Sustainability Report 2009 (pdf) - Munich Airport

Core topics in the reportThe materiality matrix printed below lists the coretopics covered here in this report. It shows how keysustainability issues are prioritized according to theirimportance for stakeholders groups and for MunichAirport. Changes in the importance of issues forstakeholder groups since our prior sustainabilityreport are based on a survey conducted among lastyear’s report readers. Their feedback essentially reaffirmedour established choice of themes. However,minor changes have been incorporated into the newmatrix. In particular, the majority of readers requestedmore detail on training programs and on initiatives toreduce the airport’s environmental footprint. We haveexpanded our coverage of these topics accordinglyin this report. In addition, our sustainability panel reviewedthe thematic emphasis from FlughafenMünchen GmbH’s perspective; their priorities arethe same as a year earlier.– Career training– Better integration with masstransit systems– Collaboration with homeregion– Facilitation of global mobility– Reduction of environmentalfootprint– Stakeholder dialogue andcommunications– Lasting increase in valueImportance for stakeholdersVery important– Regional sponsorships– Collaboration with academicinstitutions– Supplier management– Cultural diversity in theworkforce– Political stance andparticipation in organizations– Co-determination– Risk management andanti-corruption initiatives(compliance)– Conservation– Industrial health and safety– Health management– Continued education andHR development– Airport development anddemand-driven capacityexpansion– Customer satisfaction andfeedback management– Competitive operatingstructures– Energy efficiency andresource conservation– Safety and security– Promotion of employeesustainability awareness– Sustainable buildingImportant– Waste management– Water and wastewater– Handling of hazardous substancesImportantVery importantImportance for Flughafen München GmbH

Cover photoVogelfreistätte Mittlere Isarstauseen, one of Bavaria’s most important reserves forwaterfowl, is located along the river Isar’s catchment lakes between the towns ofMoosburg and Eching. The area pictured here, near Weixerau, is at the heart of aconservation area covering almost six square kilometers. More than 260 species ofbird can be seen here, including kingfishers, little ringed plovers and even endangeredvarieties like the bluethroat and the common tern. The reserve is an important breedingarea and winter habitat for thousands of waterfowl. The Isar is 295 kilometerslong, from its source in the Karwendel mountain chain in Tirol to the point where itjoins the Danube, near Deggendorf in Lower Bavaria.

Perspectives We are an airport operator. We runa major piece of aviation infrastructure – part ofan international, interconnected transport networkthat sustains global mobility and unites peopleacross national boundaries. We are also a responsiblecorporate citizen who seeks an open, fair andbalanced dialogue with stakeholders and interestgroups and for whom the long-term protection ofthe environment, climate and natural resources isparamount. As such, we pursue a forward-lookingbusiness strategy intended to strike a successfulbalance between business, environmental andsocial objectives. We provide our dedicated workforcewith the training and continuing educationthey need to be their best; we offer attractive,long-term employment; and we deliver valuableeconomic and labor-market stimulus with a reachfar beyond the bounds of our airport. Our goal:to create value – for our customers, employees,owners and host region.Flughafen München GmbH’s perspective on sustainability

Contents4 – 5Foreword38 – 27StructuresCompany and governance30 – 49ConsequencesEnvironmental and climate protection52 – 65ChangeWorkforce and work environment68 – 89ResponsibilitySocial responsibility and regional engagement92 – 107BalanceFacts and figuresBack inside coverGRI index

MunichSydneyRice terraces, Bali, Indonesia Some 2,000 years ago, the peoples of southeastAsia began cutting terraces into the landscape in order to cultivate rice. In manyplaces, these terraces are thought to be the region’s oldest built structures. Thiscultivation technique allows rice to be grown on slopes with gradients as steepas 70 percent.Structures Intelligent, solid structures allowprecious resources to be used efficiently. Weare building the foundations today that will enablemobility to evolve sustainably tomorrow.

Company and governanceCompany profileCompany profile9We operate one of the most advanced and efficient aviation hubsin Europe. This role brings with it special responsibilities – bothenvironmental and societal. By managing our business operationssustainably, we aim to balance economic, environmental,social and societal objectives successfully while keeping thecompany firmly focused on the future.FMG’s organizational structureFlughafen München GmbH (FMG) is a limited liabilitycompany domiciled and registered in Munich, Germany.Together with a group of 13 subsidiaries, itoperates Munich Airport, a commercial passengerfacility. The company’s shareholders are the FreeState of Bavaria with a stake of 51 percent, the FederalRepublic of Germany with 26 percent, and theCity of Munich with 23 percent. This ownership structurehas remained unchanged since 1973.The company’s organizational structure is based oncentral, business and support divisions. The centraldivisions are responsible for the overall control of theFMG Group of companies. The business divisions– Aviation, Corporate Real Estate Management andDevelopment, Retail and Services, Ground Handlingand Terminal 2 – are responsible for operations andconduct their businesses independently, each generatingrevenue within its specific market segment.The support divisions – Engineering and Facilities,Information Technology, Corporate Services, Security,and Planning and Construction – primarily providesupport services to the Group.Planning and Construction is a new support division,formed during internal restructuring in 2009.Barring a number of consulting projects for internationalairports, the company confines its operationsto Munich Airport.High-performance aviation hubMunich Airport is one of the largest and most efficientaviation hubs in Europe. In spite of the globaleconomic and financial crisis, which in 2009 causedpassenger traffic to contract by 5.4 percent, MunichAirport logged 32.7 million passenger movementsand succeeded in retaining both its number-sevenranking among Europe’s ten busiest passengerairports and its position as Germany’s second-largestaviation hub.Five FMG divisionsThe FMG Group has two main revenue streams: fromits aviation business, essentially comprising landingfees and ground handling service charges, and fromits non-aviation business – mainly retail, hospitality andreal estate – which accounts for close to half of theGroup’s total revenue.> Aviation Our Aviation division is responsible forthe safe and orderly handling of air traffic withinthe bounds of the airport. Its areas of responsibilityinclude the runway system, apron areas, terminaland passenger services, and central infrastructure.The division’s tasks and duties are extremely variedand include running the airport’s fire service, processingaviation data and preparing forecasts, marketingthe airport, developing traffic, operating the airport’slounges and service center, and managing internationalconsulting projects.Munich ranks seventhamong Europe’s tenbusiest commercialairports

Company and governanceCompany profile11Flughafen München GmbH’s subsidiaries and affiliatesShare of capitalaerogate Flughafen Gesellschaft für Luftverkehrsabfertigungen mbH – passenger handling 100.0 %AeroGround Flughafen München Aviation Support GmbH – aircraft handling 100.0 %Allresto Flughafen München Hotel & Gaststätten GmbH – hospitality and dining 100.0 %Beteiligungsgesellschaft mbH der FMG 100.0 %Cargogate Flughafen München Gesellschaft für Luftverkehrsabfertigungen mbH – cargo handling 100.0 %eurotrade Flughafen München Handels-GmbH – retail stores and businesses 100.0 %FMV – Flughafen München Versicherungsvermittlungsgesellschaft mbH – insurance 100.0 %mucground Services Flughafen München GmbH – ground services 100.0 %CAP Flughafen München Sicherheits-GmbH – security 76.1 %FMBau Flughafen München Baugesellschaft mbH – construction 60.0 %FM Terminal 2 Immobilien Verwaltungsgesellschaft mbH & Co oHG 60.0 %Terminal 2 Betriebsgesellschaft mbH & Co oHG – Terminal 2 60.0 %MediCare Flughafen München Medizinsches Zentrum GmbH 51.0 %Bayern Facility Management GmbH 49.0 %EFM – Gesellschaft für Enteisen und Flugzeugschleppen mbH 49.0 %Group reporting covers all of the subsidiaries and affiliates in which FMG has a stake of at least 50.0 percent.

Organization and managementCompany and governance14Corporate valuesPreserving values, mastering the present, shaping the futureCollaborationWe foster respectful,fair win-win partnershipswithin the FMG Groupand with our customers,business partners andneighborsCommunicationWe communicate clearly,openly and honestly –internally and externallySustainabilityWe operate the airportaccording to principles ofsustainability and soundenvironmental stewardshipTraditionWe are proud of ourtradition and ourstrengths, and webuild on them to masterfuture challengesO U RF U T U R EOur airportWe work competentlyand with dedication forour airport, and we areproud of our achievementsEntrepreneurshipWe create value andopportunities throughentrepreneurial thinkingand profit-oriented actionProgressWe embrace change andseek proactively to shapethe future in line with ourinterestsThese corporate values are the fundamental principles and standards that guide and inform our employees’ conduct and interaction at everylevel within the FMG Group.

Company and governanceOrganization and management15The sustainability management panelSGPresident and CEO, Personnel Industrial Relations DirectorPEHuman ResourcesFCFinance andControllingKECorporateDevelopment andEnvironmentUKCorporateCommunicationsTEEngineering andFacilitiesSustainability thought-leadersThe sustainability management panel is staffed bypeople from Human Resources, Finance and Controlling,Corporate Communications, Engineering and Facilities,and Corporate Development and Environment.The panel is responsible for fundamental decisionmakingon sustainability-related projects and reportsdirectly to executive management.At quarterly meetings – or more frequently if necessary– the panel explores opportunities and risksrelating to sustainability, evaluates these in terms ofour current sustainability program, and recommendspossible course adjustments as appropriate. Thepanel also receives reports that enable it to track theprogress of initiatives and is responsible for prioritizingthemes in our materiality matrix.Our sustainability paneldecides on the focus ofsustainability projects

Organization and managementCompany and governance16Executive and supervisoryboards: A two-tiermanagement andoversight structureSupervisory board and executive boardAs a limited liability company domiciled in Munich,Flughafen München GmbH is governed in accordancewith the requirements of Germany’s LimitedLiability Companies Act, co-determination statutes,and the company’s own articles of association. FMGhas a two-tier management and oversight structureconsisting of a supervisory board and an executiveboard. The supervisory board and the executiveboard are entirely separate and distinct bodies interms of their membership.Under the articles of Flughafen München GmbH,the company’s supervisory board monitors executivemanagement as appropriate. The supervisoryboard consists of eight members representingthe company’s shareholders and a further eightrepresenting the company’s employees. FlughafenMünchen GmbH’s shareholders are represented onthe supervisory board in proportion to their percentageownership of the company. On the employeeside, the board has members representing companyemployees (five seats), labor unions (two seats),and management-level employees (one seat). Thesupervisory board’s key powers include the authorityto appoint and dismiss members of the company’sexecutive management team.Under the provisions of the company’s articles, certainsteps and transactions undertaken by executivemanagement that exceed set maximum monetaryvalues may only be conducted with the expressapproval of the supervisory board. In the eventthat supervisory board members are divided on adecision and the numbers in favor and against areequal, the vote of the chair (a representative of theshareholders) counts double.The shareholders’ representatives on the supervisoryboard are from relevant federal and state ministriesand administrative districts; they ensure thatpolicy takes into account wider political and societalinterests. Flughafen München GmbH’s executiveboard consists of the President and Chief ExecutiveOfficer (who is also Personnel Industrial RelationsDirector and spokesman for the executive board),the Vice President and Chief Financial Officer, andthe Chief Operating Officer.The company publishes key financials and consolidatedyearend accounts in an annual report. Thereport includes details of the company’s system ofexecutive pay as well as remuneration received byindividual members of the executive and supervisoryboards. FMG’s governance builds on transpar-Structure of Flughafen München GmbHGeneral meeting of shareholdersSupervisory boardShareholderrepresentativesLabor unionrepresentativesManagementrepresentativesEmployeerepresentativesChief FinancialOfficerExecutive boardPresident and CEO, PersonnelIndustrial Relations DirectorChief OperatingOfficerDivisionsBusiness divisionsSupport divisions Central divisions Executive support offices– Corporate Real Estate Managementand Development– Retail and Services– Aviation– Ground Handling– Terminal 2– Engineering and Facilities– Information Technology– Security– Corporate Services– Planning and Construction– Finance and Controlling– Human Resources– Legal Affairs and Security– Corporate Development andEnvironmental Issues– Corporate Communications– Assistant to the ExecutiveBoard– Office of Committees– Corporate Representative forGovernment Affairs– Regional Liaison Officer

Company and governanceOrganization and managementency and a swift and steady flow of informationbetween shareholders and executive management.Parallel to its financial reporting, FMG also regularlypublishes press releases covering current events ofimportance or interest at the company. The supervisoryboard is provided with financial and risk reportson a quarterly basis.Public corporate governanceFlughafen München GmbH aligns with and upholdsresponsible business management practices asdefined in the Public Corporate Governance Codeissued by the federal government in July 2009.Anticorruption guidelines and trainingThe anticorruption guidelines we published in 2008provide the FMG workforce with clear guidance oncorrect and appropriate dealings with business partners.These guidelines, which are available on thecorporate intranet, ensure that employees abide bythe proper procedures, particularly in procurementand the award and handling of contracts.To familiarize our employees and managers withthese guidelines, we provided training programs andpublished information on updates and additions. In2009, we issued amended and revised instructions onpurchasing processes and delivered training to thoseemployees affected by these changes.Company managers and employees are required toconfirm by signature that they acknowledge our FMGGroup Code of Conduct and that they undertake tosupport and abide by it.In 2009, we combined the roles of anticorruption officerand the head of internal auditing in a single person.The reason for this move was that the latter positionis equipped with comprehensive and unrestrictedaccess and information rights that are essential toperforming anticorruption duties to best effect.Our anticorruption officer reported that four allegedcases of corruption at Flughafen München GmbHand a further three at FMG subsidiaries were investigatedin 2009. However, all were deemed to beunfounded.Sustainability in procurementWhen calling for bids, we take steps to ensurecompliance with national and international legalrequirements and agreements. This compliance isreaffirmed in legally binding form when contractsare concluded.In 2009, Germany enacted revised legislation on theaward of contracts. The new legislation enables thepublic sector to stipulate environmental and socialfactors as additional requirements that suppliersmust fulfill.In line with this, Flughafen München GmbH has decidedto amend its supplier management system toinclude environmental and social criteria in its tenderdocuments. Our initial steps toward this objectivewere to issue guidance on sustainable procurementand to conduct a supplier survey in 2009 . Followingon from this, we are currently rolling out a pilotproject to define sustainability criteria for selectedgroups of products. This will enable us to ensurethat there is no child labor, forced labor or discriminationanywhere along the supply chain for specificproduct groups.AccountingThe company prepares its consolidated yearendaccounts and interim reports in accordance with therequirements of the German Commercial Code (HGB).Legal complianceFlughafen München GmbH complies with statutoryregulations and provisions based on the applicablelegislation and legal framework. Barring eventsinvolving our subsidiary CAP addressed elsewherein this report, we are not aware of any infringementsof these regulations or provisions in the periodunder review .GuidelinesAll policies and procedures in the FMG Group are laidout in our organizational manual. This contains extensiveguidance on a range of important topics, such asprocurement processes (everything from issuing noticesof requirements to verification of invoices) andinformation security, and ensures that all our internalprocesses are transparent and traceable.Review of advertising messagesFlughafen München GmbH’s advertising conformsto the requirement catalogs issued by the GermanAdvertising Council. The advertising we publishavoids all forms of discrimination and unfairness;it does not mislead; it follows the Council’s coderegarding advertising that involves or is accessibleto children; and it remains within the realm of whatmay be considered decent, proper and moral. Inthe period reviewed in this report, we incurred nosanctions, fines or warnings for infringements ofadvertising regulations.17 See p. 79We are phasingsustainability requirementsinto our suppliermanagement system See p. 21

Customer focusCompany and governance20Careful quality managementis the key to continuousimprovement See p. 76Continuous service optimizationWith more than 90,000 passengers using MunichAirport each day, not everything always goes100-percent smoothly. To help us avoid errors andfurther optimize processes, we introduced a feedbacksystem at the airport several years ago tomanage air travelers’ complaints and suggestionsfor improvements.The input we gather from customers is a valuablesource of information on how we can optimize therange of services we deliver at our facility. Our centralcomplaints management system ensures that allsuggestions and complaints received in writing fromairport users – passengers, meeters, greeters, farewellersand airport visitors – not only receive a swiftand, where possible, personal response, but are alsoevaluated carefully to help us constantly improve theservices we deliver. Most of the comments we receiveare through feedback forms (available all overthe airport), online forms, and letters.We often turn to the relevant departments within thecompany for assistance with responses to passengers’comments. When other entities are responsiblefor the issue in question (public authorities or airlines,for example), the sender receives an interimresponse. All suggestions received are logged systematicallyin a database; we also regularly reviewthe subjects of complaints to identify trends and patterns,and we report on these internally as relevant.We are frequently able to introduce improvementsto services and to step up quality assurance soonafter issues are identified; in some instances,though, changes need to be introduced throughquality management projects. For example, wegreatly improved the standards of cleaning in Terminal1 through a joint project conducted by our aviationand real estate units and the cleaning companyresponsible. We also continuously verify waitingtimes involved in passenger processing so that wecan adjust our allocation of resources accordingly .Quality managementThe service that passengers experience when theyuse an airport is what sets that airport apart fromits rivals. The quality of experience depends on thefacilities and services provided on the ground by theairline companies (lounges and other offerings, forexample) and by the airport operator. With the implementationof a quality management system certifiedto DIN EN ISO 9001:2008, which focuses not just oncustomer processes but also on internal operationaland technical execution, Flughafen München GmbHhas laid the foundations for continuous improvement.By seeking constantly to optimize processesand by applying our own high in-house standards,we continue to build out a strong position for ourselvesin the aviation marketplace.

