Local opportunities. Global impact.
Connecting Experts. Creating Experiences. Dear reader, A message from This year, we are proud to publish a comprehensive Corporate Responsibility (CR) activity overview for the first time. After being the first company in our industry to track environmental data in 1994, introduce an environmental policy in 2008 and publish several sustainability reports over the past the Executive Board decade, we see it as our responsibility to continue that tradition with this activity overview. The aim is to share some of our current CR efforts at our offices and 200 facilities in almost 60 countries around the globe, as well as to respond to a broad set of stakeholder expectations and inquiries we receive throughout the year.
It will also show you how local opportunities are seized across the company and their global impact. This activity overview covers dates and facts from the year 2018 and a set of stories from each one of our four expert brands (LSG Sky Chefs, Evertaste, Retail inMotion and SPIRIANT), illustrating their efforts in this area. Currently, our CR activities concentrate around:
– Products and supply chain – Environment – Employees – Community
Choosing a holistic approach, we strive to focus on common-sense solutions that address both environmental and social issues, such as sustainable packaging alternatives, paperless production, working under the Agile philosophy and training, and offering young people from disadvantaged backgrounds professional opportunities.
Alone, we cannot solve any of those problems. But by working together and connecting experts within our LSG Group network, we can become an agent of change. Overcoming challenges also requires empathy and understanding. That is why most of our efforts start locally in our units and divisions. That is where the need for change is first detected and where we can have the greatest impact by getting our employees involved.
This is why our CR slogan is:
Local opportunities. Global impact.
We hope that this overview inspires you and reflects our employees’ passion and expertise.
Sincerely,
Erdmann Rauer Dr. Kristin Neumann Jochen Müller Chief Executive Officer Chief Financial Officer/Labor Director Chief Operating Officer
2 LSG Group | A message from the Executive Board Silently, effortlessly, he cuts through the air. We produce Beneath him the passing forests, fi elds, products from and towns look just like tiny models. He renewable lightly tilts the control stick and his glider tips to one side. Through the window resources on his right, he can now see the ground below him getting closer. Through the one to his left, a couple of sun rays shine on his face and make him squint. He smiles when he realizes that those are exactly the same rays that are absorbed by the solar panels covering the top of the wings of A passion his glider. They produce enough energy to perform the maneuvers that otherwise would be powered by a gasoline engine. for Sustainable This is Vladislav Voron’s passion: fi nding environmentally friendly alternatives for activities and products we enjoy, just like the glider he loves to fl y. About Vladislav Voron Products – Product Manager for Leisure & Smart Rethink, replace, reuse Solutions at SPIRIANT Voron works according to the circular – Has been working full-time on fi nding and Materials economy approach. Just like in nature, sustainable solutions for packaging since it is based on the idea that a product the spring of 2018 is part of a closed cycle. This helps to – Typically the fi rst to be contacted by clients SPIRIANT conserve resources as well as reduce and colleagues with questions about waste, emissions and the use of energy. sustainability at SPIRIANT Voron doesn’t only ensure that customers – More than 10 airlines have been in touch Sustainability is Vladislav Voron’s think about sustainability, but that they with Voron in the past year for consultation world. The Product Manager for also understand it and apply that value and knowledge in their own work. on related issues Leisure & Smart Solutions set a His approach to fi nding sustainable new focus on sustainability when he alternatives is: rethink, replace and reuse. realized that there was a growing demand for experts in that fi eld in the airline industry. So, he made his passion his job and now works on Because of the “wave of sustainability, new regulations, competition and products that help reduce waste and mindset shift in our society, a genuine interest for sustainable products conserve natural resources. has developed,” Voron explains. “That was my chance to refocus my This is Vladislav Voron, SPIRIANT’s Product Manager, work more on my passion for sustainability.” #ProductsAndSupplyChain Leisure & Smart Solutions
4 LSG Group | Products and supply chain We offer meals that have a reduced environmental impact
One example of a sustainable alternative needed to produce PaperWise products, would be Voron’s hero among all such as rice leaves, grains, sweet corn sustainable alternatives: PaperWise. and sugar cane, grow 40 times faster “We worked with the Dutch company per year than trees. The environmental
PaperWise to develop a product portfolio impact of the CO2-neutral, paper-like that is exclusive in the airline-catering material produced is 47 percent lower industry and is made from agricultural than that of paper made from wood fi ber waste,” explains Voron. The resources and 29 percent lower than recycled paper. needed to produce PaperWise products, Products made from PaperWise can be such as rice leaves, grains, sweet corn re-used, replacing those made with plastic. and sugar cane, would usually be burnt as Our team in the Lufthansa Lounge in the left-over byproduct. “But we use them Munich, for example, now uses a variety of Doing good for others resources, which will slow down global instead for new products. This way the packaging, wrappers, cups and bags – all When speaking to Voron, you can truly feel warming and reduce waste in the short material gets a second life.” The resources made from PaperWise. his passion and pride for such alternative and long term. “I am in the lucky position materials and the development of new to travel across the globe supporting other products. But he says that “the best companies on their journey and fi nding thing about my job is the international more alternatives. But I am also aware We provide customers with collaboration and the chance to do of the irony of me trying to decrease more than 25 different alternatives something good for others.” He believes the impact our industry has on the to single-use plastic that when he develops product-and- environment whilst fl ying frequently.” You concept solutions he doesn’t only improve cannot make up for something like that. the user experience with the catering But Voron does his best to make smart equipment, he is helping conserve natural and sustainable lifestyle choices.
