Lufthansa Airlines

RATING

SECTOR

Aviation

WEBSITE

CONTACT

Deutsche Lufthansa AG Corporate Headquarters

Venloer Strasse 151-153 Koeln, 

50672 Germany

T: 49-69-6960

STOCK EXCHANGE

LISTING

  •  Sustainalytics /FTSE4Good,
  • MSCI Rating/MSCI Sustainability Index Series
  • ECPI
  • CDP Climate Rating B

EMPLOYEES

135,534

CHIEF SUSTAINABILITY OFFICER

Bernhard Dietrich

AWARDS

  • Europe First 5 Airlines
  • Skytrax World Airline  Award 2016,2017,2018
  • Air Transport World Award

CONTENT SOURCE

FURTHER READING

Lufthansa Airlines

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The Lufthansa Group is an aviation group with operations worldwide. The Lufthansa Group is composed of the segments Network Airlines, Eurowings and Aviation Services. Aviation Services comprises the segments Logistics, MRO, Catering and Additional Businesses and Group Functions. The latter also include Lufthansa AirPlus, Lufthansa Aviation Training and the IT companies. All segments occupy a leading position in their respective markets.

Network Airlines – The business segment Network Airlines comprises the companies Lufthansa, SWISS and Austrian Airlines. They offer their customers a premium product via their respective hubs and, thanks to the multi-hub strategy, a comprehensive route network combined with the highest degree of travel flexibility.

Eurowings – The business segment Eurowings comprises the flight operations of Eurowings, Germanwings as well as Brussels Airlines. Furthermore, the equity investment in SunExpress is part of this business segment. Together, these airlines are characterized by an innovative and competitive product for price sensitive and service-oriented customers in the growing direct-traffic segment.

Aviation Services – The Aviation Services strengthen the Lufthansa Group’s portfolio and are leaders in their respective worldwide markets. This includes the business segments Logistics, MRO (Maintenance, Repair and Overhaul), Catering and Aviation Training as well as other companies and Group functions.

Lufthansa Cargo – Lufthansa Cargo AG, with headquarters in Frankfurt, is the Lufthansa Group’s specialist for logistics and Europe’s leading cargo airline. The company serves a worldwide network and is known for short transport times and the highest quality standards. In addition to its own and chartered freight capacities, Lufthansa Cargo also markets those in the freight compartments of the passenger aircraft operated by Lufthansa, Austrian Airlines, Brussels Airlines, SunExpress and Eurowings on long-haul routes.

Lufthansa Technik – Lufthansa Technik AG, with headquarters in Hamburg, is the world’s leading manufacturer-independent provider of maintenance, repair and overhaul services for civil commercial aircraft operated by more than 850 customers.

LSG Group – The LSG Group is the industry leader for high-quality in-flight catering. With its established LSG Sky Chefs brand, it offers a comprehensive portfolio of products and services in all areas of in-flight service. The group’s parent company, LSG Lufthansa Service Holding AG, is headquartered in Neu-Isenburg.

Company Sustainable Activity

In line with the consideration of materiality, the Lufthansa Group focuses its commitment above all on its core business, the product of “flying”. Central action areas are emissions reduction, active noise abatement, energy and resource management as well as the commitment to scientific research and the establishment of environmental management systems.The Lufthansa Group aims to conduct its business in a sustainable and responsible manner in all business segments. The Company’s goal is to meet increasing mobility needs with environmentally compatible products and to increase the eco-efficiency of flight operations on a continuous basis.

As early as 1996 the Lufthansa Group firmly anchored rules concerning environmental care in Environmental Guidelines. In 2008, the Executive Board approved the strategic environmental program valid until 2020. It establishes the continuous expansion of the environmental management systems in the Group companies as well as significant action areas concerning fuel efficiency and climate protection, active noise abatement, and energy and resource management. The implementation of the environmental strategy thus unfurls its effects in all areas of the Lufthansa Group – from operating activities and technical maintenance to procurement, facility management and administration.

  • Build Green – Conservation of natural resources also remains central to the Lufthansa Group’s planning, renovation and construction of new corporate buildings. The Lufthansa Aviation Center is exemplary in this regard. Thanks to its thermo-active ceilings, heat-sensitive automated window-shading systems and thermally insulated facade, the administrative building at Frankfurt Airport only consumes about one third of the energy used in conventional office complexes. Other examples of green architecture are the new A-Plus Concourse at Frankfurt Airport and the satellite building at Munich Airport, which opened in April 2016 to increase the capacity of Terminal 

