Lufthansa : Factsheet Sustainability 2023

Sustainability 2023

FACT SHEET

lufthansagroup.com

lufthansagroup.com/en/responsibility

2

Dear Reader,

At the Lufthansa Group, we can look back on the third-best financial year in our corporate history. Demand for air travel remains high, and we were able to fly more than 123 million guests safely to their destinations in 2023.

In accordance with our mission statement to connect people, cultures, and economies in a sustainable way, we make every effort to minimize the environmental impact of flying, and to use resources and every drop of kerosene as efficiently as possible . It is our declared goal to lead the way in transforming our industry, and we have set ourselves ambitious targets to do so: We aim to be carbon-neutral by 2050, and we want to halve the net CO₂ emissions of our flight operations from their 2019 levels by 2030. Our commitment to sustainability at the Lufthansa Group is also rated positively by several independent rating organizations.

As part of our largest-ever fleet modernization program, our order book presently extends to more than 250 latest-generation air­ craft that consume up to 30 percent less fuel and emit correspondingly less CO₂. And, with sustainable aviation fuels being

key to more sustainable air travel, we are not only one of the world's biggest SAF customers; we also work with research institutions and industry partners to drive the development of such fuels and help ramp up their production.

We are modernizing our existing fleets, too, with innovative technologies like our fuel-saving AeroSHARK fuselage film. This pioneering aerodynamic film has already made the aircraft we have applied it to approximately one percent more fuel-effi- cient; and future developments could boost these savings to up to three percent. We are also continuously expanding our range of products and services for more sustainable travel. In 2023, we recorded more than 850,000 bookings of our Green Fares; and around three per cent of our passengers already used one of the various options we offer for more sustainable flying.

Responsible practices are the foundation of the Lufthansa Group's business activities and are diligently pursued by our diverse workforce of some 100,000 colleagues worldwide. For more than 20 years now, all our actions have been closely guided by the Ten principles of the UN Global Compact.

We take our corporate responsibility seriously. Our 'help alli- ance' staff volunteer aid organization, for instance, reaches more than 60,000 people worldwide, and supported over 50 projects in 2023 with total funding of around EUR 4 million.

These are just a few examples of our tireless efforts at the Lufthansa Group in caring for our planet and its people. You will find many more of these in this publication, along with our most important topics and our key sustainability figures for 2023.

Carsten Spohr

Chief Executive Officer

Companies

SUSTAINABILITY FACT SHEET 2023

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At a glance

PERSONNEL DATA							2023			2022	Change
Average number of employees during the year			110,264		106,886	+3.2 %
Employees (as of Dec 31, 2023)							96,677		109,509	-11.7 %
of which in Germany							63,176		59,295	+6.5 %
of which abroad							33,501		50,214	-33.3 %
Staff costs9			in € million		8,310		7,223	+15.0 %
Revenue/employees9			€			321,429		289,038	+11.2 %
Staff costs/revenue9			percent			23.5			23.6	-0.1 PP
Average age			years			42.6			42.9	-0.3
Absolute part-time ratio1			percent			34.5			30.2	+4.3 PP
Part-time ratio men			percent			20.6			17.1	+3.5 PP
Part-time ratio women			percent			51.2			46.1	+5.1 PP
Proportion of women
in management			percent			22.3			20.4	+1.9 PP
TRAFFIC DATA		Fact Sheet2, 3				Annual Report6, 8
2023		2023		2022	Diff. PY	2023	2022	Diff. PY
Flights4			874,431		780,047	+12.1 %	946,132	826,603	+14.5 %
Passengers5	thousand		114,405		95,946	+19.2 %	122,535	101,775	+20.4 %
Seat kilometers offered, SKO	million		291,138		250,552	+16.2 %	300,582	259,428	+15.9 %
Freight tonne-kilometers
offered, FTKO	million		14,072		12,587	+11.8 %	15,497	14,194	+9.2 %
Passenger kilometers
transported, PKT5	million		244,912		201,665	+21.4 %	249,269	207,030	+20.4 %
Freight tonne-kilometers
transported, FTKT	million		7,281		7,138	+2.0 %	8,735	8,562	+2.0 %
Passenger tonne-kilometers5	million		24,644		20,289	+21.5 %	-	-	-
Tonne-kilometers
transported, TKT	million		31,925		27,427	+16.4 %	-	-	-

