2015 Annual Report

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Reporting guidelines


Integrated annual reporting is a growing area of focus worldwide. Schiphol Group was one of over 100 international participants in a pilot programme launched by the International Integrated Reporting Council, which was completed in 2014. Integrated thinking continues to develop within our company, a fact that is clearly visible in the evolution of our annual reporting since 2009. In 2015, in collaboration with social enterprise True Price we took the first steps towards gaining insight into the impact of our operations on the various types of capital. Read more on this issue in 'The value of our impact'.

This annual report was drawn up with due regard for the most relevant international guidelines and best practices, with the Global Reporting Initiative (GRI) G4 guideline being the most important guide. The GRI reference table has been appended, and also shows where in this report information can be found about the indicators that are relevant to our business operations. The GRI sector supplement for airports has also been applied.

The Dutch ministry of Finance has determined that annual reports of state shareholdings must at least comply with GRI 3.0 level C as of 2010. With a G4, Schiphol not only satisfies this requirement but also meets its own targets in this respect. Furthermore, annual reports of state shareholdings are required to be included in a survey of the Transparency Benchmark study group. In 2015 this benchmark study, commissioned by the ministry of Economic Affairs, was conducted by EY. We have been participating in this study since 2006. A total of 485 organisations submitted their 2014 annual reports for the Transparency Benchmark, in which Schiphol Group's report ranked 7th (14th in 2014). We also won the prize for Most Innovative Annual Report. The jury awarded this prize to Schiphol for the following reasons: 'The integrated report opens with the value creation model even before presenting the key results. This forms a common thread throughout the report. In addition, the principal characteristics of the organisation, its environment and the 2014 results are presented in the first pages of the report. Schiphol Group has succeeded in concisely presenting the aspects that are truly important. This has resulted in a report which is both innovative and accessible to a wide audience.'

Like our 2011 Annual Report, the 2014 Annual Report earned us the Henri Sijthoff Prize for best reporting in the category of non-listed enterprises. 'Schiphol tops the ranks thanks to its highly transparent and concrete style of reporting, which involves clear and comprehensive descriptions of dilemmas and choices made.' According to the jury, the economic analysis in the company's financial reporting showed room for improvement and the Report of the Supervisory Board, while good in terms of content, was not particularly critical. We followed up on these comments in our 2015 Annual Report.

Both results demonstrate that our business activities and our pursuit of an integrated way of thinking have not gone unnoticed. This recognition has encouraged us to continue our present approach to reporting and to further increase the sustainability of our business processes.

As a participant in the UN Global Compact, we have presented a progress report on the Global Compact's ten principles. This is included in Global Compact Communication on Progress.

Scope of the report

Our socio-economic role is to maintain a multi-modal hub that connects the Netherlands with the world's most important cities and centres of activity. Five themes underpin our strategy for accomplishing this: Top Connectivity, Excellent Visit Value, Competitive Marketplace, Development of the Group and Sustainable & Safe Performance. We have recalibrated our strategy relative to the previous reporting period. The Corporate Responsibility themes have remained unchanged, but in 2015 we recalibrated the set of CR performance indicators. We expect to be able to further develop this set in the future into a strategic tool that will allow us to measure the material aspects.

The results with regard to our financial, operational and social performance are presented in a single annual report. Over 90% of our activities take place at Amsterdam Airport Schiphol. The national and international subsidiaries and participations (airports and other activities) carry out their own initiatives, geared towards their local environment and consistent with Schiphol Group’s vision. In 2015, where possible the definitions and reporting manuals of Amsterdam Airport Schiphol, Rotterdam The Hague Airport and Eindhoven Airport were brought into line so as to enhance their comparability. Any remaining differences are explained in the section on performance indicators. Differences in definitions have only been maintained where this was necessary in order to avoid limited measurability. This was an instructive exercise that forced us to consider how we can raise Corporate Responsibility to the next level as a group, with due regard for our mutual differences and the initiatives taken in our respective operations.

In the 2015 annual report, Schiphol Group limits its reporting to the results achieved for the material themes. In 2013 we drew up a materiality analysis based on information obtained through dialogues and interviews. In 2014 we subsequently assessed the material aspects with the relevant departments and with colleagues who maintain direct contact with our stakeholders. For the purpose of this assessment we also made use of media analyses and our own analyses of trends, developments and risks. We additionally looked at material aspects of fellow airports such as Aéroports de Paris, Heathrow Airport and Frankfurt Airport. The results are summarised in a materiality matrix which confirms that we have set the right priorities in our business strategy. In 2015 we recalibrated our strategy and once again tested material aspects in relevant departments, in combination with internal and external studies into trends and developments. This led to the matrix's modification. In 2016, the material aspects will be subject to a broad assessment through the use of questionnaires and interviews.

