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Management

Audited by KPMG

Sustainable corporate governance

Munich Airport is fully committed to its economic, ecological, and social obligations, which are inextricably linked with corporate policy. Sustainable business is therefore an integral part of corporate strategy.

Carbon-neutrality by 2030 is one of Munich Airport’s strategic objectives.

Materiality process: identifying and integrating topics

Munich Airport acts as a «corporate citizen» within society, consciously acting in a responsible manner and always looking to address topics and concerns of importance to its stakeholders. It welcomes dialog as an opportunity to continue developing its corporate policy, focused on sustainability. The company’s sustainability management incorporates the concerns of the stakeholders into the strategic planning and operational implementation. Using a materiality process, FMG identifies and prioritizes the topics that are important to external stakeholders and Group employees. Existing in-house processes and methods are linked to the internal strategy process for this purpose. FMG has set itself the goal of continuously improving processes, particularly with respect to the assessment and measurability of internal and external impact.

  • Security and safety in aviation
    • Obtaining operating license by promptly submitting the necessary proof and documentation
    • Application of the latest safety standards and experience in their implementation
    • Maximum security instills confidence
  • Digitalization
    • Digital offering opens up new lines of business
    • The airport’s ongoing digital development is broadening the company’s in-house expertise
    • Company is contributing to digital progress
  • Customer focus
    • Customer focus creates incentives to purchase, for example, increasing customer loyalty and thus helping to boost the business’ cost-effectiveness
    • Customers benefit from an offering tailored to their needs
  • Employee satisfaction
    • Fewer absences
    • Employees experience appreciation for their input, which motivates them and encourages loyalty to the company
    • Company is attractive to potential external applicants
  • Collaborating with regional partners (e.g. sponsorship)
    • Group-wide procurement in 132 product groups
    • Short delivery routes help to reduce emissions
    • Support for the regional economy and contribution to value creation in the region
  • Bilateral communication with social stakeholders (in particular regional groups) 1
    • Positive perception and thus greater acceptance in the region
  • Equal opportunities and cultural diversity
    • All employees are treated equally regardless of their age, gender, and background, and receive the same opportunities and salaries
    • Equality and promotion of diversity at the workplace support integration into society
  • Noise emissions and noise control
    • Introduction of low-noise aircraft at MUC (e.g. Airbus A350), noise-dependent landing charges
    • Noise emissions impact the environment
    • Local residents are exposed to noise emissions
  • Compliance & Corporate Governance
    • Employees receive training on a binding framework of conduct. This increases their confidence in their actions. An electronic whistle-blower system is available
    • A corporate structure with clear responsibilities satisfies the expectations of the general public with regard to transparency and responsibility
  • Sustainable procurement
    • The Munich Airport Group’s total procurement volume is EUR 753 million
    • A party submitting a tender must provide proof that it complies with environmental management standards; short transportation distances to and from business partners from the region reduce CO2 emissions
    • The Munich Airport Group is supplied mainly by business partners from the region; 67 percent of the companies are from Bavaria
  • Occupational health and safety2
    • FMG invests in the occupational health and safety of its employees, enabling the number of days of absence and costs to be reduced
    • Employees benefit from a wide-ranging health program
  • Air traffic development
    • Growth in air traffic at the site has a positive impact on finances
    • Job preservation and creation
    • Environmental impact greater due to growth in air traffic
    • Society benefits from services to numerous destinations and the growing importance of the location
  • Training and skills management
    • Training costs (FMG’s external training budget: 3.2 million euro)
    • Overall growth in expertise at the company
    • Employees enhance their professional skills
  • Linking transportation operators (seamless travel)
    • Costs of new innovations
    • Positive impact on expertise due to innovative nature of the project
    • Seamless travel experience
  • Infrastructure and sustainable building
    • Costs of expansion
    • Income from rents and leasing
    • Further development of the airport campus makes it attractive as a base for companies and shops
    • There is an environmental impact, but this is reduced by sustainable building
  • Sustainable use of resources
    • Cost reduction due to sparing use of drinking water
    • Investments in building of process water wells and installation of ground biofiltration systems to protect groundwater
    • Reduced environmental impact
    • Avoidance and recycling of waste is a top priority
  • Greenhouse gas (CO2) and air pollutant emissions
    • Environment is harmed by operations; climate protection strategy significantly reduces environmental impact
    • Reduction of environmental impact benefits the region’s residents
  • Generational change
    • Transfer of knowledge and skills into the next generation is essential
    • Young professionals gain profit from the knowledge and experience of their senior colleagues
  • Staff recruitment and training3
    • Corporate knowledge is shared and further developed by fresh impetus from external sources
    • Communities and districts in Bavaria benefit from the employment boom at the airport
    • Rising cost of living due to growing influx of people into the region
    • Applicants receive training and jobs
  • Landside access and traffic development
    • Costs of involvement in the measures
    • Better connections with the airport via road and rail
    • Environmental impact increasing due to higher traffic volumes
    • Society and businesses in neighboring towns, cities, and communities benefit from optimized infrastructure in the airport region
  • Biodiversity
    • Ecological diversity conserves nature and enhances the environment
    • Society benefits from equilibrium between environment and nature
  • Off-campus growth
    • Foundation of the FMG subsidiary MAI (Munich Airport International), which expands the International Consulting business segment with worldwide projects by FMG experts
    • The existing expertise is used and constantly enhanced through the gathering of experience, even outside the airport campus
significant for internal stakeholders
  • Low
  • Medium
  • High
  • Very high
significant for external stakeholders
  • Low
  • Medium
  • High
  • Very high

