"Perspectives 2011" - Sustainability and Annual Report (pdf)

Workforce and work environmentEnvironmental and climate protectionFinancial reviewSustainable developmentPurchasing and supply relationships(FMG excl. subsidiaries)Regional spend in millions of euros4.7 5.6 5.1Landshutdistrict15.2 15.4 13.619.3 22.1 19.5FreisingdistrictErdingdistrict61.856.952.2City ofMunich100 10091.42009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011Purchasing and supply relationships(FMG excl. subsidiaries)Overall and regional distribution of spendForeign countries2%Germanyexcl. Bavaria43%Dist. = districtBavaria55%CombinedtotalBavaria excl.ED, FS, LA andcity of Munich23%City of Munich20%Erding dist. 6%Freising dist. 4%Landshut dist. 2%chen GmbH (excluding its subsidiaries) currently go tolocal businesses in the Freising, Erding and Landshutadministrative districts and the city of Munich.In 2011, our subsidiary Allresto Flughafen MünchenHotel und Gaststätten GmbH sourced around 90 per -cent of its foodstuff purchases worth a total €13.1 mil -lion in Bavaria, including around €8 million in theEr ding, Freising and Landshut districts. This procurementvolume encompassed the production, processingand sale of goods.Cornerstone principles of Allresto’s procurement policyare to primarily purchase and process regional andseasonal products on competitive terms (i.e., at theright quality and price), to ensure access and deliverydistances are short, and to promote sustainability.This policy ensures a circular flow of income withinthe region’s agriculture, processing industries andcommerce while at the same time reducing transportemissions.Legal compliance in procurementWhen calling for bids, we take steps to ensure com -pliance with national and international laws and agree -ments. This requirement is reaffirmed in legally bindingform when we conclude contracts with suppliers.Around 93 percent of our supplier businesses arebased in Germany. Of these, 59 percent are in Bavaria.Just 2 percent of our suppliers are registered businessesoutside the European Union.The structure of our supplier base ensures that EUlaws apply, providing a solid safeguard against humanrights violations and child labor. In the case of highriskproduct groups where the likelihood of child laboris significant, we take appropriate steps to ensure thatnone is involved. Manufacturers of high-risk productsin areas where businesses are known to use child laborare required to present certificates from independentorganizations confirming that they do not.Evaluation of suppliersSince 2004, Flughafen München GmbH has conductedannual evaluations of around 150 suppliers as partof its supplier management process. Suppliers arescored on such criteria as the quality of their productsor work, their reliability, their quality of service andtheir pricing. We also verify whether these companiesare certified to specific quality and environmentalstandards. In some instances, we conduct auditsto identify possible shortcomings and encouragesuppliers to remediate any flaws we find.71