6 LSG Group | Products and supply chain Imagine you’re baking a cake. To do that, you need to mix in the right ingredients at the right time and then, layer by layer, create the cake. That is how Coca Pitzer, Head of Design & Agile Transformation It’s like at Retail inMotion, explains the concept of Agile working. “With traditional project management, you’re baking a cake and building it layer by layer,” she explained. baking a cake “The cake is only ready after every layer has been baked and the icing has been added. With Agile thinking, we are Coca Pitzer from the Dublin office of Retail inMotion (RiM) believes building a cake slice by slice. That way, that the principles and values that stand behind the Agile philosophy the customer can try the cake one piece are just what our onboard-retail experts need to succeed. She is a at a time. We’re able to deliver more quickly and also adapt to any changing woman with a passion for this philosophy and a vision to transform requirements by adjusting our recipe.” the basic principles and concepts behind the way that Retail inMotion approaches its business. Agile brings all the ingredients of the the methodology so that the company can cake (in RiM’s case, the IT developers, truly become an Agile organization. “We quality assurance engineers, designers have a vision to train everyone at RiM,” #Employees and project leaders) together from the explains Pitzer. “Having a ground-level beginning so that everything is ready for understanding of the foundation of Agile baking from the start. thinking is a key communications success criterion for our team. Agile is not just for An Agile vision at RiM IT developers. It is an innovative way to This is Coca Pitzer, Head of Design & Agile Pitzer is leading the way toward making approach problems and create solutions Transformation at Retail every Retail inMotion employee understand that can be applied to any team.” inMotion
How agile works at Retail inMotion About Coca Pitzer Pitzer has been with Retail inMotion for just The Agile methodology is a human-centric way to approach projects and product over a year, but has been working with the Agile development differently. The main idea is to break projects into smaller, more achievable methodology for several, both in Ireland and in her native Brazil. She is such a strong believer in pieces. This allows product teams, like those at Retail inMotion, to get a better, more client- the fundamentals of the philosophy that she has implemented them into her personal life, as well. focused solution to their customers faster. For Retail inMotion, that means that the team is focused on including all the relevant stakeholders as early as possible and making sure that Before relocating to Dublin in 2017, Pitzer started a meet-up organization called “Agile Beer” in Brazil for their opinions are heard. From there, the teams build solutions that add real value to both Agile practitioners to come together and discuss their the end users and the company’s clients. Every individual is close to the end results and experiences working with the methodology. sees the effect that they are having on the final product. That’s where the importance of the After starting in Rio de Janeiro, Pitzer’s gathering has methodology lies for Retail inMotion. Everyone is involved and invested in delivering the best expanded from its shores to local teams in Dublin, London, Porto, the Netherlands and Singapore. results for customers, both quickly and efficiently.
8 LSG Group | Employees An Agile Mindset – Even at Pitzer’s home It comes as no surprise that Pitzer is not only passionate about implementing the The fi ve benefi ts of Agile Agile mindset at Retail inMotion but also The implementation of the Agile approach at Retail inMotion has resulted in the in her personal life. But experimenting transformation of the company's overall orientation. In parallel, there are fi ve clear with Agile at home helped her improve benefi ts for both customers and the company: the family routine and enabled them to connect with each other when making 1. Retail inMotion’s teams are more client-focused. and executing plans for the weekend, for 2. The onboard retail start-up’s customers receive their solutions more openly, example. “As parents, my husband and I transparently and collaboratively. are constantly impressed with the evolving 3. Within the framework of smaller projects, the team is more daring and innovative abilities of our kids to self-organize and with the software they are creating. resolve their own problems.” 4. Employees are more open about their issues, challenges and effectively voicing concerns when they need support on a project. This is proof of how effective she is at 5. The team’s focus has shifted toward building a product that truly adds value to implementing Agile. Whether it’s at home the customers and end users. to engage with her family or at work to Everyone is involved and invested in bring the RiM teams’ work to an entirely delivering the best results for customers, new level, Pitzer knows how to mix the both quickly and effi ciently. right ingredients. Agile vs. the Traditional Approach and extensively plan out projects. After to IT Product Development intense planning phases were completed. What exactly are the ideas related to Agile Companies would then spend months thinking and why are they important for developing software and subsequently an organization? Quite simply, the Agile testing the product to work out any methodology allows cross-functional mistakes or “bugs” in the code. Only after and multi-disciplinary teams to deliver all of these steps were completed, would better results faster. The traditional way of the client be shown the fi nal result. This approaching IT product development has approach often led to dissatisfi ed clients been to scope requirements from clients and software that wasn’t customer-focused.
