CORPORATE SOCIAL RESPONSIBILITY AT CARGOLUX
WE FLY IT WORLDWIDE – LUXEMBOURG
Cargolux has been a signatory to the United Nations Global Compact, and enthusiastically committed to applying its principles, since 2007. The airline also actively supports the 17 Sustainable Development Goals (SDGs), which came into effect in 2016 and form the heart of the UN’s Agenda 2030.
The airline has selected seven priority goals that fit into its four CSR pillars of Environment, People, Communities and Customers.
Cargolux recognizes its responsibility for addressing environmental issues and is excited to be involved in raising awareness among its staff and within the industry. Sustainability makes sense. The airline’s commitment is ongoing and strong. Cargolux knows that by endorsing the Sustainable Development Goals it can help lead the industry to a better understanding of options and potential. We are in this together. Each saving, whether fuel or paper; each reduction, whether noise or CO2 emissions; is another step towards better business and a better environment.
Cargolux is deeply rooted in Luxembourg.
It is a home-grown success story, and as such, one of the key players in the local transportation industry. Cargolux ranks in the top ten most attractive employers and is an outstanding ambassador for the Grand Duchy. Just as Luxembourg’s national branding encourages its businesses and population with a ‘Let’s make it happen’, Cargolux does; You name it, we fly it.
Cargolux’s deep roots in the country hail back to its inception in 1970. This longevity has awarded it strong ties with local government, communities and other industry organizations. The company’s commitment includes promoting cultural and sports activities at home and abroad, as well as education, research and support for humanitarian NGOs.
Over the last decade especially, the logistics industry has seen the rapid introduction of green technologies, process automation, software systems and high-tech advances in warehousing and tracking systems, as well as more collaboration in the supply-chain. The ‘Cargolux 2025’ strategy, prepares the company to take on the challenge of the digital age. It aims at ensuring a sustainable future of digitalization and innovation.
The company’s CSR program, in place since 2008, uses input from stakeholders and aligns with business development goals. Despite the highly competitive nature of the air freight industry and challenging conditions in past years, Cargolux has eagerly upheld its commitment to Corporate Social Responsibility.
MESSAGE FROM THE CEO
LEADING WITH RESPONSABILITY
The Cargolux Group is committed to corporate social responsibility. We strive to always do our best in this important area of business, and we encourage and support suppliers who follow CSR principles. While most organizations are coming to understand and respect the need for environmental and socially responsible measures, we need more than respect. We need deep and abiding accountability.
Here, at Cargolux, we have been committed to tangible action and reporting against our CSR’s Key Performance Indicators, since 2008. This CSR report provides details of our work in sustainability and social responsibility over the past year, and of ongoing programs that are fundamental to making a difference for our company, the community, and the environment.
Central to our Cargolux 2025 strategy are 3 pillars: Strategic Measures, Business Process Review and the Digital Roadmap. These goals are reflected in virtually all activities we undertake, especially within the context of CSR. Ultimately, our main responsibility is to ensure the continuity and sustainability (financial, environmental and social) of the organization.
Among our CSR successes this year are progress in noise abatement, reducing fuel consumption, pilot support and development, automation and digitalization, and improved collaboration.
I am thankful and appreciative of all of our employees who show such confidence and pride in our organization and who are also confident of their abilities and committed to influencing the future. I am proud and grateful to be associated with a team that puts energy and enthusiasm into caring for the environment as well as our financial sustainability. I applaud the many people in Cargolux who are mobilized around CSR principles, and the Sustainable Development Goals. Every day we see that positive environmental and social measures are good for us, good for our customers and, indeed, good for our business.
President and Chief Executive Officer
ABOUT THE COMPANY
GRI 102-1, GRI 102-2, GRI 102-3, GRI 102-4, GRI 102-6
In a world of increasingly complex logistics requirements, Cargolux Airlines International S.A. has established itself as a leading provider of reliable, high-quality air cargo services, and the Global Cargo Carrier of Choice.