ENVIRONMENTAL DATA2, 3		2023	2022	Change
Resource consumption
Fuel consumption⁷	tonnes	8,451,407	7,284,584	+16.0 %
Fuel consumption, specific,
all types of transport	g/tkm	265	266	-0.3 %
Fuel consumption, specific,
passenger transportation	l/100 pkm	3.52	3.59	-1.7 %
Fuel consumption, specific,
freight transportation	g/tkm	218	214	+1.8 %
Emissions
Carbon dioxide emissions7	tonnes	26,621,932	22,946,441	+16.0 %
Carbon dioxide emissions,
specific, all types of transport	g/tkm	834	837	-0.3 %
Carbon dioxide emissions,
specific, passenger transportation	kg/100 pkm	8.84	9.00	-1.8 %
Nitrogen oxide emissions	tonnes	125,130	106,896	+17.1 %
Nitrogen oxide emissions,
specific, passenger transportation	g/100 pkm	40.4	40.7	-0.7 %
Carbon monoxide emissions	tonnes	21,411	19,346	+10.7 %
Carbon monoxide emissions,
specific, passenger transportation	g/100 pkm	7.4	8.0	-6.9 %
Unburned hydrocarbons	tonnes	2,434	2,234	+9.0 %
Unburned hydrocarbons,
specific, passenger transportation	g/100 pkm	0.88	0.97	-9.0 %

1) Scope = Group of consolidated companies without restriction. 2) The following companies are included for the 2023 reporting year: Lufthansa (including Lufthansa CityLine, Discover Airlines and Air Dolomiti), SWISS (including Edelweiss Air), Austrian Airlines, Eu- rowings, Brussels Airlines, and Lufthansa Cargo. Other flights (see footnote 4, p. 10) and services performed by third parties are not included, as their performance is beyond Lufthansa

Group's control (see table "Third-party share", p. 10) 3) Types of flight service considered: all scheduled and charter flights (excluding ground vehicles). 4) Legs (operational perspective); Annual Report: routes (customer perspective). A route may comprise several legs, e.g. stopo- vers. 5) Based on all passengers on board. 6) Companies included as in footnote 2, but including third-party services, as these contribute to the Group's result. 7) Actual fuel consumption/

carbon dioxide emissions in tonnes from flight operations based on all flight events under the respective operating flight number. Consumption/carbon dioxide emissions are recorded from gate to gate, i.e. including taxiing on the ground and holding patterns as well as flight detours. 8) Previous year's figures adjusted 9) The figures for the 2022 financial year were adjusted for comparability reasons due to the sale of the LSG Group.

Companies

SUSTAINABILITY FACT SHEET 2023

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The Lufthansa Group is committed to providing transparent and comprehensive sustainability reporting

MATERIAL SUSTAINABILITY ASPECTS IN THE LUFTHANSA GROUP

• Customer satisfaction
• Financial stability and resilience
• Business ethics and compliance
• Sustainable supply chains
• Emissions with an impact on the climate
• Energy and fuel efficiency
• Local pollution (including noise)
• Waste management
• Attractiveness as an employer
• Transformation capability
• Health and safety at work
• Diversity and equal opportunity
• Corporate citizenship1

Sustainable and responsible corporate conduct is an integral part of the Lufthansa Group's corporate strategy. The Lufthansa Group firmly believes that it has an obligation to create added value for customers, employees and investors, and to fulfil its responsibilities towards the environment, people and society as a whole.

This is why the Lufthansa Group considers it important to provide transparent and comprehensive reporting on its sustai­ nability activities. To do so, the Lufthansa Group regularly identifies key sustainability aspects by conducting a materiality analysis. This analysis incorporates the expectations and interests of the Group's stakeholders. In 2023 the Lufthansa Group invited representatives from all its external stakeholder groups as well as all employees and managers to take part in an anonymous, wide-ranging survey about their view of the relevance of sustainability topics for the Lufthansa Group. The survey also asked about potential effects of business activities on the human and natural environment as well as risks and

opportunities for the company. In addition to publishing the Sustainability Fact Sheet, the Lufthansa Group reports in detail on its commitment to sustainability in its non-financialdeclaration in the Annual Report, with reference to GRI standards. This also includes a statement on the applicability of the EU Taxonomy. The Lufthansa Group has been a signatory of the Taskforce on Climate-related Financial Disclosures (TCFD) since 2020 and reports accordingly. The Lufthansa Group also reports according to the Sustainable Accounting Standards Board (SASB Report).