Move the mouse over the different capital icons and click on the topics within the matrix for more information.

1 Up to 2018: Communicating with social stakeholder groups

2 Up to 2018: Occupational health and safety and health management

3 Up to 2018: Employee training and recruitment

The Group-wide materiality analysis is based on the principles of the Global Reporting Initiative (GRI). It is an important tool for strategic sustainability management and provides the basis for the Executive Board to set the central parameters for sustainable development of the Group.

1. Identification: FMG conducts an annual survey of its main stakeholder groups and FMG management when it publishes its integrated report.

2. Prioritization: The results of this survey are presented in a materiality matrix with two equivalent axes, which represent the importance of the individual topics for internal and external stakeholders. These topics are discussed with experts within the company, and content is allocated to the strategic fields of action. The topics are also incorporated into the targets process.

3. Validation: Members of the management team discuss the relevant topics as part of the annual strategic target agreement process. The stakeholder survey also provides external feedback on the content of the integrated report. Fields of actions and targets are adapted, expanded, or incorporated for the first time.

4. Implementation: Specific initiatives and measures are outlined within the strategic sustainability program for each material topic as well as the progress made implementing these as a means of measuring success. Members of top management take responsibility for the sustainability program initiatives, while members of middle management are responsible for implementing the associated measures. Manager remuneration then contains a variable element calculated according to the success of these initiatives and measures. FMG uses internal reporting to check target achievement on a quarterly basis and ensures on this basis that the strategic objectives are actually implemented in practice.

Showing connectivity The key topics in the matrix correspond to the six forms of capital.

In addition to the classic materiality matrix, the importance of key topics of sustainable corporate governance were documented in 2019 from a customer’s perspective as part of an external study. In addition to topics such as «customer orientation», «aviation safety», and «digitalization», all of which had already been very high up on the agenda the previous year, the importance of the topic of «employee satisfaction» also increased among internal stakeholders in 2019.

The tower of Munich Airport in front of an orange-blue sky
The survey of stakeholders offers impetus for corporate decisions.

Brief interview

The principle of sustainability

Dr. Monica Streck laughing in front of a blurred backdrop in shades of grey
Dr. Monica Streck Head of Strategic Sustainability Management

Mrs. Streck, the new sustainability strategy of the ACI (Airports Council International) takes an integrated approach. What is new in it for Munich Airport?

