Management

Strategic management and corporate governance

FMG has defined targets within its five strategic fields of action, geared toward sustainable corporate development.These targets take the form of specific initiatives and measures within the sustainability program. While the Executive Board and divisions are responsible for achieving these targets, all first and second-tier managers are responsible for implementing them. Manager remuneration then contains a variable element calculated according to the success of the initiatives and measures. FMG monitors target achievement in an internal management report prepared on a quarterly basis. This approach aims to ensure that the strategic targets are incorporated into day-to-day work.

Sustainability managementGRI 102-43; 102-44; 102-46; 102-47

Identifying and integrating key issues

As a «corporate citizen», i.e. a company that consciously acts in a responsible manner towards society, Munich Airport is always looking to pick up on issues of importance to its stakeholder groups. 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 its own concerns as well as into the strategic planning and operational implementation. Using a materiality process, FMG identifies and prioritizes the issues that are important to external stakeholders and airport 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.

The Group-wide materiality analysis is based on the principles defined by 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 the sustainable development of the Group. In 2017, internal and external stakeholders’ top priorities were customer focus, air traffic development, air traffic safety, digitalization, as well as employee training and recruitment. The assessments of internal stakeholders regarding the key issues have changed little compared to the previous year. Deviating priorities assigned by external stakeholders are due to the significantly expanded sample taken.

Materiality matrix

(Move your mouse over the different capital icons in the grid.)

Materiality process

1. Identification: FMG conducts an annual survey of its main stakeholder groups and FMG management when it publishes its integrated report. It also uses the results of internal scenario analyses to understand the business model in the broader context of a sustainable approach to development.

2. Prioritization: The results of the annual stakeholder and FMG management survey are presented in a materiality matrix with two equivalent axes, which represent the importance of the individual issues for internal and external stakeholders. These issues are then discussed with experts within the company, and content is allocated to the strategic fields of action. The issues are also incorporated into the targets process. In 2017, FMG integrated selected key topics into the external brand survey for the first time. The number of people surveyed thus tripled compared to the previous year.

3. Validation: Members of the management team discuss the relevant issues 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.

Munich Airport is contributing to the Sustainable Development Goals

In 2015, the United Nations adopted 17 Sustainable Development Goals (SDGs). Politicians and businesses around the world have been called upon to transfer these SDGs into their fields of action and make a key contribution to achieving them through, for example, innovation, pioneering technology and responsible supply chains by the year 2030. The airport wants to show the influence its business activities have on the SDGs and how it can make a positive contribution to achieving the Sustainable Development Goals in the future through its strategic projects. To this end, FMG first identified the goals that are relevant to it and that it can influence. In 2017, another goal was added to the eleven identified: With SDG 11 «Sustainable cities and communities», sustainability is also taken into account in the realization of strategic building projects on the airport campus.

The Sustainable Development Goals (SDGs) relevant for Munich Airport

  Significance Material topics Initiatives

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. 

  • Introducing a process for recording and assessing employee satisfaction related to occupational health and safety
  • Using innovative lifting aids in the baggage transportation system in Terminal 1
  • Establishing a central staff qualification management structure, for instance designing training measures for foreign assignments and designing online training modules for safety instructions
  • Making improvements to the fields of occupational medical services and in-house health management, for example with the »Pro.Fit« project for the airport’s firefighting service, the »AufWind« musculoskeletal program, and the BETSI program

  • Designing a Group-wide program of measures for the systematic assessment of risks presented by hazardous substances (simple measures program issued by the Federal Institute of Occupational Safety and Health)

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. 

  • Enhancing product-based and methodological skills using a special training program for project managers and consultants
  • Redesigning the Airport Academy at AirSite West
  • Developing a consulting center of excellence

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. 

  • Making sure that men and women enjoy equal opportunities at management level within the Munich Airport Group

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.

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.  

