CSR 2020 50TH ANNIVERSARY EDITION Responsibility Corporate Social 2020 airlines international

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Content 01 message from the CEO 05 about this report Message from the CEO 6 About this report 86

02 about our company 06 contribution Our mission, vision and values 10 to the SDGs Our activities 11 Our contribution to the SDGs 92 Destinations route map 2020 12 At a glance 19 07 gri appendix Corporate governance 20 GRI appendix 96 Executive committee 22 Shareholders 24 08 gri content index Opeational structure GRI content index 102 of the organization 25 Cargolux, celebrating 09 independent and 50 years of success 27 limited assurance report Independent and limited 03 sustainability assurance report 108 approach Journey to sustainable 10 glossary developement 32 Glossary 120 Stakeholders 34 Shared values creation strategy 36 Our value creation model 38

04 sustainability commitment Ensuring a responsible and inclusive corporation 42 Developing sustainable operations 58 The Greenhouse Gas Protocol defines three scopes of emissions 70 Sharing values with communities 77 message from 01 the ceo message The year 2020 was unlike any The team demonstrated immense GRI 102-14 other for many reasons. The flexibility and this approach enabled heavy workload pandemic-related the company to respond to the Cargolux’s commitment to social, from the CEO restrictions and upheaval increased demand. The network environmental, and economic GRI 102-14 of our traditional working patterns was adapted to pressing requirements viability runs deep and is engrained posed a set of unprecedented and capacity was optimized in each of the company’s endeavors. challenges both for the industry and to ensure the supply chain kept The airline celebrated its 50th for Cargolux. Keeping our employees moving as efficiently as possible. anniversary in 2020, a milestone safe worldwide while navigating The heavy loads, long routes, that reflects how important ethical sanitary measures, travel restrictions, and uncongested skies also yielded and sustainable practices are and increased demand required enhanced efficiency allowing our to ensure a long-lasting operation. dedication and resourcefulness. airline to achieve impressive results I am pleased to see how far Yet one core consideration in terms of fuel efficiency. the company has come from remained intact: our commitment This performance coupled with its humble beginnings and I look to sustainability. the fuel efficiency initiatives in place forward to the developments ahead. reflect our strong commitment Early in the year, as the pandemic to sound flight operations. As environmental and social progressed and lockdown situations questions become increasingly emerged, the importance of air Always intent on staying central to business decisions cargo in the global supply chain at the forefront of the industry, in the industry, Cargolux can be was increasingly highlighted. Cargolux pushed forward proud of its achievements so far. The considerable decrease with numerous projects throughout However, there is still a long way of passenger operations and the year in addition to handling to go and many challenges ahead the related belly-hold capacity, the heightened demand. to remain a leader in sustainable created a surge in demand Our journey towards digitalization operations. We have several projects for cargo carriers. Airlines such continued and several solutions under development for the voluntary

as ours were heavily solicited were implemented in line with reduction of CO2 emissions. to fly essential supplies, including the foreseen schedule. We are also closely looking into PPE and healthcare products, The organization also introduced our CSR targets to fine-tune them where they were most needed. a new and improved cyber security and establish a roadmap that covers program to enhance safety within all our identified material topics As international flights became the Cargolux network. in a coherent and holistic manner. scarce, our airline provided an air The integration of the IT department This framework will help shape bridge between Europe, Asia, within the company structure our future business strategy and and the Americas. Cargolux and was finalized, providing a solid define progression areas for the its teams worked tirelessly support system. This was a significant future. to keep goods flowing despite asset especially as inter-personal the circumstances and leveraged communication moved online due There are many interesting our position and expertise to keep to home working. developments ahead for the Richard Forson communities safe. Numerous charter company and I look forward President and flights were organized to ensure Despite these unforeseen to working on these topics in close Chief Executive Officer populations were equipped to face circumstances and restrictive cooperation with our stakeholders. the pandemic. measures, Cargolux still managed Closing on this eventful year, I would to move to its new headquarters; like to conclude by extending The welfare of our employees a building designed with sustainability my heartfelt thank you to the is a priority topic for Cargolux in mind. As well as providing Cargolux team around the globe and was our primary concern since enhanced energetic features who have demonstrated dedication the outbreak of the pandemic with and supporting a waste avoidance and commitment throughout this numerous measures introduced philosophy, it was conceived challenging year. I would also like to preserve their health and protect to eliminate single-use plastic to salute our customers, partners, them against the virus. Early in in all areas including catering. and all other stakeholders for the year, the company focused The office space is connected engaging on this CSR journey on procuring protective equipment to the maintenance center with us. I look forward to continuing to keep its personnel safe and reduce to streamline processes and foster on this path to cement Cargolux’s contamination risks. As the virus exchanges between employees. position as a leading provider spread to all four corners of the globe, Although conditions in 2020 did not of sustainable air cargo solutions. sanitary measures were implemented allow us to explore the full potential such as working from home where of this work environment, ever possible and modified shift I am confident that having most patterns for those whose presence Luxembourg-based employees was required on site. A monitoring in a single location will positively system was also introduced for flight contribute to personal and crew to avoid layovers in severely professional development. affected areas and minimize exposure to stringent quarantine requirements at destinations.

6︱csr report 2020 csr report 2020 ︱ 7 about our 02 company our mission, our vision our activities Cargolux Airlines International S.A., , the airline’s headquartered in Luxembourg, subsidiary based in , was ’s To be “The Global Cargo Carrier GRI 102-1 I GRI 102-2 is a leading provider of reliable, largest all-cargo carrier in 2020. vision and values of Choice” GRI 102-3 I GRI 102-4 high-quality air cargo services, Cargolux continues to build on its GRI 102-16 GRI 102-5 I GRI 102-6 and the Global Cargo Carrier existing core competency, pushing GRI 102-7 of Choice. In half a century global consistency and leveraging our mission of operations, Cargolux has the evolution of its global network become an expert in handling to fulfill industry-specific needs. We deliver consistent flexibility a variety of delicate shipments. The airline thinks beyond just and reliability through our valued Live animals, perishables, the in-flight needs of its cargo. and dedicated employees temperature-sensitive commodities, It responds to customers’ creating sustainable benefits for all and outsized freight, all benefit door-to-door requirements. stakeholders in a safe environment. from Cargolux’s experienced touch. The airline offers an extensive The company’s flexible charter product portfolio that gives services offer the advantage the cargolux spirit customers expert treatment for even of dedicated, tailored solutions the most unusual requirements. for its clients. The airline operates Cargolux is unequaled in the a number of charter aircraft that can 56* provision of services that call be booked and deployed at very Scheduled flight for management of sensitive short notice. With staff stationed • Leading by example destinations worldwide and valuable shipments. across the globe, Cargolux Charter gives customers 24/7 coverage. • Respecting each Starting with a single Canadair other CL-44 swing-tail aircraft in 1970 As well as regular fleet upkeep, with a capacity of about 30 tonnes, Cargolux’s maintenance center, the company developed into Europe’s based in Luxembourg, offers • Working as a team number one all-, ranking third-party maintenance services. 6th in IATA’s scale of freight operators. Specialized in 747 Cargolux was the world’s first maintenance, the airline offers • Being dedicated operator of both the 747-400F a range of specialized maintenance and the 747-8F. Today, services such as, but not limited and passionate the airline operates a fleet of to, avionic modifications, structural 30 747 freighters. With more than repairs, worldwide AOG support 30+ 85 offices in over 50 countries, and hangar maintenance up • Going the extra mile Countries Cargolux works cooperatively with to and including C-checks. trucking contractors to move cargo • Being cost efficient over its worldwide network that covers some 75 destinations. • Being flexible

• Delivering service excellence

3.6% Worldwide market share

* The Cargolux Route Map reflects the network as at 31 December 2020. 6th The network was adapted IATA ranking for throughout the year to cater for scheduled cargo carriers, market requirements in the context measured in FTKs of the COVID-19 pandemic.

10︱csr report 2020 csr report 2020 ︱ 11 destinations route map 2020

Prestwick Calgary Stansted Amsterdam Prestwick Calgary Seattle Luxembourg Stansted Amsterdam New York Vienna Budapest Seattle Luxembourg Almaty Komatsu Chicago Columbus New York Beijing Tokyo/Narita Los Angeles Indianapolis Milan Tbilisi Vienna Budapest Almaty Seoul Komatsu Chicago Baku Atlanta Columbus Beijing Tokyo/Narita Los Angeles Indianapolis Milan Tbilisi Shanghai Dallas Seoul Houston Beirut Baku Atlanta Shanghai Dallas Amman Xiamen Taipei Miami Beirut Zhengzhou Houston Shenzen Amman Guadalajara Xiamen Taipei Mexico City Miami Dammam Hanoi Bahrain Shenzen Riyadh Kuwait Guadalajara Doha Mexico City Muscat Dammam Bahrain Hanoi Riyadh San Juan DubaiBangkok Doha Muscat Ho Chi Minh City Hong Kong San Juan Bangkok Kuala Lumpur Ho Chi Minh City Singapore Kuala Lumpur Singapore

Nairobi Jakarta Jakarta

Sao Paulo Rio de Janeiro Curitiba Sao Paulo Rio de Janeiro Curitiba

Johannesburg

This Route Map reflects the network as at 31 December 2020. The network was adapted throughout the year to cater for market requirements in the context of the COVID-19 pandemic.

(ALSO) FLOWN BY CARGOLUX ITALIA

12︱csr report 2020 csr report 2020 ︱ 13 building bridges: competency & confidence GRI 102-12 I GRI 102-13

Industry association memberships

Cargolux takes its commitment to the business community and industry seriously. Integral to the development of industry-wide solutions are partnerships that can afford opportunities for expansion, progress, and advancement.

IATA Good Distribution Practice (GDP) Trade association for the world’s This certificate attests that airlines helps to guide and Cargolux’s management system formulate industry policy on critical meets World Health Organization aviation issues guidelines and the EU directive “Guidelines on Good Distribution Practice of Medical Products for Human Use”

Safety Management Best Practices EASA CAT-CAT, IATA Safety Group, IATA Hazard Identification Task Force & EASA European Cool Chain Association Operators Flight Data Monitoring Initiative. These groups promote safety in the industry

International Air Transport Association IATA TTTF Time and Temperature Task Force (A4E) Europe’s largest airline association represents the interests of airline members and their customers

IATP International Airlines Technical Pool

Cargo iQ This IATA interest group improves end-to-end processes in the air cargo transportation industry

IAAIA International Association of Airline Internal Auditors

annual report 2020 ︱ 14 csr report 2020 ︱ 15 GRI 102-12 I GRI 102-13 Luxembourg association memberships GRI 102-12 I GRI 102-13 awards & recognition

Animal welfare association CSR association memberships memberships and collaborations

FEDIL Cargolux Passes 7th Business Federation Luxembourg IOSA Audit Cargolux passed its seventh (bi-annual) IOSA audit, assessing IPATA UN Global Compact operational management and International Pet and Animal Cargolux pledged to act control systems. The exceptionally Transportation Association in a socially and environmentally good results in this internationally responsible manner in 2007 and recognized evaluation system to support the SDGs in 2016 reflect Cargolux’s commitment Cluster for Logistics to continuously monitor and Association of logistics service enhance procedures and providers, research institutes establish high standards and other organizations, promoting ATA members, optimizing activities, Animal Transportation Association and building competencies SAFUG The Sustainable Aviation Fuel Users Group is a cross-industry initiative aimed at promoting and marketing sustainable aviation biofuels GDP Cargolux successfully passed IATA LAPB its GDP renewal audit Live Animal and Perishables Board CHINALUX -Luxembourg Chamber of Commerce RSB Roundtable on Sustainable Biomaterials

UFW IIA Luxembourg Ecovadis’ Gold Rating United for Wildlife Institute of Internal Auditor Based on the sustainable development Luxembourg Chapter standards of the Global Reporting Initiative (GRI), the United Nations INDR Global Compact, and ISO 26000, this Luxembourg’s National Institute rates sustainability in global supply of Sustainable Development chains and the airline’s corporate social responsibility performance Loic Luxembourg Open Innovation Club

IMS Luxembourg Safe. Secure. Sustainable. Inspiring More Sustainability SkyCell award Cargolux has been recognised as “The safest Partner Airline” by SkyCell at their Quality Award Ceremony

Chambre de Commerce Luxembourg (Groupe de Travail developpement Durable)

ESR label by INDR Cargolux has been recognised as ‘Socially Responsible Enterprise’ by Luxembourg’s INDR Vision Zero Reducing the number and severity of workplace accidents 16︱csr report 2020 csr report 2020 ︱ 17 at a glance Cargolux keeps on creating wealth for stakeholders through GRI 102-7 I GRI 103-1 the economic value it generates GRI 103-2 I GRI 103-3 and distributes. To be able to create GRI 201-1 value over the short, medium, and long-term, Cargolux relies on different capitals and leverages – intellectual and human, natural and manufactured, etc. – that the company needs to continuously invest in.

consolidated figures 2020 2020 2019 2018 2017

3,170,697 2,258,650 2,634,033 2,263,553 Total income in USD ‘000 Profit/loss for the year in USD ‘000 768,669 20,242 211,206 122,301

Shareholder’s equity in USD ‘000 1,930,505 1,157,246 1,183,008 985,365

Tonnes sold 1,107,071 1,009,338 1,053,626 1,067,238

Tonne-kilometers flown (millions) 8,934 8,091 8,409 8,480

Available tonne-kilometers (millions) 13,013 12,316 12,375 12,102

2,368 Employees worldwide (CV & C8) (as at 31 2,253 2,136 2,027 December 2020) 1,726 (as at 31 1,630 1,531 1,436 Luxembourg December 2020)

Boeing 747-8 freighters (units) 14 14 14 14

Boeing 747-400 freighters (units) 10 11 11 11

Boeing 747-400ERF (units) 6 5 2 2

18︱csr report 2020 csr report 2020 ︱ 19 corporate board of directors HNCA Representatives governance Shengzhen Kang Representatives Chairman of Henan Airport Group, AS AT DECEMBER 31, 2020 Director Paul Helminger GRI 102-18 Chairman of the Board of Cargolux, Mingchao Zhang Director Chairman of Henan Civil Aviation Development and Investment Co, Tom Weisgerber Ltd, Director Premier Conseiller de Gouvernement Ministry for Sustainable Development Shengbo Yuan and Infrastructure, Director General Manager of Luxembourg Project Office of HNCA, Director Giovanni Giallombardo Chairman of the Board of Luxair Group, Director committees of the board of directors

Luxembourg State Representative Compensation Committee

Anouk Agnes Paul Helminger Conseiller de Gouvernement 1 ere classe au Ministère d’État, Director Françoise Thoma Tom Weisgerber

BCEE Representative Shengbo Yuan

Françoise Thoma President and Chief Executive Officer Audit Committee Banque et Caisse d’Épargne de l’État, Director SNCI represented by Patrick Nickels

Françoise Thoma SNCI Representative Tom Weisgerber

Société Nationale de Crédit et Shengbo Yuan d’Investissement (SNCI), Director (corporate mandate) represented by

Patrick Nickels Conseiller de Gouvernement 1 ere classe

Cargolux Staff Representatives

Dirk Becker Captain, Director

Christine Dargan Manager (Sr) Crew Control, Director

Bettina Faulhaber Manager Sales & Marketing Crew Training, Director

Darrell Myers Captain, Director

Yves Hendel Assistant Lead Technician Line & Hangar Maintenance, Director

20︱csr report 2020 21 executive GRI 102-18 committee GRI 102-18

Richard Forson Maxim Straus Onno Pietersma Domenico Ceci Claude Zehren President and Executive Vice-President Executive Vice-President Executive Vice-President Executive Vice-President Chief Executive Officer and Chief Financial Officer Maintenance & Engineering Sales & Marketing Flight Operations

22︱csr report 2020 csr report 2020 ︱ 23 shareholders operational structure GRI 102-18 of the organization GRI 102-18

35.10% 35.00% 10.91%

commercial planning & corporate global logisitics human resources, development legal affaires & compliance LUXAIR HNCA BCEE

finance & administration flight operations maintenance sales & marketing 10.67% 8.32% & engineering

SNCI LUXEMBOURG STATE CSR governance

Cargolux has constituted a CSR The CRS Committee meets Committee comprised of members periodically to define and review from across the organization. CSR policies, priorities, strategy, The Committee is sponsored targets and KPIs. As subject by the CEO and chaired by the Head matter experts in their fields, of Corporate Communications each committee member coordinates & CSR. Key functions relevant working groups within their area for the company’s CSR program to address CSR-related issues. and from each division have They also monitor the CSR been mandated by the division’s performance within their area respective EVP to fulfill all CSR- and support the development related duties. of the program in line with company objectives.