All reports are published under

• lufthansagroup.com/en/responsibility/reports

There, the company also provides a detailed description of its carbon footprint in the context of its CDP rating, and, in its annual Communication on Progress, reports on its sustainable corporate governance in accordance with the ten principles of the UN Global Compact.

STAKEHOLDERS OF THE LUFTHANSA GROUP

Customers and end-usersConsumers including business customers

Nature

Capital market	Politics, authorities,				Society
stakeholders		Science, research	General public, residents,
governments
Investors, shareholders,		and education	vulnerable groups, social
and legislation
lenders and other creditors				networks, NGOs/associations
Analysts and rating	Employees and		Suppliers and
agencies	representatives		contracting partners

1) Voluntary materiality of the Lufthansa Group.

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SUSTAINABILITY FACT SHEET 2023

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Values and guidelines

The Lufthansa Group is committed to the ↗ten principles of the UN Global Compact for sustainable and responsible corporate governance. In addition, it supports the 17 global Sustain­ able Development Goals (SDGs) of ↗Agenda 2030, as adopted by the UN member states in 2015. In order to contribute

towards achieving these goals, the Lufthansa Group concentrates on the SDGs where it can reduce its negative impact and increase its positive effect based on its business model. An overview of its contributions is published in the Annual Report.

Ten principles of

the UN Global Compact

SUSTAINABLE DEVELOPMENT GOALS (SDG) SUPPORTED BY THE LUFTHANSA GROUP

SDG 03: Good Health and		SDG 09: Industry, Innovation and	SDG 16: Peace, Justice and
Well-Being		Infrastructure	Strong Institutions
SDG 04: Quality Education		SDG 10: Reduced Inequalities	SDG 17: Partnerships for the Goals
SDG 07: Affordable and		SDG 12: Responsible Consumption
Clean Energy		and Production
SDG 08: Decent Work and Economic		SDG 13: Climate Action
Growth

1. Businesses should support and respect the protection
	of internationally proclaimed human rights.
2. Businesses should make sure that they are not com-
	plicit in human rights abuses.
3.	Businesses should uphold the freedom of association
	and the effective recognition of the right to collec-
	tive bargaining.
4.	Businesses should uphold the elimination of all forms
	of forced and compulsory labor.
5.	Businesses should uphold the effective abolition of
	child labor.

Code of Conduct

In its ↗Code of Conduct, which is binding for all bodies, senior executives and employees, the Lufthansa Group documents its values, principles and standards of business conduct.

By providing a framework for responsible and legal business conduct, the Code of Conduct serves as a basis for fair competition and helps to identify and avoid legal and reputational risks. The key principles of the Code of Conduct include, among others, taking responsibility for society and the environment, acting with business integrity, and protecting company values. Building on this document, the Lufthansa Group also has a

• Supplier Code of Conduct, which specifically lays out the Group's position: it expects suppliers to abide by the principles outlined in the code as a key aspect of their business relation- ship. It focuses on the three areas of environmental, social and governance, and is intended to ensure that the Lufthansa Group's suppliers comply with the standards it sets out in the

Supplier Code of Conduct and to encourage them to support the establishment of responsible and sustainable behaviors in the supply chain. The principles laid down in the Supplier Code of Conduct not only act as the basis for responsible conduct and fair competition, but also help identify and avoid legal and reputational risks at an early stage.

Additionally, the Lufthansa Group's Executive Board has approved a ↗Policy Statement on respect for human and environmental rights for its own business division and along the supply chain. It details the Human Rights Strategy to comply with its Due Diligence Obligations, and Risk Management System. The Policy Statement also covers risk analysis, prioritized risks, and appropriate measures to prevent risks and address violations. It includes complaint options, documentation, and reporting obligations as part of its Risk Management System.