Starting with only a handful of CL-44 aircraft, the company has developed into Europe’s largest all-cargo airline, operating a steadily expanding fleet of efficient, purpose-built Boeing 747-8 and 747-400 freighters.
Cargolux was the world’s first operator of both aircraft types and uses its modern fleet and a number of trucking contractors to move valuable and time-sensitive commodities on its worldwide network that covers some 90 destinations with more than 85 offices in over 50 countries.
Cargolux Italia is Cargolux’s affiliate airline based in Milan, Italy. In 2016, it was Italy’s largest all-cargo carrier with a market share of 14.5%. Meanwhile, Cargolux has established a second hub in Zhengzhou, China, that complements the group’s home base in Luxembourg. Cargolux today is considered the indisputable air freight specialist to China, with daily flights to Zhengzhou, Shanghai and Hong Kong. All in all, the company offers more than 80 weekly connections between Europe and China.
Five weekly transpacific flights connect Zhengzhou with Chicago and Atlanta. With these, Cargolux operates 15 weekly direct transpacific connections from mainland China, Hong Kong, Japan, Singapore and Malaysia to key gateways in the United States, making Cargolux one of the few cargo carriers operating transpacific routes with the advantage of nose-door equipped 747 freighters.
Spreading its wings for a global reach underlines Cargolux’s vision and supports its strategy to grow from a single hub in Luxembourg to multiple gateways in Milan, Zhengzhou, Hong Kong and Chicago.
In more than 45 years of operations, Cargolux has become an expert in handling a variety of delicate types of shipments. Live animals, perishables, temperature-sensitive shipments and outsize freight benefit from the experienced Cargolux touch. The airline offers an extensive product portfolio that gives customers expert treatment for even the most unusual requirements.
With this portfolio, Cargolux continues to build on its existing core competency, pushing global consistency and leveraging the evolution of its global presence. The airline’s focus is industry-specific needs – it thinks beyond the flight and responds to customers’ door-to-door requirements.
Cargolux’s flexible charter services offer the advantage of guaranteed capacity availability.
The airline operates a number of dedicated charter aircraft that can be deployed at very short notice. With staff stationed across the globe, Cargolux Charter gives customers 24/7 coverage.
The company’s maintenance center in Luxembourg also offers third-party maintenance services, specializing in Boeing 747 line and hangar maintenance up to and including C-Checks.
Its service offering includes a range of specialized maintenance services such as, but not limited to, avionic modifications, structural repairs and worldwide AOG support.
CERTIFIED AIRLINE WORLDWIDE
FIRST LEAN & GREEN CERTIFIED
MORE THAN 70 SCHEDULED FLIGHT
IN LUXEMBOURG 1
14:51 HOURS AVERAGE DAILY
1 This number indicated filled positions
PROGRESS IN 2017
Cargolux is seeing a growing commitment for environmental and social awareness among its staff, its customers, and the industry. In 2017, Cargolux reviewed the CSR program in order to align the strategy and initiatives to the expectations of its stakeholders and the requirements for the sustainable future of the company.
A cross-divisional CSR committee jointly worked on a CSR strategy that incorporates and continues to contribute positively to existing programs and actions the company is taking: the quality of these programs has been recognized by authorities and organizations alike as shown by awards such as Lean & Green, or local labels, such as ‘Superdreckskescht fir Betrieber’. Cargolux strives to continuously expand its engagement towards the environment, its neighbors and the people whose livelihood rely on the economic success of the company.
For this reason, the company has committed to embracing the UN Global Compact 2030 agenda and has structured the CSR report in line with the SDGs.
Head of Corporate Communications
It is sometimes difficult to be on the vanguard of a movement, but with almost a decade of CSR reporting under our belts, Cargolux’s commitment to social responsibility continues to grow every year. From the initial steps of creating awareness, and building engagement in pockets throughout the organization, we have become a triple-bottom-line culture (social, environmental and financial); embracing our role to develop and demonstrate tangible evidence that ‘good for the environment’ can be good for business… And that good for the community can be good for the company.
