togetherO P E N & C O M M I T T E DCorporate socialresponsibility report2010-11
KEY FIGURES102,012FULL-TIMEEQUIVALENT WORKFORCE593AIRCRAFT IN OPERATIONEurope123 DESTINATIONS244DESTINATIONSIN 105 COUNTRIESNorthAmerica23 PASSENGERS CARRIEDCaribbean11 DESTINATIONSAfrica & Middle %SEAT LOAD FACTOREast50 DESTINATIONSIndian DESTINATIONSMILLION TONS AmericaOF CARGO CARRIED11 DESTINATIONSBREAKDOWN OF THE GROUP’S WORKFORCEBREAKDOWN OF PASSENGER REVENUE (IN FULL TIME EQUIVALENT, 31 DECEMBER 2010)BY DESTINATION, 2010-1135% 18%29% The NetherlandsEuropeAsia / Pacifi c2% Africa - Middle East17%2% Asia - Pacifi cNorth America10% Rest of the world4% Europe1% North America9% South America1% South America7% Caribean & 61% FranceIndian Ocean15% Africa & the Middle EastAir France-KLM publishes an annual Corporate Social Responsibility report. The information in this report relates to the 2010-11 fi nancial year, ststarted on 1 April, 2010 and ended on 31 March, 2011. Where information relates to a different time frame, this is explicitly France-KLM CSR report 2010-11
INDEXForeword4Challenging dynamics in the air transport industry6Our appr12oach to corporate social responsabilityOur fi ve key issuesCombating climate change22Minimizing our environmental impacts 30AsiaBuilding a sustainable relationship with our customers38 Pacifi cPromoting a responsible human resources policy 4622 DESTINATIONSContributing to local development 54Annexes 62Indicators and methods66final part of the report you will find our indicators is further given in the tables How to read this reportkey performance indicators, details of on pages 67 and 69, in reference to the Four sectionsour reporting methodology and more NRE (‘New Business Regulations’) Act detailed information about our fleet and in force in first section is designed to help you stakeholder dialogue. understand the sector with its issues, Stakeholder interviewschallenges, current and future global Vision and joint commitmentsIn this report the Group wants to high-developments. It then describes the Each key issue written in this report light the importance of stakeholder profile of the Air France-KLM group with starts with the vision of the Group, fol-engagement through interviews with the Corporate Social Responsibility (CSR) lowed by our joint commitments and an internal and external stakeholder strategy and organization. You also read the management indicators deployed byfor each key issue. Each stakeholder is about the Groups governance, public both Air France and KLM. After this given the opportunity to express his/her positions and the way how we engage part, further details are described on appreciation on how the Group deals with our different stakeholders. The third the approach and achievements made with the relevant CSR topics and to be section explains our 5 CSR key issues throughout the year. More extensive infor-in dialogue about further challenges and and the way we deal with them. In the mation on the social and environmental improvements in different
We are determinedto succeed in a responsibleand sustainable wayAfter two diffi cult years, Air France-KLM has achieved a remarkable turnaround, well beyond the objective we set ourselves to break-even in this fi nancial year. Like other airlines, the Group is benefi tting from the global recovery, a recovery which hasnevertheless been marked over the course of the year by a series of crises: the volcanic eruption in Iceland, the geopolitical situation in the Middle East and Africa and the earth-quake and tsunami in to an ambitious recovery plan, a high level of responsiveness and by adapting its products, Air France-KLM is on the road to growth again for its Passenger, Cargo and Maintenance businesses. Furthermore, we have mobilised all of our resources and we continued to stand by our CSR such a turnaround would not have been possible without mobilising the entire Group. 2010-11 saw the adoption of Air France-KLM’s ‘Embark’ company vision, which lays out the Group’s ambition ‘to be the leader in globalised sustainable air transport’ and details its objectives and commitments. The pillars of the ‘Embark’ vision include expanding the Group’s three businesses, strengthening the position of its network and brands, providing customers with a quality human aspect, service and operational performance, promoting the Group’s values among employees, setting the example for CSR and strengthening its economic performance. Bases for success are our Group values: open to others and to the world in the face of the challenge posed by globalisation; committed alongside our partners to serving our customers; together in solidarity bundling our complimentary strengths and energy. In terms of sustainable development we continue to further integrate CSR in our business and operation. What really counts in this is proven action, which can be found in this with the challenge of climate change, we are making progress in reducing our CO emissions thanks to the ongoing modernisation of our fl eet. We continue our 2active commitment to developing and using sustainable biofuels. At the same time, the 4Air France-KLM CSR report 2010-11
efforts we have encouraged within our industry to bring about international regulation, have achieved an unprecedented step forward with the unanimously adopted resolution by the Member States of the in controlling our other environmental impacts takes place continuously such as reducing our noise hindrance and emissions which impact air quality or in terms of preserving resources. Therefore we continue to invest and innovate in more effi cient planes and procedures, electric vehicles, new buildings which meet demanding environ-mental standards or win and retain customers whose expectations are constantly changing, our two airlines are using new technologies. To develop our customer service culture we have put in place multiple and personalised products, in order to better respond to the diversity of our customers and to make a the diffi culties faced, Air France-KLM has maintained a policy of internal social cohesion, solidarity and social dialogue which is vital to recovery. The Group has been able to protect the jobs of its employeesand its own know-how, while at the sametime addressing the challenges of change and adaptations to global developments. Our Group is continuing to contribute to the development of the areas around our hubs and destinations by creating economic and social value. For example by looking for new business opportunities, training new generations, working with vulnerable com-munities, supporting humanitarian and development projects and encouraging employee a complex world we are determined to succeed in a responsible and sustainable way, according to the commitment we made when we signed the United Nations Global -Henri GourgeonPeter HartmanChief Executive Offi cer of Air France-KLM President and Chief Executive Offi cer of KLMChief Executive Offi cer of Air FranceForeword5
Challenging dynamicsin the air transport industryAs a leader in air transport, Air France-KLM adresses the challenges faced by a sector that is essential to the global economy, but which is strongly affected by global fi nancial, geopolitical, meteorological events and epidemics. The Group plays a part in contributing to the global economy, whilst having to withstand its fl uctuations, deal with rising oil prices, adapt to rapidly changing patterns in demand, and above all maintain the safety of fl 2009 the Group has suffered major losses. It would not have been possible for the Group to maintain its position and standards without resolute and sustainable cost reduction and changes to its organisation, practices and products. Today, the restruc-turing of the products offered to its passengers, the strengthening of the long-haul network, the deep-rooted changes made in the cargo business and the development of maintenance services are bearing fruit. 6Air France-KLM CSR report 2010-11
Air France-KLM: one Group, two companies, three businessestransport and aviation maintenance services, for its own fl eet and The Group is made up of a single holding company and two airlines, those of other airlines. An overview of the Group’s main subsidiaries Air France and KLM, each of which retains its own brand and can be found on page . Its three main businesses are passenger transport, cargo OUR BASIC STRENGTHSA strong and balanced networkA strong and global allianceThe Group serves the largest network between Europe and the rest Air France and KLM are active members of the SkyTeam alliance, of the world, built around its two coordinated hubs, Roissy-CDG and the second largest alliance in the world by market share. This rapidly Amsterdam-Schiphol, also called a ‘dual hub system’ where smaller expanding alliance serves 898 destinations in 169 countries. By opti-fl ows of European and regional traffi c connect with intercontinental mising synergies between each of its members, SkyTeam strengthens fl ights. Thanks to its geographical locations, the Group plays a key role the Group’s product range in terms of its network and the services it in the growth of commerce and in European to its customers, such as linked loyalty strength of the Air France-KLM dual hub system lies in its large portfolio of long-haul destinations with only limited overlap between An effi cient fl eetboth hubs in their total offer: 70% of long-haul destinations and 60% of medium-haul destinations are served by only one of the two car-riers. Where there is overlap, there is either a very large market or a The Group operates one of the youngest and most modern fl eets in double time channel, starting the journey from one hub and returning Europe, with 593 aircraft with an average age of years. The fl eet via the other gives the passenger many more travel options. The Group is known for its fuel effi ciency and optimal network fi t, representing a and its partners are active across all continents and have a balanced key resource for the Group’s sustainable development. For more fl eet network, as no single market represents more than a third of turnover. information, see page dynamics in the air transport industry7
AIR TRANSPORT ISSUES AND OUR CHALLENGESContributing to the global economy, withstanding its fl uctuationsAir transport is one of the drivers of the global economy, which it Air transport was hit hard by the worst downturn in its history in supports by promoting growth in trade and meeting the demand for 2009, with a 12% decline in passenger numbers and a 25% decline mobility. The industry also suffers directly, and sometimes badly, from in cargo at the height of the crisis. 2010 saw a brief improvement the consequences of international economic fl uctuations. With a pre-before another slow-down in early 2011. As a refl ection of the global sence in all continents, air transport is always one of the fi rst sectors economy, the sector’s recovery is proving to be slow and uneven to be affected by events: from wars and epidemics to hurricanes and across the world’s major regions, furthermore, competition is intense margins are with very specifi c constraintsVolatility and the long-term upward trend of oil prices weigh heavily Over the past ten years the cost of fuel as a percentage of total on the results of airlines. According to the International Air Transport air transport costs has risen from 13% to 29%, with every dollar Association (IATA), the recovery in world traffi c recorded in 2010 is increase in the price of oil resulting in an additional cost of $ billion under threat from soaring oil prices seen since the start of 2011. for the that aim to reduce air transport’s impact on climate change have also resulted in additional burdens. The sector generates around 2% of total man-made CO emissions, a proportion FOCUS2often overestimated by the public at large, nevertheless airlines still THE GROUP’S MOBILISATION IN JAPANneed to play their part in the fi ght against climate change, which Air France and KLM have close, longstanding ties with Japan, the is why they will be integrated into the European Emissions Trading two airlines serve Tokyo and Osaka with 38 weekly fl ights. Since the Scheme (EU-ETS) from 2012. However, further steps are necessary beginning of the catastrophe that hit Japan on the 11th of March to address aviation emissions globally and accomplish a level playing 2011, teams in each airline were mobilised to ascertain how to safely fi eld internationally in order that the same rules apply to all fl ight operations to and from Tokyo, as well as to adapt capacity to meet strong demand for travel on the route and put in Airlines face ever-stricter regulations, particularly those concerning place special commercial conditions to suit the France and KLM monitored the situation throughout the consumer protection and security, which in turn mean more catastrophe thanks to their respective crisis management systems. restrictions for customers and higher costs for carriers. Unlike rail Measures put in place jointly by Flight operations, the combined transport, aviation funds all of its own infrastructure costs, from stations organisation in Japan and the Operations Control Centres ground to fl ight. It also pays for security, safety and soundproofi ng have ensured the safety of services to Tokyo and Osaka. Although (40 million Euros for Air France and KLM) measures for communities direct fl ights were maintained from Osaka, Air France fl ights from living close to went via Seoul, in order to ensure maximum possible fl exibility, should the situation in Tokyo deteriorate. KLM operated directly to Tokyo with an intermediate stop in Osaka on the return leg for the Operating routes in regions of the world which face political same reason. Schedules to and from Osaka remained unchanged uncertainty or dealing with unpredictable natural events requires for both Air France and exibility and an ability to deal with fast changing environments, to offer appropriate solutions and continue providing quality to new global developmentsThe world’s air transport is increasingly globalised and is now globally, mainly driven by emerging countries, and an average of 1organised around three broad alliances which bring together the main % in Europe, creating new travel opportunities. Also demographic European, American and Asian airlines. Various forms of international change, and in particular ageing populations, will lead to new partnerships, such as joint ventures, mergers and equity acquisitions consumer trends in the airline intensifying this economic crisis has profoundly changed consumer behaviour, The challenge for air transport is to consolidate its position and with price considerations becoming a more important choice factor seek out new growth opportunities in expanding markets. Annual than ever before. Although the post-crisis situation is increasing the 1passenger growth until 2029 is forecast at an average of % importance of other elements such as frequency, service, loyalty 1 Source: Boeing Market update - February 20118Air France-KLM CSR report 2010-11
tools and transparency as decision factors, airlines must meetWhen it comes to global climate change, reducing CO emissions 2expectations by adapting their business models and product ranges. continues to be an important challenge; a shift towards low carbon Restructuring will impact on all three aviation business lines; new fuels is crucial. Although good progress is being made on technical products for passengers, reducing the share of all-cargo aircraft to certifi cation, the availability of sustainable biofuels remains a challenge. transport goods and making changes to maintenance to enable it to An integral industry approach is necessary including the right legisla-compete with new and SAFETY AND SECURITY: OUR ABSOLUTE PRIORITIESEnsuring the safety of air transport on the ground and in the airSafety is the main requirement for all customers and staff and Through their Safety Management System (SMS), both airlines ensure an absolute priority for Air France-KLM. Flight safety depends continuous monitoring, analysis and management of security risks. This not only on equipment and procedures, but above all on the initiative involves all employees (fl ight, ground, technical & commercial). professionalism, commitment and attention of all of employees. To ensure continuous improvement is made, members of staff are This is why both airlines go beyond the relevant national, European encouraged to report any incident which could have an impact on and international regulations and are continuing their IOSA (IATA safety, with no risk of sanction for the person who signals the incident. Operational Safety Audit) registration by the IATA, which covers all Furthermore, the Group constantly adapts and updates its training operational management and control systems that contribute to programmes in order to ensure the highest levels of competence among safety staff. Crisis management prevention plans are in effect at all of the KLM is actively involved in several initiatives led by the Dutch Group’s destinations and simulation exercises are carried out several government to strengthen safety regulations around Schiphol airport, times per to adopt stricter regulations. Furthermore, KLM is participating in setting up additional government policy regarding high obstacles in the Schiphol area to ensure that obstacle density is not increased and thus fl ight safety risks are ASSESSMENT OF AIR FRANCE FLIGHT SAFETYIn December 2009, Air France launched an external evaluation of its RIO-PARIS ACIDENT: A DECISIVE BREAKTHROUGHfl ight safety. The assessment was carried out by eight independent, recognised, international experts and examined all internal stSince the accident which occurred on the 1 of June 2009 on operations, decision-making processes and procedures that could its Rio to Paris fl ight, Air France has done all it can to help the have an impact on fl ight safety. Following the study, which lasted for the whole of 2010, the experts presented 35 recommendations to families of missing passengers and crew by supporting efforts Air France, as part of a continuous improvement process involving to fi nd the aircraft in the Atlantic Ocean. At the beginning of fl ight safety carried out by the 2011 the two fl ight recorders of the A330 fl ight were fi nally recovered following a particularly diffi cult operation,Air France promptly implemented the fi rst experts’ recommendations; accomplished thanks to the determination shown by authori-these included for example the creation of a fl ight safety committee ties, Airbus and Air France. within Air France’s Board of Directors, and by launching an in fl ight observation initiative, LOSA (Line Operations Safety Audit), a fi rst Analysis of the data from these recorders should allow inves-among major European airlinestigators to reconstruct precisely what happened on the fl ight and determine the causes of the accident. Not only is this is a legitimate demand from the families, it is also vital to the avia-tion community in order to prevent another such a tragedy. Air France-KLM’s specifi c skills in managing passenger fl ows, fl ight Integrating security into allroutes, and its worldwide organisation enables it to play an important of our operationsrole in the work of international authorities responsible for risk prevention. The Group has participated in a working group of IATA, Faced with the threat of terrorism and criminal activity, the GroupInternational Civil Aviation Organisation (ICAO) and the World Customs Organisation (WCO) to standardise passengers’ personal data required is continuing with heightened security procedures, which aim to ensure the protection of its customers, staff and assets. Thisby Governments. Air France and KLM also play a leading role through operation includes various measures such as inspections of airtheir leadership in IATA Security Expert Group in fostering the concept craft, inspecting baggage, random checks on personnel, and checks onof Checkpoint of the Future, which emphasizes the need of better use passenger boarding and disembarking. These procedures, which arof intelligence and information in the screening process in order to e detect bad intent rather than bad objects by deployment of behavioural subject to strict regulation, are carried out with a constant concern for the privacy of , passenger differentiation and introducing unpredictability. Challenging dynamics in the air transport industry9
Air France-KLM is working directly with intelligence agencies, and 100 countries and 200 cities across the world. In addition, 50 experts several other governmental agencies on the implementation of are charged with ensuring the security of fl ights on a daily basis security measures in the overall network. Air France for example, is and when necessary putting in place additional security measures working directly with the gendarmerie du transport aérien, la police at certain destinations. In 2010, KLM placed particular emphasis on aux frontières (French Air Transport Police). Air France is educating security issues through a monthly awareness campaign amongst and training all of its employees on these issues in order to guarantee its best possible protection for its customers and staff in almost POSITIONING THE GROUP IN THE WORLD OF TOMORROWFinancial results 2010-11The 2010-11 fi nancial year was marked by a positive result from revenues up by %, staging a strong recovery despite numerous current operations of €122 million versus a loss of € billion exceptional events. The Group carried million passengers and at March 31, 2010. This improvement was due to the strategic the passenger business saw a % increase in traffi c for stable measures implemented in 2009-10 principally in the passenger and capacity (%).cargo businesses, and to the economic recovery. Net income-Group The second of the Group’s businesses, Cargo, returned to growth part stood at a positive €613 million at March 31, 2011, after the and profi tability earlier than expected, with traffi c up by % for billion capital gain on the sale of the shareholding in unchanged capacity (%). Aircraft maintenance’s revenue In the 2010-11 fi nancial year, Air France-KLM’s turnover stood at was up by % due to high value-added dynamic activities such as € billion (+%). The passenger business was dynamic, with engine and component development at Air France-KLMThe comprehensive restructuring which has been ongoing since 2009 Aside from resuming or increasing the number of fl ights, other factors is beginning to bear fruit, both in passenger and cargo transport. are also contributing to strengthen the Group’s competitiveness, such Employees’ efforts to adapt and structural changes have resulted in as the rolling out of new destinations, the launch of innovative techno-an improvement in unit revenues and a reduction in costs, excluding logies aimed at customers and the signature of partnerships and joint fuel. Adjusting capacity to match demand has enabled to maintain ventures such as the agreement between Air France-KLM and Delta high load factors of over 80% on fl . Restructuring short and medium haul productsStreamlining Cargo To meet the needs of European point-to-point passengers and to As the world’s leading international air cargo operator, the Group was connect Europe to the rest of the world through the effi ciency and hit hard during the economic crisis. By reducing its cargo fl eet from 25 complimentary nature of its two hubs, the Group has adapted its offer to 14 aircrafts, it has restructured its business to decrease its exposure in terms of timetabling, services and fare structure, and has rolled out to economic cycles. The Group’s cargo offer is now based upon more a series of initiatives to reduce its unit cient use of the entire network and the number of destinations served, and passenger and combi aircraft cargo transporting capacity. Developing a solid long-haul networkThis strategic reorganisation requires comprehensive changes to To embark upon the road to recovery, the Group is expanding its long-operational processes and commercial policy. In 2010-11, the share of haul business, which represents the cornerstone of its growth and passenger and combi aircraft used to transport cargo represents 67%, relies upon the use of a more effi cient fl eet with the arrival of Airbus against 33% for all-cargo aircraft. In 2007-08, these fi gures stood at A380s, the densifi cation of Boeing 777-200s, the choice of Airbus 54% and 46% -300s and at KLM the conversion of two combis (mixed cargo-passenger use aircraft) into full passenger effi cient maintenance servicesSafeguarding its leading position in aviation maintenance in a highly competitive environment requires the Group to meet the expectations of its customers with speed and fl exibility. This is why Air France Industries and KLM Engineering & Maintenance have developed a worldwide maintenance network based on the know-how developed in Paris and France-KLM CSR report 2010-11
Outlook for 2011Breakdown of revenue by business lineThe short and long-term actions implemented by Air France-KLM should enable it to better manage the post-crisis situation, and conti-6% other businesses nue to anticipate external uncertainties. In all this, investing in sustai-4%(catering, charters, etc.) aviation maintenance nability remains key by further integrating CSR into the business and operations. This enables the Group to grow in a sustainable way and to be prepared for the % cargo 77% passenger transport DISTRIBUTION OF THE GROUP’S REVENUE The Group’s results are distributed among its main stakeholders, airports. In 2010-11 taxes stood at €2 billion for Air such as employees, suppliers, shareholders public authorities and France-KLM. These are used to fund government duties, including local communities. The table below gives a summary of the fl ow of running civil aviation, security expenses, and the development Group earnings to various stakeholders in € airports, fi re-fi ghting and salvage, preventing bird strikes, On top of the price of tickets, customers pay numerous taxes which environmental checks, as well as specifi c taxes including money airlines collect on behalf of governments, supervisory bodies and collected in France for the ‘Solidarity Fund for Development’.Disposal of aircraft and financial assets IndustrialAeronautical Fleet€1,184 m€ € m€1,146 mInvestments and developmentCash flowfromoperations Loan€1,352 m€900 mNon profitSponsorshipFuel suppliers Other suppliers Banks(including €5,720 mFleet operating leases environmental sponsorship), €831 m€10 mOther expenses €6,257 mREV: €23,615 mRepaymentGross Interest of debt €1,195 mexpenses €371 mPassengersCargoMaintenanceTaxes on tickets(not included in turnover)€2,000 mEmployeesAirportsAir traffic controlState & local authoritiesShareholdersWagesAirport fees En route charges Taxes & feesDividends€7,333 m€742 m€1,005 m€198 m€3 mAirportsState& local authoritiesChallenging dynamics in the air transport industry11
Our approach to corporate social responsibilityAware of its responsibilities and the issues affecting the shared growth of its business, the Air France-KLMGroup has chosen to place CSR at the heart of its business strategy and throughout its organisation, thereby giving an important role to dialogue with its stakeholders. Fulfi lling the Group’s corporate responsibility and ensuring the legitimacy of its operations meansachieving profi table growth, acting decisively to limit the negative impact of its activities, protecting the environment, providing customers with innovative products and ever more personalised services and creating social value. To meet these challenges, Air France-KLM’s approach to CSR is based on fi ve current key issues, and ensures collaboration with its partners in the supply on its CSR achievements, Air France-KLM has been recognised by various non-fi nancial ratingagencies as a frontrunner in France-KLM CSR report 2010-11
Our visionBy mobilising all of the Group’s resources and employees and through a step by step approach,we set the standard in terms of CSR and strive to remain frontrunner in the airline commitmentsOur CSR commitment is based on working in line • The Group is a signatory of the United Nations with fundamental rights, as contained in international Global Compact and is committed to respecting principles:and promoting its ten principles in the areas of • The Universal Declaration of Human Rights;human rights, labour standards, the environment • The International Labour Organization’s (ILO)and the fi ght against corruption; Declaration on Fundamental Principles and • In France, Air France is a signatory of the Diversity Rights at Work;Charter, the Charter for Corporate Commitment • The Organisation for Economic Cooperation and to equal opportunities in the State educational Development’s (OECD) guiding principles; system, and the Good Parenting Charter;• In 2010 in The Netherlands, KLM signed theThe Group’s CSR approach is underlined by the Sustainable Supply and Corporate Responsibility signing of public commitments at both international Manifesto, which aims to support the market for and national products and services and to encou-rage other businesses and suppliers to commit to this approach to corporate social responsibility13
