Corporate Social Responsibility Report
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CORPORATE SOCIAL RESPONSIBILITY REPORT 2014 CorporateCorporate SocialSocial ResponsibilityResponsibility ReportReport 20142014 Index FOREWORD 3 INTERVIEW 4 AVIATION INDUSTRY DEVELOPMENTS 7 FINANCIAL RESULTS 8 ithin a very rapidly-changing environment, the CSR HIGHLIGHTS 2014 9 Air France-KLM Group is pursuing its transformation initiated some three years ago. Demand for air GOVERNANCE 10 W transportation is growing and opening up new horizons. CSR approach 12 CSR strategy 14 To benefit from this growth and reinforce our competitive positioning, we Corporate governance 16 are investing in our products and services. We are developing our dual Shareholders 17 Paris-Charles-de-Gaulle and Amsterdam-Schiphol hubs, the gateways Safety 18 that Air France-KLM is opening to the world. This requires resolute efforts Risk management 19 to increase our attractiveness, competitiveness and communication with Ethics 20 all our stakeholders. Public positions 21 Air France-KLM is mobilizing to create the travel of the future, an experience ENVIRONMENT 22 we envision as caring, innovative and responsible. Conscious of the Objectives and main achievements 2014 24 leading role we can play with our customers, partners, suppliers and the Key figures 26 industry, we enshrine innovation alongside citizenship and environmental Climate change policy 27 commitment at the heart of our business strategy. This commitment is Carbon footprint 28 affirmed each year through our membership of the United Nations Global Sustainable biofuels 30 Compact. Noise 32 Air quality 33 Making sustainable development increasingly integral to operations, Waste 34 creating a growth dynamic with all our staff, finding original solutions in all Energy and water 36 areas, such are the goals which will enable us to Research and innovation 38 reinvent our business. Biodiversity 39 Air France-KLM In 2015, France will be host country for the COP21 SUSTAINABILITY IN THE CUSTOMER EXPERIENCE 40 Climate Conference. This is an opportunity Objectives and main achievements 2014 42 is mobilizing to show that Air France-KLM is committed to Our approach 42 meeting its customers’ needs more effectively Dialogue with customers 44 to create the travel and anticipating changes in our society. Sustainable procurement 46 Best practices 48 of the future, Alexandre de Juniac A sustainable and innovative product range 50 Chairman and Chief Executive Officer, an experience Air France-KLM RESPONSIBLE HUMAN RESOURCES 52 Objectives and main achievements 2014 54 we envision as Key figures 56 caring, innovative Group social policy 57 Health and safety at work 58 and responsible. Equal opportunities 60 International human resources 61 LOCAL DEVELOPMENT 62 Objectives and main achievements 2014 64 Economic value 65 Local development around our hubs 66 Local development at destinations 68 Social partnerships 70 PERFORMANCE INDICATORS 72 2 AIR FRANCE-KLM Corporate Social Responsibility Report 2014 3 CorporateCorporate SocialSocial ResponsibilityResponsibility ReportReport 20142014 Index FOREWORD 3 INTERVIEW 4 AVIATION INDUSTRY DEVELOPMENTS 7 FINANCIAL RESULTS 8 ithin a very rapidly-changing environment, the CSR HIGHLIGHTS 2014 9 Air France-KLM Group is pursuing its transformation initiated some three years ago. Demand for air GOVERNANCE 10 W transportation is growing and opening up new horizons. CSR approach 12 CSR strategy 14 To benefit from this growth and reinforce our competitive positioning, we Corporate governance 16 are investing in our products and services. We are developing our dual Shareholders 17 Paris-Charles-de-Gaulle and Amsterdam-Schiphol hubs, the gateways Safety 18 that Air France-KLM is opening to the world. This requires resolute efforts Risk management 19 to increase our attractiveness, competitiveness and communication with Ethics 20 all our stakeholders. Public positions 21 Air France-KLM is mobilizing to create the travel of the future, an experience ENVIRONMENT 22 we envision as caring, innovative and responsible. Conscious of the Objectives and main achievements 2014 24 leading role we can play with our customers, partners, suppliers and the Key figures 26 industry, we enshrine innovation alongside citizenship and environmental Climate change policy 27 commitment at the heart of our business strategy. This commitment is Carbon footprint 28 affirmed each year through our membership of the United Nations Global Sustainable biofuels 30 Compact. Noise 32 Air quality 33 Making sustainable development increasingly integral to operations, Waste 34 creating a growth dynamic with all our staff, finding original solutions in all Energy and water 36 areas, such are the goals which will enable us to Research and innovation 38 reinvent our business. Biodiversity 39 Air France-KLM In 2015, France will be host country for the COP21 SUSTAINABILITY IN THE CUSTOMER EXPERIENCE 40 Climate Conference. This is an opportunity Objectives and main achievements 2014 42 is mobilizing to show that Air France-KLM is committed to Our