  • Expand Environmental Management – The Lufthansa Group manages its own environmental protection efforts. The Corporate Responsibility department coordinates Group-wide goals, strategies and measures. In addition, the environmental experts of the entire Lufthansa Group regularly exchange information within the framework of the internal environmental forum. Environmental management within the Lufthansa Group will gradually be systematically expanded and further developed at all levels.
  • Environmental Management – All relevant processes and activities with an impact on the environment are systematically captured, documented and evaluated at the Lufthansa Group. The information basis for environmental management at the Group level is the environmental database, which each year captures and stores the current data concerning energy, kerosene and freshwater consumption, emissions, noise, waste, and wastewater. Supported by this information, the environmental experts calculate key indicators, which they use to help improve the Lufthansa Group’s performance in environmental protection on a continuous basis. To support the systematic control and continuous optimization of environmentally relevant processes, the Lufthansa Group steadily advances the implementation of environmental management systems according to ISO 14001 or EMAS at the Group companies.
  • Energy and Resource Management – Making economically and ecologically efficient use of energy and resources is of decisive importance in all business segments across the Lufthansa Group. In addition to meeting legal requirements, it is important for the Group to identify sustainable potentials for the sparing use of electricity and water, and to develop corresponding solutions. Equally important are measures to reduce and recycle waste materials. Another essential approach on the ground is to implement energy-saving and resource-conserving measures in planning, modernizing and constructing buildings.

Since 2020, the Lufthansa Group has exclusively been purchasing green electricity in Germany, Austria, Switzerland and Belgium. To this end, Lufthansa has acquired green power certificates, which guarantee the production of green electricity from new power plants, thus contributing to the expansion of renewable energy. As a further measure, the Lufthansa Group aims to reach CO2-neutral mobility on the ground in its home markets by 2030.In the area of electromobility, the Lufthansa Group sees itself in a pioneering role within the aviation industry. To shape resource efficiency even more sustainably, the Group researches and tests this future-oriented technology in vehicles on the ground. Continuously reducing fuel consumption and switching individual vehicle types step-by-step to electric propulsion technologies is the ambitious goal of the initiative E-PORT AN at Frankfurt Airport.

  • Plastic Avoidance and Reduction – The Lufthansa Group is constantly striving to improve sustainability on board. To this end, the experts from product management and operations efficiency continuously analyze and evaluate all products and processes. The Group pursues a demand-oriented approach and has already successfully implemented numerous measures.

For example, the Lufthansa Group Airlines are committed to replacing disposable plastic products in catering as far as possible with environmentally friendly alternatives and to reducing the overall use of plastic packaging.

A number of sustainable product components have already been implemented and others are currently being developed. These include a new beverage cup made of recycled plastic and the avoidance of packaging, for example with the amenity kits.

  • Active Noise Abatement – The Lufthansa Group supports numerous activities and measures over the long-term in order to decrease aircraft noise perceptibly. The primary goal is to sustainably lower noise at the source and to develop optimized flying procedures in cooperation with system partners. The Lufthansa Group has been working with determination on operating the quietest aircraft possible and on making its existing fleet even quieter. These efforts have been successful: in 2017, 99.5 percent – and thus almost the entire operative Group fleet – fulfilled or exceeded the strict minus- 10-decibel criterium of the ICAO Chapter 4 standard.
  • Commitment to Climate Research – The Lufthansa Group has been involved in climate research since 1994. During this time, a number of Lufthansa passenger aircraft have been operating as “flying laboratories” with the aim of analyzing the composition of the middle atmosphere, without generating additional emissions in the process. The aviation group is a pioneer in this field and has made significant contributions towards improving weather forecasting and climate models.

Certificates

 ISO 14001, EMAS (Eco-Management and Audit Scheme), IATA certification

Sustainable Development Goals

How company covers SDGs

SDG 4, 

Quality education

For a long time, high quality training and continuing education programs have been of particularly high importance across the Lufthansa Group. In addition to its entrepreneurial activities, the Lufthansa Group’s commitment includes its registered charity help alliance whose emphasis is the areas of education and enabling.

SDG 5,

Gender equality

For the Lufthansa Group, diversity and equal opportunities are central elements of the Company‘s strategic alignment. We want to see that every employee has a fair chance to fully develop his/her talents and potential, thus having the chance to make his/her own personal contribution to the success of the company.

SDG  8,

Decent work and economic growth

The Lufthansa Group attaches the greatest importance to providing its employees with an attractive work environment and appropriate salaries. By developing appropriate standards in personnel policy, the Lufthansa Group positions itself as an employer acting with integrity and in responsible ways.

SDG  9,

Industry, innovation and infrastructure

In the context of innovation and digitalization projects the Lufthansa Group also pays increased attention to social and ecological compatibility. Among others, this applies to paperless aviation, the promotion of intermodal solutions, electro mobility at airports and active noise abatement.

SDG 12, 

Responsible consumption and production

Experts of the Lufthansa Group continuously analyze and evaluate existing products and processes on board in order to offer passengers the best possible quality in a good relationship with sustainability aspects. This also includes offers for responsible consumption, such as the option of voluntary CO2 compensation.