24︱csr report 2020 csr report 2020 ︱ 25 Loftleiðir was converting cargolux – In 2020, to a jet operation and had surplus CL-44 aircraft, and Salén, celebrating Cargolux celebrated a shipping company based in Sweden had been analyzing 50 years a remarkable opportunities in the air cargo industry. Through mutual of success milestone, a milestone connections, the three parties got in contact and initiated seldom reached by discussions on the possibility of a joint venture. an all-cargo carrier, On March 4th 1970, the three its 50th anniversary. ambitious partners shook hands to create what was to become one of the world’s leading all The year should have been one cargo-carriers. The airline would of festivities, looking back be based in Luxembourg, at the extraordinary journey at the heart of Europe, and each the company has been through entity would contribute with its unique and its achievements throughout expertise; Loftleiðir was responsible the years. However, this anniversary for operational and technical matters, year was overshadowed by Salén for sales, and the Luxair group the global pandemic and for administration; Cargolux was born. its unprecedented consequences. THANK YOU Despite these hurdles, Cargolux rose With a single aircraft and a handful to the challenge, and continued of employees the operation was to deliver essential supplies on track and the airline wasted no time FOR YOUR SUPPORT where they were most needed. in getting off the ground! On May 10th, the Air Operator Certificate was issued Throughout its half-century and Cargolux operated its very first of existence, the cargo carrier flight the next day. This initial service has faced numerous challenges, was a ferry flight from Stockholm- but determination has always been Arlanda to New York-JFK to pick up stronger. Looking back at the strawberries and iceberg lettuce. origins and the history of Cargolux, it becomes clear that passionate It quickly became clear that people and dedication are central the airline was animated by a unique to success. Cargolux’s unique pioneering spirit and employees story itself is one of perfect timing. were committed to making it a In the late 60’s, the Luxembourg sustainable enterprise. By the end government was eager to diversify of 1972, the airline was operating the economy and had approached a total of 5 CL-44 freighters, Loftleiðir Icelandic which was three of which were the stretched operating out of the Grand-Duchy version that offered more volume at the time, to discuss partnerships. and therefore presented significant Several options were explored; commercial advantage. a first-class hotel, a tour operator, and a cargo airline.

50 years after our foundation on 4 March 1970, we are proud of being one of the world’s leading cargo carriers.

A heartfelt thank you for your support throughout the years. www.cargolux.com | [email protected] | follow us

csr report 2020 ︱ 27 The following year, Cargolux took The 90’s marked a decade During this period, Cargolux In retrospect, the year 2020 was a big step forward and entered the of solid expansion. The airline’s continued to explore new ventures a reflection of Cargolux’s dedication jet age with the acquisition of global network grew significantly together with some Italian interests. and the team spirit that made a DC-8 freighter. The Loftleiðir as did the number of employees Cargolux Italia, a new cargo airline it famous throughout the industry. maintenance division that had been worldwide. Cargolux was steadily based in Milan-Malpensa, The drive and passion of employees maintaining the company’s aircraft emerging as a key player in the is inaugurated the same year. enabled the company to navigate was moved to Cargolux’s home industry and its capacity to deliver changing restrictions on a global scale base in Luxembourg and became service excellence was now widely As Cargolux continues to bolster to keep the supply chain moving. an integral part of the airline. recognized within the industry. its leading position worldwide, Even after 50 years, Cargolux A dedicated maintenance hangar To remain at the vanguard in 2013, the all-cargo carrier continues to deliver its mission with and head office complex was also of the industry, the airline decided will enter a new commercial pride and commitment, a work ethic inaugurated at ; to discontinue its use of the 747-200 cooperation with HNCA. This new forged by the forefathers that still lives a sure sign of the company’s model and concentrate on more partner will mark a significant turning on in the team worldwide today. sustainability. modern freighters. By the year 2000, point in the company’s strategy and Cargolux operate a single model fleet establish Cargolux as the leading The next huge leap forward, of 747-400 and to ensure state-of- provider of services to China. that would shape the airline’s image the-art training for its crew members, The following year, HNCA is officially forever, was the decision in 1977 the airline also welcomed the world’s welcomed as a new shareholder to purchase a 747-200 freighter. first 747-400F full-flight simulator. in Cargolux and the airline develops The jumbo jet offered a capacity a complementary hub in Zhengzhou, of approximately 100 tons compared Building on its achievements, the capital of the Henan province to the CL-44’s 34-tons. The industry Cargolux continued to seek new in the heart of China. The dual hub was skeptical about an all-cargo market opportunities and fine-tune strategy now forms the backbone carrier investing in such a huge its services to offer ever-more tailored of Cargolux’s operation in China aircraft, but the bet paid off and transport solutions to customers. and significantly contributes to the another one was ordered that same The all-cargo carrier continuously Europe-China Air Silk Road project. year, as the CL-44 were phased out. pushed boundaries to establish itself as a leader in the industry. In 2005, Throughout its history, Cargolux After a decade of expansion Cargolux and Boeing announced has continuously established itself and bold decisions, in the beginning that the Luxembourg-based carrier as a pioneer and trailblazer in the air of the 80’s, the airline faced severe would be the launch customer for cargo industry. This resilience headwinds. The upward spiraling of its next generation freighter, the is what enables the company to keep fuel prices and escalation of financing 747-8F, along with NCA. As a long- delivering its mission in troubled costs combined with a depressed standing customer for the aircraft times such as those we are currently global economy spelled difficult years manufacturer, Cargolux significantly experiencing. In half a century for the company, but the unwavering contributed to the design of the of existing, the Luxembourg-based spirit and determination persisted. freighter that remains to this day operator has come a long way from Despite the challenges, Cargolux the quietest and most fuel-efficient its humble beginnings. The drive managed to strengthen its commercial aircraft in its category. After lengthy and determination, bold decision activities. As well as enhancing delays on the project, Cargolux takes making, and undeterred ambition its stronghold in the Far East, delivery of the world’s first 747-8F are the reflection of a unique the carrier benefitted from a strong in October 2011 and becomes the spirit that lives today and enabled North American market that offered world’s first airline to fly this type of Cargolux to become the Global renewed business opportunities. aircraft. The aircraft is the first of 14 Cargo Carrier of Choice. that Cargolux will eventually acquire As business picked up, Cargolux and still operates to this day. decided to phase out its DC-8’s in the mid-80s and focus on jumbo To accommodate this new model, jets. In 1990, the airline placed an and ensure optimal maintenance order for 3 Boeing 747-400 freighters services, the airline also launched with an option for several more. the construction of a new The new generation aircraft Maintenance Center at its home presented many advantages base in Luxembourg; a project compared to its predecessor; that is completed in 2009. it was quieter, more fuel-efficient, and boasted a higher payload. In November 1993, Cargolux was the first carrier to operate the 747-400 freighter; a true reflection of the company’s pioneering spirit.

28︱csr report 2020 csr report 2020 ︱ 29 sustainability 03 approach journey our CSR journey 2020 As passenger operations ground at the height of the pandemic, community: engaging to a halt, cargo carriers such flying volumes of Personal & building Cargolux is committed to mitigating as Cargolux were required to fill Protective Equipment (PPE) to sustainable the impact of its operations on the the capacity gap in the market. from their production site in Asia The airline’s deep roots in Luxembourg environment and has taken numerous The high volumes and sustained to Europe. The company provided stem from its inception in 1970. development steps in this direction throughout demand throughout the year allowed a number of charter flights both Throughout its history, Cargolux GRI 102-11 the years. Since the airline signed the airline to optimize both its loads for the Luxembourg government has fostered strong ties with local the UN Global Compact in 2007, and routings leading to enhanced and other countries, supporting governments, communities, and formalizing its engagement to operational efficiency. The heavy the fight against COVID-19. industry organizations. Now, with 50 sustainable practices, the initiatives loads and long flights in uncongested In addition, the airline also made years of membership in Luxembourg’s and progress have been meticulously skies allowed Cargolux to reduce several donations both financial vibrant business community, documented. Looking back on this its fuel consumption and achieve and material, including PPE, commitment to promoting partnerships journey, it is clear that efforts have excellent results in terms of fuel to a number of organizations. at home & abroad is even stronger. been made in all corners of the efficiency. The airline also continued organization and CSR has become to monitor its fuel expenditure for deeply engrained in the company’s international flights in order to have Reducing carbon footprint digitalized: land & skies philosophy and values. a solid basis for offsetting calculations ahead of the implementation The “Cargolux 2025” strategy ensures Over the years, Cargolux has of CORSIA. that the company addresses the faced numerous challenges but its challenges of today and tomorrow commitment to sustainability has been One of the cornerstones of while preparing for evolutions within unwavering, and 2020 is a remarkable responsible and efficient business the industry. It allows Cargolux to example of this. The world faced continuity in the midst of a pandemic translate challenges into sustainable an unprecedented situation with was the establishment, early on, advantages and allows the airline a global pandemic affecting all areas of a crisis committee, led by the 2009 2020 to remain a leader in the industry. of our daily lives, causing CEO. This working group, comprised 0.521 0.482 The company’s CSR program,

us to change our work habits. of key people throughout the kg CO2 / FTK kg CO2 / FTK in place since 2008, continues The company had to re-think company, monitored the situation to engage stakeholders and to use its organization to preserve the health on a daily basis, gathering data their input to guide organizational and safety of employees throughout from the Ministry of Health, the WHO, momentum. Despite the highly the network while ensuring its core and local authorities, in order to competitive nature of the air cargo mission, transporting goods devise appropriate responses. industry and its volatile nature, by air. The airline was confronted As the situation unfolded worldwide, Cargolux has eagerly upheld it with continuously changing the company established both trigger commitment to Corporate Social restrictions and subjected to stringent thresholds and multiple contingency Responsibility. Dedication towards sanitary measures. Yet, despite plans to keep the operation moving customers, local communities, navigating these constraints, Cargolux while ensuring employee safety. employees, and shareholders are continued to consider its impact and The emergency preparedness the hallmark of Cargolux’s innovative make progress in the area of CSR. and swift action plans devised by approach to business, the industry, the company enabled it to navigate and leadership. True to its solid engagement, the more intense crisis periods while the company continued to work responding to customer demand. on projects aimed at ensuring economic, social, and environmental Cargolux’s exceptional sustainability. The digital response to the pandemic reflect transformation continued, and several the company’s commitment to new tools were implemented to sustainable operations and employee Ecovadis’ Gold Rating enhance processes throughout the welfare. The organization upheld organization. The company its commitment to customers without Driven by Cargolux’s solid also achieved the in-housing of compromising operational safety environmental program, its IT services, allowing for a better or its CSR engagements. in 2021Cargolux scored 68/100 overview of requirements and The challenges that arose in in the evaluation by Ecovadis. issues within the IT infrastructure. 2020 were unprecedented yet the Given the circumstances, the move company kept its commitment Ecovadis provides a solution for the was challenging but it allowed the to sound operations. Projects were monitoring of sustainability in global company to provide better support implemented to drive Cargolux’s supply chains. This methodology to employees, especially with 2025 Strategy and the digitalization is based on sustainable development a large part of the workforce working journey continued as foreseen. standards of the Global Reporting remotely. The implementation of a Initiative GRI, the United Nations solid cyber-security program also The airline also demonstrated strong Global Compact and ISO 26 000. allowed to minimize risks related social engagement throughout to breaching and ensure company the year. Cargolux maintained an air data remained secure while bridge between China and Europe employees worked from home. to transport vital supplies

32︱csr report 2020 csr report 2020 ︱ 33 stakeholders GRI 102-40 GRI 102-40

Cargolux’s sustainability approach is based on continuous dialogue with internal and external stakeholders with whom Cargolux interacts at various levels:

customers

employees financial institutions authorities and government

suppliers joint ventures shippers trade unions board of directors

shareholders sub-contractor communities insurance companies media

Cargolux included internal and external stakeholder consultation in the materiality analysis carried out to prepare this report. [1]

competition auditing bodies academia

[1] Cargolux included internal and external stakeholder consultation in the materiality analysis carried out in 2019 to prepare this report. aviation sector NGOs

34︱csr report 2020 csr report 2020 ︱ 35 shared values Cargolux is continuously working to maximize the value it creates for all stakeholders. To sharpen creation strategy the way the airline tackles sustainability, it conducted a materiality analysis. This analysis assessed the significance of the economic, social, and environmental impacts of Cargolux’s activities and their influence on stakeholders’ decisions. Top priorities – i.e. material topics – have been identified: [2]

health & safety emissions fuel efficiency network efficiency

waste management ethics emergency preparedness digital & physical assets

[2] to find more about the methodology, see the "About the Report" section page.

36︱csr report 2020 annual report 2020 ︱ 37 our value creation model

INPUT BUSINESS STRATEGY OUTPUT

THE GLOBAL CARGO CARRIER OF CHOICE

Ethical practices GRI 215 I GRI 412 I GRI 304

ensuring Talent attraction, development GRI 401 I GRI 404 a responsible & retention strong & inclusive balance sheet corporation Sustainable procurement GRI 204

Digitalization & asset security

unique global operation

S IN CE B VI LO O R G U Health & safety GRI 403 E IS N S T D IC innovation S Emergency preparedness

capabilities S

A & business continuity L

E developing

S

& sustainable Fuel & network efficiency GRI 302

M

A S operations R N Emissions GRI 305 K O I E T stakeholder T I A N R relationships G E Waste management GRI 306 P O

O Noise management GRI 413 UTBOUND L OGISTICS high performing organization Local community GRI 203 development sharing Ecosystem of GRI 203 value with responsible innovation & research communities use of resources Inspiration of GRI 203 future talents

Material topics

38︱csr report 2020 csr report 2020 ︱ 39 our sustainability 04 commitments ensuring a. ethics In addition to strengthening shipment GRI 103-1 I GRI 103-2 controls, Cargolux continued its broad GRI 205-1 I GRI 412-1 A leader in the field of air cargo, due diligence program and continued a responsible Cargolux is committed to paving vetting its business partners to ensure To ensure enhanced guidance and the way for ethical and sustainable adherence to ethical practices. method for all employees, a revised & inclusive business practices. Flying cargo The process was fine-tuned and and re-structured Code of Conduct around the world while adhering to adapted to individual suppliers based was issued internally over the Summer. corporation multiple different regulations can pose on pre-defined criteria. In addition The document is split into two distinct challenges but the company has to existing suppliers, each new branches; principles, that include GRI 103-1 I GRI 103-2 established a solid set of procedures business provider posing a medium- standards applicable to the whole and vetting processes to ensure to-high risk on-boarded by the company, and processes that are its core business is conducted company in 2020 was assessed tailored to individual departments. in a transparent and fair manner. against stringent norms to minimize Each cluster of principles is linked any risk to the company’s activities. to related SDGs, providing an overview After a decade in existence, of the company’s values and priorities in the Compliance department gained Going one step further in the terms of sustainability. The release solid maturity and developed strong company’s extensive Know of the new Code of Conduct was mechanisms to ensure the company Your Supplier (KYS) and Know followed by a training campaign and its employees are safeguarded Your Customer (KYC) approach, for all staff, combining webinars at all times. To better fulfill its mission Cargolux has launched a thorough and online modules to ensure and continue acting in an efficient customer vetting process. Each client a comprehensive approach manner, the department underwent will be evaluated against a set of and overarching understanding restructuring and was split into defined standards to ensure it upholds of the topic. different teams each with a primary the same values and principles focus area. There are now three key as the company in terms of ethical As a responsible actor in the functions: Compliance, Compliance and sustainable business. “We are Luxembourg business community, Communications, and Export Controls the first known cargo airline to assess Cargolux has signed the Mediation Compliance, complimented by a our customers in this way. We are Charter with the Mediation Center dedicated Data Protection Unit. aware that this is a bold step, in Luxembourg (“Centre de mediation but it truly reflects our commitment civile et commerciale”) on 19 October One of the segments that witnessed to principled, informed practices 2020. As a signatory of this charter, the most significant change in 2020 and our dedication to a sustainable the airline will consider the mediation is Export Controls. This dedicated business model throughout option in case of a conflict which may entity ensures all laws, regulations, the industry. Even after 50 years eventually lead to a court dispute and operational restrictions related in existence, Cargolux still managed in order to find a mutually acceptable to the export of goods are respected to establish itself as a pioneer in air solution between the concerned parties throughout Cargolux’s operation, cargo”, smiles Javier. through a negotiation process. In under a year the unit grew from 2 to 12 people and now counts round-the- Following work started the previous Operations assessed for clock coverage for shipment integrity; year, 2020 also saw the formalization risks related to corruption ensuring the entire network has access of the internal Compliance program, to in-house support for documentation developed in accordance with ISO screening and checking as required. 37001, Anti-bribery management Due 2020 2019 diligence This allows the Compliance team to systems. The international standard have swift interaction with the Sales was used as a benchmark to devise Area 1 10 7 department for enhanced collaboration internal policies and ensure adherence Area 2 21 15 and transparency. to them. The industry witnessed a very Area 3 12 7 dynamic year, and it was therefore Area 4 4 4 For 2020, the Compliance team crucial to ensure employees and HQ 20 5 estimates that the number partners remained vigilant despite Total 67 38 of shipments they checked unprecedented circumstances. is in the millions, with over 80% of them screened to comply with Area 1: The Americas, import requirements. “The importance Area 2: Europe and the Middle East, of such robust compliance controls Area 3: Asia & Pacific, grew significantly over the past year Area 4: Africa and it was vital for us to remain at the forefront of the industry. Our whole team was trained extensively on the subject to ensure suitable knowledge on the subject whether it is their direct field of expertise or not”, explains Javier Coto, Vice-President Compliance.