Munich Airport has been adopting a holistic sustainability strategy for many years. We identify important issues for sustainable development, incorporate them in the management process, and then implement them. What is new is that the Airports Council International (ACI) is widening the term «sustainability» and focusing on social and economic issues in addition to ecological aspects.

The new sustainability strategy of the ACI also refers to the international SDGs of the UN. How does Munich Airport deal with this then?

Munich Airport’s sustainability strategy is also based on the UN objectives for sustainable development. It addresses global topics such as human rights or sustainable supply chains, supports international efforts for a sustainable future in this way, and culminates ultimately in specific measures to promote these goals. The sustainability program is therefore closely linked with fulfilling the twelve SDGs that are regarded relevant for Munich Airport.

Sustainable Development Goals: twelve of 17

Munich Airport supports the Sustainable Development Goals (SDGs) of the United Nations and contributes to their realization. FMG has identified twelve SDGs that are relevant to it and that it can influence, and which it wishes to work on through its strategic projects up to 2030.

  • Good Health and Well-being

    Meaning

    FMG has set itself the goal of continuing to improve occupational safety and, as a result, reduce accidents and the number of absences caused by accidents and sickness. To support them in their efforts in this area, the operating Occupational Safety team has been joined by the newly created Occupational Safety Management team.

    Material topic

    • Occupational health and safety management

    Measures

    • Design of a Group-wide program of measures for systematically assessing risks presented by hazardous substances (EMKG, Federal Institute for Occupational Safety and Health)
    • Establishing a central staff qualification management structure, for instance designing training measures for foreign assignments, designing online training modules for safety instructions
    • Robotics: Development of a concept for the automation of processes in the ground handling service, in cooperation with the Fraunhofer
    • Establish procedures for recording and evaluating employee satisfaction with regard to occupational health and safety
    • Using innovative lifting aids in the baggage transportation system in Terminal 1
    • Implementation of additional key management figures, design and rollout of new reporting
  • Quality Education

    Meaning

    FMG has long been providing its staff with options for further development, including via the airport’s very own training institute, the Airport Academy. The goal is to effectively promote personal and professional development based on employees’ individual needs.

    Material topic

    • Employee training and recruitment
    • Customer focus
    • Employee satisfaction
    • generational change

    Measures

    • Developing, operating, monitoring, and coordinating the Group-wide continuous improvement process (passenger satisfaction data, ASQ, dialog management, etc.)
    • Creation of succession programs and contemporary,requirements-oriented vocational training
    • Development of new training models for the Leadership Excellence Program
    • Support for cross-generational knowledge transfer through duplication of posts, training opportunities for employees with different levels of digital affinity
  • Gender Equality

    Meaning

    As a company with an international outlook, Munich Airport benefits from the diversity of its employees. It respects the cultural heritage of all of its employees, taking into account their diverse interests and needs. As an employer, FMG actively accepts responsibility toward all its employees and ensures equal opportunities and prospects at all levels. The promotion of women to management positions is an integral part of HR work.

    Material topic

    • Equal opportunities and cultural diversity

    Measures

    • Equal participation of men and women in management positions within the Munich Airport Group
  • Clean Water and Sanitation

    Meaning

    The aim of water management at Munich Airport is to affect the natural water balance as little as possible and arrange the various effects caused by water resource management, drainage, and the provision of drinking and extinguishing water so that they have as little impact as possible. This includes aspects like the treatment of de-icer and the airport’s handling groundwater. The certified environment management system documents the airport’s many environmental activities.

    Material topic

    • Sustainable use of resources

    Measures

    • Recertifying FMG according to EMAS and DIN EN ISO 14001
  • Affordable and Clean Energy

    Meaning

    Since it launched its initiative in 2008, FMG has been taking ambitious steps towards maintaining CO2 emissions at a level of around 160,000 t (taking 2005 as the base year) despite its expansion and growth in traffic. To achieve this, it is applying measures such as a block heat and power plant, which the airport uses to generate over half of its on-site energy requirements using environmentally-friendly natural gas. The increased use of photovoltaic plants on the campus is also helping to reduce CO2 emissions.

