Royal Schiphol

Business model

Schiphol Group's core activities are concentrated within three business areas: Aviation, Schiphol Commercial and Alliances & Participations.

As one of the largest hub airports within Europe, we serve a range of market segments to sustain our societal value for the Netherlands and beyond. In addition to earning aeronautical revenue from our airlines, we also generate income from other sources. These include concession fees from retail operators, rental revenues from our existing real estate property, parking fees, advertising revenue and income from the provision of our (inter)national alliances and participations.

Value chain

Royal Schiphol Group's value chain outlines all the activities involved in running its airports, from start to finish. The value chain includes the four sectors that RSG contributes to, has responsibility for, or both. These are: 1. aviation, 2. construction and real estate, 3. retail, food & beverage and 4. services and transport. Within the four sectors, there are three value chain scopes. These include upstream impacts, airport location impacts (encompassing both our own operations and activities by third parties taking place on our premises) and downstream impacts.

We used the value chain to identify the impacts, risks and opportunities (IROs) within our value chain, which served as input for the double materiality assessment (DMA). The value chain also helps RSG identify its key partners and stakeholders, allowing for a better understanding of its position within the chain and how it connects to both upstream and downstream processes.

RSG's other policies, actions, metrics and targets mainly focus on the following upstream and downstream activities: air traffic arriving and departing, cargo transport to and from the airport, residual management, and passengers, staff and other visitors travelling to and from the airport. These are the activities where RSG has the most impact on its relevant stakeholders and can reduce its negative impact or even have a positive impact.

Material topics

We conduct a yearly materiality assessment to identify our material topics, taking into account the entire consolidated Royal Schiphol Group. The material topics are linked to our Qualities and enablers and hence our strategy, and help guide our sustainability efforts. In previous years, we performed the materiality assessment with reference to the Global Reporting Initiative (GRI) guidelines. Since we are a public interest entity, the Corporate Sustainability Reporting Directive (CSRD) is applicable to us from this year onwards.

We fully embraced the CSRD and performed a double materiality assessment that is compliant with this framework. The double materiality assessment considers both the impact materiality and financial materiality of sustainability matters, with impact materiality being the (actual or potential) significant impact Royal Schiphol Group has on people or the environment, and financial materiality being the risks and opportunities that (may) arise from a sustainability matter leading to a financial effect.

We identified 16 material topics during the double materiality assessment:

• Climate change mitigation
• Climate change adaptation
• Air pollution
• Soil pollution
• Biodiversity
• Resource use and circular economy
• Affected communities and noise
• Employment practices own workforce
• Diversity, equity & inclusion own workforce
• Employment practices in value chain
• Airports' attractiveness to consumers and end-users
• Safety
• Security
• Cybersecurity
• Business ethics and corporate culture
• Supplier and procurement practices

We conduct a yearly materiality assessment to identify our material topics, taking into account the entire consolidated Royal Schiphol Group. The material topics are linked to our Qualities and enablers and hence our strategy, and help guide our sustainability efforts. We fully embraced the CSRD and performed a double materiality assessment that is compliant with this framework. The double materiality assessment considers both the impact materiality and financial materiality of sustainability matters, with impact materiality being the (actual or potential) significant impact Royal Schiphol Group has on people or the environment, and financial materiality being the risks and opportunities that (may) arise from a sustainability matter leading to a financial effect. We used the value chain to identify the impacts, risks and opportunities (IROs) within our value chain, which served as input for the double materiality assessment (DMA).

Substances of concern and substances of very high concern

Royal Schiphol Group references substances of very high concern (SVHCs) in the context of worker exposure risks and air quality impacts. The company states that it "remains highly focused on its impact on working conditions related to workers' exposure to emissions of UFPs and substances of very high concern." This impact extends to people working on platform, which is described as a small portion of RSG's own workforce.

The company has identified exposure to emissions of ultrafine particles (UFPs) and substances of very high concern as an actual negative impact (IRO 6) in relation to its own workforce. This is reflected in the strategy pillar Quality of Work and enabler Robust organisation.

