Integrated thinking and Integrated Reporting <IR> at Munich Airport
Integrated thinking is the key to sustainable action and integrated reporting. Munich Airport pursues this approach and focuses on economic, environmental, and social concerns in equal measure. In order to illustrate this approach, the integrated report combines both financial and sustainability reporting within a single publication. This describes the business activities in the reporting period and their direction for the future.
The <IR> framework concept as a basis
The <IR> framework concept launched by the International Integrated Reporting Council (IIRC) requires companies to communicate the essential activities with which they create financial and non-financial value in the short, medium, and long term. Munich Airport already opted for this principle-based and forward-looking form of reporting back in 2010 and is also helping to develop the standard further as a member of the <IR> Business Network. In order to pursue the requirement for greater «conciseness» more rigorously, a slightly condensed version of the report will be appearing in print. The full content is available in the new online report. The medium-term aim of the report is to further link the issues, only print a summary and fine-tune the relationship between the printed and online versions.
Changes in capitals as a means of expressing value creation
As part of day-to-day business, every company has an impact on a wide array of stakeholders and external factors. To describe the qualitative and quantitative interactions brought about by a business model, the IIRC has defined six types of capital. Munich Airport has arranged its key resources into six types of capital, which represent its value creation and enable it to illustrate essential cause and effect correlations using changes in capital. Moreover, this report analyzes and presents the impacts of selected projects and key issues from fiscal year 2016 on the capitals. Brief tables on selected projects, for example, show readers what impacts there have been on the capitals and thus on the airport’s business model.
Reporting to the highest standards
Munich Airport feels duty-bound to adopt a policy of transparency towards the various stakeholder groups. In addition to IIRC recommendations, the company also follows other international standards. The airport’s financial reporting is based on the international standard known as IFRS (International Financial Reporting Standards). The Management report is drafted in accordance with the German Accounting Standard 20. Sustainability targets were reported in accordance with the GRI standard comprehensive option. Consideration is also given, to a greater or lesser degree, to voluntary initiatives such as the German Sustainability Code or the German Corporate Governance Code.