Overview of material impacts, risks and opportunities
In the area of business conduct and corporate culture, the Lufthansa Group is faced with various impacts, risks and opportunities arising from its business activities and throughout its value chain. A particular focus here is on integrity and compliance, whistleblower protection as well as more sustainable supply chain management.
Business ethics and the prevention of corruption are integral parts of the Lufthansa Group’s corporate culture.
The Lufthansa Group has identified that a lack of clear guidelines and regulations relating to anti-corruption and anti-bribery standards may increase the risk of unethical conduct on the part of employees and weaken their awareness of compliance issues. This poses the risk of unfair competitive practices which might, in the long term, jeopardise confidence in the Company’s integrity.
Whistleblower protection is designed to improve the identification of misconduct within the Company
An effective whistleblower system is a central component of the Lufthansa Group’s strategy. It helps to identify misconduct – such as in connection with corruption, unsafe working conditions or environmental violations – at an early stage and to implement appropriate measures. In this way, the Lufthansa Group aims to promote a culture of transparency and responsibility, strengthening employees’ trust in the organisation. Inadequate whistleblower protection, on the other hand, may lead to legal sanctions, loss of reputation and undermined investor confidence, which may have an adverse impact on financing options and Company’s performance.
Supply chain management at the Lufthansa Group
By applying clear social and environmental selection criteria in its management of suppliers and through conducting regular performance evaluations based on its Supplier Code of Conduct, the Lufthansa Group aims to ensure that its business partners act responsibly. This may not only help to improve working conditions and protect the environment but also strengthen the Group’s reputation, increase its efficiency, and boost the resilience of its supply chains as well as its focus on sustainability. At the same time, insufficient fulfilment of these standards might potentially lead to reputational and compliance risks.
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.