I am thankful for the support that our CSR program enjoys throughout the organization. From top management to the front lines, our people are talking about sustainability and responsibility.
I am grateful for such innovative and enthusiastic team spirit, that buoys our efforts to always strive to be better, cleaner, faster, quieter.
For any complex subject, one of the main challenges is extracting and highlighting the essential elements to paint the details of our success story. This year, we hope that this new CSR format accomplishes that task. As well as addressing the Global Reporting Initiative (GRI) standards, it encompasses our commitment to the 2016 United Nation’s Social Development Goals (SDGs). It describes not only the company’s CSR endeavors, but also gives a view of some of the individuals who are making it happen. We hope that these pages illustrate the excitement we feel about our commitment to corporate social responsibility and translate the actions we are taking each day, into words that tell our story.
COMMITTED TO SUSTAINABILITY
STAKEHOLDER ENGAGEMENT & MATERIALITY
VP Aviation Safety
Our Safety Management procedures allow for quick identification of safety issues and support the organization operating in a safe way. During 2017, Safety Promotion initiatives resulted in an increased awareness regarding risk management. This development helps the organization to further identify safety issues before they become a problem. Safety is becoming our Philosophy, not a Duty!
ETHICS AND COMPLIANCE
SUPPORTING & STRENGTHENING BUSINESS
For Cargolux to be successful, we must do everything in our power to know our business partners, compete fairly, and protect our assets. Our focus is to give everyone in the company the tools and knowledge they need to be effective in their job while being in compliance with regulations and standards.
In July 2017, the government outlined its 2030 Agenda 5, and 4 specific challenges relevant to Luxembourg. These include: large and rapid population growth, diversity in local working population, the economy’s over-dependence upon the financial sector, and environmental and climate pressures. This 2030 Agenda, and these challenges, also align with the UN’s 17 Sustainable Development Goals (SDGs).
Cargolux, along with a handful of other companies in Luxembourg, has embraced the 2030 Agenda and pledged its support to the UN’s 17 Sustainable Development Goals. In order to focus on areas where Cargolux can affect change, the company has chosen to take action in the following 7 goals.
The format of this CSR report allows the showcasing of the 7 priority SDGs that are closest to Cargolux’s heart, highlighting projects and initiatives which pertain to any SDG, to precisely identify their impact.
CARGOLUX’S COMMITMENT TO THE SUSTAINABLE DEVELOPMENT GOALS
This section provides an overview of Cargolux initiatives which relate to the Sustainable Development Goals and align with Luxembourg’s 2030 Agenda.
SDG#1: END POVERTY IN ALL ITS FORMS EVERYWHERE
Cargolux is grateful and appreciative that it has found a supportive and encouraging business environment in its home country, Luxembourg.
The company recognizes that organizations in different countries in its extensive global network, have different challenges. Cargolux is committed to joining the fight against poverty in ways that acknowledge and respect local partners and cultures.
SDG#3: ENSURE HEALTHY LIVES AND PROMOTE WELL-BEING FOR ALL AT ALL AGES
GRI 403-1, GRI 403-2, GRI 403-4
This SDG encompasses initiatives aimed at ensuring that Cargolux personnel are comfortable and healthy at work and in their day-to-day lives. Promoting good health and well-being is of critical importance to Cargolux. The airline recognizes that the level of team-work and collaboration enjoyed throughout the organization is energizing, but also challenging for staff in this very competitive environment. In the 2017 reporting year, the Cargolux team went above and beyond to meet requirements that included a steady stream of customer requests and business.
The company’s commitment is to provide as much support and as many systems as is reasonably possible to ensure a healthy and satisfying work environment.
Cargolux tracks types and rates of injury, occupational diseases, lost days, absenteeism, and the number of work-related fatalities.
It is fortunate, in Luxembourg, to have as a foundation, a very high standard of national health care. To complement this, Cargolux OHS department also provides information and recommendations on road safety, an international vaccination program, and an influenza vaccination campaign for all employees based at the HQ.