RSG reports air pollution metrics including benzene, naphthalene and polycyclic aromatic hydrocarbons (PAHs), which are categorised as "zeer zorgwekkende stof" (ZZS) – the Dutch term for substances of very high concern as defined by RIVM:

The company notes that there are "additional pollutants in scope for ground operations due to health effects on our own workforce. This is due to the substances of very high concern reporting obligation."

RSG is working on initiatives to reduce exposure to emissions, including acquiring electric preconditioned air (PCA) units to reduce ground handlers' exposure to UFP emissions. By the end of 2024, 56 additional PCA units were operational.

The company also piloted a respiratory protection policy to minimise exposure to very dangerous materials and emissions for airside employees, though the pilot faced significant resistance from employees and supervisors.

No specific tonnages for total substances of concern generated, used or procured, or for total substances of very high concern, are disclosed.

Biodiversity

As an airport operator, we own and manage extensive areas of land. The use of that land to ensure the safe operation of our airports can influence biodiversity. Emissions and pollution related to the activities in our value chain also impact biodiversity. The nature permit describes what steps the aviation sector needs to take to reduce NOx emissions that negatively impact nature. Keeping the nature permit is crucial for our license to operate.

In collaboration with our partners, we work to reduce CO2e emissions and pollutants, thereby contributing to the preservation of biodiversity both on airport premises and throughout our value chain. We remain committed to carefully evaluating these risks and implementing strategies to minimise their impact.

RSG is knowledgeable about the flora and fauna on its premises. Until recently, we primarily focused on what actions we can take to maintain the landscape in such a way that our operations are not disturbed by fauna. Now, we are enhancing our knowledge of the global biodiversity crisis. We also realise that our land is part of a greater ecosystem and are therefore exploring how we can directly contribute to enhancing biodiversity on our premises without increasing risks related to local fauna.

In 2024, we continued our efforts to maintain the weasel population at Schiphol as a natural and eco-friendly form of pest control. At the same time, we began capturing American crayfish, an invasive species in the Netherlands that threatens the local ecosystem and damages banks of ditches.

In 2025, Schiphol Group will establish a biodiversity baseline by collaborating with third-party experts, with the aim of enhancing the resilience of biodiversity to climate change while actively supporting and preserving ecosystems.

Waste

Schiphol Group aims to operate with zero waste by 2030. To measure progress towards this 2030 goal, the company focuses on total waste, waste per passenger and the separation rate for operational residual streams.

2024 Results for Amsterdam Airport Schiphol

For Amsterdam Airport Schiphol, total waste is 7.5% lower in 2024 compared to 2023. The lower amount of waste and the increasing number of passengers have resulted in 0.18 kg waste per passenger (2023: 0.2 kg). The separation rate is lower than in 2023 because post-separation on site was excluded. Next to that, construction residuals from small construction projects in the terminal were included in the operational residuals. From 2024 onwards, Schiphol reports on separation at the source. For 2025, the separation rate of operational residual streams is expected to increase again.

Percentage of separated operational residual flows

(per year at Amsterdam Airport Schiphol)

Excluding CAT1 aircraft waste.

Together with partners, Schiphol has planned several measures to improve the quality of the separated residuals.

Food and Beverage Covenant

The new food and beverage covenant with Schiphol concessionaires was a highlight in 2024. Schiphol engaged its retail partners in its circularity ambitions, collaborating to set targets to decrease the environmental footprint of food and beverage items served at Schiphol. Together, they will expand plant-based food options and reduce (packaging) waste. Since concessionaires are often active at multiple airports, it is hoped that this development will also have a positive effect outside of the Netherlands.

Construction and Demolition Waste

Reducing transport emissions from construction activities goes hand in hand with zero waste; by recycling more material on RSG's premises, total transport emissions are reduced. Schiphol Group signed the Covenant Schoon en Emissieloos Bouwen ('Clean and Emission-Free Building Covenant'). In doing so, RSG joined many other municipalities and organisations working to make their construction activities cleaner, healthier and quieter in the coming years.