Scope

The subjects in the matrix relate to Amsterdam Airport Schiphol, Rotterdam The Hague Airport and Eindhoven Airport alike. With the intended development of Lelystad Airport, these topics are expected to also play a role there as well. Lelystad Airport falls outside the scope of the matrix, at least until it begins operations for non-Mainport-related commercial passenger traffic.

The content of this annual report was derived from the materiality aspects outlined in the materiality matrix. This helps us interpret the available information, so that we can clarify its impact and relevance to readers.

In the chain

All aspects included in the matrix are relevant to our airports and other parties in the Chain. This annual report includes information on all material aspects over which Schiphol Group has full control, with the exception of the network of destinations, operating capacity, accessibility, noise and safety. Performance reported in these areas also concerns our partners in the chain.

Developments in 2015

In this report, the following material aspects are discussed as they relate to five Corporate Responsibility themes: Regional Significance, Accessibility, Noise, CO2 Emissions, Air Quality, Circular Economy and Employment practices (see Corporate Governance - CR organisation). In 2015, the targets were extended to the entire organisation, where possible. This process will continue in the coming years.

As described under Creating value, the interrelatedness of activities within the aviation sector means the annual report also includes performance details of areas in which Schiphol Group does not exercise full control and the results of sector partners, such as the numbers of transported passengers and spending at concessionaires or the number of bird strikes.

On 30 April 2015, Schiphol Group sold 60% of its shares in Schiphol Airport Retail B.V. (SAR) to Gebr. Heinemann SE & Co. KG. Schiphol Group and Gebr. Heinemann have since set up a joint venture for the sale of alcoholic beverages, tobacco and chocolate in the shopping area beyond the security filters at Amsterdam Airport Schiphol. Gebr. Heinemann has acquired a 60% interest in SAR and Schiphol Group retains 40% of the shares. Through the sale of 60% of the shares, Schiphol Group has lost its controlling interest. From 30 April, the assets and liabilities as well as the results of SAR will no longer be consolidated. As at 31 December 2014, the assets and liabilities of SAR were classified as 'held for sale'. Acquisitions are recognised in the consolidation of both financial and non-financial data from the date on which the company gains control. Disposals are removed from the company data from the actual date of the disposal. Deconsolidation takes place at the time control is lost through a sale.

In 2015, no special economic conditions or developments occurred within the sector or within the value chain that had any significant effect on the policy pursued.

In addition to this report, information is also available online on the following websites: schiphol.nl en schiphol.nl/cr.

Drafting of the annual report

Schiphol Group begins drafting its annual report each autumn. Based on the internal materiality analysis and media check, the business controllers are charged with compiling draft texts or providing input for each material theme. A team of Schiphol Group employees and an external copywriter compile the text of the annual report, which is discussed several times by the annual report committee. That committee consists of the CFO and representatives from Corporate Treasury, Corporate Legal, Corporate Development, Corporate Affairs, Group Control and the controllers of the various business areas. In December a well advanced initial draft is submitted to the Management Board. Subsequently the review process by the external auditor commences. After the results adopted in January have been fed into the report, the texts and financial statements are submitted for approval to the Management Board and the Supervisory Board.

If you have any comments or questions about this report, please send an email to crhelpdesk@schiphol.nl. We look forward to hearing from you.

External auditor

KPMG is Schiphol Group’s independent external auditor. The auditor has been asked to provide a limited degree of assurance regarding the reliability of the Corporate Responsibility information presented in this report. The information relates to Schiphol Group's performance, excluding noise levels or safety, that also involves supply chain partners. The auditor performed the audit in compliance with the Netherlands Institute of Chartered Accountants (NBA) N.V. COS3810N guideline ‘Assurance opdrachten inzake maatschappelijke verslagen' (assurance engagements concerning CR reports). The Assurance report is included in this annual report.

Material aspect

Performance indicator

 

 

2015
result

2015
target

2014
result

CO2 emissions

CO2 emissions from group activities (Kg CO2/Pax)

1.65

2.01

1.72

Circular economy

Separated operational waste

28.2%

40.0%

25.9%

Employment practices

Absenteeism due to illness

3.6%

3.6%

3.6%

Safety

Work-related accidents followed by absence

LTIF: 0.3

LTIF SNBV Fire Service: 27.1

LTIF: 3.0
LTIF Fire Service: 40.0

LTIF: 1.6
LTIF Fire Service: 22.7

Supply chain responsibility

Corporate responsibility consultation during tenders

83%

100%

N/A, new KPI

Accessibility

Public transport to airport for O&D passengers1

40.4%

40.0%

39.1%

Safety

Bird strikes (number per 10,000 air transport movements)

8.3

<5.8

6.1

Safety

Runway incursions1

41

22

17

  • Relates only to the Schiphol location