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Our Roots to Reduced Emission: Environmental Competence 1

| LSG Sky Chefs | Environmental Competence

We deliver the taste of the world


Environmental Competence: Overview Environmental protection as a responsibility

Environmental Management System

Environmental competence is quickly becoming a prerequisite for doing business, and at LSG Sky Chefs, we are committed to successfully execute our mission of conservation and protecting the environment. Inspired by this mission, we conducted a survey. Through the results of the survey we learned that 82 airlines placed eco friendliness as a primary target. This is why we continue to measure performance among our Customer Service Centers (flight kitchens) around the world. Water management, process design and waste reduction are just some examples of the extra measures we take in our commitment for sustainability.

 LSG Sky Chefs is the only airline catering company

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| LSG Sky Chefs | Environmental Competence

in the world to have an operating Environmental Management System in place

 We are the first company in our industry that implemented an Environmental Policy in 2008

 Consistent approach is implemented throughout Customer Service Center locations worldwide (with exception to wholly owned facilities)

 Environmental audits are reviewed on Executive Board level to implement appropriate corrective measures

We deliver the taste of the world


The Planet, People and Progress: That is What We Care about Environmental management

Corporate citizenship

Investing in people

 Availability of an internal

 Highly transparent decision

 Encouraging diversity

organization to manage our environmental system

 Divisional and regional environmental programs to reflect organizational, cultural and legal diversity

 Appropriate communication and annual environmental reporting

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matrix

 Risk management system  Self-assessment tools  Dual management system  Executive Board

 Positive working environment  Giving employees the opportunity to shape our company’s future

 Annual LSG Sky Chefs Innovation Award

 Supervisory Board

| LSG Sky Chefs | Environmental Competence

We deliver the taste of the world


Global Environmental Policy Our mission

Our environmental guidelines

 In 2008, LSG Sky Chefs became the first airline

 We dedicate ourselves to:

caterer to enact an Environmental Policy

 Complements guidelines and principles  Shapes global and regional activities  Maintains a healthy balance between business and the environment

 Being a caretaker of our customer’s environmental issues

 Strive to continuously optimize our energy, water and materials consumption

 Aiming for environmental cooperation with our business partners

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| LSG Sky Chefs | Environmental Competence

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Systematic Approach to Continuous Improvement Plan

Do

Check

Act

 Environmental Policy

 Roles, resources and

 Monitoring and

 Management review

 Environmental issues  Objectives, targets and programs

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responsibilities

 Best-practice sharing  Communication

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measurement via Key Perfomance Indicators (KPIs) and the Annual Report

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Best Practices - Examples New catering units

Geothermal energy

Conserving raw materials

Reuse and recycle

Saving the environment and costs

 Landscaped

 A constant

 Eco-friendly

 We reduce waste

 In 2005, the City of

at the source by sorting it for reuse or recycling

Copenhagen, Denmark, awarded LSG Sky Chefs with the Electricity Savings Prize for optimizing electricity consumption

roofs and rain water infiltration on the premises

 State-of-the-art freezers for the beverage cooling system

 Energy-saving light control systems

temperature cools buildings during winter and heats them during summer

 Saving energy costs by up to 33%

 Reducing CO2 emissions

 Shadowed skylights to reduce heat loss

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| LSG Sky Chefs | Environmental Competence

trucks using a 50/50 mix of recycled vegetable oil and diesel

 Future vision of trucks using 100% recycled vegetable oil from our production kitchens

 Collaboration with suppliers to maximize recycling opportunity:  50% of waste recycled on average in Germany, 33% recycled in Europe, Middle East and Africa

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 Overall electricity consumption was reduced by 20%, including 29% heating reduction and 38% water consumption reduction


Innovative Ideas - Examples Liquid Waste

Ice Melting Station

Fire and Ice

Liquid Gold

 Liquid Waste is an

 Our Ice Melting Station

 Fire and Ice is the

 Liquid Gold is the

automatic liquid extraction method; a machine is used to drain remaining liquids from bottles and cans, after which it crushes them

 The benefit: lighter waste that is easier and cheaper to dispose

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is a process wherein hot water overflow from dishwashing machines is then reused to melt ice and flush out remaining liquids

 The result: significant reduction in waste and disposal-related costs

| LSG Sky Chefs | Environmental Competence

name of a conceptual tray solution that can combine a hot and a cold dish in one tray

 The expected benefits include increased efficiency through space-saving design, reduced weight and easier handling for the cabin crew

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transformation method of turning vegetable oil into bio fuel for company vehicles

 This can lower our carbon footprint and eliminate methanol and other adverse environmental sideeffects


Environmental Performance

Water Energy

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Figures represent the envisaged consumption reduction of 6% between 2008-2012

| LSG Sky Chefs | Environmental Competence

We deliver the taste of the world


Environmental Performance Activities

 Annual Executive Board Analysis of our environmental performance

 Key Performance Indicators (KPI’s) concerning our energy and water consumption

 Annual environmental reporting  Transparent communication with customers, employees and the public about our environmental performance

Our performance measured by KPI’s Location-related data

2010

2011

Locations included

112*

111*

Meals prepared

294,213,437

332,239,900

Energy per meal (kWh/meal)

2.3

2.0

11.3

9.8

557

609

Water per meal (liters/meal) Waste per meal (grams/meal)

* 2010-2011 figures represent facilities in operation during the year.

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