    Material topic

    • Greenhouse gas and air pollutant emissions

    Measures

    • Procurement of green electricity for customers in Scope 3
    • Expansion of photovoltaic systems at Munich Airport
    • Developing a concept to make more use of renewable energy from photovoltaic systems
    • E-mobility: Expanding charging infrastructure and procuring more electric vehicles
    • Converting the external lighting and apron lighting to LED technology
  • Decent Work and Economic Growth

    Meaning

    The airport’s business activities have a major impact on various areas and stakeholders: Munich, Bavaria, and Germany as business locations, the region and its inhabitants, the airport staff, and passengers, as well as other companies in and around the airport plus further stakeholder groups. The airport’s over-arching aim is to make sure its operations are sustainable.

    Munich Airport operates in the aviation, commercial activities, and real estate business areas. The service portfolio offered by the Group covers virtually all the services available at the airport campus – from air travel including passenger and cargo handling through to retailing, hotels and catering services. The goal is to ensure safe working conditions for employees in all areas of the business model.

    Material topic

    • Compliance and Corporate Governance
    • Infrastructure and sustainable building
    • Employee satisfaction
    • Employee training and recruiting

    Measures

    • Examination of human rights issues as part of the national action plan for business and human rights
    • Procurement of affordable living space for FMG employees in coordination with the municipalities of the region
    • Creating competitive employment conditions, for example through a bonus in respect of the income achieved or provision of accommodation for applicants and employees
    • Medium-term management of future personnel requirements and derivation of suitable measures, taking into consideration the potential from digitalization and process optimization, in order to remain successful and efficient despite a shortage of managers and demographics-related retirements
    • Use of new formats in HR marketing, for example better addressing of candidates and target group-specific recruitment campaigns
  • Industry, Innovation, and Infrastructure

    Meaning

    Strategy 2025 highlights key issues for the refinement of the business model, and sets the course for Munich Airport’s future growth. Flughafen München GmbH expands airport infrastructure based on need, networks various transportation operators, and extends the range of landside transport services – all while keeping quality and customer requirements at the heart of its work. Negative effects on the environment and the area around the airport are kept as low as possible, for example by applying extensive compensating and noise protection measures and by providing employees with an affordable place to live.

    Material topic

    • Compliance and Corporate Governance
    • Digitalization
    • Linking transportation operators (seamless travel)
    • Customer focus

    Measures

    • Development of innovations with the support of all Group units during market research and trend observation, evaluation and selection, as well as initiation and realization of ideas
    • Booking of service vehicles via app
    • Development of new digital products and services (for example, further development of the Passngr app, implementation of products, further development of the Wi-Fi portal)
    • Developing, operating, monitoring, and coordinating the Group-wide continuous improvement process (passenger satisfaction data, ASQ, dialog management, etc.)
    • Continuing and developing the quality and service offensive (5-star program)
    • Design and realization of new technologies for passenger information
  • Sustainable Cities and Communities

    Meaning

    As a hub for intermodal passenger transport, attractive and efficient road links and, in particular, rail links are of huge importance to Munich Airport. As a result, one of Munich Airport’s priorities is to offer appealing rail links for long-distance passenger services and for intermodal services combining rail and air travel.

    Material topic

    • Infrastructure and sustainable building
    • Linking transportation operators (seamless travel)

    Measures

    • Development of AirSite West and the northern development zone
    • Planning of Node West 0
    • Certifying selected buildings according to the standards of the German Sustainable Building Council (DGNB)
    • Procurement of affordable living space for FMG employees in coordination with the municipalities of the region
    • Further development of the urban concept, LabCampus, and implementation of the LabCampus construction works (for example Airport Academy)
    • Supporting the planning approval process for the Erding ring closure (airport–Erding)
    • Erding ring closure: constructing first section to Schwaig
    • Supporting the «Walpertskirchener Spange» project (planning approval process was initiated in March 2019)
    • Establishment of structures to create networked campus mobility
  • Responsible Consumption and Production

    Meaning

    When it comes to using resources, Munich Airport's strategy for using natural resources is based on a respectful and economical approach, while showing a sense of responsibility toward future generations. Supplier management plays a major role in this strategy.