Workers in the value chain

Schiphol is taking proactive measures to safeguard working conditions across the value chain. We want our employees to feel welcome, comfortable, valued, inspired and proud to work for Schiphol Group. We prioritise employee well-being and career growth by offering fair pay, work-life balance, career progression and a safe, secure and private work environment.

Quality of work in tenders

In 2024, Schiphol was actively integrating quality of work-related minimum requirements and award criteria in tenders for labour-intensive services at the airport, such as cleaning, security and taxi services. Examples of requirements and criteria are attractive and adequate income, predictable work schedules, and working conditions that contribute to safe, healthy and attractive work. Service companies commit to these principles and are assessed in part on quality of work, with the purpose of increasing the attractiveness of working at Schiphol.

In order to improve the quality of work offered by cleaning companies in the terminal and baggage basement, Schiphol in 2024 announced that it would secure new, long-term contracts with GOM, Hago Airport Services and Victoria. Schiphol will work more closely with the cleaning companies and their employees. Quality of work for the staff, in addition to having a cleaner terminal, is a top priority.

The tendering processes for security work at the airport and the concession for baggage handling that started in 2024 also include requirements and award criteria aimed at the quality of work for the employees involved.

Social dialogues

In 2024, Schiphol organised a number of social dialogues with the unions, their executives and companies in security, cleaning, cargo and the temporary employment sector. As part of these dialogues, participants discussed progress as a result of the Social Agreements of 2022 and 2023. For separate sectors (i.e., security, cleaning, cargo), Schiphol, unions, executives and companies conducted a social dialogue on relevant topics related to quality of work.

These social dialogues provide a platform for critical voices to express what needs to be improved in terms of quality of work. It also gives discussion partners the opportunity to jointly seek solutions and improvements. The social dialogues ensure continuous attention for initiatives that improve the quality of work and contribute to stable employment relationships and an attractive place to work.

Affected communities and noise

Schiphol Group is and remains committed to reducing noise disturbance in the surrounding area. Noise disturbance from air traffic remained a key issue in our discussions with local communities in 2024. Direct community engagement and communication is crucial in navigating the delicate balance between aviation and the well-being of people who live near Schiphol Group's airports. This balance influences the future development of our airports and is therefore important for our license to operate.

Schiphol Group is committed to reducing noise disturbance for the communities surrounding its airports. We have been working with Luchtverkeersleiding Nederland ('Air Traffic Control the Netherlands'; LVNL) and with the support of airlines on the Minder Hinder noise reduction programme. This involves developing and implementing concrete measures that reduce noise disturbance in the area surrounding Schiphol.

The ambition to reduce noise disturbance in the surrounding area is also reflected in the new airport charges published at the end of October. Once the new airport charges come into effect, newer, quieter aircraft will pay lower fees while older, noisier aircraft will pay higher fees for landing at Schiphol.

Environmental Fund

Schiphol Group contributes to the mitigation of noise disturbance. In 2008, the Schiphol Living Environment Foundation was established in collaboration with the Province North Holland. The Environmental Fund, successor to the Stichting Leefomgeving Schiphol ('Schiphol Quality of Life Foundation'), now has a definite form and will start work in early 2025. The Environmental Fund has 10 million euros per year to spend on measures to improve the quality of life in the local environment until 2031.

Local residents reputation score

TPI Local Residents – Reputation Score: 6.6 Target 2024: 7; result 2023: 6.7

The TPI Local Residents is based on the results of the reputation score as surveyed quarterly by the research agency Motivaction among local residents. The average score obtained from these surveys in 2024 was 6.6 (6.7 in 2023). This means that the target of 7 has not been achieved. Over the past year, significant efforts have been made to streamline operations, improve the quality of work and foster a better balance with our surrounding environment. While progress has been made, local residents indicate that there are still opportunities for improvement, particularly in strengthening corporate responsibility such as sustainability, noise mitigation, improving living conditions and transparent communication.

Number of severely annoyed people

The number of severely annoyed people (48Lden) in the Schiphol area increased in 2024. Main reason is the rise in air traffic movements. The number of severely annoyed people per flight has not changed compared to 2023.