Company and governanceCustomer focus21Focus on securitySecurity is an issue of maximum priority at an internationalpassenger airport.Employee pedestrian and vehicular access is controlledby an FMG subsidiary, CAP, and by FlughafenMünchen GmbH’s operational security services,which have around 770 employees. All accesscontrol measures are executed in compliance withnational and EU requirements and statutory Germanregulations based on current aviation securitylegislation and are subject to continuous qualitychecks in the form of EU security inspections. Wealso perform our own internal checks through theFMG security quality management system.The requirements that security staff must fulfill notonly call for increasingly high levels of professionalexpertise, they are also changing constantly. Weprovide our staff with regular onward training toensure that their knowledge is fully up-to-date.Another important factor in aviation security is themandatory training that all persons with access tothe security zone at Munich Airport are required tocomplete. We set up an internal employee trainingwebsite for all FMG employees who work at computers;in 2009, this was used by 7,000 people to completethe training. Other members of our workforceattended security seminars at our Airport Academy innearby Schwaig. Since mid-2008, 17,000 people havecompleted the mandatory security training program.Passengers passing into the gate areas are screenedin accordance with statutory requirements byemployees of Sicherheitsgesellschaft am FlughafenMünchen mbh (SGM) operating as agents of thestate’s highest aviation security authority. More than1,100 aviation security officers work in this area.CAP Flughafen München Sicherheits-GmbHFormed in 1992, CAP handles a variety of securitytasks under contract from airlines and other organizationslocated at Munich Airport. CAP is currentlyunder investigation by the district attorney’s officebecause permanent employees appeared to havebeen working more hours than contractually agreed.This took the form that staff was officially hired bythird-party companies as part-time workers in socalledmini-jobs and then hired back to CAP.The reason for the investigation is that the districtattorney’s office is of the opinion that this employmentmodel, as implemented by CAP, is not legitimate.This raises issues of potential criminal liabilityon the part of the persons who set up this model,and may entail possible back payments of taxes andsocial insurance.FMG’s executive management, on becoming awareof the accusations leveled against CAP, immediatelyput an end to these employment practices. The investigationby the authorities is still underway, andit is impossible to state as of this writing whetherthe case will ultimately warrant prosecution undercriminal law.Safety ManagementThe safe operation and handling of aircraft as perstatutory aviation regulations has the utmost priority.We therefore operate a safety managementsystem (SMS) in compliance with InternationalCivil Aviation Organization requirements. Our SMSencompasses the entire Munich Airport campus.We supervise all of the businesses, frontlineservices and other organizations involved in safetyrelatedtasks at the airport through this safetymanagement system.Effective safety managementhas utmostpriority

Performance and growthCompany and governance22Performance and growthAs one of Europe’s foremost hubs, Munich Airport has a vitalrole to play in aviation, today and tomorrow. This means we needto adapt our infrastructure and facilities continuously in line withour market’s changing requirements and maintain an optimumbalance between airside and landside capacity.The FMG Group hasannual revenuesapproaching €1 billionBusiness performanceIn 2009, the global financial and economic crisisimpacted significantly on Munich Airport, Bavaria’sgateway to the world, causing the passengervolume to contract by 5.4 percent to 32.7 millionmovements. However, earnings steadied in theyear’s last quarter thanks both to the onset of arecovery in the global economy and a positivebaseline effect. By yearend, we saw a clear returnto growth at Munich Airport and, in spite of the dropin passenger traffic, were able to retain our numberseven ranking among Europe’s busiest airports.Our revenue and earnings depend heavily on trafficvolumes, and the decline in passenger numberswas mirrored in our business performance. In fiscal2009, the FMG Group reported total revenueof €981.3 million – down 6.0 percent year on year,roughly in line with the drop in passenger traffic.With sales lower overall in our aviation and non-aviationbusinesses, our revenue structure remainedalmost the same year on year: Aviation businessgenerated 52 percent of Group sales, compared to48 percent in our non-aviation business.In spite of the fact that we have high fixed costs asan infrastructure operator, our earnings before interestand taxes (EBIT), adjusted for one-time cumulativeeffects, improved by €10.0 million, to €214.1million. This success was largely due to JUMP,a new corporate program to improve earnings,launched in the latter half of 2009. Through JUMPwe aim to achieve €360 million in cost savings andrevenue gains by 2014. Our EBIT stated here hasbeen adjusted to reflect the formation of a reservetotaling €84 million for our Ground Handling division(2008: €31 million). We formed this reserve for tworeasons: First, with our current contracts, the division’sexpenses will exceed its revenues; and second,the division will no longer be providing groundservices to Air Berlin. Furthermore, Deutsche Lufthansahas announced that it intends to purchasearound 25 percent of its handling services from arival operator beginning in 2011.Our adjusted earnings after taxes (EAT) were alsohigher year on year at €92.9 million, up from €78.8million in 2008. This figure has been adjusted toreflect €10.4 million in payments to shareholders

Company and governancePerformance and growth23(2008: €43.5 million) as well as the aforementionedreserves formed for Ground Handling. Withoutadjustment for these one-time cumulative effects,Group earnings totaled negative €1.4 million (2008:€4.0 million).The value added statement below shows the differencebetween the company’s output and the valueof attendant up-front expenditures. The appropriationstatement indicates the respective sharesof those participating in the value added process(employees, the state and creditors). In 2009, thecompany received no state financial grants.JUMP, our earnings improvement programIn response to the global financial and economiccrisis and in preparation for the financial and businesschallenges we anticipate in connection withour plans to expand Munich Airport, we launchedJUMP, a program to improve our earnings performance.Through JUMP we expect to boost earningpower throughout the FMG Group.By continuously reviewing our existing products, servicesand structures, we are preparing the ground forthe kind of solid long-term business growth that willenable Munich Airport to remain a major-league playeramong aviation hubs.JUMP is a new corporateprogram launchedto boost our earningpowerYear-on-year comparison of key business figures2009 2008Value added (€ million)Net sales revenue 981.3 1,043.7Total operating performance 1,057.3 1,105.4Less operating expenditure (incl. leasing) 519.3 508.7Less depreciation and amortization 124.9 124.4Total 413.1 472.3Value distributed (€ million)Employees 309.3 314.1Providers of capital 89.7 126.4The state 7.3 8.1Community investment 0.0 10.0Third-party shareholders 8.2 9.7The Company - 1.4 4.0Total 413.1 472.3

Performance and growthCompany and governance24Risk managementequips us to respondswiftly and actively toproblem situationsRisk managementThe FMG Group’s system of risk management isdesigned to identify and gauge potential risk facingthe enterprise and covers the full extent of ouroperational and strategic business processes.All risk information is reviewed internally on aquarterly basis to enable executive management anddivision heads to respond swiftly and effectively toshifting risk scenarios and to new and emerging risks.Risks are assessed based on the likelihood ofoccurrence and on quantification of the scale ofimpact in the event that a risk becomes reality.The primary goal of risk management is to take acontrolled approach to risk and to define preventivemeasures to avoid it.Examples of risks with a low likelihood of occurrencebut a potentially severe economic impact includeacts of terror, natural disasters, air accidents,and the loss or impairment of the airport’s abilityto function as a hub.Other risks, too, such as possible industrial actionor the discontinuation of operations or the reductionof service frequencies by airlines are also taken intoaccount in our system of risk management.Ground Handling’s futureThe most significant risk we identified in 2009 wasthe future of our Ground Handling division. Ourcontract to provide handling services to Air Berlin,a major customer, was not extended at the start of2010. The reason for this is that FMG is bound byTVöD public-service pay scales and is thus not ableto offer customers handling services at competitiverates while still covering its own costs. Other instancesof customers defecting for price-relatedreasons are being tracked and evaluated in our riskmanagement system. Importantly, our main customer,Deutsche Lufthansa AG, has announced thatit intends sourcing 25 percent of its handling servicesfrom a competing company, beginning in 2011.The supervisory board and executive managementwill focus on finding ways to address this issue attheir meetings in 2010.

Company and governancePerformance and growth25Securing our long-term futureThe Bavarian state government, in its developmentprogram for Bavaria, has expressly defined the provisionof a sustainable technical infrastructure as akey goal. To quote the government’s strategy paper:“Munich’s commercial airport must be able to fulfillthe longer-term tasks it faces as a major Europeanaviation hub.”Balance of capacityAn ongoing challenge from a master planning perspectiveis to maintain the right balance betweenairside and landside capacity at Munich Airport.To address today’s airside capacity bottlenecks, weplan to expand capacity by building a third runway atthe airport. At the same time, terminal capacity, too,is approaching its limits. To alleviate this emergingproblem, we are planning to construct a satellite onthe east apron as an extension to Terminal 2.In our assessment of our balance of capacity, wealso take the airport’s landside transport infrastructureinto account. For us, it is essential that wework closely with our home region to introduceefficient and effective measures to improve localtraffic access and infrastructure. Our primary focusat present is on improving the airport’s rail access.Airside master planSmooth and efficient landing and takeoff processeswithout delays rely on networked operations involvingthe airport, air traffic control and airline companies,as well as a range of infrastructural and operationalfactors.To help us streamline traffic operations, we testoperating and infrastructure scenarios in a computer-basedsimulation model known as “Simmod-Plus.” This is a virtual model of airport operationsthat enables us to work through and analyze all theexecution phases in any given flight – from approachto departure.These simulations help us to identify potentialbottlenecks well in advance and to plan and takecorrective action. We also use them as a means ofvalidating and optimizing our expansion program. Inairside master planning, high-speed simulations arean indispensable tool in demand-centric, operationsplanning processes.Planning expansion based on demandTo be properly equipped to meet tomorrow’s demandfor mobility, Munich Airport’s current two-runwaysystem needs to be enhanced through the additionof a third runway.Airlines’ demand for slots today already exceeds ourcapacity – currently, 90 scheduled aircraft movementsper hour – and our options for further optimizationare largely exhausted. Adding a third runway wouldboost capacity to a minimum of 120 movements anhour, safeguarding our ability to accommodate trafficgrowth in the longer term. We urgently need thisaddition because according to reliable forecasts,our annual passenger volume will likely increaseto 58.2 million by 2025.This is why, almost two decades since the airportmoved to its present location, we have laid thefoundations for the expansion of our facility inline with projected demand and have initiated theapproval procedures required in connection withthe construction of our third runway. As part of theongoing zoning approval process, the regional governmentof Upper Bavaria in February 2009 begana detailed review of concerns raised by citizens’Our two-runwaysystem has alreadyreached its limits

Performance and growthCompany and governance26 groups and will issue its decision on whether ourrunway project can go ahead once it has completeda thorough assessment.The airport needs betterrail network accessLandside master planningOn the landside, too, transport systems and infrastructurecapable of meeting demand are crucial toefficient traffic flow and Munich Airport’s accessibility.As part of our master planning process, we runsimulation models for vehicular traffic that enableus to plan our traffic strategy effectively. Thesesimulations model the flow of traffic, both on theairport campus and on routes connecting to outsidetransport networks. Our goal is to align transportinfrastructure capacity and traffic flow to our userbase’s needs while at the same time promotingmore economical use of resources.To gauge the effects of infrastructural and organizationalmeasures, we simulate traffic flows at differentlevels: Using a macroscopic model, we assessgeneral traffic demand arising in roughly 100 trafficcells on the airport campus in the context of a rangeof expansion scenarios and forecast horizons. Wethen apply these demand projections to transportnetworks to create a picture of traffic loads on networksegments and nodes. This gives us the basiswe need to test our planning assumptions.For detailed planning and functional planning, weuse a microscopic simulation model that can mapthe interplay between individual vehicles in specificnetwork segments.Expanding road and rail networksQuick and efficient landside transport access is extremelyimportant for passengers, airport employeesand visitors. The quality of Munich Airport’s connectionsto the road and rail networks plays a crucial role– for our facility’s ongoing development as an internationaltransport hub and for our region as a whole.Rail access has high priorityFlughafen München GmbH is pushing hard for improvementsto its landside access, particularly on therail side, not least because moving traffic off the roadsand onto rail services helps to avoid harmful emissions.A large proportion of our passenger base alreadytravels to Munich Airport on public transport: In 2009,39 percent of passengers took rapid transit rail andbus services. However, significantly more passengersand airport workers would switch to traveling byrail if a through connection serving the area to theeast of Munich Airport were available and if the facilitywere integrated into the mainline rail network.Passengers’ airport access modes in 2009Transfer passengers Originating passengers (or last mode of transport used to access airport)37%63%42%42%Own car11%6%10%6%TaxiBus 1)32%33%Rapid transit rail1)Assuming 50 percent public and 50 percent private bus traffic6%3%6%3%2008 2009Rental carParty taxi

Company and governancePerformance and growth27An expert review commissioned by the BavarianMinistry for Economic Affairs, Infrastructure, Transportand Technology and prepared in November2009 into how to improve Munich Airport’s railaccess represents a major advance in connectionwith expansion plans for the rail infrastructure inand around Munich.The most urgent task at present is to provide amuch faster service between the airport and Munich’sCentral Station. Improved access from northeastand southeast Bavaria could be provided bycompleting the Neufahrn branch line, the Erdingcircular rail link and the Walpertskirchen branchline. In the longer term, the airport additionallyneeds a connection to the mainline route fromMunich to Mühldorf, Freilassing and Salzburg; thiswill also connect the airport to the EU Trans-EuropeanNetworks’ west-to-east rail artery runningfrom Paris, through Munich and Vienna, to Bratislava.Munich Airport’s goal of connecting aviation withhigh-speed transport on the ground is not just ofmajor importance at the regional level, it is alsoconsistent and compatible with wider national andEuropean transport policy objectives.Shifting traffic from roadto rail helps to reducecarbon emissions

DBClimate strategyEnvironmental and climate protection32Combating climate change is a joint task for the aviationindustry and all of the businesses that operate atairports. Member organizations of the German AirportsAssociation (ADV) have presented a systematicway forward with the definition of a comprehensiveclimate strategy for commercial airports in Germany.This involves carefully tracking emissions and definingmeasures designed to bring about a reduction.The climate strategy at German airports follows onfrom the four-pillar strategy ratified by the aviationindustry in Germany in 2007. With the four-pillarstrategy – based around the development of newtechnologies, efficient infrastructure, optimized operationsand economic instruments – the industry hasarchitected a balanced approach that can minimizeenvironmental impacts yet enable the industry togrow and remain competitive.Classification of emission sources under the Greenhouse Gas ProtocolScope 2Indirect emissions from consumptionof purchased energyCO 2Scope 1Direct emissions from energyproduction and transportationSF 2 CH 4 N 2 O HFCs PCFsScope 3Indirect emissions from theairport’s area of businessBHKWHOTEL KEMPINSKISupply ofnatural gasCarbon footprint 2009Scope 1:Energy generation12.0%Diesel and gasolinefor airport vehicles2.2%Scope 2:Energy purchased3.5%Scope 3:Public transport6.6%Auxiliary power units6.4%LTO cycle60.3%Diesel and gasolinefor outside companies1.0%Energy purchasedby outside companies8.0%

Environmental and climate protectionClimate strategyProf. Ulrich Schumann, Head of the Institute of Atmospheric Physics, German Aerospace Center (DLR)“Global aviation currently generates around 2percent of all anthropogenic carbon emissions –compared to 14 percent in the case of road traffic.Nonetheless, the aviation sector is going to considerablelengths to reduce its specific pollutantemissions. One way in which airports can help tocut emissions is by minimizing traffic holdups.This means avoiding indirect routing, waiting timesin holding patterns, and delays as far as possible.Emissions-based landing charges, too, create incentives for carriers to operateless polluting aircraft.”33Carbon-neutral growth and carbon footprintFlughafen München GmbH embraces its responsibilitytoward the environment and engages in widerangingefforts to minimize and offset its impacts.Part of our approach is to manage the airport’s operationand onward development in such a way thatour impacts on the environment are controlled effectivelyand that we comply with statutory requirementsand environmental regulations.The company’s stated goal is to achieve carbonneutralgrowth by 2020, compared to the baselineyear 2005.In 2008, FMG for this first time published its carbonfootprint. This was computed in accordance with theinternationally accepted Greenhouse Gas Protocol(GHG Protocol), which categorizes emissions bysources.Certified environmental management systemIn 2005, FMG deployed an environmental managementsystem, certified on a voluntary basis in accordancewith the DIN EN ISO 14001 standard and theEU’s Eco-Management and Audit Scheme (EMAS).In 2008, our subsidiary Allresto Flughafen MünchenHotel und Gaststätten GmbH and the KempinskiHotel Airport München, too, were certified to thesestandards, and in 2009, a number of interim auditswere conducted.The purpose of our environmental managementsystem is to identify environmentally relevantprocesses, to set environmental performancetargets and to drive improvement efforts.It also enables us to verify our legal compliancewith statutory requirements and regulations. Noinfringements against environmental laws wereascertained during the review period.Our environmentalmanagement systemsets environmentaltargetsThe GHG Protocol differentiates between threeemission categories: direct emissions caused byself-produced energy (Scope 1); indirect emissionscaused by energy purchases to cover one’s own requirements(Scope 2); and other indirect emissionscaused by third parties like airlines using the airportand by public transport (Scope 3). Our efforts to reduceour emissions footprint also include measuresaimed at encouraging organizations based at the airportto do the same. The introduction of emissionsbasedlanding charges is a case in point.Active environmental management

Energy and carbon managementEnvironmental and climate protection34Energy and carbon managementTo a large extent, efficient energy use is about careful planningand preparation. In line with our target of achieving carbon-neutralgrowth by 2020, we embarked on an in-depth, Group-widecarbon reduction program in 2009, complete with awarenessraisinginitiatives for employees. Between 2009 and 2010 alone,we expect to avoid more than 11,400 tons of carbon emissions.Our carbon managementplan and actionareasSystematic carbon monitoringThe aim of our Group-wide carbon reduction programlaunched in 2009 is to help us accomplish our goal ofcarbon-neutral growth by 2020.The four main action areas in our carbon managementstrategy are sustainable energy provisioning,efficient use of energy, sustainable building andthe fostering of a greater sense of environmentalresponsibility among employees. These four areasoffer potential carbon savings estimated at around11,400 metric tons at Munich Airport between 2009and 2010.Steps to enhance the energy efficiency of our plants,installations and buildings alone will contribute asaving of around 4,900 tons. Other efforts now at theimplementation stage are expected to save a further6,500 tons.One central element in our carbon managementstrategy is a carbon database which we developedand implemented during the past two years. Its purposeis to provide us with a central reporting, controland monitoring tool to track all our efforts aimed atcutting carbon and driving energy efficiency improvements.The database enables us to map emissionsto sources on an accurate and equitable basis andthus identify the best possible emission-reductionmeasures in terms of cost and effectiveness.Mapping emissions to sources is a complex process,given that Munich Airport’s energy supply infrastructureconsists of combined heat, power and coolingsystems, plus additional outside power and districtheat purchases. This means we had to conduct anin-depth analysis of our individual power, heating andcooling energy footprints. However, doing so hasenabled us to match emissions exactly and fairly totheir individual sources. Details of the methods appliedand the results obtained are all contained in ourcarbon database, where authorized users can accessthem over a web-based intranet application wheneverthey wish.We have also developed an additional module,currently undergoing trials, that will allow us to continuallytrack whether our initiatives toward carbonneutralgrowth are being implemented consistently.In addition, it enables us to forecast future emissionsbased on expansion plans at Munich Airport and tocompare these projected emissions against establishedcarbon-saving initiatives. This means we areable to verify at any time whether our carbon reductionplans are still on course.In the review period, approximately 40 carbon-reductioninitiatives were either in progress or completed.