OUR CSR STRATEGYSetting the standardsOur CSR ambition is laid out in the Air France-KLM Corporate Social by the Group’s European Works Council. Several in-house charters Responsibility Statement of 2006, in which the Group outlined its supplement these commitments, including the Air France-KLM commitments to environmental protection, social equity and local Sustainable Development Charter for Group suppliers, the KLM Code development. The CSR statement was strengthened in 2007 with the of Conduct, the Anti-harassment Charter and the Block Release adoption of the Climate Plan (see page 23) and then in 2008 with Training Charter at Air France. the signature of the Social Rights and Ethics Charter (see page 51) Integrated at every levelThe Group intends to make sustainability an integral part of its At KLM Executive level a CSR council has been established, which operations, by integrating CSR within all divisions and at all levels. The meets every quarter. This Council is made up of several executives ‘Embark’ plan was presented at the end of 2010 and lays out and senior managers to give advice on CSR policy to the Board of the Group’s medium term strategic vision, putting CSR and our Directors and Executive to stakeholders at the heart of its priorities. Air France and KLM have built CSR indicators into senior management At executive management level at Air France the Executive Vice targets: occupational safety performance for operations managers at President, who is a member of the Executive Committee, is responsible Air France, and CSR targets in the variable remuneration of all senior for CSR management. At KLM this is guaranteed at Board level. The executives at KLM. Air France and KLM CSR departments are responsible for policy and Finally, the risks and challenges related to CSR are integrated into deployment in each organisation, from senior management priorities to the Group’s three-year strategic plan. The internal audit division has implementation via unit action plans. carried out several audits in the fi eld of CSR, such as safety in the workplace, training, Air France and KLM CO calculators and the risk 2At Group level a strategic CSR meeting with executives of both airlines of confl icts of interest in the purchasing department. takes place twice a year. CSR governance and implementation are explained in the organisa-tional diagram below. At Group levelBoard of Directors Air France-KLM• D etermines the strategic orientations of the company’s activities and • T he audit committee monitors the effectiveness of the Group’s internal ensures their implementationcontrol and of the Group’s risk management systems• R eviews the management report, which informs among others on CSR performanceGroup Executive Committee (GEC)Internal Audit• A pproves the CSR policy, which is included in the annual Group• I ndependently assesses the effectiveness of theStrategic Frameworkrisk management system and performs assurance • A pproves the annual audit planauditsAt airline levelBoard of Directors Air France, Board of Managing Directors and Supervisory Board KLMSame responsibility as Air France-KLM Board of DirectorsExecutive Committees Air France and KLM• S upervise the CSR policy and associated risks• Q SE Management Review Twice a year at Air France and KLM Safety& Quality EVP BoardBusiness and operationsCorporate• E nsure the responsibility and monitoring HR departmentCSR departmentof the Quality-Security-Environment • D efi ne and implement social policy• D efi ne and implement CSR policy (QSE) systems• N egociates with the unions the collec-• C oordinates the Environmental • I ntegrate CSR policy in operationstive agreementsManagement System• M anage emergency and crisis situations14Air France-KLM CSR report 2010-11
Managing and monitoring CSR performance Integrating the expectations of our stakeholdersFor over ten years, the introduction of management objectives and Listening along and sharing our CSR policy and initiatives are key plans for continuous improvement in the Group’s strategy has been elements of the Group’s CSR strategy, both in terms of identifying based on the ISO 14001 standard. The two airlines are certifi ed for CSR issues and in their implementation. The Group incorporates all of their relevant activities, both in their facilities in France and The stakeholder expectations when defi ning objectives, through ongoing Netherlands and onboard their aircraft. dialogue and the materiality test as advocated in the GRI 2010, Air France Industries (AFI) aimed to integrate ISO 26000guidelines into its processes for CSR and an evaluation was carried The Group monitors employee opinion in-house through surveys, out in November 2010. AFI is the fi rst Aviation Maintenance operator forums and themed events. This year, the ‘Embark’ company plan was to have incorporated the guidelines of this new international standard extended to all levels of the Group, meaning all employees were able to into its operations. express their expectations concerning 2009, KLM established various CSR performance indicators in 5 key Externally, the Group has set up various forms of dialogue, such as areas covering compliance, innovative performance and stakeholder customer surveys, comments from stakeholder groups, discussions engagement. These indicators measure progress achieved within each with air transport associations, benchmarking competitors and best division, and facilitate the drawing up and monitoring of action plans. practice sharing with other sectors, analysing regulatory trends, and taking into account recommendations from non-fi nancial ratings Since 2006, the Group has disposed of an annual joint reporting system, agencies. (For more information on dialogue with stakeholders, see which is audited every year by one of its two statutory auditors. This table on page 62).auditor checks whether the social and environmental indicators are in line with the ISAE 3000 standard (International Standard on Assurance The diagram below shows various stakeholder groups, with whom Engagement). The Air France-KLM CSR report follows the GRI (Global the Group maintains regular dialogue. The results of this stakeholder Reporting Initiative) guidelines (see table on page 65). dialogue are helping to further shape our policy, mapping issues and are taken into account in our yearly CSR groupsLocal authoritiesResidents’ associationsScientifi c communityAssociations and NGOsCombating climate changeBusiness partnersEmployees Suppliers and subcontractors, & UnionsAirports, Air transport industry,Air transport sector bodies Minimising our environmental impactsBuilding a sustainable relationship with our customersPromoting a responsible human resources policyInternational, Shareholders European and fi nancial and National Contributing to local developmentpartnersauthoritiesCustomersOur approach to corporate social responsibility15
CORPORATE GOVERNANCEApplying corporate governance principles to ensure improved governanceComprising 15 members, four of whom are Dutch, the Board ofDirectors determines the orientation of the company’s activities and ensures their implementation. The Board relies on the recommenda-tions of its specialised committees to ensure the smooth operation of the Group in conjunction with the management. The Board operates according to accepted French corporate governance principles as set out in the AFEP-MEDEF Corporate Governance Code updated in 2010. In application of these principles the Board of Directors regularly discusses and updates its mode of governance:Reduction in the duration of Board Directors’ terms of offi ce and staggered renewalWomen members of the Board of DirectorsIn order to comply with the governance principles as presented in the There are two women members of the Board of Directors, or a %. AFEP-MEDEF Corporate Governance Code and to adopt the conclu-In view of the Board director mandates expiring in 2012 and 2013, sions of the evaluation of the functioning of the Board of Directors, the the Appointments Committee will put forward candidates intended General Shareholders’ Meeting of July 10, 2008, decided to reduce to reinforce the presence of women within the Board in order to the duration of Board Directors’ terms of offi ce from six to four years comply with the AFEP-MEDEF recommendation of April 19, 2010 and and to include the option of a staggered renewal process for mandates the provisions of the law of January 27, 2011 relating to the equal in the bylaws. The General Shareholders’ Meeting of July 8, 2010 thus representation of women and men within Boards of xed the duration of new or re-appointed Board directors’ mandates at two, three and four years to ensure the smooth renewal of the Board Independence of Directorsof having examined the situation of each Board director, the Board of Directors meeting of March 23, 2011 considered that six Directors Evaluation of the functioning of the Board of were independent in view of its ownership structure (notably the French Directors State and employees) and the specifi c rules governing the appoint-During the 2010-11 financial year, the members of the Board ofment of a number of its Board Directors. The Board considered that Directors conducted a self-evaluation exercise on the way that they all the Board directors had competences and professional experience function. The interviews with the Board directors were handledthat are useful to the company, whether or not they are considered to under the seal of anonymity and were the subject of a presentation andbe independent in the light of the AFEP-MEDEF during the Board of Directors meeting of March 23, 2011. The self-evaluation highlighted some positive developments in the Internal regulations of the Board of Directors functioning of the Board since the last evaluation carried out by an On June 17, 2004, the Board of Directors adopted its internal regula-independent fi rm in 2010: the debates are more effectively focused, tions notably specifying the terms for the organisation and functioning the meetings are properly conducted and there is free discussion with of the Board and also determining the powers of each of the specia-a frank exchange of information and committees established within the internal regulations are regularly updated : They were, in particular, modifi ed by the Board of Directors meeting of March 26, 2009 in order to specify the roles and powers of the Chairman and the ChiefExecutive Offi cer following the separation of the functions of Chairman and Chief Executive Offi cer, effective January 1, France-KLM CSR report 2010-11
Board of Directors and specialised committees 2010-11 statusComposition of the Board of Directors 1 2 directors appointed by the General Shareholders’ Meeting(of which 2 representatives of the employee shareholders) 3 representatives of the French State appointed by ministerial order Separation of the functions of Chairman and Chief Executive Offi cer since January 1, 2009Directors’ term of offi ce F our years (exceptionally two or three years to ensure the smooth renewal of the Board of Directors)Number of meetings and average attendance rate 9 meetings; attendance rate: % (% excluding extraordinary meetings).Training of Board of Directors members At the time of their appointment or at any time during their term of offi ce, each director may benefi t from the training necessary to fulfi l their mandate. Such training is organized by the Group Board of Directors Committees Audit Committee Remuneration Appointments Committee CommitteeNumber of members 6 (of whom 3 independent) 3 (of whom 2 independent) 4 (all independent) Number of meetings 4 1 1Average attendance rate at meetings 79% 100% 100%Annual evaluation of the functioning of the Board of DirectorsYes (each member of the Board of Directors conducted a self-evaluation based and Committeeson questionnaire, the anonymously reported fi ndings were presented at one of the meetings)Existence of Board’s internal regulation, a code of stock market Yescompliance and a code of fi nancial ethicsCompensation of the company offi cers P ublication of compensation modalities and amount paid to executive directors in the Reference Document, the Management Report and on the Group directors receive neither stock options nor bonus shares. Should they leave the company they do not receive any special indemnities. P ublication of Board directors’ fee modalities and their amount in the Reference Document and in the Management ReportFor more information about corporate governance, codes of ethics, business and whistle-blowing procedures, see the 2010-11 Reference Document -fi adherence to ethical principlesOur business conduct rules Compliance with competition law As a framework for its operations, Air France-KLM has several guide-Since 2007, Air France-KLM has established its own specifi c com-line documents concerning the way it runs its business and on preven-pliance policy related to competition law with the publication of its ting corruption. Some of these guidelines apply to all members of staff, Competition Law Compliance Manual. The Manual is published in while others are specifi languages, available to all employees. The Manual was updated at the end of 2010 and remains available to all Board of Directors has adopted a Compliance Charter andFinancial Code of Ethics. The Compliance Charter imposes rules on Further to this publication, several other means of prevention have trading shares upon company offi cers, senior executives and some been developed and made available to the Group’s employees. employees of the company in sensitive posts, while the Financial Code In 2008, an online training module on compliance with competition of Ethics defi nes rules concerning fi nancial information, with which rules was rolled out to 8,000 of the Group’s employees holding posts they must comply. that require knowledge of the relevant regulations. Following theonline training and a fi nal assessment, these employees signed indivi-In 2008, KLM drew up a code of conduct that sets out the main prin-dual agreements in which they committed to complying with competi-ciples concerning confi dentiality and honesty, such as the fi ght against tion rules relevant to their work. corruption, confl icts of interest and fi nancial transparency. At the end of 2010, a second e-learning module was added to this trai-ning, the completion of which was made compulsory for Air France’s To enable members of staff to signal serious matters which they may be 12,000 executive employees. Other means of raising staff awareness aware of, Air France and KLM have set up a whistle blowing procedure have also been rolled out, notably a hotline dedicated to competition which is accessible to all, discretionary and anonymous, should the law issues, and an in-house poster campaign addressing the so choose, and with no risk of sanction to the whistle blower. Finally, a manual outlining guidelines to follow during an investigation by competition authorities will be made available online to all employees in summer 2011. Our approach to corporate social responsibility17
Sustaining quality shareholder relationsKnowing our shareholderswhich features all fi nancial information published by the Group. In partner-Pursuant to the obligation for air transport companies to monitor and ship with the business press, the Group also regularly takes part in control their shareholders, Air France-KLM has implemented a proce-briefi ngs for individual shareholders all over France. dure for their identifi additional advisory forum for individual shareholders was also As of March 31, 2011, Air France-KLM was % owned by French created in 2000, the Consultative Committee for Individual Share-interests (compared to % at March 31, 2010), and more than 75% holders (CCRAI), which meets four times a year to canvass and pass by European the expectations of small shareholders. stBreakdown of share capital at 31 March 2011Involving the Group’s % Treasury sharesAir France-KLM has one of the highest proportions of employee % Employeesshare ownership of the companies in the SBF 120 stock index, with close to 12% of Group equity owned by over half of current or % French % Otheremployees, collectively representing the Group’s second-largest share-holder. Two representatives of the employee shareholders have seats on the Group’s Board of Directors, they are also involved in the discussions of the Audit Committee. Their current term of offi ce expired at the end of the General Shareholders’ Meeting of July 8, 2010. Employee and former employee shareholders were all invited to choose a candidate thGeneral shareholders’ meeting of the 8 of July 2010in one of the two electoral colleges (fl ight deck crew and other staff). One share equals one voteYesThe election was run entirely online, including all campaign posters, and close to 30% of employee shareholders, representing half of the Number of shareholders present, represented, 14,686 shareholdersshares and hence of the votes, were able to express their preference. granting power of attorney to the Chairman, representing 159,620,056 or voting by mailsharesThe successful candidates, who will be presented to the General Sha-reholders’ Meeting of July 8, 2010, were both elected with an absolute Attendance %majority of the votes cast in the fi rst round of regular dialogue with our shareholders To ensure that its shareholders and investors are well-informed,Air France-KLM uses a range of media and events tailored to different Changes in employee share ownershipprofi les: briefi ngs and press conferences, meetings with investors and March 2008 March 2009 March 2010 March 2011rating agencies, a quarterly newsletter for shareholders sent out to all %12%%%7,000 members of the Shareholders’ Club, and a dedicated website Exercising our responsibility by taking public positionsAir France-KLM is regularly involved in public debate where it explains To achieve this end, the Group belongs to international bodies (IATA – the reality and constraints inherent to its business, in order to:International Air Transport Association), European bodies (AEA – Asso-• provide lawmakers and politicians with information necessary to ciation of European Airlines, regional bodies ERA – European Regions form an understanding of the issues currently facing the airline indus-Airlines Association) and national bodies (FNAM – Fédération Natio-try so that they can draft laws and regulations on subjects which are nale de l’Aviation Marchande in France and BARIN – Board of Airline increasingly complex,Representatives in The Netherlands), whose role is to represent the air • drive the changes we feel are necessary, sometimes by means of transport sector and advocate its public positions. purposeful initiatives,• advocate the effective implementation and application of national, Air France-KLM’s Chairman of the Board of Directors, Jean-CyrilEuropean and international regulations to avoid all competitive dis-Spinetta, is a member of the new ‘Aviation platform’, which was by the European Commission. The platform is made up of fi fteen people from within the sector and aims to suggest ways of promoting a sustainable future for air transport and a competitive European aviation Group representatives are based in Brussels to put forward the Group’s arguments and, as lobbyists, have signed the EU’s lobbyists’ charter. 18Air France-KLM CSR report 2010-11
Air France-KLM’s public positionsClimate changeAir France-KLM believes that because by its nature, air transport is a worldwide business, its emissions can only be controlled through a sector-wide, global approach. This approach must be based upon the framework laid out by the Chicago Convention, which itself is based on equality of treatment forairlines operating in the same markets. The Group supports the strategy developed by IATA and adopted by its members. Air France-KLM welcomes the Resolution on Climate Change which was thapproved by the ICAO during its 37 conference in 2010, which affi rms the ICAO’s responsibilities, sets sector-wide targets and guides strategies to be implemented by member states. Inclusion of airlines in the European Air France-KLM has always supported ‘cap and trade’, which it considers more effective in bothUnion Emissions Trading Schemeenvironmental and economic terms than a tax-based system. Revenues generated by governments (EU ETS)as a result of auctioning emission rights should be earmarked for sustainable innovation in the aviationindustry, by modernising air traffi c management or developing alternative fuels. Although it only covers part of international aviation, EU ETS is a fi rst step towards a system that must be applied world-wide. The Group is paying close attention that the application of the system does not distort competi-tion, or drive traffi c towards non-European hubs (carbon leakage). Given the opposition and sometimes threats of retaliation from non-European states and airlines, the Group believes that this system should apply only to intra-European traffi c for the time being. Its extension to inter-continental traffi c should be carried out through agreements between states, according to ICAO European SkySince the adoption in 2009 of laws paving the way for implementation of the Single European Sky, fi rst steps have been taken regarding the creation of Functional Airspace Blocks (FAB’s). The Group hopes that EU Member States will live up to their commitments regarding the local performance targetsleading up to effective FAB’s. An effi cient air traffi c control system is essential for guaranteeing fl ight safety and for cutting costs, reducing fuel consumption and hence CO fuelsAir France-KLM believes that biofuels represent the most promising way of signifi cantly reducing the carbon footprint of air transport. The Group is fi nancially supporting research and taking an active part in efforts to produce and commercialise biokerosene which are acceptable in environmental, social as well as in economic terms. The Group is calling upon public authorities to provide strong support for research and development on biofuels for aviation. Since the amount of sustainably grown biomass for liquid biofuels is scarce, Air France-KLM is calling for comprehensive legislation that focuses these scarce resources in those sectors that do not currently have an alternative to liquid ning European transport Air transport will remain an essential driver of economic and human development for industrialised Policy (in the Framework of the and emerging countries alike. The European Commission’s White Book has addressed the decar-EU White Book and the roll-outbonisation of the airline sector, and the adaptation of the infrastructure required to meet the mobility of the EU 2020 strategy)needs of EU citizens. Air France-KLM is contributing to the Commission’s work on reducing transport-generated hindrances. The Group stresses that it is necessary to guarantee a level playing fi eld for different modes of transport and between operators using the same transport modes, and to take the international dimension of air transport into account. Air/Rail co-modalityAir and rail are potentially complementary transport modes. Accordingly, the Group supports the use of trains as a means of extending the catchment area around airports and as a potential substitute on select short-haul routes. Access to the rail market should be guaranteed to all new entrants to promote high-quality co-modality. The Group actively pursues standardization and industry solutions to facilitate linking both modes as an integrated, customer friendly RightsCustomer care is central to the business of the Group. Air France-KLM contributes to the European Commission’s work on Consumer Rights and carefully monitors the harmonious application of the rules to all airlines operating in the European Union. It is actively conducting a process to provide the necessary clarity of certain provisions in Consumer regulations, leading to a proper balance between the interests of passengers and RoissyAir France supports government initiatives to promote balanced growth at Roissy-CDG. The environ-mental measures announced encourage the responsible development of the airport and by moderni-sing its fl eet and adjusting its procedures, Air France is participating to the full. Air France is in favour of initiatives to promote access to training and jobs for local people, and to create the best possible conditions for welcoming and enabling businesses to grow. Air France supports and encourages access to the airport via public transport for passengers and employees alike. The airline supports the implementation of coordinated governance for the area and would like to take part in all cooperation and coordination authorities. Our approach to corporate social responsibility19
ENGAGING THE AIRLINE SECTORWorking with our subsidiariesThe Group’s subsidiaries are involved in CSR policy and implement KLM’s subsidiaries KLM Cityhopper, Transavia and Martinair have been their own initiatives, with the majority included in the Group’s social involved in the ‘Weight & Fuel’ programme and have applied this to and environmental reporting. The signature of Air France-KLM’s Social their own operations. The programme aims to reduce onboard weight. Rights and Ethics Charter by all European subsidiaries in 2008 repre-KLM Catering Services carried out a study in cooperation with KLM sented an important step in defi ning common strategy. Infl ight Services on KLM’s onboard supply chain, in order to come up with responsible solutions for washing the dishes and cutlery used Servair, Air France’s catering subsidiary, has set its own strategiconboard. By reducing the use of road freight through better logistic CSR priorities in order to guarantee healthy and safe products for organisation, these new measures have reduced costs and environ-its customers, to promote diversity and equal opportunities within mental impact, a benefi t shared by all concerned. the company, to reduce its environmental impact and to promote anethical and responsible approach to local development. In 2010Servair published its fi rst CSR commitment within the SkyTeam allianceAs partners in the SkyTeam global network, Air France and KLM share In 2008, SkyTeam was the fi rst alliance to sign a CSR charter. During a strong commitment to CSR with other members, with each airline the yearly SkyTeam CSR day, partners share best practices and also developing its own CSR knowledge. Currently, Air France chairs the SkyTeam CSR working group andorganised a CSR event in Paris in February 2011. Involving our supply chainThe Group is working closely with its partners in the supply chain; from Taking into account the direct and indirect environmental impact of the stage of product development until the end of life cycle. In the products and services, Air France-KLM selects suppliers based overview on page 11 one can see the key actors in the supply chain on total cost of ownership. For example, the high volatility of textile who play important roles in our core business so that the Group can prices in 2011 lead to a different approach on fi bre eco-design for alloffer customers the products and services they want. Examples of key textile products (uniforms, blankets, hot towels), comparing globalactors are suppliers of fl eet & components, fuel, cabin equipment and environmental impact (Life-Cycle-Analysis based) in addition to stan-aviation infrastructure providers. Large fi nancial spend and long term dard assessments based on functionality and are involved which means that working together to opti-mise processes and come up with innovative sustainable solutions, is Involving and engaging our buyers of key Group actively promotes social responsibility and environmental performance among buyers and internal business stakeholders in Committing to responsible procurementcharge of formulating product specifi cations. Buyers need to sign The Group’s primary focus is on creating an integrated approach to a Code of Ethics to ensure ethical behaviour in their dealings with procurement as part of a sustainable supply chain. Air France-KLM suppliers. This document is also published on the newly established Procurement seeks to align sustainability, innovation and cost reduction supplier website, which can also be directly accessed through the into a global perspective to optimise processes and enable savings. commercial airline websites. Furthermore, in the past year a large part CSR elements are part of current methods for measuring purchasing of the procurement division has participated in CSR training, either on performance. They are taken into account by all procurement domains, eco-design, or as part of internal procurement training, as well as in for example in the E&M domain, which incorporated ISO 26000 guide-external events on CSR and procurement. lines (CSR analysis and monitoring of their suppliers). Supplier management A leading example of CSR driven purchasing can be found in efforts on The Group uses a supplier management system to ensure transpa-biofuel. The Group is actively involved in the creation of a global biofuel rency and consistency in its approach and to deal with suppliers. market together with its suppliers and several NGOs. Other signifi cant As a signatory to the United Nations Global Compact, the Air France-contributions can be found in the areas of infl ight services (catering KLM Group assesses the CSR compliance of its suppliers, either by and on-board equipment) and aircraft components. Other examples asking them to sign up to a Sustainability Charter or provide their own include the cradle-to-cradle approach (including the waste / recycling but equivalent CSR statement whenever they respond to a call for process) adopted in the upcycling of old . Suppliers are required to complete a registration questionnaire 20Air France-KLM CSR report 2010-11
during tender procedures (which is also generally used for supplier riskOur regional and social impactassessment), and are asked to provide information about sustaina-Suppliers beeing vital to its success, the Group aims to build strong bility, including environmental licences, location of production sites, supplier relations which involves signing contracts that serve the inte-compliance with the Air France-KLM supplier charter and in particular rests of all parties while complying with agreed payment lead times. with EU REACH regulations on chemicals. The Suppliers Charter is As a result of its large supply base, Air France-KLM also creates also published on the supplier website, as part of the “CSR Commit-many indirect jobs around the hubs and at its destinations, with over ment” section. The Group has the ambition to further improve the rate two-thirds of these in Europe. Outsourcing more work to companies of CSR compliant suppliers. Air France-KLM intends to further integrate that employ disabled workers is a major concern for all departments. and standardise CSR principles in existing audit over €12 million is generated by companies in the sheltered sector through activities as diverse as the distribution of uniforms, the Several products and suppliers have already been selected for their cleaning of onboard blankets and table linen, logistics for engine spare socially or ecologically responsible qualities, including electric vehicles parts or aircraft Hubs, “green” offi ce supplies or wine bottles for voyageurs class in PET to reduce weight ACHIEVEMENTS RECOGNISEDThe Group is assessed annually by the major international non-fi nancial Air France-KLM is included in the CDLI 2010 (Carbon Disclosurethratings agencies, including SAM, Vigeo, Eiris and Oekom. For the 6 Leadership Index), which ranks the best twenty French companies on year running, the Group has been ranked leader in the aviation sector the SBF 250 (see Focus page 25).on the DJSI (Dow Jones Sustainability Index). In 2010, Air France-KLM was named supersector leader in the broader ‘Travel and Leisure’ In The Netherlands, KLM participates in the Transparency Benchmark, sector, a distinction it also received in 2008. which is led by the Ministry for Economic Affairs and encourages Dutch companies to be transparent on their CSR policy and activities. The Group is also listed on non-fi nancial indexes: Aspi Eurozone, Ethibel Sustainability Index (ESI) Excellence Global and FTSE4Good Index Series. Our approach to corporate social responsibility21
