Overview of material impacts, risks and opportunities

In view of the skills shortage and competing rivals, the Lufthansa Group could be affected by increased employee turnover, which may damage its reputation and brand value. The Lufthansa Group can counteract this with a strong culture, but also by introducing work-life balance measures and flexible working conditions. Adopting corresponding policies can enhance the Company’s competitiveness as an employer and its ability to retain and attract employees. Reasonable working hours and work-life balance measures have the power to improve overall employee satisfaction and productivity, reduce overtime and turnover, and bring down recruitment costs.

Measures on diversity, equality and inclusion help prevent risks such as gender inequality in recruitment and pay, as well as insufficient protection against violence and harassment at work. The inclusion of people with disabilities and ensuring equal opportunities for all employees counteracts discrimination and strengthens the psychological well-being of the Company’s workforce. Factors such as a lack of job security and social protection can negatively affect both financial stability and employee health. The Lufthansa Group is optimising measures on employee retention and employer attractiveness to improve satisfaction, safety and loyalty, which in turn can have a positive impact on the Company’s reputation and recruitment costs.

A complete overview of the Lufthansa Group’s material impacts, risks and opportunities can be found under ↗ ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model