Environmental and climate protectionEnergy and carbon management35Carbon reduction projectEnergy efficiencySense of responsibilityCarbonmanagementEnergy provisioningSustainable buildingMeasures that are especially efficient are discussedin greater detail here:> Energy efficiencyOne key step toward carbon-neutral growth is toboost the efficiency of energy consumption on theairport campus – in our buildings, plants and installations,in vehicle fleets (through the use of bio fuels,for example) and in our computer systems (throughgreen IT). We are currently developing a range ofenergy initiatives targeting not just our administrativebuildings but workplaces all over the airport:>> Example: Terminal ventilation The ventilation systemsfor our two terminal buildings (which togetherhave a room volume of around three million cubic meters)are a big item on Munich Airport’s energy bill anda major source of energy-based emissions. A detailedanalysis of how these systems operate and the airquality in the terminal buildings revealed potential carbonsavings of 3,400 tons. Slowing the air exchangerate at times of the day when there are few people inthe buildings (in other words, at night when flight frequencyis low) allows us to reduce the operating hoursand power requirements of the ventilation systems’drive motors.>> Example: Apron lighting We have also found a wayto reduce the power consumed by our apron lighting atMunich Airport: As of June 2009, we now only switchon around a quarter of the almost 3,000 floodlightsthat illuminate our aprons and parking stands duringthe hours of darkness when they are needed. Thelights are controlled automatically by a computer- andtimetable-driven system. The benefit: We save almosta million kilowatts of power and around 570 tons ofcarbon dioxide annually.>> Example: Parking garage lighting For users’ securityand convenience, we keep Munich Airport’s parkinggarages lit 24 hours a day. To cut the amount of powerconsumed, we decided to switch over to energyefficientlighting technology.During the last two years, we have gradually replacedthe lighting in garages P1 through P10 withmore efficient fluorescent sources. This initiativeis reducing our carbon output by almost 2,000 tonsa year.There are manyways to boost energyefficiency

Energy and carbon managementEnvironmental and climate protection36Two initiatives amongmany: Fuels made fromrenewable sources, andlower power consumptionthrough green ITIn addition, we have fitted around 2,100 lights in garageP20 with new LED lamps, which only becameavailable in large volumes in mid-2009. These consumeover 50 percent less power than the lampspreviously installed and in 2009 enabled us to avoidmore than 200 tons of carbon emissions. If LEDlighting proves to be sustainable in the near termand the pricing and service life continue to improve,this technology will be the right way forward.>> Example: The FMG vehicle fleet We are continuingefforts to switch our fleet vehicles over to alternativedrive systems and fuels. Our goal is to eventuallyreplace fuels produced from finite fossil resourceswith fuels from renewable sources or renewableforms of energy so as to reduce carbon emissions.Many of our ground handling vehicles now run onfuel produced locally from vegetable oil rather thanon conventional diesel. Sweepers and cargo tractors,for example, are powered with cold-pressed rapeseed oil. In standard, production automobiles, weare substituting gasoline with bioethanol. By usingbiogenic fuels like these, we were able to avoid morethan 400 tons of vehicle carbon emissions in 2009.We are also stepping up the use of electric-poweredvehicles in FMG’s fleet. By the end of 2009,a total of 176 electric vehicles – including self-propelledpassenger stairs, conveyor belt vehicles andtugs – were in operation at the airport, as well as122 hybrid tow tractors. We also deployed 25 electrictractors in 2009. The advantage of the purelyelectric-powered vehicles is that they generatezero local emissions and consume no idling fuel.>> Example: Green IT Munich Airport has severaldata centers, more than 3,000 computer workstationswith monitors, a few hundred notebooks andprinters, and a range of other equipment like displaysand information systems, all of which consumea substantial quantity of power.

Environmental and climate protectionEnergy and carbon management37The airport’s combinedheat, power and coolingplantWe have rolled out a range of initiatives to reduceour power consumption in this area. For example,we have successfully made the transition fromusing large numbers of small, local workstationprinters to sharing fewer larger and more efficientmultifunction devices. This has led to significantreductions in the quantities of power and paperconsumed.We are also steadily replacing older personal computerswith newer models that require much lesspower, and any new computer hardware we procurehas to be qualified first to ensure that it meets ourenergy-saving requirements. These efforts have successivelybrought down our power consumptionfrom year to year, with the result that in 2009 ourIT-sector carbon savings totaled 187 tons.Other measures introduced to help save energywith office computers include making the most ofnew power-saving modes. We found, for example,that a screen-saver we had been using on companycomputers was too energy-intensive and have sincereplaced it with the operating system’s own standardscreen saver, which is more economical.Central IT systems commonly produce a largeamount of excess heat and therefore need activecooling. To improve efficiency here, we are graduallytaking steps to reduce the amount of heat generatedin our main data center. In 2009 we also dividedthe center into two areas – warm and cool – to allowit to be cooled more efficiently. This helped us toavoid roughly 209 tons of carbon.> Energy provisioningOur highly efficient co-generating facility at MunichAirport plays a front-line role in our efforts to reduceour overall emissions. This is a combined heat,power and cooling plant with an overall energy efficiencyof around 80 percent. Compared to sourcingpower from the public grid, the plant enables us to

Energy and carbon managementEnvironmental and climate protection38Employees work astrainersavoid around 30,000 tons of carbon a year and createssignificant cost savings. In December 2009 weconverted an absorption chiller to operate with heatpumps, a move that will save an additional 800 tonsof carbon emissions annually.In a joint initiative with local utility company StadtwerkeMünchen and automotive fuel retailer AGIP,Flughafen München GmbH opened a biogas fillingstation in the airport’s public area in March 2009.Here, besides conventional automotive fuel types,motorists can purchase natural gas that includes20 percent biogas.> Sustainable buildingIn the construction sector, FMG’s planners focus onmore than just completing buildings on budget, theyalso look at the entire building life cycle.Over the long term, higher creation costs at the outsetcan lead to lower follow-up costs (in other words,operating expense) that make the higher initial investmentworthwhile. This means that we lookclosely at the possibilities afforded by the architecture,technical systems and operating processeswhen planning and designing our buildings.To underscore our commitment to sustainable growth,Flughafen München GmbH is now a full member ofthe German Sustainable Building Council (DGNB).Going forward, FMG construction projects are to beplanned and conducted in accordance with DGNB criteriaand certified by the DGNB. To accomplish this,we have trained a number of company employees asDGNB auditors and energy consultants.The team of in-house DGNB auditors tracks and monitorsall key areas of sustainable construction – fromenvironmental and economic performance to socioculturaland functional aspects, technology, processesand siting. The conditions tied to an architectural com-

Environmental and climate protectionEnergy and carbon management39Deutsche Gesellschaft für Nachhaltiges Bauen e.V.German Sustainable Building CouncilOur sustainabilitylogo used in employeecommunicationspetition for a new children’s daycare center at the airportVisitors’ Park, for example, are based on sustainablebuilding requirements. With its sustainablebuilding strategy, Flughafen München GmbH aims toreduce carbon emissions at all its new builds by 40percent compared to current buildings on the airportcampus.> Awareness and behavioral changeAlongside our initiatives at the technical level toconserve energy and enhance energy efficiency, weare also working to bring about behavioral changeamong our workforce, because their buy-in is criticalto reducing our carbon footprint.The course content consists of general facts andinformation on climate change plus a range of company-and unit-specific material on resources likeenergy and water. One important focus is on exploringways in which individuals can make a differenceby helping to reduce resource consumption in theirday-to-day work.In 2010, our trainers will hold courses for coworkersin their own units. We are confident that ourmultiplier strategy in combination with extensivecommunications work will enable us to get oursustainability message through to all FlughafenMünchen GmbH employees.We hope to reduce energy consumption andexpenditure through efforts to raise awarenesscompany-wide of the importance of protecting theenvironment and conserving resources. At the centerof these efforts is a specially developed multistagetraining program that we intend to deliver onas large a scale as possible across all our businessunits. In a two-day train-the-trainers seminar duringthe summer of 2009, 16 company employees fromvarious units qualified to hold our awareness-raisingcourses.

Environmental performanceEnvironmental and climate protection40Environmental performanceAt Munich Airport we strive to keep our environmental footprintas small as possible. To control air pollutant levels and continuereducing aviation noise, we have created economic incentives toencourage carriers to operate low-emission aircraft and are championingefforts to optimize arrival and departure procedures.A common objective:Less aviation noiseReducing aviation noiseSince jet engines were first introduced more than40 years ago, aircraft noise levels during takeoffand landing operations have been cut by almost 90percent – for the most part thanks to low-emissionengine technology and improved aerodynamics.The body in charge of aircraft noise certification isthe International Civil Aviation Organization (ICAO).It conducts type certifications and issues trafficpermits and noise certificates for new planes. Theban on noisy aircraft in Europe introduced in 2002has led to a noticeable improvement in the overallaviation noise situation.The most recent and stringent noise limits for jetand propeller aircraft were set in September 2001.All aircraft type-certified after January 1, 2006, arerequired to comply with these limits.This means that, going forward, we can expect tosee sound pressure levels of individual noise eventslike takeoffs drop by around 3 decibel.Aviation noise commissionThe Commission on Aviation Noise and Air Pollutionat Munich Airport is a body made of up representativesof Munich Airport, air traffic control operatorDeutsche Flugsicherung GmbH (DFS), the airlines,the airport region and government offices. Not onlydoes the Commission meet at regular intervals, itsmembers are also in constant contact as part ofongoing efforts to further reduce aviation noise atthe airport. These efforts include:– Planning of arrival and departure proceduresby DFS– Targeted efforts by airlines to reduce fleets’ noiseemissions for economic and environmental reasons– Implementation of statutory regulations and requirementsconcerning aviation noise by FlughafenMünchen GmbHManaging complaints about aviation noiseAs part of its wider complaints management program,Munich Airport operates a phone line specifically forcomplaints from neighbors affected by noise. Besideshandling complaints, agents also answer any questionscallers may have on the general noise situation.To provide our agents with the requisite factual basisto answer callers’ questions, to allow us to track aviationnoise patterns and to identify aircraft noise classes

Environmental and climate protectionEnvironmental performancefor the purpose of charging landing fees, we monitoraviation noise levels continuously. Munich Airportaccomplishes this using a network of 16 measuringstations at fixed locations. We also have three mobilemeasuring units that we can set up to precisely testspecific noise situations in places where we have nofixed measuring stations.During regular operations, air traffic is not allowedto deviate from set departure routes without priorapproval from DFS. Exceptions can be granted –to allow aircraft to avoid weather patterns, for example.During daytime hours, air traffic control may,on an individual basis, guide departing jets flyingat altitudes greater than 5,000 feet (1,524 meters)above ground and propeller aircraft higher than3,000 feet (914 meters) above ground on individuallydefined courses that are outside of regular departureroutes.Easier on the environment: CDAAt Munich Airport, we are currently trialing ContinuousDescent Approach (CDA), an approach methodthat promises significant environmental benefits.With CDA, pilots run their engines on idle power foras long as possible while they make their descent;this helps to reduce noise and save fuel beforeplanes begin their final approach. CDA is a feasibleoption with almost 10 percent of flights at timeswhen there is relatively little traffic. We plan tomake CDA part of our standard operating practicefrom mid-2010 onwards.Airport collaborative decision makingAirport CDM is an operational approach designedto coordinate all parties involved in flight operations– airports, airlines, ground handlers and air trafficcontrol – and streamline handling so as to makeoptimum use of resources, ensure punctuality andmaximize efficiency.Essentially, airport CDM involves gathering andcollating key turnaround information from everyoneinvolved in the process and leveraging that informationto coordinate and optimize decisions. An airlineor other airspace user sets an intended takeoff timeby which all of the handling services need to havebeen completed and the plane must be ready tomove off the stand. Air traffic control can then allocatethe pilot a guaranteed takeoff time. Defined byEurocontrol, this process has, to date, only beenrolled out in full at Munich Airport, where it has hada firm place in our operating procedures since 2007.Among other things, airport CDM has succeeded inshortening aircraft waiting times at runway headsby almost two minutes, helping to reduce costs andenvironmental impacts. During the pilot phase,which began in 2005, and since its official rollout,airport CDM has saved around 6,800 tons of carbonemissions.41A new approach procedurereduces keroseneconsumption and noiseContinuous sound pressure level (Leq 3) in dB(A) 1) recorded at four measuring stations during the six busiest monthson main departure routesNighttime Leq 3 (6 mo.)Daytime Leq 3 (6 mo.)Station 2009 2008 Station 2009 2008Brandstadel 46 46 Brandstadel 58 57Pallhausen 40 42 Pallhausen 55 55Reisen 48 48 Reisen 55 56Viehlassmoos 41 43 Viehlassmoos 54 561)Since the enactment of new aviation noise legislation in Germany on June 7, 2007, the key metric applied in assessing aviation noise exposure has been theenergy-equivalent sound pressure level Leq 3 during the day and at night. Exposure assessments also take the noise level frequency at night into account. Becauseof variance in the operating direction, changes to departure routes, changes in route usage, and differences in operating times on account of closures (dueto extreme weather or technical problems, for example), these figures are not directly comparable.For detailed monthly noise figures recorded at our fixed measuring stations, visitwww.munich-airport.de/en/company/umwelt/laerm/index.jsp

Environmental and climate protectionEnvironmental performanceNitrogen dioxide levels measured at the airportμg/m340200NO 2 limit4630NO 2 concentration44292007 2008measured here averaged 27 micrograms per cubicmeter, compared to 24–31 micrograms per cubicmeter from 2004 to 2008.Nitrogen dioxide levels at the airport are approximatelythe same as those measured in Germantowns like Ingolstadt, Bamberg, Würzburg orLandshut. Levels in Andechs, Garmisch and Regenare lower, whereas levels in downtown Munich (onPrinzregentenstrasse and at Karlsplatz/Stachus) aresignificantly higher than at the airport.42292009The figures from both measuring stations are retrievedautomatically every day over a remote datalink and are included in monthly noise and emissionsreports published on our website .During the review period, the mean annual level ofparticulate matter (PM10) measured was 20 microgramsper cubic meter. In comparison, the mean levelsfor 2004–2008 ranged from 17 to 28 microgramsper cubic meter.Levels of other pollutants caused by airport operationsand aviation are generally very low. Thesesubstances are also monitored, and figures are publishedmonthly in Flughafen München GmbH’s noiseand emissions reports.The type R134a refrigerant used in chiller machineson campus is contained in hermetically sealed,closed-loop systems. All the facilities that use it areequipped with gas alarm systems that can identifyleaks. The airport has four turbo chillers, each filledwith 1,270 kilograms of R134a. We also have ascrew-type chiller that contains 256 kilograms, bringingthe total up to 5,336 kilos.43 See www.munichairport.de/en/company/umwelt/imm_2010Air pollutant levelscaused by airport operationsare at prior-yearlevels

Environmental and climate protectionResource stewardship45In line with our principles of reducing and recycling,we have our own waste management system inplace to recover valuable materials. Given the risingcosts of energy today, using secondary raw materialsoffers an important means of reducing disposalexpense, which can be a significant competitivefactor for businesses.One basic requirement in recycling is to strictlyseparate recoverable fractions from waste. Wehave five waste collection points on the airportcampus where specially trained staff separate andsort the various different materials. These fractionsare then either recycled or handed over to certifiedwaste management specialists for safe andWaste management:We carefully separaterecoverables from waste

Resource stewardshipEnvironmental and climate protection46Mobility managementhelps to reduce traffic’scarbon emissionsproper disposal. To help streamline the recyclingprocess, we have four-segment waste bins in ouroffice buildings so that paper, mixed recoverables,organic waste and residual waste are separated atsource.Hazardous materials: Controls and trainingBusinesses involved in transporting hazardousgoods by rail, road or air are required to have atleast one company hazardous materials supervisor,and at Flughafen München GmbH we appointedour first hazmat officer in 2007. During the courseof 2009, we handled a total of 237 metric tons ofwaste classed as hazardous material destined fordisposal.As part of our safety procedures, we carried outspot checks to ensure that the vehicles used totransport hazardous substances were up to code,roadworthy and fully operational. We also providedemployees with regular training on handling hazardoussubstances in accordance with statutoryrequirements. In 2009, we recorded five accidentsinvolving the handling of hazardous substances.Mobility management protects the environmentThrough our company mobility management initiativeswe aim to promote more efficient mobility bysetting strategic targets and creating practical incentives.Our goals are to bring down automobile carbonemissions, reduce motor traffic through car-sharing,and encourage car users to switch to more environment-friendlyalternatives like public mass transit systems.Company mobility management can also helpto improve employee satisfaction and productivitywhile at the same time reducing the costs caused bycompany and employee traffic. The potential carbonsavings that could be achieved if more employeesswitched from cars to public transport could run to asmuch as 790 tons a year. At FMG we have taken partin a campaign to promote energy-efficient mobilitylaunched by the Federal Ministry for the Environment,Nature Conservation and Nuclear Safety (BMU) andthe Germany Energy Agency (dena), and in a programto promote company mobility management operatedby the City of Munich. These initiatives prompted usto review our options at FMG and define an actionplan for mobility management as well as proceduresfor assessing its potential.

