Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — ESG Presentation (March 2023)
30 slides from Deutsche Lufthansa's sustainability presentation, March 2023
Slide 1: ESG Investor Presentation March 2023
ESG Investor Presentation March 2023
Slide 2: Disclaimer
Disclaimer The information herein is based on publicly available information. It This presentation contains statements that express the Company‘s has been prepared by the Company solely for use in this opinions, expectations, beliefs, plans, objectives, assumptions or presentation and has not been v
Slide 3: Agenda
Our Approach to Sustainability Page 04 Environment Page 11 Social Page 24 Governance Page 31 Page 3
Slide 4: Our Approach to Sustainability
Our Approach to Sustainability Page 4
Slide 5: Pioneering spirit and technological competence have made sustainability a key element
Our pioneering spirit and technological competence have made sustainability a key element of our business and our strategy 1955 1994 2007 2011 2019 2021 2022 Noise reduction during First airline with Compensation First SAF long-term test First airline to Expansion of SharkSkin on engine tests sustai
Slide 6: Sustainable and responsible entrepreneurial practice is integral to corporate strategy
Sustainable and responsible entrepreneurial practice is an integral part of the Group’s corporate strategy The Group continuously improves its measures to ▪ safeguard the climate and the environment ▪ maintain responsible and fair relations with its employees ▪ actively engage in numerous social con
Slide 7: Lufthansa Group scores well in relevant sustainability rankings
Lufthansa Group scores well in relevant sustainability rankings ▪ Improvement from BBB (2017-2020) to AA (2022) due to strong business ethics practices ▪ Leader among 16 companies in the airline industry ▪ Robust carbon reduction efforts ▪ Labor management: unions protest ▪ Product safety and qualit
Slide 8: Environment
nvironment LUFTHANSA GROUP
Slide 9: Lufthansa Group has set ambitious climate protection goals
Environment Social Governance Lufthansa Group has set ambitious climate protection goals 1 Reduce its net CO2 emissions by 50% until 2030 compared to 2019 2 Achieve a neutral CO2 balance by 2050 3 Switch to carbon-neutral mobility on the ground in its home markets by 2030 Page 9
Slide 10: Emission reduction targets validated by Science Based Targets initiative (SBTi)
Environment Social Governance Group’s emission reduction targets successfully validated by Science Based Targets initiative (SBTi) Index LHG CO2 Emissions (not to scale) Major levers for CO2 Reduction: 110 Growth Fleet (SBTi relevance) Reduction ▪ Fleet rollover 100 SBTi Sector Guidance ▪ Sustainabl
Slide 11: Clearly defined path towards CO2 neutrality
Environment Social Governance Group has a clearly defined path towards CO2 neutrality for effective climate protection Investment in fuel-efficient aircraft key driver for reducing CO2 Broad commitment to Sustainable Aviation Fuels Efficient energy, resource and operational management Sustainability
Slide 12: Fleet transformation and investment in fuel-efficient aircraft
Environment Social Governance Lufthansa Group systematically drives fleet transformation and invests in modern and fuel-efficient aircraft Long-haul fleet Short-haul fleet Medium-term target 2019 New Normal 2019 New Normal New 15% 60% Intercont Size 380 321 321 Technology 60% 748 748 320 320 Share 1
Slide 13: Projects to accelerate next generation of SAF
Environment Social Governance Group involved in several projects to accelerate development & industrialization of next generation of SAF Sustainable Aviation Fuels (SAF) Predicted SAF production ramp-up1 in mt Availability of SAFs is projected to ~x5 cost of increase significantly, costs are Biogeni
Slide 14: Lufthansa Group joins Aviation Alliance Fit for 55
Environment Social Governance Lufthansa Group joins “Aviation Alliance Fit for 55” ▪ Lufthansa Group has joined “Aviation Alliance Fit for 55” ▪ Alliance supports the EU’s ambitious climate targets for aviation but seeks to prevent measures that would weaken airlines that are pioneers in climate pro
Slide 15: Social
Social LUFTHANSA GROUP
Slide 16: Premium proposition based on employing the best people in the industry
