4. Depth of the Value Chain

The company states what significance aspects of sustainability have for added value and how deep in the value chain the sustainability criteria are verified.

Munich Airport does not have a conventional supply chain, but procures a wide range of products and services needed to operate an international hub airport. The range of essential products are comparable to the requirements of a small town: The 139 product groups range from things like office supplies and road construction to vehicles and buildings. In 2018, the total procurement volume1) of the Munich Airport Group amounted to around 750 million euros. All procurement by specialist areas and subsidiaries is handled by the central Group-wide product group management system. Only the merchandise, food & beverage, and medical equipment product groups are procured directly from subsidiaries. FMG takes sustainability criteria into account throughout its entire value-added chain. Its main focus is the area of procurement. When issuing calls for tenders for services, it always adheres to national and EU legislation and treaties, the application of which is then confirmed again when the offers are submitted. The purchasing policies contain precise sustainability criteria, while adherence to competition requirements is monitored by the in-house Compliance division. As part of its supplier management process , FMG conducts annual assessments of around 150 partners under framework agreements. In 2018, suppliers were again evaluated on the basis of such criteria as product quality or the quality of the service provided, reliability, and developments in terms of services and pricing, as well as whether companies were certified in accordance with quality and environmental standards. In the event of poor outcomes, the suppliers are given the opportunity to eliminate existing deficiencies in supplier audits. FMG’s current supplier structure allows regional economic cycles to be strengthened, traffic emissions lowered, and the risk of violation of human rights reduced.    
Around 5,100 suppliers work for the Munich Airport Group.The supplier structure during 2018 was relatively consistent with the previous year. 98 percent of the procurement volume of the airport went to companies headquartered in Germany. Of these, 61 percent are from Bavaria, and 38 percent are from Munich and the area surrounding the airport.   
Munich Airport has regional economic impact at a number of different levels. A basic distinction is made between the effects resulting directly from airport operations on the one hand and the effects of its use on the other.  

Further information: Value creation 
1) Figures relate to the total procurement volume of the Munich Airport Group in 2018.

Value-added effects resulting from airport operation The value-added effects generated by airport operations can be categorized into direct, indirect, and induced effects.