Environmental and climate protectionResource stewardship47Promoting public transportThe majority of air travelers (42 percent) and airportworkers (65 percent) travel to and from the airportby car, whereas 36 percent of passengers and 27percent of airport workers use public transport(rapid transit rail and bus services). To encourage agreater number of our passengers to switch to moreenvironment-friendly means of transport, FMG islobbying for the rapid creation of an express rail linkbetween the airport and the state capital, Munich,and pressing for the completion of the Erding circularrail link to the east of the airport. The company is alsokeen to encourage travelers and airport workers touse the wide range of bus services to and from citiesand towns throughout the region, including Munich,Landshut and Ingolstadt.Our aim is to quicklyimplement an expressrail link between theairport and the city ofMunichIn addition, we offer employees reduced-rate jobtickets for public transport services . See p.26Employees’ airport campus 1) access modes in 2009Bus9%Motorbike1%Car65%Rail18%Plane 2)2%Two alternatingmodes5%1)The campus includes all companies located at the airport.2)Five flight attendants working on shuttle services and one Deutsche Lufthansa employeestated that they regularly traveled by plane from their home town to Munich Airport to work.Source: FMG 2008-2009 employee survey, 306 respondents

Biotope and land managementEnvironmental and climate protection48Biotope and land managementMuch of the airport campus – roughly two-thirds – consists ofgreen areas which, together with a chain of biotopes and compensatorymitigation sites around the perimeter, provide a perfecthabitat for rare bird and plant species. In close collaboration withconservation agencies, we are working to preserve the naturallandscape and protect biodiversity.The airport and nearbyareas have been declareda European birdsanctuaryA green-field siteBuilding Munich Airport inevitably had a sizeableimpact on the local ecological balance. However, themarshland of Erdinger Moos had already been usedintensively for agriculture for a long time and was byno means a pristine natural landscape at the time theconstruction work began. Decades before the initialplanning work on the airport started, Erdinger Moosand the Isar wetlands had lost much of their originalappearance, as the land was drained extensively inthe nineteenth century and later reclaimed still furtherthrough the construction of canals.To limit the airport’s ecological impacts as far aspossible, zoning approval was conditional on theimplementation of a variety of compensatory measuresin the airport’s immediate peripheral and widersurrounding areas.Roughly two-thirds of the airport’s overall area ofalmost 1,600 hectares are green, and the landscapedperimeter areas and the compensatory and mitigativesites around the airport currently encompass another670 hectares or so.Preserving biodiversity and the landscapeThe area around the airport has become home tomany rare species of bird. Thanks to the creationof low-maintenance, dry grassland areas and otherbiotope management initiatives designed to helpprevent bird strike, the conservation value of theairport’s green areas has increased significantly.Species like the curlew, the common skylark, andthe corn bunting have settled here.Curlews are on Bavaria’s list of threatened speciesand are classed as critically endangered. Statewidethere are only 400 breeding pairs, of whichbetween 50 and 60 live on the airport campus. Herethey find the conditions they need in order to thrive:low-nutrient grassland, with grass that is short inthe spring and mown infrequently.The airport and its surrounding conservation areasnow rank as an important European bird sanctuary.Besides the curlew, the bird population hereincludes some 500 lapwing pairs. The zone alsoencompasses areas further afield, such as theFreisinger Moos marshland.

Environmental and climate protectionBiotope and land management49In the web of biotopes and compensatory mitigationsites around the airport, protected plant specieslike the common pasque flower and the globedaisy are thriving that are exceptionally rare elsewhere.In the wetland areas, there are many lesscommon plant varieties, some highly endangered,including lousewort, the common pasque flower,and bird’s-eye primrose as well as various orchidsand the rare Siberian Iris.By allowing former arable tracts to lie fallow andby stopping fertilizer use and repeated reworkingof the soil, we have succeeded in protecting thegroundwater across a wide area. To monitor theeffects of initiatives like these, we carry out annualsurveys with the help of the nature conservationauthorities.Habitats for rare animaland plant speciesThe airport’s total area and protected areas in 2009Hectares (ha) Total area: 1,575 ha Additional green areas: 668 haPaved areas628 haUnpaved areas947 haGreen belt250 haCompensatoryareas418 ha

MunichLos AngelesDeath Valley, California, USA The most arid national park in the United States isonly a few hundred kilometers from the Pacific Ocean. Sand dunes up to 50meters high are interspersed with mighty, igneous rock outcrops and bizarrelyshaped salt formations.Change The more precisely we focus and apply ourabilities and the more consistently we tap our potential,the more we can accomplish. We remain opento new ideas that can help us combine businesssuccess with social and environmental compatibility.

52Workforce and work environmentHuman resources strategy and managementVocational and career trainingHuman resources training and developmentIndustrial safety and health management

Workforce and work environmentHuman resources strategy and managementHuman resources strategy and management53We help our employees to identify and unlock their growth potentialand successfully balance work and family life. We want toremain an attractive and responsible employer, particularly in lightof current demographic and labor market change, and are workingto ensure that we as a company – and our people – continue toadvance and develop.Successful HR strategiesWith an overall workforce of around 30,000 people,Munich Airport is the largest place of employment inthe region. Flughafen München GmbH and its subsidiariesalone have almost 7,700 employees and,taken together, are the second-largest employerat the airport after Deutsche Lufthansa AG with itsheadcount of 9,200.Successful human resources management is fundamentalto our continued growth and success as abusiness. To accomplish this, our Human Resourcesdivision pursues five key goals: to raise our appeal asan employer; to provide managers with professionalsupport on HR issues; to create the HR conditionsessential for innovation and growth; to drive theimplementation of the company’s overall strategy;and to streamline internal and external HR managementprocesses. A carefully targeted HR strategy likethis contributes significantly toward increasing thecompany’s value while at the same time exemplifyingour understanding of what constitutes successfulHR management at core, namely supporting andpositively challenging employees.HR management’score tasks are to supportand positively challengeemployeesHuman Resources (HR) strategic architectureOur coreprincipleAs a role model for innovative,value-driven HR management, we expect and encourageemployees to be willing to adapt and to have a performance-driven mindsetVisionOur taskThrough efficient HR management, we deliver a measurable contribution toward increasing the company’s valueMissionWe aimto ensureAttractivenessas an employerSupport formanagers on HRissuesHR capable ofsustaining innovationand growthSuccessfulimplementation ofcompany strategyEfficient HRprocessesTarget areasWe wantto beA business partnerA human resourcesexpertProfessional Customer-focused InnovativeSelfperceptionRolesValues

Human resources strategy and managementWorkforce and work environment54 Seewww.airporthr.aeroMost of our workforcelives locallyInternational networking plays a valuable part in ourapproach to HR management. For example, wecollaborate actively with other HR professionalsthrough Airport HR-Net Europe, a body set up topromote the development of innovative and efficientHR management tools and resources. Itshighly successful knowledge networking platformfor HR experts was recently re-launched with a newdesign and extended functionality .Personnel expense and social benefitsEmployee salaries across the whole of FlughafenMünchen GmbH’s workforce averaged approximately€40,500 in 2009. This is well above thenational average in Germany in the transport andlogistics industry. This figure includes everyone fromupper management to part-time and marginally employedworkers. All our employees are remuneratedaccording to their qualifications and performance.The FMG Group’s HR expense in 2009 totaled€309.3 million, including €222.5 million at FlughafenMünchen GmbH. The latter figure comprises €174.4million in wages, salaries, and travel and meal subsidies,plus €48.1 million in social security levies andretirement and support provisions.Fifty-eight percent of FMG employees live in thedistricts of Erding, Freising and Landshut (status:December 2009), which means that they are airportneighbors. In 2009, the employee turnover rate was3.8 percent at Flughafen München GmbH and 6.9percent group-wide.If employees elect to take part in job-related onwardtraining on their own initiative and in their free time,Flughafen München GmbH carries 50 percent of thecosts up to a maximum of €1,250. To qualify for thefull amount, employees must remain with the companyfor at least 24 months on completion of thetraining. We also grant employees unpaid leave toattend onward training programs.Living diversityIn an international business like ours, which benefitsfrom the heterogeneity of its people and their differentmindsets and cultural backgrounds, mutual acceptanceand appreciation are key. Living diversityis thus an established part of our corporate culture.It is also underpinned by law: The Equal TreatmentAct (AGG) in Germany created a legal frameworkdesigned to support and promote diversity. The Actprohibits discrimination against employees on thebasis of race, ethnic background, gender, religiouspersuasion, ideology, disability, sexual identity or age.At FMG we ensure that our managerial employeesreceive special training and detailed informationregarding this legislation. We have also publisheddocuments on the corporate intranet to familiarizeour employee base with the Act’s fundamentalprovisions. During the review period, we recordedno complaints concerning discrimination.Flughafen München GmbH is also actively engagedin efforts to support employees with serious disabilities.For many years now, we have employed significantlymore people with severe handicaps (or withequivalent status from a labor market perspective)than the 5 percent statutory requirement. In 2009,people with a serious disability accounted for9.6 percent of our workforce.Responsible employment practicesThe FMG Group’s entire workforce is employedaccording to the terms defined in collective payscale agreements. Under these agreements, thereis no discrimination between wages paid to menand women.As a member of the regional public employers’ association,we are bound by the TVöD collective payscale agreement for the public sector. However, ouremployees’ entitlements significantly exceed those

Workforce and work environmentHuman resources strategy and managementAnna Müller, Flughafen München GmbH supervisory board and works council member 1)“The company invests an enormous amount inemployee training – something that I find reallyimportant as a works council member, because ithelps to make us future-proof. I’m proud of thefact that by working together in a spirit of mutualtrust, we and the company repeatedly succeed incoming up with constructive, workable solutionsin difficult situations. In the interests of our employeesand in light of demographic change, weare also working to promote ways of balancing jobs and family life. However,one thing I’d like to see going forward is more women in senior jobs.”571)Spokesperson for the Committee on Equality, Family Affairs and Careers, and founder member of the Women at FMG working group340 beds at very affordable prices. The hostels areideal for interns, vocational trainees and shift workerslooking for shorter-term accommodation closeto the airport.The five employee restaurants on the airport campusserve subsidized meals and refreshments.Thanks to special arrangements with the airlines,event organizers, hotels and car hire companies,FMG Group employees can also make personaltravel arrangements at favorable prices through theFMG travel agency.Our in-house insurance service, set up in October2001, helps FMG Group employees and their familiesto purchase all kinds of private insurance. Airportemployees can also consult experts on site forindependent advice on national pension insuranceand additional pension cover available from Bavaria’ssupplementary pension fund for public serviceemployees.Work-family policy auditsA family-friendly employment policy plays a crucialrole in helping employees to successfully balance careersand family life. Our support for flexible workingarrangements, our company daycare center, and ourspecial travel and R&R offerings all have a strong,positive influence on our appeal as an employer, onour employees’ motivation levels, and on productivity.To underscore the importance we place on being afamily-friendly employer, we have had our work-familypolicy audited by the organization berufundfamiliegGmbH, an initiative of the charitable Hertie Foundation.The organization’s audits are intended as a strategicmanagement tool to help businesses implementfamily-friendly HR policies and continuouslyimprove the options available to working people tobalance careers with families.Aerogate, an FMG subsidiary, successfully completedcertification for the third time in December2009. Another subsidiary, mucground, received anaward from berufundfamilie gGmbH in April 2009 inrecognition of its accomplishments as a familyfriendlycompany. And Flughafen München GmbH,which first underwent a berufundfamilie audit in2007, now plans to complete recertification in 2010and held a number of preparatory workshops forthose involved in late 2009.FMG has beencertified as a familyfriendlyemployer

Vocational and career trainingWorkforce and work environment58Vocational and career trainingWe are not just one of the largest employers in the region, weare also a leading vocational training provider. To offer young peoplethe best possible start in their working lives, we work closelywith schools and other organizations in the education sector toengage with students early on and inform them about thebreadth of career options and opportunities in our industry.Our career trainingprograms reflect ourcommitment tosupport youngergenerationsModel training programsThe current demographic trend, with its decliningbirth rate and the resulting shortage of skilled andspecialized workers, will gradually make it more andmore difficult for service-driven businesses likeours to find the vocational trainees and high potentialswe need. One of our initiatives at FlughafenMünchen GmbH to address this challenge has beento roll out an e-recruiting system. Launched in September2009, the system is designed to optimizethe entire application process and to help us identifythe kind of talent we need. We also remainfirmly committed to providing high standards ofvocational and career training for up-and-cominggenerations – something we regard as a core socialresponsibility.As part of company-wide HR marketing program,FMG has signed agreements with four schools inthe region aimed at stepping up collaboration.Together with the vocational college, Josef Hillersecondary school, and the technical and career collegein Freising and with the combined elementaryand secondary school in Erding, we are developingprojects designed to help students choose careertracks and achieve the grades they need in order towin places on vocational training programs. We arealso helping to find internship and job placementsfor teachers and students. Going forward, we planto invite schools’ head teachers and representativesto airport events and to promote an exchange ofknowledge and information with other educators inconnection with aviation.One of the region’s foremost training providersAt the end of 2009, 266 young people were on FMGtraining programs, preparing for jobs in fields likemechatronics, protection and security, cooking andcatering, and real-estate. This means that the FMGGroup remains one of the largest vocational trainingproviders in the region. Through this role, we domore than create youth opportunities, we also helpto promote social stability, strengthen the economyand engage with our future employee base. In September2009, 79 school leavers completed a threedaysoft-skills training course before embarking onvocational and work-study programs with FlughafenMünchen GmbH and its subsidiaries.Wide-ranging training opportunitiesAlongside training for classic career tracks, the FMGGroup also offers a number of new and innovativevocational programs, including event management andsystem gastronomy, plus two university-level workstudyprograms. The latter combine practical work inone of our companies with academic classroom theoryat a senior technical college or university, and culminatein a bachelor’s degree. School-leavers inter-

Workforce and work environmentVocational and career training59ested in this kind of program can choose betweena bachelor of science qualification in business IT anda bachelor of arts in aviation management. This newform of higher education offers fast, highly focusedlearning at a college or university combined withhands-on work experience in which participants putwhat they have learned into practice. The speed of jobfamiliarization possible with this kind of program,along with the greater depth of understanding forcompany procedures and processes and the readymadenetworks of contacts it offers are all valuableadvantages – both for the students and their employer.Support from training officersOne clear measure of the high quality of the trainingand the success of the vocational programs wedeliver at Munich Airport are the exceptional scoresachieved by trainees in their final exams. Clearly, thishas a lot to do with the personal dedication of theyoung people on these programs; however, it is alsodue in part to the outstanding support they receivefrom our training and teaching staff. There are currentlyaround 100 employees who work for our centraltraining department, sharing their professionalknowledge, skills and expertise with our trainees andprovide them with individual support and attention.Training courses (all years) available in the FMG GroupNumber of trainees at start of year January 1, 2009Aviation services 78Mechatronics 33Office management 27Aviation management (BA) 20Office communications 19Business IT (BS) 17Cooking and catering 15Retail 14Warehouse logistics 13Protection and security 8Restaurant management 7Real estate management 6Hospitality 4Event management 2System gastronomy 2IT systems analysis 1Total 266

Vocational and career trainingWorkforce and work environment60Our youth initiativesinclude Girls’ Day, careerorientation shows, andresearch competitionsCareer insights and opportunitiesFlughafen München GmbH offers students in schools,colleges and universities opportunities to completeinternships in various fields. We also announce andassign bachelor’s and master’s degree dissertationtopics in connection with specific projects. In 2009,104 college and university students and 116 schoolstudents elected to take an internship with our companyor one of our subsidiaries.We are also actively involved in EQJ and “Joblinge,”two programs set up to create career entry opportunitiesfor committed and qualifying youngsters unableto obtain a place on a vocational training scheme.These programs offer young people preparatory trainingas interns that improves their chances of successwhen it comes to finding the right path into the labormarket.Initiatives outside the companyFMG is also involved in initiatives beyond the sphereof vocational and career training and takes on avariety of tasks outside its own group of companiesat the national and international level. For example,Flughafen München GmbH is the primary sponsor ofthe careers orientation show Berufsfit, is a partner ofGirls’ Day and the “Jugend denkt Zukunft” innovationinitiative, and hosts the “Jugend forscht” and “Schülerexperimentieren” youth research competitions. Ourmost prominent project in 2009 was Berufsfit, whichtook place from October 15 to October 17, and washosted by Munich Airport for the sixth time.Organized by “SCHULEWIRTSCHAFT,” a localworking group set up to promote dialogue betweenthe education sector and the labor market, the showaims to encourage students in schools to beginthinking about possible career tracks in good time.Numerous schools, colleges and universities, alongwith 80 businesses offering job training programs,exhibited at Berufsfit 2009, showcasing a choice ofmore than 280 educational and career trainingprograms. The event attracted around 10,000 visitors.Investing in tomorrowTo encourage young women to consider careers infields that are traditionally the domain of men,Flughafen München GmbH in April 2009 offeredaround 20 girls the opportunity for a behind-thesceneslook at the kinds of work people do at theairport. Known as Girls’ Day, this initiative is anexcellent opportunity for girls to find out about fieldsof work more typically associated with men (protectionand security or mechatronics, for example) andto make potentially valuable contacts in our organizationat the same time.The “Jugend denkt Zukunft” initiative and the“Jugend forscht” and “Schüler experimentieren”competitions aim to encourage school students at arange of age levels to develop their own visions ofthe future and to create innovations. With the supportof participating businesses, the students simulateinnovation processes, engage in their ownresearch projects and come up with inventionswhich are then presented for review by an expertjury panel and put on display for the general public.