    Material topic

    • Sustainable use of resources
    • Sustainable procurement

    Measures

    • Recertifying FMG according to EMAS and DIN EN ISO 14001
    • Continuing to integrate sustainability criteria into supplier management
    • Providing information for suppliers/service providers (for example, creating information fliers for potential suppliers and service providers from the region)
    • Recording and publishing details of FMG sales in the region
  • Climate Action

    Meaning

    The airport has once again significantly tightened its climate-related goals: The airport is intending to make its operations completely carbon-neutral by 2030. To achieve this, the Munich Airport Group is aiming to reduce the greenhouse gas emissions that can be attributed directly to its operations by 60 percent using a wide array of technical measures. It is no longer possible for technology to have a major impact on the other 40 percent of these emissions.

    Material topic

    • Greenhouse gas (CO2) and air pollutant emissions
    • Infrastructure and sustainable building

    Measures

    • Conceptual design of the Net Zero Carbon Initiative of the ACI
    • E-mobility: Expanding charging infrastructure and procuring more electric vehicles
    • Improving energy efficiency in existing stock
    • New construction of a Group computer center taking carbon neutrality into consideration
  • Life on Land

    Meaning

    As the operator of a major piece of infrastructure, Munich Airport is aware of its responsibility for the environment. Its aim is to keep its impact on nature and the environment as low as possible in the interest of future generations, too. Integrating Munich Airport into its environment in the best possible way has therefore been one of the goals of the planning concept right from the start.
    Around two thirds of the area within the airport’s perimeters are currently used for green space. The airport meadows next to the two runways play a central role in conserving rare species of plants and animals.

    Material topic

    • Biodiversity
    • Security and safety in aviation

    Measures

    • Developing and implementing a voluntary butterfly project within the framework of the Bavarian Environmental Pact (developing and implementing species protection measures for selected butterfly species on FMG areas)
    • Implementing measures from the «environmental protection public concept », for example, reports on mobile measurement campaigns (noise and air), publication of brochures on environmental topics, as well as participation in events such as BayernTourNatur and Münchner Nacht der Umwelt
    • Preventing potential collisions using sophisticated biotope management, for example by adjusting the mowing plan
  • Partnerships for the Goals

    Meaning

    Good cooperation with the region is essential if Munich Airport is to succeed. Ongoing dialog with all social groups involved is the only way to ensure sustainable development. In light of this, we therefore converse with all our stakeholders on an ongoing basis– including those within the company itself as well as those at a local, regional, national, and international level. As a responsible neighbor, FMG has spent more than 20 years supporting various institutions and initiatives in its local region that reach large groups of people and have a sustainable impact.

    Material topic

    • Bilateral communication with social stakeholder groups
    • Security and safety in aviation
    • Collaborating with regional partners

    Measures

    • Participation in research activities within the airport consortium SEAC 2020
    • Lobbying of the German Airports Association (ADV), the German Aviation Association (BDL), and the Airports Council International (ACI); collaboration with ACI Europe as an example: actively contributing to the ACI sustainability strategy
    • Maintaining the increased levels of PR work in Munich
    • Speaking personally to local and political representatives in the airport region
    • Regular publication of political letters (topics, backgrounds)
    • Organization and convening of parliamentary evenings
    • Continuing existing sponsorship agreements, examining new project requests on the basis of the FMG sponsorship principles and continuing intensive dialog with the sponsorship partners

Concept for stakeholder engagement

FMG follows a three-stage approach to stakeholder dialog, thereby encouraging transparency and social acceptance. Working with all stakeholders is the only way for the company to tackle upcoming challenges.

