Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Lufthansa German Airlines received a Five Star rating from Skytrax, the highest level of quality in the industry, despite ongoing cost-cutting and efficiency measures. Broadband internet was installed on board 87 A320 aircraft on short- and medium-haul routes by the end of 2017. SWISS introduced a digital reading app, expanding its in-flight service portfolio, enabling a significant weight reduction on board and annual saving of some 450 tonnes of CO₂.
• Austrian Airlines completed the introduction of 17 modern Embraer medium-haul aircraft to replace the 17 Fokker 100s, reducing fuel consumption and emissions.

Social Achievements

• Long-term collective agreement reached with labour union partners in 2017, resolving outstanding collective bargaining disputes.
• Lufthansa German Airlines was rated the best airline in Europe by Skytrax on the basis of customer surveys.
• Employee Engagement Index rose year on year by 0.1 points to 2.3 points.

Governance Achievements

• Updated declaration of compliance with the German Corporate Governance Code.
• Adopted a diversity concept for the Executive Board as well as a requirements profile for the Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Rising unit revenues at the airlines.
• Rising fuel costs.
• Intense competition, particularly in the Lufthansa Group’s home markets.
• Terrorist attacks in Europe and strikes at Lufthansa German Airlines in 2016 leading to fewer bookings and lower earnings.
• Overcapacities in some markets.
• High pricing pressure in the MRO business.
• Limited effect of positive growth in passenger numbers on revenue development at in-flight service providers in Europe.
• Increased noise legislation.
• Stricter noise standards may apply to airlines or airports.
• Risks from legal, administrative and arbitration proceedings.
• Cyber-risks to computer and information networks, ground and flight infrastructure as well as all IT-enabled commercial and production processes.
• Breaches of compliance requirements.
• Risks arising from competition and antitrust law.
• Risks from capital market compliance.

Mitigation Strategies

• Continued to reduce unit costs.
• Fuel hedging.
• Active role in the consolidation of the industry in Europe.
• Continuous quality improvements.
• Cost-cutting initiatives in areas that have no effect on customers’ perceptions of quality.
• Pooling the organisational structures of the network airlines and systematically harmonising their commercial management and system landscape.
• Cutting supplier costs and those for infrastructure providers.
• Modernising wage agreements.
• Integration of additional capacities.
• Growth of particularly low-cost production platforms.
• Standardisation and streamlining of processes.
• Continuous cost-cutting and extensive individual efficiency programmes.
• Voluntary agreement on noise limits at Frankfurt Airport.
• Targeted communications in collaboration with trade associations and other industry stakeholders.
• Numerous projects to address cyber-risks.
• Strengthening the Lufthansa Group’s resilience in the face of cyber-attacks.
• Lufthansa Compliance Management System.
• Ombudsman system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Airbus A350-900, A320neo, Bombardier C Series, Boeing 777, AVIATAR platform

Awards & Recognition

• Five Star rating from Skytrax (Lufthansa German Airlines), Best Airline in Europe (Lufthansa German Airlines), Best First Class Lounge Dining (Lufthansa German Airlines), Most digital airline (Lufthansa German Airlines), Best Airport Terminal in the World (Munich Airport Terminal 2), Best Airline Staff Service Europe (Austrian Airlines), World’s most punctual airline (Austrian Airlines)

Environmental Metrics

ESG Focus Areas

• Environmental concerns
• Customer concerns
• Employee concerns
• Fighting corruption and bribery
• Respect for human rights
• Social concerns
• Sustainability in the supply chain

Environmental Achievements

• Reduced CO2 emissions by implementing operational measures, new aircraft, and improved infrastructure (though overall emissions increased by 7%).
• Achieved 99.6% of the operational Group fleet meeting the ICAO Chapter 4 standard for aircraft noise.

Social Achievements

• Improved Engagement Index by 0.1 points to 2.2, exceeding the 2020 target.
• help alliance supported 41 aid projects, assisting 23,000 people.
• Improved Health Index (though slightly decreased to 2.4).