Manager Human Factors
The most important duty for me, as a Human Factors Manager, is to offer support to our pilots, throughout their career – from their first steps as Junior First Officer up to the level of a highly qualified and experienced Captain. From a human factors perspective, the establishment of Peer-to-Peer Support and the integration of Pilot Development Programs are core initiatives for a well-protected career as an esteemed colleague at Cargolux.
Our daily goal is to ensure that no employee is performing a job which could be considered unsafe or unhealthy. The Health and Safety of each employee is the overriding priority of our organization. We are continuously improving our SOPs, involving our employees in every single step of this development.
Manager Operational Health & Safety
SDG#4: ENSURE INCLUSIVE AND EQUITABLE QUALITY EDUCATION AND PROMOTE LIFELONG LEARNING OPPORTUNITIES FOR ALL
GRI 404-1, GRI 404-2, GRI 404-3
Cargolux focuses on attracting and securing a motivated and highly qualified workforce that can address current activity requirements and future needs. The airline puts strong emphasis on supporting future professionals and participates in a range of initiatives annually that include school visits, internship programs, and events, that give youths the chance to gain personal impressions of daily work requirements in the air freight industry, first-hand information about career opportunities, explore job opportunities and possible career paths.
SDG#5: ACHIEVE GENDER EQUALITY AND EMPOWER ALL WOMEN AND GIRLS
GRI 102-41, GRI 401-1, GRI 401-3, GRI 404-1, GRI 405-1
Cargolux is blessed with a population from 70 countries throughout the network, and 44 countries at the HQ Luxembourg. Its people recognize excellence and collaboration. The airline enjoys a workplace where people are judged by their ideas and contribution, not by their gender, religion, or ethnicity. Equality programs include:
Part-time for all employees:
Cargolux flight crews enjoy an enhanced part-time scheme. In 2017, a new permanent, part-time option was added, allowing pilots in the program to take 4 extra days of off-time during the first 10 months of the year, and 3 during high season. This, like the other part-time options, is optional and voluntary and must be agreed between the individual and company. Ground staff also has the opportunity to work part-time. Requests are evaluated in line with business requirements.
Gender balance & equivalence: In an extremely male-dominated industry, Cargolux strives to provide an environment, programs and initiatives that support diversity and gender equality. Two women serve on the Board of Directors, one serves in the Executive Committee, and five (including excom) are in executive management (VP and above).
Female pilots and apprentices: Cargolux prides itself on the balanced and welcoming company environment. Each year, the airline concentrates on ensuring that no matter the gender, ethnicity, or religious beliefs of an employee they are accepted and respected. Cargolux also believes that visible demonstration of its foundational principles is important. The company employs staff from 70 different countries throughout the network and is working toward gender inclusiveness in job categories that are normally male-dominated.
SDG#8: PROMOTE SUSTAINED, INCLUSIVE AND SUSTAINABLE ECONOMIC GROWTH, FULL AND PRODUCTIVE EMPLOYMENT AND DECENT WORK FOR ALL
GRI 102-8, GRI 102-16, GRI 102-41, GRI 204-1, GRI 401-1, GRI 405, GRI 301-1, GRI 302-1, GRI 302-3
With relatively stable workforce growth, Cargolux also supports numerous jobs in industries directly related to its air freight activities, in Luxembourg and throughout the world. Cargo/Logistics account for 2,910 jobs at Luxembourg airport with 46% of direct employment. This includes employment of freight forwarders, storage facilities, as well as Cargolux Airlines International and Luxair cargo employees 6.
Cargolux falls within the top 10 of Luxembourg’s most attractive employers and is one of the largest employers in the private sector. For its employees based in the Grand-Duchy, Cargolux follows Luxembourg labor law regulations, such as parental leave, which rank among the highest employment standards within the EU. In addition, a Collective Working Agreement (CWA) is in place to ensure advantageous conditions for Cargolux employees. 86% of employees fall under the CWA. Cargolux also offers a Swiss Life Pension scheme for Luxembourg based staff and comprehensive business travel insurance coverage for all employees worldwide.