approach 42 meeting its customers’ needs more effectively Dialogue with customers 44 to create the travel and anticipating changes in our society. Sustainable procurement 46 Best practices 48 of the future, Alexandre de Juniac A sustainable and innovative product range 50 Chairman and Chief Executive Officer, an experience Air France-KLM RESPONSIBLE HUMAN RESOURCES 52 Objectives and main achievements 2014 54 we envision as Key figures 56 caring, innovative Group social policy 57 Health and safety at work 58 and responsible. Equal opportunities 60 International human resources 61 LOCAL DEVELOPMENT 62 Objectives and main achievements 2014 64 Economic value 65 Local development around our hubs 66 Local development at destinations 68 Social partnerships 70 PERFORMANCE INDICATORS 72 2 AIR FRANCE-KLM Corporate Social Responsibility Report 2014 3 Interview A look back at 2014 and the outlook for the next years WHAT IS YOUR ASSESSMENT OF THE TRANSFORM PLAN? WHAT ARE offering for all European flights serving the Paris-CDG hub and the new THE RESULTS FOR THE AIR FRANCE-KLM GROUP? HOP! Air France proposition, mainly on departure from Paris-Orly. The aim Alexandre de Juniac is to meet market expectations more effectively and respond to our main The Transform 2015 strategic plan, launched in 2012, made way for a competitors. considerable improvement in Air France-KLM’s ability to compete. We We want to offer the best-in-class for the airline industry. By offering this com- reduced Group debt and implemented cost-saving programs. In parallel, plementary positioning, we are looking to address our entire customer base. we are pursuing an up-market move for our products and services, which we initiated three years ago. The Group has invested USD 1 billion to offer Pieter Elbers top-quality services on all its long-haul flights, aligned with the highest Political unrest around the world, a major economic crisis, spiralling oil prices, international standards. This enables us to again rank amongst the lea- competition from Middle Eastern airlines and low-cost carriers – all of these Alexandre de Juniac, Frédéric Gagey, Pieter Elbers, ding international airlines. The satisfaction scores of customers who have meant KLM had to make significant changes. Apart from that, the aviation Chairman and Chief Executive Officer, Chairman and Chief Executive Officer, Chairman and Chief Executive Officer, travelled in our new cabins have almost doubled, showing that we are on industry is still heavily regulated. However, KLM invested in its products and Air France-KLM Air France KLM the right path. services and in its fleet. We began installing our new World Business Class Deleveraging, cost savings and the upgrading of our products and ser- cabin interior aboard our Boeing 747 and 777-200 fleets. We phased out vices are all tangible results of the efforts made by the Group’s 100,000 our MD-11s, as part of our fleet renewal program, we welcomed new 777s, employees over the past three years. The next step is to win back market and our introduction team began preparing for the arrival of the 787. share with our new Perform 2020 plan. With Transform 2015, we have focused closely on structurally reducing our costs, reducing our net debt and, at the same time, improving our products In short and medium-haul travel, growth requires a response to THIS YEAR THE DEPLOYMENT OF NEW PRODUCTS AND SERVICES AND WITH AIR FRANCE AND KLM? and services. competition from low-cost carriers. This is the raison d’être of our CONTINUED AT AIR FRANCE AND KLM. IN YOUR VIEW, WHAT ARE THE Frédéric Gagey Transavia subsidiary, through which we plan to develop our low-cost DIFFERENTIATING FACTORS FOR AN AIRLINE? Transform 2015 proved effective and created a real momentum behind the HOW DO YOU SEE 2015 UNFOLDING FOR THE AIR FRANCE-KLM offer in Europe. Frédéric Gagey financial turnaround for Air France. We will benefit from its effects in 2015. GROUP? Concerning maintenance—where Air France-KLM ranks number two We are trying to differentiate ourselves by proposing innovative offers Air France is focusing on service quality and optimising on-board comfort. Alexandre de Juniac globally—we need to be closer to our customers, particularly in North attuned to our customers’ expectations. In 2014, we worked on in-flight In long-haul travel, we plan to continue to install our La Première suites The Group will begin to deploy the Perform 2020 plan. We need to reinforce America, the leading market. Lastly, we are continuing to restructure the comfort and on other aspects of travel such as airport customer experience. and new Business, Premium Economy and Economy cabins to offer all our our position as a major global player with strong foundations in Europe. cargo business. Within a year, we will carry almost all cargo in the bellies Our aim is to offer our customers a streamlined, autonomous airport expe- customers the highest possible level of comfort. We are playing the card of Our network gives us a competitive advantage but we are going to have to of passenger aircraft. Employees are at the heart of the process.