42︱csr report 2020 csr report 2020 ︱ 43 GRI 103-1 I GRI 103-2 GRI 103-3 I GRI 205-1 GRI 205-2 I GRI 205-3 GRI 412-1 I GRI 412-2 In this area... Cargolux does this… Evaluation & Compliance is structured to provide Ethics and compliance training adjustments outstanding service to the company targets specific groups, Impact & boundary Implemented throughout the world, • safeguard the teams, business and clients, and to further strengthen while on-demand webinars strong, simplified, comprehensive environment and company ethical supply chain activities. are an additional tool to ensure and easy-to-understand policies assets: Cargolux was an original Clear targets provide a solid base accessibility. Topics include and procedures provide tools member of the IATA working group for measuring direct and indirect anti-corruption and conflict that allow staff to: implementing shipment screening impacts, collecting statistics and of interest, respect for human rights, and vetting for compliance analyzing trends. The Compliance personal data protection, embargoes, • flag ethical concerns, with export control laws and Ethics team stays on the leading harassment in the workplace, potential human rights infractions edge of the industry. All elements understanding and preventing fraud, and potential business issues Formal commitments to Human Rights, of the Compliance and Ethics program corruption, and confidential reporting. anti-discrimination and harassment are reviewed and simplified regularly A consultation desk assists employees • identify and address challenges: allows Cargolux to guide its suppliers to ensure ease of use and thorough in the practical application of policies. strict guidelines force remote to look more closely at, and modify, understanding of main elements. locations (GSAs & GHAs) to comply their own practices. with anti-bribery rules and may The Cargolux focus remains on priority trigger a ‘snowball effect’ policies. The main areas include in the associated airports ethical supply chain mechanisms, compliance updates and training, and GDPR. Export Control is aided by the shipment integrity system, Management The main objective for this area GDPR: Cargolux sees GDPR which is built upon ethical supply approach & is to ensure that every staff member basically as health and safety chain principles. components and group that interacts with for data. It takes its responsibility Cargolux (e.g., suppliers, customers, for information disclosure, etc.) understands the basic integrity and data protection Compliance and ethics principles of compliance, export very seriously. The organization controls, and the rationale behind is committed to data protection, them that has been woven into transparency and ethical behavior the fabric of Cargolux. in this area. A GDPR hotline guarantees anonymity to all callers Cargolux is working toward being who have issues regarding GDPR fully compliant with the ISO 37001 regulations and/or adherence. anti-bribery certification. Streamlined, targeted, on-demand Compliance Grievance resolution follows & Ethics training ensures all actors the Cargolux standard practice are well-informed, practice personal of engaging all parties in meaningful data protection, understand embargo dialogue focused on positive resolution 67 due diligence 2 station visits* 2,548 compliance 0 incidents requirements, respect competition law, and outcomes. consultation desk of corruption identified prevent fraud, corruption, and ensure inquiries answered confidential reporting.

2,987 total 1,726 trained participation Cargolux personnel compliance training

* Station visits were limited due to COVID-19 travel restrictions.

44︱csr report 2020 csr report 2020 ︱ 45 GRI 102-8 I GRI 404-1 b. our people Talent management Due to sanitary restrictions, job fairs, school visits, and other field events GRI 404-3 GRI 103-1 I GRI 103-2 I GRI 405-1 With relatively stable workforce growth, were suspended, however, Cargolux Cargolux supports numerous jobs gained significant visibility thanks Our people As an all-cargo carrier working in industries, locally and abroad, to the media coverage of its role on a global scale, Cargolux requires that are directly related to its air freight during the pandemic. This was a wide range of highly skilled talents. activities such as freight forwarding, complemented by a solid presence The company therefore places trucking, storage facilities, on social media, allowing the company a particular focus on recruiting and airports. to stay in touch and present dedicated people to fit the dynamic on the job market. workplace. With its international Talent attraction & retention network, Cargolux offers a multi- In addition to its online presence, cultural and diverse environment while Despite the unprecedented situation, the airline also benefited from the fostering a unique company spirit over the recruitment process continued dedication of its very own employees. its 50 years of existence. Building on in 2020, albeit in a different manner. As Anne-Sophie Mangen, Manager its expertise and professionalism, Interviews and selection test were Recruitment, explains: “Our people the airline has also developed a good handled virtually, supported by a are our best ambassadors. They are 2,368 1,726 2,286 226 reputation as an employer both in solid IT infrastructure. This enabled proud of working for Cargolux and staff worldwide staff at the HQ staff on permanent staff on part-time contract Luxembourg and within the industry. the recruitment program to continue many of the candidates we meet have in Luxembourg contract as expected, in line with company heard positive feedback from our This exceptional commitment requirements. One of the challenges employees.” The recruitment team also and team spirit were highlighted faced by the team was the on- received a number of spontaneous in the difficult circumstances of 2020. boarding of new hires, especially calls from individuals offering help after New staff Employees worldwide worked hand as regards interactions with witnessing the high workload faced in hand to face the unprecedented co-workers. To counterbalance by the company: “People have been challenges and high workload the lack of on-site socializing, telling us how great it must be to be generated by the sanitary situation. the recruitment team encouraged part of such a success story”, The Cargolux workforce pulled new recruits to initiate discussions adds Anne-Sophie. together to devise solutions and pro-actively develop relations. and navigate the restrictions. The team embodied the commitment “You name it, we fly it!” and went one step further: “you name it, we fly it, in any circumstances”.

+5.1% +9.4% +9.3% +9.5% increase of staff total new hires new hires in Luxembourg new hires at stations throughout the network Women at Cargolux 2020 2019

Women worldwide 434 404 Employee development HQ 234 214 Line stations 193 183 Permanent contract (wwide) 420 392 Part-time (wwide) 64 59 Executive Mgmt role 3 3 Senior Mgmt position 0 1 Female pilots 20 16 BoD 4 4 Female staff 18% 18%

Training Appraisal Program on average, 15% of the staff received each employee enjoyed regular performance 53 hrs of training and career development in 2020 reviews

46︱csr report 2020 csr report 2020 ︱ 47 GRI 103-1 I GRI 103-2 GRI 401-1 I GRI 401-3 GRI 103-3 I GRI 401-3 Turnover In this area... Cargolux does this…

Impact & boundary Cargolux’s HR practices aim at The company participates in events fostering productive and forward- that give youngsters the chance to looking collaboration between gain personal impressions of daily generations. The airline puts strong work requirements in the air freight emphasis on supporting future industry, first-hand information about professionals and participates career opportunities, and allow them in a range of initiatives that include to explore job opportunities and school visits and internship programs. possible career paths. 4,3% 3,6% 6,0% 3,7% under 30 turnover rate worldwide men women 3,8% 30-50 5,6% over 50 Management Recruiting new staff that is frequently Different generations working side- approach & comprised of the next generation by-side changes the conversation. components provides an exciting view of what The older generation feels confident New hires is to come for Cargolux. The influx that it is leaving a legacy while of young professionals is a welcome the younger generation benefits from trend that brings dynamic energy the running start that comes with rapid and enthusiasm which are the knowledge transfer. hallmarks of the Cargolux culture. Established employees enthusiastically Grievance resolution follows mentor and guide new recruits; the Cargolux standard practice helping them build confidence of engaging all parties in meaningful in their ideas and providing an avenue dialogue focused on positive resolution for engaging colleagues in dialogue and outcomes. about how their ideas support the company’s goals and objectives. 9,4% 73,9% 26,1% 25,2% under 30 new hires worldwide men women 8,70% 30-50 Evaluation & Employee consultation follows suggestions and key influencers 3,40% over 50 adjustments a structured approach that allows in each area are selected to help engagement with an eye to lead the required behavior change. practicality. Communication to the impacted employee groups A great ‘litmus test’ for whether Parental leave (started in 2020) is followed up with interviews and the system is working, is the level collaborative problem-solving. of push-back from employees – A cost-benefit analysis, which which for the new building and includes safety considerations, other initiative was close to nil. is performed for leading ideas/

Parental leave (started in 2020) 2020 2019

Men 42 36 Women 14 8 42 14 men women

48︱csr report 2020 csr report 2020 ︱ 49 GRI 103-1 I GRI 103-2 Strongly committed to continuous GRI 103-1 I GRI 103-2 I GRI 103-3 skill enhancement, in 2020, GRI 404-2 I GRI 403-5 Talent development the training catalogue was not limited to mandatory trainings. Non-essential In this area... Cargolux does this… The Cargolux workforce comprises courses were maintained, allowing highly skilled, experienced employees to evolve and gain professionals who follow an new skills despite circumstances. extensive program of regulatory and These sessions were converted Impact & boundary Cargolux sees its future in its people. Cargolux’s commitment to career specialized training. The company and adapted to the virtual format to The aviation industry requires high development for all employees in also prides itself on offering a wide provide the same quality learning levels of expertise that come from the company’s global network is array of additional training from experience as a classroom training. a well-aligned training, development, unwavering. technical knowledge to soft-skills and regulatory compliance program. and language, allowing employees The digitalization of courses Cargolux Corporate Training has, Ground Operations Training includes to hone their skills and develop and expansion of online trainings at its core, a philosophy of continuous Compliance training in the classroom, professionally. The Corporate was already a core focus learning and development, online and via blended learning Training department is continuously for Corporate Training before with on-the-job training, teaching solutions. Webinars for Personal fine-tuning its course catalogue the sanitary crisis. Significant and learning as primary focus. Data, Embargoes, Harassment to cover both essential and investments were made into Cargolux acknowledges that this in the Workplace, Fraud, Corruption, supplementary training. high-end communication tools and is a pillar in retaining, attracting and Confidential Reporting are platforms to offer users an optimal and developing talent, which impacts available on demand. Technical When the pandemic hit, solutions learning environment. As Carole its success. Learning opportunities apprenticeships continue successfully, had to be found rapidly to ensure Milani, Manager Corporate Training go well beyond the mandatory following the EASA Part-66 B2 mandatory and regulatory training & Development, highlights: technical qualifications trainings. practical tasks and Part-66 B1 could be maintained. Although “The virtual classroom is and will In line with the philosophy of apprenticeship programs. As well, extensions were granted for certain remain the future of training continuous learning, employees classroom continuation training certifications, other traditionally in many areas. We are happy to have are encouraged to work towards improves troubleshooting skills and class-based trainings had to be explored this route early, it allowed relevant degrees or other professional knowledge of all technical staff, held on digital platforms either with us to be prepared and ready accreditation, and to develop essential including mechanics. e-learning modules or in a virtual from the onset of the pandemic.” soft skills. classroom format. For courses Regulatory Compliance Training: requiring hands-on sessions, Performance management and standardization enables the highest arrangements were made to ensure succession planning are the backbone level of training quality for the flight all sanitary measure were complied of organizational achievement. crews and third-party customers. with during the course. Success depends on a dedicated and Continuous investments ensure talented team. A structured succession that training devices are operating planning framework aligns internal to the latest standards and knowledge and skills to ongoing requirements mitigating all specific operational activity. work-related hazards.

Management Cargolux makes every effort to treat employees’ creative thinking and approach & all personnel equally. To this end, provides a channel for innovative ideas components the organization focuses on cross- to enhance the airline’s efficiency, pollination and collaboration to productivity and to improve the promote equality and improve gender performance and quality of day-to-day relations. work. Suggestions are evaluated by specialists in the relevant area of the Standardize and Sustain focuses organization; successful proposals on maintenance and engineering. are implemented, and the creative This program uses a systematic employees are rewarded. method for organizing and maintaining activities and equipment. Grievance resolution follows The emphasis is on minimizing wasted the Cargolux standard practice effort and costs, while integrating Lean of engaging all parties in meaning- Philosophy into day-to-day activities ful dialogue focused on positive and leadership practices. resolution and outcomes.

Brainwaves: A company-wide suggestion scheme encourages

Evaluation As well as quarterly reports to the complimented by data collection and reports executive, the team’s work on the HR evaluation. Focus is put on in-person adjustments HUB allows individuals and managers contact and conversation. Feedback, to pull the appropriate reports from evaluation results, and quantitative the system in real-time. HR’s process data are all used during the decision- of large-scale engagement is making process.

50︱csr report 2020 csr report 2020 ︱ 51 c. sustainable procurement Another side-effect of the pandemic GRI 102-9 I GRI 102-10 was the shift in the nature GRI 103-1 Cargolux strives to conduct of the orders placed. As restrictions responsible business, not only were implemented, and a number In this area... Cargolux does this… in the global supply chain but of employees moved to home office, also within the realms of its own there was a surge in demand procurement processes. for laptops while requests for paper, The company has a long- prints, and stationery declined. Impact & boundary Cargolux purchases a wide variety with sustainable business practices. standing commitment to anti- With the heightened demand of goods (e.g., fuel, equipment, This is especially important in such bribery awareness and has been for specific segments of purchasing, office supplies, etc.) and services a highly competitive field. implementing measures over the focus was on sourcing (e.g., legal, brokerage, accounting, the years to minimize exposure the required items to ensure GHA, GSA, security, OSSA, authority Generally, each department throughout the network. the company was equipped to face & airport services, cargo handling, etc.) throughout Cargolux is responsible Following the formalized risk the crisis. The team successfully from over 640 suppliers worldwide. for procuring its required goods/ assessment conducted in 2019, navigated the changing restrictions services in conjunction with a new e-Procurement tool, Zycus, worldwide while strictly adhering Sustainable procurement is a priority the procurement department using was selected and implemented over to the in-house purchasing policies and the Cargolux Procurement Policy a standard tender process. the past year with the aim of going to avoid shortages and fulfill guides all staff through a consistent The Cargolux Business Partner Vetting live in early 2021. The electronic business-critical requirements. and vetted process which considers External Questionnaire ensures platform will provide increased the environmental impact of goods that no matter who is contracted transparency for tenders, enhanced As an additional move towards more (e.g. investments, transportation, for services or goods, there is collaboration both internally and sustainable consumption, in 2020, storage, etc.). As well as protecting a consistent approach to vetting with suppliers, and eliminate the use Cargolux signed the Zero Single-Use and guiding the organization, providers. Potential suppliers of paper documents considerably. Plastic pledge. The initiative was it positively impacts suppliers are selected based on objective widely welcomed within the company and local communities connected criteria such as technical expertise, As part of its purchasing and measure were taken in this to Cargolux by causing them level of experience, quality of procedures, the airline considers direction, the most noticeable to consider their decisions regarding proposed staffing, relevant credentials, the environmental impact of its of which was the elimination important aspects of their business resources, geographical coverage, suppliers and endeavors to choose of plastic bottles. Due to sanitary model. In general, better and more and/or possession of necessary local partners where possible. requirements, the total removal transparent C&P processes have licenses (where applicable). This well-established pattern was of plastic has not yet been achieved. a positive impact within the company, Cargolux takes pride in working challenged in 2020, as PPE became However, the company has the communities and the industry. with suppliers of different sizes an essential resource for Cargolux, established a standard to uphold and ownership structures. It chooses and local production is in extremely its commitment: when plastic is used, Cargolux’s objective is to guarantee suppliers based on their ability limited supply. Overall, although it is recycled material. This applies the optimal balance between to provide high-quality, cost effective the proportion of local orders both to the headquarter premises, the quality of goods and/or services goods/services. decreased in terms of value, it did not as well as for the aircraft; all crew and cost effectiveness. significantly drop as regards catering from Luxembourg uses This fundamental principle ensures the number of orders placed. recycled plastic. Always intent that the airline can support on going one step further, its partners, and service providers, Cargolux has asked all catering companies throughout its network to strive and provide similar solutions.