  • Introducing pre-conditioned air systems
  • Integrating new measures into the Green IT implementation program on an ongoing basis

  • Procuring new IT equipment, integrating the latest Energy Star or TCO requirements catalogs, and giving higher priority to energy-saving devices when choosing products in order to continually reduce consumption
  • Procuring hydroelectric power from the Uppenborn plants
  • Procuring green power for customers in Scope 3
  • Improving energy efficiency in existing resources

  • Developing a concept to make more use of renewable energy from photovoltaic systems
  • Converting the external lighting and apron lighting to LED technology
  • E-mobility: Expanding charging infrastructure and procuring more electric vehicles- CO2-Developing a carbon charter with specifications and guidelines
  • Developing a carbon charter with specifications and guidelines

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. 

  • Introducing a process for recording and assessing employee satisfaction related to occupational health and safety
  • Using innovative lifting aids in the baggage transportation system in Terminal 1
  • Establishing a central staff qualification management structure, for instance designing training measures for foreign assignments and designing online training modules for safety instructions
  • Making improvements to the fields of occupational medical services and in-house health management, for example with the »Pro.Fit« project for the airport’s firefighting service, the »AufWind« musculoskeletal program, and the BETSI program

  • Designing a Group-wide program of measures for the systematic assessment of risks presented by hazardous substances (simple hazardous substance measures issued by the Federal Institute for Occupational Safety and Health)

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.

  • Certifying selected buildings according to the standards of the German Sustainable Building Council (DGNB)
  • Expanding the five-star airport hotel (Hilton) in the AirSite Center

  • AirSite West – property development for an automobile airport service
  • West 0 transportation hub
  • Creating affordable homes for FMG employees in liaison with the communities in the region
  • Building a new Group data center with the aim of achieving carbon neutrality
  • 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)
  • Integrating the strategic landside transportation concepts and products (rail, inter-city buses, car sharing) into the long-term parking needs concepts
  • Developing and implementing an application concept for new passenger information technology

  • Implementing delay code analyses (analyses to determine the reasons for air traffic delays)

  • Conducting total airport management at Munich Airport (turn-around and traffic flow management process)

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.

  • Supporting the Neufahrner Kurve project
  • Supporting the planning approval process for the Erdinger Ringschluss (airport–town of Erding)
  • Ensuring the route 38 extension project between Munich, Mühldorf, and Freilassing as part of the new Federal Transport Infrastructure Plan
  • Erdinger Ringschluss project: constructing the first section to Schwaig
  • Supporting the Walpertskirchener Spange project

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. 

  • Continuing to integrate sustainability criteria into supplier management

  • Providing information for suppliers / service providers (for example, creating information flyers for potential suppliers and service providers from the region)
  • Fostering transparency in existing supplier and service relationships (recording and publishing details of FMG sales in the region)
  • Continuing existing sponsorship agreements, examining new project requests on the basis of the FMG sponsorship principles, and continuing intensive dialog with sponsorship partners
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. 
  • Introducing pre-conditioned air systems
  • Integrating new measures into the Green IT implementation program on an ongoing basis

  • Procuring new IT equipment, integrating the latest Energy Star or TCO requirements catalogs, and giving higher priority to energy-saving devices when choosing products in order to continually reduce consumption
  • Procuring hydroelectric power from the Uppenborn plants
  • Procuring green power for customers in Scope 3
  • Improving energy efficiency in existing resources
  • Developing a concept to make more use of renewable energy from photovoltaic systems
  • Converting the external lighting and apron lighting to LED technology
  •  E-mobility: Expanding charging infrastructure and procuring more electric vehicles- CO2-Developing a carbon charter with specifications and guidelines

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. 

  • Voluntary butterfly project within the framework of the Bavarian Environmental Pact (developing and implementing species protection measures for selected butterfly species on FMG areas)

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.