7 This number indicated filled positions
 Luxembourg in Figures, 2017, STATEC, September 2017 (ISSN 1019-6448x)
EVP HR, Legal affairs and Compliance
We know that succeeding in the current dynamic, ever-changing world requires us to make some profound changes to how we work and how we think. That goes beyond modifying processes and systems; we also need to change our mindsets and our relationship to change itself. HR aims to be a key enabler for the Cargolux 2025 transformation journey by helping develop our employees’ resilience, agility, capability and confidence to succeed, across the board. With Connecting Flights and other strategic HR initiatives we want to engage, enable and motivate our people so that they feel connected, ready and able to work together on shaping a successful future for Cargolux.
Cargolux’s support to youth in Luxembourg
of the orders done by General
Purchasing are with Local Suppliers
The order Value of Local Procurement represents
SDG#9: BUILD RESILIENT INFRASTRUCTURE, PROMOTE INCLUSIVE AND SUSTAINABLE INDUSTRIALIZATION AND FOSTER INNOVATION
Innovation is a hot topic everywhere, including at Cargolux. Innovation comes from individuals, but it requires sponsorship from management to work. Cargolux capitalizes on the best and brightest ideas to outperform competition.The whole team strives to continuously identify customer needs and to design innovative and winning solutions for the industry.
take off noise footprint (747-8F)
SDG#12: ENSURE SUSTAINABLE CONSUMPTION AND PRODUCTION PATTERNS
GRI 204-1, GRI 301-1, GRI 302-1, GRI 302-2, GRI 302-3, GRI 305-1, GRI 305-2, GRI 305-4, GRI 306-1, GRI 306-2, GRI 306-3
Cargolux operates a fleet of modern Boeing 747-8 and 747-400 freighters; the world’s quietest and most fuel-efficient freighter aircraft in its class. Both the Boeing 747-400F and the 747-8F represent significant advances in engine technology and wing design, which reduce take-off noise and fuel consumption.
Additionally, the company continues to identify, study and implement operating procedures that ensure responsible consumption and provide further opportunities for improving production efficiency.
AT A GLANCE: ENVIRONMENT
freighters: 14 747-8F, 13 747-400F
Average age of the fleet on 31 December 2017
One of the best noise footprint in its class
of the Cargolux fleet is compliant with ICAO Chapter 4
Despite significant increases in flights and maintenance activities, the waste disposal remained unchanged
of waste produced is recyclable (Luxembourg only)
FUEL & EMISSIONS
One of the best carbon footprint in its class
SDG#13: TAKE URGENT ACTION TO COMBAT CLIMATE CHANGE AND ITS IMPACT
GRI 302-1, GRI 302-2, GRI 302-3, GRI 304-3, GRI 305-1, GRI 305-2, GRI 305-4, GRI 305-5, GRI 401-3, GRI 413-2
It is undeniable that aviation plays its part in the global climate change, but world trade, global economics, healthcare and a decent standard of living rely on sustainable air freight transport. Cargolux recognizes its responsibility toward the environment and its impact on the communities around the airports it serves. It accepts its obligation to lessen this impact as much as possible and firmly believes that achieving this goal requires the collaboration of all partners in the transport chain as well as aircraft and engine manufacturers and governments.
Cargolux is witnessing a growing commitment for environmental and social awareness, among its staff, customers, and the industry in general. Cargolux strives to continuously expand its engagement toward the environment, its neighbors, and the people whose livelihood rely on the economic success of the company.
This continues to contribute positively to the actions and programs it has in place; programs that have been recognized by authorities and organizations alike as shown by ISO 14001, Lean & Green, and ‘Superdreckskescht fir Betriber’ environmental labels. ‘Superdreckskëscht’ is a program run by Luxembourg’s Ministry for Sustainable Development and Infrastructure. The label is awarded to Luxembourg companies that demonstrate exemplary waste management practices, including waste avoidance measures, safe and environmentally-friendly waste storage, selective collection and a transparent waste recycling and disposal system. This certificate is subject to annual renewal following audits that verify the Company’s adherence to these principles.