GRI 103-3 I GRI 204-1 2020 2019

Number of vendors 610 691 Local (*) 343 371 Number of orders 2,946 3,999 local 2,372 3,251

*Local: Luxembourg and neighboring countries (France, Belgium and Germany)

52︱csr report 2020 csr report 2020 ︱ 53 GRI 103-2 I GRI 103-3 d. digitalization & asset An assessment was conducted, at any time of the day. The ambitious security and a roadmap established allowing move will also enable the company Management From order placement to fulfillment, Compliance staff liaise with all parts Cargolux to gain visibility on to have a complete overview approach & the whole Cargolux supply chain of the organization, but mainly station Digitalization and asset security the requirements for implementing over the issues encountered components is transparent. The company uses and regional managers, for everyday are central to Cargolux’s development a state-of-the-art security program. and to develop adequate solutions a system that streamlines procurement consultation. They regularly conduct strategy. The company is committed Internal resources were also allocated supported by a growing knowledge process tasks. This enables due diligence exercises and formal to ensuring its property and assets to the program to gain a full overview base fully documented centrally. compliance to be completed reviews, with key procurement are functioning optimally and are over the progress, to implement with little delay or lag time. departments (Fuel, Ground Handling, effectively protected against threats enhanced security measures, Always at the forefront of efficient Sales Dept for General Sales both physical and cyber-related. and to bring security awareness and swift digitalization, the IT team Cultivating and encouraging local Agents…). The compliance team As the digitalization journey continues, to employees. A robust corporate continued to work on a variety providers is an important element works with Internal Audit (investigations it is vital to continually evaluate risk cyber security infrastructure depends of projects throughout the year. in the process. The contracts and audits), and Finance (monitoring and devise solutions to keep on each and every one. Therefore, As Olivier Beaujean, Chief Information and procurement process provide financial activities). Three different the business running in a safe awareness campaigns and mock Officer, explains: “Cargolux is truly direction on how to assess targets sections deal with reporting & and productive manner. attacks were conducted to ensure committed to its digitalization program and impacts, while adjusting control, training & communications, the workforce is informed to recognize and in 2020 we were involved in over for the highest possible impact. and general compliance support In 2020, Cargolux achieved the final and address potential threats. 52 IT-related projects. Although the The validation program guarantees for the business. The formalized risk steps to gain full management pandemic was an additional hurdle in transparency in the selection process program, which includes an extensive of its IT systems and infrastructure, An additional element of the cyber implementing IT projects, the agility and provides a platform where skilled business partner vetting questionnaire, including the development security program was the roll-out and dedication of Cargolux’s workforce providers can easily be found. ensures that internal and external and maintenance of a full Azure of Windows 10 throughout the helped to mitigate any negative impact. The tender process includes receiving documentation communicates cloud environment. In addition company. As well as providing at least three bids for any specific standard processes and reinforced to being an ambitious step forward, a modern and integrated workplace With all the projects in the pipeline requirement and then conversations measures for identifying risk, ensuring the migration was handled during for employees, the new operating and the restrictions in place, with the supplier and process owner due diligence, and considering the company’s move to its new system enables the installation the IT team had to set clear priorities to refine their understanding the ethics-side of the SDGs. Headquarters in the midst of of appropriate modern security and adapt to established company of any boundaries or constraints. a lockdown due to the pandemic. defenses on each Cargolux-owned requirements. A list of the ten most All contracts must specify the goods/ Grievances are handled using device. To cater for Windows 10 important projects for Cargolux was services required, milestones, a standardized approach which Tight restrictions were introduced and its advanced Microsoft package, devised and the employees involved and the method and timing includes an anonymous hotline in Luxembourg and employees each employee had to be issued in those projects were present of payments. As an international where employees can ask questions, whose presence was not required a new computer. Delivering these new on site when needed to avoid any company, suitable segregation gain clarification, and register issues. on site moved to home office. computers while respecting all sanitary delay. With all these projects well of decision-making and duties The Cargolux IT department measures required a well-organized underway, the progress made between the department requiring was faced with the additional schedule. Each HQ-based employee by Cargolux IT is remarkable and the goods/services, the procurement challenge of delivering a stable was allocated a set time to go on-site the work will continue in 2021 to ensure process, and payment approval network to ensure staff could work and pick up their new device, an efficient and secure workspace is fundamental. remotely while managing the ongoing any subsequent issue was resolved for all employees. migration to the new Headquarters by the company’s service desk. with its external supplier. The team mitigated the risk linked to that Meanwhile, the service desk was dependency by reinforcing its network also in the process of being moved Evaluation & Simplification, optimization, Procurement trends are reviewed expertise and by creating a secondary fully in-house. A total of 13 persons adjustments alignment and standardization periodically to ensure the Cargolux emergency network independent from were recruited by Cargolux in 2020 of the expression of risk to ensure procurement policy reflects its main external supplier. The aim was to assist with the transition and clarity throughout the organization the current, and global, supply/ to guarantee the business continuity to ensure a smooth shift from the is an important area. demand landscape. Compliance of our 24/7 operations. previous external service provider. Risk assessment practices, Officers are involved in all aspects The aim was to have a fully functional including clarity of expression of risk, of assessment and improvement. To ensure minimal risk for the support service available around terms of reference, rating system, Examples include eliminating plastics company’s assets, an extensive cyber the clock at the beginning of 2021. and process steps, are available in the pallet packing area and security program was launched This will allow personnel throughout and aligned throughout members of the team have gone with an external service provider the network to have access to the organization. so far as to visit flower farms in at the beginning of 2020. tailored help from the IT team to assess adherence to guidelines Evaluations are done in conjunction and rules. with local staff and suppliers.

54︱csr report 2020 csr report 2020 ︱ 55 In this area... Cargolux does this… Paperless maintenance checks reduce thousands of pages of documents down to an electronic tablet. Impact & boundary Digital touches everything. Cargolux staff focus on projects Cargolux uses a vast amount that increase efficiency throughout Grievances and issues are handled of digitalized information to make operations. Ongoing process review in a standardized manner with decisions throughout the organization. and procedure streamlining allows end users contacting the end-user Ensuring the integrity of that data teams to consider the big picture service desk to register an issue. is of utmost importance. and how it connects tactical activities Each issue is tracked to completion, The Cargolux 2025 strategy, with strategic possibilities in the future. closed out within the system, endorsed in 2017, guides the and follow-on developments noted. organization in accommodating From virtual reality training and keeping abreast of digital for mechanics and pilots (in addition trends. The strategy has three to simulator training), to predictive Evaluation & At the heart of Cargolux’s Roadmap Each system provides structured pillars: Strategic Measures, Business maintenance programs and CRM adjustments for automation and digitalization, reports and efficiently evaluates Process Review, and a Digital sales solutions, digital touches is the focus on identifying opportunities associated processes and Roadmap. This Roadmap every corner of Cargolux. for further digitalization and procedures. Quarterly reports that is at the heart of ongoing updates Customer satisfaction is at the heart automation, as well as opportunities detail progress, issues, and suggested and the evolution of systems, of the Cargolux philosophy, to streamline processes. This focus solutions, are provided to the executive processes and procedures, across so client-facing platforms also have ensures continuous and high-quality so their input can be used during Cargolux. It also ensures that the enhanced interfaces. tools, systems and processes. the decision-making process. organization has physical control The ongoing focus on individual over its digital assets. project debriefs and lessons learned exercises, ensures that suggestions for improvement are captured Management Cargolux uses a ‘high-return’ strategy Paperless CMR consignment notes and codified to be used to create approach & to determine the focus of its digital (e-CMR) provide real-time access innovations for future projects. components transformation energy. Some of to shipment information, accelerate the projects that are netting huge administration, improve accuracy, returns include: reduce discrepancies and handling costs, and improve the control and The CV pharma Service Capabilities monitoring of shipments. Map indicates important pharma capabilities within the CV network. Revenue management and ERP This interactive map enables provide improved cost management. customers to swiftly and remotely match comprehensive services TMS (truck management system) to their needs (e.g.: CV pharma supports the logistics process and service [2-8°C/15-25°C/frozen], reduces waiting time and fuel burn. CV pharma active/passive solutions). The electronic Air Waybill (e-AWB) Throughout the pandemic, TEAMworks! This cross-divisional simplifies the air cargo process, Cargolux transported essential system saves time and effort reduces paper, administration supplies where they were while streamlining processes. time, and delays. It also provides most needed The system provides a single digital transparency regarding the view of information that predicts provenance and destination of every the schedule and shows the real- shipment. time status for all the steps of a turn-around from the aircraft’s arrival Electronic Flight Bags (EFBs) at the gate for loading/off-loading, provide pilots with ongoing fueling and take-off. This allows connections to flight and ground any issue to be mitigated quickly operations and a variety of data and and transparently, substantially information. reduces paper use, and improves communication and visibility for both Validaide CSR Global Logistics: internal and external stakeholders. This supplier qualification and risk assessment tool removes guesswork, OHS risk assessment loads manual effort, and paper from the information automatically into transport supply chain. Customers the IQSMS system. and Cargolux teams use one platform where data is compiled HR HUB The HR hub provides a automatically to access current, central location for HR related items real-time service capability such as job openings, an employee information for cargo origins, suggestion scheme, or a course transit, and destinations. catalog for upcoming trainings.

56︱csr report 2020 csr report 2020 ︱ 57 a. health & safety GRI 103-2 I GRI 403-6 was also established in the new developing HQ with a weekly presence to During the first lockdown, offer an additional screening point. sustainable the majority of office staff was Appointments must be taken ahead required to work from home while of time, but the service is available operations work patterns of those required to all employees, including those on site has to be adapted working from home. Towards GRI 103-1 I GRI 103-2 to respect sanitary measures. the middle of the year, the company GRI 403-6 PPE was distributed to all Cargolux also introduced the option of rapid employees and sanitizer made testing for staff to offer additional available throughout the premises. peace of mind while performing OHS carefully managed these stocks duties on site. to ensure availability for all workers 15,331 383 and the supplies were expertly For a few months over the summer, lost days for sickness lost days for accidents managed as no shortage of vital as the infection rates remained low, hygiene products occurred. Shifts and Luxembourg opened up again, were segregated into smaller groups employees were re-introduced Occupational Health & Safety while keeping all employees safe. to avoid non-essential contact, to on-site working. The return At this point, OHS dedicated one while physical handovers moved was based on a rotational system Occupational Health and Safety person full-time to crisis management to digital platforms to further reduce with each team split in two and (OHS) is a primary focus throughout in order to cover all health inter-personal contacts. alternating home office and Cargolux, and the team is intent and safety related matters and workplace on a weekly basis. on ensuring a healthy and safe work ensure best practices were upheld These restrictions coupled with Each one of the company’s environment. Strongly engaged in the workplace both in Luxembourg strong business activities proved premises, including the brand-new at all levels within the airline, and in the company’s outstations. to be a real learning curve for all HQ where the company moved the OHS department’s role those involved. As Luc Loschetter mid-pandemic, had to be assessed was even more crucial in 2020. The Luxembourg headquarters Head of Occupational Health, by OHS along with the company As the COVID-19 pandemic swept served as a central point for all Safety & Environment puts it: doctor to ensure the strict sanitary through the company’s network COVID-19 issues, gathering and “At the beginning we had no idea protocol could be adhered bringing unprecedented sanitary disseminating information, acquiring of the scope of this pandemic. As the to. Each space, including catering measures and restrictions, OHS and distributing PPE throughout situation developed, it became clear facilities, common areas, played a crucial role in assisting the network. The home base we had to re-think our entire and meeting rooms were arranged staff and ensuring business served as a consultancy hub for its procedures to keep the operation to follow the required measures. continuity. From Personal Protective international stations and meetings running while ensuring employees’ Equipment (PPE) distribution, were held twice daily to ensure health and safety. Our whole 2020 was largely dominated to workplace assessments and all concerns were addressed and workforce was impacted but they by the COVID-19 pandemic from related improvements, the team was appropriate action taken to preserve showed exceptional resilience and an Occupational Health and Safety on all fronts to keep infection risks employees’ welfare both on the strictly applied our recommendations perspective, but the team did at the lowest level for staff members. ground, in the air, and en-route to keep the business afloat. not lose sight of the company’s for traveling flight crew. Each individual effort reflected commitment to OHS. Although items The department was first made employees’ dedication and it made were prioritized to ensure proper aware of the outbreak by its The new requirements were nothing our job more manageable sanitary measure to prevent employees in Area 3 (Asia). short of challenging to implement. in the long-run”. the spread of the disease, The company’s first response As an international operator active other safety issues continued was to equip all flight crew worldwide, the company drew As an additional precaution, to be addressed throughout with appropriate PPE and raise on its previous experience of large- it was decided that an in-house the company. The team continued awareness of required sanitary scale epidemics in its network such testing facility would be set-up to assist managers in keeping protocols when traveling to Asia. as the SARS outbreak in South for employees. Once the decision their specific risks low and prevent Measures were immediately put Asia and Ebola in West Africa. was made, the OHS team set any work-related accidents and in place to ensure adequate stocks Recommendations from the World to work, and the center was opened incidents. The year was extremely of masks, disinfectant wipes, Health Organization, IATA, EASA, a week later; fully equipped and busy for the industry but as the and sanitizing gel. and the Luxembourg Ministry of staffed with 4 nurses. To cater experience proved, Cargolux’s Health were closely monitored, for shift workers and crewmembers, commitment to Health & Safety By the end of January, allowing the company to establish the facility is open from 5 am until is unwavering. as the virus spread worldwide, its own, more stringent sanitary midnight every day. A testing point concern grew within Cargolux protocol. The OHS department also and a crisis management committee introduced an extensive staff support was created on 1 February. process. Once an employee This unit, comprised of upper is diagnosed positive to the virus, management and key department the team gets in touch with him/her heads, monitored the situation to determine who they were and its evolution on a daily basis and in contact with, assess the risk posed discuss appropriate measures by this contact, and assist with to ensure business continuity potential quarantine measures.

58︱csr report 2020 csr report 2020 ︱ 59 GRI 103-1 I GRI 103-2 I GRI 403-1 GRI 103-3 I GRI 403-8 I GRI 403-9 GRI 403-2 I GRI 403-3 I GRI 403-4 GRI 403-5 I GRI 403-6 I GRI 403-7 Evaluation & The OHS team tracks and rates adjustments all types of injury, occupational In this area... Cargolux does this… diseases, lost days, absenteeism, and number of work-related fatalities. OHS provides information on workload stress, monitors and follows up with Impact & boundary OHS is a critical internal service teams and a primary focus within anyone who is absent from work provider. Worker health and well-being their activities. There is nothing more for more than 6 consecutive weeks. 100% of Luxembourg-based workers is influenced by a myriad of situations important than keeping Cargolux and covered by a H&S management and circumstances, so the OHS team associated staff safe and healthy, The Cargolux HQ in Luxembourg system certified by an external party. works fluidly with different parts which impacts the company, is certified ISO 45001 and these of the organization to ensure optimal the community, and the industry. guidelines are further applied conditions. The Cargolux Health By disseminating high-quality safety company-wide. and Safety team is vigilant thinking and practices beyond in its mission to improve the quality the borders of Cargolux installations, of activities that ensure a healthy the perception of issues and and safe work environment. challenges related to Health and Safety activities are changed, Occupational Health & Safety are while the value of life and a hazard-free significant pillars for all Cargolux work environment are emphasized. OHS in figures:

2020 2019 2018

Management The OHS Management System also prioritizes action according Number of incidents is fully detailed in the OHS manual to risk and fosters a pro-active approach & Internal incidents 30 42 36 components that is available for consultation attitude towards OHS. by all employees. It is fully aligned External incidents 19 18 15 with the ISO 45001 standard which Workers’ health is a primary focus; Total 49 60 51 is applied to all processes and explains in addition to its yearly influenza the scope of the department’s activities. vaccination campaign, OHS also Lost days OHS is committed to ensuring a safe implemented in-house COVID-19 Accidents 383 347 321 work environment and strives to engage testing, both anti-genic and PCR Sickness 15,331 14,682 14,722 all employees to this aim. A dedicated for its employees. They are also Consultation & Participation procedure regularly equipped with PPE has been defined internally recognizing to ensure the highest level Some of the complementary data that employees are represented by or protection in the workspace. required by GRI 403-9 is currently the Delegation on matters affecting not available, Cargolux is committed their Health & Safety and therefore OHS regularly communicates on to disclose it in the next CSR report. ensuring that Cargolux complies with its activities and campaigns include: the Luxembourgish law for consultation, which requires them to consult OHS posters (digital and hard copy), with employees on matters affecting working at height assessments, their OHS. vibrating tools practices, digitalized risk assessment (which provides Risks and potentially hazardous information and recommendations areas are analyzed and documented regarding road safety), and an according to a defined process. international vaccination program. All reported accidents and incidents To ensure staff and third-party are also investigated to identify contractors are following labor code shortcomings and mitigate any further regulations and best practices, risk. The company fosters a no-blame training and controls implementation culture, encouraging employees are also areas of focus. to flag areas of improvement. Cargolux has a solid Risk Assessment Grievance resolution follows procedure to ensure risks are reduced the Cargolux standard practice to an acceptable. This includes of engaging all parties in meaningful on-site assessments, identifying dialogue focused on positive resolution potential risks areas and implementing and outcomes. improvements. The OHS department

60︱csr report 2020 csr report 2020 ︱ 61 Operational Safety Human Factors: Pilot Peer Support Program GRI 103-1 I GRI 103-2 I GRI 103-3 GRI 403-2 GRI 103-1 I GRI 103-2 I GRI 103-3 GRI 403-3 In this area... Cargolux does this… In this area... Cargolux does this…

Impact & boundary The airline industry is filled available can be accessed during with complex objects, machines, analysis. Having a system that can Impact & boundary Cargolux’s Pilot Peer Support Program, it guarantees extensive, confidential, technology, processes, and systems. process big data and produce that considers the individual, assistance to help pilots overcome Operational Safety is a collaboration meaningful information, is a model for the industry. Offered the challenges of a serious incident between many teams throughout allows Cargolux to keep risks in close cooperation with the Mayday and/or other issues impacting a pilot’s the company. Due to its control under control by using data-driven Foundation and Cargolux’s Human wellbeing and/or mental health. mechanisms, it is considered a high- decision-making. This improves Factors manager Gunnar Steinhardt, risk, ultra-safe industry. Identifying accuracy, and provides objective, risks, and barriers in order to mitigate valid information. It also reduces silos them is extremely important in this and increases understanding field. Operational Safety supports of operational problems and/or Management The peer-to-peer support (February 2021), holds empathy the company by monitoring all issues. A well-functioning system approach & is highly appreciated within and strict confidence as central. available data to keep their specific means that incidents and disruptions components the pilot community. Pilots in need All volunteers in the program sign risk low. Digitized operational safety during aircraft operations are kept may request assistance via a confidentiality agreement and data provides big data analytics that at low level and reduces the potential the Mayday Foundation either are trained to respect, understand, covers every aspect of operational for accidents. from a peer within the Cargolux and protect the caller’s confidentiality. safety, ensuring that most information volunteer group, or from others If necessary and requested, in the Mayday Foundation pilot peer a professional referral is coordinated community. Cargolux’s Human Factors by the Mayday Foundation. Manager, Gunnar Steinhardt, Management Using the guidance material understand whether the processes MHP (Mental Health Professional), Grievance resolution, which constitutes approach & issued by ICAO and the rules within the aviation field of the is also available to provide assistance. one of the program’s cornerstones, components and regulations published organization work as intended The support system is designed, is also of utmost importance. by the European Commission, and where they need adjustment implemented, and monitored by the Should the caller be dissatisfied Cargolux has set up a dedicated or adaptation. Incidents and lapses Cargolux Advisory Group comprised with the assigned peer, that person Aviation Safety Department that are investigated to ensure causes of colleagues from the group of pilot can provide the caller with alternatives supervises the Safety Management are identified in order to allow representatives, the Chief Pilot, and the such as switching to a different peer System. The System uses a variety recommendations for improvement Human Factors Manager. Peer-to-peer or contacting the Clinical Director of data sources and tools to to be issued. volunteer pilot counsellors call upon of the Mayday Foundation. In its aim their years of professional experience to assist pilots in need of support, during counselling calls. This shared the Mayday Foundation has access background allows them to fully to a wide range of resources and Evaluation & Data is consolidated from a multitude when presenting findings and understand, the concerns and impacts channels. If a grievance is not adjustments of systems and applications recommendations to management. of the caller’s issue. Volunteers resolved, the individual has the option to provide easy-to-use information The Safety Management System are trained and supported by the to send a complaint to any of the that streamlines flight operation provides a conduit to the operational independent Mayday Foundation. following: the Cargolux PSP Advisory processes for Cargolux and third team where standard systems Group, Human Factors Manager, parties. Analytical tools allow allow consistency of processes This highly confidential program, EVP Flight Operations, VP Flight Cargolux to gain intelligence and grievance resolution across which was activated close to 2 Operations, Chief Pilot’s Office or that Operational Safety uses the organization. years before being required by the HR, where the complaint is handled mandatory EASA regulation discretely and appropriately.