Governance Achievements

• Implemented a binding Code of Conduct in 2017, refined in 2018.
• Established an ombudsman system for confidential reporting of suspicious incidents.
• Conducted compliance risk assessments for all Group companies worldwide.

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions (7%) despite efforts to reduce fuel consumption.
• Decline in punctuality of Lufthansa Group airlines (72% in 2018 vs. 77% in 2017) due to airport bottlenecks, staff shortages, and other factors.
• Challenges in maintaining operational stability due to various factors.

Mitigation Strategies

• Created a new Executive Board position for Airline Resources & Operations Standards.
• Launched the “Operational Excellence 2019” program to improve operational stability.
• Initiated various projects to optimize operations at hubs, including adjusting crew rostering and increasing reserve aircraft.

Supply Chain Management

Responsible Procurement

• Compliance with UN Global Compact principles, ILO core principles.
• Supplier audits (announced and unannounced).
• Contractual obligations for compliance and potential termination for breaches.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 14001 (Lufthansa Technik sites, Lufthansa Cargo, Lufthansa CityLine, one LSG group site)

Third-party Assurance: PricewaterhouseCoopers GmbH (limited assurance)

UN Sustainable Development Goals

• Sustainable Development Goals (SDGs) of the Agenda 2030, focusing on Education/Enabling and Life/Health

Activities based on SDGs, particularly for humanitarian aid missions and educational projects.

Awards & Recognition

• Skytrax five-star rating for Lufthansa German Airlines
• Traveller Trust Award for Eurowings

Environmental Metrics

ESG Focus Areas

• Environmental concerns
• Customer concerns
• Employee concerns
• Anti-corruption and bribery
• Human rights
• Social concerns
• Responsible production and sustainability in the supply chain

Environmental Achievements

• Reduced CO2 emissions by implementing operational measures, using new aircraft types, and increasing average load factors (Specific CO2 emissions per passenger-kilometer and cargo tonne-kilometer remained on par with the previous year).
• 99.6% of the operational Group fleet met the ICAO Chapter 4 standard for aircraft noise.
• Initiated the Smart Plastic Reduction project to reduce plastic waste onboard, aiming for early conformity with EU Directive 2019/904.

Social Achievements

• Expanded social commitment in Germany with four new collaborative projects focusing on education, work, and income.
• Established help alliance Americas to support disadvantaged people in North and South America.
• help alliance managed 43 aid projects with a total project volume of EUR 2.8m, benefiting approximately 23,500 people.

Governance Achievements

• Implemented a Supplier Code of Conduct based on the original Code of Conduct, outlining expectations for business partners and suppliers.
• Maintained a “B” climate score from CDP.
• Expanded the Executive Board to include the position of Customer & Corporate Responsibility.

Climate Goals & Targets

Environmental Challenges

• Personnel shortages in European air traffic control and infrastructure challenges at airports leading to flight delays and cancellations.
• Increasing demand for sustainable products and services.

Mitigation Strategies

• Increased the number of reserve aircraft, added extra buffer time to flight timetables, improved ground processes, and recruited 600 new employees.
• Initiated programs and projects to analyze airline-specific and Group-wide topics and develop measures accordingly.
• Implemented the Smart Plastic Reduction project to reduce plastic waste onboard.
• Offered customers voluntary carbon offsetting options.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring compliance with UN Global Compact principles, ILO core conventions, and acceptance of audits.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes (e.g., shark skin coating).

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 14001 (Lufthansa Technik), EMAS (Lufthansa CityLine, Lufthansa German Airlines in Munich)

Third-party Assurance: Voluntary limited assurance engagement in accordance with ISAE 3000 (revised)

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Lufthansa Group focuses on SDGs where it can reduce negative impact and increase positive effect due to its business model.

