Sustainable business is imperative in a competitive environment

The Executive Board is committed to sustainable value creation in the sense of value-based company management. This value-based management approach entails measuring the Company’s performance by its cash value added (CVA). Further information on this subject can be found in “Value-based management and targets”.

The bonuses for managers and Executive Board members are also based on CVA. This approach further ensures that the focus lies on sustainable initiatives; it reduces the risk of pursuing strategies that may achieve short-term results but not lasting success.

To promote sustainable development Lufthansa also regularly identifies the risks and opportunities that are relevant to the Company and makes these an important feature of Company management. This guarantees that the Company takes the appropriate steps to be prepared for both positive and negative influences. More on our management of risks and opportunities can be found in the “Risk and opportunities report”.

We have a regular dialogue characterised by mutual respect with internal and external stakeholders. For a service company it is vitally important to be trusted. This applies equally to relations with investors, customers, suppliers and neighbours, but also to the way we treat each other within the Company. Alongside regular exchanges between employee representatives in Germany and abroad, a regular dialogue also takes place between Company management and local managers and staff, in what are known as “town meetings” for instance.

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