travel Recent (Feb 2009) Eurostar consumer survey data shows: –at least half the public across France (56%), Belgium (50%) and the UK (54%) say their commitment to reducing emmissions is unaffected by the economic downturn –For holiday travel 37% in Belgium, 39% in France and 48% in the UK take the environmental impact into account before booking –More than 70% of consumers feel businesses need to do more than simple box-ticking Corporate customers encouraging modal shift e.g. from plane to train to ensure reduced emissions in CSR reports Increase in high speed lines internationally and partnerships such as Railteam are a response to emerging travel trends and consumer aspirations Consumer Demand

516/04/2015 The Tread Lightly Initiative Eurostar commissioned research which showed a journey on Eurostar generates x10 less CO² than flying to Paris/Brussels In April 2007 Eurostar pledged to cut its CO² emissions by 25% per traveller journey by 2012 Ten-Point company wide plan to reduce the environmental impact of Eurostar operations From November – Eurostar make all journeys ‘carbon neutral’, “off-setting” CO² that is not reduced Channel Tunnel Energy supplier change from UK to France assist Eurostar to achieve a 31% reduction in CO² emissions Eurostar raises reduction target to 35%

616/04/2015 Conclusion Transport and travel businesses have an absolute duty to reduce emissions Consumers are ahead of businesses, and businesses are ahead of Governments Need to reduce the need to travel and find workable substitutes High Speed rail is a far less carbon intensive form of travel – growth in high speed rail and consequent modal shift will help to drive CO² emissions down across Europe On top of inherent carbon advantage – businesses should be striving to lighten their impact on the environment