  • Fostering transparency in existing supplier and service relationships (recording and publishing details of FMG sales in the region)
  • Continuing existing sponsorship agreements, examining new project requests on the basis of the FMG sponsorship principles, and continuing intensive dialog with sponsorship partners
  • Developing the sales organization
  • Investing in consulting firms / forming joint ventures
  • Presenting consulting services at other sites and preparing tenders
  • Establishing a customer relationship management tool for off-campus business
  • Documenting and implementing off-campus processes
  • Providing product descriptions for off-campus consultancy and management services

Transparency through dialogGRI 102-40; 102-42; 102-43

Munich Airport’s brand message is «Living ideas – Connecting lives». Working with all stakeholders is the only way for the company to tackle upcoming challenges and successfully shape its future. FMG applies a three-stage approach to stakeholder dialog, thereby encouraging transparency and increasing social acceptance.

Stage 1: customized information on target-group-specific channels

For the information of the various interest groups, the airport has defined customized communication content and developed the appropriate communication formats. The integrated report, which FMG is now publishing for the eightth time, is an important tool in this regard. It brings together financial and sustainability reporting within a central publication and addresses all target groups.

Stage 2: exchange and collection of stakeholder feedback

The airport engages its stakeholders in discussions and decisions regarding issues that are of importance to them, thus creating the basis for trust and long-term acceptance. Via the reader survey, for example, the airport checks on the acceptance of the integrated report every year and determines the significance of key issues for stakeholders.

Stage 3: the results of dialog flow into business operations

Finally, Munich Airport also takes into account stakeholder feedback in relation to its business activities. Its stakeholders force FMG to confront new issues and thereby act as a mirror of society. This in turn makes it possible to identify issues and trends at an early stage, benefit from outside knowledge, communicate the company’s stance, and defuse conflicts.

Stakeholder dialog

Environment

Central stakeholder groups
Airlines, business partners, the media, employees, passengers, visitors, politicians, authorities, the region, associations, and organizations

Examples of central stakeholder groups
Local residents, potential business partners, end customers, shareholders, society/the public, real estate sector, interested parties, suppliers, air traffic industry, lessees, ministries, lease holders, regional economy, academic institutions, and research

Communication channels

Online

Public relations work

  • Publications (for example the integrated report)
  • Press events and press releases
  • Marketing partnerships
  • Airport tours
  • Visitors Park
  • Airport Days

Dialog

  • Conferences, meetings
  • Trade fairs
  • Works meetings
  • Employee survey
  • Employee meetings
  • Passenger survey
  • Terminal services, InfoGate counters
  • Dialog management
  • «Regional Liaison Office»
  • «Political Affairs»
  • Parliamentary evenings

Committees

  • Expert talks and specialist discussions
  • Working groups and committees
  • Communities Council
  • Aircraft noise commission
  • Airport forum
  • Airports Council International (ACI)
  • German Airports Association (ADV)

Examples

Public relations

Corporate Communications shares the latest information on the social media channels of Facebook, Twitter, Instagram and YouTube, in the style appropriate for each online platform. The top stories for 2017, for example the airport's anniversary celebrations and the parting of Air Berlin, resonated well with the fans and followers of Munich Airport.

Media

FMG’s press office regularly and quickly updates the media on the latest developments. The 25th anniversary was the standout media event of 2017 and offered many opportunities to push the airport's success story into the media limelight. Much attention was also paid to the annual press conference in March 2017, where the company discussed the dynamic growth in traffic and its strong economic performance.

Region

Good cooperation with the region is essential if Munich Airport is to be successful, and the Regional Liaison Office is responsible for this. As a support office, it reports directly to the Executive Board and sees itself as a kind of bridge-builder between the airport and the region. For the municipalities, political decision-makers, institutions and citizens, the Regional Liaison Office is the first port of call for questions relating to the airport.

