Procurement of services: Sustainability is becoming increasingly important
Group-wide product management
Munich Airport does not have a conventional supply chain, but procures a wide range of products and services needed to operate and expand an international hub airport. The range of essential products is comparable to the requirements of a small town: The 132 product groups range from things like office supplies and road construction to vehicles and buildings. In 2020, the Munich Airport Group’s procurement volume amounted to around €643 million (net). That put this figure about 15 percent below the same period of the previous year. To tap into synergies, all procurement processes involving specialist departments and subsidiaries are handled by the central Group-wide category management system. Only merchandise, food & beverage, and medical equipment are procured directly by subsidiaries.
Legal provisions in respect of procurement
The Munich Airport Group, a sectoral contracting entity, operates in the field of «Ports and Airports». As such, it ensures its procurement policy is consistent with public procurement legislation. Where public contracts are involved, calls for tenders are issued on a Europe-wide basis in keeping with the binding regulations under procurement law. The Group normally puts contracts that are not subject to public procurement legislation to tender based on a formal, company-specific process. A party submitting a tender must confirm it complies with the statutory provisions in order to rule out anything that would prevent it taking part in public procurement or tendering procedures. They must also provide evidence that they comply with the standards relating to quality assurance and environmental management.
Responsibility in the supply chain
Munich Airport awards contracts on the basis of cost-effectiveness and places particular emphasis on the utilization of materials and products that are both durable and use low levels of natural resources. For investment goods, any subsequent costs for servicing and maintenance (life cycle costs) are also considered. To design procurement processes to be as sustainable as possible across all areas of the company, those responsible within the specialized departments increasingly already stipulate ecological, economic, and social standards. This applies to IT, maintenance of buildings and construction of new buildings, the vehicle fleet, and purchasing of promotional materials. When procuring promotional materials, the origin of the item, resource-friendly production, and recycling capability are important criteria. For vehicles and equipment for the FMG vehicle pool, care is taken to ensure that environmentally friendly vehicles, specifically those with low CO2 emissions, are procured.
Target for 2022
Creation of a Code of Conduct and integration in the purchasing guidelines
Supplier structure and supplier management
Around 4,300 suppliers work for the Munich Airport Group. The supplier structure during 2020 was relatively consistent with the previous year. Because Munich Airport is supplied primarily by business partners from the region, transportation distances are short and CO2 emissions are reduced. For example, the subsidiary Allresto purchases mainly seasonal produce throughout the year – nearly all of which originates from Bavaria, and a good 50 percent of which comes from the area directly around the airport. An evaluation of the other parties to framework agreements was not performed in 2020 due to the coronavirus pandemic.
Verification and documentation of commitment to human rights
The Munich Airport Group’s business operations are primarily confined to Germany. Here, human rights are enshrined in law. In calls for tender for international services, it is ensured that national and international laws and agreements are applied. This is documented again when contracts are signed. As part of the national action plan (NAP) for business and human rights, an internal risk analysis was initiated at the end of 2018 in the form of one-on-one discussions and then analyzed. The process stipulation within Flughafen München GmbH that had been planned for 2020 was delayed due to the coronavirus pandemic. The integration of human rights into Munich Airport’s general opportunities/risk analyses indicates the importance of the topic. The ongoing provision of information on human rights specified in the German General Equal Treatment Act takes place via the intranet and managers, who receive regular training on this subject.
Strict requirements for precluding child labor
When sourcing product groups where the likelihood of child labor is high, steps are taken in particular to ensure that none is involved. Manufacturers of products in areas known to be high risk in terms of using child labor are required to present independent certification that they do not. Clauses to this effect are integrated in the calls for tenders and awards documentation.