Concept of dialogue for all key stakeholder groups

Quality makes the difference

Munich Airport is particularly well known for the quality of the services it offers. These high standards apply across all areas – in the core business of aviation as much as in the consumer business and internal processes. Maintaining a 5-star standing is a key business objective.

Top class on a global level

Munich Airport is the only 5 star airport in Europe and one of only eleven airports globally allowed to bear this seal of approval. At the annual «World Airport Awards» presented by Skytrax, Munich Airport successfully defended its title of «Best airport in Europe» once more in 2019. In addition, it was again selected as the best airport in the world in the size class of between 40 and 50 million passengers; meanwhile, Terminal 2 was rated third best terminal in the world. The hotels on offer are also first class – in 2019 the Hilton Munich Airport came second in the category «Best Airport Hotels in Europe» and fourth in the category «World’s Best Airport Hotels». Just under 14 million passengers from more than 100 countries rated 550 international airports and numerous airlines for the survey. They considered criteria such as the friendliness and expertise of airport staff, the range of shopping and leisure outlets, and transfer options. Munich Airport is one of more than 356 airports worldwide that regularly takes part in the survey on service quality initiated by the international airport association ACI (Airports Council International). As a result, it can compare itself to the best hubs in Europe. In 2019, Munich Airport ranked third place once more in the category for central European airports with more than 40 million passengers.

5-Star-Airport, M with 5 stars below

The «M» is a seal of quality.

Brief interview

The brand «M»

Andreas Mauer in a blue suit looks friendly into the camera in front of a blurred scenery in shades of grey
Andreas Mauer Head of Brand Management and Innovation

Mr. Mauer, where does the brand «M» stand in terms of its development?

The brand defines our identity, the values we stand for, and represents a yardstick by which we want to be measured – by our customers too. The Group accordingly focuses on fostering identification, customer orientation, exchange, and cohesion as a key priority.

Where is there still a need for development in your view?

A brand is not a rigid construct, it has to develop with the Group, with the expectations of customers, and with external requirements. What is really important to remember is that this can only be achieved through cooperation, with a clearly defined focus, and only if we work together as a team in the company, if we bring passion and enthusiasm for the airport to life, and make decisions in the best interests of our customers. «Living ideas – Connecting lives», that is the core of our brand.

Passenger Experience Index (PEI): measuring quality and managing measures

Passenger satisfaction is of central importance to Munich Airport. A survey developed in-house provides information on how comfortable passengers feel in the airport and what they think of the quality of the services provided. The PEI has been established as one of the non-financial key performance indicators in the airport’s targets system, and it allows FMG to derive fields of action that sustainably improve the passenger experience.

Service and hospitality: maintaining and optimizing standards

Tailor-made training courses and workshops on the subject of service and hospitality raise awareness of customer contact among operational heads and emphasize their role as ambassadors for the service culture. FMG thus encourages an awareness of customer orientation and the role model function within the airport family. This community encompasses not just the Group, but also all partners based on the campus, such as Deutsche Lufthansa AG, and the authorities active at the airport.

Certified quality management: creating effective processes

The quality management system launched at Munich Airport on the basis of the DIN EN ISO 9001:2015 international standard establishes structures that support the evaluation and improvement of processes. By optimizing its processes on an ongoing basis, Munich Airport has successfully established itself and its high quality standards on the market.

A bird's eye view of the turbulent activity under the orange roofs of the Christmas and winter markets at the airport
Emotional highlight: the popular Christmas and winter market
Airports Council International (ACI)
An international organization, headquartered in Montreal, which represents airport operators. More than 1,900 airports in almost all of the countries in the world are ACI members, including more than 500 airports in 46 European countries.
Global Reporting Initiative (GRI)
An independent institution that publishes globally recognized guidelines on sustainability reporting. The GRI standards create a shared language for organizations and stakeholders that can be used to communicate and understand the economic, environmental, and social impacts of organizations. Its aim is to establish a common baseline for communication and to ensure the comparability of sustainability reports.

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