People that experienced noise disturbance at night: 12,835 (2023: 11,775)

Airports' attractiveness to consumers and end-users

Passenger Experience Score: 3.78 Target 2024: 3.96; result 2023: 3.79

In 2024, we changed from a Net Promoter Score (2023: +36) to the average Passenger Experience Score, which declined slightly by -0.01 compared to 2023, reaching a 12-month rolling average of 3.78. While overall performance remained largely stable, there were differences between the three journeys. The Departure Journey saw a slight decrease of -0.01, reaching 3.81. This was primarily influenced by the topic 'Cleanliness of the airport'. The Transfer Journey experienced a decline of -0.07, dropping to 3.98, influenced by the topics 'State of maintenance of the airport' and 'Cleanliness of the airport'. The Arrival Journey was the only journey to show improvement, increasing by 0.04 to 3.62. This growth was driven by improvements in terms of 'Waiting time at passport control' and 'Ease of finding your way'. Despite these developments, the annual target was not met. The focus remains on improving specific touchpoints to further enhance passenger satisfaction in 2025.

Investment in passenger experience

In recent years, overall passenger satisfaction for Schiphol has declined. According to ACI's Airport Service Quality benchmark, passengers rated Schiphol the lowest of eight major European hub airports. The other seven are Paris Charles de Gaulle, Copenhagen, London Heathrow, Madrid, Munich, Istanbul and Zurich. In 2023, the benchmark once more put Schiphol in last place, indicating that despite efforts to improve the airport, the passenger experience is not yet at the level it should be.

In 2024, Schiphol announced that between 2024 and 2029, it will invest 6 billion euros to improve the airport facilities. Important aspects of the airport infrastructure—including Pier C, the baggage basement, climate control systems, escalators, aircraft stands and taxiways—are due for major maintenance or renewal. Pier A will be completed and new construction projects, such as the new baggage basement, will begin.

Network connectivity

TPI Network – Intercontinental destinations: 124 Target 2024: 125; result 2023: 126

The number of direct intercontinental destinations for passengers and cargo. In 2024, the TPI Network was 124 intercontinental destinations, which is one below the set target for the year and two fewer than in 2023. We welcomed six new destinations, while eight destinations were discontinued, resulting in a net loss of two destinations in 2024. Of the 124 destinations, 19 are cargo-only destinations.

Even though we did not reach our target in 2024, Schiphol has maintained its status as the second best connected airport in terms of direct connectivity, placing behind Istanbul but ahead of London Heathrow, Paris Charles de Gaulle and Frankfurt. This is according to the Airport Industry Connectivity Report 2024 by ACI Europe.

Passenger and traffic volumes

Total passengers RSG: 75,881,197 (2023: 70,946,209) Air transport movements RSG: 529,248 (2023: 498,194) Cargo: 1.49 million tonnes (2023: 1.38)

In 2024, 66.8 million passengers flew to, from or via Schiphol, an increase of 8% compared to 2023. The number of flights to and from Schiphol was 473,815, an increase of 7% compared to 2023.

Business ethics and corporate culture

We uphold the highest standards of integrity. Our robust compliance and integrity programme is designed to monitor employee behaviour and effectively mitigate compliance and integrity risks. Our Ethics Annual Plan details new developments and preventive measures, including the promotion of ethical behaviour and evaluation of our culture. In line with our corporate strategy, we are also pioneering a vision for sector-wide integrity and social safety in aviation.

Supplier and procurement practices

In 2024, Schiphol was actively integrating quality of work-related minimum requirements and award criteria in tenders for labour-intensive services at the airport, such as cleaning, security and taxi services. Examples of requirements and criteria are attractive and adequate income, predictable work schedules, and working conditions that contribute to safe, healthy and attractive work. Service companies commit to these principles and are assessed in part on quality of work, with the purpose of increasing the attractiveness of working at Schiphol. We also encourage sustainable cooperation with contractors who support our vision of being a socially responsible employer.

Schiphol Group strives for a prudent overall financial policy aimed at maintaining healthy access to financial markets to (partly) finance its ambitious CAPEX portfolio and refinance its current debt position. A strong and stable credit rating is therefore key.