Combatingclimate changeClimate change is one of the largest environmental chal-lenges our planet is facing. Aviation accounts for around 2% of man-made CO emissions, but continuing growth in 2global air transport means this fi gure is rising. The effective response to this worldwide challenge must be international. An unprecedented step forward was taken thin Montreal on the 8 of October 2010, when 174 member countries of the International Civil Aviation Organization (ICAO) adopted a resolution which includes an objective to cut the aviation industry’s CO emissions. This represents a 2fi rst step towards an industry-wide agreement on reducing greenhouse gas emissions on a global a major actor in this combat, Air France-KLM will continue to move forward in order to mobilise the whole sector. For several years, the Group is playing its part in the collective effort to further reduce CO emissions, particularly through 2our contribution to the development of sustainable biofuels, which will enable us to reduce our carbon footprint and in the future to reduce our dependence on fossil fuels. 22Air France-KLM CSR report 2010-11
Our visionWe aim to reach a sustainable balance between aviation growth and the control of CO emissions by 2playing our part in the worldwide effort, mobilizing our industry and reducing our own commitmentsAir France-KLM has set up a ‘Climate Action Plan’ • We actively encourage research programmes for to combat climate change. As part of this: renewable energy sources such as sustainable • We support efforts to reach a new worldwide aviation biofuels;agreement post 2012. The Group has joined • We participate in environmental protection pro-schemes to mobilise the aviation sector for a fair grammes led by NGOs; contribution to collective efforts;• We provide our customers with transparent and • We continue to modernise our fl eet, contribute to reliable information on their travel-related CO2 aviation research, and encourage the entire sup-emissions via a calculator based on real operating ply chain to cut CO emissions;data and opportunities to offset • We ask all our staff to work towards ambitious environmental action plans, from fuel saving in our fl ight operations to cutting emissions on the ground;Combating climate change23
Our management indicatorsAIR FRANCE/ objectives/ schedule/ main achievements 2010-11/ status- 2 0% CO emissions for fl ights to overseas territories based on 2012Targets exceeded thanks to the replacement of B747s with B777-300s in 22005 levels2008 and by changes to capacity in response to the economic context.- 5 % CO emissions for domestic fl ights based on 2005 litres/passenger/100km in litres/passenger/100km 2012(95 g CO/passenger/km)2- 300,000 metric tons of CO per year by 20122009-20236,250 metric tons of CO saved (Fuel plan)22- 500,000 metric tons of CO per year by 2020260% of ramp equipment fl eet to be electronically powered by 2020202045% of ramp fl eet electrifi edKLM/ objectives/ schedule/ main achievements 2010-11 / statusCO neutral growth (2007-2011)2011Follow-up of this commitment through the partnership between WWF-NL 2and KLM. WWF participation in the SkyNRG Sustainability Board20% CO reduction per ton/kilometre by 2020 (based on 2009 2020+1% fuel effi ciency as part of the Fuel Awareness programme set up by 2levels)fl ight operationsCutting on board weight, with a 2% reduction in the weight of ca-2011Many initiatives carried our in the previous year, but the introduction of the tering equipment. light weight trolley has been postponedBiofuels2011-12Demonstration of practical use of biofuels in KLM aircraft, provided that sustainable biofuels receive technical authorisation for use during fl ightsTarget achieved or exceededOn targetTarget partly achieved Background: air transport’s carbon footprint1The air transport sector contributes around 2% of global CO22emissions and % of total greenhouse gas transportShare of air transport industry in global man-made CO 2emissions. 981. Electricity 5. Fugitive around 2%7& Heat 36%Emissions 1% 12. Manufacturing 6. Industrial of global man-made CO emissions26& Construction 15%Processes 3%53. Transport 14%7. Land Use Change 4. Other Fuel & Forestry 16%4Combustion 10%8. Aviation 2%9. Marine 3%32Source : The World Resources Institute, International Energy Agency and the International Maritime Organisation (2005)Political and regulatory contextGlobal resolution for the aviation sector :Air France-KLM supports effective environmental a historic step forwardregulationA fi rst on a worldwide scale: on the 8th of October 2010 in Montreal, As from 2012, the aviation industry will come under the EU Emissions 174 member countries of the International Civil Aviation Organiza-Trading Scheme (EU ETS). Air France-KLM has welcomed this Cap tion (ICAO) adopted a resolution to reduce the industry’s emissions. and Trade mechanism, which it believes to be more effective than a The agreement includes a target to improve the energy effi ciency of straightforward tax, if no competitive distortion occurs. The Group 3international aviation by 2% per year until 2020, it also commits toconsiders that the revenues generated by government as result of stabilising net emissions and setting up a market-based regulatoryauctioning emissions rights should be allocated to the improvement of framework for offsetting. Air France-KLM welcomes this resolution, environmental performance in aviation fi nally recognises the need for a global sectoral Cap and Trade mechanism will have a signifi cant environmental impact because aviation emissions will be capped at a level below their 2005 average. Nevertheless, its effi ciency relies on its full scope IPCC Fourth Assessment Report / Technical Summary ( ), 2007 and GIEC-AIE 20052 Stern Review Chapter 15 ( box ), 200624Air France-KLM CSR report 2010-113
Playing our part in collective effortsFOCUSAir France-KLM plays a key role in the International Air TransportAssociation (IATA) in order to work on solutions to ensure that environ-AIR FRANCE-KLM’S STANCE ON THE EUROPEAN mental targets set by the Annual General Meeting in 2009 arEMISSION TRADING SCHEMEe reached :• from now until 2020, to improve energy effi ciency by % per year;The European Union system for trading greenhouse gas quotas • from 2020, to ensure the stabilisation and neutral growth of CO (EU-ETS) will apply to the aviation sector from 2012. Air France-KLM2emissions;believes that a responsible international aviation industry should contribute to CO emissions reduction. Because it is not tech-• by 2050, 50% reduction of CO emissions compared with 200522nically feasible for aviation to reduce its emissions alone, it will nance reductions achieved in other sectors through Emissions Trading Schemes (ETS). However, Air France-KLM believes Meeting national commitments that the scheme will only be effective if all airlines worldwide are Air France signed the Commitments Agreement for the aviation sector included. This would also ensure that traffi c is not diverted to at the Grenelle Environment Summit in January 2008, notably pled-non-European hubs, which would create carbon leakage and lead to unfair competition. To date, the inclusion of non-Europeanging to reduce the fuel consumption of its fl eet to litres/passenger/airlines in the scheme is contested and is subject to legal challenge by100km by 2012, the equivalent of 93g of CO/passenger/ from non-EU countries. Air France-KLM remains vigilant that In December 2010, Air France’s fl eet fuel consumption was litres/the scheme is applied fairly. passenger/100 km in 2010, thus still on target. Our carbon footprintFOCUSOUR TRANSPARENCY AND CARBON PERFORMANCECO emissions and Air France-KLM traffi c2thIn 2010, Air France-KLM was ranked 5 in the Carbon Disclo-140 %sure Leadership Index (CDLI) which lists the 20 top performing French companies. The Carbon Disclosure Project (CDP) is an 130 %assessment carried out on behalf of 534 institutional investorsholding over 64,000 billion dollars. The assessment evaluates how 120 %well major companies integrate climate change into their strate-118 %gies, their approach to carbon reduction and their greenhouse 110 %gas performance. In 2010, for the fi rst time companies were scored on their performance in managing carbon, which enabled 100 %104 %the creation of the CPLI index. Carbon performance is given as 90 %a banded score on a scale from A (leading) to D (just starting).Air France-KLM was placed in band B, but strives ultimately to 80 %move upwards to band cCO2Almost 80% of the Group’s emissions are produced by our long-haul fl ights, for which there is no alternative mode of -specifi c fuel consumption Our emissions calculation and offsetting optionsAir France and KLM provide their customers with CO emissionsGroup-specifi c fuel consumption litres/passen-2calculators, available on both of their websites and the option to offset ger/100 km – 93 g CO/passenger/km2these emissions. Air France’s partnership with Good Planet supports the construction of biogas storage reservoirs in China and the conver-sion of organic waste into compost for agriculture in Madagascar. KLM supports a Gold Standard certifi ed wind farm on Bonaire Island 4,4107in the West Indies, which aims to produce enough renewable energy 4,3to power the entire island. 4,21024,14,0973,93,8-14% in 10 years3,7923,7L3,693g3,58720002001200220032004200520062007200820092010Combating climate change25L/pax/100kmgCO/2 pax/km
Reducing our carbon footprint Continuous improvement of fl eet effi ciency The Quality Innovation Program’s ‘Fuel Challenge’ initiative has been In 2010, despite the need for careful management of investments to receiving staff contributions since 2008, which have saved aircraft exit the economic crisis in the best possible shape, Air France and maintenance 2,000 metric tons of fuel. KLM moved to the next stage in their fl eet renewal programmes. • Three A380s, one B777-300ER and seven new medium rangeOptimizing air space aircraft were added to Air France’s fl eet in 2010;The optimization of air routes and traffi c will enable the group to reduce • Thirteen new aircraft were added to the fl eet, including one Boeing its emissions. This is why Air France and KLM are involved in three 4777-300ER, one Airbus A330-200, for growth and 11 short hauls for long-term projects to improve airspace use: SESAR, AIRE and eet renewal. As of now, all turboprop aircraft have been phased November 2010, Paris Charles de Gaulle airport was awarded the Airport Collaborative Decision Making (A-CDM) seal of approval, which means that the air traffi c control organisation Eurocontrol (CFMU) has delegated control of departures to the airport. Flight plans to Bangkok have been improved: KLM in partnership with the IATA Regional Coordination Group and Indian and Pakistani autho-rities have been authorised to use the airspace close to Delhi, which has resulted in a 6 minute reduction in fl ight time and a reduction of 3 metric tons in CO emissions per fl introduction of each A380 or B777 in Air France-KLM’s fl eet allows a 15% reduction of CO emissions2Optimising fl yingAir France and KLM pilots apply the most fuel effi cient procedures,without compromising fl ight safety. These are based on ongoing re-search into fl ight level and optimum speeds, continuous descent ap-proach procedures, taxiing with one or two engines switched off and Reducing our fuel consumptionnegotiating direct paths with air traffi c France’s Fuel Plan and KLM’s Weight and Fuel Program, which were both launched in 2008 seek to assess, formulate and promote KLM is the launch customer and development partner of Boeing’s fuel consumption optimisation Wind Updates Services, which provides real-time meteo-rological information through a dedicated instrument. The continuous The Fuel Plan brings together over 100 fuel-saving measures, which optimisation of the fl ight, thanks to the information provided, produces resulted in a saving of 75,000 metric tons of fuel in 2010 (% ofan estimated saving of 7,000 metric tons of CO per year. The project 2Air France’s total fuel consumption).was awarded the 2011 Jane’s ATC Industry Award for air traffi c control Weight and Fuel Program led to a 1% fuel saving compared to 2008. To ensure they are aware of their role in this initiative, KLM pilots Cutting weight, improving performancehave received the publication “Fuel Effi ciency in Execution ”. Also The lighter the aircraft, the less fuel it burns and the less CO it emits. has applied an integrated approach to cut fuels costs This is why Air France and KLM have both rolled out weight reduction and CO emissions. initiatives. The weight of catering and cleaning equipment of Air France 2has already been reduced by 15% since work has focused on standard units, drawers and glass holders:FOCUSStandard unitsDrawersGlass holdersDAILY ‘GREEN’ FLIGHTS- 130 g- 300 g- 500 gSince the fi rst transatlantic ‘green fl ight’, optimised from gate to gate to reduce greenhouse gas and noise emissions took off on the 6th of April 2010, Air France has been operating daily opti-mised transatlantic fl ights, such as the Airbus A380 fl ight between New York-JFK and Paris-Roissy and the Boeing B777-300 fl ight between Paris-Orly and the Caribbean. Air France, alongside air traffi c control optimises each phase of these fl ights resulting in 3 to 5 ton reductions in CO emissions per fl - 6,200 t of CO - 2,500 t of CO - 850 t of CO 222Once these procedures are ready for all Air France long-haul per yearper yearper yearfl ights to North and South America, CO emissions will be cut by 2135,000 metric tons per fl ights are part of the Atlantic Interoperability Initiative to Reduce Emissions (AIRE); a programme run by the European Commission and the FAA, in which KLM will also take part as of this year. 4 The Single European Sky Air Traffi c Management (SESAR), which aims to provide Europe with more effective air traffi c control systems The Atlantic Interoperability Initiative to Reduce Emissions (AIRE) will put in place ‘green’ routes to and from the USA (see Focus) and Collaborative Decision Making (CDM) tocoordinate various airport France-KLM CSR report 2010-11
Sustainable alternative fuels1metric tonBiofuel is a liquid fuel produced from organic material called biomass; of kerosene burnedtherefore biofuel is a renewable energy. Nevertheless, some biofuels have been criticised in recent years. Air France-KLM is very aware of this debate and is committed to following the developments in this fi eld = metric toncarefully through various platforms in order to promote sustainable bio-of CO emissionsfuel production and avoid negative environmental or social impacts. 2A strategic priority for Air France-KLM Sustainable biofuels are the most promising route to achieving signi-fi cant reductions in aviation’s CO emissions whilst at the same time 2providing security of supply and exemption from EU-ETS. They will be essential in achieving Air France and KLM’s ambitions as well as for the aviation industry as a whole, which has no alternative to liquid fuels. Key factors for COemissions reduction2 FOCUSHOW CAN BIOFUELS CUT OUR CARBON IMPACT?sreusae MntioBurning biofuels emits the same amount of CO as fossil kerosene : cu2det metric tons of CO per ton kerosene burnt. However, it only oith2 wtenthmwprolore-emits in the atmosphere the CO that was absorbed by the ev Ge2s Dnsioiesgisloobiomass during its growth. A study on biomass (camelina) life mnhc Edetl / Teaswaecncycle (growth, harvest, treatment and fi nal use) carried out by eerot RFele FgATM Investments / ImprovementsinoMichigan Technological University has shown a COreduction of gnO2 EconomicLow Carbon Fuelsup to 80% compared with fossil fuel. MeasuresBaselineCarbon Neutral TImeline 2050Source : IATAAs a founder member of the Sustainable Aviation Fuel Users Group and a member of the Sustainable Way for Alternative Fuels and Energy for Aviation (SWAFEA) as well as the IATA and AEA, Air France and KLM have played an active role within the air transport industry to promote the development of sustainable aviation fuels for four years. Since the amount of sustainably grown biomass for liquid biofuels is limited, Air France-KLM is calling for comprehensive legislation and policies that focus on using these scarce resources in those sectors which do not currently have an alternative to liquid fuels. This vision is 5shared by WWF in their recently issued Energy Report. The keys to more sustainable biofuelsThe Road to Sustainable Aviation FuelsThrough the SAFUG, Air France-KLM signed up to a charter on sus-In the biofuel Joint Venture SkyNRG; KLM is working together withthtainable biofuels on the 25 of September 2008. The charter was partners North Sea Group and Spring Associates on a biofuels project drawn up in partnership with NGOs such as WWF and the NRDC called Well-to-Wing. The Well-to-Wing project aims to stimulate the (Natural Resources Defense Council). The Group is also a stakeholder technical and economical development of sustainable biofuels for in the work of the Roundtable on Sustainable Biofuels (RSB) and isaviation from the start of growing the biomass up to the realization of closely following the Corbey Commission’s work in the Netherlands. the supply chain at Schiphol Airport for biofuel usage in commercial Air France-KLM recognizes that biomass from waste, crops and forest fl ights. An independent Sustainability Board, consisting of WWF-NL, resources has the potential to provide a renewable source of energy, Solidaridad and the Copernicus Institute of Utrecht University, will but careful land-use planning, better international cooperation and advise SkyNRG on sustainability issues related to the proposed governance are and estate selections. The project was granted a subsidy of million Euro by the Ministry of Infrastructure & Environment. When Taking action through practical initiativesfi nalised, the project will demonstrate the use of biofuel on board the Air France and KLM are committed to using sustainable biofuelsKLM fl eet. as soon as these receive certifi cation (Hydrotreated Renewable Jet 6Fuel is expected to be certifi ed by ASTM in June 2011) and become WWF : The Energy Report. 100% Renewable Energy by 20506 ASTM American Society for Testing and MaterialsCombating climate change27COEmissions2
Producing Btl from forestry wasteAir France is participating in a biofuel from forestry waste demons-mid-2009 when mixed with 50% of traditional JetA1, without requiringtration project; a practical and innovative programme headed by modifi cations to current fuel operations. Air France is set to receive France’s CEA (Atomic and Renewable Energy Commission). ASTM 2,000 metric tons of BtL per year from 2014, and will be part of a approved the use of BtL (Biomass to liquid) synthetic kerosene in company, SYNDIESE in charge of BtL industrialisation. Participation in climate and technological researchExpanding our knowledge on aviation emissions Aviation not only generates CO, but also water vapour and soot par-2ticles given off by engines which affect the formation of contrails, the impact of which on the climate we know little about. Air France has been collecting data and carrying instruments on board its planes since 1994 to assist the scientifi c community with research in this area. An implementation study on instruments used for the IAGOS project on an Air France plane was launched in March next generation of aircraftAir France contributes to CORAC (Civil Aviation Research Body) along FOCUSwith Airbus, EADS, Thalès, Safran etc. in order to draw up a road map CLEAN ERAfor French aeronautical research between now and 2050, including Delft University’s Aerospace Technology faculty is working on research on electric and composite planes. its CleanEra research project to develop new technologies for an ultra-ecological plane. The research, which is due to last for As part of its commitment to working together within the industry four years, is mainly focused on emissions reduction and will take from aircraft manufacturers to airlines, the Group supports the work of advantage of KLM’s operational experience. One of the original the ICAO Council’s Committee on Aviation Environmental Protection, results is the development of pressure cabins for “Flying Wings”, with the constraint of maximizing internal space whilst minimizing which is seeking to set CO standards for new weight. This is achieved by “multi-bubble” techniques. The fi ndings of the project will provide insights into possibilities for reducing fuel consumption and limiting CO emissions, giving a 2clearer picture of how the aircraft of tomorrow could look. 28Air France-KLM CSR report 2010-11
Support for initiatives to combat deforestation and protect globalbiodiversityCombating deforestation in madagascarPreserving biodiversityDeforestation is responsible for around 16% of global greenhouse gas Climate change is one of the reasons for the loss of , almost equal to all forms of transport combined. Over the Although the direct impact of an airline company is limited, its indirect last 50 years, the planet has lost around 50% of its forests, equivalent impact is quantifi able. This is why Air France-KLM is keen to reduce to an area three times the size of Switzerland destroyed every year. In its impact on biodiversity by strengthening its support initiatives with addition to its impact on the climate, deforestation also damages bio-partner organisations and research work. diversity as 75% of animal and plant species live in France is contributing to the SANGHA 2012 project ‘Biodiversity in For these reasons, Air France, in partnership with Good Planet is Pygmy Country’ by transporting equipment and people involved in this supporting the WWF-led Programme Holistique de Conservation des expedition which aims to document biodiversity, a necessary prelimi-Forêts (PHCF), a major project covering 515,000 hectares of forest in nary step in order to study the changes in this untouched part of The Madagascar. Air France has invested €5 million over four years in prac-Central African initiatives such as creating protected areas, restoring damaged forests and providing support to local communities in the sustainable Last year, KLM launched a partnership with Landscape North Holland, management of their forests. The project also includes a research a NGO which carries out conservation work in the Schiphol region. component, which uses a specially equipped plane to estimate the KLM also continued its involvement and participation in the amount of carbon captured by the forest. This project is particularly in Taskforce Biodiversity, IUCN Netherlands and its “Destination Nature” the public eye as the United Nations has declared 2011 International Programme, which contributes to the protection of biodiversity at its Year of Forests. destinations. In 2011 KLM is helping WWF to protect the following projects: Oceans and coral reef at Bonaire, forests in Choco Darien in Colombia and Panama, forests in Tesso Nilo on Sumatra and the coral triangle in OF VIEWThe key role of ICAO in reaching a global agreementRaymond BenjaminBertrand LebelSecretary General of the ICAOExecutive Vice President for Organization and Sustainable development, Air FranceThe ICAO held its three-yearlyWhat do you think of the ICAO’s role thGeneral Assembly between the 28 in the fi ght against climate change? thof September and the 8 of October Since it was created in 1946, the ICAO has2010, during which a resolution on proven its ability to develop and ensure adoption climate change was adopted. What will this change ?among its Member States of the regulatory framework that has enabled Resolution A37-19 on climate change was recognised by the interna-the remarkable expansion of international air transport. Concerning tional community as an unprecedented global commitment to limit and climate change, which is now a major challenge for our industry, we reduce international civil aviation’s carbon emissions. The ICAO and its are convinced that the ICAO has an important role to play in achieving Member States reached an agreement that establishes a solid basis ambitious worldwide agreement on limiting air transport’s emissions, upon which to achieve the sustainable development of international civil involving States and other over the coming decades. The resolution provides an ambitious The resolution that was adopted by Member States, after many long action plan, which we are already implementing. The main objectives days of negotiation during the recent General Assembly is an excellent include: the development of national action plans by Member States to example of the role the ICAO can and must CO emissions related to international aviation, the development 2and use of alternative sustainable fuels, the defi nition of principles toIs the Group prepared to use its infl uence in order to design and implement market-based measures, and the setting of objec-mobilise all stakeholders?tives to reduce emissions in the long term. The International Air Transport Yes, of course. We have always done so in the past, and will continue Association (IATA) has congratulated the Member States of the ICAO on to do so in the future. Furthermore, the recent appointment of Peterhaving reached this fi rst comprehensive governmental as head of the IATA will enable our Group to be even more active and effective in mobilising airlines along with all other stakeholders What do you expect from airlines and their represen-concerned; authorities, aircraft manufacturers, airports, air navigation, tative organisations in the future?and meteorology services. These complex issues are not solely the concern of States. I’m proud of the fact that the ICAO and the IATA have been working together for many years on reducing the impact of air transport on our envronment, and more recently on the question of climate change. This dynamic coo-peration between the ICAO, Member States and the industry is a key factor of this success and I am convinced that it will become increasingly important over the years and climate change29
Minimisingour environmentalimpactsBeyond their CO emissions, the main environmental impacts 2of airlines are noise, energy and water consumption, local emissions and waste to pioneering solutions, Air France and KLM are making progress in reducing their impact beyond regulatory the economic crisis, the Group continued to modernise its fl eet in 2010, therefore cutting aircraft noise, its major impact for local communities close to airports. In order to limit its energy consumption on the ground, the Group is using various means, from electric vehicles to the construction of new buildings with the highest environmental standards. By getting involved from the birth of projects to the optimisation of planes’ end of life cycle, it implements ecodesign this end, the Group mobilises the involvement and initiative of its staff and encourages its suppliers to roll out their own pioneering environmental France-KLM CSR report 2010-11
Our visionWe aim to work on our operations, processes and products to minimize our noise hindrance and other environmental impacts, in order to preserve resources, together with our partners in the supply commitmentsIn its Corporate Social Responsibility Statement, • invest in eco-design by improving the environmental Air France-KLM is committed to ensuring conformity performance of products linked to its services, with environmental regulation investing in levels initiated by in-depth analysis of sites and processes;of environmental protection that go beyond strict • involve employees in environmentally-friendly regulatory compliance:actions, promoting initiatives while supporting • renew its fl eet with the best available technologies, innovations to improve processes;while implementing the most effi cient procedures • engage suppliers and service providers to to mitigate noise and emissions from its fl ight launch projects to improve their environmental operations; our environmental impacts31
Our management indicatorsAIR FRANCE/ objectives/ schedule/ main achievements 2010-11/ statusSet up an application to monitor regulatory compliance2011Currently being rolled out, due to be operational in June 2011Set up an aircraft greenhouse gas emissions calculation application, 2011Application now operational, used for calculating 2010’s emissionsbased on real operations dataContribute to the reduction of polluting emissions caused by 2012– Car use: -7% compared with 2007 (to be re-evaluated in September 2011)commuting in the Paris region with a 10% shift in transport modes– Participating in the setting up of an ‘Inter-Business Travel Plan’ (PDIE) at CDG airportExpand activity while keeping noise emissions below 2005 2012– 31% reduction in noise energy compared to 2005levels (10 major French airports), in the context of the Grenelle Environment ForumKLM/ objectives/ schedule/ main achievements 2010-11/ statusStrive towards sustainable Ground Service equipment, electrifi ed 2020– 6 Solar powered passenger stairs for small capacity aircraftwhere possible with the remainder powered by sustainable fuels– Replacement of diesel powered equipment (8 preconditioned Air Units and 6 Fixed Power Units) with electric equipment – Pilot project with electric scooters for E & MOn average 2% improvement in energy effi ciency per year2020Energy saving initiatives have improved energy effi ciency by % in total over 2 years (2009 and 2010)Minimise resources used, reduce non-recyclable waste, investigate 2020– % reduction in waste produced by airline operationstechniques for internal waste processing – ‘Waste-to-Energy’ project launched at Schiphol– ‘Waste-week’ at divisions of KLM to boost awareness of waste reduction and recyclingReduce noise at Schiphol in partnership with the aviation sectorOngoing– Implementation of the Fixed Radius Turn on a specifi c route for B777s, A330s and Embraers– K LM is contributing €25m to soundproof 1,100 homes (to be completed in 2011). In phases 1 and 2 of the project, 12,200 homes were achieved or exceededOn targetTarget partly achieved Controlling noise hindranceNoise control is one of our stakeholders’ key demands. Air France-KLM included the consideration of this demand in its Corporate Social Responsibility Statement of 2006. The Group is following the ICAO’s ‘Balanced Approach’. This approach places each stakeholder in a position to contribute to global solutions to improve the environment. The Balanced Approach forms the basis of measures announced at the Grand Roissy Assembly and at the Alders Table at events in 2010: the ‘Grand Roissy Assembly’ and the ‘Alders Table’ at SchipholControlling noise hindrance was the key theme at the Grand Roissy Assembly, whose overall objective was to ensure ‘the sustainable development of Roissy-Charles de Gaulle airport’. To meet this challenge, the Ministry of Transport has committed to put in place measures taken directly from the Balanced Approach: removing noisy aircraft, increasing fl ying altitudes, rolling out Continuous Descent Approaches, rationalising the use of parallel runways and changing fl ight paths to reduce the number of residents overfl own. Taken together, these measures will improve environmental noise levels in the area surrounding the airport without reducing its capacity and jeopardising economic France-KLM CSR report 2010-11
