Stakeholder engagement and materiality

Engaging with stakeholders is an important part of our sustainability strategy. A good relationship with our stakeholders is essential in supporting the implementation of our strategy. As a multinational and worldwide operator, we interact with different stakeholder groups:

STAKEHOLDER DIALOGUE

In 2018, we continued engaging with our major stakeholders through various channels:

  • We set up internal barometers and events to monitor staff perception and collect suggestions for improvement. Air France and KLM launched an in-house version of the Net Promoter Score, known as “Employee Promoter Score”.
  • External stakeholder sessions were organized and perception surveys conducted to continue the dialogue with customers on satisfaction, with shareholders and investors on non-financial indicators and with suppliers on their CSR performance.
  • We did best practice benchmarking with other large companies and contributed to working groups within the aviation industry.
  • Various feedback channels were pursued or newly set up to enable stakeholders (particularly employees, customers and local residents around airports) to communicate any comments and potential complaints.

MATERIALITY ASSESSMENT

In 2017, we carried out a materiality analysis to evaluate our sustainable development strategy. We selected a number of topics that we believe are relevant to our business and we invited all relevant stakeholder groups, mainly in France and in the Netherlands, to share their opinion on these topics:

  • 26 topics in 4 categories: customer experience, environment, social, governance & economy.
  • More than 40,000 stakeholders were invited to participate in a survey: corporate and individual customers, Air France and KLM employees and managers, shareholders, investors, suppliers, NGOs, governmental organizations, parliamentarians, Paris/Schiphol local representatives, CSR experts (non-financial agencies, certification agencies), corporate CSR managers, aviation industry partners and peers. The answer rate was around 10%.
  • Stakeholders were asked to prioritize and rate the importance of each topic for Air France-KLM, specify the top five most important topics and evaluate the performance of the Group.

Following the recommendation of the Global Reporting Initiative guidelines, a materiality matrix was developed showing the most material aspects for the Group.

The topics represented in the upper right corner of the materiality matrix are considered most relevant from the business perspective of Air France-KLM, as well as by its stakeholders. According to this analysis, our key topics are:

  1. Customer satisfaction
  2. Safety & security
  3. Financial performance
  4. Market competitiveness
  5. Operational performance
  6. Fleet development
  7. Innovation
  8. Labor relations & social dialogue
  9. Employee health & safety
  10. Climate change & CO2 reduction
  11. Human rights
  12. Sustainable employability

It is important to note that Air France-KLM and its stakeholders have a similar view with regard to the importance of topics.

Air France-KLM and its stakeholders share a similar view on the performance of topics. Most topics are located in the middle – indicating an average performance – or shown in the bottom left corner and the top right corner:

  • The topics in the top right corner represent topics that received a high performance score from Air France-KLM and its stakeholders. Five of these topics are also indicated as material topics: safety & security, human rights, employee health & safety, fleet development, climate change & COreduction.
  • The bottom left corner, on the contrary, contains topics which received low performance scores. The three material topics are especially interesting, as they require additional attention in reporting and strategy: labor relations & social dialogue, market competitiveness, financial performance.

Lastly, stakeholders were asked to rank the top five material topics. The average Top 5 includes operational and economic aspects, such as financial performance, operational performance, market competitiveness, innovation or fleet development. The most important topics are customer satisfaction and safety and security.

Some examples of Top 5 as ranked by different stakeholder groups:

In 2019, the Group will conduct a new materiality analysis to evaluate the perception of the changes in governance and strategy.


© AIR FRANCE KLM