Human resources training and developmentWorkforce and work environment62Human resources training and developmentGiven the constantly changing challenges facing labor today,our people need to learn and evolve continuously. This is whywe provide professional training – locally and internationally –for the whole of the airport’s workforce and operate advancedleadership development programs.Assessing andadvancing leadershiptalentProfessional training and developmentFor an international commercial airport like ours, offeringtraining opportunities in foreign countries for people atevery level in the company, from vocational trainees toexecutives, is just as important as providing tailored professionaltraining in locally based seminars and courses.Through the Leonardo da Vinci program, for example,trainees and company employees have the chance tospend time working at other airports in Europe, and in2009, 20 of our trainees took the opportunity to expandtheir knowledge and sharpen their skills by spendingtime working abroad at partner airports in Vienna, Athens,Lisbon and Malta. In addition, staff from our terminaland passengers services, master planning, environmentalmanagement and engineering departmentsworked at our partner airport in Rome to accumulatevaluable additional experience in their respective fields.This arrangement worked both ways, with airportemployees from Rome and Athens spending time atMunich Airport to experience first-hand how our variousunits operate. We also collaborated closely with two sisterairports in 2009, Nagoya in Japan and Denver in theUnited States, organizing workshops and exchange programsfor management-level employees designed toexpose them to new thinking and ideas and to advancetheir cross-cultural soft skills.Leadership managementOne key focus of our HR development initiatives atFMG in 2009 was on advising and consulting withmanagement-level employees to carefully evaluate theirleadership potential. The outcomes of these systematicassessments and analyses, which are geared to providinghigh potentials with the maximum possible supportin their daily work, helped break ground for an onwardleadership development program to be launched in 2010.We also organized workshops and team trainings formanagers in FMG subsidiaries and conducted severalassessment centers within the FMG Group to selectand groom candidates for future managerial posts.Likewise in 2009, we set up a leadership forum – anew platform aimed primarily at level-three managers– designed to support information sharing and tospotlight current real-life issues relevant in the contextof leadership development training. The forum is moderatedby a member of our HR development team.Target-driven managementEvery central, business and support division withinFMG sets its targets in balanced score cards (BSC)that serve to track performance annually accordingto key metrics.

Workforce and work environmentHuman resources training and development63Munich Airport Academy:Building skills in manyareasWe define specific advancement tracks for all ouremployees, regardless of rank or role and, basedon the BSCs, we agree targets and conduct performanceappraisals with all our people – not just withmanagement-level employees. We operate a performance-basedremuneration system for first- andsecond-level managers that ensures compensationis set according to their specific capabilities and performance;we also have a parallel performance-basedremuneration for those employees not in a leadershiprole, which was rolled out in 2007.The Munich Airport Academy portfolioThe Munich Airport Academy’s task is to provide onwardprofessional training for the whole of our employeepopulation. The breadth of training offered by theAcademy ranges from specialist in specific aviationindustryfields to general courses and programs toadvance employees’ IT expertise, foreign languageskills and personal development. In 2009, the Academyorganized 3,258 seminars and workshops, delivering3,026 days of training to 23,354 attendees.Aviation trainingAviation training initiatives center on providing employeesin our Aviation and Ground Handling divisions with theprofessional skills and qualifications they need to help usto maintain our high level of operating efficiency at the airport.Our exceptional results in recent years in the annualsurveys conducted by Skytrax are due in no small part tothe quality of the training we provide in this area.Security trainingWe have stepped up security training in responseto new legislation on aviation security enacted inGermany in 2008. Under the new law, all employeeswith access to the airport’s secure areas are requiredto attend classroom and practical training on a fiveyearcycle. The object of this training is to heightenemployees’ overall familiarity with security requirementsand procedures at our airport. Besides basictraining for aviation security officers and securitypersonnel, we also provide refresher courses aimedat further improving our high security standards. In2009, around 7,000 employees completed onlinetrainings, and a further 5,000 attended classroomseminars on security held by the Munich AirportAcademy.Computer-based trainingFor our workforce, keeping pace with markets andcustomers’ changing needs and expectations meansconstantly extending and fine-tuning their knowledgeand skills. To help them stay ahead of the curve, weprovide various onward training programs, completewith tailored, division-specific offerings, whichwe adapt and update every year. One importantinnovation in 2009 was a program of walk-in trainingintroduced to help employees improve their officesoftware skills. This takes a self-paced approach thatcombines computer-based training with one-on-onesupport from a walk-in mentor.

Industrial safety and health managementWorkforce and work environment64Industrial safety and health managementAs an employer, we are duty-bound to ensure a healthy workenvironment and high standards of industrial safety. To keep ourpeople fit and well, we operate an active health managementsystem, complete with a variety of sports offerings, and conductcarefully targeted health maintenance programs. Our industryleadingefforts in this area have won us several awards.Award-winning healthmanagement initiativesIndustrial safety is of central importanceHigh standards of industrial health and safety arefirmly anchored in our corporate culture. Our aim is tocontinue to ensure that our people are protectedagainst physical injury and ill health and to reduce ourdirect and indirect costs at the same time.Flughafen München GmbH pursues a rigorous courseof industrial safety and goes to great lengths to guardagainst accidents and job-related illness. Besides thelegally required quarterly meetings of our industrialhealth and safety committee and our cadre of safetyofficers, we hold additional, voluntary meetings eachmonth with our IHS staff, the works council and theairport’s medical service to discuss current employeehealth topics. Where required, we also deliver statutorytrainings on industrial health and safety to ourvarious business units. In 2009, we registered a totalof 191 reportable occupational and commuting accidents,resulting in 3,725 days of employee absence.We have had no fatal work accidents since 2002.Company health managementSince 2004, Flughafen München GmbH has had acorporate health management system in place, setup to sustain and promote sound health among ourworkforce. Its focuses include industrial health andsafety, health-aware management, addiction and behavioralcounseling, and overall health maintenance.Our health management system also helps to spotlightand bring out into the open current and oftencomplex issues like addiction, bullying, depressionand burnout. We work closely here with specialistson prevention to find solutions to problems like thesebased on end-to-end, holistic approaches.Quality awardsIn 2008, our health management system was honoredwith a gold standard certificate for “comprehensivein-company health management” from the BavarianMinistry of the Environment, Public Health andConsumer Protection. This was followed by another

Workforce and work environmentIndustrial safety and health management65honor in December 2009: Markus Sackmann, secretaryof state at Bavaria’s social welfare ministry,presented FMG president and CEO Michael Kerklohwith the TOP Health Management Award 2009.The award was conferred by consultants TG LifeConcept GmbH in association with Bavaria’s socialwelfare ministry and Techniker Krankenkasse, ahealth insurance carrier, in recognition of the qualityand breadth of efforts by businesses to promote thehealth, performance potential and motivation of theiremployees. With this award, Flughafen MünchenGmbH has won the official title of “Bavaria’s fittestcompany.”Putting people firstIn December 2008, the company and the workscouncil launched a joint project titled People First.Involving 150 employees from throughout FMG andscheduled to run for 18 months, the project setsout to identify the root causes behind an anomalousrise in sick leave rates in one part of the companyand to define measures to address the problem.We also hope that the project will help us developsuitable analysis methods and key performance indicatorsthat we can apply to the entire FMG Group,and thus further improve our occupational healthmanagement.Through a systematic, structured and focusedanalysis of working conditions and work stationsin line with new quality standards and KPIs, wehope to develop standardized basic processes thatwill enable us to introduce improvements in problematicareas of occupation and reduce burdenson employees. By regularly reviewing these basicprocesses and their outcomes, we can refine andoptimize them continuously and, thus, bring aboutlasting improvements in our employees’ wellbeingand satisfaction.People First is one of the largest corporate healthmanagement programs in operation in Germanytoday.

68Social responsibility andregional engagementOur role in the economyStakeholder dialogueCollaboration with the region

Social responsibility and regional engagementOur role in the economyOur role in the economy69Munich Airport is a constant source of new economic stimulus,both in Bavaria and beyond. As an economic powerhouse anda major employer in our region, we offer a wide diversity of jobswith a future – jobs that cannot be exported to other countries.We are a local value multiplier and employment driver withexcellent prospects for the future.Protecting our futureMunich Airport regularly receives exceptional approvalscores from air travelers. Our popular appealand consistent and outstanding efficiency are twohighly important success factors. The airport alsobenefits significantly from its geographic locationin the center of Europe, a factor that has becomeall the more important with the expansion of theEuropean Union.Bavaria is one of Europe’s most successful regions.For the state’s heavily export-centric economy,having easy access to a major internationalairport is of exceptional importance.The airport is animportant locationfactor

Social responsibility and regional engagementOur role in the economy71> Effects from airport operationsThe direct effects encompass production, administrativeand personnel expense, capital spending,revenue and jobs that result from airport operations.The indirect effects include value added, employmentand revenue created through contractsawarded by businesses at the airport to companiesoutside the airport. There are also induced effectsin the form of value added, employment and revenuegenerated by the goods and services purchasedby airport workers and people not employedat the airport directly.>> Companies’ expenditures at Munich AirportIn 2005, the organizations operating at Munich Airportspent an estimated €3.6 billion on products and servicesand on capital goods 1) . Around two-thirds of thisspending was with businesses outside the airport, including€1.4 billion in the airport’s environs 2) . In 2009,Flughafen München GmbH alone, excluding its subsidiaries,purchased goods and services worth €34.5 millionsourced in the Erding and Freising districts. 3 )>> Wages and salaries paid by organizations at MunichAirport In 2009 the wages and salaries paid byall employers at Munich Airport totaled roughly€1.096 billion. More than €740 million were paid toemployees living in the airport’s surrounding area.Rates of pay across all 29,560 airport employees, includingpart-time and marginally employed individuals,have increased significantly. Employees earn€37,089 annually, on average. This figure has grownby around 16 percent in the period from 2006 to2009, or roughly 5 percent per year.The average wage across all employees on campus,including part-time and marginal workers, is agood €10,000 higher than the average rate of payin Germany in the transport and logistics industry(as defined in the federal government’s Classificationof Economic Activities 2008) according to fig-1)Ernst Basler + Partner / BulwienGesa AG (2007), Zoning Report, pp. 54–582)The 72 local communities around the airport, including the city of Munich3)FMG procurement dept., May 20104)FMG 2009 workplace surveyOur region benefitsthrough the businessesat the airportExtrapolation of total wages and salaries on campus 4)(€ million)Annual gross wages and salaries on campus 4)(€)1,200900600634+ 24.5 %699+ 10.3 %876+ 25.3 %1,096+ 25.1%40,00030,00020,00031 ,435+ 6.6 %30 ,965- 1.5 %31,979+ 3.3 %37 ,089+ 16.0%30010,000002000 2003 2006 20092000 2003 2006 2009

Social responsibility and regional engagementOur role in the economy73recent study by the European Center for AviationDevelopment (ECAD), proximity to air transportranks fourth among the most important factorsfor businesses that choose to locate in the Munichregion. More than half of these businesses wouldhave picked a different location in or outside Germanyif access to air transport had been inadequate.Companies that are based in the Munichregion and engage in international business currentlysecure more than 246,000 jobs. 3)>> Value creation through tourism According to anECAD study, overnight visitors from foreign countrieswho traveled to the Munich region by airspent roughly €1.8 billion there in 2007. Theirexpenditure created €978 million in value addedin the Munich region, thus securing more than44,000 jobs. 3)Important contribution to employmentWith the breadth of on-site employment opportunitiesit affords, Munich Airport makes a valuablecontribution to the labor market in its home region.For many years now, the Freising district employmentagency (which is also responsible for theErding area) has had some of the lowest unemploymentrates in Germany. In 2009, the joblessrate was3.1 percent – statistically, almost full employment.Companies have chosen to locate close to theairport in large numbers and are fueling growthand prosperity in the region. A significant numberof them also have strong business ties with theairport.1)FMG 2009 workplace survey2)Ernst Basler + Partner / BulwienGesa AG (2007), Zoning Report, p. 56 ff3)Munich Airport’s catalytic effects on the national and regional economies,ECAD GmbH (European Center for Aviation Development), Darmstadt, 2008Almost fullemployment inthe region foryears now

Stakeholder dialogueSocial responsibility and regional engagement74Stakeholder dialogueThe interests of our customers, business partners, and thecommunities in our home region are widely diverse. To takethese interests into account in our decision-making, we seekto engage with all our stakeholder groups in an open and forthrightdialogue conducted in a spirit of mutual respect.The FMG Group andits stakeholdersDialogue with partnersFlughafen München GmbH representatives communicateactively and regularly with our most importantstakeholder groups. For example, we conductfrequent passenger and employee surveys to keepcareful track of their perceptions and opinions, andwe maintain excellent relationships with partnerbusinesses and airline companies. The companyalso has a regional liaison office, which conducts anongoing dialogue with local communities and withpolicymakers and citizens’ groups in the region. Weare a member of various industry associations andadvocacy groups that regularly exchange ideas withleaders and policymakers. We coordinate closelywith the relevant government ministries and officeswhen it comes to compliance with legal require-Key stakeholder groupsMediaPassengers andvisitorsAirlines and theaviation industryGovernment ministriesand agenciesMunich AirportEmployeesPolicymakers and industryassociationsAirport regionBusiness partners

Social responsibility and regional engagementStakeholder dialogue75ments and discussions surrounding industry issues.And we engage in extensive corporate communicationswork aimed at fostering an open dialogue witha wide variety of media.In 2008, we completed a thorough analysis of ourstakeholder base. This process essentially consistedof conducting a set of interviews with FMGcontacts in each of our relevant dialogue groups.The results of this analysis determined whichstakeholder groups we would choose to addressprimarily in this year’s report.The table that follows lists the various forms of dialogueand the respective stakeholder groups. It alsoprovides individual examples of how we engagewith each of these groups.An open dialoguewith stakeholders

Stakeholder dialogueSocial responsibility and regional engagement76Passengers and visitorsForm of dialogue and mediumFrequencyPassenger surveys by Flughafen München GmbH, Skytrax, ASQ, etc.RegularlyComplaints management based on feedback formsContinuouslyMUC Life airport magazine, brochures and flyersRegularlyCall center, information desks, terminal services and other passenger servicesContinuouslyInformation center in Visitors’ ParkContinuouslyWeb portal for passengers and visitorsContinuouslyComplaints aremanaged centrallyOur central complaints management system ensuresthat we address all suggestions for improvementand/or complaints received from passengers and airportvisitors and take remedial action where appropriate.In 2009 we handled 999 complaints in total.These mainly concerned baggage, waiting times, airlineissues, and security screening procedures. Overall,complaints were down 26 percent from the previousyear.The chart below shows the absolute numbers ofcomplaints in each category and the percentagechange, year on year.We recorded the biggest drop in the number of complaints– by around 44 percent – in connection withwashrooms. More frequent cleaning cycles as well asremodeling work on Terminal 1’s washrooms meantusers were much happier with these facilities than inthe past.Complaints in 2009Numbers of complaints by category240180212- 36.9 %168- 37.1 % 147- 15.5 % 12212060- 21.3 %79+ 11.2 %75+ 2.7 %70- 18.6 % 50- 44.4 %44- 12.0 %44- 12.0 %40- 13.2 %40+ 17.7 %0BaggageWaitingtimesAirlineissuesSecurityscreeningSignageLack of Cars/ Sanitation Smoking Hospitality Publicfacilities Rental carstransportRetail