In August 2010 residents, Dutch Ministries and professionals from the airline sector (as represented at the ‘Alders Table’) successfully reached an agreement on development of the environmental capa-city by fi nding a sustainable balance between growth in number of movements and the ongoing implementation of measures to reduce noise (., Continuous Decent Approaches, further optimisation of fl ight paths, etc.). Reducing noise at sourceDespite the persistently diffi cult economic context, Air France and KLM have continued to invest in fl eet renewal, adding 13 new aircraft to its fl eet; 5 long haul and 8 medium haul aircraft. Air France has launched its fourth A380 and maintained its goal to operate 12 by 2014. The A380 is currently the most advanced plane in terms of noise quality and already meets the noise emissions standards that count for abatement proceduresAir France and KLM are heavily involved in the development of noise abatement procedures, particularly in Continuous Decent Approach (CDA). In 2010, KLM played a part in developing CDA, which is due to be rolled out from 2012. In France, CDA is already in use at Marseille and Orly, thanks to the Continuous dialogue with residents support of Air France, which will participate in its implementation at and soundproofi ng contributionRoissy from airlines are involved in ongoing dialogue with all stakeholders. For many years, KLM has been investing in dialogue and cooperation with As the fi rst airline in the world, KLM successfully introduced the inno-residents of the Schiphol area, mainly through the “Alders Table” and vative Fixed Radius Turn for its B737s for a specifi c departure route. In at the Schiphol Regional Review Committee (CROS), in which 2 KLM 2010 KLM also introduced the Fixed Radius Turn on B777, A330 and employees work full aircraft on this route, resulting in even greater noise reduction. On the 7th of April in 2011 the Fixed Radius Turn will be published Most French airports have set up Commissions Consultatives de in an Aeronautical Information Publication, allowing other airlines to l’Environnement (CCE) whose role is to drive environmental policy. use this departure technique. The useful application of the fi xed radius Air France takes part in CCEs as a on other routes is currently being investigated and could potentially result in the usage of the fi xed radius turn on three other In 2010, Air France and KLM paid 40 million Euros, which goes towards departure ng homes in the residential area around France KLM total noise energy indicatorFOCUS122%124%120%116%AIR FRANCE-KLM’S GLOBAL NOISE INDICATOR111%100%100%The indicator takes into account all fl ights operated by Air France 100%and KLM. It uses noise levels as certifi ed by aircraft manufacturers 76%as its baseline. The annual noise output is compared with noise 75%75%71%66%levels in 2000. The uncoupling of the noise indicator and the 50%number of aircraft movements refl ects the contribution fl eet renewal has made to reducing environmental energyMinimizing our environmental impacts33
Concrete actionsProactive approachEnergy consumptionIn France, the ‘Grenelle II’ law of July 2010 represents a commitment to Commitment to energy effi ciencythe environment at a national level. The regulatory obligations it entails, KLM has voluntarily committed to improve its energy effi ciency by – on such as producing a carbon audit, publishing an annual CSR report and average – 2% per year between now and 2020. Since 2009, the reduc-labelling CO emissions have been anticipated by the Group for many tion achieved has reached %: installing curtains that keep cold air 2years. In November 2010, the law enlarged the ACNUSA’s responsibility inside saved 365,000 kWh/year, changing washing methods for trol-3from noise to atmospheric pollution in and around saved 156,000 m of gas per year and 136,000 kWh per year was saved on cooling computer optimise monitoring and tracking of regulatory compliance, Air France and KLM have software that takes into account all current In September 2010, Air France also committed to improving energy and future environmental ciency by signing the World Business Council for Sustainable Development (WBCSD) Manifesto for energy effi ciency in offi emissions Light vehicles and trucks• Air France’s Business Travel Plan, BOUSSOLE, has actively worked to reduce emissions caused by commuting in the Paris region since 2007 and was further strengthened with the setting up of open, shared offi ces at CDG and Paray (close to Orly), courses on sustainable motoring (eco-driving and safety) and support for car-pooling and telecommuting. This year, the initiative has taken a new dimension with agreement on an ‘Inter-Business Travel Plan’ (PDIE) at Roissy-CDG.• The contracts Air France-KLM Cargo signs with road haulage companies now include clauses on monitoring carbon emissions. Air France-KLM Cargo is also looking into reducing its carbon footprint through the use of natural gas-powered trucks, which are currently being tested at Schiphol.• This year, a group of large French companies, including Air France, reached agreement on the specifi cations of a licensed electric France would like to replace its light vehicles in the Paris region with 600 electric vehicles between 2012 and 2014. KLM has made a commitment to the Dutch Government to pilot a project of sustainable vehicles; an example of which was the test with the vehicles and equipment at the airport Water consumption• At the end of 2010, 45% of Air France’s ground equipment fl eet was • The ‘EcoShine’ procedure, polishing using a biodegradable, recycled electrically powered, in line with targets for 2020. For the purchase of product has been extended to all long-haul aircraft this year. Applying new material, electrically powered equipment has product requires a minimal amount of water compared with stan-dard aircraft cleaning methods. From now on, all aircrafts in the fl eet • In the Air France Ground Handling Operations Division (DGES), the entire will be washed at CDG or Orly using this procedure, which will save 3current fl eet of Ground Power Units has been modifi ed so that equipment 8 m of water per down automatically after 15 minutes when not connected to an aircraft. The fl eet of loaders has also been modifi ed so that equipment • Hose nozzles with a fl ow rate of 10 litres per minute have been shuts down automatically after 30 minutes of with 3 litres per minute models, which has resulted in an 18% reduction in water consumption at Air France Maintenance’s • At Schiphol in 2011, KLM began to restrict the use of Auxiliary Power Toulouse site, compared with usage in (APU) equipment which runs on kerosene during ground han-dling at 16 positions. During ground handling, electric current and preconditioned air are supplied by ground support equipment, this has led to the reduction of local emissions (CO, NOx). Additionally, 2the towing of aircraft using an external power supply has reduced CO emissions by 3,500 metric tons in 2010/ France-KLM CSR report 2010-11
Light Emitting Diodes (LED)Delivery and opening of the Constellation buildingAt KLM’s Engineering & Maintenance division, a pilot has been As part of a High Quality Environmental (HQE®) initiative, the new 2launched together with Philips, the Dutch lighting company, with LED 11,000m Constellation building at Orly, home to engine overhaul ope-lights in the hangars. This reduces energy usage and energy costs, it rations is equipped with a heat pump, a rainwater collection system, a improves the workplace comfort of employees and increases the total solar powered water heater and a bed of plants inside the workshop amount of light covering the planes that are undergoing maintenance. which absorb oil odours. The building consumes 30% less energy than Another example of this pilot is the replacement of a mobile 2000 kW a conventional -hour light-set with LED lights that use 12 kW per hour. Air France-KLM Cargo has also put energy effi ciency measures in At the end of 2010, KLM started to replace all cabin lights – tubular place: by lowering the temperature from 22°C to 16°C in the cargo lighting – in its F70s by LED lights that use around 20% less energy, store at Orly, and by installing movement detectors to switch refrigera-have a longer life span, create less heat and are also 8 kilos lighter, thus tors on and off in the area used to store perishable cargo. saving fuel and CO emissions. By 2011 all 26 F70s should have their 2lighting replaced with LED cabin and soil pollution• The product used to wash Air France aircraft, as part of the • Before any repairs are carried out on DGES equipment, the equip-Ecoshine procedure is non-toxic, non-fl ammable and biodegradable, ment is routinely cleaned. Since 2010, the Orly base has been using it conforms to European environmental directives and means that a new cleaning product whose composition is less harmful to people cleaning teams can work without the need for Individual Protection and to the environment (caustic potash-free), which reduces pollu-Equipment. Because the system does not use water, Aéroports de tion of water used for has authorised its use on aircraft at ramps and even on aircraft connected to a jetbridge.• Air France Cargo has put in place measures such as the physio-chemical processing of water used to wash batteries and has built • Since winter 2010, the Ground Handling Operations Division of a dedicated facility for hazardous merchandise in order to contain Air France has been using a de-icing product that is less polluting fl ammability and water and soil pollution biodegrades more quickly. This is also the case for the 100% biodegradable de-icing product that has been used on ground equipment at Orly for the past three years, which is undergoing testing this winter at the CDG our environmental impacts35
Optimising aircraft life cyclesAircraft dismantling and metal recyclingRecovery of scrap metal from aircraftIn September 2010, Air France Industries successfully completed a For the past two years, Air France-KLM’s SCRAP programme has major operation to dismantle eleven A320 aircraft at the end of their been recovering metal from used aircraft parts in order to make new life cycles. A project of this scale required the setting up of a dedicated parts or to re-use parts that are still in good France Industries has been able to process 27 metric tons of The project involved dismantling almost 10,000 pieces of equipment aircraft steel and alloys in 2010/2011, which means that 40% of every to be re-used by Maintenance after having undergone stringent tes-metric ton of nickel produced is recycled. KLM processed 150 tons ting. It involved the use of around 1,700 litres of hydraulic fl uid and the of scrap last year in this programme. This initiative has also meant an sorting and recovery of more than 200 metric tons of in the carbon footprint over the production cycle of nickel with a 12% reduction in part of SCRAP program, one of the results of the project was to provide aviation training centres with aircraft Cityhopper in partnership with KLM E & M, Martinair, Fokker, Rolls Royce and Civil Aviation Authority of Netherlands (IVW), has been working on the re-use of 15 Fokker 100s which were withdrawn from the fl eet. Cooperation resulted in re-use of expensive and sensitive components and scarce materials by following the ‘cradle to cradle’ principle. The use of engines and key components from the F100s in the maintenance of F70s has meant that more than 4 years of maintenance have been saved and dependency on suppliers for these aircraft, which are no longer in production, has decreased. Two of the F100s were donated to the Aviodome and Schiphol, while 13 aircraft will be recycled, providing per aircraft almost 15 metric tons of materials of which 8 tons are pure our waste recycling rateRecycling onboard productsRecycling uniformsOur fl ights constitute a highly complex product due to the numerous Last year KLM supplied 11,000 female staff with new uniforms designed elements that make up the service we provide and the constraints by Dutch designer Mart Visser. At the same time, around 90,000-kilos linked to the air transport industry. The items we use during fl ights need worth of used uniforms were discarded. The used uniforms were to be collected, stored and transported before they can be recycled. processed in a responsible way in Twente (The Netherlands), home of On average, 80% of onboard catering products are recycled. The the Dutch textile industry, making use of innovative and groundbreaking rate of recycling of NEO packs is steadily increasing and had already technology. Together with a group of partners, KLM – being the fi rst reached 40% in November 2010, equivalent to around 10 metric tons airline – ‘upcycled’ all the used uniform textiles into new raw materials of polystyrene over 2 can be used to manufacture new, high-quality products. By upcycling 90,000 kilos of textiles, at least 500 million litres of water, 3From waste to energy4,600 tons of CO and 1 million m of natural gas were saved, all of 2KLM’s catering division is currently working on the ‘Waste to Energy’ which would have been used or emitted in producing the new textiles. project, to create energy from catering waste, which would otherwise KLM is currently investigating where the material could be used for: be incinerated. In 2010, dedicated facilities were adapted to the Infl ight trays are an c needs of the catering division. Testing is currently underway with roll out planned for carpetsCarpet weight reduction and recycling have been put in place at both companies. KLM has rolled out this initiative as part of a project called ‘Carpet Care’ alongside the manufacturer and a waste treatment company in order to reuse carpets as a raw material for 2the cement industry, with a target of recycling 80% of its 35,000 m of carpet every France-KLM CSR report 2010-11
Waste treatment cyclePOINTS OF VIEWContinuous dialogue with our stakeholdersHans AldersPieter ElbersChairman Alders TableChief Operating Offi cer, KLMWhat is the previous history and Why did KLM decide to participate role of the ‘Alders table’?at the ‘Alders table’?In the year 2007 no agreement could be found KLM recognized that agreement with all parties on the growth of the Mainport Schiphol and the involved would be conditional to maintain ‘a environmental capacity in terms of acceptable license to operate’ and to further develop the hindrance. In addition the set of rules for enforcement at that time had Mainport Schiphol. There are different views from and different interests been considered outdated, by Dutch politics even bankrupt. Therefore of the local residents, (Provincial) authorities and airline sector at stake. the Dutch Minister of Transport and Environment requested me to form By applying the ‘Dutch Polder model’ – a setting of discussing matters a platform with representatives of Dutch Ministries, Provincial authorities, directly and constructively with all parties around the table – to the local councils, local residents and the airline sector. This later called ‘Alders environmental capacity at Schiphol didn’t make things easier at fi rst. But Table’ allowed a direct dialogue between stakeholders. In 2008 and in all interests have been and still are taken seriously, and the right way 2010 the parties at the ‘Alders Table’ jointly advised the Minister on the forward has been capacity (growth in number of movements) that included Therefore the Alders Table was - and still is – considered the best way a new set of rules and measures for reduction of noise hindrance. Both to move on have been followed by the Dutch Government and the House of Parliament. Having such a joint agreement between parties can be What would be the key challenge for the future?considered quite unique in France-KLM is a privately owned commercial company. Profi tability for airlines is not a given at all. In order to be able to continue to connect What would be main topic for the “Alders Table” in The Netherlands with the rest of the world as hub carrier at Mainport the near future?Schiphol, the right balance needs to be found. Although fi nding this The main topic will be the formation of a joint fi nal advice on the new balance will not always be easy and will be quite challenging, the Group set of rules that is now being experimented till November 2012. The key is fully committed to fi nd it in dialogue with will be whether or not it brings what parties expected and to determine if this new set of rules is also sustainable for the future. As a pre-condition to success the aviation sector will need to deliver on measures for noise hindrance such as Continuous Decent Approaches. This in itself is a challenge given the complexity of runways and air corridors that the Dutch airspace is known our environmental impacts37
Buildinga sustainable relationship with our customersA succession of major global political and economic events has accelerated the pace of change in the world. The way Air France-KLM’s customers behave is changing too and it’s in this context that the Group is facing new situations and technology, the growing importance of social networks, access to information in real time, instant sharing of infor-mation and the multitude of choices have made customers even more informed and independent. The notions of ‘value for money’, convenience, speed and service are now more important than ever. Thanks to investments made in getting to know our customers better and making their journeys easier over recent years, Air France and KLM are today well equipped to face up to these changes and to continue pursuing their goal of providing them with better gain and keep the preference of our customers, the Group will continue to pursue its commitments to customer relationships and service quality. To meet the ever-growing expectations of our customers, the Group offers a vast range of solutions, from the simplest to the most exclusive, to suit all France-KLM CSR report 2010-11
Our visionIn a highly competitive environment, making the difference for our customers by building on personalized, convenient, and pro-active strategies whilst integrating CSR in our customer products and commitmentsAir France-KLM has set itself the goal of maintaining • guaranteeing their safety and health throughout high standards in CSR through commitments made their journey;in the Group’s strategic plan which concerns its • providing reliable, transparent and relevant three core businesses: Passenger transport, Cargo information;and Maintenance.• respecting our customers’ privacy whilst providing personalised service;We have made the following commitments to our • providing assistance in case of unforeseen events;customers:• offering more sustainable, innovative services;• listening to our customers, making them feel • involving the customer in our CSR , being available to them and attentive to their needs;Building a sustainable relationship with our customers39
Our management indicatorsAIR FRANCE-KLM/ objectives/ main achievements 2010-11Constantly improving service quality– roll-out of Air France-KLM Connect, a real-time customer information service– t he multi-departmental feedback analysis system, based on the return of experience has been extend to Cargo customers– d eployment of “customer fi rst” training: 90% of Air France’s cabin crew management and 63% of cabin crew staff trained in 2010– e nhance the quality measurement system along to entire service chain– p unctuality: Air France and KLM maintained their leading position among comparable airlines and are transparent on results– integrating eco-design principles and CSR criteria within our product and service developmentInnovate while integrating CSR into our product range– e xtended the range of sustainable catering products (. organic, fair trade, animal wellbeing)to 26 new products (KLM)– integrated CO compensation service on – ISO 26000 evaluation of Air France IndustriesEnsuring the health and safety of our customers– a dedicated medical space onboard the A380– health advice and service offered before, during and after travel– food safety verifi ed thanks to ISO 22000 certifi cation at Air FranceInteracting with our customers about CSR and involving them – a nnual survey inviting Flying Blue customers to give their expectations and evaluationin Air France-KLM CSR initiativesabout Air France-KLM CSR initiatives– involving customers in the updating of sustainability issues for Air France-KLM– promoting the donation of frequent fl yer miles to NGOs– increasing awareness on climate change– intensifying use of social media to inform and engage customersIntegrating ecodesign into our product rangeSaving weightApply life-cycle thinking The lighter a plane is, the less fuel it uses and the less CO it emits. One By applying ecodesign principles, Air France-KLM is able to take envi-2kilo of weight saved onboard an Air France plane results in a saving ronmental considerations into account at the early stages of a project, of more than 80 metric tons of CO per year. This is why Air France is and to scrutinize in order to reduce the environmental impact of its 2replacing the seats on its aircraft with new, lighter models, which will product range whilst maintaining the same high quality standards. In result in annual CO savings of 60,000 metric with suppliers, the sourcing of innovative, lightweight and 2recyclable materials is integrated into new project addition to seating, all cabin equipment is included in this initiative, . service equipment (trolleys, atlas containers, stowage, etc.) which For example, through working to improve the functionality of products, will be made 15% lighter on average between 2006 and 2012, with long-haul meal trays have been re-designed so that they are ‘non-slip’. weight reductions (excluding seats) of 125 kg for medium-haul, and This has meant that the non-slip mat, which was previously required, 650 kg for long-haul no longer necessary and results in a saving of 6 tons of polystyrene per ’s Weight & Fuel programme is being continuously extended: in 2010, KLM commissioned new, lighter crockery for World Business RecyclingClass. Designed by Marcel Wanders, it saves 700 tons of CO per year. Re-use can give waste a second life and reduce the amount of raw 2materials used. This is why meal packs on medium-haul Air France fl ights are made of recyclable polystyrene. Cabin crew collect and sort the used packs, which when recycled by the supplier are used to make Air France France-KLM CSR report 2010-11
Another example is the textiles used onboard Air France planes, 100% resulting 90,000 kilos of recovered textiles are used to produce new of which are recycled and used to produce insulation. In 2010, KLM everyday items (see chapter Minimising our environmental impacts).upcycled 11,000 staff uniforms using groundbreaking technology; the Onboard weight reduction on a long haul planeSome examples for a long haul aircraft (Boeing 777)Measuring service quality and operational performanceTransparency on operational performanceObtaining feedback during operational incidents is essential, particu-Operational performance and service standards are measured on a larly during such periods. To do this, Air France uses its REX1 plat-constant basis and are subject to annual performance target contracts form, which brings together all management departments. The tool and corrective malfunction analysis and decision-making, and helps with Air France and KLM publish their punctuality results and fl ight regula-implementing action plans to improve service on the Air France corporate and AEA websites. Monitoring customer satisfactionThis year, air transport was faced by a series of disruptions, which had Through its 7 Service Standards, Air France-KLM has an open, public signifi cant repercussions for customers. Air France-KLM took action commitment to providing quality service. Customer satisfaction surveys to provide information and help to travellers, with thousands put up in cover the entire client experience, from reservation to after-sales care hotels throughout the Paris and Amsterdam regions. Signifi cant human and allow both companies to monitor their customers’ perceptions on and logistical resources were also deployed during heavy snowfall at a daily end of 2010, when many employees of other departments were asked to assist ground of ‘mystery customers’ assess compliance with Air France-KLM’s 7 Service Standards and all customer-facing staff undergoes During the period of severe travel disruption caused by the eruption specifi c training. For example, 90% of cabin crew management and of the Eyjafjoll volcano, KLM set up a dedicated ‘bring me home’ 63% of crew staff have been trained ‘customer fi rst’ in , to help stranded passengers get home as quickly and safely as Regularity: percentage of fl ights performed compared with the number of fl ights scheduled at and a sustainable relationship with our customers41
Developing a responsible and innovative product range Air France-KLM places communication and dialogue with its customers at the heart The commitments made by the Group guide the services provided to our customers of its strategy. Thanks to new technology, the Group is able to support its customers and are detailed below:before, during and after they travel by providing them with personalised information and assistance also when their journeys are disrupted, whilst fully respecting the confi dentiality of the information sent. 3INFORMATIONAir France-KLM provides 2comprehensive, transparent information on pricing at the point of reservation online DIALOGUEincluding automatic display Air France and KLM hold of the lowest priced ticket customer panels and surveys and providing answers 1to constantly improve the to frequently asked of their products and services: ‘Score’ involves In addition to this, Air France RESPECT 500,000 onboard questionnaires and KLM have developed mobile Air France-KLM ensures that per year, The ‘In Touch’ blog applications designed data supplied by its customers is contributed to by to simplify travel preparation remains confi dential and is used 500 customers, fb@home has and by and for Air France-KLM 12,000 active clients, the CSR Since the start of 2011,and its is carried out annually; Air France and KLM have Air France also checks 1,180 Flying Blue customers provided an innovative the advertising burden, responded in personalised service which as perceived by its France and KLM also sends customers information The vast majority, 85% proactively reach out about any unexpected changes of customers, said the level to their customers through social to their fl ight between 14 days of advertising from the company media. The popular networks before the fl ight up to take was acceptable. Finally,Facebook and Twitter have off. The information includes Air France-KLM has experienced rapid growth with updates on cancellations, delays set up in-house applications almost 220,000 followers and gate changes...to better coordinate messages on Twitter and nearly Besides this, the service also sent to customers, so that 400,000 fans on Facebook. enables to inform customers they receive information In April, KLM started with about missing baggage upon that is relevant to large platform Hyves with arrival. The information is sent over 100,000 fans. Moreover, in real time by SMS or email, Air France and KLM maintain currently in 8 languages, to all relationships with their customers clients who have signed Business and Leisure RELATIONS AWARDSAir France-KLM’s customer relations initiatives have been awarded various prizes, : - Air France was awarded fi rst prize for customer relations in the transport category (June 2010)- KLM was selected best social brand in the travel industry and social brand number 22 worldwide in the 2010 Social Brands 100-report of Headstream42Air France-KLM CSR report 2010-11
5647PERSONALISATIONRESPONSABILITYHEALTHAir France-KLM is responding In order to provide onboard ASSISTANCEAll Air France and KLM cabin to the wide cultural and linguistic catering which is in line withAir France and KLM focuscrew are qualifi ed in fi rst aid, diversity of its customers the CSR commitments,on processing claims and all aircraft are equipped with by offering solutions tailored Air France-KLM cooperates with in the timeliest manner possible a fi rst aid kit and an automatic to specifi c needs, .: in terms its suppliers to reduce by offering an ‘e-claim’ service. defi brillator. To prevent the risk of onboard catering and its environmental % of claims submitted via of thrombosis, an onboard video by making fi lms available in up For example, KLM serves MSC Air France’s website and 70% shows passengers prevention to 13 languages. In order to labelled fi sh and is increasingly on KLM’s site are dealt with customised service adding organic and sustainable in under 9 new Air France’s Airbus to its Scandinavian customers, products to its France’s Recovery A380s are equipped with KLM’s sales website is now In addition, a fully organic menu programme provides proactive a medical space. The Group also available in the native language is available upon request for assistance to customers when offers several health services of each of these extra fl ight delays to passengers: KLM Health Some customers prefer to be Furthermore, Air France or problems occur. In 2010, Services offers a 3-stage service independent and are looking and KLM are rolling out 254,055 passengers benefi ted to its customers: healthy travel, for innovative solutions, while environmental clauses withfrom this service, 504 million healthy at the destination and others might need assistance. their suppliers (see page 20).Frequent Flyer miles were given healthy home again. Air France’s ‘Saphir’ for Air France and ‘KLM Air France’s catering subsidiary in compensation without sales site includes a health Cares’ provide a dedicated Servair takes environmental the need for customers and well-being section, service for passengers with concerns into account in its to contact Customer Services, and the option of being reduced mobility and offer purchasing policy, for example and 100% of customers vaccinated in Air France personalised solutions at every by emphasising the use were contacted in the four days vaccination centre, the only step of the journey. Air France of seasonal products following the 9001 certifi ed centre and KLM also offer a service and reducing the weight in is tailored to the needs and amount of packaging order to meet European of families (dedicated areas, regulation requirements,special meals etc). For many Air France relies upon years, it has provided the ISO 22000 standardan accompanying service for on food 425,000 children under In 2006 it became the fi rst the age of 12 who travel in the world to achieve Furthermore KLM was placed certifi the top 10 of innovative airlines according to a ranking In partnership with the Valk published by and the University of Leiden, KLM offers a programme to overcome the fear of fl ying, which is based upon detailed research regarding its causes. Air France also offers similar courses to help its a sustainable relationship with our customers43
