2. Materiality

The company discloses the aspects of its business operations that have a significant impact on sustainability issues and what material impact sustainability issues have on its operations. It analyses the positive and negative effects and provides information as to how these insights are integrated into the company’s processes.

The key topics for the airport are determined on the basis of a materiality analysis. The airport’s management approaches are also presented for selected topics. The airport’s business activities have a major impact on various areas and stakeholders: Munich, Bavaria, and Germany as business locations, the region and its inhabitants, the airport staff and passengers, as well as other companies in and around the airport plus further stakeholder groups. The overriding objective is to ensure the economic and sustainable business activity of the airport. However, the airport is also aware of the negative effects that its business may have, and is making targeted efforts to avoid these, keep them to a minimum and, where required, compensate for them.    
 
The sustainability management of the company incorporates the concerns of the stakeholders into its own concerns as well as into the strategic planning and operational implementation. Using a materiality process, FMG identifies and prioritizes the issues that are important to external stakeholders and airport employees.  

Materiality process  
  1. Identification: FMG conducts an annual survey of its main stakeholder groups and FMG management when it publishes its integrated report. It also uses the results of internal scenario analyses to understand the business model in the broader context of a sustainable approach to development.
  2. Prioritization: The results of the annual stakeholder and FMG management survey are presented in a materiality matrix with two equivalent axes, which represent the importance of the individual issues for internal and external stakeholders. These issues are then discussed with experts within the company, and content is allocated to the strategic fields of action. The issues are also incorporated into the targets process.In 2018, internal and external stakeholders’ top priorities were air traffic development, infrastructure and sustainable building, customer orientation, air traffic safety, and digitalization.  Further information: Management
  3. Validation: Members of the management team discuss the relevant issues as part of the annual strategic target agreement process. The stakeholder survey also provides external feedback on the content of the integrated report. Fields of actions and targets are adapted, expanded, or incorporated for the first time. The materiality matrix prioritizes the key sustainability topics contained in the strategic sustainability program.



    Further information: Sustainability program


    Risk management
    The Executive Board of FMG and all subsidiaries and affiliated companies is responsible for the early detection and prevention of risks that jeopardize the continuity of Munich Airport and the investments. Group Management has overall responsibility for an effective risk management system and lays the essential foundation for it by communicating and defining corporate strategy and targets. It formulates specifications for the risk management process and the organizational structure of the risk management system. The aim of the risk management system is to identify events and developments that may have a negative impact on the achievement of strategic and operational targets in good time and develop suitable countermeasures. It takes account of all aspects of entrepreneurial activity – economic as well as environmental and social.   
     
    The CO2 strategy as an opportunity
    The continuing increase in efficiency with energy-saving technologies and an associated improvement in the price-performance ratio of low emissions energy generation could lead to the costs of Munich Airport’s new CO2 strategy being lower than expected.  
      
    Natural disasters as a risk
    Natural disasters are an identified risk for example: Breaches of the Isar dams at Freising as a result of heavy rainfall could lead to the terminals being flooded. This can be countered through the gradual renovation of the Isar dams by the water authority. They have already been partially renovated. Insurance has been arranged to cover earthquakes, storms, hail, and flooding.  
     
    Further information: Outlook: Risks and opportunities report