20. Conduct that Complies with the Law and Policy

The company discloses which measures, standards, systems and processes are in place to prevent unlawful conduct and, in particular, corruption, how they are verified, which results have been achieved to date and where it sees there to be risks. The company depicts how corruption and other contraventions in the company are prevented and exposed and what sanctions are imposed.

Compliance management system Compliance covers compliance with all airport-related laws, specifications and regulations, national and international rules and standards and in-house rules and guidelines. Munich Airport has established a Group-wide compliance management system, which encompasses all organizational provisions ensuring compliance with the aforementioned rules. The Compliance department submits reports on the current status of the compliance management system to the Executive Board on a regular basis and to the Supervisory Board on an annual basis. Compliance risks are also communicated as part of the risk reporting to the Executive Board and shareholders if internal thresholds are exceeded. Regular dialog takes place between Risk Management and Compliance.  

Identifying and mitigating compliance risks The Compliance department prepares the compliance risk analysis with input from the divisions and combines it with the subsidiaries’ compliance risk analyses every year. Compliance risks are assessed in the same way as the risk management process. Once the compliance risk analysis has been carried out, the Executive Board is notified of the results in a report. The annual Compliance report to the Supervisory Board of FMG also includes the results of the compliance risk analysis. If there is an elevated loss potential and concomitant high probability of occurrence despite all the countermeasures taken, a detailed description is provided in the report. In respect of 2018, there were no elevated compliance risks after the countermeasures taken were considered.

Preventing corruption The compliance guidelines and the guidelines covering gifts and invitations support managers and employees in ensuring legally compliant and ethical behavior at the workplace. They are published on the Intranet and are therefore available to all employees. The guidelines also reference other guidelines with which employees must comply, thus for example ensuring compliance with public procurement law with regard to procurement and contracting processes, data protection, and information security. These ensure that processes and procedures are transparent and traceable, both internally and externally.The position of anti-corruption officer is exercised by the head of the Compliance department.  Public contracts include the procurement of services involving supplies, construction, and services. European public procurement legislation according to GWB and SektVO must be applied to procurement contracts of Flughafen München GmbH if the prerequisites from the following legal foundations exist:

Flughafen München GmbH then generally performs a Europe-wide, two-stage negotiation procedure with competitive bidding (suitability test). If the scope of application of the public procurement legislation is not established – for example, because the threshold value for Europe-wide award procedures is not reached – Flughafen München GmbH conducts a national invitation to tender. Only internal regulations apply here. The aim of these is to award contracts to the most competitive bidder. Public procurement legislation does not apply. For FMG, the following award principles on the basis of Section 97 GWB apply, inter alia: 

Principle of open competition
As many bidders as possible are to be given the opportunity to make their bid in a formal procedure.  

Principle of transparency
All bidders are to be given the same information. Where an award procedure is ongoing, the type of procedure may not be changed.

Principle of equality/ban on discrimination
All bidders are to be treated equally. Awarding contracts in lots – large contracts are to be divided into individual specialist and partial lots, in order to give small and medium-sized companies the opportunity to apply within the framework of their performance ability.  

Profitability requirement
The contract is to be awarded to the most economically advantageous bid. Given the legal requirements on the airport as a sectoral contracting entity, no «locality bonus» may be granted to companies from the immediate or nearby vicinity when awarding contracts.  

Awarding concessions
More details on the application of the Law governing the Awarding of Concession Contracts can be provided on request by the central contact partners.