Our customers, partners in our CSR policyInformingConsultingSince April 2010, a dedicated sustainable development section has Since 2008, Air France-KLM has conducted an annual survey amongst been included in onboard entertainment programmes on Air France’s its Flying Blue customers to determine their expectations related to long-haul fl ights. Air France and KLM infl ight magazines dedicate CSR and the air transport sector, and to evaluate the initiatives in place. several pages to CSR issues (environmental and social highlights, This study gives even better insight in the most relevant CSR topics and key fi gures, initiatives led by Air France, KLM and its partners).the global issues for customers on an international perimeter and which Air France also broadcasts campaigns against sex tourism on its measures they expect the Group to take in response. It also shows that long-haul fl ights, in partnership with ECPAT, a still overestimate air transport’s share of CO emissions, which 2iFly Magazine, the KLM online publication that was awarded the title they estimate in ten times more than its actual share which is around 2%.of best digital travel magazine in the world at the Digital Magazine Awards 2010, regularly features CSR on board are informed on environmental facts, for example Numerous initiatives are available to encourage our customers to through the WWF-NL food boxes and by featuring Mr. Finney on the contribute with their own actions, such as offsetting CO (see chapter 2kids channel, a cartoon character who teaches children how to treat on Combating climate change), donating miles to NGOs, as well as the earth in a responsible initiatives regarding their own contribution as communicated in Air France has contributed to several publications on the theme the monthly ECPAT International page. By purchasing products on this of responsible air transport, for example in cooperation with the page customers can contribute to the fi ght against child and by contributing to the ‘Business travel and sustainable The KLM Open 2010, an international Golf tournament, was a development, incompatible or compatible?’ guide, published by the sustainable and CO neutral event. Concrete actions taken were green 2Marco Polo Group, a travel sector think , waste sorting and sustainable catering. The remainder of CO 2emissions were compensated with Gold Standard Emission started a table with IDH, the Dutch Sustainable Trade initiative, on sustainable tourism to explore the possibilities for a joint pilot in this responsible Cargo andMaintenance servicesA more sustainable Cargo offerFOCUSDuring the World Air Cargo forum in Amsterdam, which was attended by more than 3,000 people, Air France-KLM presented its new offer, AT AIR FRANCE INDUSTRIES THE APPLICATION OF along with all of the initiatives the Group has put in place to reduce ISO26000 GUIDELINES HAS BEEN EVALUATED BY the environmental impact of its business, such as the development EXTERNAL e-freight and alternative November 2010, Air France Industries has been named New initiatives have strengthened this position, such as the new the leading aviation maintenance company by the independent ‘Bureau Veritas’, in recognition of its commitment to and initiatives facility to handle dangerous goods which is under construction at in sustainable development, in line with the ISO 26000 -CDG airport or the local client service centre which has been Concerning ‘consumer issues’ the following topics were analysed:set up for SMEs and SMIs to address their specifi c needs.– fair practice in terms of marketing, information and contracts;– health and safety protection for consumers;Certifi ed Maintenance which listens – sustainable consumption;to its customers – a fter-sales care, assistance and dispute resolution for consumers;A system providing two-way customer feedback is in place, along – data protection and privacy of consumers;with a process for dealing with claims, this also covers expectations in terms of CSR. KLM E & M has organised an ‘inspiration day’ with The setting up of an ethics code for their sales personnel has been its customers to discuss their changing expectations, particularly identifi ed as a good practice by the May 2010 Air France Industries obtained the renewal of its ‘unique’ certifi cation whose scope applies to all of its French business, and ‘global’ certifi cation, which applies to eight international reference recognition includes the Group’s commitment to ‘green main-tenance’, which is a real and distinctive asset to many France-KLM CSR report 2010-11
Customer perception on Air France-KLM CSR actions90%Reduce 80%the COemissions270%Renew the fl eetResearch on renewable Use lighter materials & alternative energies60%on boardReduce & recycle waste on board Reduce the consumptions50%Support Integrate airtransport Reduce noise emissions aviation Develop in global CO research ecodesigned 2emissions systemproducts40%Climate action plan Contribute to local economic KLM bio fuel 30%developmentdemonstration Give possibility to calculate fl ightand compensate CO2Use electric vehicles 20%Promote diversity Integrate CSR Support Madagascar Promote the KLM into the supply forest conservation partnership with WWF-NLchainprogram10%RecycleOffer health services to the customers0%0%10%20%30%40%50%Awarness of the customersSource : InSites ConsultingPOINTS OF VIEWSustainable travel offerJean-François RialChristian BoireauCEO of Voyageurs du MondeExecutive Vice President for French Sales, Air FranceWhat role does air transport play in What constitutes a responsible responsible tourism?airline?Air transport plays an enormous social role. An airline must act in accordance with its envi-Beyond its obvious economic role, it increases ronmental and social responsibilities, as well as the exchanges between different peoples and promotes better unders-live up to its responsibilities towards society by contributing to business tanding between cultures; it is therefore a force for in the territories in which the company operates. We alsoAn airline can and should be a key player in sustainable tourism, by involve and engage our corporate customers in the context of their own adopting a socially responsible policy towards its employees throu-CSR policies. Beyond this, we inform our customers about sustainable ghout the world and by contributing to wealth creation in the countries development issues and enable them to offset their CO emissions and 2it serves. The big challenge for air transport remains the reduction of its support humanitarian and development impact, in which Air France-KLM is strongly can we include CSR in the range of our travel What constitutes a responsible travel offer?offer?The human element is essential, this means showing respect to By making our commitments a part of the relationship we have with our employees; in terms of salary, social protection, and their dignity, customers and through the products and services we offer. We act whilst also being respectful towards customers, in particular by offering with integrity and respect by ensuring the confi dentiality of data and tailored services to disabled passengers. Air France-KLM also fi ghts by providing transparent information about our products. By using new against child exploitation and contributes by providing information technologies we can maintain permanent contact with our customers to passengers against sex tourism. Informing passengers is a key and provide them with innovative services. We listen to our customers element in this all fi elds, on an ongoing basis in order to provide them with a quality In terms of climate change, Air France-KLM could better inform its service, which meets their on the issues faced by the air transport industry, and by explaining the positions it advocates in favour of air transport making a fair contribution to greenhouse gas a sustainable relationship with our customers45Relevance for customers
Promoting a responsible humanresources policyFor Air France-KLM, social cohesion is key to what we do. Our role as a major international player in air transport is built upon shared values of responsibility, respect, solidarity and pride in what we , the Group is more aware than ever of its exposure to unforeseen events, ever more intense competition and the demanding economic context. The Group has to rise to the challenge of uncertain growth, the geopolitical situation and fl uctuations in the price of oil, while at the same time safeguarding jobs of its employees and the context of a very competitive globalised air transport sector, strengthening our values and preparing for the future will mean we have to adapt to a faster pace, whilst ensuring cohesion by remaining true to our values and playing our part in maintaining effective relations with employees and their France-KLM CSR report 2010-11
Our visionWe see our employees as the prime resource for our Group. Therefore we safeguard a social policy and ensure personal development to guarantee motivated and professional employees, which is key to improve our commitments• Boost employability through training, increased • Promoting respect, well-being and career-long mobility, fl exibility and by promoting health in the work-life .• Foster diversity in order to preserve our attrac-• Bring about change whilst maintaining effective tiveness as an employer and to encourage new dialogue with employees and employee repre-talent to a responsible human resources policy47
Our management indicatorsAIR FRANCE/ objectives/ schedule/ main achievements 2010-11/ statusDevelop mobility in the framework of the current 3-yearOngoingIn 2010, 327 employees moved job locations in France; 1,500 activity employment agreement (2009-2012)changes (of which 75 to careers as cabin crew)Completion of Voluntary Departure Plan, with 1,834 people leaving the CompanyStep up the use of the in-house Job-exchange OngoingNumber of offers in 2010: 778 (451 in 2009) Negotiate and obtain agreement on gender equality 2010Trade Unions unanimously sign gender equality agreement in the workplacein October 2010 Renew wage equalisation measures 2010543 women benefi ted from wage equalisation measures in 2010Negotiate and come to an agreement on the prevention 2010Trade Unions unanimously sign agreement on prevention of psychosocial of psychosocial risks risks in March 2010 Implement prevention measures and structures to preventOngoingTraining courses implementedpsychosocial risks Multi-disciplinary groups implementedIncrease disabled worker employment rate by of a percentage 2010Employment rate of % in 2010 (+%)point each year1,572 workers with disabilities on Air France payroll in FranceCut the occupational accident frequency rate by 30% over 2009-2012Following a fi rst positive three year period, the trend slowed in 2010 with three yearsan increase of % compared with 2009Deploy the measures needed in company departments to achieve 2011Intensifi cation of feedback, management and implementation this objectiveof best practicesKLM/ objectives/ schedule/ main achievements 2010-11/ statusStimulate mobility inside and outside the companyOngoingFocus on ‘Future-program’ offering coaching, training and jobadvice to over 400 employees in 2011Vacancies were fi lled by means of an instrument facilitating a systematic search for internal candidates leading to 254 successful matches in 2010 Venues created like Marketplace by KLM Commercial to make employees aware of job opportunities within KLM, attracting hundreds of employees in 2010Increase awareness of employees on their own wellness and OngoingRenewed policy supporting employees returning to work after long-term health, prevent health Increase mobility and programme for employees acquiring a formal high school diploma counted 75 participants in 2010Create an equal opportunity mindset for a diverse populationOngoingStart of the Lesbian Gay Bisexual Transgender networkOrganisation of Diversity dialogues with senior men and women including a closing dinner with KLM’s president and CEOBuild more fl exibility into workforce and contractsOngoingSolidair programme continued offering ground staff an opportunity to gain experience of the ground operation while helping out KLM at the same time when the ground operation is disruptedTarget achieved or exceededOn targetTarget partly achievedAdapting to the economic environment by improving our staffemployabilityDevelopment of our workforceSince the start of the economic crisis, which has greatly impacted the In addition to redundancy packages, the 1,834 members of staff who air transport industry, Air France-KLM has been working to mitigate the have opted for voluntary departure have benefi ted from individual effects of the crisis in a social and responsible way, whilst maintaining support in planning their future career, provided by two specialist the competitiveness of its , as well as up to 9 months of retraining France has pursued a policy based on rigour and prudence, which On the 31 of March, almost 600 employees concerned had already has led to a gradual reduction of its workforce. 2010 saw the imple-moved on to new projects (of which more than 100 people are setting mentation of a Voluntary Departure Plan; a transparent and non-com-up or taking on an existing business).pulsory approach was respected when organising this France-KLM CSR report 2010-11
At the height of the economic crisis, in order to cope with busy periods Improving mobilityin certain areas, KLM asked its staff to help out with ground handling Adapting the roles of our staff has led Air France-KLM to re-think operations. This enabled employees concerned to gain a better the way its organisation works, which in turn has led to new internal understanding of the role of ground operations staff and save cost job hiring external staff. Given these positive results and the unique learning experience for employees, KLM has decided to continue with Professional mobility has become a necessity due to economic, this ‘Solidair’ initiative after the crisis. Employees on the scheme will technical and commercial change. To ensure that mobility happens in be able to provide support to ground operations staff at any time of the smoothest way possible, Air France has set up a ‘jobs and skills the year, and especially during disturbances to operations, such as the forecast management’. This initiative includes career orientation and volcano crisis in April 2010 or during the heavy snowfall in December. mobility tools such as a ‘Mobility Unit’ and the ‘Job Market’, which recorded a two-fold increase in the number of job announcements KLM pilots temporarily helped out Ground Services by taking up posted over 2010. In 2010, more than 1,500 ground staff changed jobs ground positions. KLM Cityhopper, a subsidiary of KLM, recruited within Air France, of whom 75 are becoming cabin crew after training. ground staff from KLM on a temporary basis as cabin crew. Twelve There were 327 examples of geographical mobility, 600 employees employees took up this opportunity for a new experience, whilst transferred between divisions while 86 ground staff gained executive maintaining their previous salary levels. Some of those concerned will to their previous jobs after a year, while others have opted to stay on as cabin crew on a permanent spring 2011, employees will have access to the ‘Observatoire des Métiers’, which will provide information on growing or declining After more than 50 years Martinair will end its passenger business demand for different types of jobs, which steps to take in order to operations in November 2011. The KLM subsidiary will fully focus on change role and the skills required to succeed. This tool will mean their strong full freighter cargo operation. KLM has taken on Martinair’s that employees can plan their career path with their manager and HR 379 cabin for the futureLeading responsible change management as part of ongoing social dialogueFOCUSAir France-KLM recognises the constraints and risks it is faced with, A SYMBOL FOR TRADE UNION DIALOGUEwhich means it will need to adapt to a more sustained pace of change. To mark KLM’s 90th birthday, Mr Evert van Zwol, head of the At the same time the Group needs to maintain cohesion and ensure Dutch Airline Pilots’ union presented Mr Peter Hartman with a tulip productive relations with employees and their representatives, as part tree on behalf of all of trade unions at KLM. Mr Hartman, President of a policy based on treating people with respect. and CEO of KLM, underlined how cooperation with Unions is a deeply rooted part of the company’s France’s Voluntary Departure Plan was the subject of consultation with the Central Works Council and trade unions, and was then widely communicated to Air France, discussion has taken place throughout the year, in particular on preventing psychosocial risk factors, promoting gender equality, teleworking and on the role of seniors within the workforce. Finally, 2010’s collective wage agreement was the subject of negotiation and was signed by the majority of the trade the future by investing in trainingAir France managed to maintain a high level of investment in training Continuously improving our skills is a challenge. Training means we representing some % of the payroll, with an access of more than can close the gap between available and required skills, promote life-90% for all its learning and support those changing support changes to jobs, particularly in the fi eld of maintenance, Air France has set up training programmes leading up to an internal In response to the economic crisis, which has hit air transport hard diploma (‘certifi cate logistique interne professional’) in partnership with since 2008, Air France-KLM has chosen to do more to develop thethe division and the Education nationale. These 6 month internship employability of its staff throughout the world. This is why training training programmes represent more than 400 hours, and will allow the for Air France-KLM employees has been expanded and based on Company to professionalise growing areas of -learning, which allows employees in around a hundred countries In 2010, investment in training at KLM stood at 2,645 euros per where the group is present to extend their . Over the course of 2010, Air France-KLM continued to adapt the trai-At the height of the economic crisis, KLM gave fresh impetus to its ning it offers in order to support changes to products, organisation and ‘Focus on the future-program’, which aims to expand employee skills jobs, placing more focus on individualised a responsible human resources policy49
More than 400 members of staff have benefi ted from support, training Fulfi lling our responsibilities to young peopleand career advice, this initiative is set to continue throughout 2011. As entering the labour marketa response to a potential shortage of qualifi ed managers, 15 managers Despite the economic crisis, Air France has chosen to continue from various departments of KLM took part in a pilot Operations strengthening its links with the Education Nationale, in particular by Manager training project. This 22-month programme carried out welcoming students on work-study courses. The implementation of the thin conjunction with TiasNimbas Business School, is made up of a 5 Internship Charter for the 2008-11 period resulted in the recruitment period of training, a master class and mentoring from an experienced of 272 people on apprenticeship and internship contracts in 2010 operations the challenging of ‘young executives’ is also continuing (33) and links between universities and the company have been maintained through partnerships. Air France’s ‘New Careers’ Chair at Rouen Business School enables us to participate in discussions on extending working life, the diversity of jobs and people within the company and developing internal mobility.‘Campus Training’ and Air France’s Recruitment and Selection Department achieved renewal of their ISO 9001 certifi cation at the end of 2010, proof of Air France’s commitment to quality in these the health and safety of employeesHealth and safety in the workplace is a key policy priority for Air France-Industrial injury frequency (IF*) coeffi cientKLM. Its importance is supported from the highest management levels at Air Franceto all departments in the weaker results this year, which have not met objectives, France reaffi rms its ambition to reduce the number of accidents in workplace over 2011 (see graph).-30% objectiveDespite all efforts, the number of accidents in the workplace at KLM not result in the considerable decline as aimed -30% new HEALTH AND SAFETY IN THE*IF: number of industrial accidents, reuslting in absenteeism, per 100 employees/yearWORKPLACE WITH OPERATIONAL PERFORMANCE AT AIR FRANCEManaging reduction of workplace accidents As well as adapting work stations and production processes, The company’s Board of Directors has renewed its commitment to experts in ergonomics have played a role in developing new reducing accidents in the workplace through contracts providingbuildings, IT applications, tools, ground support equipment c targets to each entity within the group. Performance on safety Their expertise has also been called upon in the ‘Constellation’ is one of the criteria on which operations managers’ variable pay is and ‘Equinoxe’ building construction projects and in the transfer based. Projects are monitored by each of the Steering Committees, of A320 activities to a new site. Real working conditions are and periodic evaluations are carried out within Air France’s Executive taken into account when designing projects, dialogue between Committee and for KLM with the Executive Committee and Safety & stakeholders is encouraged and the acquisition of future sites, Quality Board (SQB).tools and processes is France-KLM CSR report 2010-11
Dialogue and training to better manage riskFOCUSIt is key for Air France to implement best practices for health and safety in the workplace: Prevention, analysis, management, and supporting INVENTING NEW WAYS OF WORKINGmeasures on the fi ’s IT department is working on defi ning a ‘New World of Work’ which will offer fl exibility in terms of working location and time as Management was involved in the annual ‘Health and Safety in the well as a ‘mobile offi ce’. This should improve work-life balance while at the same time reducing the carbon footprint of travelling Workplace Convention’, where 12 prizes for performance in the fi eld between home and work. Martinair and Transavia have already of safety were awarded to managers of operations divisions in reco-implemented similar practices. gnition of successful initiatives. These included an initiative focusing on higher-risk areas, team workshops led by safety experts and periodical safety briefi addition, training to prevent musculoskeletal disorders (MSDs) in operational departments was provided to various divisions such as logistics and freight, engine maintenance and baggage loading. These 2010 also saw a broad-based awareness campaign on preventing initiatives were outlined during the ‘Air France Prevention of MSDs’ psychosocial risks. The campaign took various forms, such as forums, forum, which took place in and training events. Between May 2010 and February 2011, 570 people received year KLM’s Safety Champions (managers in charge of promoting safety) continued their efforts to promote safety at work. The Safety KLM’s Commercial Division has set up stress management Award was introduced for the most innovative safety ideas. It was workshops, in which staff based both in the Netherlands and in awarded fi ve times last year amongst others to two Ground Services international markets have participated. Other divisions have also employees for developing a net for loads that need special care. The adopted similar improves safety and reduces handling Flight Operations division of KLM is participating in a study carried Safety communication is carried out frequently using several specifi c out by The VU University Amsterdam (Vrije Universiteit Amsterdam) on safety magazines. ‘Never compromise on safety’ is the leading pilots’ fatigue. The data collected by KLM’s medical staff are analysed message accompanied with the Safety-logo, especially designed to to identify factors that contribute to tiredness, absenteeism and health support KLM’s safety policy. complaints caused by irregular working Stay@Work study carried out by the VU University Amsterdam within KLM Cargo received an award from a Dutch government body. The study, aimed to reduce the risks of work-related neck and back Quality of life and health in the workplacepain, resulted in employees acting as ergonomic coaches to collea-At Air France, a three-year agreement on ‘method and prevention gues, teaching them healthy ways for example to lift psychosocial risks and quality of life in the workplace’, which was signed unanimously by unions in 2010 promotes a multidisciplinary, Ensuring social protection for workers in participatory outreach approach which mobilises all stakeholders: countries servedemployees, managers, the human resources network, occupational Air France-KLM employs more than 8,354 people locally throughout physicians and nurses, social workers, trade unions and the CHSCT the world, who benefi t from the values and commitments laid out (Committee for Hygiene, Safety and Working Conditions).in Air France-KLM’s Social Rights and Ethics Charter. Almost all of the Group’s local staff benefi t from social protection ensuring they receive sickness and maternity benefi ts, along with arrangements to ensure they can benefi t from a decent standard of living during their retirement, and are covered against accident and death. In addition, the Group offers complementary insurance coverage where public provision does not meet the required standards. The Group is also developing a responsible health policy for its employees, in particular through campaigns on preventing specifi c local health subsidiariesThe Group’s subsidiaries are also involved in prevention and protection measures for workplace safety. Servair is for example investing in preventing falls from height by redesigning and monitoring its procedures, as well as by producing educational resources and organising forums. These initiatives apply to mainland French and overseas destinations (Canton, Pointe-à-Pitre, etc).Promoting a responsible human resources policy51
Promoting equal opportunities, ensuring fair treatment of employees and respecting diversityPromoting equal opportunities and combating Women in the Group (%)2010discriminationBoard of Directors %The third three-year Air France agreement on gender equality was Executive Committees Group (GEC): 0%signed unanimously by unions in October :%KLM:% The agreement is based upon three main objectives: to establish a Senior managers / executives AF: %KLM:%common methodology for measuring professional and wage equality, Ground staff managerial AF: %to ensure equality of opportunity and equity of treatment in Human KLM:%Resource practices and to come up with practical measures concer-Flight crew managerial AF: Cabin crew: %ning work-life balance. Cockpit crew: % KLM: Cabin crew: %Wage equalisation measures at Air France started in 2008, will be conti- Cockpit crew: %nued in 2011. 543 women have benefi ted from this measure in staff non managerial AF: %KLM:%In addition to measures already in place, proposals to facilitate Flight crew AF: Cabin crew: %Cockpitcrew:%women’s access to management positions were submitted to HR KLM: Cabin crew: %management by employees. Cockpit crew: %KLM has launched a social network to bring together its gay, lesbian, bisexual and transgender employees. In order that these people are visible, accepted and recognised within the company, exchanges will take place with management and human resources. A communication Increasing the number of disabled workers and campaign has also been set up. The network is part of the Company helping employees with long term absencePride Platform, which also collaborates with many other France is actively pursuing initiatives to welcome people with disabilities into its workforce. It recruited 25 disabled members of staff in Accompany the second part of working time2010 and continues to subcontract to organisations within the sheltered To promote the employment of seniors, Air France-KLM aims to employment sector, resulting in the equivalent of 560 indirect the support provided to employees in the second half of their the same period, the number and employment rate of disabled To achieve a real transition between professional life and retirement, staff members have both increased, totalling 1,572 employees and Air France-KLM is offering part time working arrangements at the end % of the employees’ France has invested million euros of the budget provided for More than 300 members of staff have benefi ted from Air France’s in the disability agreement of 2010. This investment has mainly been retirement preparation training since July to actions to maintain disabled people at work, and to develop offers a 3-day workshop to employees over the age of 45 in order to help them increase their motivation for their current job or to assist KLM, in close collaboration with the Works Council, has updated its them in fi nding a new supporting employees returning to work after long-term absence due to illness. An advisory committee has been set up to monitor cases with reference to the renewed policy, to provide advice, to improve progress and to defi ne company and employee responsibilities more clearly. KLM’s fi nancial liability concerning employees affected by disability has been extended to 12 employees in our CSR programAir France and KLM have been building awareness among employees A general training programme on CSR in the form of an e-learning throughout the year in both a structural and inspirational way withmodule will be made available to all members of staff within the group different internal in trainingAt KLM, CSR is integrated into training in different divisions, for Air France has set up two training programmes on diversity via e-learning, example an e-learning course has been developed for Engineering to build awareness on professional integration of disabled workers & Maintenance and Fuel Awareness is now integrated into structural among all employees, and to assist managers in their day to day work. training at Flight Operations. All these different trainings are tailor-52Air France-KLM CSR report 2010-11
