17. Human Rights

The company discloses what measures it takes, strategies it pursues and targets it sets for itself and for the supply chain for ensuring that human rights are respected globally and that forced and child labour as well as all forms of exploitation are prevented. Information should also be provided on the results of the measures and on any relevant risks.

The Munich Airport Group’s business operations are primarily confined to Germany. Here, human rights are enshrined in law.  In calls for tender for international services, it is ensured that national and international laws and agreements are applied. This is documented again when contracts are signed. When choosing its business partners, the subsidiary Munich Airport International GmbH (MAI), which is active abroad, performs a sanction list review and a detailed due diligence review. 
 
Munich Airport adopted the national action plan for business and human rights of the Federal Government at the end of 2018. Within this framework, it has initiated and examined the potential risks and response to human rights issues in the different areas of the company that may be affected in this regard. An initial evaluation and summary is expected in summer 2019. Within this framework, a review process is planned for the risk analysis and a stipulation of the resultant risks in the risk management system for fiscal year 2019. 


Legal provisions in respect of procurement
The Munich Airport Group, a sectoral contracting entity, operates in the field of «Ports and Airports» As such, it ensures its procurement policy is consistent with public procurement legislation. Where public contracts are involved, calls for tenders are issued on a Europe-wide basis in keeping with the binding regulations under procurement law. The Group normally puts contracts that are not subject to public procurement legislation to tender based on a formal process.  


Supplier management
In 2018, Flughafen München GmbH assessed around 150 of its framework agreement partners according to the following criteria: The quality of the product or service, reliability of delivery, service and price trends, as well as the company’s certification according to quality and environmental standards. In the event of poor outcomes, the suppliers were given the opportunity to eliminate existing deficiencies in supplier audits. As the suppliers are in existing contractual relationships and thus in constant communication with the relevant divisions, the shortcomings are addressed directly and remedied. Where the shortcoming was not remedied, a notice of defects would be issued. Where a supplier’s performance is consistently poor or if shortcomings are not permanently remedied, there is no further call obligation in the case of framework agreements and individual measures with phased call-offs. Of the companies supplying Munich Airport, 98 percent are headquartered in Germany. Of these, 61 percent are from Bavaria, and 38 percent are from Munich and the area surrounding the airport.  


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.  


Further information: Outlook: Risks and opportunities report  


Elimination of child labor 
The Munich Airport Group’s compliance with statutory regulations means that there is no risk of incidents of child labor in connection with the Group’s business activities in relation to the employment of its own workers. When hiring employees, for example, the Group complies with the minimum age requirements set by national statutes.  Munich Airport Group complies with statutory regulations and provisions. This is based on the applicable legislation and legal framework. When sourcing product groups where the likelihood of child labor is high, steps are taken to ensure that none is involved. Manufacturers of high-risk products in areas known to use child labor are required to present independent certification that they do not. Clauses to this effect are integrated in the calls for tenders and awards documentation. Thus, for example, in the call for tender pertaining to uniforms, a provision was included that the contractor must guarantee compliance with ethical obligations (no child labor, environmentally-sustainable manufacture and processing of substances and materials, healthy working conditions in the workplace at the manufacturers). Furthermore, bidders were required to submit a declaration regarding compliance with the ILO core labor standards.  


Elimination of forced labor
The Munich Airport Group rejects all forms of forced labor.Munich Airport Group complies with statutory regulations and provisions. This is based on the applicable legislation and legal framework. During the reporting period, no activities were identified as having the risk of forced or involuntary labor. For the procurement of supplies and services in which the problem of forced labor could be a factor, the contractors must commit to comply with national and international laws and agreements on the prohibition of forced or involuntary labor.  


Employee training on human rights
At FMG, information that must be available on an ongoing basis according to the German General Equal Treatment Act is published on the Intranet and issued through management. Managers, in particular, receive regular training.  


Sustainability issues in the supply chain
The Munich Airport Group’s business operations are confined to Germany .Here, human rights are enshrined in law. In calls for tender, the Group makes sure that national and international laws and agreements are applied. This is reaffirmed in legally binding form when contracts are signed. With a total procurement volume1) of around 750 million euros in 2018, the Munich Airport Group is an attractive and reliable client in the region. Orders are distributed across 139 product groups from sectors including construction, supplies, and services. A party submitting a tender must confirm it complies with the statutory provisions in order to rule out anything that would prevent it taking part in public procurement or tendering procedures. Those submitting tenders must also provide evidence that they comply with the standards relating to quality assurance and environmental management. The top priority when commissioning products or services is to draw up agreements that satisfy environmental, social, and economic requirements. (Legal basis: Section 21 SektVO (Sector Ordinance), Section 7 SektVO) For example, in the case of the new tender for uniforms 2016/2017 for approximately 2,000 employees of Flughafen München GmbH, compliance with the minimum criteria with respect to ethical standards and ecological and human-ecological requirements for substances and materials was a component of the performance specification. The Munich Airport Group awards contracts on the basis of cost-effectiveness and places particular emphasis on the utilization of materials and products that are both durable and use low levels of natural resources. For investment goods, any subsequent costs for servicing and maintenance (life cycle costs) are also considered, where necessary.The Group is mainly supplied by business partners in the region, which helps reduce transportation distances and CO2 emissions.
For example, Allresto purchases food worth almost 20 million euros each year – nearly all of which originates from Bavaria, and a good 50 percent of which comes from the area directly around the airport.   The processing of predominantly regional and seasonal products is an important criterion for cooperation with the airport. Aspects such as short journey and delivery distances and the sustainability of procurement also play an important role in the selection of suppliers and business partners.   
 
Further information: Outlook: Risks and opportunities report 
 
1) The figures relate to the total procurement volume of the Munich Airport Group in 2018.