Operating Responsibly
The security and safety of passengers and staff is paramount. All our airports comply with the UK Government's security requirements and Manchester Airport has recently been at the forefront of trialling new technologies as part of continually developing world-class, customer-friendly passenger security.
MAG also meets all other regulations governing our industry, including national, regional and local planning policy, environmental standards and corporate governance rules. But operating responsibly is about more than compliance. We aim to be an ethical, responsible business at all times while communicating openly and honestly with our stakeholders.
Corporate Governance
The Group is committed to high standards of corporate governance and complies with the revised Combined Code. The Board currently comprises the Chairman, four executive directors and eight non-executive directors. The Group meets the requirements of the Combined Code that at least half the Board members are independent directors. The roles of the Chairman and Chief Executive are separate and clearly defined, and the Chairman was independent for the purposes of the Code on appointment. The Nomination Committee is responsible for all Board appointments and reviews both Board structure and interests to ensure conflicts of interest are avoided.
The effectiveness of the Board is reviewed internally and to this end during 2009/10 all Board members were required to complete questionnaires and attend one-to-one evaluation meetings. This ensured that the strength and capability of the Board met the requirements of the business on all counts of economic, environmental and social strategy. The qualifications and expertise of the executive Board members are clearly outlined in their person specifications and role descriptions, as is the role of the Chair.
Sustainability is given high priority by the Board, with Penny Coates, Managing Director of Regional Airports and the Board member with responsibility for sustainability, advising the Board on progress against our sustainability strategy and objectives. The monthly business update report presented to the Board includes updates on our sustainability programme, as appropriate. A broader report on the implementation of the whole sustainability strategy is also given to the Board periodically. Each of our businesses has its own processes for reviewing local performance against sustainability targets.
Please see the MAG Annual Report and Accounts for full details of our governance structure.
Risk Management
The management of risk rests ultimately with the Board. The Risk Assurance function reports directly to the Group Finance Director and the Chair of the Audit Committee.
| Key risks | Managed through: |
|---|---|
| Security | Ongoing investment, independent quality assurance, internal and external checking regime, staff training and development, close co-operation with Government agencies. |
| Health and Safety | Group-wide structure and systems including comprehensive Health and Safety committees, staff training, auditing, specialist advice, safety routines built into daily activities. |
| Environmental Compliance | Environmental management systems (accredited to ISO 14001 at East Midlands Airport), environmental impact assessments, research and modelling of air traffic trends, close co-operation with airlines to operate in more environmentally efficient ways. Meeting our legal obligations. |
| Competition | Customisation of the offer at all our sites and development of a proposition to customers that meets their needs regarding all aspects of their travelling experience. |
| Changes in Demand | Mitigation measures including prudent financial controls, the gathering of business intelligence and contingency planning. These enable a flexible response to changes in demand arising from adverse economic conditions and external events. |
| Capacity Shortfall | Medium- and long-term planning to secure the appropriate permissions needed to meet customer requirements, deliver operational capacity and sustain future growth. |
Please see the MAG Annual Report and Accounts for full details of our approach to assessing and managing risk.