283 employees from across the world played in the LSG Group’s football At Retail inMotion, 60% of cup in Frankfurt the 2019 parental leaves are paternal leaves
10 LSG Group | Employees This is Martin Hensgen, Evertaste’s plant in Alzey resembles an Hensgen is the one to ask as he is Evertaste’s Director of anthill. People in uniforms unpack pallets responsible for all the preparations that led Operations and Logistics brimming with countless boxes of canned up to the big process change that started tomato sauce, red cabbage, fresh meat two years ago. “Each replenishment was and broccoli. Other employees are busy additionally printed out here,” he adds. driving forklifts to transport pallets from “And we also worked with scanners.” The delivery vans standing outside the ramp. order pickers used them to generate labels The first question that any visitor has when for each order. stepping into Alzey is: With that amount of goods, how do order pickers and A digital blueprint for our employees unpackers know when to bring what to “Beginning this past summer, however, which station, fridge or freezer? things began to change,” says Hensgen. “We were on the verge of implementing Working with paper lists paperless production for the entire The Director of Operations and Logistics, unpacking area. In the future, we will also Martin Hensgen, explains: “Until recently, introduce it in the storage area.” But how we were working with paper lists for the does “paperless” work? The paper lists different meals that are produced each and portable scanners will be replaced by day. We printed these lists for each day a computer system on which employees and added them manually if necessary.” can view data on two different screens.
“Environmental protection is a topic close to my heart” 500km. That's how many kilometers employees now drive less around the catering unit due to streamlining the processes. “That is better for the employees and for the machines we use”, says Hensgen. Besides the enhancements on the side of the workers and processes, Hensgen’s project also enables Evertaste to save 78,000 sheets of paper, and thus 20,315 From paper lists liters of water as well as 1,166 kg of wood per year. Through the streamlining of the storage processes, it reduces the opening of the cold store and deep-freeze by 60 times every single day. “That minimizes the electricity that we need by 10,220kWh per year” he elaborates. to paperless One can see that these results make Hensgen very happy when he explains: “Environmental protection is a topic close to my heart.”
Martin Hensgen is implementing paperless production in the Evertaste That passion becomes even more clear when he talks enthusiastically about his passion project catering unit in Alzey, Germany. Through the project, employees can at home: Hensgen builds a house that enables him to live self-sufficiently with a “smarthome optimize their workflow and save not only paper, but a lot of energy. control”, a photovoltaic system, a buffer storage and a hot water tank for the heating system. Hensgen emphasizes that, this way, Evertaste gets the best of both worlds: “We are
#Environment streamlining our processes which has a positive effect on the environment, our effectiveness and our business as a whole.”
12 LSG Group | Environment We are streamlining our processes, which has a positive effect on the environment, our effectiveness and our business as a whole
On the computer, each area supervisor available to them. Having an overview of all can assign the individual orders to the the data in one central location creates a stations. The program can be used, for sort of digital blueprint for our employees. Hensgen during the transition to paperless instance, to unpack orders collectively. One example would be three different Looking ahead to a colorful future menus that all include broccoli but were As soon as a set of goods arrives in the on different pages of the printout. Now, unpacking area, the employees can look with the digitized system, individuals can it up on the screen and see a picture that search through all of the data and have they can then compare to the delivery. Ensuring a smooth rollout only one of the three unpacking stations the broccoli for the three menus unpacked Then, scanning a 3D code, which replaces Hensgen and his team scheduled an will ensure that they don’t have to interrupt at the same time, saving a lot of time and having to scan four 2D barcodes, records optimization phase for the fi rst week of the the daily production. “That will give us the effort. At the same time, the unpackers the best-before date, batch number, launch. The challenge was to presort the chance to quickly improve the program can get an overview of how much of their original batch and date of receipt. That data and turn it into a clear and structured and implement any feedback before giving quota they have unpacked at any time of means that just one scan provides all overview that helps everyone work more the green light to deploying it in the rest of their day or how many orders they have of the necessary information. Hensgen effectively. To start, running the program at the stations,” concludes Hensgen. executed at each unpacking station. Up estimates that the switch from 2D to 3D to now, this information had not been codes will save 110,000 labels per year.