Social responsibility and regional engagementStakeholder dialogue77Complaints concerning security screening procedureswere also significantly lower, down by 21.3percent. Within this category, complaints concerning“too rigorous checks” (based on EU requirements)were down even more – by 54 percent – becausepassengers are now generally familiar with securityregulations, particularly those concerning liquids.By contrast, two areas in which the number of complaintsfrom passengers increased were poor facilities(insufficient internet access options, for example)and airport signage (specifically, road signs for vehicularaccess and wayfinding signs pointing to check-inareas).Complaints concerning the retail sector, too, were up17.7 percent. According to air travelers and airport visitors,there ought to be a greater number of stores inthe departure lounge areas in Terminal 1; storesshould generally be open longer; and there should bemore options for free parking.We received 999complaints andsuggestions in 2009

Stakeholder dialogueSocial responsibility and regional engagement78Airlines and the aviation industryAirlines and the aviation industryFrequencyAirport Operation Committee (AOC): Airport and airline representatives responsible for operations meetto discuss current problems and find solutions to streamline collaborationMonthlyUser Committee: A body consisting of representatives of airlines, the airport, government agencies andhandling operators, which meets to discuss economic and legal aspects of airport operationsThree to fourtimes a yearCoordination Committee: A body consisting of representatives of the Federal Ministry of Transport, Buildingand Urban Development, Munich Airport, German ATC, the Office of the Airport Coordinator, the airlinesand airline associations, which meets to coordinate takeoff and landing procedures with state agenciesTwice a yearBARIG Steering Committee MUC: Meetings of members of the Board of Airline Representatives in Germany(BARIG)Four times a yearMUC Exchange: A platform for all airlines operating in Munich, set up to coordinate airline timetablesAnnuallyIndustry shows: Presence at various regional and national shows in and outside GermanyRegularlyRegular meetings withairline representativesAirline companies operating in Germany are organizedthrough the Board of Airline Representatives inGermany (BARIG). BARIG works closely with airportrepresentatives on a range of sustainability-relatedbusiness issues, such as how to balance capacitysupply and demand.EmployeesForm of dialogue and mediumFrequencyDaily bulletins on FMG’s corporate intranetContinuouslyMeetings with employee representativesRegularlyEmployee representatives’ working groups and committeesRegularlyEmployee assembliesFour times a yearDivision meetings: Dialogue between division management and employeesFour times a yearExecutive management information eventsAs neededEmployee newsletter Flughafen ReportMonthlyEmployee surveysEvery two years

Social responsibility and regional engagementStakeholder dialogue79In 2009, several information events were held for employeesin our Ground Handling division. The purposeof these events was to explain the need for restructuring,to report on the current status, and to informthem about the competitive situation in the groundhandling services sector. The events, organized eitherby the company or the works council, were also attendedby the relevant labor unions. Employees hadthe opportunity to openly express their worries andconcerns and to ask any questions they had aboutthe positions of their employer, the works counciland the labor unions concerning the necessity ofthe restructuring, the works council’s decisions,the security of their jobs, and company operatingprocedures. The current situation, the way forwardand important changes were presented clearly andtransparently at these events. Company executivesalso held regular meetings with their employees onrestructuring issues.Intensive dialoguewith Group employeesBusiness partnersForm of dialogue and mediumFrequencyInformation events for manufacturers, suppliers, tenants, leaseholders and service partnersAs neededPlenary meetings of the joint advertising association of businesses and retailers at the airportAnnuallySupplier meetings and auditsRegularlyOnline portal for business partnersContinuouslySince 2004, FMG has conducted annual evaluationsof its suppliers as part of its supplier managementprocess. We score more than 100 suppliers accordingto the quality of their products and work, theirreliability, their quality of service and their pricing.We also verify whether these companies are certifiedto specific quality and environmental standards.In some cases, this includes conducting spot auditsto identify issues and encouraging suppliers toremediate any flaws we find.In 2009, for the first time, we sent out questionnaireson social responsibility to a number ofrated suppliers, inquiring about the origins of theirproducts, their employee pay scales, whether theircompanies had a works council and an occupationalhealth and safety officer, and current working conditionsat subcontractors outside the European Union(among other things, questions addressed minimumwages, set working hours, and the preventionof child labor). The questionnaire drew a responserate of 58 percent, and a review of the responsesrevealed a high prevalence of social responsibility.Assessment ofsuppliers’ socialresponsibility

Stakeholder dialogueSocial responsibility and regional engagement80 RegionForm of dialogue and mediumFrequencyMeetings with community representatives and policymakers from the airport’s surrounding regionAs neededThrough its regional sponsorship initiatives, FMG maintains contact with more than 500 partnerorganizations in the region (in sport, education, social welfare and culture)ContinuouslyRegional marketing: Intensive collaboration in the areas of business and tourism with the towns andadministrative districts of Erding and FreisingContinuouslyInformation events for businesses and lobbyists (e.g., district artisans’ associations, chambers ofindustry and commerce, trade and industry associations)As neededFact-finding visits to the airport by community officials (community, city and county councils)As neededPanel discussions and meetings with citizens’ initiatives, associations and other societal groupsAs neededRegional Advisory Council: A forum for information exchange and dialogue in connection with Munich Airport’sexpansion planning. It also decides on how resources from the regional impact fund are allocated.A working committee prepares meeting agendas for final decision-making.As neededAirport forum: Information and communication platform for questions concerning the region’s economyand traffic trends in the airport’s surrounding area. Under the aegis of the economics ministry, currentissues are discussed directly with the neighboring communities.Twice a yearMagazine for the airport region, M DialogCommission on Aviation Noise: Exchange between local politicians in the affected regions, German ATC,and government agenciesPhone line for aviation noise complaintsMonthlyTwice a yearContinuouslyNoise and emission reports (current information on aviation noise, air pollutant levels, etc.)MonthlyFace-to-face meetingsto discuss current topicsand concernsFor FMG, personal, face-to-face meetings are aninvaluable means of keeping abreast of nearbycommunities’ concerns and finding out aboutairport neighbors’ problems. The airport’s regionalliaison officer met with members of local communitiesfor personal meetings on more than 30 occasionsin 2009. The subjects covered ranged fromlocal development issues to questions concerningtransport connections and FMG’s support for communityand citizenship projects. Discussions heldin confidence on, say, current concerns prevalentin the region or minor points of friction betweenthe airport and its neighbors help us to identifyemerging issues before they escalate into seriousproblems for regional relations.

Social responsibility and regional engagementStakeholder dialogue81Policymakers and industry associationsForm of dialogue and mediumFrequencyParliamentary evenings held in Brussels and BerlinAs neededPublication of policy statements (topics, background information, officialpositions) intended for political decision-makersTwice a yearOrganization of fact-finding visits and special guided toursRegularlyProfessional presentations at conferences and symposiumsRegularlyParticipation in industry associations’ councils (German Airports Association,Airports Council International, etc.)RegularlyInformation meetings and guided tours for members of associations,political parties, churches, and other groups in societyAs neededAlong with the German Airports Association (ADV),we took part in a parliamentary evening in Berlin inDecember 2009, organized to discuss the positionof German airports in light of conflicting Europeanand national transport policies. We took this opportunityto take up the issues facing airports as aresult of divergent aviation policies with membersof parliament and representatives from governmentministries, agencies and sectors of our industry.Flughafen München GmbH makes no financial contributionsof any kind to political parties, politiciansor associated organizations.Dialogue on nationaland European aviationpolicy

Stakeholder dialogueSocial responsibility and regional engagement82Government ministries and agenciesForm of dialogue and mediumFrequencyTechnical discussions and meetings of expert panelsRegularlyGerman Air Transport Initiative workshopsRegularlyMembership of industry networks (e.g., the Bavarian Environmental Pact)RegularlyThe German AirTransport Initiative:Protecting mobility,growth and prosperityIn 2003, Flughafen München GmbH, DeutscheLufthansa AG, DFS Deutsche Flugsicherung GmbHand Fraport AG joined forces to launch the GermanAir Transport Initiative. The initiative has establisheda platform for dialogue through which members cancommunicate closely with government ministries,agencies and policymakers and answer the widerangingquestions that arise in connection withaviation. Our goal with this initiative is to strengthenGermany’s competitiveness as a center of aviation,safeguard mobility, promote growth and prosperity,and create jobs in Germany.The initiative has a number of working groups,formed to focus on specific areas of relevance forthe aviation sector. Building in part on the findings ofresearch commissioned from and conducted by independentorganizations, these groups prepare recommendationson courses of action, lines of argument,policy statements and official stances on behalf ofthe initiative that it can present to policymakers.One of the German Air Transport Initiative’s workinggroups specializes in intermodality. The group’spurpose is to promote the creation of more intelligentconnections between rail and air traffic with a view tooptimizing transport service offerings in the contextof a wider, integrated transport policy. Efforts arealso underway to advance the implementation of themainline rail connection that Munich Airport needs sourgently.

Social responsibility and regional engagementStakeholder dialogue83MediaForm of dialogue and mediumFrequencyPress conferences and meetingsRegularlyPress releases and photosRegularlyInterviews and briefingsRegularlyPress office as permanent point of contact for mediaContinuouslyWeb presence for media relationsContinuouslyOne of the key tasks in our media relations work is ourannual press conference, at which we inform membersof the media in detail about key events over the pastyear, our current air traffic figures and financials, andplanned projects at the airport. In 2009 we also held aspecial press conference to launch Flughafen MünchenGmbH’s first sustainability report.Our media relations work additionally includes keepingour regional and national media informed about currentairport news and events through regular press releases– typically, around 80 each year. The press office staffalso manages media inquiries, accompany interviewswith executive management, liaise with news desks,and assist media crews during on-site broadcasts andrecordings.The Munich Airport press office is staffed in shifts andcan be reached by phone 24 hours a day, 365 days ayear; contacts are also available on site if necessary.The press office has an extensive photo archive witharound 44,000 digital images and 30,000 slides.Keeping regional andnational media informed

Regional collaborationSocial responsibility and regional engagement84Regional collaborationMunich Airport works closely with its home region at manydifferent levels. As a socially responsible organization, we arecommitted to active societal and economic engagement, partneringwith local businesses, conducting an open dialogue withcommunities, and actively supporting local initiatives in areaslike education, sports, culture and social welfare.Locally sourced goodsand servicesRegional business linksMunich Airport has purchasing and supply relationships– many of them long-standing – with numerousbusinesses in its surrounding region. Thesebusinesses run the gamut from trades and artisanbusinesses to growers of agricultural products.In our procedures for awarding contracts andtenders, we actively seek to work with local companieswhere we can, provided the order value isbelow the threshold set for EU-wide tenders. Thatsaid, companies in our region also take part in ourEU-wide tenders. Based on order value, around 32percent of the orders we place currently go to localbusinesses in the Freising, Erding, Landshut andMunich administrative districts.In 2009, our subsidiary Allresto Flughafen MünchenHotel und Gaststätten GmbH sourced around 90percent of produce purchases worth a total of €9.8million in Bavaria, including around 50 percent in theairport’s local region.Cornerstones of its procurement policy are:- to primarily purchase regional and seasonal productson competitive terms (i.e., at the right qualityand price)- to ensure access and delivery distances are short- to provide regular environmental training and raiseemployee awarenessThis policy promotes a circular flow of income inthe region’s agriculture, processing industries andcommerce while at the same time reducing transportemissions.A bridge between the airport and its neighborsOur regional liaison office has a vision: to integratethe airport fully within its home region and to fostera perception of the airport as a “regular” neighbor.Since 2002 our regional liaison officer and his teamhave been engaged in efforts to network systematicallywith the surrounding region at various levels.The regional liaison office’s remit is to operate as acoordination center or bridge between the airportand the region. It carries Flughafen München GmbH’smessages out into the region and feeds neighbors’concerns back to the airport. This regional relations

Regional collaborationSocial responsibility and regional engagement86 with members of the German Cycle Club (ADFC) tochoose these routes, and the project is expectedto continue for several years. Besides installingsignage and publishing detailed route informationon the web, the project team also plans to producea cycle map of the region.Winter ops at MunichAirport: Local farmersand haulage operatorshelp clear the snowWinter ops at the airportSafeguarding operations on Munich Airport’saprons, taxiways and runways in winter is a mission-criticaltask for Flughafen München GmbH.Currently, this is handled by around 450 workers.In house, FMG assigns a total of 40 full-time employeesto winter ops, mostly in supervisory andleadership roles. During the winter months, we alsotake on around 40 temporary workers on seasonalcontracts. However, the mainstay of our wintersnow and ice-clearing operations are farmers andhaulage operators from our immediate surroundingarea. In 2009, we hired 370 of them – along withup to 109 of their own vehicles – to remove and haulsnow at the airport. Besides this fleet of outsidevehicles, there are 24 tractors for towing FMG’sairblast sweepers, which are used to clear the tworunways. This is a win-win situation for local operatorsand Flughafen München GmbH, because itmaximizes our flexibility when it comes to planningfor winter weather, helps keep our costs down,and provides local farmers and haulage operatorswith an additional revenue stream during the wintermonths.The Regional Advisory CouncilFlughafen München GmbH attaches immense importanceto an open and constructive dialogue withthe airport’s local region.The Communities Council, a forum for informationsharing and dialogue between the airport and itslocal communities, has accompanied the planningprocess for the expansion of Munich Airport since2005. At its meetings, the Council is supplied withtimely and current information on the planningprogress. The Council is also a mouthpiece for theregion, voicing local concerns and offering recommendationsand suggestions. As such it helps theparties represented to come to mutual agreementson proposed solutions. The Council, chaired by EddaHuther, a former president of the ConstitutionalCourt of Bavaria, has around 40 members, includingrepresentatives of local towns and communities,administrative districts, the business communityand labor unions, as well as employees from

Social responsibility and regional engagementRegional collaboration87Dieter Thalhammer, Mayor of Freising“Having a major international airport on ourdoorstep can be quite a challenge, particularlywhen faced with projects that we fundamentallyoppose, like the current plans for another runway.Nonetheless, we have been able to build agood working relationship with Munich Airport.This is thanks to open and constructive collaboration,often based on strong ties at a personallevel. Furthermore, many local societies andcultural, sports, educational and social welfare organizations in Freisingreceive financial support from the airport. These sponsorships are importantfor the region, particularly now that community budgets are overstretchedand councils can provide little funding, if at all.”Deutsche Lufthansa AG, Deutsche FlugsicherungGmbH and Flughafen München GmbH, who representthe aviation sector.In 2008, Flughafen München GmbH’s shareholdersdecided to set up a regional fund worth €100 million.Under current plans, the fund’s resources are to beallocated primarily to local infrastructure projects ascompensation for impacts resulting from the constructionof the airport’s third runway. Fifty million euros areto go to local highway construction projects; the otherhalf has been earmarked for local community infrastructuredevelopment, compensation in instances ofhardship, and special projects. Payouts of money fromthe regional fund are tied to the start of constructionwork on the airport’s third runway. Nonetheless, someof the money from the fund has already been allocatedup front to two especially urgent transport infrastructureprojects: Of the €50 million, €5 million apiece havebeen allotted to the Erding north bypass and the Freisingwest expressway. To date, Erding district councilhas drawn down €106,500 for the north bypass project.Donations and sponsorshipsWe understand that having an airport as a neighboris not always easy. For this reason, we try to doas much as we can to provide local communitiesand people with help where it is needed most.Flughafen München GmbH is involved in numerousinitiatives for the region, offering valuable support ata time when community coffers are empty and nopublic funding for local initiatives and organizationsis available.We currently help to fund more than 500 projectsin the fields of sport, culture, social welfare andeducation.A regional fund tosupport local infrastructureprojects

Regional collaborationSocial responsibility and regional engagement88FMG sponsors morethan 24,000 youngpeople in around80 sports clubsOne particularly important focus of our citizenshipinitiatives is on providing support for youth sport inour local area. FMG currently sponsors more than24,000 youngsters in around 80 community sportsclubs. Another key area of our sponsorship work issupporting educational institutions. Our efforts hererange from grants for homework supervision to assistancefor adult education centers.Flughafen München GmbH also supports local culturalinitiatives and institutions in the airport region,providing funding for museums, musical societiesand cultural events that promote the variety ofcultural life in the airport region. Social welfare institutionsand initiatives, too, receive financial supportfrom FMG. In 2009, clubs, organizations andprojects in the Erding and Freising districts receiveda total of around €425,000 in grants and sponsorships– 20 percent more than in 2008.Sponsorships in 2009Sport€140,328Education€58,391Social welfare€116,385Culture€110,023

Social responsibility and regional engagementRegional collaborationSponsorships and social givingIn 2009, three exceptional projects that providelocal people with frontline support were of particularimportance to us.> St. Christopher’s Hospice Association, ErdingFMG became a supporting member of the St.Christopher’s Hospice Association in Erding in2009 and provides financial assistance to help theorganization widen its palliative care network in theErding area. The association delivers care and supportservices to the terminally ill and their families.One of the association’s principles is to “fill dayswith more life rather than life more days.” Our supportfor this organization reflects our commitmentto continue our citizenship efforts in the airport’shome region, especially in underserved fields, evenin difficult times.and funded a film and photo shoot at AirportClinicM, our on-campus healthcare facility, to equip thecharity with professional photos and movie footagethat it can use to market itself. We also made advertisingspace available at the airport; this consists ofa large advertising light box containing an eye-catchingimage of the hospital clown “Dr. Pipo” to promotethe charity and its work.89> Freising Citizens’ FoundationSocial welfare and environmental projects in thetown of Freising are now supported through theFreising Citizens’ Foundation, formed in December2009. As a founding benefactor, FMG provided asignificant amount of the foundation’s initial capital.In 2009 we spentaround €425,000 onsupporting local clubs,organizations andprojects> KlinikClownsFMG is also a member of KlinikClowns in Bayerne.V., a charity that sets out to brighten up the daysof children and the elderly in hospitals and retirementhomes by bringing a smile to their faces. Oursupport for the hospital clowns extends beyondsimply paying our membership subscription andmaking regular donations: In 2009 we organized“All in a good cause”Flughafenverein München e.V. is an organization dedicated to helping people in need – actively and directly.Bannered “All in a good cause,” the organization was formed as an independent charity by Flughafen MünchenGmbH employees and friends in 1996 and, since then, has collected significant sums of money to donate toaid and support projects, both local and international. Its members, who work on a voluntary basis, can drawon company resources for support as and when the need arises.One of the organization’s most prominent initiatives is its annual golf tournament. The most recent, whichwas held in June 2009 and generated net proceeds of €21,000, was organized for the benefit of StiftungSehnsucht, a foundation engaged in nationwide child and youth addiction prevention programs . Seewww.flughafenverein.de

MunichJohannesburgThe Chalbi Desert, Kenya More than 40 percent of Africa is either semi-arid ordesert, and in Kenya the proportion is even higher at around two-thirds. Extremethough this environment is, certain highly specialized plants and animal specieshave successfully adapted to it.Balance Adaptive systems maintain an innerequilibrium, even when faced with outside change.We adapt by strengthening the core of our businessand aligning with new market requirements.