Evaluation & All electronic communication is completely independent from adjustments and records are securely stored Cargolux. No data or information within encrypted systems and is shared with Cargolux unless are stored and destroyed according explicit permission has been to the Data Protection Act. Personal granted. General, de-identified data is bound by confidentiality high-level data is provided and restricted to the CISM (Critical to the PSP Advisory Group Incident and Stress Management) and appropriate management Team of the Mayday Foundation bodies to ensure appropriate for the duration of the support oversight and action. provided. The Mayday Foundation

62︱csr report 2020 csr report 2020 ︱ 63 b. emergency testing options. These sources of workload throughout the year, In this area... Cargolux does this… preparedness & information were complemented all scheduled checks were performed by a COVID-19 mailbox to address as expected in 2020 which is a huge business continuity individual concerns. achievement that the team can be proud of.” Impact & boundary As well as protecting staff, The business continuity Cargolux’s first priority was to preserve customers, suppliers and emergency preparedness The emergency and business employees’ health and minimize risks Cargolux offers its employees free of and communities throughout plans cover, but are not limited to; continuity processes established of infection in the workplace both on charge COVID-19 testing on a weekly the world, the business continuity natural disasters (such as tornadoes, by Cargolux are based on extensive the ground and in the air. The strategic basis. This initiative, coupled with and emergency preparedness floods, blizzards, earthquakes, experience and decades of analysis overview provided by the BCC allowed the company’s solid track & trace plan ensures the continued operation and fires), accidents, sabotage, of both the workplace and operations the company to divide employees procedure, allowed contact cases of Cargolux. Always intent power and energy disruptions, worldwide. Over its 50 years into categories and devise measures to be easily identified and isolated on being a good corporate citizen, communications, transportation, of existence, the company adapted to the different fields of work. in order to curb the transmission the plan takes into consideration safety and service sector failure, has strived to keep its personnel As a primary precaution, all employees risk. Infection and transmission rates local requirements (such as health environmental disasters safe while ensuring critical services were issued surgical masks and worldwide were also assessed and emergency response regulation) (such as pollution and hazardous are delivered. In 2020, however, sanitizer, and measures were adapted to anticipate potential risk areas. and adheres to the highest global materials spills), cyber-attacks the emergence of a global pandemic as the situation unfolded. Office Once the company-established trigger standards. Given the high-risk and hacker activity. was an unprecedented development workers whose presence on site was points were reached, measures classification of the air transport for Cargolux. Thankfully, management not essential were required to work were introduced for both ground staff and logistics industry, Cargolux and the teams reacted swiftly from home while those on the frontline in the area and travelling flight crew. works to ensure it meets and even and devised solutions to ensure were divided into split shifts to further Numerous scenarios were developed exceeds required standards. the employees’ welfare was preserved reduce transmission risks and remote by the BCC to ensure back-up plans The team shares its knowledge while keeping the business afloat. handovers were introduced to further were available as required on regularly with other industry groups segregate teams. an operational basis. and associations. As of early March, when the COVID-19 pandemic started progressing, In order to keep the flight crews safe Business Continuity is a pillar Cargolux quickly established and avoid exposure to contamination, of the company’s sustainability a Business Continuity Management pilots were issued with protective and the unforeseen circumstances Management Key influencers are actively engaged measures in place for any potential (BCC) Group led by the CEO & equipment since the outbreak of the of 2020 have allowed the breadth Approach & in emergency preparedness occurrence. Each person involved President, to monitor the situation virus in China. The destinations were and depth of the skills available within components and business continuity discussions. in the plan is apprised of their worldwide. The working group closely monitored and, layovers were Cargolux, to bear on this most unique The Cargolux plan is incorporated specific responsibilities and comprised key operational and suspended, or the hotel location and challenging of environments. into all parts of the organization. duties related to continuity and strategic management personnel, changed to a different area to keep The determination of the teams Integration points and overlaps preparedness. For example, each with unique requirements and risks as low as possible. To ensure and management’s swift reactions are clearly defined through the team provides business challenges related to their area continued network service, technical have allowed Cargolux to face a high assessment exercises that pinpoint continuity checklists for staff of expertise. Initially, these were stops were introduced for destinations workload while navigating stringent strengths. Defined areas of focus and suppliers. analyzed on an hourly basis to with layover bans. sanitary measures. This unforeseen and/or improvement ensure there ensure all aspects were covered. situation will enable the airline are no gaps. Scenario planning, Grievance resolution follows This collaborative approach allowed The minimal workforce requirements to embed the lessons learnt from redundancy in systems and the Cargolux standard practice the company to gain a holistic view were analyzed, and this indicator was this experience into its strategy processes, integrated reviews, of engaging all parties in meaningful of the global situation and make used to define the on-site presence. to future-proof the company. and training, all combine to ensure dialogue focused on positive data driven decisions both to protect Briefings and handovers moved to that every person associated resolution and outcomes. employees and to navigate restrictions digital formats and a one-hour buffer with Cargolux understands within the network. was introduced to allow shift changes and is knowledgeable about the without interaction between groups. overarching plan and mitigation In order to keep employees updated As Onno Pietersma, Executive Vice- on a regular basis, a solid internal President Maintenance & Engineering, communication campaign explains: “The primary concern for was established. Staff were kept management was to keep our people Evaluation & As well as engaging team members Reports are provided informed about changes in sanitary safe. We introduced a rotation system adjustments throughout the organization to the Executive Committee, restrictions and company-wide to minimize interactions and re-thought in the conversation of preparedness, but more than standard reports, measures through emails while our work pattern to allow for increased the emergency response and the Emergency Preparedness a special COVID-19 newsletter distance when contacts cannot be business continuity exercises include and Business Continuity team was introduced to provide avoided. Clear procedures were reviewing global best practices, understands that the plan is only insight into the operational devised on the line throughout the trends, and the evolution in this as good as the knowledge situation and business updates. network allocating a clear sequence important area. The highest standards and skill of people associated A dedicated intranet page was during turnovers to ensure different are applied in this critical area. with it. Knowledge-sharing and created to gather all necessary teams did not overlap. Despite these meaningful exchange of new ideas information for employees such profound changes to their working and concepts is a top priority. as company-devised measures habits, the teams were determined and recommendations, track to ensure work was done in a safe and and trace procedures, and timely manner. In addition to the high

64︱csr report 2020 csr report 2020 ︱ 65 c. fuel & network efficiency In addition to this tool, a fuel Network efficiency GRI 103-1 I GRI 103-2 I GRI 103-3 efficiency coaching program Cargolux operates on a worldwide GRI 103-1 I GRI 103-2 will be introduced for line pilots. network spanning over 70 destinations* GRI 302-4 I GRI 305-5 The aim is to promote open, with two main hubs in Luxembourg and In this area... Cargolux does this… transparent discussion between Zhengzhou. As an all-cargo carrier, 2020 was an extraordinary year flight crews and trainers to raise Cargolux has the advantage of being for Cargolux in terms of fuel awareness about fuel-efficient able to react flexibly to customer efficiency with excellent results techniques and procedures while requirements by adjusting the schedule Impact & boundary The Fuel Efficiency Round Table, programs to reduce consumption recorded. The COVID-19 pandemic in flight. Sustainability topics and at short notice. The extensive network ongoing since 2016, has identified and has gone from a 3- to a 5-year heavily affected international travel, best practices will also be integrated focuses on commercial gateways most areas of potential savings. fuel management plan with the most drastically reducing the amount in the training programs to ensure and is complemented by interline Cargolux uses 15 different fuel-saving effective initiatives. of traffic in the skies globally. a thorough understanding of fuel- agreements and extensive Road This situation yielded unforeseen efficient principles through all phases Feeder Services to provide door-to- advantages for Cargolux; benefitting of flight. door transport solutions. This also from optimized levels, and more allows the airline to optimize loads and Management Cargolux adheres to several Core Engine Compressor Wash direct routings. The Maintenance & Engineering keep unused capacity to a minimum approach & programs that are designed to process (for GENX-2B, CF6-80C2B5F division have made progress on its international flights. Routings and components achieve substantial reductions in CO2 and selected RB211-524H2-T engines These positive outcomes as regards the calendar-based frequencies are continuously evaluated emissions, save fuel, improve safety, with low N3 speed margin). were however balanced by other engine washing program. and adapted in line with business and/or decrease congestion. considerations that hindered The cleaning procedure removes requirements. As a result, resources Many of these programs also efficiency efforts. One of the biggest dirt and grit that accumulates are optimized, and the impact of CDO (Continuous Descent have added community benefits areas of potential fuel savings is in the engines, especially over the company’s operations is limited. Operations) & CDAs (Continuous such as noise reduction. the reduction of APU usage when the winter months thus reducing Descent Approach) create efficient on the ground. For health reasons internal engine temperature and In 2020, the air cargo industry descents. Performance Based Grievance resolution follows (COVID), however, crews are now subsequent fuel burn. The procedure experienced sustained demand Navigation (PBN) uses generic the Cargolux standard practice frequently using the APU to ensure which was previously done on an ad while the travel restrictions navigation requirements that reduce of engaging all parties in meaningful constant airflow on the flight deck hoc basis will now be integrated into imposed throughout the network the need to maintain sensor-specific dialogue focused on positive resolution and the upper deck. Another area regular maintenance checks generated considerable challenges. measures for routes and procedures. and outcomes. that suffered a slight setback in 2020 to ensure optimal efficiency at all Nevertheless, Cargolux strived is the Flight Crew Discretionary Fuel times. The required hardware to to find the best solutions to continue upload. The request for additional implement this scheduled washing delivering vital supplies where they fuel grew slightly over the year, was installed in 2020. were needed. Evaluation & Cargolux worked closely with ANA and potential for significant fuel savings as a tendency that could be linked to adjustments several other airlines Air Navigation well as substantial reduction in CO2 the general uncertainty about rapidly Since the launch of its Fuel Efficiency *This refers to Cargolux’s regular Service Provider (ANSP) to develop emissions. A CDO arrival can log fuel changing restrictions worldwide. program in 2016, Cargolux has made scheduled network. The network CDO arrivals for Luxembourg. savings of approximately 250 kg per significant progress in this field. was adapted to market demand A number of waypoints were created flight for a B747, as the engines stay To help crewmembers make better, A total of 15 initiatives were during the sanitary crisis. that allow pilots to efficiently plan the at near-idle thrust during the process. data driven decisions about extra measured over 3 years and the most descent. CDOs and CDAs (Continuous The lack of thrust during descent also fuel, a Fuel Briefing Dashboard (FBD) effective ones were developed into Descent Operations and Approach) means a quieter arrival; reducing noise is in the final process of development a 5-year roadmap. The airline methodologies are a huge step- for surrounding communities. and will soon be made available has now reached a year on year change in the industry and represent to crews. This platform gathers improvement plateau in terms information on historical data for of efficiency. However, true to its a particular city pair over the past commitment to sustainability, 60 days to provide a statistical the company continues to explore overview of the fuel consumption new areas of potential improvement. for that city pair.

Cargolux and Cargolux-Italia

2020 2019

Savings from fuel saving initiatives (tonnes) 6,005 7,230

CO2 emissions saved (tonnes) 18,916 22,774

66︱csr report 2020 csr report 2020 ︱ 67 d. emissions Following years of preparation, Emissions Road Feeder Services the company is fully ready GRI 103-1 I GRI 103-2 for the implementation of the Carbon GRI 103-2 I GRI 103-3 GRI 305-4 I GRI 305-2 Offsetting and Reduction Scheme for International Aviation (CORSIA). In 2020, the Road Feeder Services Sustainability lies at the heart The scheme foresees mandatory department experienced an extremely of Cargolux’s philosophy and the offsetting for civil aviation flights busy year. The main focus was to keep company is committed to making as of 2024/2025 but the initial data the operation running while navigating a difference and promoting sound gathering was already launched constraints such as travel restrictions practices within the industry. With in 2019. This includes monitoring and border closures. The high volumes

rising concern about CO2 emissions the fuel required for international experienced throughout the year, and their impact on climate change, flights which will then serve particularly at the company’s home the cargo carrier is intent on as a basis to determine offsetting base, posed numerous challenges. mitigating the effect of its activities requirements. Cargolux has also The team strived to find solutions and is taking numerous steps to do started collecting this information and keep the goods flowing through so. The focus on heavy loads and internally, monitoring and reporting the network despite the strenuous long-haul routes coupled with a fleet on the figures to ensure full situation. of efficient 747 freighters enable preparedness ahead of the CORSIA Cargolux to have one of the lowest implementation. Nevertheless, the Trucking carbon footprints in the industry. Management System (TMS) project In addition to the mandatory offsetting continued to make progress 2020 was a particularly good year expected from CORSIA, the airline throughout the year. In the initial for the airline that registered its best has made another big step to reduce phase, the tool was used for aircraft carbon footprint on record, its carbon footprint. At the end of 2020, imports into the Luxembourg hub and down 3% from the previous year. Management approved the voluntary the aim is to expand the application The average footprint was offsetting charter sectors performed to export trucks within the network. established at 0.482 / FTK for 2020, by the company in 2021. The TMS has yielded significant down from 0.497 kg / FTK in 2019. This decision demonstrates benefits since its introduction in 2017; The result, achieved in a year of the corporate engagement towards the load factor increased 21.7% by high fleet utilization, reflects the defining broader environmental targets. in 2020 compared to 2016 leading legwork done within Cargolux to truly to a reduction of 6,679 trucks. integrate sustainable principles Cargolux’s suppliers’ trucking fleet are in its operations both in the air and gradually being upgraded to the latest on the ground. standards. The remaining EURO 4 trucks from 2019 have been replaced by EURO 6 trucks in 2020 and the 2020 2019 VARIATION remaining EURO 5 trucks are foreseen to be upgraded during 2021.

CO2 efficiency / FTK 0.482 0.497 -3% Lead-free (ltrs) 6,125 6,639 -7.74% Diesel (ltrs) 17,674 20,503 -13.8% Diesel / industrial machines (ltrs) 56,469 65,805 -14.19% Variation % 2019/2020

+16% +18% +19% +1.6% trucks tonnes carried mio km load factor (kg)

68︱csr report 2020 csr report 2020 ︱ 69 the Greenhouse GRI 103-1 I GRI 103-2 I GRI 103-3 Gas Protocol In this area... Cargolux does this… defines three scopes Impact & boundary This area is quite advanced The trucking management system of emissions in Cargolux, so the team focuses and e-booking paperless processes on optimizing environmental all contribute to reducing waste and GRI 305-1 I GRI 305-2 management program activities. energy use. Portable Electronic Flight More people within Cargolux Bags are just one example of the focus understand the importance on reducing unnecessary aircraft of the measures being taken, weight, which results in fuel savings. but also the bottom-line impacts. CO2 CH4 N2O HFCS PCFS SF6

Management Cargolux adheres to the EU Trading their areas, and opportunities approach & Systems (EU ETS) and the Carbon that might impact the environmental components Offsetting and Reduction Scheme management system (EMS) for International Aviation (CORSIA) supply chain. SCOPE 1 SCOPE 2 SCOPE 3 from ICAO. It follows the 2018 process for monitoring emissions. In addition to ongoing and new direct indirect indirect The organization has defined near- projects, Geraldine Guebel, and long-term goals that follow Manager Environmental Aircraft and Company facilities, All other emissions IATA’s targets for airlines to reduce Management, takes time to answer

company vehicles purchased electricity, steam, attributable to Cargolux’s activities CO2 emissions to achieve carbon- queries and concerns from staff and heating & cooling for own use excluding those of the company. neutral growth. external parties in a timely manner.