100% of cooling gases used in Latin America are environmentally friendly
Our São Paulo team sowed seeds for 6,700 We helped an airline reuse plants during their 10 million stock items and ‘environmental week’ save 150 tons of waste
14 LSG Group | Environment Magnolia had no drive – she had no without a fi xed income. Since she always motivation to get up in the morning liked to bake, she tried to earn some because she had no job, expectations, extra money by selling birthday cakes. plans, dreams or prospects. After fi nishing “At the time, cooking and baking was This is Magnolia, school, Magnolia had looked for a job for just one way to support my family,” she from Guarulhos, Brazil several years but to no avail. This is not adds. “I would never have believed that uncommon in the megacity of Guarulhos, the training at LSG Sky Chefs would give which directly borders São Paulo. Together me the opportunity to make it part of my with her 61-year-old grandmother, the profession and that it would become my now 20-year-old lived in a one-bedroom passion.” apartment, which she could hardly pay for
A wide range of training Everything changed for Magnolia the day her sister told her about the advertisement for the project. Immediately she realized, “that’s where I belong.” Broadening Horizons, as the program is called, not only allows 30 disadvantaged young people aged between 17 and 22 from communities around São Paulo Airport (Guarulhos) to train as bakers or confectioners, it can open opportunities for them in the general labor market. “It is also custom-made to fulfi ll the need for skilled production workers and provides all students with a skill set that qualifi es them for ample employment within the food-service industry,” explains Katrin Dalibor, LSG Group’s Director of Business and Strategy Development and Communication for Latin America.
A reason to get Our colleagues in Brazil up in the morning organized a Christmas spirit event for 1,000 Magnolia completed her apprenticeship as baker and confectioner children suffering through the “Broadening Horizons” project in Brazil. Thanks to the from cancer experience, she now has a renewed purpose in life.
#Community
16 LSG Group | Community She’s the pride of her family Team work makes the dream work A support network for the students Magnolia graduated fourth in her class: LSG Sky Chefs employees designed the “The trainees faced many diffi culties along “My grandmother was so proud during project in collaboration with the Lufthansa the way, but today they can dream bigger,” the graduation ceremony. She had never Group’s Help Alliance. It includes courses says Mauricio Valdivino, LSG Group’s imagined that one of us would ever ranging from the basics of management, Communication Coordinator in Latin get the chance to complete a proper law, communication, entrepreneurship and America. He has been involved since it all apprenticeship.” The young woman has nutrition to practical modules on hygiene, started in February 2017. Because times big plans for the future. “I want to gain work safety, handling appliances, reading can get tough for people like Magnolia, a more experience and maybe become self- recipes and cooking. The apprenticeship mentoring program was also established employed at some point.” With the training, takes half a year to complete. LSG based on corporate volunteering, in discipline and motivation also found their Sky Chefs provides the ingredients for order to ensure that students continued way into Magnolia’s life: “I’m happy and the practical training, a kitchen and its to attend classes by offering them all of grateful to fi nally have something worth appliances. Help Alliance’s funds cover the necessary support. “This project getting up for in the morning.” the students’ transportation to school, changed the lives of many students who, The fi rst-year apprentices at the LSG Sky Chefs along with the teachers’ salaries. “The before Broadening Horizons, had no future facility in Guarulhos fact that the project also covered the cost prospects,” Mauricio adds. “Today, most of the bus to work made it possible for of them are employed at our company and me to participate in the fi rst place,” says many support their families fi nancially. Magnolia. “Otherwise, I wouldn’t So, this is very gratifying.” have been able to afford it.” The employees' collective effort to drink from reusable cups I would never have believed that the training at LSG Sky Chefs at work saved $9,000 would give me the opportunity to make it part of my profession and that it would become my passion
1,339 employees About 2,160 lives were potentially participated in disability saved with the donations of 539 awareness training of our colleagues over 5 years
18 LSG Group | Community Broadening Horizons Second Edition
When does it take place? In June Where does it take place? São Paolo, Brazil
Who is involved? The LSG Sky Chefs facilities in São Paolo, Lufthansa‘s help alliance and 30 participants between the ages of 17 and 22 Outlook who currently live in socially vulnerable situations in the vicinity of the LSG Sky Chefs unit in Guarulhos.