Inhalt92Facts and figuresSustainability programKey figuresGlossaryReport profile

Facts and figuresSustainability programSustainability program93Our strategic sustainability program at FlughafenMünchen GmbH spotlights future opportunities andrisks we face and provides us with a roadmap for ouronward development and our mission through to2015. Our 2009 sustainability program builds on ourprior-year program and comprises four focus areaswith specific sustainability targets. The program sets an overall target as well as near,intermediate and longer-term initiatives for each focusarea. It also defines deadlines by which theseinitiatives are to be completed and tracks how fareach has progressed. In our environmental and climateprotection focus area we also operate a comprehensiveenvironmental program based on ourEMAS and DIN EN ISO 14001-certified environmentalmanagement system; this program is covered indetail in our annual environmental statements. See p. 13Field Initiative StatusTargetdateRemarks/activitiesCompany and governanceTarget: Sustain value creation through a yield-driven business model and continued investment in our locationReturn on capitalemployedGenerate an ROCE higher than thegeneral market weighted averagecost of capital (WACC)90% 2014Higher earningsJUMP, a group-wide program ofmeasures to improve earnings10 % 2014 see p. 23Continued expansionof the airportGrowth and expansion of airport’sinfrastructure facilities as permaster plan15 % 2020 see pp. 25 – 27Energy-efficient constructionIncorporation of sustainabilitycriteria into plans for expansion andreconstruction under considerationof carbon targets50 % 2020 Specification of carbon targetsfor individual projectsCertification of selected buildings toGerman Sustainable Building Council(DNGB) standards30 % 2015 Preparation of architectural planningcompetition for kindergarten; involvementin DGNB working group: criteriafor 3rd runway and satellite see pp. 38 – 39Life cycle costing (LCC)for new buildingsDraft plans for life cycle costing inearly planning phases50 % 2010 Pilot project: Preparations forKempinski expansion complete

Sustainability programFacts and figures94Field Initiative StatusTargetdateRemarks/activitiesTarget: Greater customer focus and a more attractive product and service portfolioDemand-driven productand service portfolioContinued customer surveys andcomplaints managementOngoing see pp. 19 – 20Review of our product and serviceportfolio and realignment as necessaryOngoingAnalysis of customer needs andmarket potentialContinuation of strategic innovationmanagementOngoingMerging of idea pool withinnovation managementTarget: Establish management structures to foster responsible corporate leadershipSustainabilitymanagementIncorporation of sustainability targetsinto binding business unit targets100 % 2009 Established annual process see pp. 12 – 13Advancement and expansion of oursustainability program and managementsystem85 % 2010 see pp. 12 – 13Development of a code of conduct 70 % 2010Sustainability reportingSurveys among relevant stakeholdergroups regarding report content100 % 2009 Established annual process. Websurvey on sustainability reportDevelopment of sector supplementsfor commercial airports’ sustainabilityreporting in associationwith other international airports andGlobal Reporting Initiative (GRI)45 % 2010 Working group’s second meetinghosted by Munich AirportSustainability in the company’svalue chainIncorporation of sustainability criteriainto our supplier managementsystem45 % 2010 see p. 17ComplianceFormation of an independent complianceunit in the company30 % 2011 Initial planning

Sustainability programFacts and figures96Field Initiative StatusTargetdateRemarks/activitiesResource conservationand efficiencyReduction of vehicle fleet fuelconsumption and use of alternativedrive technologies30 % 2020 see p. 36Employee training programs to raiseawareness and drive behavior changewith regard to use of resourcesOngoing see p. 39Incorporation of sustainabilityeducation into company’s regulartraining program30 % 2010 Integration of individual elementsinto selected trainingsWorkforce and work environmentTarget: Advance employees’ knowledge and skills and promote a performance driven corporate cultureCareer trainingDevelopment of additional needsbasedvocational and work-studyprograms90 % 2011 Planning for introduction of Masterof Business Administration (MBA)degree program in aviation managementSecuring the supply of humanresourcesOngoingExpansion of e-recruiting see p. 58Employee skillsDevelopment of FMG trainingcenter into a group-wide AirportAcademy90 % 2012 Integration of EFM’s training and educationactivitiesDevelopment of innovative learningmethods to support lifelong learning80 % 2012 Walk-in seminars, computer-basedtrainings – e.g., aviation securitytraining, general security training,and various other seminarsNeeds-driven, unit-specificdevelopment of employeeknowledge and skills80 % 2010 Definition of individual developmenttracksDevelopment of an integratedperformance and skills system40 % 2013Managers and high potentialsOnward development and review ofcorporate and leadership principles25 % 2012 Planning of workshops on values formanagersGroup-wide managementadvancement15 % 2012 Assessment of managers’ potentialand definition of areas for growthExpansion of target agreementsand performance reviews65 % 2010 see pp. 62 – 63

Facts and figuresSustainability programField Initiative StatusTargetdateRemarks/activities97Target: Increase attractiveness as a company to work forEmployee loyaltyEasing the balancing of careers andfamily (certification by “berufundfamilie”)95 % 2010 Preparation for re-auditing see p. 57Employee surveys on a two-yearcycle0 % 2010 Redesign of employee surveysDevelopment of an employerbrandExpansion of marketing to schoolsand universities65 % 2011 see pp. 58 – 59Development of precisely targetedemployment market communications40 % 2013 Positioning and communicationsprogram to promote FMG asattractive employerTarget: Efficiency gains in human resource management processesHR managementOptimization of HR managementprocesses50 % 2011 Introduction of a systemof personnel officersSocial responsibility and regional engagementTarget: Embrace social responsibilityAdvancement ofresearchExpansion of knowledge transferand sharing with universities andindustryOngoingFocus: Research into innovativetechnologies, systems and servicesRegional value creationStep up sourcing of goods andservices within the local regionOngoing see p. 84Information flyers for potentialsuppliers of goods and servicesin the region0 % 2010Target: Development in partnership with the regionRegional infrastructureDevelopment of need-basedstrategies to accommodate landsidetraffic growth80 % 2015 see p. 25 – 27“AirfolgsRegion Erding-Freising” regionalmarketing initiativeInstitutionalization of regionalmarketing35 % 2012 see p. 85Regional sponsorshipsNew high-profile projects in thefields of sport, culture, socialwelfare and educationOngoing see p. 88 – 89Regional dialogueContinue and extend regionald ialogueOngoing see p. 80

Key figuresFacts and figures98Key figuresThese figures are determined based on Global Reporting Initiative(GRI) recommendations and guidelines for sustainability reporting.An overview of all G3 indicators is provided in the GRIindex on the inside cover of this report. Unless stated otherwise,the figures given here pertain to the entire FMG Group,including affiliates in which we hold a majority stake.Air traffic figures 2009 2008 2009 / 2008Passenger movements (total) 32,701,759 34,552,189 - 5.4 %- Commercial traffic 32,681,067 34,530,593 - 5.4 %- Scheduled and charter traffic 32,657,300 34,501,806 - 5.3 %Load factor (%) 71.5 72.8 - 1.3 PPAircraft movements (total) 396,805 432,296 - 8.2 %- Commercial traffic 386,558 420,866 - 8.2 %- Scheduled and charter traffic 376,770 408,292 - 7.7 %Cargo handledFlown air freight and air mail (t) 229,095 259,645 - 11.8 %Workload units (WLU) 34,919,732 37,072,374 - 5.8 %Group sales and earnings (€ million) 2009 2008 2009 / 2008Group sales 981.3 1,043.7 - 6.0 %EBITDA 1)2) 353.8 346.1 + 2.2 %EBIT 1)2) 214.1 204.1 + 4.9 %Group net income 2)3) 92.9 78.8 + 17.8 %Group profitability indicators (%) 2009 2008 2009 / 2008EBITDA margin 1)2) 36.1 33.2 + 8.7 %EBIT margin 1)2) 21.8 19.6 + 11.6 %ROCE 1)2) 7.2 6.6 + 9.1 %1)EBITDA excl. leasing expense of €44 million in 2009 (2008: €44 million), EBIT excl. leasing interest2)Earnings excl. accruals of €84 million for Ground Handling in 2009 (2008: €31 million)3)Group net income excl. interest on shareholder loans of €10 million in 2009 (2008: €44 million) not taking into account tax effects

Facts and figuresKey figuresGroup balance sheet and cash flow (€ million) 2009 2008 2009 / 200899Cash flow from operations 165.0 214.5 - 23.1 %Investments 90.5 120.4 - 24.8 %Depreciation 124.9 124.4 + 0.4 %Balance-sheet total 2,951.1 2,964.5 - 0.5 %Fixed assets 2,789.5 2,827.5 - 1.3 %Equity 442.1 443.6 - 0.3 %EC1 FMG Group value added (€ million) 2009 2008Net sales revenue 981.3 1,043.7Total operating performance 1,057.3 1,105.4Less operating expenditure (incl. leasing) 519.3 508.7Less depreciation and amortization 124.9 124.4Total value added 413.1 472.3EC1 FMG Group value distributed (€ million) 2009 2008Employees 309.3 314.1Providers of capital 89.7 126.4The state 7.3 8.1Community investment 0.0 10.0Third-party shareholders 8.2 9.7The Company - 1.4 4.0Total value distributed 413.1 472.3EN1 Materials used: Deicing agents 4) 2010 / 2009 2009 / 2008 2008 / 2007Pavement deicer (t) 4,296 3,142 1,239Aircraft deicer (Safewing Type I) (m³) 6,237 3,991 2,214Aircraft deicer (Safewing Type IV) (m³) 1,613 1,114 519Number of days of winter operations 155 67 43EN2 Deicer recycling rate (%) 4) 2010 / 2009 2009 / 2008 2008 / 2007Recycling rate of deicer deployed 68.7 73.1 65.34)Seasonal data

Key figuresFacts and figures100EN3/4/5/16 Energy consumption/emissions 5) 2009 2008 2007MWh CO 2 MWh CO 2 MWh CO 2Scope 1 Direct energy consumption/emissionsGas/diesel engines 193,314 38,777 t 187,886 37,607 t 183,439 36,321 tGas/gasoline engines 116,535 23,376 t 97,648 19,545 t 114,149 22,602 tBoiler plant 13,989 2,806 t 4,024 805 t 2,959 586 tFuel oil, gas/diesel engines 20,843 5,552 t 20,449 5,448 t 19,939 5,312 tFuel oil, boiler plant 28 7 t 44 12 t 1 0 tLiquid gas 1,365 318 t 1,004 233 t 998 232 tFuel oil, emergency power generators 446 119 t 525 140 t 706 188 tNatural gas consumed by EFM 2,438 489 t 1,239 248 t 2,290 453 tDiesel and gasoline 50,230 13,086 t 53,196 13,867 t 50,847 13,037 tTotal 399,188 84,530 t 366,015 77,905 t 375,328 78,731 tScope 2 Indirect energy consumption/emissionsPurchased power 100,880 59,519 t 117,999 69,619 t 106,256 66,304 tPurchased heat 27,364 5,829 t 31,812 6,776 t 29,218 6,223 tPurchased natural gas 1,752 351 t 2,461 493 t 1,792 355 tPower supplied to external companies - 58,079 - 34,117 t - 58,728 - 34,649 t - 55,503 - 34,634 tHeat supplied to external companies - 44,193 - 9,413 t - 42,498 - 9,052 t - 40,151 - 8,552 tCooling supplied to external companies - 4,718 - 557 t - 4,722 - 562 t - 4,402 - 550 tNatural gas supplied to external companies - 1,752 - 351 t - 2,461 - 493 t - 1,792 - 355 tTotal6)21,261 t6)32,132 t6)28,791 tEN8 Total fresh water consumption 7) 2009 2008 2009 / 2008Water purchased from utility (m³) 938,000 944,000 - 0.6 %Water consumption per workload unit (liters) 26.9 25.5 + 5.5 %EN21 Total wastewater discharge 7) 8) 2009 2008 2009 / 2008Total wastewater discharged from Munich Airportto treatment facility (m³) 2,234,545 2,030,505 + 10.0 %EN11/13 Airport area/conservation areas (ha) 2009 2008Total area 1,575 1,575Paved area 628 628Unpaved area 947 947Additional green areasCompensatory areas 418 347Green belt 250 250

Facts and figuresKey figuresEN20 Measured nitrogen dioxide concentration (µg / m³) 2009 2008 2007101NO 2 limit 42 44 46NO 2 concentration (annual mean) 29 29 30EN22/27 Reclaimed materials/waste bytype and disposal method 9) (t)2009 2008 2009 / 2008Munich North thermal power plantWaste for disposal – from aircraft (excl. catering waste) 3,735 4,131 - 9.6 %Waste for disposal – prohibited liquids (terminals) 205 275 - 25.5 %Waste for disposal – from facilities 10) 321 1,102 - 70.9 %Recycled (paper factory)Paper, paperboard, cardboard – from aircraft 1,351 1,668 - 19.0 %Paper, paperboard, cardboard – from facilities 2,317 2,842 - 18.5 %RecycledMixed reclaimed materials – from facilities 2,963 2,409 + 23.0 %Mixed glass 11) 175 162 + 8.0 %Wood 176 243 - 27.6 %Biogas plantFood waste 11) 1,503 1,615 - 6.9 %RecycledOther materials 352 304 + 15.8 %Recycling/waste disposal contractorsOther problem waste 1,215 1,096 + 10.9 %Waste that requires tracking 319 385 - 17.1 %Construction waste 125 191 - 34.6 %Total weight 14,757 16,423 - 10.1 %Mean waste quantity per workload unit (in kg) 0.42 0.44 - 4.5 %5)Data accounting in accordance with GHG Protocol. Heat values and emissions factors in accordance with German Emissions Trading Authority (DEHST) requirementsand Federal Environment Agency (UBA) publications6)Figures for heating, cooling and power are not aggregated for technical reasons7)Includes all companies on the airport campus8)Wastewater discharged to treatment facility comprises domestic wastewater, deicing water and rainwater9)Munich Airport operates as a service provider, collecting waste and recoverable materials from tenants, leaseholders, airlines and other organizations on campusfor recycling and energy recovery10)Classed in part as mixed reclaimable materials/waste for recycling due to high quality of content11)Exact figures are available for January 1 – October 31, 2009; figures for November/December 2009 are estimates

Key figuresFacts and figures102LA1 2009 2008FMG Group’s total workforce 12) 13) 7,366 7,673(incl. trainees, excl. workers in marginal employment)Part time 2,968Full time 4,398Limited contracts 1,016Permanent 6,350FMG’s total workforce 13) 4,421 4,524(incl. trainees, excl. workers in marginal employment)Part time 2,089 2,166Full time 2,332 2,358Limited contracts 231 217Permanent 4,190 4,307Total employees on campus 13) 14) 29,560LA2 Employee turnover (%) 15) 2009 2008 2009 / 2008FMG Group 12) 6.9FMG 3.8 4.5 - 0.7 PPLA2 Age structure of workforce at FMG 13) 2009 Percentage(incl. trainees, excl. workers in marginal employment)< 20 years 90 2.0 %20 – 24 years 176 4.0 %25 – 29 years 250 5.7 %30 – 34 years 420 9.5 %35 – 39 years 604 13.7 %40 – 44 years 860 19.5 %45 – 49 years 886 19.9 %50 – 54 years 576 13.0 %55 – 59 years 371 8.4 %60 – 64 years 181 4.1%> 64 years 7 0.2 %Total 4,421 100.0 %LA2 Age structure of workforce at FMG Group 12) 13) 2009 Percentage(incl. trainees, excl. workers in marginal employment)< 20 years 174 2.4 %20 – 24 years 491 6.7 %25 – 29 years 745 10.1 %30 – 34 years 845 11.5 %35 – 39 years 980 13.3 %40 – 44 years 1,297 17.5 %45 – 49 years 1,227 16.7 %50 – 54 years 779 10.6 %55 – 59 years 507 6.9 %60 – 64 years 288 3.9 %> 64 years 33 0.4 %Total 7,366 100.0 %LA7 Accident rate per 1,000 workers at FMG 16) 2009 2008 2009 / 2008Number of accidents per 1,000 employees/year 45.5 50.5 - 9.9 %