The airline is certified Grievance resolution follows in the ISO 14001:2015 Environmental the Cargolux standard practice Management System Standard; of engaging all parties in meaningful a voluntary set of standards dialogue focused on positive for effective environmental resolution and outcomes. management. It includes identifying key stakeholders and determining their requirements, risks for

Evaluation & Cargolux follows the European CO2 emissions reduction & control adjustments requirement for a blended reporting are important elements associated solution with elements from with a carbon-neutral company. each regulation (listed above). Cargolux complies with the European Documentation and reporting Union’s Emissions Trading System templates designed to fulfill (EU ETS) reporting requirements and

requirements associated continues to monitor and report CO2 with the regulations support emissions. the methodology and emission calculation. Cargolux follows Communication programs provide and meets industry targets focused information regarding environmental on carbon neutral operations. successes in emissions control, SCOPE 1 SCOPE 2 SCOPE 3 The organization passed its last fuel management, digitalized cargo ISO 14001 audit with an excellent management and logistics systems. The Cargolux Group shows Cargolux offices and facilities Category that covers all other ‘no findings’.

exemplary greenhouse gas recorded CO2 emission indirect emissions attributable emissions management for its of 2,524 tonnes for fuel and gas to Cargolux’s activities excluding

fleet. In 2020, the overall CO2 consumption during 2020. those of the company. efficiency reached 0.482/FTK for Use of electricity emitted

the combined CV & ICV fleets. no CO2. as it comes from renewable sources.

70︱csr report 2020 csr report 2020 ︱ 71 Operations e. waste management management. The catering facilities were set up to support a plastic-free GRI 103-1 I GRI 103-2 I GRI 306-3 organization, and the office space was organized around central Waste management is a core waste collection points and communal component of sustainable work printing corners. This streamlined environments and one that Cargolux approach reduces the number is strongly committed to. Waste of plastic bags required for reduction and responsible refuse individual bins and the paper and elimination are integrated into the ink requirements for multiple small company’s strategy with a focus printers.” The sanitary restrictions on paperless operations and lean and strict hygiene rules derived from processes. Although digitalization the pandemic somewhat hindered 30 14:21 140,584 8,934 and awareness campaigns have the implementation of the ZSUP number of aircraft average daily a/c total block hours million tonne-km flown been instrumental in cutting down pledge. Due to these requirements, utilisation (including ACMI) waste, the company is always Cargolux was not in a position looking for additional areas to completely remove single-use of improvement. plastics but the project is on-going and the companyhas already adapted In 2020, Cargolux signed the IMS its premises to support the initiative. Luxembourg’s Zero Single-Use plastic pledge, a formal commitment to Additional initiatives are eliminate single-use plastic within in the pipeline to further Cargolux’s the company. This decision was taken commitment to responsible as the company prepared to move waste disposal. A project to its new HQ in Spring, a building for the construction of a water that was designed with sustainability treatment station next to the in mind. As Alexander Riemann, Maintenance Center is underway 236,034 1,107,071 68.7% Facility Management, Head of and a different oil absorbent product product tonnage tonnes sold (including C8) overall load factor Building Projects explains: is being assessed to reduce the (excl. CV classic) “The move to our new headquarters amount of discarded absorbent. was the perfect opportunity to re-think our approach to waste

Spillage

0 accidental spillage 2 spills reported in CMC / hangar by M&E on P7

The Superdreckskëscht fir Betriber is Luxembourgish environmental label, awarded annually, that recognizes companies’ commitment and efforts to promote sound waste management.

Cargolux is signatory of the IMSLuxembourg’s Zero Single-Use plastic pledge.

72︱csr report 2020 csr report 2020 ︱ 73 GRI 103-1 I GRI 103-2 I GRI 103-3 f. noise management In this area... Cargolux does this… GRI 103-1 I GRI 103-2 GRI 103-3 I GRI 413-2

Cargolux operates the world’s Impact & boundary Like all businesses, Cargolux developments and innovations quietest 747 freighter aircraft. generates a certain amount that could improve their handling The advanced engine technology and of standard waste products such practices and further waste avoidance wing design of the -8F reduces the as paper and plastic, but the aviation programs. With dozens of hazardous already low 85db take-off noise foot- industry also uses a number substances from kerosene to cement/ print of the -400F by another 30%. of products which are considered concrete used in the construction of toxic. Added to this, the company the new building, Facility Management Noise abatement performs on-site C-checks is the central point of contact for all that produce different categories organizational requirements. Tailored procedures to further reduce of waste and require specific reporting Cargolux is committed to excellent noise: flaps management, idle procedures. Activities handled recycling, reusing, and waste reverse thrust, 3-engine taxi-in. by the Facility Management team management programs. The airline’s include contractor control for the focus is to protect against local removal and disposal of hazardous ground, air and water pollution, substances (e.g., waste removal and to ensure the health and well- process validation, adherence being of staff, communities, In this area... Cargolux does this… to regulations and certifications). and stakeholders throughout This team also tracks on-going the supply chain.

Impact & boundary Cargolux’s noise protection program ensures minimal noise disturbance Management Cargolux’s commitment More stringent waste avoidance and to the surrounding area on approach approach & to environmental awareness reduction measures are continuously and thus mitigates the negative effects components is ongoing. Lean and agile iterated and implemented throughout of the operation on the neighboring processes are at the heart the organization not just to reduce communities of its strategy. The company’s waste but to boost efficiency. waste management program covers Avoidance measures such the headquarters in Luxembourg, as digitalization of processes Management APU off, Idle Reverse Thrust, Grievance resolution follows the maintenance center, and rented and procedures (e.g., Electronic approach & Three Engine Taxi, and Constant the Cargolux standard practice offices at other locations. Flight Bags and crew iPads, removal components Descent Approach; all make of engaging all parties in meaningful The ’Superdreckskëscht fir Betriber‘, of single-use plastics, replacing a difference for the communities dialogue focused on positive resolution a local environmental label is incandescent bulbs with LED lights, around the Luxembourg hub. and outcomes. renewed each year (via an audit) and extending recycling schemes) Additional noise abatement measures and recognizes the organization’s yield clear reductions in waste can be seen in the CDO program. exemplary waste management volumes. LED also replace traditional practices in waste avoidance, bulbs on the aircraft’s vertical safe and environmentally friendly fin and wing illumination. waste storage, selective collection, Evaluation & Following a similar protocol transparent waste recycling Cargolux has a strict no-printing policy adjustments to the CDO(F) (Fuel), CDO (N) and disposal system. Cargolux for operations manuals thus reducing (Noise) uses different parameters has an ambitious, organization- the amount of paper required. to ensure minimum noise disturbance wide program to reduce paper to the surrounding area on approach. consumption and waste. It has The grievance process is built upon worked towards eradicating paper well-defined, stables processes from all divisions. Decision-making and reinforces good behavior is effectively executed by an on-site and Cargolux’s drive to be a good presence in each building. corporate citizen.

Evaluation & Not only does ongoing review waste. By continuously reviewing adjustments and iteration of positive environmental data and using the results to search options reduce waste, it helps for better solutions, Cargolux staff eliminate dependency on paper and are able to improve and adjust as other heavy processes that cause new solutions come on the market.

74︱csr report 2020 csr report 2020 ︱ 75 sharing values To achieve a healthy future society, a. local community the community and individuals development must work together. Cargolux cares with communities about team spirit and, whenever GRI 103-1 possible, supports its employees Cargolux is committed to supporting to build ties to their business and community events and initiatives social community. The organization that contribute to a better, kinder, encourages its team to partner with and healthier environment for all. associations that focus on improving A strong believer in team spirit, physical, mental and/or emotional the organization strives to further well-being. projects in line with this philosophy.

Cargolux recognizes the value As an international operator based of supporting local and global in Luxembourg, Cargolux backs community events that work to projects both at its home base and create a healthier, kinder and abroad. These initiatives encompass better future for all. Not only does a wide range of items such as sports, the organization provide ongoing culture, or the environment to name support and sponsorship for many a few. Employees are also initiatives locally and abroad, most encouraged to get involved and are spearheaded by Cargolux staff approach the company with ideas who are personally involved. and sponsorship proposals that could fall under this scope.

Creating new bonds

In 2020, many charity events and sponsorship programs were adversely affected by the pandemic but Cargolux’s commitment stayed strong. In addition to supporting its traditional causes, the airline took a strong stance in the fight against the virus through financial contribution to research projects as well as material donations, such as PPE, to various organizations.

The particular circumstances of this year also saw the strong engagement of Cargolux employees. Proceeds from a company-organized garage sale were donated to several charities and staff also took the opportunity of donating the monetary equivalent of their year-end gift to charity. During the year-end period, the airline also donated Advent calendars to several schools and charities to spread the festive feeling in this difficult year.

76︱csr report 2020 csr report 2020 ︱ 77 GRI 103-1 I GRI 103-2 I GRI 203-1 Evaluation & Ongoing partnerships are integral using standard application forms adjustments within a well-functioning and that must be completed by the GRI 103-3 community-minded organization. applying association. Selections are In this area... Cargolux does this… These partnerships only work with based upon the charity’s reputation, employee engagement and due focus of their activity, and alignment diligence. Cargolux staff suggest with Cargolux values. Ongoing Impact & boundary Cargolux recognizes that ties to local The organization cares about team and/or select community outreach partnerships are created with and global communities bring benefit spirit and, whenever possible, programs to review. All requests are successful applicants. to the business, the country, and supports its employees to build ties funneled through the HR department society. The organization goes above to their business and social and beyond with efforts to connect community. The airline partners with and support the community. with associations and organizations It supports apprenticeship programs, that focus on improving physical, environmental research, mental or emotional well-being. the preservation of endangered species, cultural exchanges, and sponsors community events and non-profit organizations.

Management Cargolux supports a number of Employee engagement: Cargolux approach & community programs that include: organized a garage sale giving components employees the opportunity to purchase Reaching Children & Youth: kids. unused company furniture, proceeds cargolux.com is an interesting and were donated to 7 charities. exciting vehicle to introduce children Many employees converted their year- to the world of air freight. The site end cash gift into charitable donations provides information and activities that were distributed to 8 organizations related the air transport industry and worldwide. Ahead of the move Cargolux’s business. to the new HQ, Cargolux employee took part in a vast paper and FOC (Free of Charge) transports: cardboard collection, the equivalent support a range of initiatives such of the weight of the waste went as art, cultural institutions, research to several charities. and humanitarian causes that add to the cultural vibrancy and reputation Corporate teams and sports clubs: of Luxembourg and expose other A healthy population is happier populations to art and culture that they and more resilient. The organization would otherwise not experience. supports active sports clubs that are run by its employees, corporate Fight Against Covid: Cargolux was teams and other sports clubs in a actively engaged in the fight against variety of sport-related leagues and COVID-19. As well as supporting competitions. Despite the difficult the government for the procurement circumstances, Cargolux continued and transport of PPE, the airline also to support Tennis Club Senningerberg, contributed financially to research and Top Squash Sandweiler. programs led by the Luxembourg Institute of Health and the University Other Areas of Support and of Luxembourg. The airline also Sponsorship: Natur & Emwelt a.s.b.l. donated PPE to various organizations works to protect biodiversity in a varied in Luxembourg and abroad. natural and cultural landscape through Cargolux’s first aircraft was At the beginning of the outbreak awareness-raising, advice, practical, a Canadair CL-44. The model in February 2020, Cargolux, scientific and political actions at the had a unique swingtail that allowed in coordination with the Luxembourg local, national and international level. the loading of off-size cargo Ministry of Mobility and Public Works, Cargolux Advent calendars were dispatched a shipment of face masks donated to organizations dealing with and sanitary wipes to Zhengzhou health and poverty to spread joy during (CGO) for distribution amongst the the festive season. Cargolux illuminated airline’s business partners in CGO. its HQ building in blue for UNICEF’s The airline also sent a shipment of Go Blue initiative on the occasion Tyvek protective equipment to China of World Children’ Day. to help preserve the welfare of front line workers.

78︱csr report 2020 csr report 2020 ︱ 79 b. inspiration of future via the airline’s long-erm, cooperative GRI 103-3 talents relationship with Luxembourg’s Lycée Privé Emile Metz (LPEM). Social Media Etiquette is becoming for Air Cargo”. The Cargolux Cargolux offers a plethora of jobs Successful apprentices are awarded more and more important. BI department along with the Global in various environments and banks a Luxembourg end-of-school Cargolux published a social media ULD services department on science and technological certificate (Diplôme de Technicien) etiquette guide to help employees have regular calls with both innovation to remain a leader as well as an Aircraft Maintenance understand required boundaries students to discuss their progress in the industry. This innovative License that is recognized to being a savvy social media and obstacles. The company then focus is key for the organization throughout the European Union. ambassador. provides support and guidance to attract the required talents. The company also continued to from an operational point-of-view With the particular sanitary support the Luxembourg Center Luxembourg Center for Logistics and from an analytical point-of-view, circumstances in 2020, Cargolux for Logistics (LCL) Chair at the (University of Luxembourg): by making them better understand was not able to take part in as many University of Luxembourg and Cargolux supports the development the data they work with. events and job fairs as in previous welcomed 2 Masters students who of Luxembourg as a logistics hub years. However, the growing interest worked on the optimization of ULD through this scheme. The company Grievance resolution follows in its activities due to the pandemic management. Furthermore, Thomas welcomes Masters students the Cargolux standard practice led to enhanced press and social Klein, Cargolux’s Vice-President and encourages interest of engaging all parties in meaningful media presence which bolstered Business Intelligence & Corporate in this fascinating field. This year dialogue focused on positive its position as an employer. Controlling and Maxim Straus, Cargolux welcomed 2 students resolution and outcomes. the company’s Chief Financial Officer to work on a project cammed Partnerships with educational are member of steering committees “Optimizing the Utilization of ULDs institutions continued throughout and the examination board of the the year and Cargolux hired 9 aircraft LCL. Thomas Klein was offered the mechanics apprentices opportunity to teach a course about in the framework of its partnership “airline fleet and network planning” Evaluation & Cargolux follows a robust of robust fact-finding and reporting. with Lycée Privé Emile Metz. as visiting lecturer at the LCL. adjustments and well-thought-through process Decision-making is based upon Cargolux runs an Apprenticeship that encourages and supports a criterion that considers value-add Program for aircraft mechanics personnel to present their ideas and alignment with overarching (Maintenance & Engineering division) for evaluation against a backdrop corporate goals.

GRI 103-1 I GRI 103-2 I GRI 203-1 2020 2019 In this area... Cargolux does this… School visits at Cargolux 2 11 Visits to schools 0 5 The logistics and aviation are being robust and fruitful schedule Impact & boundary Hello Future sessions (FEDIL) 0 2 molded by advances in digitalization, that takes into consideration automation and materials the many facets of good community Fit4Jobs 0 2 engineering. The importance development. Cargolux is proud of stable and consistent support and supportive of active and for local science and technology theoretical research that provides Note: Many recruitment events events and activities means that this keener insight into the expansive were canceled due to the pandemic. community can plan and execute a logistics and air cargo industries. Cargolux also suspended all visits on its premises to curb the spread of the virus.