What is it about? Over the course of six months, the participants receive about 400 hours of technical training in cooking, hygiene, nutrition and much more, including hands-on classes. This training can lead to long-term job prospects. In 2019, we are working on refining our approach to Corporate Responsibility (CR) in order to make it stronger and more structured. The four initiatives What makes it special? Young people from disadvantaged backgrounds have the opportunity to receive practical training in an in-demand presented in this report are examples of projects developed by the expert trade at no cost to themselves. brands under the LSG Group. But there are also descriptions of changes at the organizational level, as well as other new and ongoing projects.
The biggest change the company has experienced so far in terms CR is that it has now become embedded at the executive level. Erdmann Rauer explains: “It was very important for the Executive Board to embed CR at the executive level so that we could ensure that our people get involved and contribute to solving pressing issues Winter Drive that relate to our fields of expertise. In order to accomplish that, we have to bring our experts together.” Just like the CR slogan, “Local opportunities. Global impact.” When does it take place? June – October Where does it take place? Buenos Aires (Argentina), Rio de Janeiro and Sao emphasizes, there are many communities within the LSG Group all around the world Paolo (Brazil) that work on contributing to positive changes. Coordinating and connecting these communities, is Mr. Nils Taubert, Head of Global Quality and Process Management, Who is involved? Employees at the three facilities, FundaciónSi and the Brazilian Red Cross and Assistant Manager to the CEO. He is responsible for further developing the topic What is it about? With the cold season coming, the teams set out to collect winter clothing for adults and children. They either distribute of CR at the LSG Group and linking groups of engaged employees. “My passion them themselves to low-income families through a makeshift distribution center or give them to organizations that can deliver them to is to bring those smaller communities together and develop a network that allows people in need. them to learn from each other and exchange knowledge,” he says. “Developments What makes it special? The project brings employees together with a single goal in mind: helping others. in sustainability are faster than ever, and I am passionate to participate, as the LSG Group has so many experiences and activities to share.”
The company’s CR Community and network at large are poised to advance current CR efforts across the LSG Group, make it a more prominent topic within the corporate structure and spark ideas for new projects. Everyone involved in the CR Community will be able to bring forward their creativeness and support projects, thereby nurturing a CR culture that can permeate the entire Group. Holistic Agribusiness Solution Training #Outlook When does it take place? September 2019 – March 2020 Where does it take place? Gambia
Who is involved? Trainees from the LSG Group and the Lufthansa Group and 40 young, unemployed Gambians who were returned to their homeland after attempting to migrate.
What is it about? The 40 Gambians participate in a two-year work and education program. The LSG Group’s trainees contribute in pairs by teaching modules of about 10 to 15 hours about the entrepreneurial side of agriculture. This collaboration between the Sabab Lou- Foundation and the help alliance aims to give the apprentices long-term prospects in agriculture.
What makes it special? Returned migrants receive support in rebuilding their lives through practical education.
20 LSG Group | Outlook The LSG Group exists to enable its customers to enrich the food and service experience of their passengers and consumers.
For airlines, train operators and convenience retail stores, the LSG Group offers a full spectrum of specialized products and services: A fully integrated range of offerings customized to provide the best solutions for their customers by bringing specific experts together.
Catering and Hospitality LSG Sky Chefs is the expert brand for classic culinary and hospitality solutions serving airlines and train customers. It offers solutions for complete catering programs, including full-tray menus, premium dining onboard, last-mile logisics, crew training, as well as lounge and hospitality services.
Equipment Solutions SPIRIANT is the expert brand for equipment and related logistics services for airlines and train customers. It offers a complete portfolio of products ranging from premium tableware, amenity kits and comfort items to onboard essentials for all classes, including crew and service items, such as galley equipment trolleys and trays.
The company has the insight and knowledge necessary to source, design and deliver a variety of products concept that meet its customers needs while contributing to building unique brand stories. SPIRIANT’s tagline, “Where inspiration meets performance” reflects this fact.
Packaged Products Evertaste is expert in packaged-products solutions and food components serving the three leading industries the company works for (airlines, trains and convenience retail). The packaged-product range covers the full spectrum of ready-to-eat offerings at any temperature. The packaging and meal components can be fully tailored to the customer’s needs. The offering also includes product brokerage and licensing.
Onboard Retail Retail inMotion (RiM) is the expert servicing airlines and train customers with proprietary products, services and technology for the travel industry. RiM’s offering includes the selection, procurement and distribution of expertly designed onboard-retail products, the complete management of buy- on-board programs and the end to end IT support of those programs through innovative proprietary software designed to maximize ancillary revenues and streamline onboard-retail programs.