Institution Theme Category Industry
  • BlackRock
  • Environmental
  • Climate
  • Airlines
Company Year Market Link
Deutsche Lufthansa AG 2020 N/A

As a result of its climate profile, in the last quarter of 2017 BIS wrote to the CEO and Chairman of the Lufthansa Executive Board, along with senior executives of other companies that we consider to have material climate risk inherent in their business operations. We asked them to closely review the TCFD’s recommendations and to consider reporting in alignment with them.
We reviewed Lufthansa’s 2019 annual report and do not believe it demonstrates sufficient progress since our 2017 letter. The company identifies climate as a substantial risk and has expanded the Executive Board as of January 2020 to include a director of Customer & Corporate Responsibility who will be accountable for environment, climate and society. While the company has adopted the targets set by the aviation sector in 2009, it does not provide clear reporting on its progress towards achieving these targets. Overall, the lack of explicit and structured TCFD-aligned reporting falls short of our expectation of large carbon emitters.


  • Proponent
  • Management
  • Resolution
  • Approval of the Supervisory Board’s actions for financial year 2019
  • Vote
  • Rationale
  • N/A
  • Details
  • BIS believes Supervisory Board members should be held accountable for the level of oversight provided on governance matters, including executive pay and how management addresses material issues such as climate risk. Given the lack of progress made by the company has on its climate disclosures and, equally, the insufficient improvement to its executive pay policy, BIS’ policy is to withhold support from the re-election of those Supervisory Board members who are most accountable through their membership on relevant board subcommittees. In the absence of such committees, BIS will hold accountable the most senior Supervisory Board member. However, Lufthansa has ‘staggered’ Supervisory Board elections, meaning that shareholders do not have the opportunity to vote on all members in any given year…BIS is unable to withhold support from the re-election of Supervisory Board member Mr. Karl-Ludwig Key as chair and most senior director responsible for climate disclosures, and as member of the remuneration committee. As such, BIS voted against the discharge of the Supervisory Board as a whole for actions taken in 2019.