Environment Social Governance Lufthansa’s premium proposition is based on employing the best people in the industry Premium employees Premium offer ▪ Focus on recruiting the best people in the industry ▪ Industry-leading quality of service on board and on the ▪ Continuous investment in ground qualif
Slide 17: Group aims at being the first choice in aviation for employees
Environment Social Governance Group aims at being the first choice in aviation for employees Diversity and equal opportunities Work-life balance Talent management Health management and occupational safety Corporate citizenship Page 17
Slide 18: Group promotes diversity across its business
Environment Social Governance Group promotes diversity across its business ▪ Currently 172 nationalities in Lufthansa Group workforce ▪ Currently 40% women on Supervisory Board, and 16.7% women on Executive Board ▪ Group supports UN Global LGBTI Standards of Conduct for Business as an expression of
Slide 19: Medical Services & Health Management
Environment Social Governance Medical Services & Health Management maintains and improves health and working capacity of the Group’s employees Full range of services ▪ Aviation and occupational medicine ▪ Vaccinations and travel medicine ▪ Outpatient care ▪ Oher preventive and healthcare treatments
Slide 20: helpalliance unites projects initiated by employees
Environment Social Governance helpalliance unites well-established projects initiated by the Group’s employees with the combined force and network of the overall organization ▪ Group has been committed to social concerns for many years ▪ helpalliance: registered non- profit organization with 50 proj
Slide 21: Governance
; meal TT) nn ~ oT) Governance LUFTHANSA GROUP
Slide 22: Responsible corporate leadership targeting sustainable value creation
Environment Social Governance Responsible corporate leadership which targets sustainable value creation CORPORATE GOVERNANCE AT LUFTHANSA GROUP Essential legal base German Companies Act (Aktiengesetz) German Corporate Governance Code Ensure transparency towards shareholders Safeguard continuous trus
Slide 23: Supervisory Board – Experienced, diverse and independent
Environment Social Governance Lufthansa Supervisory Board – Experienced, diverse and independent 20 Board Members Lufthansa Supervisory Board tenure 10 Shareholder Representatives 15 10 Employee 5 Representatives 0 – 3 years 4 – 8 years Age Gender Nationality1 10% 20% 40% 5 5 45% 45% 80% 70% 90% 60%
Slide 24: Shareholder representatives contribute complementary skills to the Supervisory Board
Environment Social Governance Shareholder representatives contribute complimentary skills to the work of the Supervisory Board Page 24
Slide 25: Selection of Executive Board members guided by criteria
Environment Social Governance The selection of Executive Board members is guided by a comprehensive set of criteria Personal skill-set Additional criteria Aviation Diversity Professional Industry qualifications Knowledge Leadership International skills & At least one experience management Team fit w
Slide 26: Executive Board remuneration system aligns interests with shareholders
Environment Social Governance Executive Board remuneration system aligns the interests of management and shareholders Compensation Elements Base Salary • Financial targets (85%) • Non-financial targets (15%) + • Financial and share price performance- • 0.8 – 1.2 factor for individual performance Sho
Slide 27: Increased focus on cyber security
Environment Social Governance Further increased focus on cyber security to protect the business and our customers Cyber Resilient Organization Major Achievements 2021 Technical security Cyber defense Usability, culture and Future focus ▪ Log-file analysis of aircraft IT-components contribute to base
Slide 28: Comprehensive program helps to ensure compliance
Environment Social Governance Comprehensive program helps to ensure compliance Lufthansa Group Compliance Program intended to prevent staff and the Company from coming into conflict with law and to help them apply statutory regulations correctly Compliance Whistleblowing Corporate Audit Program Syst
Slide 29: Additional reading material
Additional reading material Sustainability Factsheet 2021 TCFD 2021 SASB 2021 Annual Report 2021 Corporate Governance Presentation 2021 CleanTech Hub
Slide 30: lufthansagroup.com
lufthansagroup.com LUFTHANSA GROUP