Sponsorship activities in Munich

In 2017, in addition to FC Bayern Basketball, Midsummer Night’s Dream in the Olympiapark and the Munich Marathon, FMG supported more than 20 other flagship projects from the fields of sport, the arts and culture in the state's capital. Through this effective presence, Munich Airport is pushing even closer to the city of Munich and is thus meeting its responsibilities to it.

Picture: FC Bayern Basketball
Sports partnership: The airport is a premium partner of the Bundesliga team FC Bayern Basketball.

The week of celebrations for the 25th anniversary of Munich Airport was a huge success, with more than 50,000 visitors in total. More than 20,000 visitors attended each of the Family Days on the Saturday and Sunday, to admire close-up the interesting aircraft parked on the specially opened apron, such as a NATO AWACS or the historic Douglas DC-6B. Before that, more than 10,000 guests had celebrated the Music Days held at the airport.

[Translate to English:] Foto: Festwoche

Making an impression with quality GRI 102-43; 102-44

Munich Airport is particularly well-known for the quality of its services. These high standards apply across all areas – in the core business of aviation as much as in the consumer business and internal processes.

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

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

Airport Service Quality (ASQ): making service quality visible

Munich Airport is one of more than 310 airports worldwide that regularly takes part in the ASQ 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 2017, Munich Airport took third place in the category for European airports with more than 40 million passengers.

5 star airport: title successfully defended

In 2017, the London-based aviation research institute Skytrax once again named Munich Airport as Europe’s only  5 star airport, making it part of an exclusive group of just six airports in the world to carry this premium mark of approval. In particular, it was the commitment, friendliness and expertise of the airport staff that contributed to the airport receiving this award once again. In addition to hospitality, the evaluation criteria included ambiance and comfort, services, processes, and orientation.

Skytrax: T2 is the world's best passenger terminal

Munich Airport was named Europe's best airport at the «Skytrax World Airport Awards 2017». Terminal 2, which was used by 30 million passengers in the reporting year, received the highest accolade of best passenger terminal in the world. The airport took fourth place in the global ranking. More than 13 million passengers from 105 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.

Service and hospitality: maintaining and optimizing service quality

Tailor-made service and hospitality training and workshops raise the operational heads' awareness of customer contact and emphasize their role as ambassadors for the service culture in the relevant divisions. 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 the 5-star airline Deutsche Lufthansa, and the authorities active at the airport.

Dialog management: dealing with feedback professionally

The central dialog management team quickly responds to, categorizes and analyzes all customer feedback on a case-by-case basis. It records not just complaints, but also constructive criticism and positive feedback. In order to elaborate optimal process solutions for passengers and, if required, to develop improvements, the divisions, authorities and system partners active all along the passenger experience chain are closely networked with one another. In 2017, Munich Airport recorded 55 complaints per one million passengers handled.

Dialog management

Number of complaints on key issues

Certified quality management: creating effective processes

The quality management system launched at Munich Airport on the basis of the international standard DIN EN ISO 9001:2008 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.

Employees as brand ambassadors

Strong brands have a positive impact on company success. They are shaped, inter alia, by direct staff contact with customers and partners. For this reason, the Munich Airport Group places great value on anchoring the brand values and attributes more firmly across the Group. According to an in-house brand survey 1), 80 percent of staff knew what the brand «M» stands for and its significance for their daily work. This positivity has also reached the airport's customers 2): 64 percent perceived Munich Airport to be particularly customer-focused. 47 percent stated that the customer experience at Munich Airport is significantly better than at other airports. Its identity as a premium airport with a Bavarian core also cultivated a strong emotional connection for passengers: 60 percent named Munch Airport as their «favorite airport», while 70 percent perceive «M» as a trustworthy brand. «InnovationPilot», Munich Airport's crowd-sourcing platform, introduced in 2016, also reflects this closeness to the airport. After just three ideas campaigns, more than 1,300 users have already registered for joint brainstorming, while 67 percent perceived a positive development in offerings at the airport.

1) Employee survey 2017, Cubia AG
2) External brand study 2017, IMPACT IRC

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