Overview of material impacts, risks and opportunities

The use of non-renewable raw materials in aircraft manufacturing and in operations contributes to the depletion of natural resources and may affect local communities. Consumption-oriented business models further amplify this effect. At the same time, sourcing recycled materials can lead to higher product costs, which either erode profit margins or are passed on to customers. Non-compliance with statutory requirements entails financial risks such as liabilities, fines or the loss of licences. The Lufthansa Group can reduce cost risks and strengthen its reputation through actions such as reduced material use, reuse and recycling of materials deployed. Capital expenditure in new technologies to support the circular economy may open up new sources of income, as rising demand for circular solutions may boost market and brand potential. A complete overview of the Lufthansa Group’s material impacts, risks and opportunities can be found under ↗ ESRS 2 General disclosures – Material impacts, risks and opportunities and their interaction with strategy and business model.