6. Businesses should uphold the elimination of discrim­

ination in respect of employment and occupation.

7. Businesses should support a precautionary approach

to environmental challenges.

8. Businesses should undertake initiatives to promote

greater environmental responsibility.

9. Businesses should encourage the development and

diffusion of environmentally friendly technologies.

10. Businesses should work against corruption in all its

forms, including extortion and bribery.

Source: UN Global Compact

Companies

Strategy

SUSTAINABILITY FACT SHEET 2023

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Positioning as leading European airline group

The Lufthansa Group is one of the largest airline groups worldwide and leading amongst European airline groups. In this role, the Lufthansa Group aims to play a part in actively shaping the global airline market. It strives to follow the guiding principle:

The Lufthansa Group connects people, cultures and economies in a sustainable way. In doing so, it aspires to set standards in terms of customer-friendliness and sustainability. The Lufthan- sa Group uses the potential of innovation and digitalization to

GUIDING PRINCIPLES OF THE LUFTHANSA GROUP

eatest choice

in all home

markets

develop customer-focused products and increase efficiency. Corporate responsibility and identity are put into practice locally and supported by overarching functional processes that enable synergies and economies of scale. Operational stability and reliability in all areas as well as a strict focus on cost are essential for the Lufthansa Group. The safety of flight operations is and always will be the top priority.

The Lufthansa Group to focus more on sustainability and social responsibility

Responsibility is the foundation of business activities in the Lufthansa Group. The Lufthansa Group aspires to lead the airline industry with high standards in this area as well. It there­ fore builds continuously on its environmental commitment, is dedicated to many social issues, and treats its employees and partners in the value chain responsibly and fairly.

946,132 flights1

> 300 destinations1

123 million passengers1

721 aircraft1

(as of Dec 31, 2023)

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5 hubs

96,677 employees1

What we stand for

Operational &	ceptional
Commercial	people
excellence

(as of Dec 31, 2023)

241 companies1

(fully consolidated)

1) Data basis annual report 2023.

Environment

SUSTAINABILITY FACT SHEET 2023

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Above-average ratings in sustainability (ESG) asessments

For the Lufthansa Group, key ESG rating agencies continue to assess the company's sustainability efforts as above average in the reporting year 2023.

Institutional investors are increasingly integrating ESG aspects into their investment decisions. The ESG performance of a company is therefore externally rated on the basis of numerous cri- teria, which provide information on factors such as a company's values, risk management, non-financial targets, and the measures it adopts. The rating mainly draws on publicly available data and information.

Prerequisites for a good rating

Materiality: Consideration of the material ESG factors for the Company's business and sector that may affect the Company's financial performance and sustainability in the long term.

Data quality: Accurate and reliable ESG data that is collected and managed via robust procedures and forms the basis for reporting.

Transparency: Disclosure of relevant information on ESG performance.

Benchmarking: Comparison of Company performance with competitors and standards in the sector.

Performance in ESG ratings

(as of Dec 31, 2023)

Agency		Score Type	Latest Score	Year		Change from previous scoring		Explanatory notes
										Confirmation of AA Level and sector leader-
										ship. Best Scoring in "Carbon Emissions", "Cor-
		ESG Score	AA	2023				porate Governance" and "Corporate Behavior".
										Medium ESG risk rating due to high CO₂ rele-
										vance. Strong management on essential
		Risk Score	28.3 (medium)	2023				ESG aspects.
										Remaining a top-three"Industry Leader" in
										aviation, excelling in "Climate Protection",
			C+						"Labor Standards", and "Transport Safety" and
		ESG Score	(Prime Status)	2023				"Stakeholder Responsibility".
										Above Sector Average performance (41).
										Best scores in "Environmental strategy",
										"Non-Discrimination and Diversity Audit" and
		ESG Score	47/100	2023				"Internal Controls and Executive Remuneration".
										Above Industry Average (2.4). Lufthansa has
										been part of FTSE4Good Index Series since
										2001. Top ratings in "Climate Change" and
		ESG Score	3.4/5	2023				"Corporate Governance" categories.
										Above Average (35) among peer airlines. Max-
										imum scores in "CSR Reporting Assurance",
										"CEO remuneration", "Climate Risk Manage-
					2023				ment", "Codes of Conduct", and "Workplace
		ESG Score	47/100				Health/Safety Program".
										Above Sector Average (B). Top scores in
										"Transparent and Credible Disclosure of
			A- (Leadership						Climate-­Related Emissions", "Reduction Mea-
		Climate Change	Level)	2023				sures", and "Climate Risks and Opportunities".
										Top 9 % of all evaluated companies in
		Supply Chain								the passenger air transport industry.
		Sustainability	65/100						Strong performance in categories "Environ-
		Assessment	(Silver Status)	2022/2023				ment" and "Labor and Human Rights".