Sustainable Products & Innovation

• Recyclable cups
• Bamboo cutlery
• Shark skin coating for aircraft

Awards & Recognition

• Skytrax awards (Best Airline in Europe, Best Airline in Western Europe, etc.)
• Air Transport World Airline of the Year
• Red Dot Award
• Pax International Readership Award

Environmental Metrics

ESG Focus Areas

• Climate protection
• Customer concerns
• Employee concerns
• Anti-corruption and bribery
• Human rights
• Social concerns
• Responsible production and sustainability in the supply chain
• Containment of coronavirus pandemic

Environmental Achievements

• Lufthansa German Airlines and SWISS introduced Star Alliance Biometrics biometric facial recognition at check-in for selected flights, increasing service quality and health and safety for customers.
• EMAS validated and ISO 14001 certified environmental management system at Lufthansa German Airlines in Munich.
• Air Dolomiti successfully passed the audit for ISO 14001 certification.
• Lufthansa Cargo has been certified according to the environmental management standard ISO 14001.
• Lufthansa Technik introduced a new maintenance process for fire extinguishers (EFFECT), significantly reducing environmental risks.

Social Achievements

• Crisis agreements concluded with major trade unions in Germany, streamlining organizational structure and reducing workforce.
• Various crisis agreements with trade unions across different airlines to mitigate economic impact of the crisis.
• Lufthansa German Airlines received a 4-star rating in Skytrax’s “COVID-19 Airline Safety Rating”.
• SWISS was voted Best Airline for Business Travellers in Europe by Business Traveller magazine.

Governance Achievements

• Updated declaration of compliance with the German Corporate Governance Code (GCGC).
• Restructuring of the Executive Board of Deutsche Lufthansa AG and subsidiaries.
• Successful issuance of two bonds, strengthening liquidity.

Climate Goals & Targets

Environmental Challenges

• Unprecedented impact of the coronavirus pandemic on global air traffic, resulting in a 63% drop in revenue and negative Adjusted EBIT.
• Significant decline in passenger and airfreight traffic.
• Liquidity challenges requiring government stabilization measures.
• Increased debt and decreased equity ratio.
• Risks from state aid and liquidity risks.
• Risks from strategic fleet sizing.
• Risks from digital transformation and market entry of new competitors in the Lufthansa Technik segment.
• Risks from political decisions at national and European levels.
• Risks from increased noise legislation.
• Risks from fuel price movements.
• Risks from exchange rate movements.
• Risks from rating downgrade.
• Risks from exchange rate losses on pension fund investments.
• Risks from provider default.
• Risks from flight operations.
• Risks from cyber and IT security.
• Risks from breaching data protection regulations.
• Risks from compliance issues.
• Risks from litigation, administrative proceedings, and arbitration.

Mitigation Strategies

• ReNew restructuring program to adapt to new market conditions, including fleet reduction, workforce adjustment, and cost-cutting measures.
• Crisis agreements with trade unions to reduce staff costs.
• Government stabilization measures and loans to secure solvency.
• Successful issuance of bonds to strengthen liquidity.
• Cost-cutting measures across all business segments.
• Short-term working and other measures to reduce staff costs.
• Flexible network planning and temporary use of converted passenger aircraft to offset decreased capacity in airfreight.
• Development of digital services to strengthen market position.
• Implementation of a comprehensive safety plan for the prevention of infections.
• Continuous monitoring of the global security situation and current events.
• Intensive risk management and monitoring processes.
• Strengthening IT security measures.
• Appropriate governance structures and processes to manage data protection risks.
• Compliance program to prevent corruption and ensure adherence to legal requirements.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Risks from greater regulatory efforts in connection with the climate debate (e.g., CO₂ pricing, SAF quotas).

Opportunities

• Opportunities from technological progress (e.g., fuel-efficient aircraft, SAF).
• Opportunities from improved infrastructure (e.g., Single European Sky).

