Lufthansa : SASB Report 2023

Report 2023

SASB

lufthansagroup.com

lufthansagroup.com/en/responsibility

Sustainability Disclosure Topics & Accounting Metrics

Topic	SASB Code Accounting Metric		Lufthansa Group Response	Reference
GREENHOUSE	TR-AL-110a.1	Gross global Scope 1		Gross global Scope 1 emissions: 26.82 million		Sustainability Fact
GAS EMISSIONS		emissions		tonnes, (2022: 23,1 million tonnes), thereof 26.79		Sheet 2023
				million tonnes caused by flights of Lufthansa Group		p.3, 15, 20, 21
				aircraft.		Annual Report 2023
				Specific CO₂ emissions per tonne-kilometre were		(Combined non-
				reduced by 0,3% to 834 grammes (2022: 837		financial declaration)
				grammes).		p.87
				Specific CO₂ emissions per passenger-kilometre		Annual Report 2023
				were 1,8% lower than in the previous year at 88.4		(Sustainable
				grammes (2022: 90.0 grammes).		Development Goals
				The calculation of Lufthansa Group´s total Scope 1		(SDG) Index)
					p.311
				emissions is based on the Greenhouse Gas Protocol.
				The emissions factors used for the calculation of
				Scope 1 emissions (e.g., kerosene, gasoline, diesel,
				natural gas) are based on the DIN EN 16258.
				The emissions from flight operations are calculated
				on the basis of actual transport performance and
				hence on actual load factors and the actual absolute
				quantity of kerosene consumed in the reporting year.
				Transport performance is measured in tonne-
				kilometres. For passengers and their luggage, an

Topic

SASB Code Accounting Metric Lufthansa Group Response

Reference

GREENHOUSE TR-AL-110a.1

GAS EMISSIONS

average of 100 kilograms is the standard estimate;for freight, it is its scale weight.

Carbon dioxide (CO₂) emissions do not require special calculation methods, as they are generated in a fixed ratio to the quantity of kerosene burned. The combustion of one tonne of kerosene generates 3.15 tonnes of CO₂. This is the conversion factor which is also used by the EU Emissions Trading Scheme (EU-ETS, Regulation (EU) 2018/2066) in 2023.

The distances used in the calculations are great-circle distances.

The reduction in specific emissions in the Group fleet compared with the previous year was mainly due to an increase in the passenger load factor, changes in the route network, that resulted in a structural increase in average flight length. Longer routes typically create lower specific emissions because the emissions from take-offsand landings, which are higher than in-flightemissions, become less significant in overall terms as the flight distanceincreases.

By using Sustainable Aviation Fuel (SAF), Lufthansa Group was able to reduce climate-impactingemissions by a total of 43,628 tonnes in 2023. Of this amount, 39,195 metric tonnes were saved directly in the combustion of SAF (Scope 1), and

1

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic	SASB Code	Accounting Metric		Lufthansa Group Response	Reference
GREENHOUSE		TR-AL-110a.1				4,433 metric tonnes were saved in the upstream
				supply chain (production and transport, Scope 3) -
GAS EMISSIONS						both values refer to the comparison with the use of
						fossil kerosene. Consequently, the total emission
						reduction from the use of SAF remains almost
						identical in comparison to previous year.
						Scope 1 data according to GHG Protocol audited
						with reasonable assurance by Müller-BBM, Cert
						GmbH and to the requirements of ISO 14064-3.
		TR-AL-110a.2		Discussion of long-		The Lufthansa Group supports IATA's emission		Annual Report 2023
				term and short-term		reduction targets aimed at reducing net carbon		(Combined non-
				strategy or plan to		emissions to zero by 2050 (net zero target). All the		financial declaration)
				manage Scope 1		airlines of the Lufthansa Group are members of the		p.81
				emissions, emissions		Aviation Alliance Fit for 55, an alliance of European
				reduction targets, and		airlines and airports founded in 2022. The partners in
				an analysis of		the alliance have committed to the goal of carbon-
				performance against		neutral aviation by 2050 and have proposed
				those targets		competition-neutral solutions at the European level
						to achieve this.

In addition, the Lufthansa Group has joined the First Movers Coalition of the World Economic Forum. This initiative aims to use at least 5% SAF in 2030, with an emissions advantage of at least 85% compared to fossil fuel. These two aspects already represent a level of ambition which transcends the statutory obligations, since this 5% refers to the total fuel

2

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic

SASB Code Accounting Metric Lufthansa Group Response

Reference

GREENHOUSE TR-AL-110a.2

GAS EMISSIONS

requirements of the Lufthansa Group (not just fuel taken on board in Europe) and the emissionsadvantage of SAF required in the EU is just 65%.

To enable the continuous procurement of SAF on the spot market, up to USD 250 million has been released for the period up to 2026 by the ExecutiveBoard of Deutsche Lufthansa AG.

Lufthansa Group also defines its own expanded emission reduction targets

As befits its pioneering role in climate protection, the Lufthansa Group has defined its own carbon reduction targets which demonstrate an extra level of ambition. The Lufthansa Group's carbon emissions reduction target was successfully validated by the SBTi in the summer of 2022. The SBTi develops sector-specificcriteria for climate protection, applies these criteria in participating companies and validates the corresponding corporate targets. With its SBTi validation, the Lufthansa Group became the first airline group in Europe and is among the first three airlines worldwide with a scientifically profound CO₂ reduction target in line with the goals of the ParisAgreement of 2015.