SDG 13, 

Climate action

The Lufthansa Group stands for sustainable mobility and is firmly committed to limiting the environmental impact of its business in line with international competition. To this end, it invests continuously in particularly economical and quiet aircraft and lays out programs for the sustainable increase of fuel efficiency.

 

And SDG 17

Partnerships for the goals

The Lufthansa Group supports the SDGs by means of cooperations with science and research as well as its active participation in numerous national and international committees and workgroups.

Progress

Action Areas:

  • Fuel Consumption and Emissions – The Lufthansa Group continuously invests billions of euros in ever more efficient aircraft. This is the biggest lever to make flight operations more efficient and to reduce emissions in aviation. For example, modern twin-engine long-haul aircraft is replacing four-engine aircraft. This significantly reduces kerosene consumption and CO2 emissions. In addition to investing in efficient aircraft, sustainable alternative fuels are an important component in neutralizing emissions directly in aviation. Here, too, the Lufthansa Group is active and, together with the Heide refinery in Hamburg, signed a letter of intent at the beginning of 2019 for the production and acceptance of synthetic kerosene from regionally generated wind energy. The Lufthansa Group again established a new efficiency record in 2018: The aircraft of the passenger fleets needed only 3.65 liters of kerosene on average to transport one passenger over a distance of 100 kilometers (2017: 3.68 l/100 pkm). This is an improvement of 0.8 percent compared with the previous year. The new fuel efficiency record is in large part the result of the long-term fleet modernization program and numerous operative measures aimed at conserving kerosene. In addition, the Lufthansa Group has set its own goals to reduce its specific CO2 emissions by 25 percent by 2020, compared with 2006 values. It achieved 67 percent of this goal by the end of 2018.  The Lufthansa Group determines its CO2 emissions on the basis of the Greenhouse Gas Protocol (GHG Protocol), which divides emissions into three main categories (scopes). All direct emissions from flight operations were determined and verified on behalf of the aviation group in accordance with the requirements of the European emissions trading scheme. Beyond that, for some years the aviation group has also recorded indirect emissions caused by its business activities. The CO2 emissions of the Lufthansa Group, increased by 6.6 percent during the reporting year, compared with the preceding year. To reduce CO2 emissions, the Lufthansa Group is consistently pursuing a four-pillar strategy. It comprises technological, operational and infrastructural measures as well as supplementary economic instruments.
  • Technological Progress – Innovation in aircraft and engine technologies

   – Alternative fuels

  • Improved Infrastructure – Improved use of airspace

   – Airport infrastructures adapted to needs

  • Operational Measures – More efficient aircraft sizes 

 – Optimal flight routes and speeds

 – Optimized processes on the ground

  • Economic Measures – A global, sensibly designed, market-based system for reducing emissions to complement the other three pillars
  • Fly CO2 Neutral – The Compensaid platform developed by the Lufthansa Innovation Hub enables passengers to keep an eye on their travel activities and to compensate for the CO₂ emissions inevitably caused by their flight.

Two options are available to travelers for CO2 compensation via Compensaid: 

  • On the one hand, they can replace fossil aviation fuels one-to-one with Sustainable Aviation Fuel (SAF). The platform calculates the price difference between SAF and fossil kerosene. Customers only pay the surcharge for the innovative fuel. The Lufthansa Group’s Fuel Management feeds the SAF into flight operations in Frankfurt within six months. SAF is one of the most promising options for making the future of flying climate-neutral.
  • Alternatively, travelers can support reforestation projects through the climate protection organisation, myclimate, which has been a partner of the Lufthansa Group for effective climate protection since 2007, and thus achieve positive long-term climate effects. With the Compensaid platform, customers have the choice of which approach they want to use to reduce CO2 emissions from their flight. It is also possible to combine both alternatives.
  • Environmental Strategy and Measures – The Lufthansa Group hat set itself ambitious goals for climate and environmental responsibility In 2008, the Company set up a strategic environmental program, aimed at achieving further progress in climate and environmental responsibility until 2020.
  • Reduce Carbon Emissions – The Lufthansa Group supports the ambitious goals of the air travel industry as set for in an international statement of commitment in 2009:
  • An increase of 1.5% per year in energy efficiency until 2020
  • CO2-neutral growth from 2020
  • A 50% reduction in net CO2 emissions by 2050 as compared to 2005

Their basis for further increases in efficiency is the industry’s accepted four-pillar strategy for climate protection. This agenda covers the entire spectrum of feasible measures.

