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 CR report. 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 report 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.