Environment

SUSTAINABILITY FACT SHEET 2023

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Climate action goals

Ambitious Lufthansa Group climate action goals

The Lufthansa Group has set ambitious climate protection goals. It aims to halve its net carbon emissions from flight operations by 2030 compared to 2019, and to achieve carbon neutrality by 2050.

As an additional goal, the Lufthansa Group aims to become carbon- neutral within their mobility on the ground in its home markets by 2030.

The Lufthansa Group has joined the Science Based Targets initia-
tive (SBTi) and is following a clearly defined CO₂ reduction path.
Lufthansa Group's target to achieve a 30.6 % reduction in CO₂ intensi-
ty in 2030 compared to 2019 was successfully validated in 2022 by			-50 % net CO₂ emissions
SBTi as the first European airline group and the second worldwide.
				CO₂ neutral
The Lufthansa Group improved its performance by 2.7 %
compared with 2019 in terms of the core KPI of the Science
Based Targets Initiative (measured in grams of CO₂ per	2019	2030	2050
revenue tonne-kilometer).

THE LUFTHANSA GROUP'S TOOLS FOR ACHIEVING ITS CLIMATE GOALS

Fleet modernization

More modern and fuel-efficient aircraft provide the greatest leverage for reducing CO₂ emissions in this decade.

Sustainable aviation fuels

The key to making flying more climate-friendly is to increase the use of sustainable fuels.

Efficiency in flight operations

Tools used every day to reduce carbon emissions include intelligent route planning, modern approach procedures, and the latest technologies.

Alternative transport to hubs

The expansion and interconnection of air, rail and bus services makes it possible to reduce the number of short-haul flights and offer alternative modes of travel.

Offsetting

High-quality, certified offset projects that promote climate change mitigation worldwide are complemented by CORSIA, the international offset instrument for carbon-neutral growth in air transport.

Environment

SUSTAINABILITY FACT SHEET 2023

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Update on levers for achieving climate goals - 2023 highlights

Fleet modernization

• 29 new entry aircraft including modern and more efficient aircraft models Airbus A320neo, A321neo, A350-900, Boeing 787-9 and Boeing 777F
• 18 retirements of older, relatively less efficient aircraft

The new aircraft have up to 30 % lower fuel consumption and carbon emissions compared with their direct predecessor models.

LUFTHANSA GROUP FLEET ORDERS (as of Dec 31, 2023)

		Firm orders1		Deliveries	Options
Long-haul fleet
Airbus A350	42		2024 to 2031
Boeing 787	34		2024 to 2028	13
Boeing 777	20		2024 to 2028	24
Boeing 777F	8		2024 to 2030
Short-haul fleet
Airbus A220	40		2026 to 2031	24
Airbus A320neo	46		2024 to 2028	40
Airbus A321neo	23		2024 to 2028
Boeing 737	40		2027 to 2032	60
Total aircraft	253		2024 to 2032	161

Sustainable aviation fuels

43,628 t fossil CO₂ saved by using sustainable aviation fuel (2023)

• The Lufthansa Group has joined the First Movers Coalition of the World Economic Forum. This initiative aims to use at least 5 % SAF in 2030, with an emissions advantage of at least 85 % compared to fossil fuel. These two aspects al- ready represent a level of ambition which transcends the statutory obligations, since this 5 % refers to the total fuel requirements of the Lufthansa Group (not just fuel taken on board in Europe) and the emissions advantage of SAF required in the EU is 65 %.
• "Green Fares": In February 2023 the Lufthansa Group was the first airline group in the world to offer a separate fare which includes compensation of flight-related carbon emis- sions: 20 % of carbon emissions are reduced by using SAF and the remaining flight-related carbon emissions are com- pensated via a contribution to high-quality climate protec­ tion projects.