made by the divisions concerned. The KLM Academy offers a variety In addition, 28 Air France employees in 2010 and 48 in 2011 are of training programmes. Part of this training offer is a yearly CSR participating in ‘Pandathlon’, a fundraising sports event on behalf of masterclass for middle France, which will see employees climb Mont Ventoux, a Natura 2000 site and Biosphère reserve. Initiatives involving employees KLM also organises meetings between external stakeholders and At KLM quarterly ‘CSR cafés’ are held, bringing together employees employees, as well as meetings between employees on CSR topics, and outside speakers on a variety of subjects such as procurement in order to enrich the debate on these subjects.& CSR and responsible marketing. At Air France there have been dedicated stands and conferences during ‘Sustainable Development Week’. FOCUS250 young executives attended a conference on diversity where they MOBILISING STAFF TO WELCOME PEOPLE WITH DISABILITIES produced communication materials on their chosen topics, with the jury selecting a fi lm as the overall disability awareness booklet, published by a sheltered employment organisation, was handed out to all employees. The booklet aims to encourage everyone to support the integration Air France is involving its employees in initiatives with the Air France of disabled people within the company by showing examples of Quality Innovation Programme, which rewards the best proposals everyday workplace by OF VIEWSocially responsible airlineFouad BenseddikJean-Claude CrosDirector of Methodology Executive Vice President Human & Institutional Relationships, VigeoResources and Labour Relations,Air FranceWhat constitutes a socially What constitutes a socially responsible airline?responsible airline?A company that has understood its performance An airline is an international business made up depends upon how well it is able to preserve the cohesion of its human of jobs at a mostly national level. In this context, being a socially capital. This means having clear, visible and measureable objectives, responsible company means meeting the dual challenge of adapting based upon dedicated management processes, which are monitored to ever more intense global competition, and to fast-changing techno-according to respect for human rights, continuous improvement of logies, while at the same time developing our primary resource; our qualifi cations, the capacity to reorganise structures and businesses harming the psychological well-being of employees, promoting Our objective is to preserve jobs in the long-term and so strengthen social dialogue and widening the fi eld of participation. The reputation our employees’ employability and professional mobility. This means of the company, its attractiveness on the labour and fi nancial markets that every employee is constantly developing its skills and receives and in the end its effectiveness are based upon all of these with these challenges, in which areas in parti-Which initiatives are planned to carry out this social cular do you think Air France-KLM should take action? vision?According to Vigeo’s rating, Air France-KLM comes out as the leading Developing the employability of our staff is a challenge that involves a Group in its sector. Your performance on respecting human rights, great deal of employee preparation and support. continuously improving employment and working conditions and Over recent years, we have intensifi ed our efforts in improving profes-professional relations is convincing. You have sional mobility. The Observatoire des Métiers is currently being rolled-solid assets to meet the challenges of carrying out restructuring in a out, the jobs and skills forecasting and management tool is being responsible way, and of continuously improving the employability of improved and a complete range of technical and managerial training your staff. Stress management, the inclusion of social performance is executive pay criteria and the number of women in management Finally, Human Resources is working along with managers from the positions need a specifi c attention. The area of diversity, on which you start of projects so that social espects are taken into account at an have already rolled-out commitments requires constant stage of the a responsible human resources policy53
Contributingto local development Through its business activities, Air France-KLM contri-butes to economic and social development, both where the Group is based and in the countries it serves. Its extensive international network also provides added economic, technological logistical and fi nancial value, and stimulates numerous other sectors, such as tourism and two companies pursue long-term dialogue with local partners to build sustainable, effi cient and transparent , The Group works on transferring skills, supports local populations by making fi nancial and logistical means available, and also encourages the involvement of its employees in community projects. The Group leads and supports humanitarian projects via foundations and permanent NGOs, and provides relief in case of natural or humanitarian France-KLM CSR report 2010-11
Our visionWe strive to add economic and social value in the areas where we operate, which starts with our fl ight services enabling people and business to connect around the world. By working together with localpartners, we create new business opportunities and support projects contributing to the long term well being of local commitmentsWe support the economic and social development by providing information, through dialogue, partner-of the areas surrounding our major bases and ships and by contributing to local development and the countries we serve, particularly the most projects which improve residents’ living standards; disadvantaged among these, through initiatives • prepare for the future through skills development;which aim to:• encourage our employees to participate in com-• contribute to the local economy through our munity projects;capacity of creating business and work, and by • promote and support development programmes using local suppliers;by making the Group’s human, logistic and fi nan-• build durable relationships with local stakeholders cial resources to local development55
Management indicatorsAIR FRANCE-KLM/ Objectives/ main achievements 2010-11Contributing to the local areas– Participation in the Grand Roissy project, in public consultation on Grand Paris and publication of a stakeholder documentsurrounding our major hubs– Participation in Pays de Roissy-CDG associations, Hubstart, Aerotropolis Europe and the Aigle project– Support of the sheltered sector: subcontracting to 69 organisations for million Euros (Air France)– Signed covenant with 10 neighbouring companies in the Schiphol Area on CO mitigation during a climate summit2– Stakeholder dialogue and company visits by governmental delegations, local politicians and council members– Further contribution to operational issues carried out by the Schiphol Regional Review Board (CROS)– 3 issues of ‘Courrier, Air France partenaire de l’Ile de France’ published and distributed to institutional recipients– T aking active roles on the boards of local associations; Airemploi, JEREMY, AFMAé and the Val de Marne Second ChancePromoting skills developmentSchool (Air France)– Making 8 executives available to the national education authorities (Air France)– The AÏDA programme; 35 training programmes in 20 African countries. 1,150 staff members received qualifi cationsInvolving employees in social projects– Les Amis de la Fondation Air France: 2,100 employees involved in volunteer work – Aviation Sans Frontières: 345 volunteers, most of them being Air France employees– Wings of Support: 80 volunteers and 3000 structural donors in over 20 countries– Sharing best practices and inspiring other colleagues to launch CSR initiatives through internal publications– Fundraising for several social initiatives through staff satisfaction questionnaires – Staff involvement and aid programmes during humanitarian disasters (. Japan)– P roviding 1,200 food packages to deprived families in the Amsterdam area during the Christmas period thanks to theinvolvement of 40 employees (KLM)– Recurring onboard sales action by cabin crew, raising money for Pink Ribbon, breast cancer research and treatment (KLM)– Funding of € million for humanitarian projectsEnhancement and extension of social – Foundation Air France: 100 education projects supported in 36 countries – €2 millionengagement– Acting for Life: 67 development programmes (children, economic, sustainable tourism) in the world– C losing the digital divide by offering ICT assets and door-to-door logistics to schools and education centreers in Africa(in concert with NGO Close the Gap)– Usage of social media to communicate social initiatives and donor participation (KLM)– Round table with social NGOs to progress on further steps in effective corporate citizenship (KLM)– Active engagement of CSR initiatives through online community Club Africa (KLM)Contributing to local development around our hubsDeveloping the local economyFOCUSBy providing international transport, Air France and KLM support business development in the areas around their hubs and throughout LOCAL COMMUNITIES AND AIR TRANSPORTFrance and The Netherlands. With a small home market but huge As major players in regional development, Air France and KLM international economic potential, KLM contributes to the development contribute to the debate on the economic impact of air transport, of the Dutch economy. In addition, the regions surrounding Amsterdam-explaining the challenges, constraints and opportunities of the Schiphol, Roissy-CDG and Orly are major economic centres attracting sector. both large corporations and SMEs, which benefi t from the international Since 2008, Air France has participated in the Grand Roissyairport and the dynamic local , which was initiated by the President of France to ensure the future development of Roissy-CDG, while protecting local resi-As a major private sector employer at its hubs, Air France-KLM dents’ quality of life. This collective effort has resulted in 35 pro-contributes to job creation. The KLM Group employs over 33,000 posals for the sustainable development of the airport area concer-ning environmental issues, and coorof the 60,000 people employed directly at Schiphol Airport, while Air dination and governance of the local area. The fi rst decisions were announced in January France employs nearly 47,000 of the 118,000 people employed at 2011 at the Grand Roissy -CDG and Orly for its part has contributed to the Dutch Government White As contributor to local development, the Group is playing a role in Paper on air transport (Luchtvaartnota), which has been endor-discussions on projects set to shape the areas surrounding its hubs sed by the Dutch Parliament. Aviation is seen as a key factor inover the coming twenty years, such as the Grand Roissy project (see economic development and national competitiveness. A central aim of this White Paper is therefore to further optimise network Focus) and the consultation process on the Grand Paris-Express, the quality while also promoting a competitive and sustainable avia-future public transport network in the Paris region. At the end of 2010, tion sector. Important conclusions are that the aviation industry Air France contributed to the public consultation on the ‘Grand Paris’ and KLM play a vital role in economic development and growth debate by underlining the vital importance to both passengers and and that innovation hand in hand with leadership will ensure that employees of an effi cient urban transport network serving airports in this happens in a sustainable way. the Paris region. Because the network will constitute either the fi rst or last stage of journeys, it is not only an important addition but also a key factor for the competitiveness of French businesses around the France-KLM CSR report 2010-11
To create the best possible conditions for business around Roissy-CDG, cooperating with partners is essential. Therefore, Air France ~80,000works together with Hubstart and with the Aerotropolis Europe Air France-KLM Groupassociation. The company is committed to promoting the ‘Grand Roissy’ region around the world, to better compete with other airport employeesareas. Air France Industries is taking part in the Aigle project, led by the ASTech Paris Regional Business Cluster, which brings together at Amsterdam-Schipol,aeronautical businesses with the goal of creating a world-class Roissy-CDG and Paris-Orly hubs aerospace centre of excellence around Le Bourget long-term dialogue with localstakeholdersAir France and KLM take a proactive approach to engaging local Air France is a founder member and continues to support three asso-stakeholders such as residents, elected offi cials, associations and ciations which are involved in this area at Roissy; Airemploi, JEREMY regulatory authorities in open dialogue at their two main sites. Dialogue and AFMAé:and transparency are the keys to successful cooperation on issues such • Airemploi provides information and guidance on training courses as noise and quality of life. Air France also communicates with local leading to careers in aviation: 198 conferences for schools and stakeholders through its publication ‘Le Courrier Air France, partenaire careers advisors in 2010. Also in 2010, a programme was launched de l’Île-de-France’.which aimed to widen the career choices of 63 young women, by helping them to fi nd out about traditionally male-dominated careers;To further strengthen links, Air France and KLM have continued • JEREMY promotes the integration of young local people from the opening their doors to residents and elected local offi cials; the mayors Roissy-CDG and Orly areas who do not hold formal qualifi cations: and council members of more than twenty surrounding communities 285 trainees began aviation-related apprenticeships in 2010;visited KLM to participate in open dialogue with Air Traffi c Control • through its ‘CFA des metiers de l’aérien’, AFMAé trained 324 young The Netherlands and Schiphol on aeronautical and environmental apprentices and 116 interns through in-service training. Air France developments around the airport. A delegation of ambassadors and is continuing to host work-study students with 148 apprentices representatives of the Ministry of Foreign Affairs was invited to visit in 2010, 140 of who were at Air France Industries and 8 disabled several KLM departments where they were informed about innovative workers at ‘Commercial France’.and CSR throughout the company. In October 2010, Air France invited the public to visit its Orly Nord industrial zone to see newly constructed Air France has jointly set up innovative partnership initiatives with or redeveloped buildings for stakeholders such as the ‘Ecoles de la Deuxième Chance’ (Second Chance Schools, see Focus) and the Education Nationale, Air France has set itself the objective of promoting development in the including its ‘Engineers for Schools’ (IPE) initiative, which involves Pays de Roissy area. The company has set up the ‘Pays de Roissy-releasing engineers for work in schools. Air France contributes CDG’ association, which since 2003 has benefi ted from two part-time with 8 engineers to the project. In February 2011, twenty-one executives provided by Air France organising theme-based working recently appointed secondary and high school head teachers took groups on training, economic development, housing, transport and part in a training course where they benefi tted from the company’s culture. In 2010-2011, this association contributed to the debate on management know-how. Teaching staff are therefore able to provide the Grand Paris public transport network by drawing up a stakeholder guidance to students on careers in , it also organised a European forum on security and is engaged in permanent dialogue with residents and localoffi cials through the Alders Table and through its involvement in the Schiphol Regional Review Board (CROS). The new sector agreement FOCUSon noise norms around the airport is a major achievement (see also page 33). KLM and ten other companies in the Schiphol area signed SECOND CHANCE SCHOOLSan environmental covenant during the regional climate summit in Second Chance Schools offer young people aged between 18 Amstelveen, which aims to exchange ideas and best practice and and 25, who left school without formal qualifi cations a second encourages the participation of all these companies on CO mitigation. chance. As part of an individualised learning programme, students 2complete two or three internships to fi nd out more about the world of future generations and working with vulnerable communitiesAs a founder member of the Val-de-Marne Second Chance Sharing knowledge and providing trainingSchool (E2C), Air France Industries hosted interns in its logistics Both Air France and KLM are playing a role in the job market by department in 2010. These interns are supervised, but above all employing people at all skills levels. They are active in developing listened to, so that they can be independent on the job through their involvement in providing information and training on careers in to local development57
KLM is continuing to invest in education programmes: Regional Education Centres (ROC) Amsterdam and KLM-Engine Services offer gas turbine mechanic and sheet metalwork training; KLM also assists in developing skills & competences and offers internships. KLM provides professional training for careers in aircraft maintenance at two schools with a two-year contract as a mechanic at the end of the course. At Global Start, potential school dropouts are given training in ICT and are recruited for KLM computer replacement with the sheltered employment sectorProviding employment for people with disabilities who cannot access the mainstream job market, is one of the commitments made by companies which respect their corporate citizenship 2010, the number of sheltered employment sector organisations working with Air France increased to 69, representing million Mobilising the Group’s employeesEuros, and the equivalent of 560 full-time jobs. Air France has also Employees are regularly mobilised to assist with projects supportedallocated 772,000 Euros of the training tax it pays to organisations by the Group. For example, the ‘Amis de la Fondation Air France’ which provide training for people with mobilises more than 2,100 employees in a range of voluntary and fundraising schemes. In 2010 they took part in more than 20 voluntary projects by giving their free time for extra school activities, awareness campaigns about donating blood and participating in fundraising employees of various departments supported many good CONCIERGE SERVICES FOR EMPLOYEES AT AIR causes: , KLM Catering Services donated 1,200 food boxes to FRANCE’S HEADQUARTERSthe food bank of Amsterdam thanks to the involvement of around Since the start of 2011, employees at Air France’s headquarters 40 employees, fund raising initiatives were held throughout the have benefi tted from a concierge service, thanks to a joint initiative company in aid of breast cancer research (Pink Ribbon), including between the company, a works committee, and the ESAT de sponsored runs and other sporting events, computers were collected Gonesse (a sheltered employment organisation).and shipped to schools abroad and several volunteer projects involving Before the service was launched, disabled workers spent two nature conservation were carried acquiring skills in reception, IT and accountancy. Members of staff can now take advantage of laundry and ironing services, key cutting and a bakery, type of initiative serves three major social objectives for FOCUSAir France; promoting disability awareness, providing services to AVIATION SANS FRONTIÈRES IN FRANCE employees, and developing employment for disabled THE NETHERLANDSAviation Sans Frontières (ASF) and Luchtvaart Zonder Grenzen (ASF The Netherlands) are two sister NGOs which assist humanitarian NGOs with air transportation; medical evacuations, transporting medical teams, emergency assistance, medicines and providing assistance in helping seriously ill children. Air France has supported the work of ASF for many years, and two-thirds of the association’s volunteers are current or retired Air France staff. KLM AirCares supports ASF NL, which has just launched a recent awareness campaign to collect frequent fl yer miles, both among staff and among passengers who are members of the Flying Blue programme. Thanks to Air Miles donated by frequent fl yers, ASF and ASF NL save large sums of money on the cost of providing transport to sick children. At the end of 2010, ASF celebrated its 15,000th child France-KLM CSR report 2010-11
Contributing to local development at our destinationsPromoting economic developmentThe Group’s structural programmesat our destinationsand partnershipsThe Group contributes to the development of the territories where it Air France has a 30-year partnership with the NGO Acting for Life, which operates by connecting them with 244 destinations in 105 countries. It supported 67 projects in 2010 in Africa, South Asia and South America also contributes through cooperation with local airlines or by sourcing on child protection, economic development and sustainable tourism. with sub-contractors locally on behalf of the Group, or through the use Moreover, Air France continues to be committed to protecting children of local products in meals served are victims of human traffi cking, sex tourism and sexual and economic exploitation through its support of ECPAT, and in particular Air France plays an important part in supporting economic and social by fi nancing an awareness campaign which was broadcast in DOM-TOMs (French-administered territories outside of the European continent), with the voluntary commitment charter on Air France’s Foundation supported 100 projects across 36 countries facilitating transport between mainland France and overseas countries, in 2010. One of the Foundation’s main areas of focus since its origin which it signed in 2009, which was then extended in 2010 to include has been street children. At the end of 2010, Air France Foundation TOM overseas territories. and the Samu Social Sénégal opened the new Samu Social Sénégal centre in has a signifi cant impact on local communities and their living standards. When managed well, it can bring economic prosperity and KLM AirCares supports annually 7 non-profi t organisations with sustainable development. KLM supports the Chair of Sustainable fi nancial, logistical, and organisational aid: from preventing diseases Tourism at Wageningen University and together with several leisure (malaria in Tanzania), transporting and accompanying seriously ill travel agents and the Dutch government’s Sustainable Trade children from rural Africa to hospitals in Holland, to shipping medical Initiative (IDH), KLM is working on a pilot to develop responsible and equipment to health clinics and providing education for children, all of sustainable contribute to the benefi t and development of the least Group also participates in the transfer of skills to countries served Over 3,000 structural donors and 80 KLM and Martinair employees through Air France Consulting, or the AÏDA Programme (Assistance, are highly committed to and actively involved in Wings of Support. Investment, Development in Africa) in Mali, Senegal and Gabon. This This foundation is set up and managed by employees and is active in programme offers African Ground Service companies the opportunity 20 countries around the globe, supporting over 86 projects. By means to professionalise and to expand their skills in IT, equipment and of fund raising (2010: 500,000 Euros) and distribution of goods, toys airport facilities maintenance at a training centre (IAMA) in Bamako. and clothes, Wings of Support offers effective and sustainable care for 1,150 agents graduated in 2010 from training courses that took place thousands of nine African countries. In March 2010, the IATA recognised the training course on dangerous merchandise, and new courses will be KLM is currently further developing its social policies to enhance set up such as the catering course (in partnership with Servair) and the effectiveness of its humanitarian initiatives and to encourage training for cabin participation of other actors. As a fi rst step KLM organised a stakeholder dialogue with several international NGOs including Unicef, Sharing the Group’s resources for humanitarian Oxfam-Novib, Cordaid, ICCO and Plan The Netherlands. With their and development programmesinput KLM works on further shaping of its social Group has played an active role in providing international development assistance, which is closely linked to its core business. In 2010-11, its total contribution amounted to million Euros, in the form of cash donations, free transport for people and equipment, awareness campaigns and other initiatives. The Group also supports various NGOs and associations through skills contribution by France provides logistical support to more than 70 NGO projects, principally involved in providing medical assistance. In 2010-2011, Air France donated 715 tickets to NGOs and transported metric tons of medical equipment and medicines free of of Air France Industries’ mechanics have provided their know-how to the NGO Aviation Sans Frontières and several of the Group’s staff members have been placed at the disposal of the NGO Acting for Life. Air France and KLM provide access to their media channels such as advertising in onboard magazines, videos and — increasingly — social media space to numerous humanitarian to local development59
Distribution of Group’s contributions by project Geographical distribution of fundscategory11% Carribbean 16% Europe 18% Environment& Indian Oceanincl. Netherlands & France29%Sport, art & culture, 17% Americasmiscelleaneous24% Asia Pacifi c32% Africa & Middle East53%Humanitarian & EducationDistribution by type of % % Cargo CapacitySupporting projects throughout the worldNumerous projects throughout the world receive support thanks to the % Moneyinitiative and commitment of local delegations and employees. HUNGARYHAITI‘Flying Smiles’ Programme in aid of several orphanages. Renovating a school for Drawing competition with the prize of a trip for the young 2,500 children. The Air France Foun-winners: fundraising with the sale of KLM toys and money dation is supporting this project from every ticket to money collected from Air France and KLM teams following CURACAOthe catastrophe and helping Supporting the CliniClownsaffected , which sends clowns Hungaryto entertain children in of Air France Industries Tanzaniaapprentices to develop book and toy prevention and helpingMALAYSIAto build a rural clinic, with the Organising a fl ea market in aid Selling Dutch tulips in aid of a Fondation pour la Médecine of the ‘Ancianitos Chimborazo centre that carries out research Africaine et l’’, which provides sup-MADAGASCARfor childhood to elderly homeless fi nancing for the Aina Centre, which cares for orphans and looks after of employees based on La Réunion island to fundraise and manage the Transporting Financing Plane initiativegoodsprojects tickets60Air France-KLM CSR report 2010-11
FOCUSFOCUSTHE AIR FRANCE KLM VILLAGE IN THE PHILLIPINESENHANCING MOBILITY IN KENYAThe Regional Delegation of Air France-KLM in Manila is working The Dutch National Park De Hoge Veluwe has donated over 200 alongside the NGO Gawad Kalinka (GK) in its fi ght against poverty of its famous white bikes (that can be used by visitors of the park) in the Philippines. GK is involved in various initiatives in the fi elds to the NGO Cycling Out of Poverty in Kisumu, Kenya. They pro-of infrastructure, child welfare, food self-suffi ciency, health, the vide these bikes to health care workers, entrepreneurs and school environment and tourism. The Air France-KLM project is based children in order to improve their building houses to help the most disadvantaged people live in Every year around 350 bikes are replaced and Hoge Veluwe dignity. In three years, the project has gone from 16 to 30, then wanted to fi nd a sustainable second use for them. Before being to 45 houses built. They are now inhabited by families who have shipped to Kenya, the donated bikes are completely refurbished moved into their new dwelling place. The success of this initiative by a group of young people with behavioural problems whois thanks above all to the motivation of the Air France-KLM team, receive 24 hour care by the Hoenderloo the additional help they have received from the Asia Pacifi c KLM Cargo has taken care of all logistics and customs procedures division of the Group and from broadening the circle of donors to to facilitate the door-to-door transport of the bikes. Based upon the project beyond the Philippines. The head of GK, thanks to this the successful cooperation with Hoge Veluwe and the tangible support, had the opportunity to come to Europe to present the ini-results of this project, KLM Cargo management has decided to tiative. One of the notable successes of the project is having moti-repeat these shipments on a regular more than 200 young students from France to volunteer for work on the Air France-KLM Village construction site. POINTS OF VIEWCreating economic and social value where we operateGerrit Barnhoorn,Michael Wisbrun,Managing Director Sher Flowers BV, Former Executive Vice President fl ower farm in EhiopiaCargo, KLM. Since 1 June, 2011 Managing Director of SkyTeamSher expanded to Kenya in 1997 and moved to Ethiopia in 2005. How How do you see the role ofdid you fi ll in your role regarding Air France-KLM regardingsocial responsibility?‘contributing to local development’?We give priority to the social activities and development of our Through our activities we contribute to economic and social workers. Currently we employ more than employees of which development worldwide by involving local suppliers ( forwarders, directly. Also local suppliers have strong business ties with catering companies, handlers). And also through supporting the Sher Ethiopia fl ower farm. Right from the start we started building development projects at our hubs and destinations, we strive to residential houses for all our workers, a hospital, a school, a social generate economic and social value for local and a big stadium. Our employees are entitled to a number of benefi ts like free medical expenses, school for children, insurance. How can the Group improve the contribution to local But we also take environmental protection into account; applying all communities?necessary environmental legislation, saving water as much as possible Trade is key to our business. Our challenge is to continue seeking and established a good waste management system to minimize new business opportunities in the countries where we operate and environmental also benefi ts local communities, involving local partners and our local offi impact does your social policy create and how A good example is the implementation of a so-called ‘green lane’ will Sher Ethiopia fulfi ll its role in the future?together with freight agent Blue Skies and a local producer of fruits It creates motivated employees and we experience hardly any turnover and vegetables in Ghana. This ‘green lane’ is an agreement with of our personnel. Therefore our employees have good expertise and local customs authorities and ensures that all risks on safety, health, skills regarding fl ower farming. This has then also a fi nancial effect as economy and environment are taken care of in the complete chain our professional employees deliver good fl ower quality which results in from producer to importing company. This allows less checks and higher sales and less ‘failure’ in the supermarkets. These purchasers faster through-put times; extremely important for perishable goods. are then more interested in doing business with Sher and willing to pay Another great example, which is given on the left side, is the of our fractional higher prices. It cuts both customer Sher Ethiopia, a fl ower farm with social responsability Sher Ethiopia endeavors to create and enhance in all manners on in the heart of its related to CSR and the welfare of its workers. Good employees and the trust of our buyers are key elements but also the on time performance of airlines, as KLM, remains an important role for on time delivery which is crucial to our to local development61
