Describe your business model (including type of company, products / services)
Flughafen München GmbH (FMG) is headquartered in Munich. As the parent company of the Munich Airport Group, it is the operator of Munich’s commercial airport.
Munich Airport operates in the aviation, commercial activities, and real estate business areas. The service portfolio offered by the Group covers virtually all the services available at the airport campus – from air travel including passenger and cargo handling through to retailing, hotels, and catering services. This integrated business model and depth of added value distinguish Munich Airport from its European competitors.
Munich Airport is committed to a corporate policy of sustainability. The orientation on economic, environmental and social goals ensures public acceptance of the airport and consequently the viability of its business model.
2016 was an extremely successful fiscal year for Munich Airport. At just under 1.4 billion euro, Group revenue increased by nine percent year on year, while earnings after taxes (EAT) rose to 152 million euro.
This outstanding financial result far exceeded expectations, and reflects the further sharp rise in traffic at our airport: with 42.3 million passengers, we were able to record three percent growth and set a new passenger record. The number of aircraft movements also continued to rise to over 394,000 take-off and landing procedures – almost four percent more than the previous year. This is a trend we expect to continue in the current year too (2017). Passengers voted Munich Airport the best in Europe and one of the best in the world for an impressive tenth time in twelve years.
For its reporting criteria, Munich Airport applies the principles and standard disclosures listed in the GRI standards on sustainability reporting published by the Global Reporting Initiative and the Corporate Accounting and Reporting Standard (Scope 1 and 2) as well as the Corporate Value Chain Standard (Scope 3) of the Greenhouse Gas Protocol Initiative issued by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) in conjunction with internal guidelines.
Integrated reporting: As a member of the <IR> Business Network, FMG conducts its integrated reporting using the principle-based approach set out by the International Integrated Reporting Council (IIRC) and, by extension, the <IR> framework. FMG’s report is based on the IIRC’s “guiding principles” and the necessary “content elements”.
Sustainability data: FMG has been involved in the Global Reporting Initiative (GRI) for nearly a decade and takes part in several of its working groups. Munich Airport’s “Thinking Ahead” report was prepared in accordance with the GRI standard comprehensive option. Furthermore, Munich Airport takes account of the GRI’s sector disclosures for airport operators. The GRI Content Index makes reference to the parts of the report that contain relevant information and explains if and how these are assessed. As it applies the German Sustainability Code (GSC), FMG also refers to the transparency criteria required under the GSC in the GRI index.
Information in the financial report: The information on the financial and earnings position is based on the requirements set out in the International Financial Reporting Standards and interpretations published by the International Accounting Standards Board and the International Financial Reporting Interpretations Committee and adopted into European law by the European Commission. The supplementary requirements according to Article 315a (1) of the German Commercial Code (Handelsgesetzbuch, HGB) also apply. The Group management report and financial statements are audited by KPMG AG Wirtschaftsprüfungsgesellschaft in accordance with section 317 of the German Commercial Code (Handelsgesetzbuch, HGB) and in compliance with the German standards for the proper audit of financial statements as defined by the German Institute of Public Auditors (Institut der Wirtschaftsprüfer – IDW).
In the Integrated Report 2016, KPMG AG Wirtschaftsprüfungsgesellschaft auditors conducted an audit with limited assurance on selected information and figures related to the sustainability performance that are of material relevance to FMG. The “International Standard on Assurance Engagements” (ISAE) 3000 was used as a basis for the audit.
As part of the annual environmental statement, information on the environmental management system was validated by accredited environmental auditor Dr. Reiner Beer (DE-V-0007) of Intechnica Cert GmbH (DE-V-0279) in accordance with EMAS 1221/2009 and ISO 14001 + Cor.1: 2009.
The auditing framework covers the following content:
- Assessing the methods for determining material sustainability issues and corresponding reporting boundaries, including the results of stakeholder engagement.
- Conducting a risk assessment, including a media analysis, of relevant information on Munich Airport’s sustainability performance in the reporting period.
- Conducting a survey of managers and employees at Munich Airport who are responsible for managing aspects defined as material.
- Evaluating the design and implementation of systems and processes for determining, processing, and managing the selected information and figures from the sustainability program, including data consolidation, included in the scope of the audit.
- Interviewing employees at Group level who are responsible for collecting and consolidating data and for conducting the internal checking activities related to said data.
- Evaluating internal and external documents in order to determine whether the information and figures regarding the sustainability performance are backed up by sufficient evidence.
- Analyzing data and trends that have been reported for consolidation at Group level by Munich Airport’s subsidiaries.
- Evaluating the overall presentation of the selected information and figures related to the sustainability performance in the report.