Deutsche Lufthansa

RATING

SECTOR

Transportation

WEBSITE

CONTACT

Von-Gablenz-Strasse 2-6
D-50679 Cologne, 21
Germany

Telephone: (49) 69-696-0
Toll Free: 800-645-3880
Fax: (49) 69-696-6818

STOCK EXCHANGE

LISTING

2018 #7 Best Airline in the World by Skytrax

EMPLOYEES

138,353

CHIEF SUSTAINABILITY OFFICER

Annette Mann

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Deutsche Lufthansa

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

 

Company Activity

Deutsche Lufthansa AG engages in the provision of passenger, freight, and cargo airline services. It operates through the following segments: Network Airlines, Eurowings, Logistics, Maintenance Repair Overhaul, Catering, and Additional Businesses and Group Functions. 

The Network Airlines segment comprises Lufthansa German Airlines, SWISS, and Austrian Airlines. The Eurowings segment focuses on the growing market for european direct sales. The Logistics segment consists of scheduled airfreight activities of the Lufthansa Cargo group. The Maintenance Repair Overhaul segment is involved in the provision of maintenance, repair, and overhaul services for civilian commercial aircraft. The Catering segment is engaged in providing airline catering.

The company was founded on January 6, 1926 and is headquartered in Cologne, Germany.

Company Sustainability Activity

Sustainable and responsible entrepreneurial practice is an integral part of Lufthansa’s corporate strategy. They are committed to creating added value for customers, employees and investors and to meeting their responsibilities toward the environment and society.

For these reasons, they continuously improve their measures to safeguard the climate and the environment, maintain responsible and fair relations with their employees, and as a company actively engage in numerous social concerns.

The international economy and the air transport industry, in particular, operate in a dynamic environment that is defined by long-term megatrends and global challenges, such as population growth and the rise of megacities, increasing demand for mobility in the context of increasing globalization, climate change and processes of political transition.

The Lufthansa Group meets these challenges with a comprehensive sustainability agenda. It comprises the following fields of entrepreneurial responsibility:

  • Economic Sustainability
  • Corporate Governance and compliance
  • Climate and Environmental Responsibility
  • Social Responsibility
  • Product Responsibility
  • Corporate Citizenship

Highlights

  • In 2011 Lufthansa became the first airline worldwide to test the use of biosynthetic fuel for about six months under regular operating conditions. Lufthansa demonstrated that alternative fuel can be used in everyday operations without problems, lowering CO2 emissions at the same time.
  • In 2013 The Lufthansa Group and the German Armed Forces Research Institute for Materials, Fuels and Lubricants started the EU research project “Blending Study.” In this project, important insights were gained concerning the blending properties of conventional fossil fuels and different new bio-kerosene.
  • In 2016 The Lufthansa Group refueled its aircraft at Oslo Airport with a fuel mix containing 5 percent alternative fuel. A total of about 5,000 flights were operated with this blend.
  • In 2019 Lufthansa and the Refinery Heide signed a joint declaration of intent concerning the future production and acceptance of synthetic kerosene that is to be produced with electricity generated by wind power.
  • Since 2006, the participants of Europe’s leading frequent flyer and awards program, Miles & More, have been able to donate award miles to charitable causes through the initiative “Miles to Help”. 
  • The Lufthansa Group offers its customers the option to compensate on a voluntary basis a large part of the CO2 emissions that are unavoidably caused by their flights and thus to make a personal contribution to climate protection. Since 2007, Lufthansa and SWISS have cooperated with the climate protection foundation myclimate for this purpose.
 

Targets

  • Fuel efficiency is to be increased by 1.5 percent per year by 2020
  • From 2020, growth in civil aviation is to be realized in CO2-neutral ways
  • By 2050, the net-CO2 emissions of civil aviation are to decline by 50 percent, compared with 2005.

Progress

Environmental Concerns

  • Continuous investment in modern, particularly fuel-efficient aircraft and engine technologies – in 2019, the Lufthansa Group took delivery of 27 new aircraft that emit up to 25% less emissions than comparable aircraft types
  • Participation in research and the use of alternative fuels, e.g. signing a declaration of intent with the Heide refinery to purchase environmentally-friendly synthetic kerosene and a declaration of support for the PtX initiative, together with the State of Brandenburg and a number of reading companies and research institutes
  • 21 fuel-saving projects under way in 2019 leading to an avoidance of 24.5 thousand tonnes of CO2 emissions and a saving of 9.7 million liters of kerosene
  • All CO2 emissions caused by employees’ business flights have been offset
  • Extended compensation offer for customers using the platform Compensaid implemented – a voluntary carbon offsetting by making a donation either through the purchase of Sustainable Aviation Fuel or from other selectable climate projects
  • A total of over 181 thousand tonnes of CO2 were offset in 2019 – almost 151 thousand tonnes of these directly by the Lufthansa Group
  • Timely shift to renewable electricity and ensuring carbon-neutral mobility on the ground by 2030 at all Lufthansa Group locations in Germany, Austria and Switzerland has been determined as a measure
  • 99.6% of the operational Group fleet meet or exceed the ten decibel criterion set y the ICAo Chapter 4 standard
  • Almost 6 tonnes of new plastic saved by using 100% recycled PET water bottles at Eurowinds
  • Since January 1, 2019 all official air travel for Lufthansa Group staff is now CO2 -neutral. The Group compensates these CO2 emissions through myclimate as well. Furthermore, the Lufthansa Group is developing similar offers for its distribution customers and has already launched a successful test run.