AnnexesDIALOGUE WITH OUR STAKEHOLDERSGROUP’S STAKEHOLDERSMAIN ENGAGEMENT TOPICSMAIN ENGAGEMENT PATHWAYSOUTCOMES AND RESPONSES 2010-11• S hareholders• Financial information• Quarterly presentations to analysts• Results for improvement by questionnaires of non fi nancial rating agencies (VIGEO, SAM, • I nvestors• CSR performance• Dedicated fi nancial websiteEIRIS, CDP…)• F inancial partners• Shareholder Club• Other outcomes: see chapter ‘Our CSR • R ating agencies• Advisory Committee for individual shareholdersapproach’• Yearly General Shareholders’ Meeting:presentation of fi nancial and CSR performance• Annual publications• P assengers• Service quality• Customer satisfaction surveys• More than 500,000 customers questionnaires completed• C argo customers• Innovation• Materiality test• Feedback of passengers through CSR• A ircraft Maintenance • Security and fl ight • Dialogue through social mediaquestionnaire with Flying Blue memberscustomerssafety(Twitter, Facebook, Hyves) and other networks• Increased dialogue through social media• Awareness-raising on • Discussion panel and internet chats (InTouch)CSR issues• fb@home achieved 12,000 active participants• Dialogue with European Association of people • Climate change and with disabilities (European Disability Forum)• Onboard video on Air France’s CSR issuesCO reduction2• Working group on sustainable tourism• Air France Industries incorporated the ISO • Green maintenance26000 guidelines• Onboard movies about CSR topics• Other outcomes: see chapter ‘Building • Dedicated business communities . Club a sustainable relationship with our customers’Africa, Club China• E mployees• Working conditions• Perception surveys• In-house Air France poll of 6,000 staff each year. Annual Inter’face poll of 7,000 personnel • T rade unions• Training and mobility• Materiality testemployed outside the home countries• P rofessional• Health and• Intranet and internal newsletters and papers • Collective labour agreements (CLA) 2010 signed. associations occupational safety• Negotiations and signing of collective labourTalks with trade unions for innovative jointand bodies• Non-discriminationagreements with social partnersproposals for CLA 2011 (KLM)• Diversity• Participatory innovation programs at Air France: • Agreement on gender equality and agreement PIQ, Innovaction and QIS• Socialon prevention of psychosocial risks (Air France) dialogue• Regular meetings with governments, with the • CSR awarene• Corporate travel plan (Air France)ss-raising HALDE (French authority against discrimination) • Discussion blog with executives committee on human resources topics, discrimination, members and 2 web-conferences withoccupation safetyAir France CEO • Inter-company working groups (ORSE, ANVIE, • National French CSR week: internal forum and IMS...), with disability groups and the French conferences (Air France)National Federation of Marchant Aviation (FNAM)• Start of Lesbian Gay Bisexual Transgender • Work Council Committees on working(LGBT) Network initiated by employees (KLM)conditions, environment and on HR policies • Meeting by works council for all their members • Partnerships with universitiesin cooperation with management on just culture-safety policy (KLM)• Other outcomes: see chapter ‘Promoting a responsible human resources policy’• I nternational,• Climate change• Dialogue and joint actions with national air • Input to environmental and transport ministries European and Nationaltransport authoritieson ETS guidelines, and climate policies AF-KLM • CO reduction2authoritiesFrance and the Netherlands • Working group on New European Regulations • Environmental• C ertifi cation authoritieson passengers rights• Contribution of aviation industry at the ICAO managementst37 assembly• Draft proposals at AEA and IATA in particular for • Passengers rightsa global approach to climate change• Implementation of the Authority of Financial • Better knowledge Market (December 2nd 2010) – Grenelle 2• KLM follows up on Transportation Sectorof air transport issuesAgreement at Amsterdam Airport Schiphol• Working group AFNOR on ISO 26000• Carbon accounting• Dutch Taskforce Biodiversity• Working group on carbon footprint calculators and CO accounting (EPE, FNAM, OEET...)2• HQE (High Quality of Environment) and LEED (Leardership in Energy and Environmental • Other outcomes: see chapters ‘Our CSR Design) certifi cates for sustainable buildingsapproach ’and ‘Combating climate change’62Air France-KLM CSR report 2010-11
GROUP’S STAKEHOLDERSMAIN ENGAGEMENT TOPICSMAIN ENGAGEMENT PATHWAYSOUTCOMES AND RESPONSES 2010-11• S uppliers• Environmental and • Applying the Sustainability Charter • Working groups on onboard textile productssocial performancesand environmental clauses for tenders(Air France) and uniform upcycling (KLM)• CSR integration in the • Including suppliers in REACH• Working group with suppliers on environmental supply chain(Registration Evaluation and Authorization impacts organized at Group’s facilitiesfor CHemicals) monitoring• Eco-design• Launch of concierge services for Air France staff with sheltered sector• Local economic and social development• Other outcomes: see chapter ‘Our CSRapproach’ and ‘Building a sustainablerelationship with our customers’• A ir transport industry• Safety and security• SkyTeam CSR permanent working group• Joint declaration of SkyTeam members to sign UN Global Compact principles for new • A irports• Accessibility• Involvement Air France-KLM in SESAR JUmembers• A ir Navigation Service • Ground handling • Air France partner of SWAFEA and FCA• CSR SkyTeam meeting organized by Air France Providerservices(Future alternative fuels)(february 2011)• P rofessional• New aircrafts• Involvement of Air France in CORAC• Working groups with FNAM and GIFAS associations(Committee for civil aviation research)• Sustainable biofuelson environmental impactsfor aviation• Involvement of Air France-KLM in Sustainable • Other outcomes: see chapters ‘Our CSR Aviation Fuel Users Group (SAFUG), Support • CSR involvementapproach’ and ‘Combating climate change’the Roundtable of Sustainable Biofuels• Climate change• Sustainability Board of SkyNRG (JV of KLM, • Single European SkyNSG and Spring) with WWF-NL, Solidaridad, University of Utrecht• Dialogue with manufacturers and motorists to improve air quality and noise mitigation in line with ACARE• L ocal communities• Noise• Training and skills-sharing with local• Participation to Grand Roissy Assembly associations and working groups on Orly area• R esidents associations• Air quality• Roissy area development : 2 Air France staff • Air France contribution to the Grand Paris • L ocal economic • L ocal dialoguepart time dedicated to Pays de Roissy-CDG consultation processplayers• Social and economic association• 2 issues of “Le courier Air France”development • International promotion Roissy Area associations • The Alders Table reached an agreement by • Better knowledge (Aerotropolis, Hubstart, CAREX, ASTEch)fi nding a sustainable balance between growth of air transport issues(Air France)in number of movements and the ongoing• Member of the CCE and CCAR of the 10 biggest implementation of measures to reduce noise French airports• White Paper on air transport endorsed by • KLM involvement in Alders Table and CROS Dutch Parliament(Schiphol Review Board)• Other outcomes: see chapter ‘Minimizing• Cooperation in NS Hispeed (KLM)environmental impacts’ and ‘Contributing to local development’• Working visits and tours at Air France and KLM facilities• AIDA programme and IAMA institute (Air France)• S cientifi c community • Climate change• IAGOS Program (Air France)• First data-batch produced by University of Amsterdam as part of 5-year study in work • U niversities• Operational• Research Technical University Delft (KLM)related to health issues (KLM)procedures• R esearch experts• Support of studies from University Amsterdam • Research programs on alternative fuels• Technological• Membership in IDUT and supporting the chair performance• Pilot started on sustainable tourism with IDH Sustainable Tourism of Wageningen Universityand tour operators• Other outcomes: see chapter ‘Combating climate change’• E nvironmental NGOs• Climate change• KLM Partnership with WWF-NL • Partnership with Landschap Noord Holland to support conservation work in the Schiphol • Fighting against• Air France funds programme to combatregion deforestationdeforestation run by GoodPlanet and WWF in Madagascar• Other outcomes: see chapter ‘Combating • Biodiversityclimate change’• KLM Participation in IUCN (International Union • Partnershipsfor Conservation of Nature)• H umanitarian • Humanitarian and • Sponsoring of humanitarian, educational and • Stakeholder round table held withand development development programschildren projects: Air France Foundation,7 humanitarian NGOs with the objective NGOsActing for Life, KLM AirCaresto further shape social policies (KLM)• Donation of tickets and free transport• Opening of the new Samu social centre in Dakar with Air France Foundation• Group’s employees initiatives: Friends of the Air France Foundation, Wings of Support,• Other outcomes: see chapter ‘Contributing Aviation without Borders (France and NL)…to local development’• Onboard video space for NGO’s, ECPATawareness campaign (Air France)Annexes63
AIR FRANCE-KLM GROUPThe table presents the Air France-KLM structure and main subsidiaries over which the Group has at least 50% control, whose acquisition dates back at least one full year and which have a signifi cant number of FranceBrit AirPassenger transport, ACNACityJetMaintenance, CargoBruno PegorierVLM AirlinesOATRegionalServair SAServair GroupCPATransaviaBase handlingBlueLinkPasserelleCRMASodexiKLMKLM Cityhopper France-KLMPassenger transport, Transavia Airlines , CargoKLM Catering Services Schiphol c Ground Solutions Equipment Services Health Services UK Engineering Holland Aviation Services Luchtvaart School CateringAircraftCall centerMedicalAssistance Trainingtransport (logistic orservicescleaningservicesto passengers freight transport)having limited mobilityGROUP’S FLEETOperational aircraft as of 31 March 2011: 593Average fl eet age: yearsAir France GroupKLM GroupAverage ageNumber Average ageNumber (years)Type of aircraftof aircrafts(years)Type of aircraftof in total389 in in total204 in totalA318, A319737-300/-400/Short and , A321-700/-800/-900A380, -200/-30063777-200/-300MD11, fl eetFokkerAF: Brit Air, Régional, F70, ,, VLMEMB190BombardierKLM: CityhopperOther fl eet737-700/-800AF: Transavia : , 747-200/-400MartinairMD1164Air France-KLM CSR report 2010-11
GLOBAL COMPACT ON COMMUNICATION ON PROGRESSAir France-KLM established a Corporate Social Responsibility Statement which covers the ten principles of the United Nations Global Compact. Below an overview of where the information is located in the report regarding these principles and where additional information can be COMPACT PRINCIPLEPAGESEXTRA INFORMATION AVAILABLE OUTSIDE THE CSR REPORTSOURCEHuman Rights (1 & 2)13, 20, 51-53Air France-KLM Social Rights and Ethics CharterIn-house documents, Air France website: clause on labour protection, and Sustainability developmentCharter for suppliersKLM website: Law (3, 4, 5 & 6)46-53Air France: Charters for the prevention of harassment In-house documents, Air France at the workplace, for Occupational Safety and Accident and KLM websitesprevention, Agreement on psychological and social risksAir France-KLM Reference DocumentKLM: preamble of the Collective Labor Agreement, 2010-11 (pages 74-81)Occupational Health & Safety Policy StatementEnvironment (7, 8 & 9)22-37Code for Good Environmental Practices (GEP)In-house documents, Air France and KLM websitesEnvironmental protection clause for suppliers Air France-KLM Reference Document2010-11 (pages 92-101)Fight against Corruption16-17, 20Air France-KLM Financial Code of EthicsIn-house documents, Air France and KLM websitesCode of Ethics to be signed by Air France and KLM buyersAir France-KLM Reference Document2010-11 (pages 15-16)Whistle blower proceduresKLM Code of ConductGRI CORRESPONDENCE TABLEGRI 3 principles and recommendations were taken into account for the writing of this report. GRI has performed the Application Level Check to show to which extent the GRI guidelines have been utilized in the report. The check confi rmed the A Level. The complete GRI indicators table can be found on the Air France and KLM websites: and PRINCIPLESPages Main chapters of the reportof the reportKey Figures & Content2-3 Foreword4-5 Challenging dynamics in the 6-11 air transport industryOur approach to Corporate 12-21 Social ResponsibilityCombating climate change22-29 Minimizing our 30-37 environmental impactsBuilding a sustainable relationship with our 38-45 customersPromoting a responsible 46-53 human resources policyContributing to local 54-61 developementAnnexes61-71 Annexes65Strategy and AnalysisOrganizational profileReport ParametersGovernance, Commitments and EngagementEconomic performanceindicatorsEnvironmental performance indicatorsSocial; Labor Practices & Decent work Human Rights performance indicators Society performance indicatorsProduct reponsibilityperformance indicatorsSector supplementindicators
NOTE ON THE METHODOLOGY FOR THE REPORTING OF THE ENVIRONMENTAL INDICATORSIn 2005-06, under the aegis of the Air France-KLM Group’s have a signifi cant impact on the data, comparison with the fi gures Consumption of other energiesDisclosure Committee, and validated by the college of Statutory for previous years is not the energy consumption for heating and cooling was published in Auditors, the Group’s environmental performance indicators were Air operationsprevious years. To be as exhaustive as possible, a new indicator was defi ned in order to comply with the requirements of the French COemissionsreported in 2010, including the different sources of energy consumed:2 New Economic Regulations law (Les Nouvelles Régulations The decrease for the Group between 2009 and 2010 is proportional - Natural gas for heating buildings and cooking (catering activity Économiques, NRE, May 15, 2001) and the European Regulation to the decrease in Jet Fuel consumption which is a consequence in particular). The conversion factor of the quantity of gas used (EC 809/2004).of the unfavorable economic context and the lower level of activity, as energy is calculated by taking into account the quality of gas As of the 2007-08 fi nancial year, the Group chose to have a as in c to France and the Netherlands. The consumption of gas selection of environmental indicators (indicated by the symbols √ Note that the increase for the KLM Group relates to the inclusion increased by 25% between 2009 and 2010 for the Air France and √ √) verifi ed by one of the Statutory Auditors, KPMG Audit, of the Transavia and Martinair subsidiaries in the 2010 , due to the cold winter and the inclusion of the Le Bourget 1with the highest level of assurance, reasonable assurance, for fuel Note that there are differences between the scope of the CO entity for the fi rst time in and related CO emissions for air operations (√ √) emissions and those of the European Trading Scheme for - S uperheated and iced water for climate comfort. For Air France, 21and a limited level of assurance for the other verifi ed indicators (√).greenhouse emission quotas (EU-ETS), which do not enable a superheated and iced water is supplied by ADP (Aéroports de ) at the Orly and Roissy sites and is used, respectively, for 1/ Scope SOemissionsheating and cooling. KLM is not Scope covered and scope N-1 The calculation is based on the sulphur content of the fuel loaded, - Jet fuel A1 for testing the air operations, the scope is identical to last year and on the Amsterdam and Paris platforms, which is applied to all fuel - Domestic Fuel Oil (DFO) for power generators and ground support covers:used during the year by KLM and Air France .- All the commercial fl ights operated by Air France and its The decrease in SO emissions for the Group between 2009 and - Petrol and diesel fuel for vehicles and coaches as well as for 2subsidiaries Britair, Régional and CityJet. The fl ights operated by 2010 is mainly due to a lower average sulphur content in the fuel ground support France have been excluded;supplied in 2010 compared to increase between 2009 and 2010 is mainly due to the inclusion - All the commercial fl ights operated by KLM and its subsidiary NO and HC emissionsof these energy Cityhopper (KLC). In 2010, fl ights operated by subsidiaries Total EmissionsFor now, the indicator for KLM Group only includes energy Transavia and Martinair have been included in the indicators Air France: In 2009, a specifi c tool was developed to calculate the consumption for heating and cooling but the scope of this indicator of total fuel consumed, and for CO and SO air emissions, emissions of NO and HC more be expanded in future to include other sources of energy in line 22xexcluding low altitude emissions for Air France have been reported; the subsidiaries, with the new defi the ground operations, the consolidation scope for the included in the previous tool in 2008, will be included in the new Emissions from ground operations (CO, SO and NO)22Xenvironmental reporting includes:tool in future. CO, SO and NO emissions and their trends are relative to the 22x- All the entities of Air France and KLM located, respectively, in The calculation methodology is based on the fuel fl ow 2 methodo-energy consumption listed and The Netherlands. The international outstations are not logy by Boeing. For more than 75% of the fl ights, recorded data has For Air France, the sharp decrease in SO emissions is due to a 2taken into account;been used to calculate emissions specifi c to each fl ight. Emissions more precise calculation of the fuel consumed in power generators. - The Air France consolidated subsidiaries are Brit Air, Regional, for other fl ights were estimated from the calculated average fl ight NO emissions related to engine testing are based on a similar xCRMA, Sodexi, Servair and its subsidiaries (only the activities emissions. For these fl ights, a less precise estimation method was methodology as the one used for fl ight operations and refl ects the in France). VLM, Bluelink, Transavia France and CityJet are not used in 2010 than in 2009. However, the impact on the published actual testing in the consolidation is not signifi cant. VOC EmissionsMoreover, for Air France, indicators in the domestic outstations The A380 and B777-300 leisure aircraft, which represent less than VOC Emissions are calculated based on the direct emissions of are not reported when the fi xed charges invoiced by airports do % of the Air France fl ights, are not currently taken into account solvents contained in the products used; VOC contained in removal not provide detailed information. The contribution of the domestic in the are affected by this issue is, however, marginal compared KLM: Two distinct methodologies are applied to calculate NO and For Air France, the reporting scope has been extended to include xwith the published emissions depending on the aircraft: the fuel fl ow methodology third-party orders as well as paint kits. The increase between 2009 Concerning the Air France Group, the reporting scope is based on and the P3T3 methodology developed by General Electric. In and 2010 is mainly due to a more precise estimation methodology worldwide premises representing 88% of the years, KLM also reported jettisoned fuel in the HC to calculate the VOC contained in KLM consolidated subsidiaries are KLC (KLM CityHopper), emissions. With the increased harmonization of the Air France and HC EmissionsKES (KLM Equipment Services), KCS (KLM Catering Services) KLM defi nitions, the 2008 and 2009 fi gures for HC emissions now Hydrocarbon (HC) emissions include the emissions from vehicles and KHS (KLM Health Services). Transavia (NL) and Martinair exclude fuel ground support equipment, engine testing and aircraft been excluded from the KLM reporting scope for most of Low altitude Emissions Hazardous Industrial Wastethe methodology used for the calculation of low altitude emissions The quantity of hazardous waste which has not been communicated The reporting period for the Group’s environmental data is based is based on the LTO (Landing-Takeoff) cycle and on engine data by service providers at the end of the reporting campaign is not 3on the calendar year to ensure consistency with national fi gures communicated by the ICAO. Taxiing time taken into account is the taken into account. This is, however, estimated to be greenhouse gas emissions and French law, unlike fi nancial actual taxiing time, which is more precise than standard values The nature of recycled hazardous waste is determined based on reporting which is based on the IATA year (April 1 to March 31).recommended by the ICAO standards. In-fl ight fuel jettisonFor Air France, the rate of recycling of hazardous waste in 2009 2/ Reporting toolsAn exceptional operation (approximately one fl ight in 10,000 in has been updated due to a correction in a fi gure from a environmental indicators are assembled at local level via 2010) involving the jettisoning of a quantity of fuel in fl ight to avoid For KLM, the percentage mentioned refl ects hazardous waste two reporting tools: Osyris (Enablon software) for Air France an overloaded plane on landing whenever a fl ight is aborted. Each that has been recovered for continued use of the substances. The and CaeSaR for KLM, which are available respectively at eachoperation is effected in close coordination with air traffi c control sharp increase between 2009 and 2010 is due to a waste stream Air France and KLM strict conditions governing geographical location (avoiding following an incident when extinguisher water was identifi ed as The reliability of the reporting process is supported by defi nitions urban zones) and altitude (generally at or above 2,000 meters).hazardous by the waste each indicator and user guides for contributors available Total noise energy Effl uentsin both French and English. Consistency tests have also been This indicator was implemented by the Air France-KLM Group to Both Air France and KLM entities are required to comply with the the evolution in the noise footprint of its activity. The total regulations on effl uents in each country. Each site has regulatory The consolidation of the Air France-KLM Group’s environmental noise energy indicator is calculated according to the methodology limits on effl uents and the frequency of is carried out by the Air France sustainable development defi ned by the DGAC. It applies to all fl ights with the AF or KLM Given the different thresholds and frequencies of measurement code operated, franchised and chartered, code share between one site or country and another, and due to the very readings depending on the measurement, the defi nition of 3/ Details and methodology, comments on variationsThe fi gures are determined by comparing total noise energy the indicators has been modifi ed. Since 2009, the number of times At Air France-KLM Group level, the regulatory requirements calculated for the calendar year with that of 2000. The KLM fi gures regulatory thresholds were exceeded relative to the number of and the reporting and consolidation principles are outlined in a for 2008 and 2009 have been updated following a correction in the measurements has been taken into account for each type of effl entitled the Instruction Memo Environment, which is calculation of the Global noise energy 2010, the results, expressed in terms of the number of times updated annually. The assembly of data, calculation methodologies regulatory limits are exceeded as a proportion of measurements and operational consolidation are defi ned in procedures which are Ground operationswere, respectively:specifi c to Air France and KLM, but which are harmonized, insofar Water consumption- For Air France, 0/10 for Nitrogen compounds, 0/100 for Phosphorus as local regulations consumption of water is taken into account for all ground compounds and 0/692 for the framework of an approach based on continuous activities. Water used on board fl ights is not included. In previous - For KLM, 0/52 for Nitrogen compounds, 0/52 for Phosphorus improvement, the methodologies used for certain performance years, KLM included part of the water taken onboard but this was compounds and 0/364 for have been more precisely defi ned. When these changes excluded in that the metals reported are Cr, Cd, Ni, Cu, Pb, Sn and The review work was conducted in accordance with the International Standard for Assurance Engagements (ISAE 3000), specifi c to extra-fi nancial data verifi Baughcum, S. L., et al. ‘Scheduled Civil Aircraft Emissions Inventories for 1992: Database Development and Analaysis, Appendix D: Boeing Method 2 Fuel Flow Methodology Description.’ Report NASA CR 4700, The Boeing Company, April International Civil Aviation Direction Générale de l’Aviation France-KLM CSR report 2010-11
ENVIRONMENTAL INDICATORSAir Operations(1)(2)Air France KLM GroupAir France Group KLM Group Unit20082009201010/0920082009201010/0920082009201010/09ConsumptionsConsumption of raw materials: fuel √ √000 tonnes8,7328,0218,%5,5115,0364,%3,2212,9853,%EmissionsGreenhouse gasCO √ √000 tonnes27,50625,26926,%17,36015,86515,%10,1469,40411,%2emissionsNO√000 %%%X Emissions of substances NO low altitude X000 %%%contributing (< 3,000 ft) √to acidification SO √000 %%%2and eutrophicationSO low altitude 2000 %%%(< 3,000 ft) √Occurences of fuel jettison √%%%In-flight fuel jettisonFuel jettisoned √tonnes1,8041,9791,%1,1841,3811,%%(3)(3)HC √000 %%%Other emissionsHC low altitude 000 %%%(< 3,000 ft) √Noise impact12(4)(4)Global noise energy indicator √10 %%%√: Figures verifi ed by KPMG for 2010 (limited level of assurance).(1) Perimeter Air France Group: all fl ights under AF code operated by Air France, Brit Air, Régional and CityJet. Flights operated by Transavia France are excluded.√ √: Figures verifi ed by KPMG for 2010 (reasonable level of assurance).(2) Perimeter KLM Group: all fl ights operated by KLM and KLM Cityhopper. Transavia and Martinair are excluded for HC and NO emissions. They are included for xthe fi rst time in 2010 for fuel consumption, CO and SO emissions (exception of low altitude emissions).22(3) The fi gures have been updated to enable some comparison between Air France and KLM (fuel jettisoned excluded in this category).(4) The fi gures have been updated due to a mistake found in the Noise Energy calculation operations(1)(2)Air France KLM GroupAir France Group KLM Group Unit20082009201010/0920082009201010/0920082009201010 / 09Consumptions3(3)Water consumption √000 m1,%%%Electricity consumption √MWh417,990421,581416,%320,991327,094321,%97,00094,48794,%(4)Other energies consumption √MWh336,761327,150470,,782232,172367,,97994,978102,%EmissionsGreenhouse gas emissions CO √tonnes89,83384,290 92,%43,35737,39647,%46,47646,89444,%2Emissions of volatileEmissions of substances %%%organic compounds √contributing to photochemical pollutionEmissions of HC %%%Emissions of substances NO √%%%Xcontributing to acidification SO √%%%2and eutrophicationWasteQuantity of non-hazardous tonnes61,05461,06758,%43,23742,66442,%17,81718,40316,%industrial waste √Quantity of hazardous Waste productiontonnes6,0845,9615,%5,0064,8394,%1,0781,1221,%industrial waste √% of hazardous industrial (5) (5)%48%45%47%2 pp40%36%36%0 pp84%84%84%0 ppwaste recovered √Effluents(6)(6)(6)Nitrogen compounds √%7,03093%100%+7 pp6,89090%100%+10 pp14096%100%+4 ppCompliance rate of effluents (6)(6)(6)Phosphorus compounds √%1,659100%100%0 pp1,658100%100%0 %100%0 ppwith regulatory limits(7)(6)(6)(6)Metals √%14499%100%+1 pp14199%100%+1 %100%0 pp√:Figures verified by KPMG for 2010 (limited level of assurance).(4) In 2008 and 2009, were inculded energy consumptions for cooling and heating: natural gas, fuel oil, iced water and .: not water. In 2010, Air France Group reports also natural gas and fuel oil other than for heating and cooling, .: not and diesel for vehicles and ground support equipments, and jet A1 for testing engines. KLM Group remains on (1) Air France and subsidiaries: Régional, Brit Air, Servair and its subsidiaries (France only), Sodexi and CRMA. CityJet,scope Link, VLM and Transavia France are not included.(5) The data was updated as a result of adjustments made to a subsidiary.(2) KLM and its subsidiaries: KLM CityHopper (KLC), KLM Equipment Services (KES), KLM Catering Services (KCS) and KLM (6) Quantities discharged in effl uents in Services (KHS). Transavia and Martinair are partially included.(7) Cr, Cd, Ni, Cu, Pb, Sn and Zn.(3) Water consumption KLM included onboard drinking water in previous years. This has now been