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 14001, EMAS

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• SDG 4: Quality education
• SDG 5: Gender equality
• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 12: Responsible consumption and production
• SDG 13: Climate action
• SDG 17: Partnerships for the goals

Lufthansa Group focuses on these SDGs where it can reduce its negative impact and increase its positive effect due to its business model.

Sustainable Products & Innovation

• Compensaid platform for carbon offsetting.
• Sharkskin surface coating to reduce air resistance.
• Reusable products in in-flight service.

Awards & Recognition

• CDP Climate-Scoring B rating.
• MSCI Global Sustainability Index BBB rating.
• Sustainalytics rating improvement.
• Vigeo Eiris rating.
• ISS ESG rating.
• Skytrax COVID-19 Airline Safety Rating (4-star for Lufthansa German Airlines).
• World Travel Awards (Lufthansa German Airlines and SWISS).
• Business Traveller award (SWISS).
• German Innovation Prize (Lufthansa German Airlines).
• Best Digital Lab Award (Lufthansa Innovation Hub and Eurowings Digital).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Europe's largest customer for sustainable fuel in 2021
• Established the Lufthansa CleanTech Hub, evaluating over 90 sustainable projects
• AeroSHARK film reduced fuel consumption by up to 1.1%
• 71% reduction of single-use plastic parts on board
• Continued the most extensive fleet transformation in history, ordering additional fuel-efficient aircraft

Social Achievements

• Retained more than 105,000 secure jobs
• help alliance supported over 40,000 people
• Various initiatives for employee well-being, including partial retirement and parental leave programs

Governance Achievements

• Commitment to the ten principles of the UN Global Compact
• Reporting in accordance with GRI Standards 2016, SASB standards, and TCFD recommendations
• Above-average sustainability rating from EcoVadis

Climate Goals & Targets

Environmental Challenges

• Pandemic impacts on global aviation
• High cost of sustainable aviation fuel
• Insufficient volume of SAF available on the market
• Need for further research and development of alternative power systems for aircraft

Mitigation Strategies

• Fleet modernization with fuel-efficient aircraft
• Investment in sustainable aviation fuel (SAF) development and procurement (USD 250 million over three years)
• Exploration of alternative power systems (electric and hydrogen)
• Carbon offsetting projects
• Intermodal transport for reaching hubs
• Efficient flight operation and route planning

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• EU Fit for 55 regulations

Opportunities

• Development of sustainable aviation fuel

Reporting Standards

Frameworks Used: GRI Standards 2016, SASB Standards, TCFD

Third-party Assurance: EcoVadis

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16
• SDG 17

The Lufthansa Group focuses on SDGs where it can reduce its negative impact and increase its positive effect due to its business model.

Sustainable Products & Innovation

• AeroSHARK
• Sustainable aviation fuel

Awards & Recognition

• Deutscher Personalwirtschaftspreis 2021 (German Human Resources Award) in Operational Health Management

Environmental Metrics

ESG Focus Areas

• Climate change
• Customer concerns
• Employee concerns
• Social concerns
• Business ethics and compliance
• Responsible supply chain management

Environmental Achievements

• Specific CO₂ emissions per passenger-kilometre were 90.0 grammes in 2022, 11% lower than in the previous year (previous year: 101.6 grammes).
• Sustainable aviation fuels accounted for 1.8% of the fleet’s overall consumption in the 2022 financial year.
• The Lufthansa Group’s plan to reduce CO₂ emissions was validated by the Science Based Targets initiative (SBTi) in the summer of 2022.