Customers

  • The punctuality of the Lufthansa Group airline increased from 71% to 76% (annual average)
  • Net Promoter Score of 57 for the Network Airlines attests to a high customer satisfaction
  • 241 short- and medium-haul aircrafts are equipped with broad-band network

Employees

  • Good Engagement Index of 2.2 was reported and is now once more on a par with similar companies in Germany
  • Health Index remained on a par with the previous year at 2.3 
  • All Lufthansa Group employees have access to more than 17,000 innovative learning offers from LinkedIn Learning via an in-house learning platform that supplements the existing training offers
  • 500 Lufthansa Cabin Crew members earned the professional qualification of the new occupational profile “Service Manager Professional” in 2019 – another 1,000 are currently in training
  • Cloud-based office software was successfully rolled out for 45,000 Lufthansa Group administrative staff which supports the main building blocks of mobility and flexibility of future working environment

Social Concerns

  • Extension of engagement by their new collaborative projects in the domestic market Germany
  • Establishment of help alliance Americas as a subsidiary of Lufthansa Group’s non-profit aid organization help alliance
  • The help alliance was responsible for 43 aid projects with a total project volume of EUR 2.8M – 81% of the donations were used for educational projects
  • Approximately 23,500 disadvantaged people around the world received help

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 4

  • Education and enabling – since 2006, the company has looked after underprivileged children in Cape Town’s townships and given them access to high-quality preschool education; 30 young people from the socially disadvantaged area around Sao Paulo International Airport in Brazil successfully completed their training as bakers and pastry chefs during the reporting year. 

SDG 5

  • Promoting female employees – the company works to increase the number of female employees at management level.

SDG 8 

  • Continuous improvement of working conditions, work and income – the company offers continual review and adjustment of working conditions.

SDG 9 

  • Increased attention to social and ecological compatibility – the company’s procurement policy includes the obligation to assume social and ecological responsibility. Suppliers are obliged to comply with the ten principles of the UN Global Compact; comply with the the basic principles of the International Labor Organization; to consent to announced and unannounced audits by companies of Lufthansa Group; to accept the termination of the contract in the event that these contractual obligations are breached. 

SDG 12 

  • Responsible use of resources  – the company is involved in different research projects and industry associations. Lufthansa and Raffinerie Heide signed a joint declaration of intent at the beginning of 2019 concerning the future production and delivery of synthetic kerosene, which is to be produced with green electricity.

SDG 13 

  • Support for climate goals through research of the following: modifications of aircraft, which simultaneously operate scheduled flights and serve the goals of climate research; measurements of climate-relevant tract gases – daily and on a global scale; aircraft are ideal platforms for carrying out measurements in the upper troposphere and lower stratosphere; the worldwide route network offers extensive coverage of the earth’s most important regions. 

SDG 17

  • Cooperation with science and research as well as its active participation in numerous national and international committees and workgroups. The company participates in ecosense, German industry’s forum for sustainable development, and supports sustainable research. 

Evaluation

The company sets decent targets and has some certifications. They have a few listings, including being recognized as one of the world’s best airlines and a CDP Climate “B” ranking.

The transportation company produces a detailed report with goals for reducing their CO2 emissions, increasing employee engagement, and human rights in alignment with the UN Sustainable Development Goals. This company has been rated a B. 

Analyst Outlook: Neutral 

Lufthansa makes a good attempt in its sustainability efforts, but has more room for improvement, including setting additional targets, garnering more certifications and awards, providing more KPIs and further aligning their business practices with the UN SDGs. 

As a part of the transportation sector, their industry is one of the largest contributors to climate change. However, the fact that Lufthansa is taking leadership to decrease its environmental footprint is very admirable and bodes well for their continued progress towards sustainability.

Key Points

  • Since 2019 all official air travel for Lufthansa Group staff is now CO2 -neutral
  • The Lufthansa Group vows to convert all ground handling services in Germany, Austria and Switzerland to CO2-neutral operations by 2030. This includes the conversion of cargo, catering and transfer vehicles to electric – or other emission-free systems – and the earliest possible purchase of 100 percent green electricity.
  • Lufthansa Group has been intensively involved in researching, testing and using sustainable alternative fuels.
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