NOTE ON THE METHODOLOGY FOR THE REPORTING OF THE SOCIAL PERFORMANCE INDICATORSIn 2005-06, under the aegis of the Disclosure Committee, and Note 2: Expatriate staff is included in the total number of of hours of exposure to occupational risks within the validated by the college of Statutory Auditors, the Air France-KLM The number of Air France-KLM Group employees fell by %, the framework of their activity on the ground and in fl ’s social performance indicators were defi ned in order to comply result of all the measures taken in response to the economic crisis The increase in the frequency and severity rates between 2009 and with the requirements of the French New Economic Regulations law such as the hiring freeze or the review of posts to establish whether 2010 is mostly explained by the change in reporting methodology for (Les Nouvelles Régulations Économiques, NRE, May 15, 2001) and or not replacements would be appointed in the event of departures. the hours worked by ground staff (theoretical hours worked in 2009 the European Regulation (EC 800/2004).A voluntary redundancy plan for Air France ground staff was also versus paid hours worked in 2010).Since the 2007-08 fi nancial year, the Group has chosen to have a deployed across the French and KLM subsidiaries: The frequency and severity rates are number of its principal social indicators verifi ed by one of the Statutory The number of KLM employees declined in 2010 given the ongoing calculated based on the theoretical hours , KPMG Audit. These indicators are shown by the symbol √ measures aimed at freezing recruitment. There were no new hires KLM subsidiaries: Note 3: Linked to the lack of homogeneity in the in the tables on page 69. They are the subject of verifi cation with a to fi ll the posts falling vacant due to retirement departures or process for monitoring the data, the health and safety data of the 1limited level of , unless required for reasons of departmental continuity. KLM subsidiaries are calculated without the Cobalt Ground Solutions In certain cases, permanent contracts were offered to employees Reporting scopehaving reached the end of a second short-term contract within KLM. TrainingThe Air France-KLM Group’s social reporting consolidation scope is Note 3: Employees on permanent contracts are calculated excluding Air France and Air France subsidiaries:based on the number of employees (expressed as headcount) on the expatriate staff. Note 3: The Percentage of payroll devoted to training indicator payroll at the end of the calendar year. Recruitment on permanent contractscorresponds to the overall costs linked to professional training (payroll The NRE reporting scope covers 96% of the average employees in The indicator concerns only employees hired on permanent contracts relating to staff immobilized by training, fi xed functioning costs, the Air France-KLM Group at the end of the calendar year, expressed (CDI).external costs, accommodation, mandatory payments, etc.) over the in full-time Air France, the calculation of the number of employees recruited total payroll. These estimated costs are reported in the 2483 French The subsidiaries of Air France and KLM over which the Group has on permanent contracts includes those initially recruited on a fi xed-Regulatory Declaration relating to company contributions to least 50% control, whose acquisition dates back at least one full term contract transferring to a permanent contract during the Number of training hours by employee and Participation year and which have at least 300 employees are included in this NRE For KLM, only employees recruited directly on a permanent contract rate indicators are calculated based on all the training sessions, social reporting taken into of whether or not their nature requires them to be Note that the number of employees for Air France and KLM comprises Recruitment on fi xed-term contractsincluded in the 2483 French Regulatory entire workforce including staff employed indicator was added to the reporting in 2010. At KLM, some In 2010, following the hiring freeze, the reduction in the number of The number of employees for the subsidiaries of Air France and KLM of the recruitment on fi xed-term was justifi ed by the fact that, in employees and the optimization of the training offer, the need for comprise only all their employees located respectively in France and certain cases, the occupancy of the post was vital but the fi nancial internal training was Netherlands, with the exception of CityJet and VLM all of whose situation did not enable the company to guarantee employment on The number of ground staff transferring to cabin crew positions also employees are permanent (200 hours of training per transfer).- For 2010, the Air France consolidated subsidiaries are: BlueLink, Departures For fl ight deck crew, each change of aircraft type involves specifi c Brit Air, CityJet, VLM, CRMA, Régional, Servair Group (ACNA, Bruno Note 4: The other leavings indicator has been added for the 2010 training. The fall in recruitment and internal mobility led to a reduction Pegorier, OAT, Servair SA, CPA, Passerelle and Base Handling), reporting and notably includes expected retirement departures, the in new aircraft qualifi cations meaning a signifi cant fall in training Sodexi and Transavia France, representing 76% of the employees non-renewal of contracts during the trial period and departures linked hours. of the subsidiaries in the Air France Group (average employees in to the voluntary redundancy plan. Due to an increase in the level of activity in production centers such as full time equivalent).For Air France, a signifi cant number of departures for other reasons call centers linked to a several instances of major operating disruption - I n 2010, this scope was extended to two new subsidiaries: Base is linked to the voluntary redundancy plan for ground staff across (volcanic eruption in April 2010, heavy snowfall in December 2010; Handling and Passerelle (in the Servair Group). the French scope. etc.) some of the training foreseen in the training plan was unable - For 2010, the KLM consolidated subsidiaries are: Cygnifi c, Cobalt For KLM, the employment situation looks to be stabilizing given the to be carried Solutions, KLM UK Engineering limited, KLM Cityhopper economic environment and the specifi c situation of air 5: the data for the Air France subsidiaries have been calculated (UK and .), Transavia, KLM Catering Services Schiphol . and Percentage of women - Organization of working timewithout Transavia , representing 93% of the employees in the subsidiaries of Note 5: The indicators linked with the proportion of women and the KLM and KLM subsidiaries: KLM does not currently have a the KLM Group (average employees in full time equivalent).organization of working time are including both permanent and fi xed-centralized reporting system solely for the costs of training in KLM - I n 2010, the reporting scope of the KLM subsidiaries was term contracts at December 31 of the reference year. and its subsidiaries although this indicator is now reported. Note that changed with the withdrawal of two subsidiaries, KES (KLM Other social data tables the disclosure of this information is not required by Dutch Services) and KHS (KLM Health Services) due to the The indicators reported in the other social data tables are subject Note 4: KLM and its subsidiaries have reported data on the costs fall in the number of employees in these subsidiaries to below the to different qualifi cation and legal reporting obligations in relating to professional training since 2009. This year, the Percentage 300 threshold required for the reporting of the NRE social data. France and the Netherlands, which means they are not comparable of total payroll devoted to training indicator has been added to the The reporting period for the Group’s social data is based on the and need to be presented separately for Air France and KLM. Thetraining indicators year to ensure consistency with the social performance subsidiaries concerned in these tables are listed in the reporting Over 2010 as a whole, the cost of vocational training increased, indicators of other French companies. Note that the reporting of scope section above. showing that KLM has not sought to save money in this nancial information is based on the IATA year (April 1 to March 31). Health and safety in the workplace - Absenteeism Number of disabled employees Cases of barometric otitis and musculoskeletal disorders are recorded Air France and Air France subsidiaries: For Air France, the number 2/ Reporting toolsas work-related accidents in France and represent much of the work-of disabled employees reported corresponds to those for whom a valid The indicators are compiled and consolidated using the Osyris related accidents reported by Air France in 2010, whereas they are certifi cate, pursuant to French law (DOETH ), is available, whatever software package developed by the company Enablon and deployed recorded as sick leave by KLM, pursuant to Dutch ability to perform the tasks involved in their position. Note that across the entire reporting scope. The reliability of the reporting Air France: The absenteeism rates are calculated on the basis of the data for international employees is reported based on local process is supported by precise defi nitions of each indicator and user a ratio of the hours of absence divided by the hours theoretically for contributors to the Osyris tool, available in both French and 4: For Air France: the increase in the number of employees with English. Consistency tests have also been incorporated within the tool. Note 1: The increase in the rate of absenteeism is mostly linked to disabilities and the disabled employment rate at Air France is notably The data is verifi ed and approved locally at the level of each subsidiary a more detailed calculation of the hours worked by fl ight crew from explained by signifi cantly higher recourse to the protected sector. by a local verifi er who is responsible for the HR statistical , as of 2010, have been deduced the statutory number of employees with disabilities remained stable despite This system is supplemented by a general reporting procedure which KLM:the retirement departures; thirty employees were recruited despite defi nes the process for compiling, calculating and consolidating the Note 1: The calculation was changed in 2010 in order to come into the external hiring freeze in application of the 2009-11 three-year indicators, based on an instruction memorandum circulated by theline with that of the government body responsible for recording the France-KLM Group’s Finance rate of absenteeism (Centraal Bureau voor de Statistiek) and Note that the number of employees with disabilities corresponds to the The consolidation of the Air France-KLM Group’s social data is carried includes the monitoring procedures to protect the quality of recorded number of permanent and fi xed-term contracts signed during the year; out by Air France’s Sustainable Development , which led to a slight increase in the rate of employee recruited on a fi xed-term contract who then transfers to a A calculation error was also noticed in the rate of absenteeism in the permanent contract during the year will be reported Details and methodology - Commentary on changes in previous years: the data prior to 2010 should be around 17% higher Note 6: For the Air France subsidiaries: The increase in the number the indicatorsthan the reported fi employees with disabilities in the subsidiaries is explained by the The notes below refer to the references in the tables on page 69. Health and safety - work-related accidentsincrease in the reporting scope and by a pro-active policy on the hiring Consolidated NRE social data for the Air France-KLM There are signifi cant differences in reporting methods for work-related of persons with disabilities, particularly at the Servair Group which has Group table accidents between France and the Netherlands (see paragraph on signed a specifi c agreement in this table presents the indicators relating to employees, recruitment, absenteeism). KLM and KLM subsidiaries: For KLM, an individual is considered departures, the proportion of women employees and those working Air France: Air France’s defi nition of workplace accidents with days to be disabled if unable to carry out his or her work or any other part time. These indicators are consolidated at the level of thelost is in line with the defi nition under French law (at least one day of work at an equivalent salary level. This requires the employer and the Air France-KLM from work).employee to look for another position with a salary as near as possible Employees After a signifi cant decline in work-related accidents in recent years, to the previous level and gives the employee the right to get govern-Note 1: Number of people employed by the Group (expressed as there was an increase in benefi ts to compensate for the possible ) on both permanent (CDI) and fi xed-term contracts (CDD) In 2011 the outlook will depend on the results of a major managerial Note 2: Due to a change in Dutch law, the number of disabled at December 31 in the reference year. In 2010, the Group’s reporting initiative including the deployment of a safety in the workplace status employees working for KLM declined between 2009 and was extended to include two new subsidiaries in the Servair report in the management committees, team meetings, briefi ngs and The data for the KLM subsidiaries have been calculated without Group: Base Handling and Passerelle, . 611 FTE employees (Full an action plan based on the sharing of best practices in the prevention Equivalent). Two KLM subsidiaries were withdrawn from theof work-related accidents. Collective agreements signed reporting scope due to the fall in the number of employees to below Note 2: The frequency and severity rates are calculated based on:The agreements signed were verifi ed for the fi rst time in 300 threshold: KES (KLM Equipment Services) and KHS (KLM - or ground staff, the actual paid hours worked;In 2010, KLM signed a protocol covering three new collective Health Services), . 432 FTE employees (Full Time Equivalent).- for fl ight crews, the hours of commitment, corresponding to theagreements which will expire in September T he review work was conducted in accordance with the International Standard on Assurance Engagements (ISAE 3000), specifi c to the verifi cation of extra-fi nancial data verifi A nnual declaration mandatory under French law. 68Air France-KLM CSR report 2010-11
SOCIAL INDICATORSConsolidated social data for Air France-KLM Group(1)NRE social data Air France-KLM groupAir France group*KLM Group** Headcount at 31/12 (permanent contracts Total Air France Groupfrom which Air France Total KL Groupfrom which KLand fixed-term contracts)20820920110/9209201209201209201209201Scope of NRE social reporting √96%96%96%%95%95%100%100%99%98%100%100%(2)Total staff √ 110,878108,367105,%72,19170,72260,68658,48536,17635,20628,70028,383Ground staff 75,66873,01570,%50,33348,97941,33339,22822,68221,76817,66817,236Cabin crew26,30826,12126,%16,29016,29715,08115,0839,8319,8478,3258,491Cockpit crew8,9029,2319,%5,5685,4464,2724,1743,6633,5912,7072,656 (3)Staff under permanent contract √ 104,601104,425102,%70,34268,72759,50657,33634,08333,31827,70027,392Recruitments under permanent contractGround staff2,5941,3151,202-9%819901440453499301169143Cabin crew99511112412%995299712721270Cockpit crew69113657-58%13357114373030Total √4,2801,5621,383-11%1,0511,010653497514373184213Recruitments under limited contract √,, staff4,8046,2326,82610%4,3035,4482,6653,5331,9291,3781,089765Cabin crew1,0471,4351,70919%737880628678698829189251Cockpit crew35524628114%18121115116865705050 (4)Total leavings √ 6,2067,9138,81611%5,2216,5393,4444,3792,6922,2771,3281,066of which resignations √3,0111,7951,728-4%7367445345251,059984662439of which redundancies (incl. Economic) √1,2081,177662-44%6314483742635462148952of which retirements √1,8521,6441,583-4%1,2861,1861,0991,132358397326370of which deaths √135155129-17%114951008541343427of which other leavings √,,, (5)Percentage of women at 31/12 √ %%%%%%%%%%%%Ground %%%%%%%%%%%%Cabin %%%%%%%%%%%%Cockpit %%%%%%%%%%%%(5)Part time employment at 31/12 Percentage of females part-time employees √%%%%%%%%%%%%Percentage of males part-time employees √%%%%%%%%%%%%Percentage of part time employees √%%%%%%%%%%%%√: indicators verified by KPMG for 2010 (limited level of assurance).Other social data for the Group Air France (according to local legislation).: Not available* Air France Group: Air France and Air France France (100% of the staff headcount, registered and payed)*Air France subsidiaries: Brit Air, BlueLink, CRMA, CityJet, VLM, Régional, Sodexi, Transavia France and Servair Group: (1)Absenteeism 2009201010/09ACNA, Bruno Pegorier, OAT, Servair SA, CPA, Passerelle, Base Handling.** KLM Group: KLM and KLM to illness KLM subsidiaries: Cygnifi c, Cobalt Ground Solutions, KLM Cityhopper (UK and BV), Transavia, KLM Catering Services Ground staff √%%13%Schipol ., KLM UK Engineering Limited and crew √%%28%Cockpit crew √%%27%Due to work accidents Ground staff √%%17%Other data for KLM (according to local legislation)Cabin crew √%%27%Cockpit crew √%%-28%KLM (100% of the staff headcount, registered and payed)*(1)Maternity leaveAbsenteeism 2009201010/09Ground staff √%%12%Due to illnessCabin crew √%%42%Ground staff √%%37%Cockpit crew √%%32%Cabin crew √%%22%Health and safetyCockpit crew √%%11%Total workplace accidents √2,3882,4543%Maternity leaveNumber of fatal workplace accidents √ 132-85%Ground staff √%%40%(2)Frequency rate of workplace accidents √ %Cabin crew √%%15%(2)Severity rate of workplace accidents √ %Cockpit crew √%%40%(3)Training Health and safety Percentage of total payroll devoted to training √%%-4%Total workplace accidents √252225-11%Ground staff √%%0%Number of fatal workplace accidents √000Cabin crew √%%-4%Frequency rate for workplace accidents √-9%Cockpit crew √%%-7%Severity rate of workplace accidents √%Number of training hours by employee √3431-10%Disabled staff (2)Ground staff √2725-6%Total staff with disabilities √ 713641-10%(4)Cabin crew √3731-17%Training Cockpit crew √9682-15%% of wage bill devoted to training . % Participation rate (number of agents trained/workforce) √92%90%-2%Total trainingcosts in kt √60,84762,6673%Ground staff √88%86%-2%Total training costs in t per full time equivalent √2,5002,6456%Cabin crew √100%100%0%Collective agreements √33Cockpit crew √100%100%0%* KLM: Data concerns KLM without international staff.(4)Disabled staff Total staff with disabilities √1,4471,60211%KLM SubsidiariesRatio of disabled staff (under French law) √%%9% 2009201010/09Total staff with disabilities recruited during year √730329Scope of reporting for KLM subsidiaries97%93%-4%(3)Collective agreements √1619Health and safety * Data in italics concerns only Air France in Continental France and the French overseas workplace accidents √14919934%Number of fatal workplace accidents √000Subsidiaries Air FranceFrequency rate for workplace accidents √%2009201010/09Severity rate of workplace accidents √%Scope of reporting for Air France subsidiaries 73%76%4%Disabled staff(2)Health and safetyTotal staff with disabilities √ 7666-13%(4)Total workplace accidents √9319441%Training (3) (5)Training % of wage bill devoted to training . %Participation rate (number of agents trained/workforce) √90%96%7%Total training costs in kt √18,05422,58425%Total training costs in t per full time equivalent √2,1432,78230%Ground staff √88%96%9%Collective agreements √61Cabin crew √92%97%5%Cockpit crew √99%98%-1%√ : indicators verified by KPMG for 2010 (limited level of assurance)..: not of training hours by employee √2524-2%Ground staff √19190%Cabin crew √30313%Cockpit crew √6055-8%(6)Disabled staff Total staff with disabilities √38543413%Total staff with disabilities recruited during year √384724%Collective agreements √3525 Annexes69
ONE OF THE STATUTORY AUDITORS’ REPORT ON A SELECTION OF ENVIRONMENTAL AND SOCIAL INDICATORS OF AIR FRANCE-KLM GROUP FOR YEAR ENDED DECEMBER 31, 2010As requested and in our capacity as Statutory Auditors of Air France-KLM extensive specifi cally concerning tests on spot check basis and enables us Group, we performed a review in the aim of providing: to provide a reasonable level of assurance.• A limited level of assurance on a selection of environmental and social We were assisted in our work by the Environment and Sustainable Development professionals of our fi for the year ended December 31, 2010 selected by Air France-KLM Group and identifi ed by the symbol √.Comments on the Group’s reporting Protocol and implementation• A reasonable level of assurance on the indicators ‘fuel consumption’ and Based on the work performed, the following comments were made on the ‘CO emissions’ related to air operations for the year ended December 2reporting Protocol and its implementation:31, 2010, identifi ed by the symbol √ √. • Due to differences between legislative frameworks, the defi nitions of This selection of indicators (‘the Data’) is presented in the tables some social indicators are different between Air France and KLM. The ‘environmental indicators’ and ‘social indicators’ of the ‘2010-11 Reference fi gures are disclosed separately and cannot be compared. Document’ and the ‘2010-11 Corporate Social Responsibility Report’ of• The internal control system has been improved at Air France Data Air France-KLM level, due in particular to more consistency checks being These Data were prepared under the responsibility of the Air France-KLM performed, but needs to be strengthened at the level of:Group’s Environment and Sustainable Development division in accordance - environmental Data consolidation for KLM ground operations;with the internal performance reporting procedures, which may be - Data collection and validation for Air France, in particular regarding the consulted at the Group’s head offi ce (‘the Protocol’). The notes on the indicators related to industrial waste;methodology for the reporting of the social and environmental indicators, - Data collection tools for Air France regarding the ‘Volatile Organic provided with the tables ‘environmental indicators’ and ‘social indicators’, Compounds - VOC emissions’ and ‘industrial waste’ es Data collection or calculation methodologies used to calculate the • The Protocol has been completed, in particular the indicator ‘Consumption indicators other energies’ for ground operations has been created and the Our role is to provide a conclusion on the Data selected based on the work indicator ‘total payroll devoted to training’ has been broadened to KLM. performed. The conclusions expressed below relate solely to this Data and However:not to all of the Air France-KLM Group’s ‘2010-11 Reference Document’ - the defi nitions and the scope of the Data collection for some environ-and the ‘2010-11 Corporate Social Responsibility Report’.mental indicators could be further harmonized between Air France and Nature and scope of the workKLM, in particular for the air operations indicators;- f or Air France, the calculation or estimation methodologies of some We conducted our procedures in accordance with ISAE 3000 standard, in indicators (for the indicator ‘Volatile Organic Compounds - VOC emissions’ compliance with applicable professional guidelines in the indicators related to training in particular) could be specifi ed in Limited assurance order to justify their relevance and to harmonize the collection processes We conducted the following limited procedures in order to provide limited of the reported that the selected Data identifi ed by the symbol √ did not contain • The Group continued the formalization of the reporting scope, in particular any material anomalies. A higher level of assurance would have required for Air France, and the extension to its subsidiaries, for instance by more extensive work. integrating the KLM subsidiaries Transavia and Martinair to the scope of • We assessed the reporting Protocol relating to environmental and social some environmental indicators. However, the integration of the signifi cant performance indicators with regard to its relevance, reliability, neutrality, subsidiaries to the environmental and social reporting scope should be understandability and in 2011, in order to ensure that all the Data are reported based • We conducted interviews with the Group’s Environment and Sustainable on a Group division in order to update our knowledge of the reporting Conclusionprocess and of the organization in place, as well as to ascertain that the reporting Protocol had been applied assurance • We performed tests on the implementation of the Protocol on a sample Based on our work, we did not identify any material anomalies likely to call 1of entities (“the selected Entities”). For the selected Entities, we verifi ed into question that the examined Data appearing in the tables ‘environmental that the Protocol had been understood and implemented correctly, and indicators’ and ‘social indicators’ of the ‘2010-11 Reference Document’ we performed arithmetic tests, on a sample basis, on the calculation of and the ‘2010-11Corporate Social Responsibility Report’ of Air France-these Data and reconciliations with supporting group, identifi ed by the symbol √, have been prepared, in all material • We performed consistency tests on the Data consolidation at Group level. aspects, in accordance with the above-mentioned contribution of the selected Entities to the published Data represents Reasonable assurancean average of 77% for consolidated environmental Data published and In our opinion, the indicators ‘fuel consumption’ and ‘CO emissions’ related 268% for consolidated social Data air operations, identifi ed by the symbol √ √, have been established, in all Reasonable assurancematerial aspects, in accordance with the above-mentioned the indicators ‘fuel consumption’ and ‘CO emissions’ related to air 2operations, identifi ed by the symbol √ √, the work performed is more Paris la Défense, May 31, 2011KPMG AuditDepartement of KPMG érie Besson, PartnerMichel Piette, Partner1 Environment: Direction Générale Industrielle Air France (Roissy, Orly et Villeneuve Le Roi), Direction Générale de l’Exploitation Air France (Roissy et Orly), Air France Cargo Roissy, Direction du Siège Air France (Roissy), Servair Group and its subsidiaires (Servair 1, Acna Roissy), CRMA, KLM Schiphol for ground France and its subsidiaries CityJet, Brit Air and Régional, KLM and KLM CityHopper for air operations. Social: Air France in France, BlueLink, KLM, Transavia, Martinair. 70Air France-KLM CSR report 2010-11
INDEXActing for Life, p. 59Embark, p. 4-5-14Non-fi nancial rating agencies, p. 21Aérotropolis, p. 57Energy consumption, p. 34NRE indicators social andenvironmental, p. 66-70AFMAéEnvironmental Management System (CFA des Métiers de l’aérien), p. 57(SME), p. 15Observatoire des métiers, p. 49Aircraft dismantling, p. 36Equal opportunities, p. 48-52Offsetting, p. 25-44Airemploi, p. 57Ergonomics, p. 50Pays de Roissy-CDG association, p. 57Air France-KLM Connect, p. 40-42EU-ETS, p. 19-24-25Psychosocial risks, p. 51Air France Foundation, p. 59European Union Emissions Trading REACH, p. 21Scheme (EU-ETS), p. 19-24-25Airports residents, p. 32-56-57Recycling, p. 20-36-37-40European White BookAir/rail comodality, p. 19Responsible catering, p. 43on transport policy, p. 19Alders table, p. 32-33Responsible products Fleet, p. 7-26-64Assistance in case of disruptionand services, p. 43-44, p. 43Flight safety, p. 9Aviation Platform, p. 18Safety champions, p. 51 Food safety, p. 43Aviation sans Frontières, p. 58-59Safety Management System, p. 9Fuel consumption, p. 24-25-26Balanced approach, p. 32Seniors, p. 52Fuel Plan, p. 26Biodiversity, p. 29Service quality, p. 40-41Future-program, p. 50Biofuels, p. 19-27Shareholders, p. 15-62Global Reporting Intiative (GRI), p. 15-65BtL, p. 28Sheltered employment sector,Governance, p. 14-16p. 21-52-56-58Business Code, p. 14-17GPEC, p. 49Single European Sky, p. 19-26Business travel plan, p. 34Grand Paris, p. 57SkyNRG, p. 27CAEP, p. 28Grand Roissy, p. 19-32-56SkyTeam, p. 7-20Carbon footprint, p. 26Health and safety at workplace, p. 47-49Social dialogue, p. 46-48Cargo, p. 10-34-35-39-44Hubstart, p. 57Social networks, p. 42CDA(Continuous descent approach), p. 33Humanitarian and developmentSocial Rights and Ethics Charter, p. 14-51 programmes, p. 59-60CDP (Carbon Disclosure Project), p. 21-25SOLIDAIR, p. 48IAGOS, p. 28CEA, p. 28Solidarity, p. 46-59Innovation, p. 40-42-43Clean Era, p. 28Sponsoring, p. 59Internal audit, p. 14-17Climate Action Plan, p. 14-23Stakeholders, p. 15-62 Internship, p. 50Climate change, p. 18-22 à 29Subsidiaries, p. 20-51ICAO, p. 24-32CO emissions calculator, p. 25Suppliers, p. 20-212IOSA, p. 9Consumer health and safety, p. 43Supply chain, p. 20ISO 14001, p. 15Consumer rights, p. 19Sustainable alternative fuels, p. 19-27ISO 26000, p. 15-20-44CORAC, p. 28Sustainable Development Charter JEREMY (association), p. 57CSR cafés, p. 53for Group suppliers, p. 14Job market, p. 49CSR Group statement, p. 14Trade Unions, p. 49-52KLM AirCares, p. 59Customer, p. 39 à 45 Training, p. 47-48LGBT, p. 48-52Customers Data protection, p. 42Training charter, p. 14Customer expectationsLocal development, p. 54 to 61, p. 42-43-45Transparency benchmark, p. 21Customer serviceLOSA, p. 9, p. 43United Nations GlobalCustomer surveysMaintenance, p. 10-35-36-39-44Compact, p. 5-13-20-65, p. 44Deforestation, p. 29Materiality test, p. 15Voluntary Departure Plan, p. 47-48Disability, p. 43-48-52Mobility, p. 48Waste, p. 36-37Diversity, p. 47-52Musculoskeletal disorders, p. 51Water and soil pollution, p. 35DJSI, p. 21Network, p. 7-11Water consumption, p. 34Eco-design, p. 30-31-40New technologies, p. 42Working conditions, p. 50-51Electric vehicles, p. 34Noise, p. 19-30-31-32-33Workplace accidents, p. 50List of main abbreviations AEA Association of European AirlinesGRI Global Reporting InitiativeCCAR Consultative CommissionIATA International Air Transport AssociationICAO International Civil Aviation Organization for Aid to Local ResidentsNOx Nitrogen oxideCCE Environmental Advisory Committees QSE Quality, Safety and EnvironmentCO Carbon dioxide2DJSI Dow Jones Sustainability IndexRoissy-CDG Roissy-Charles de Gaulle airportETS Emission Trading SchemeSESAR Single European Sky ATM ResearchAnnexes71
Document produced by Air France KLM Royal Dutch AirlinesEnvironment and CSR Division CSR Offi ce45, Rue de ParisPostbus 7700 95747 Roissy CDG Cedex1117 ZL SchipholFranceThe Netherlands For more information please visit: and you have any questions, you can send an e-mail to: @ and csr@-fi part of the Group’s CSR approach,this document is printed on environmentally-friendly by: BETC EuroRSCG. Cover : Brandimage – Photographs : Air France and KLM photographic librairies, ArnoLam, Cécile Vic/Air France Foundation, Edward Parker/WWF-Canon, Joël Raveloson/ WWF-MWIOPO, Zeger van der Voet/TU Delft, Aviation sans Frontières – Istockphotos. Illlustrations : document was printed in France by SIC/Bergame 360, an Imprim’Vert certifi ed printed, on certifi ed FSC paper.