Facts and figuresKey figuresLA7 Sick leave rate at FMG (%) 17) 2009 2008 2009 / 2008103Sick leave rate 7.3 7.6 - 0.3 PPLA10 LA10 Average hours of training (h) 18) 2009 2008 2009 / 2008FMG Group 19) 39.0FMG 24.4 24.6 - 0.2LA13 Employees by gender (%) 13) 2009 2008 2009 / 2008Women at FMG Group 12) 32.6Men at FMG Group 12) 67.4Women at FMG 18.2 17.5 + 0.7 PPMen at FMG 81.8 82.5 - 0.7 PPPeople with disabilities at FMG (%) 16) 2009 2008 2009 / 2008People with disabilities 9.6 8.8 + 0.8 PPLA13 Executive employees by gender (%) 2009 2008Female executive employees at FMG Group 12) 19.8Male executive employees at FMG Group 12) 80.2Female executive employees at FMG 8.0 8.0Male executive employees at FMG 92.0 92.0LA13 German and foreign employees (%) 2009 2008German nationals at FMG Group 12) 84.6Foreign nationals at FMG Group 12) 15.4German nationals at FMG 86.5 86.2Foreign nationals at FMG 13.5 13.8LA13 Breakdown of employee nationalities in 2009 13) FMG FMG Group 12)Germany 3,826 6,234Turkey 380 470Austria 45 69Italy 34 72Greece 16 31Bosnia and Herzegovina 9 17USA 9 16Serbia 7 33Other 95 424Total 4,421 7,36612)Includes all subsidiaries13)As of December 31, 200914)Flughafen München GmbH’s 2009 workplace survey15)Annual average16)The figures apply to FMG. The process of consolidating FMG’s figures with subsidiaries’ figures was not completed in time for inclusion in this report17)Sick leave rates range across the FMG Group from 2.3% to 10.9%. The process of preparing a consolidated figure for the Group as a whole was not completedin time for inclusion in this report18)Excl. mandatory trainings required by law (aviation security training) and seminars requiring less that six hours’ presence19)Includes all subsidiaries except aerogate, AeroGround and eurotrade

GlossaryFacts and figures104GlossaryAirports Council International (ACI)An international organization, headquartered in Geneva,which represents airport operators. More than 1,600 airportsin almost all of the world’s countries are ACI members,including 400 airports in 46 European countries.Carbon dioxide (CO 2 )Carbon dioxide is a colorless, odorless gas that is createdwhen substances containing carbon combust; it is thereforepresent in aviation exhaust gas. Carbon dioxide absorbs partof the heat radiation (infrared radiation) in the earth’s atmosphere.This property makes it a so-called greenhouse gas.Carbon monoxide (CO)Carbon monoxide is a colorless, odorless and flavorless toxicgas. It is created through the partial combustion of substancescontaining carbon without sufficient oxygen presentor through combustion at very high temperatures.Collaborative Decision Making (CDM)Airport CDM is an approach designed to streamline collaborationbetween all parties involved in flight and handlingoperations (airports, airlines, ground handling operators andair traffic control) so as to optimize procedures and maximizeresource efficiency.Continuous Descent Approach (CDA)A method of approach using reduced engine power. Theaircraft approaches its destination airport in a steady descent.This helps to conserve fuel and reduce aviation noise.Decibel (dB)A unit of measure for sound intensity and sound pressure.One decibel (dB) is the smallest change in volume that ahuman can register. The decibel scale is logarithmic. Thus,a change of 10 dB represents a halving or doubling in theperceived noise level.DeicingAircraft deicing is an operation carried out on planes beforethey depart to clear them of ice and snow. In winter weatherconditions, crucial parts of aircraft must be protected toprevent ice from re-forming. This is accomplished using amixture of water and deicing agent.DIN EN ISO 14001A standard created by the International Organization for Standardization(ISO). The standard establishes a worldwide foundationfor certifiable environmental management systems.EBITEarnings before interest and taxes (and one-time cumulativeeffects, where applicable), commonly also referred to as theoperating result.EBITDAEarnings before interest, taxes, depreciation and amortization.Eco-Management and Audit Scheme (EMAS)A system for voluntary environmental management andauditing, developed by the European Union as an instrumentto enable businesses to continuously improve their environmentalperformance. EMAS builds on the requirements setout in the DIN EN ISO 14001 standard.EmissionThe ejection, discharge or emanation of substances, energyor radiation into the surrounding environment by a givensource. Emissions can take the form of gaseous pollutants,noise and dust, for example.Environmental impactsThe effects on humans, animals, plants and inanimate objectscaused, say, by noise, air pollution, vibration, radiation, heatand light. Environmental legislation aims to control suchimpacts as effectively as possible.Equivalent continuous sound pressure level Leq 3 (day/night)Equivalent continuous sound pressure level Leq 3 as definedin DIN standard 45643, Part 1, Section 3.2.2, formula (6) witha reference time of 16 hours (daytime) or 8 hours (nighttime).The equivalent continuous sound pressure level, expressed indB(A), is a noise descriptor that converts the sound measuredover a specific period of time at a specific location into whatwould be a continuous noise level.

Facts and figuresGlossary105German Airports Association (ADV)The umbrella organization for all commercial airports inGermany, Switzerland and Austria. The ADV works to ensurethat Germany remains an efficient and competitive center ofaviation. It supports measures aimed at enabling demanddrivenexpansion, optimizing the utilization of available capacity,advancing intermodal transport, and improving aviation’senvironmental compatibility and economic efficiency.Global Reporting Initiative (GRI)An independent organization whose task it is to developand publish globally applicable guidelines for sustainabilityreporting. GRI G3 is the third and most recent edition of theguidelines.Greenhouse Gas Protocol (GHG Protocol)The Greenhouse Gas Protocol is a globally recognized instrumentused to quantify and manage greenhouse gas emissions.The GHG Protocol defines requirements for computinggreenhouse gas emissions on an organization-wide scale andimplementing projects to reduce GHG emissions.Hub airportAn airport used by an airline company or a group of alliedairlines as a point of transit between short-, medium- andlong-haul services to enable the airline or airlines to connectto a large number of destinations.IntermodalityIntermodal transportation involves the interconnection of atleast two different modes of transport – rail, road, air and sea,for example – along a given transport route.International Civil Aviation Organization (ICAO)Headquartered in Montreal, the ICAO is an agency of theUnited Nations. The organization has a total of 190 contractingstates. The goal of the ICAO and its member states is toensure the safe and sustainable development of civil aviation.Nitrogen oxides (NOx)Gases that are formed when nitrogen combusts in combinationwith oxygen and occur in aviation exhaust gas.PM10 particulatesPM10 describes the category of fine dust particles with adiameter of less than 10μm.ROCEReturn on capital employed is used in business managementas a measure of how effectively and profitably a companyis employing its capital. It is a similar measure to return onassets.Safety Management System (SMS)The name given to a program in civil aviation to improvetechnical safety. Implementation of an SMS is a mandatoryICAO requirement at airports. The purpose of an SMS is toguard against accidents and incidents by identifying dangers,assessing and reducing risks, implementing countermeasures,and monitoring all relevant processes.StakeholdersGroups or individuals who can influence how a companyachieves its targets or who are affected by a company’sactivities. They include employees, capital providers, customers,suppliers, neighboring communities, non-governmentalorganizations (NGOs), public authorities and policymakers.Sustainable developmentSustainable development was recognized at the UnitedNations Conference on Environment and Development(UNCED) in Rio de Janeiro in 1992 as a normative internationalguiding principle of the community of states, globalindustry, global civil society and policymakers, and wasenshrined as a fundamental principle in the Rio Declarationand Agenda 21.Workload unit (WLU)A metric used to track commercial passenger and cargotraffic. A workload unit equates to one passenger includingcarry-on luggage (100 kg in total) or 100 kg of air cargo or mail.

Report profileFacts and figures106Report profileContents of the reportThis is the second comprehensive SustainabilityReport published by Flughafen München GmbH.The period reviewed corresponds to the 2009 fiscalyear (from January 1 to December 31, 2009). Thedata presented generally pertains to this reportingperiod or to the status at the end of said period. Asand where information relates to other periods, thisis indicated accordingly.The Sustainability Report is an annual publication.The previous report (covering fiscal 2008) waspublished in the final quarter of 2009.This Report aligns with the Global Reporting Initiative’s(GRI) G3 guidelines. It covers all core indicators,plus specific additional indicators where relevantand applicable. The GRI index on the back insidecover pages (C4-C6) references all the individualGRI indicators covered in the Report.The Sustainability Report complies with ApplicationLevel A of the GRI guidelines. The GRI has reviewedthe Report to ascertain that it complies with theirguidelines on sustainability reporting and has verifiedit as a complete and correct implementation atlevel A.Preparation of this reportThe primary focuses of this Sustainability Reportare presented in overview in the materiality matrixon the front inside cover pages (C3). Key topicscovered were chosen on the basis of feedback fromstakeholder groups in response to our 2008 reportand according to priorities set by the company’ssustainability panel.In contrast to last year’s report, this year’s has fivechapters rather than six. The chapters titled “Regionand local communities” and “Social and stakeholderengagement” have been merged this year ina new chapter, “Social responsibility and regionalengagement.”Limits of scopeThe Report covers the whole of the FMG Group.Unless stated otherwise, the indicators presentedhere apply to the entire Group, including its subsidiaries.In instances where information pertains onlyto part of our organization – say, in examples providedor when insufficient data for the Group as awhole is available – this is indicated accordingly.All of the statements in this report that are notbased on historical information are forward-looking

Facts and figuresReport profile107statements. These statements take into accountrisks and uncertainties but not any future changesin global economic conditions, legal requirements,market conditions, competitors’ activities, or otherfactors beyond the control of FMG.Data measurement techniques and bases ofcalculationsAll economic and business-related informationpresented here correlates with the informationpublished in our Annual Report 2009 inasmuch assaid information was published therein. For themost part, human resources data is collected in anelectronic HR management system, which is alsoused to furnish, track and evaluate the data publishedin the FMG Group’s Annual Report. Environmentaldata is recorded systematically in our environmentalmanagement system to EMAS and DINEN ISO 14001 standards and is subject to externalvalidation by a certified environmental auditor. Carbonemissions are calculated as per the specificationsof the Greenhouse Gas Protocol. Heat valuesand emissions factors are recorded in accordancewith German Emissions Trading Authority (DEHST)requirements and the relevant Federal EnvironmentAgency (UBA) guidelines.Given the breadth of our sustainability activities atMunich Airport, we cannot cover them in full in thecontext of this report. Other topics receive coveragein our Annual Report 2009, our detailed environmentalimpact statement for 2008, and our abbreviatedenvironmental impact statements for 2009 and2010 (EMAS). We also publish regularly updated informationon all aspects of our environmental andsustainability performance on the Internet. Seewww.munich-airport.de/en/company/umwelt/nachhaltig/index.jsp

Facts and figures108PublisherFlughafen München GmbHP.O. Box 23 17 5585326 MunichGermanywww.munich-airport.deResponsible for contentFlughafen München GmbHCorporate CommunicationsHans-Joachim BuesCorporate Development and EnvironmentGertrud SeidenspinnerContactFlughafen München GmbHMichael WühleEnvironmental and Sustainability ManagementE-mailsustainability@munich-airport.deEditorial teamClaudia BüchlmannDr. Monica StreckChristopher FritzDr. Reingard SchöttlPhotographsAlex Tino FriedelDenis RoschlauDr. Werner HenniesFlughafen München GmbHPrivate archiveDesignRED, Munich/KraillingSpecialist consultantsB.A.U.M. Consult GmbH, MunichTranslationTom RattrayPrintingG. Peschke Druckerei GmbH, MunichPaperEnviro Top recycled paper made from100% waste paperNORDIC ECOLABEL244053

GRI indexGRI indicators Page reference* Status**1. Strategy and analysis1.1 Vision and strategy/Foreword by executive management C3, 1, 4, 12 – 131.2 Key impacts, risks and opportunities 12 – 13, 21, 22 – 26,93 – 97, AR 79 – 812. Organization profile2.1 Name of the organization 92.2 Brands, products and services 9 – 112.3 Operational structure 9 – 10, 162.4 Location of the organization’s headquarters 92.5 Countries in which the organization operates 92.6 Nature of ownership and legal form 92.7 Markets 9 – 102.8 Scale of the organization 53, 98 – 99, 1022.9 Significant changes in the organization’s size, structure or ownership 92.10 Awards received 19, 653. Report parameters3.1 Reporting period C2, 1063.2 Date of most recent previous report 1063.3 Reporting cycle C2, 1063.4 Contact points regarding the report 1083.5 Process of defining report content C3, 1063.6 Boundary of the report 98, 106 – 1073.7 Limitations on the scope or boundary of the report 98, 106 – 1073.8 Joint ventures, subsidiaries, outsourced operations 113.9 Data measurement techniques and the bases of calculations 98, 1073.10 Reasons for any restatement of information provided in earlier reports 1063.11 Significant changes in reporting scope, boundary or measurement methods 106 – 1073.12 Index identifying locations of standard GRI disclosures in report C4 – C63.13 External assurance 1064. Governance, commitments and engagement4.1 Governance structure of the organization 15 – 164.2 Independence of supervisory board chairman 164.3 Independent members of highest governance body 164.4 Mechanisms for providing recommendations or direction to thehighest governance body4.5 Linkage between compensation of the governance bodies, executives and senior 16, AR 102managers and the organization’s performance (including social and environmentalperformance)4.6 Processes in place to ensure conflicts of interest are avoided 164.7 Identification of the qualifications and expertise needed by members of the highest16governance body to guide the organization’s strategy on sustainability topics4.8 Mission, values, codes of conduct and principles 12 – 154.9 Procedures of the highest governance body for overseeing the organization’s identification12 – 17and management of economic, environmental, and social performance4.10 Processes for evaluating the highest governance body’s own performance, particularly15 – 17with respect to economic, environmental, and social performance4.11 Explanation of how the precautionary principle is addressed 20 – 21, AR 79 – 814.12 Externally developed economic, environmental and social charters, principles or33, 94initiatives the organization endorses4.13 Memberships 39, 81 – 824.14 List of stakeholder groups 744.15 Basis for selection of stakeholder groups 74 – 754.16 Engagement of stakeholder groups C3, 76 – 834.17 Response to topics and concerns raised by stakeholder groups 76 – 77, 8016

GRI indicators Page reference* Status**Economic performance indicatorsManagement approach 12 – 13, 93 – 94EC1 Direct economic value generated and distributed 23, 99EC2 Financial implications of climate change 24EC3 Coverage of the organization’s defined benefit plan obligations 22 – 23, 54EC4 Financial assistance received from government 23EC5 Ratio of standard entry-level wage compared to local minimum wage 54, 71 – 72EC6 Selection of locally based suppliers 71, 84EC7 Hiring of local human resources 54, 58EC8 Infrastructure investments and services provided primarily for local benefit 25 – 27, 86 – 87EC9 Nature and scope of significant indirect economic impacts 70 – 73Environmental performance indicatorsManagement approach 33, 34 – 35, 95 – 96,ESEN1 Materials used by weight or volume 99EN2 Percentage of materials used that are recycled input materials 44, 99EN3 Direct energy consumption by primary energy source 32, 100EN4 Indirect energy consumption by primary source 32, 100EN5 Energy saved due to conservation and efficiency improvements 34 – 39, 100EN6 Initiatives to provide energy-efficient or renewable energy-based products andservices, and reductions in energy requirements as a result of these initiatives34 – 39, 41, 100,ESEN7 Initiatives to reduce indirect energy consumption and reductions achieved 34 – 39, 41, 46 – 47,100, ESEN8 Total water withdrawal by source 44, 100EN9 Water sources significantly affected by withdrawal of water 44EN10 Percentage volume of water recycled and reused 44EN11 Land in or adjacent to protected areas 48 – 49, 100EN12 Impacts of activities on biodiversity in protected areas 48 – 49EN13 Habitats protected or restored 48 – 49, 100EN14 Strategies, current actions and future plans for managing impacts on biodiversity 48 – 49EN15 Threatened species 48 – 49EN16 Direct and indirect greenhouse gas emissions by weight 34, 100EN17 Other relevant greenhouse gas emissions 42 – 43EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 34 – 39, 41, 46 – 47,100, ESEN19 Emissions of ozone-depleting substances by weight 42 – 43EN20 NOx, SOx and other air emissions by type and weight42 – 43, 101, ESEN21 Water discharge 44, 100EN22 Quantity of waste by type and disposal method 44, 101EN23 Significant spills 42 – 43EN24 Waste deemed hazardous under the terms of the Basel Convention 46EN25 Impact on biodiversity of discharges of water and runoff 44EN26 Initiatives to mitigate environmental impacts of products and services 35 – 39, 40 – 42EN27 Percentage of products whose packaging materials were reused 101EN28 Fines for non-compliance with environmental laws and regulations 33EN29 Significant environmental impacts of transporting products and other goods 36, 40 – 41, 46 – 47and materials used for the organization’s operations, and transporting membersof the workforceEN30 Total environmental protection expenditures and investmentsCurrently notquantifiableLabor practices and decent workManagement approach 53 – 54, 64 – 65,96 – 97LA1 Workforce by employment contract and region 53 – 54, 102LA2 Employee turnover by age group, gender and region 54, 102