DHL Group accelerates its roadmap to decarbonisation
ACCELERATING SUSTAINABLE BUSINESS 2021-2030 HIGHLIGHTS:
Science-based target for carbon reduction: <29m tonnes by 2030
€7bn invested in green technologies by 2030
30% ESG-related targets in the Corporate Board’s annual bonus
At the next Annual General Meeting, to be held on May 6, 20201, DHL Group’s Board of Management and Supervisory Board will be proposing to shareholders that the remuneration system for the Board of Management be more closely aligned with sustainable business development.
The group signals a clear commitment to maintaining sustainability as a top business priority by looking to consider the achievement of ESG targets when calculating the remuneration of the Board of Management.
"As the world's largest logistics company, it is our responsibility to lead the way and guide the logistics industry into a sustainable future. We are turning our yellow Group into a green company and making an important contribution to our planet and society," says Frank Appel, CEO of Deutsche Post DHL Group. "I am convinced that by focusing even more on our ESG goals, we will remain the first choice for customers, employees and investors - and thus lay the foundations for long-term economic success."
In 2017 the DHL Group became the first logistics company in the world to set a target of reducing its greenhouse gas emissions to net-zero by 2050 and offers numerous innovative solutions to make supply chains more sustainable and help its customers achieve their environmental goals. Sustainability remains a fundamental component of the corporate strategy and culture.
"Covid-19 has once again reinforced the major megatrends of our time: globalisation, digitalisation, e-commerce and sustainability - the four drivers of our 'Strategy 2025'. Of these topics, sustainability is the most pressing challenge. With our sustainability roadmap, we are stepping up our efforts and explicitly promoting the Sustainable Development Goals of the United Nations,” Appel said.
Invested in sustainability
In 2020, the group’s emissions were 33 million metric tons.
Committed to ambitious CO2 reduction targets, DHL Group is part of the Science-Based Target Initiative. It estimates that without the measures being put into place through the new sustainability roadmap, emissions would hit approximately 46 million tons in 2030.
Appel says, "Sustainable, clean fuel alternatives are elementary for climate-neutral logistics in a globalised world. In air transport, in particular, these could help reduce CO2 emissions. That's why we will engage even more intensively in initiatives and strengthen cross-industry exchange to develop a global strategy and standards here. One thing is certain: Only by joining forces - across countries and sectors - will we achieve truly sustainable progress in all areas."
Despite the expected continued strong growth in global logistics activities, the company has now made a commitment to reducing annual group emissions to under 29 million tons by 2030.
- By 2030 the DHL group plans to invest about 7 billion euros in climate-neutral logistics solutions.
- The group is continuing to drive forward the electrification of its vehicle fleet For short distances and the last mile.
- The group aims for 60 per cent of global delivery vehicles for last-mile delivery to be electrically powered (up from 18 per cent it had in 2020), which means more than 80,000 e-vehicles will be on the road.
- As electric vehicles are not considered an alternative solution for longer routes for the foreseeable future, especially that which entails air transport, the DHL Group is pushing for the development and use of fuels produced from renewable energies.
- At least 30 per cent of fuel requirements in aviation and line haul are to be covered by sustainable fuels by 2030
- The group is investing in environment-friendly properties such as office space, mail and parcel centres, and logistics warehouses, and all new buildings are being constructed will be climate-neutral.
Under social responsibility, the DHL Group promotes diversity and ensures they maintain “employee satisfaction at a high level.
- The proportion of female executives in management is expected to increase from 23.2 per cent today to at least 30 per cent by 2025.
- The proportion of female executives in management is supposed to increase from 23.2 per cent today to at least 30 per cent by 2025.
- The group has set itself the goal of maintaining the approval rating in the "employee engagement" category in the annual global employee survey at a consistently high level of above 80.
- The Group commits to invest 1 per cent of its net profits annually in its social impact programs and initiatives.
"Our motivated, diverse workforce is the key to excellent service quality and high customer satisfaction. Satisfied customers are the basis for economic success. This is another reason why we are convinced that it is worth actively promoting equal opportunities", says Thomas Ogilvie, Chief Human Resources Officer and Labor Director at Deutsche Post DHL Group.
Deutsche Post DHL Group also intends to further expand its social contribution to society in the coming years.
In the event of a disaster, the disaster response program provides emergency logistical assistance quickly and free of charge. The Group also continues to expand their program, which looks to improve young people’s employability living in socially disadvantaged circumstances due to poverty, loss of loved ones, or fleeing from disaster by preparing them with the necessary skills to successfully transition to the world of work.
To ensure it aligns its supplier base with corporate objectives, the group has updated it’s Code of Conduct for Suppliers, aligning rules and standards more closely with the sustainability criteria. A new policy statement on human rights has also been introduced.
" As a market leader, we are a role model for responsible and ethical business practices and fair behaviour. is an integral part of Strategy 2025, and all relevant KPIs are therefore integrated into the management of the Group and its regular reporting ", says Melanie Kreis, Chief Financial Officer of Deutsche Post DHL Group.