Balance 2015 ENG - Doing business responsibly and sustainably

At the same time, environmental protection is also becoming even more important in the face of climate change and the growing scarcity of resources. The Lufthansa Group meets these chal- lenges with a comprehensive sustainability agenda. It comprises the following action fields of entrepreneurial responsibility: Economic sustainability Corporate governance and compliance (see page 26), Climate and environmental responsibility (see page 32), Social responsibility (see page 70) Product responsibility (see page 58) Corporate citizenship (see page 90). By maintaining memberships in the UN Global Compact, the International Chamber of Commerce, Transparency International, the German Network for Business Ethics and in various institutions supporting indi- vidual aspects of human rights, the Group specifically acknowledges its intent to respect the standards set by each of these organizations and thus human rights as well (see page 27, Balance 2014). Risk and opportunity management To secure economic success, the Lufthansa Group identifies risks and opportunities relevant for its business at an early stage and at regular intervals – and incorporates them into the process of steering the Com- pany. The management of risks and oppor- tunities is integrated into all business pro- cesses. This allows the Company to be prepared for positive and negative influ- ences, so that it can react in a proactive and flexible manner (see from page 100, Annual Report 2014). Sustainability parame- ters part and parcel of variable remuneration At the Lufthansa Group, the remuneration of members of the Executive Board and managers is tied to the Company’s sustain- able success. Therefore, the variable part of remuneration is also influenced by sus- tainability parameters such as environmen- tal protection, customer satisfaction and employee commitment (see page 132, Annual Report 2014). Social developments and megatrends influence the business activities and the sustainability agenda of the Lufthansa Group in significant ways. Among the present and future challenges figure not only global popula- tion growth, increasing mobility and demo- graphic changes, but also the trend towards service-based societies, the spread of the Inter- net and people’s rising need for security. Doing business responsibly and sustainably The Lufthansa Group assumes its entrepreneurial responsibility in a compre- hensive manner. It has set itself the goal of conducting business across all areas according to sustainable and responsible principles and thus securing its future viability. Sustainability – along with corporate value creation, market leadership and customer satisfaction – is an important pillar of the Lufthansa Group’s strategy. 18 // Sustainable Business Practice

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