Management Cargolux participates in a wide Luxembourg Open Innovation approach & variety of endeavors to support Club (LOIC): Cargolux is an active components this community and to inspire member of LOIC, an association that its talent for the future. regroups members of Luxembourg’s Some ongoing support includes: business community to exchange best practices and discuss Luxembourg Science Center: innovative processes. The airline partners with the science and technology discovery center Digital Supply Chain Europe to help spark children’s interest Summit 2020: Cargolux took in this area. Cargolux sponsors part in the first edition of this new exhibits, transports equipment international event created by and supports elements of interactive the Luxembourg Ministry of Economy displays such as a wind tunnel. and dedicated to understanding the latest trends and challenges shaping the future of the supply chain and logistics sector.

csr report 2020 ︱ 81 80︱csr report 2020 c. ecosystem of A crucial new element was also GRI 103-1 I GRI 103-2 I GRI 103-3 developed to monitor and inform GRI 203-1 innovation & research on the changing COVID-related restrictions worldwide. A single Cargolux is determined to remain platform was created, gathering data In this area... Cargolux does this… a leader in its industry and invests related to quarantine conditions and considerable resources border closures worldwide providing in researching, developing end-users with a comprehensive and implementing innovative picture of the situation in various Impact & boundary Cargolux is on a journey to better Cargolux goes above and beyond solutions. Whether big or small, locations. This in-house solution leverage its expertise, enable to offer its customers the latest company requirements are analyzed enabled Management to make faster processes and streamline technology in transport solutions. to identify any pain points data-driven decisions while a mobile its connection with the customer, Cargolux continually seek better, and work towards alleviating application was available to flight industry, and staff. Innovation faster, and more accurate and safe them. Digitalization and flexibility crew to inform them of current and the digital transformation ways to do things. Most project lie at the heart of Cargolux’s strategy conditions for a given destination. of the company enable creative are synced with the ePMO and employees are encouraged solutions and inspiring design (Enterprise Project Management to flag areas of potential Cargolux also engages as tasks are automated. Office). improvement and discuss ideas with the innovation community with the support of the company’s at its home base in Luxembourg dedicated Innovation department to keep ahead of trends and to find adequate solutions. continuously search for the next Management Lean Maintenance & Engineering use that began in 2017 was extended bright idea. An active member of approach & (M&E): Lean training, complements in 2018 to include animal transport. In 2020, employees saw their work Luxembourg Open Innovation Club components improvement projects in capacity 10ft Connectors: Building upon the patterns disrupted as procedures (LOIC), the airline regularly engages management, line, hangar and shops, success of the environmentally friendly and interactions moved online. with other member of the Grand- Material, Sales, digital & paperless beam solution implemented in 2017, The urgency and volatility Duchy’s business community and steering cockpit. As well, aircraft Cargolux helped with the certification of the situation required Cargolux to exchange best practices, modifications. of 10ft connectors (10-foot pallet to rapidly develop new tools and share experiences, and cross- connectors) and acquired the solution strengthen existing ones pollinate ideas with link-minded M&E’s e-mobility project: uses in 2018. This certified component to face the heavy workload. companies. Recognized as a leading digitalized processes for aircraft is constructed of aluminum. The successful implementation figure in the industry, Cargolux also maintenance. iPads and electronic Typical 20ft pallet weighs around of invoice classification with Artificial took part in the Digital Supply Chain process management software save 500kg. This connector affords the Intelligence (AI) in 2019 opened Europe 2020, an international event thousands of pages of paper, time, possibility to safely connect two 1 the way for more tasks to be that took place in Luxembourg effort, and enables better information 0-foot pallets (that weigh around 120kg automated. For example, a new to shape the future of the logistics sharing, including allowing statistics each). This is an optimal way to enable system now allows the Charter and supply chain. to be tracked and reported more easily the transport of long cargo on the main department to record quotes and accurately. deck via nose-loading while saving automatically, thus providing weight/fuel. an overview of all customer Advanced Tool Management demands, reducing manual labor, System (ATMS): uses ubiquitous RFID Other corporate projects included: and avoiding human error. A digital (Radio Frequency Identification) Sales project is also underway technology to: 1) identify and trace LEAP and TMS begun in 2018 to provide customers, in addition tools, 2) decentralize storage solutions, to the current channels, the ability and 3) improve tool maintenance. EnPlore: a software and data- to interact digitally with Cargolux platform that enables advanced for quoting and booking, allowing Capacity planning improvements: data manipulation, data visualization, for enhanced speed and efficiency connect teams globally, matching descriptive and predictive analytics on such transactions. capacity to workload on the line which helps Maintenance improve and in the hangar. The system allows its repair and overhaul operations management to review the workload for the year and look for activity Connected ULDs with Unilode units peaks and valleys. The schedule equipped with Bluetooth tracking tags, is then organized to ensure a steady, enabling digital visibility over ULDs achievable level of activity, accounting offering further transparency and for team availability. enhanced tracking for shipments via Bluetooth readers at all warehouses Light-weight Solutions: operated by its customers. The implementation of SquAIR timber

Evaluation & Cargolux follows a robust and which includes evaluating ideas, adjustments well-thought-through process that solutions and new projects throughout encourages and supports innovation the process.

82︱csr report 2020 csr report 2020 ︱ 83 about 05 this report about this report This annual CSR report provides GRI content principles note GRI 102-42 I GRI 102-43 decisions. The topics were rated The questionnaire was sent to all information about CSR performance GRI 102-44 I GRI 102-46 from 1-not important, to 4-critical. employees and the participation and achievements during the period To prepare this report, Cargolux The participation rate was 63% with rate was 9.9% with 263 participants. GRI 102-42 I GRI 102-43 from 01/01/2020 to 31/12/2020. conducted a materiality analysis The mapping workshop resulted 50 participants. Key topics were Key topics were raised such as GRI 102-45 I GRI 102-46 to identify the priority topics to report in a list of 19 stakeholder groups, raised such as efficient air traffic aircraft fuel efficiency, training and GRI 102-48 I GRI 102-49 Information contained here pertains on according to the Stakeholder prioritized according to their level management, attracting talents, development, occupational health & GRI 102-50 I GRI 102-51 to Cargolux’s overall operations and Inclusiveness and Materiality of dependence on, and influence and employee engagement in CSR safety and network efficiency. GRI 102-52 I GRI 102-53 geographic presence, except where principles, with the support of the exerted upon Cargolux (see mapping programs as well as CSR integration GRI 102-54 I GRI 102-56 otherwise specified in the report: sustainability advisory firm Forethix. page 34/35). in the core business through values, Since 2017, all stakeholders For more than 4 years, Cargolux policy, increasing employees’ engaged were weighted identically • Occupational Health and Safety has published a CSR report sharing Based on this mapping, involvement in objectives and (without a multiplier) to give each related indicators cover the parent its CSR ambitions based on both a stakeholder engagement plan internal training. participant equal importance. company only. business priorities and in-depth was designed to cover the 2018- stakeholder dialogue. 2020 period. Cargolux expects • Data monitoring and the company’s that increasing engagement will allow Step 3: Engaging employees waste disposal relate to its facilities it to identify and anticipate future & suppliers in Luxembourg. Step 1: Raising awareness internally sustainability risks and opportunities, and respond to stakeholder In 2019, Cargolux continued to • Monitoring of fuel consumption In 2017, Cargolux’s CSR team expectations more effectively. improve the engagement process, and CO2 emissions for the fleet launched a first materiality involving its suppliers and includes data from both Cargolux assessment. It started with employees. Suppliers were asked – and Cargolux Italia. 100% of flight an exhaustive list of issues Step 2: Engaging strategic internal by questionnaire – to answer related CO2 emissions were in (42 topics - 7 economic topics, body & customers the main following elements: 2020 audited by Verifavia. Facilities 13 environmental topics, and 21

related fuel consumption and CO2 social topics) based on in-depth In 2018, Cargolux continued • Their main expectations emissions only includes Cargolux desktop research on current market to improve the engagement process, as suppliers in terms of Cargolux’s HQ building and the Maintenance trends using a sector-specific involving external stakeholders purchasing practices Center. benchmark analysis. The analysis in the materiality process. was carried out using the applicable Aligned with the mapping and the • The influence of Cargolux’s This report has been prepared in GRI sector supplement, as well as engagement plan, customers economic, social, accordance with the GRI standards - reports of the aviation sector and were the first group to be involved. and environmental impacts core option. The previous report was B2C companies displaying high 17 customers were selected based on their assessments and published in October 2020. The next maturity in terms of CSR reporting on the sales volume, the nature decisions. The topics were rated publication will be released in 2022 and performance. of the relationship (short versus long from 1-not important, to 4-critical and will cover Cargolux’s sustainable term), and the capacity development achievements and In October 2017, Cargolux gathered to be engaged (depending on • Their feedback on the report quality performance for 2021. input from internal stakeholders their CSR maturity and their will and content through 4 thematic workshops, to be engaged). They were mainly Cargolux invites all interested parties organized around the domains asked – by questionnaire – to The questionnaire was sent to enter into dialogue about its of Economy, Environment, and assess the influence of Cargolux’s to 62 suppliers – representing sustainability policy, its activities, Society and brought together experts economic, social, and environmental our main suppliers in terms and this report. The company’s from the various Cargolux corporate impacts on their assessments and of volume/spending - and the policy, details about its activities, and operational areas: Human decisions. The topics were rated participation rate was 6.82% with and previous reports, can be Resources & OHS, Compliance, from 1-not important, to 4-critical. 11 participants. Key topics were found on its website at Maintenance & Engineering, The participation rate was 53% with raised such as the digital and http://csr.cargolux.com. This report Environmental Management, 9 participants. Key topics were physical asset security, job creation will also be registered on the Procurement, Flight Operations, raised such as Cargolux’s supply & retention, supplier environmental database of the UN Global Compact. Corporate Finance, Strategy & chain management (supplier assessment and network efficiency. All comments and enquiries are Development, Sales & Marketing, environmental assessment, human welcome and can be forwarded Global Logistics, and Corporate rights assessment in the supply Simultaneously, employees were through the contact form on the Communications. chain, and purchasing practices) asked – via questionnaire – to answer aforementioned webpage, or by and reporting practices relating the main following elements: writing to [email protected]. The above-mentioned 42 topics to sustainability action plan & were prioritized according to their objectives. • Their CSR knowledge level of impact, occurrence, and the control that Cargolux holds. An initial Simultaneously, the CSR Board - • The influence of Cargolux’s list of material topics emerged composed of operational managers economic, social, and from these workshops. and top management - environmental impacts on their was integrated in the annual assessments and decisions. After completing the workshops engagement process. They were These topics were rated from 1-not involving a sample of internal mainly asked – by questionnaire – important, to 4-critical collaborators, Cargolux mapped both to assess the influence of Cargolux’s internal and external stakeholders economic, social, and environmental • Their will to be further engaged which would gradually engage impacts on their assessments and in Cargolux’s CSR journey in the materiality analysis.

86︱csr report 2020 csr report 2020 ︱ 87 GRI 102-44 I GRI 102-46 GRI 102-44 I GRI 102-46 GRI 102-47 GRI 102-47

Step 4: Selecting material topics Primary and secondary topics were established using a materiality Through analysis of activities, threshold determined collectively the activities’ economic, social, by the Cargolux CSR Board: and environmental impacts and consulting both internal and external • Primary material topics correspond stakeholders, the following materiality to coordinates greater than matrix was created: or equal to (3.04 ; 3.10)

• Secondary material topics correspond to coordinates greater than or equal to (2.89 ; 3.01) 3,40 23 21 • Tertiary material topics correspond 3,30 to coordinate bellow (2.89 ; 3.01) 8 7 As a result, the material topics that 3,20 25 6 Cargolux will focus on are: 5 27 15 11 3,10 13 26 1 18 4 10 3,00

12 20 2,90 17 28 3 9 29 16 Influence on stakeholders 2,80 22 14 19 24 health & safety emissions fuel efficiency network efficiency 2,70 2

2,60

2,50

2,40 2,50 2,60 2,70 2,80 2,90 3,00 3,10 3,20 3,30 3,40

Signifiant of the economic, environmental and social impacts

1 Job creation-retention 10 Efficient air traffic management 22 Employee engagement in CSR programs waste ethics emergency preparedness digital & physical assets management 2 Investment in local 11 Network efficiency 23 Digital and physical asset security infrastructures 12 Material sourcing in procurement 24 Package contents responsibility 3 Economic value distributed process to communities 25 Emergency preparedness and 13 Supplier environmental assessment business continuity Next steps Investment for sustainable 4 26 innovation 14 Biodiversity and animal welfare Local community investment Fuelled by a process of continuous 5 Purchasing practices and 15 Waste management 27 Human rights: intermediaries and improvement and dialogue with all shippers stakeholders, the Cargolux CSR supply chain sustainability 16 Water management approach is based on a progressive 6 28 Human rights in the supply chain Ethic practices in business 17 Attracting talent and inclusive program of stakeholder relationships 29 Humanitarian relief and resilience 18 Training and development for staff engagement. At its heart is the 7 Emissions (aircraft and fine balance between stakeholder 19 Staff diversity ground climate change) engagement, continuous focus on 8 Fuel efficiency 20 Staff welfare sustainable business practices and 9 Noise 21 Occupational health and safety innovation. This program will be renewed periodically to continuously engage new groups.

88︱csr report 2020 csr report 2020 ︱ 89 contribution to the UN’s Sustainable Development 06 Goals our contribution to the SDGs

ENSURING A RESPONSIBLE & INCLUSIVE CORPORATION

Ethics, p 42 x x x x Our people, p 46 x x x x x x x Sustainable procurement, p 52 x x x x Digitalization & asset security, p 55 x x x x x x

DEVELOPING SUSTAINABLE OPERATIONS

Health & Safety, p 58 x x x x Emergency Preparedness & Business Continuity, p 64 x x x x Fuel & network efficiency, p 66 x x x x x Emissions, p 68 x x x x Waste management, p 73 x x x x Noise management, p 75 x x x x x x

SHARING VALUE WITH COMMUNITIES

Local community development, p 77 x x x x x Inspiration of future talents, p 80 x x x x Ecosystem of innovation & research, p 82 x x x x x

92︱csr report 2020 csr report 2020 ︱ 93 gri 07 appendix gri appendix SOCIAL

GRI 102-41 GRI 404-1 2020 2019 2018 employment 2020 2019 2018 occupational health & safety Number of staff Number of injuries (accidents)

Worldwide 2,368 2,253 2,031 Internal 30 42 36 Headquarter 1,726 1,630 1,531 External 19 18 15 Rest of the world 642 623 500 Injury rate - - - Cargolux Italia 120 121 not reported Work related fatalities - - - Percentage of women 18 18 19 Occupational disease rate - - - Permanent contract 2,286 2,208 1,996 Newly hired 222 241 243 Collective Work Agreement 1,457 1,387 1,316 181 170 172 Female training 2020 2019 2018 Male 1,276 1,217 1,144 53 76 73 Turnover 96 134 141 Number of training hours per employee

Parental Leave (LUX) Parental leave entitlement 397 401 383 Parental leave started in 2020 49 44 46

Number of employees by age groups

under 30 302 (13%) 321 302 30-50 1,441 (61%) 1,347 1,214 over 50 625 (26%) 585 515

absenteeism 2020 2019 2018

Lost days for accidents 383 347 321 Lost days for sickness 15,331 14,682 14,722 Maternity leave 5,316 6,744 5,072

96︱csr report 2020 csr report 2020 ︱ 97 gri appendix ENVIRONMENT

GRI 301-1 I GRI 305-1 I GRI 305-2 GRI 302-1 I GRI 302-2 I GRI 306-2 2020 2019 2018 2020 2019 2018 consumption materials Water (ltrs) 9,947 10,501 9,683

A/C cleaning products (ltrs) 31,102 32,074 36,457 Electricity (kWh) 6,107,273 6,040,235 6,081,304

Honey bee 152 270 362 The following data regarding the indirect Energy Consumption are only available for CMC A/C cleaner 28,125 29,035 32,720 Heating (kWh) 4,821,000 5,338,400 4,346,000 Hydraulic removal 2,815 2,769 3,375 Cooling (kWh) 512,600 482,900 527,200 De-icing and anti-icing product Compressed air (m3) 1,227,533 1,348,663 1,289,051 Tarmac/airside (ltrs/kgs) 4,000 / 150 2,800/500 6,350/700 Salt (parking/road) (kgs) 7,575 11,150 9,120 Jet A (tonnes) 1,367,937 1,276,882 1,299,531 Paper (DIN A4) (kgs) 13,800 14,490 23,905 Facilities Cartridges* 243 436 506 Natural gas (heating; paint cabins; BHKW) 1,034,443 958,223 887,631 Fuel (Heating systems for Lorang building, ltrs) 76,274 79,360 75,657 3,999 2,326 4,438 * In previous years, Cargolux Fuel (sprinkler pumps, ltrs) reported the number of cartridges GSE vehicles used for personal printers. As of 2020, the figure will include the Industrial Fuel (ltrs) 56,469 65,805 75,959 number of cartridges for personal Diesel (ltrs) 17,674 20,503 19,075 printers and shared copy printers. Unleaded Gasoline 95 (ltrs) 6,125 6,639 6,393

emissions 2020 2019 2018 2020 2019 Direct emissions (Scope 1) waste

CO2 emitted by aircraft (tonnes) 4,308,983 4,022,178 4,093,521 Hazardous waste

CO2 emitted by GSE vehicles (tonnes) 62 70 66 Composted (kgs) 164,250 33,000 Other (kgs) 142,466 161,725 Indirect emissions (Scope 2) Recycled (kgs) 378 32,502 Facilities (tonnes) 2,524 2,392 2,065 Total 307,094 227,227

Non-Hazardous Material Landfilled (kgs) - 1,180 Other (kgs) 63,783 9,684 Recycled (kgs) 93,888 231,903 Total 157,671 242,767

Wastewater from our maintenance operations at the maintenance facilities in Luxembourg are directly collected by the airport sewage system prior to a wastewater treatment plant.