Social Achievements

• The number of employees had risen by 4,219, or 4%, in the reporting year.
• Important agreements signed with collective bargaining partners
• The Lufthansa Group offers its employees an extensive range of opportunities for their professional and personal development

Governance Achievements

• The proportion of women on the Executive Board meets the minimum quota defined in the German Act Extending and Amending the Rules on Equal Participation of Men and Women in Executive Positions in the Public and Private Sectors (FüPoG II).
• The statutory quota requiring supervisory boards to consist of 30% women is met by the Supervisory Board as a whole as well as by both the shareholder and employee representative groups.
• In September 2022, the Supervisory Board and the Executive Board issued an updated declaration of compliance with the German Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• The start of the year was still impacted by the spread of the Omicron coronavirus variant.
• The war in Ukraine caused a significant rise in fuel prices.
• Operational stability caused great concern in 2022 due to personnel shortages affecting airports, ground handling service providers, air traffic control and airlines.
• The Russian invasion of Ukraine had a strongly negative impact on the development of the world economy, the airline industry and the Lufthansa Group in the 2022 financial year.
• Rising material and energy costs, high inflation rates and a tight labour market presented challenges for the catering sector and the LSG Group in the reporting year.

Mitigation Strategies

• The implementation of our restructuring programme helped to mitigate the effects of the high level of inflation. The measures realised to date have generated annual savings of EUR 3.2bn.
• The Executive Board took remedial action over the course of the year, so the situation gradually improved in the second half-year.
• The Lufthansa Group actively used the coronavirus crisis to accelerate its process of transformation and establish a good starting position in order to succeed in the future market environment.
• Strict liquidity management and successful financing measures, including the capital increase carried out in October 2021, allowed for full repayment of stabilisation measures.
• Numerous steps to improve the operating processes are therefore being taken in coordination with service providers and system partners, and additional staff are being recruited to increase internal capacities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• regulatory changes from Fit for 55 package

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: EMAS, ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Not disclosed

Sustainable Products & Innovation

• sustainable aviation fuel (SAF)
• Allegris product generation seating

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Customer concerns
• Employee concerns
• Social concerns
• Business ethics and compliance
• Responsible supply chain management

Environmental Achievements

• Specific CO₂ emissions per passenger-kilometre were 1.8% lower than in the previous year at 88.4 grammes (previous year: 90.0 grammes)
• 25,100 tonnes of carbon emissions were permanently eliminated in the reporting year
• 15 Boeing 777 aircraft equipped with AeroSHARK foil reducing air resistance and carbon emissions

Social Achievements

• Long-term wage agreements reached with Vereinigung Cockpit pilots’ union for Lufthansa Airlines and Lufthansa Cargo
• Various new wage agreements concluded with collective bargaining partners
• Austrian Airlines won a top place at the SKYTRAX World Airline Awards in the category Best Airline Staff in Europe

Governance Achievements

• Updated declaration of compliance with the German Corporate Governance Code issued
• Investment grade rating received from all leading rating agencies
• Shareholder structure updated quarterly and published on the website

Climate Goals & Targets

Environmental Challenges

• Operational instability, especially during summer months, due to high demand and infrastructure bottlenecks resulting in flight delays, connecting flight problems, and baggage issues
• High inflation and lower productivity than before the crisis
• Continued strength of Lufthansa Technik and the further strengthening of the balance sheet, there were concerns about the state of future demand and the outlook for the airfreight business

Mitigation Strategies

• Investment in measures to strengthen operational stability and improve products and services
• Efficiency programme launched for Group airlines to achieve 2019 efficiency levels by year-end 2025
• Adjusted flight offerings based on system partner performance, new employee hires, and process/product improvements

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes (e.g., EU ETS, ReFuelEU Aviation)
• Market shifts (e.g., demand for sustainable products)

Opportunities

• Development of energy-efficient products
• Sustainable aviation fuels

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: EMAS, ISO 14001

Third-party Assurance: EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16
• SDG 17

The Company has identified ten SDGs in line with its material aspects where it can reduce its negative impact and increase its positive effect due to its business model.

Sustainable Products & Innovation

• Green Fares
• Sustainable Corporate Value Fares
• Sustainable Choice service (Lufthansa Cargo)
• AeroSHARK technology

Awards & Recognition

• Skytrax Award 2023 (Best Airline Staff in Europe)