Intermodal transport

Around 520 alternative connections were offered daily to and from Lufthansa Group hubs to open up additional potential for reducing the number of particulary very short flights.

Offsetting

Offsetting CO₂ emissions through high-quality climate protection projects

420 thousand tonnes by customers

75 thousand tonnes by the Lufthansa Group for own business trips 1

Efficiency in flight operations

25 thousand tonnes of CO₂ reduction and around

8 thousand tonnes of kerosene reduction through

67 fuel-saving projects underway across the Group,

such as AeroSHARK.

This is equivalent to approximately 97 return flights between Munich and New York with an Airbus A350-900 aircraft.

1) Excluding contracted leases.

Environment

SUSTAINABILITY FACT SHEET 2023

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Absolute fuel consumption

FUEL CONSUMPTION1, 2

in tonnes

Whereas the year 2022 was still occasionally marked by signifi-

8,451,407 cant travel restrictions and uncertainties in the travel market, demand rose again significantly in the year 2023. This was re-

flected by an increase in capacity.

2023  20222021  2020  2019

7,284,584

4,324,746

3,507,461 

10,435,324

The strongly positive development of demand compared to the previous year of 2022 combined with an increase in capacity in the 2023 reporting year resulted in correspondingly higher fuel consumption. The number of flights increased by 12.1 %, transportation volume increased by 16.4 %, and kerosene consumption by 16.0 %.

FUEL CONSUMPTION1 2023
in tonnes
			Passengers		Cargo	Total		Stake
Regular flights2
Lufthansa Airlines		4,079,452		1,169,344		5,248,796		59.0 %
SWISS			1,152,050		308,278		1,460,328		16.4 %
Austrian Airlines		611,915		52,535		664,450		7.5 %
Eurowings			608,286		1,319		609,605		6.9 %
Brussels Airlines		421,251		46,976		468,228		5.3 %
							8,451,407		95.0 %
Other flights4							27,836		0.3 %
Sum5							8,479,244		95.3 %
Third parties6	7		214,086		199,946		414,032		4.7 %
,
All flights							8,893,276		100.0 %

FUEL DUMPS2 2023				Change
				2023
						compared to 2022
Total events			30	-7
of which medical reasons			13		-5
technical reasons			12		-5
other reasons			5		+3
Tonnage3			1,124.6 t			+2.1 %
THIRD PARTY SHARE 6, 7 2023
Number of flights				7.1 %
Passengers				5.6 %
Tonne-kilometers transported, TKT (tkm)				5.9 %
Fuel consumption (tonnes)				4.7 %
Carbon dioxide emissions (tonnes)				4.7 %

1) Actual fuel consumption in tonnes from flight operations based on all flight events un­- der the respective operating flight number. Consumption/carbon dioxide emissions are recorded from gate to gate, i.e. including taxiing on the ground and holding patterns as well as flight detours. 2) The following companies are included for the 2023 reporting year: ­Lufthansa (including Lufthansa CityLine, ­Discover Airlines and Air Dolomiti), SWISS (including Edelweiss Air), Austrian Airlines, Eurowings, Brussels Airlines, and Lufthansa

Cargo. Other flights (see footnote 4) and services performed by third parties are not in- cluded, as their performance is beyond ­Lufthansa ­Group's control (see table "Third-party share"). 3) Partly projections. 4) Ferry flights, special flights, test flights, training flights, aborted flights. 5) The carbon emissions resulting from this fuel consumption (times 3.15) differ slightly from the value of 26.8 million tonnes reported in the 2023 non-financial declaration. This is due to the inclusion of further data systems for calculating specific

data in the Fact Sheet, and related differences. 6) Airlines that fall outside the scope of this Fact Sheet but that provide services for Lufthansa, e.g. in the event of capacity bottlenecks. 7) Excluding road feeder service and partial capacity chartered by Lufthansa Cargo, as no fuel consumption and emissions values are available for these services.