LABEL OF ENVIRONMENTAL EXCELLENCE
We focus every day on constantly reducing our environmental footprint. We develop initiatives to address environmental responsibility in everything we do.
SDG#16: PROMOTE PEACEFUL AND INCLUSIVE SOCIETIES FOR SUSTAINABLE DEVELOPMENT, PROVIDE ACCESS TO JUSTICE FOR ALL AND BUILD EFFECTIVE ACCOUNTABLE AND INCLUSIVE INSTITUTIONS AT ALL LEVELS
GRI 205-1, GRI 205-2
Cargolux ranks as a leading supplier of high-quality air cargo services to customers around the world and thus, works with a variety of cultures. The airline has committed to support and strengthen an ethical business culture that promotes compliance with all applicable laws and regulations, and adherence to internal rules and policies. An ethical corporate as well as individual attitude, fosters sustainable and profitable long-term business relations, built on trust, and prevents risk to reputation or financial damage.
Just Culture: Cargolux operates under the Just Culture principles. This concept has been specially developed to enhance the reporting of safety-related events but Cargolux has also decided to extend the principles throughout the whole organization. Just Culture aims at reinforcing an atmosphere of trust in which people feel encouraged to provide essential safety related information. The Just Culture approach balances the objective to establish a constructive, non-punitive reporting and learning environment with the recognition of the need for accountability of individuals for their actions.
SDG#17: STRENGTHEN THE MEANS OF IMPLEMENTATION AND REVITALIZE THE GLOBAL PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT
As a good neighbor and supporter of cultural and educational activities in Luxembourg, Cargolux supported a range of initiatives and signed a number of partnerships in 2017. Local artists and cultural institutions were sponsored, as well as humanitarian causes, through its cooperation with non-governmental organizations that help people in need.
ABOUT THIS REPORT
GRI 102- 45, GRI 102-46, GRI 102-48, GRI 102-49, GRI 102-50, GRI 102-51, GRI 102-52, GRI 102-53, GRI 102-54, GRI 102-55, GRI 102-56
This CSR annual report provides information about ongoing CSR initiatives and programs as well as an update on new programs started during the period of 01/01/2017 to 31/12/2017 and pertains to Cargolux’s overall operations and geographic presence, except where otherwise specified in the report.
The report describes the company’s efforts within an incredibly competitive industry and stressful market environment that challenged the global air cargo industry. Despite changing annual difficulties and economic realities, Cargolux is committed to, and takes care of environmental and social issues that impact its business, partners and local communities.
Certain indicators cover Luxembourg-based activities only. These include figures relating the company’s employees and data related to occupational health and safety. Data monitoring and the company’s waste disposal also relates to its facilities in Luxembourg only. The report does not cover the activities of separate legal entities fully or partly owned by Cargolux. Monitoring of fuel consumption and CO2 emissions includes the data collected by Cargolux Italia. The development of details included here, is based on the continued analysis of the company’s main impact and responsibilities. It encompasses concerns for the environment and society, and concerns raised by key groups of stakeholders in this area.
This report has been prepared in accordance with ‘GRI Standards: CORE Option’ in line with the Sustainable Development Goals Framework enacted in 2017. Cargolux endeavors to constantly review and further elaborate its Corporate Social Responsibility program and the Sustainability Reporting Process.
This report is reviewed by an independent third party, which provides limited assurance. The previous report was published in April 2016.
Cargolux invites all interested parties to enter into dialogue about its sustainability policy, its activities, and this report. The company’s policy, details about its activities, and previous reports, can be found on its website at http://csr.cargolux.com. All comments and enquiries are welcome and can be forwarded through the contact form on the aforementioned webpage, or by writing to email@example.com.
GRI CONTENT INDEX
INDEPENDENT AND LIMITED ASSURANCE REPORT