Specifically and in accordance with the SBTi guidance, the Lufthansa Group has committed to reducing its carbon intensity, i.e. its carbon emissions

3

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic

SASB Code Accounting Metric Lufthansa Group Response

Reference

GREENHOUSE TR-AL-110a.2

GAS EMISSIONS

per transported tonne-kilometre (passenger and cargo), by 30.6% in the period from 2019 to 2030. This target may only be achieved by reducing fuel consumption or by substituting fossil fuel with SAF. Lufthansa Group is also reporting on the status of its CO₂ intensity reduction target, which came to 2.7%below base year 2019.

Over and above the reduction required by the SBTi targets, the Group aims to achieve its self-imposedtarget of cutting net carbon emissions in half by 2030 compared to 2019 by means of voluntary offsets. The Lufthansa Group aims to be carbon-neutral in 2050

From the Lufthansa Group's perspective, this science-basedreduction target is intended to provide a clearly defined path to future-proofgrowth. Lufthansa Group´s reduction path explains the plan to achieve this and how the business will developaccordingly.

4

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic

SASB Code Accounting Metric Lufthansa Group Response

Reference

GREENHOUSE TR-AL-110a.2

GAS EMISSIONS

Of the seven greenhouse gases listed in the Kyoto

Protocol, Lufthansa Group aircraft emits only CO₂.

Emission reduction targets are an element of long- term variable remuneration for the Executive Board of Deutsche Lufthansa AG. Within the scope of the long-termvariable remuneration of the Executive Board, the Supervisory Board regularly defines an environmental target as focus of the strategic and sustainability targets. The reduction of specific

Annual Report 2023 (Remuneration Report)

p.278ff.

Annual Report 2023 (Combined non- financial declaration) p.79, 80, 81, 82

5

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic

SASB Code Accounting Metric Lufthansa Group Response

Reference

GREENHOUSE TR-AL-110a.2

GAS EMISSIONS

carbon emissions was defined for the long-term variable remuneration for the 2023 financial year ("long-term incentive"/ LTI 2023). This was derived from the current corporate strategy, according to which the reduction targets are based on the indicator CO₂ per tonne-kilometre transported, in line with the target system for the validated SBTi targets. This environmental target has a weighting of 20% in the assessment of the level of target achievement forthe LTI 2023.

In addition, processes on the ground, such as real estate management and handling processes on the airport apron, also produce carbon emissions. In its efforts to reduce these emissions, the Lufthansa Group focuses on three areas of action: procuring and using renewable energy, increasing energy efficiency in building operations, and achieving carbon-neutralground mobility. The Group aims to reach the milestone of switching to carbon-neutralmobility on the ground in its home markets by 2030. In the reporting year, organisational structures were established to lay the foundations for developing an overall concept to reduce the carbon emissions associated with ground processes and forimplementing control mechanisms.

Furthermore, since 2019, the Lufthansa Group has been offsetting the carbon emissions from all of its

Annual Report 2023 (Sustainable Development Goals (SDG) Index) p.311

Annual Report 2023 (Combined non- financial declaration) p.85-87

6

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic

SASB Code Accounting Metric Lufthansa Group Response

Reference

GREENHOUSE TR-AL-110a.2

GAS EMISSIONS

employees' duty flights globally. In 2023, 74,545tonnes of CO₂ were compensated.

For more details on emissions KPI´s, measures and achievements for 2023 see Annual Report p.82ffand/or the Sustainability Factsheet 2023 p. 3-21

TR-AL-110a.3	(1) Total fuel	8.451 million tonnes or 373 million gigajoules
	consumed
	(2) percentage	0,15%

alternative

(By using Sustainable Aviation Fuel (SAF) 43,628 tonnes CO₂ were reduced in the year 2023. Of thisamount, 39,195 tonnes were accounted for by direct savings in the combustion of SAF (Scope 1) and 4,433 tonnes by savings in the upstream supplychain (production and transport, Scope 3))

Sustainability Fact Sheet 2023

p.3

Sustainability Fact Sheet 2023

p.9, 15

(3) percentage

0,15%

sustainable

(By using Sustainable Aviation Fuel (SAF) 43,628 tonnes CO₂ were reduced in the year 2023. Of this amount, 39,195 tonnes were accounted for by direct savings in the combustion of SAF (Scope 1) and 4,433 tonnes by savings in the upstream supplychain (production and transport, Scope 3))

Sustainability Fact Sheet 2023

p.9, 15

7

LUFTHANSA GROUP SASB Standards Disclosure Report 2023

Topic	SASB Code	Accounting Metric	Lufthansa Group Response	Reference
LABOR		TR-AL-310a.1	Percentage of active	Of 63,176	Lufthansa Group employees in Germany		Annual Report 2023
PRACTICES			workforce covered	(as of 31	December 2023), some 76% benefit		(Combined non-
			under collective	directly from collective bargaining arrangements. The		financial declaration)
			bargaining agreements	remaining 24% are largely manager and non- pay-		p.101
				scale employees in senior positions.
				98%	employees of Austrian Airlines in Europe and		Sustainability Fact
				87%	employees of SWISS benefit from collective		Sheet 2023
				bargaining agreements.		p.3

	TR-AL-310a.2	(1) Number of work		The Pilots Union "Vereinigung Cockpit" called for a
		stoppages		5h strike at the end of December in Germany.
		(2) Total days idle		0 days

COMPETITIVE	TR-AL-520a.1	Total amount of	In 2023, no fines were imposed on Lufthansa Group
BEHAVIOR		monetary losses as a	due to legal proceedings associated with
		result of legal	anticompetitive behavior.

proceedings associated with anticompetitive behavior regulations

8

LUFTHANSA GROUP SASB Standards Disclosure Report 2023