98︱csr report 2020 csr report 2020 ︱ 99 gri content 08 index gri content GRI 102-55 index GRI 102-55

disclosure omission pages disclosure omission pages

GRI 101: FOUNDATION 2016 Stakeholder engagement

Organizational profile GRI 102-40 List of stakeholder groups 34,35 GRI 102-41 Collective bargaining agreements 96 GRI 102-1 Name of the organization 11 GRI 102-42 Identifying and selecting stakeholders 86, 87 GRI 102-2 Activities, brands, products, and services 11 GRI 102-43 Approach to stakeholder engagement 86, 87 GRI 102-3 Location of headquarters 11 GRI 102-44 Key topics and concerns raised 87-89 GRI 102-4 Location of operations 11 Reporting Practices GRI 102-5 Ownership and legal form 11 GRI 102-6 Markets served 11 GRI 102-45 Entities included in the consolidated financial statements 86 GRI 102-7 Scale of the organization 11, 19 GRI 102-46 Defining report content and topic boundaries 86-89 GRI 102-8 Information on employees and other workers 47 GRI 102-47 List of material topics 88, 89 GRI 102-9 Supply chain 53 GRI 102-48 Restatements of information 86 GRI 102-10 Significant changes to the organization and its supply chain 53 GRI 102-49 Changes in reporting 86 GRI 102-11 Precautionary principle or approach 32 GRI 102-50 Reporting period 86 GRI 102-12 External initiatives 15-17 GRI 102-51 Date of most recent report 86 GRI 102-13 Membership of associations 15-17 GRI 102-52 Reporting cycle 86 Strategy GRI 102-53 Contact point for questions regarding the report 86 GRI 102-54 Claims of reporting in accordance with the GRI Standards 86 GRI 102-14 Statement from senior decision-maker 6, 7 GRI 102-55 GRI content index 102-107 Ethics and integrity GRI 102-56 External assurance 86, 108 GRI 102-16 Values, principles, standards, and norms of behavior 10 Governance

GRI 102-18 Governance structure 20, 22-25

102︱csr report 2020 csr report 2020 ︱ 103 GRI 102-55 GRI 102-55

disclosure omission pages disclosure omission pages

MATERIAL TOPICS ENVIRONMENT Economy Material topic: GRI 301 - Materials 2016

Material topic: GRI 201 - Economic Performance 2016 GRI 103-1 Explanation of the material topic and its Boundary 74

GRI 103-1 Explanation of the material topic and its Boundary 19 GRI 103-2 The management approach and its components 74 GRI 103-2 The management approach and its components 19 GRI 103-3 Evaluation of the management approach 74 GRI 103-3 Evaluation of the management approach 19 GRI 301-1 Materials used by weight or volume 98 GRI 201-1 Direct economic value generated and distributed 19 Material topic: GRI 302 - Energy 2016

Material topic: GRI 203 - Indirect Economic Impacts 2016 GRI 103-1 Explanation of the material topic and its Boundary 66, 67

GRI 103-1 Explanation of the material topic and its Boundary 77, 78, 80, 83 GRI 103-2 The management approach and its components 66, 67 GRI 103-2 The management approach and its components 78, 80, 83 GRI 103-3 Evaluation of the management approach 67 GRI 103-3 Evaluation of the management approach 79, 81, 83 GRI 302-1 Energy consumption within the organization 99 GRI 203-1 Infrastructure investments and services supported 78, 80, 83 GRI 302-2 Energy consumption outside of the organization 99 GRI 302-4 Reduction of energy consumption 66 Material topic: GRI 204 - Procurement Practices 2016 Material topic: GRI 305 - Emissions 2016 GRI 103-1 Explanation of the material topic and its Boundary 53 GRI 103-2 The management approach and its components 54 GRI 103-1 Explanation of the material topic and its Boundary 68, 71 GRI 103-3 Evaluation of the management approach 52, 54 GRI 103-2 The management approach and its components 68, 69, 71 GRI 204-1 Proportion of spending on local suppliers 52 GRI 103-3 Evaluation of the management approach 69, 71 Material topic: GRI 205 - Anti-corruption 2016 GRI 305-1 Direct (Scope 1) GHG emissions 70, 98 GRI 305-2 Energy indirect (Scope 2) GHG emissions 70, 98, 68 GRI 103-1 Explanation of the material topic and its Boundary 42, 43, 44 GRI 305-4 GHG emissions intensity 68 GRI 103-2 The management approach and its components 42, 43, 44 GRI 305-5 Reduction of GHG emissions 66 GRI 103-3 Evaluation of the management approach 45 Material topic: GRI 306 - Waste 2016 GRI 205-1 Operations assessed for risks related to corruption 43, 45 GRI 205-2 Communication and training about anti-corruption policies and procedures 45 GRI 103-1 Explanation of the material topic and its Boundary 73, 74 GRI 205-3 Confirmed incidents of corruption and actions taken 45 GRI 103-2 The management approach and its components 73, 74 GRI 103-3 Evaluation of the management approach 74 GRI 306-2 Waste by type and disposal method 99 GRI 306-3 Significant spills 73

104︱csr report 2020 csr report 2020 ︱ 105 GRI 102-55 GRI 102-55

disclosure omission pages disclosure omission pages

SOCIAL Material topic: GRI 405 - Diversity and Equal Opportunity 2016

Material topic: GRI 401 - Employment 2016 GRI 103-1 Explanation of the material topic and its Boundary 51

GRI 103-1 Explanation of the material topic and its Boundary 46, 48 GRI 103-2 The management approach and its components 51 GRI 103-2 The management approach and its components 46, 48 GRI 103-3 Evaluation of the management approach 51 GRI 103-3 Evaluation of the management approach 48 GRI 405-1 Diversity of governance bodies and employees 46 GRI 401-1 New employee hires and employee turnover 49 Material topic: GRI 412 - Human Rights Assessment 2016

GRI 401-3 Parental leave 48, 49 GRI 103-1 Explanation of the material topic and its Boundary 42, 43, 44 Material topic: GRI 403 - Occupational Health and Safety 2018 GRI 103-2 The management approach and its components 42, 43, 44

GRI 103-1 Explanation of the material topic and its Boundary 58, 60, 62, 63 GRI 103-3 Evaluation of the management approach 45 GRI 412-1 Operations that have been subject to human rights GRI 103-2 The management approach and its components 58, 59, 60, 62, 63 43, 45 reviews or impact assessments GRI 103-3 Evaluation of the management approach 61, 62, 63 GRI 412-2 Employee training on human rights policies or GRI 403-1 Occupational health and safety management system 60 45 procedures GRI 403-2 Hazard identification, risk assessment, and incident 60, 62 investigation Material topic: GRI 413 - Local Communities 2016

GRI 403-3 Occupational health services 60, 63 GRI 103-1 Explanation of the material topic and its Boundary 75 GRI 403-4 Worker participation, consultation, and communication on 60 GRI 103-2 The management approach and its components 75 occupational health and safety GRI 103-3 Evaluation of the management approach 75 GRI 403-5 Worker training on occupational health and safety 51, 60 GRI 413-2 Operations with significant actual and potential 75 GRI 403-6 Promotion of worker health 58, 59, 60 negative impacts on local communities GRI 403-7 Prevention and mitigation of occupational health and 60 safety impacts directly linked by business relationships

GRI 403-8 Workers covered by an occupational health and safety 61 management system GRI 403-9 Work-related injuries 61 Material topic: GRI 404 - Training and Education 2016

GRI 103-1 Explanation of the material topic and its Boundary 50, 51 GRI 103-2 The management approach and its components 50, 51 GRI 103-3 Evaluation of the management approach 51 GRI 404-1 Average hours of training per year per employee 47, 97 GRI 404-2 Programs for upgrading employee skills and transition 51 assistance programs

GRI 404-3 Percentage of employees receiving regular performance 47 and career development reviews

106︱csr report 2020 csr report 2020 ︱ 107 GRI 102-56

independent and limited assurance 09 report 110︱csr report 2020 csr report 2020 ︱ 111 112︱csr report 2020 csr report 2020 ︱ 113

VERIFAVIA SARL VERIFAVIA SARL 33 avenue du Maine, 75015 Paris (France) 33 avenue du Maine, 75015 Paris (France)

relating to the data have been properly prepared in accordance with the rules in terms of relevance, completeness, consistency, transparency and accuracy. ASSURANCE STATEMENT Independence statement Context We confirm that Verifavia SARL and the verification team are independent of Cargolux Airlines International We have been engaged by Cargolux Airlines International S.A. to perform an independent verification with S.A. and have not assisted in any way with the development of the emissions report, with the exception of

reasonable assurance of the CO2 emissions from flights operated in 2020 subject to the Directive this Assurance Statement. 2018/101/EC (EU ETS) and flights operated in 2020 subject to ICAO’s Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA). Opinion

Criteria We conducted a verification of the 2020 emissions by Cargolux Airlines International S.A. in its emissions report dated 01 March 2021. On the basis of the verification work undertaken to reasonable assurance, these In order to prepare its 2020 emissions report for EU ETS and CORSIA, Cargolux Airlines International S.A. data are fairly stated and contain no material misstatements or material non-conformities. followed the following rules: Total international and domestic CO2 emissions: 3,843,243 tCO2 (with an emissions factor of 3,15) • The EU ETS Directives (Directive 2008/101/EC of 19 November 2008 and Directive 2009/29/EC of 22 April 2009 amending Directive 2003/87/EC) • The Commission Regulation 421/2014 of the European Parliament and of the Council of 16 April 2014 amending Directive 2003/87/EC

• The Commission Delegated Regulation 2019/1603 of 18 July 2019 supplementing Directive

2003/87/EC • The Commission Regulation 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC (MRR) • The Commission Regulation 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse Paris, 8 March 2021

Julien Dufour, CEO, VERIFAVIA SARL We conducted the independent verification based on the following verification criteria:

• ISO 14065:2013 – Greenhouse Gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition • ISO 14064-3:2019 – Greenhouse Gases – Specification with guidance for the validation and verification of greenhouse gas emissions and removals • The IAF MD 6:2014 - IAF Mandatory Document for the Application of ISO 14065:2013; • The Commission Regulation 2018/2067 of 19 December 2018 on the verification of greenhouse gas emission reports and tonne-kilometre reports and the accreditation of verifiers pursuant to Directive 2003/87/EC (AVR)

Responsibilities

Cargolux Airlines International S.A. is solely responsible for the preparation and reporting of their emissions data, for any information and evidence that support the reported data, for determining the company’s objectives in relation to emissions information and management, and for establishing and maintaining appropriate performance management and internal control systems from which reported information is derived.

In accordance with our verification contract with Cargolux Airlines International S.A., it is our responsibility to form an independent opinion, based on the examination of information and data presented in the emissions report, and to report that opinion to Cargolux Airlines International S.A.

We conducted our examination having regard to the verification criteria documents listed above. This involved a site visit previously to inspect the facilities and interview the staff responsible. It also included examining, on a test basis, evidence to give us reasonable assurance that the amounts and disclosures

1/2 2/2

The authenticity of this file is protected by KeeeX blockchain mechanism. The file can be verified at https://services.keeex.me/verify/ or https://www.verifavia.com/KeeeX. The authenticity of this file is protected by KeeeX blockchain mechanism. The file can be verified at https://services.keeex.me/verify/ or https://www.verifavia.com/KeeeX. It was signed by 1MNJf79yHGKres7PbqQUBK9QYzEZADo2Ng. Unique identifier: It was signed by 1MNJf79yHGKres7PbqQUBK9QYzEZADo2Ng. Unique identifier: xezer-pacob-pahoz-fymec-gahus-hyvec-hekun-lofiz-cokul-sepum-ganup-fukil-mytes-kylug-hekom-kynib-mexex xezer-pacob-pahoz-fymec-gahus-hyvec-hekun-lofiz-cokul-sepum-ganup-fukil-mytes-kylug-hekom-kynib-mexex

114︱csr report 2020 csr report 2020 ︱ 115

VERIFAVIA SARL VERIFAVIA SARL 33 avenue du Maine, 75015 Paris (France) 33 avenue du Maine, 75015 Paris (France)

Independence statement ASSURANCE STATEMENT We confirm that Verifavia SARL and the verification team are independent of Cargolux Italia and have not Context assisted in any way with the development of the emissions report, with the exception of this Assurance Statement. We have been engaged by Cargolux Italia to perform an independent verification with reasonable assurance

of the CO2 emissions from flights operated in 2020 subject to the Directive 2018/101/EC (EU ETS) and flights Opinion operated in 2020 subject to ICAO’s Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA). We conducted a verification of the 2020 emissions by Cargolux Italia in its emissions report dated 01 March 2021. On the basis of the verification work undertaken to reasonable assurance, these data are fairly stated Criteria and contain no material misstatements or material non-conformities.

In order to prepare its 2020 emissions report for EU ETS and CORSIA, Cargolux Italia followed the following Total international and domestic CO2 emissions: 440,424 tCO2 (with an emissions factor of 3,15) rules:

• The EU ETS Directives (Directive 2008/101/EC of 19 November 2008 and Directive 2009/29/EC of 22 April 2009 amending Directive 2003/87/EC)

• The Commission Regulation 421/2014 of the European Parliament and of the Council of 16 April

2014 amending Directive 2003/87/EC • The Commission Delegated Regulation 2019/1603 of 18 July 2019 supplementing Directive 2003/87/EC • The Commission Regulation 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC (MRR) Paris, 8 March 2021

• The Commission Regulation 2018/2066 of 19 December 2018 on the monitoring and reporting of Julien Dufour, CEO, VERIFAVIA SARL greenhouse

We conducted the independent verification based on the following verification criteria:

• ISO 14065:2013 – Greenhouse Gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition • ISO 14064-3:2019 – Greenhouse Gases – Specification with guidance for the validation and verification of greenhouse gas emissions and removals • The IAF MD 6:2014 - IAF Mandatory Document for the Application of ISO 14065:2013; • The Commission Regulation 2018/2067 of 19 December 2018 on the verification of greenhouse gas emission reports and tonne-kilometre reports and the accreditation of verifiers pursuant to Directive 2003/87/EC (AVR)

Responsibilities

Cargolux Italia is solely responsible for the preparation and reporting of their emissions data, for any information and evidence that support the reported data, for determining the company’s objectives in relation to emissions information and management, and for establishing and maintaining appropriate performance management and internal control systems from which reported information is derived.

In accordance with our verification contract with Cargolux Italia, it is our responsibility to form an independent opinion, based on the examination of information and data presented in the emissions report, and to report that opinion to Cargolux Italia.

We conducted our examination having regard to the verification criteria documents listed above. This involved a site visit previously to inspect the facilities and interview the staff responsible. It also included examining, on a test basis, evidence to give us reasonable assurance that the amounts and disclosures relating to the data have been properly prepared in accordance with the rules in terms of relevance, completeness, consistency, transparency and accuracy.

1/2 2/2

The authenticity of this file is protected by KeeeX blockchain mechanism. The file can be verified at https://services.keeex.me/verify/ or https://www.verifavia.com/KeeeX. The authenticity of this file is protected by KeeeX blockchain mechanism. The file can be verified at https://services.keeex.me/verify/ or https://www.verifavia.com/KeeeX. It was signed by 1MNJf79yHGKres7PbqQUBK9QYzEZADo2Ng. Unique identifier: It was signed by 1MNJf79yHGKres7PbqQUBK9QYzEZADo2Ng. Unique identifier: xesap-napok-pakin-sipug-hozet-muhan-codot-zerit-zosod-gahov-fizok-zubyl-kycah-fydum-temyz-lefuf-poxix xesap-napok-pakin-sipug-hozet-muhan-codot-zerit-zosod-gahov-fizok-zubyl-kycah-fydum-temyz-lefuf-poxix

116︱csr report 2020 csr report 2020 ︱ 117 10 glossary glossary

AI DAC FAA H&S Artificial Intelligence Direction de l’Aviation Civile Federal Aviation Administration Health & Safety ANSP  Luxembourg FBD HAWB Air Navigation Service Provider DIMAS  Fuel Briefing Dashboard House Air Waybill APU  Diplôme d’Initiation aux Métiers FEDIL HCM Auxiliary Power Unit Aéronautiques et Spatiaux Business Federation Luxembourg Human Capital Management ATA  FOC HQ Animal Transportation Association Free of Charge Headquarters ATK FRM HR Available Tonne Kilometers Fatigue Risk Management Human Resources ATMS FTE Advanced Tool Management System Full Time Employee FTK Freight Tonne Kilometers FWB Freight Weight Bills e-AWB Electronic Air Waybill e-CMR Electronic Consignment Notes (Convention relative au contrat IATA C&P de transport international de International Air Transport Contracts & Procurement marchandises par route) Association CAPA EAAP IATP Centre for Aviation European Association for Aviation International Airlines Technical Pool CDA Psychology ICAO Continuous Descent Operations & EASA GDP International Civil Aviation Approach European Aviation Safety Agency Good Distribution Practice Organization CDO EPPSI GDPR IOSA Continuous Descent Operations European Pilot Peer Support Initiative General Data Protection Regulation IATA Operational Safety Audit CDO (F) EFB GHA IPATA Continuous Descent Operations Electronic Flight Bag Ground Handling Agreement International Pet & Animal (Fuel) EMS GHG Transportation Association CDO (N) Environmental Management System Greenhouse Gas IQSMS/IQ SMS Continuous Descent Operations eMobility Trax GPS Safety Management Systems (Noise) Electronic mobility Global Positioning System ISO CHINALUX ePMO GRI International Organization for China-Luxembourg Chamber of Enterprise Project Management Global Reporting Initiative Standardization Commerce Office GSA IT CISM ERP General Sales Agent Information Technology Critical Incident & Stress Enterprise Resource Planning Management EU CITES European Union Convention on International Trade EU ETS in Endangered Species EU European Trading Systems CO2 EVP Carbon Dioxide Executive Vice President CORSIA ExCom Carbon Offsetting & Reduction Executive Committee Scheme for International Aviation

120︱csr report 2020 csr report 2020 ︱ 121 Km NASI RFID UFW Kilometer Cargo Door Venting Systems Radio Frequency Identification United for Wildlife RSB ULD Roundtable on Sustainable Unit Load Device Biomaterials UN RCS United Nations Ready for Carriage US United States

LAPB OHS Live Animal & Perishables Board Occupational Health & Safety LCL OPS/Ops Luxembourg Center for Logistics Operations LCSB OSSA SAFUG Luxembourg Center for Systems Open Secure Storage Area The Sustainable Aviation Fuel Users Biomedicine Group VAT LED SDG Value-Add Tax Light-Emitting Diode Sustainable Development Goals VP LTF Vice-president Lightning Training Flight LIDO Integrated Dispatch Operation LOIC Luxembourg Open Innovation Club PBN Performance Based Navigation PET Polyethylene (plastic) TTTF PSP Time & Temperature Task Force Peer Support Program TMS Trucking Management System

M&E Maintenance & Engineering MHP Mental Health Professional

122︱csr report 2020 csr report 2020 ︱ 123