Control system and values management
Munich Airport measures the performance of its managers using financial and non-financial indicators. The most important of these are the indicators that measure corporate sustainability and quality. Earnings before taxes (EBT) cover the economic perspective, while the Passenger Experience Index (PEI) focuses on the customer via the achievement of quality targets, which include increasing customer satisfaction as a strategic thrust. The carbon reductions cover the ecological perspective. With the inclusion of the Lost Time Incident Frequency (LTIF) as a social performance indicator in the management system from 2022, the Group will use indicators from all three perspectives of classic sustainability management (economy, ecology, and social).
FMG surveys internal and external interest groups each year to determine and regularly affirm the relevance of the most important performance indicators for stakeholders.
Earnings before taxes (EBT)
Earnings targets for managers are formulated on the basis of earnings before taxes (EBT).
EBT is the input factor for determining profitability. It relates to the consolidated earnings before taxes, calculated by applying the International Accounting Standards in the version adopted into European law by the European Commission.
The key figure «carbon reductions» measures the reduction in emissions in tonnes resulting from the targeted implementation of CO2-saving measures. But it can also be used to take into account factors such as the conservation of resources or the efficient use of energy. Only measures that result in annually recurring savings are counted (for example, replacement of lighting). One-off savings effects, such as the purchase of a defined quantity of biodiesel, are reported but not taken into account in the balance sheet. At the end of 2016, Munich Airport set itself the climate target of making its operations carbon-neutral from 2030. At least 60% of emissions are to be effectively reduced with the remainder being offset by high-value compensation measures. Emissions caused directly by Munich Airport itself through energy supply and fuel consumption (Scope 1) and emissions arising from purchased energy (Scope 2) are factored into the calculation.
Passenger Experience Index (PEI)
The PEI is a measurement model for customer satisfaction, which allows Munich Airport to derive location-specific targets adjusted to the needs of target groups, and to assign the fields of action for improving service to existing customer contact points. Responsibility for determining these values lies with an independent external service provider for reasons of objectivity. Using questionnaires, the provider surveys the satisfaction of departing and arriving travelers on a regular basis over the course of the entire year. On a quarterly basis and at the end of the year, Munich Airport thus receives a great deal of detailed information about the satisfaction of its passengers in ten categories along the passenger experience chain. The measurements originally planned for the whole year 2021 took place only in the second half of 2021 due to the ongoing coronavirus pandemic.
Lost Time Incident Frequency (LTIF)
The LTIF represents a benchmarkable accident frequency rate. It relates the number of occupational accidents to the number of hours worked. Only occupational accidents with a lost time of one day or more are included in the determination of LTIF. Commuting accidents are not taken into account here. Pursuant to Section 8 SGB VII, occupational accidents are accidents suffered by insured persons as a result of an activity justifying insurance cover pursuant to Section 2, 3 or 6 (insured activity). Accidents are temporary events that affect the body from the outside and result in damage to one’s health or death. This indicator is collected in the first year for the two largest Group companies (FMG and AeroGround Munich). Further companies will be included in the future.
The control intention is to reduce the frequency of occupational accidents, accident-related absenteeism and the associated accident costs, as well as to raise awareness of the accident issue as a whole.