 

    • Cut Nitrogen Oxide Emissions – Since 1991, emissions of nitrogen oxides per tonne kilometer transported (g/tkm) within the Lufthansa Group have already been cut by 25.3 per cent. The Lufthansa Group supports the goal of the Advisory Council for Aviation Research and Innovation in Europe (ACARE), which envisages a reduction in nitrogen oxide emissions of 80 percent by the
      • year 2020. This value has been calculated based on an aircraft with the most up-to-date technology this year, relative to the baseline year 2000.

       

      • Modernise The Fleet – Green technologies will only be implemented if airlines continuously modernize their fleets. Over the next ten years, the Lufthansa Group will receive a new, fuel-efficient aircraft every two weeks on average. The CO2 savings compared with previous models will be up to 25 per cent.

       

      • Promote Alternative Fuels – The Lufthansa Group is intensively involved in various research institutions and industry associations and is constantly in touch with further developments on the subject of alternative fuels. On 14 February 2019, Deutsche Lufthansa AG signed a letter of intent with Raffinerie Heide (Heide refinery) for the production and use of environmentally friendly synthetic kerosene. This is to be developed and produced by using surplus regionally generated wind energy in the KEROSyN100 research project under the direction of the University of Bremen with the Heide refinery and five other partners from science and industry.

       

      • Increase Operational Efficiency – Airline operations provide numerous opportunities to optimize efficiency. This includes optimum flight routings and flight speeds, efficient aircraft capacities, programs for long-term weight reductions on board and optimum aircraft loading procedures. The Lufthansa Group is steadily continuing its efforts in this field.

       

      • Improve Infrastructure – Inefficient or insufficient infrastructure in the air and on the ground leads to unnecessary fuel consumption. It is therefore evident that airports must be expanded to keep up with demand and airspace must be used in an optimal manner. Here, policy makers in particular are called on to create the appropriate regulatory environment and introduce necessary measures in a timely manner.

       

      • Implementation of the Global Market-Based Climate Protection Instrument – The Lufthansa Group has for some years now been involved in international committees working towards a market-based and competition-neutral system for climate protection fees which would be valid worldwide. Only a globally defined system can be effective in climate protection and can minimize competition distortion. At the 39th General Assembly of the International Civil Aviation Organization (ICAO) in October 2016, it was decided that the system CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) will be introduced for the compensation of CO2 emissions through project-based mechanisms. With this agreement, growth-related CO2 emissions in international civil aviation are to be compensated from 2021 by CO2 savings achieved by climate protection projects.
      • Continue Offsetting Carbon Emissions – Lufthansa, SWISS, Austrian Airlines, Brussels Airlines and Edelweiss Air offer their customers the option to compensate the CO2-emissions unavoidably generated by their flights with a voluntary donation. These funds directly benefit climate protection projects.

       

      • Develop Further Incentive Systems – Green incentive systems, which are designed to be cost-neutral, are the right approach to ensuring sustainable mobility. Take, for example, emissions-dependent airport charges. Under this system, innovative airlines with fuel-efficient aircraft pay less, while less innovative airlines pay more. The airports in Frankfurt, Munich, Dusseldorf, Cologne, Hamburg and Hannover have already introduced such fees in relation to emissions of nitrogen oxides.

       

      • Reduce Aircraft Noise – Residents living near airports must be protected from unacceptable levels of noise. Here, too, investments in new and quieter aircraft must be the method of choice in order to achieve tangible improvements. Through continual fleet modernization and active participation in research and development, the Lufthansa Group wants to help achieve the ACARE research goal. Under the ACARE program, technologies that can reduce noise emissions by 50 per cent relative to the year 2000 are to be developed by 2020.

       

      • Improve Aircraft – The Lufthansa Group, along with its partners, analyses noise-generating mechanisms and on this basis develops practicable solutions. As part of its ongoing commitment to significantly reduce aircraft noise, the Lufthansa Group invests in state-of-the-art technology for its new aircraft and their engines and at the same time continues to optimize its existing fleet.

       

      • Optimise Flight Procedures – The Lufthansa Group is advancing the development of low-noise flight procedures. As new flight procedures must take security aspects, capacity and efficiency into account, all the system partners – airports, air traffic control services and airlines – must pull together. Lufthansa is involved, among other things, in testing new flight procedures (introduction of RNP RF procedures) and modern navigation technologies (GBAS) – both as part of the SESAR programme (Single European Sky ATM Research).

       

      • Develop Comprehensive Traffic Concepts – Efficient transport demands that modes of transport be linked in an optimal manner. Lufthansa supports the measures required to achieve this end wherever it makes ecological and economical sense. The Company bundled its comprehensive services for intermodal travel under the brand name Lufthansa Express. The spectrum of travel options before and after a flight ranges from ICE high-speed trains to modern long-distance busses and car-sharing.

       

Lufthansa gets an A rating because it has certification for the entire group, clear objectives and clear progress. Despite being in an industry that heavily damages the environment, Lufthansa does take sufficient actions and initiatives to make up for the damages they cause.

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