1 Purpose of Sustainability at DPDHL Group
2 Environment at DPDHL Group (E)
3 Social Responsibility at DPDHL Group (S)
4 Governance at DPDHL Group (G)
Sustainability is one of the four addressable global mega trends with rising attention by all
Sustainability is fully integrated into our Three Bottom Lines
Our Purpose
Connecting People. Improving Lives.
Our Values Respect & Results
Our Mission
Excellence. Simply delivered. Along the three bottom lines in a sustainable way
Governance structures to minimize risks and ensure high ethical & ecological standards
Our commitment to the UN Sustainable Development Goals
We have selected five focus SDGs, reflecting our company's responsibility and best possible impact on solving sustainable development challenges
We seek to make quality education and lifelong learning opportunities accessible for all
We support growth by facilitating global trade in a
responsible manner
We minimize (transportation-induced) air pollution in cities and support disaster-affected communities
We seek to minimize our business' impact on the environment with our environmental protection program
We collaborate with the UN and other partners to ensure
the sustainable impact of our activities
Sustainability/Responsibility embedded in structures and processes for our sustainability agenda
We aim to continuously improve our
performance and to ensure that we meet
the expectations of the stakeholder groups
that are relevant to us with regard to social
and environmental issues.
1st stage: Supports continuous
improvement, identify new topics early that
could become important for our future
business success.
2nd stage: We work with stakeholder
groups to identify and analyze the material
issues on which our sustainability
disclosures are also based.
DPDHL Group ESG Presentation 2020
Company structures involved in sustainable management
Sustainability Advisory Council
External advise (members from the science, business and politics) for the Sustainability Council
DPDHL Group ESG Presentation 2020
Our sustainability standards are defined by Corporate Center and Global Business Services and documented in Group policies.
The divisions are responsible for aligning customer requirements with our strategic and ethical principles, and for anchoring the Supplier Code of Conduct in their contractual relationships.
Targets from our materiality analysis
E
ENVIRONMENTAL IMPACT
S
SOCIAL IMPACT
G
GOVERNANCE STRUCTURES
The importance of emission targets for the sector
DPDHL Group ESG Presentation 2020
DPDHL Group emissions and targets We are responsible for 0.4% of global greenhouse emissions
Two main focus targets:
Energy efficiency & climate change, and air pollution
Dual Strategy ("burn less & burn clean") Reducing energy/fuel consumption while increasing the use of alternative drive systems and sustainable fuels
Mission 2050 and sub-targets 2025
»2050
» NET ZERO » EMISSIONS
Environmental and climate protection measures 2019
CEX: 50% efficiency improvement by 2025
Efficiency principle and targetCEX Methodology
Footprint
Carbonof DPDHL's serviceEfficiencyIndex
Reference base of DPDHL service
Index development 2019
DPDHL Group carbon emissions by source
29.46
28.95
Scope 1&2
6.57 | 6.59 |
22.89 | 22.36 |
Scope 3
Total emissions
reduced by 2% to 28.95m t Co²e
Emission intensity (Scopes 1 & 2)
103g CO2e per € revenue vs. 107g in 2018
Total emissions intensity 455g CO2e per € revenue vs 479 g in 2018
2018
2019
Emissions of DPDHL GROUP dedicated aircraft fleet
Aircraft by NOx
Aircraft by Noise Standard
21% of our fleet complies with the highest emission standards
23% of our fleet complies with highest noise regulation standards
DPDHL Group energy consumption in 2019
Group fleet energy Group buildings energy consumption - 23,519 m kwh consumption - 3,139 m kwh
81% of our fuel consumption is attributed to kerosene.
2% of our CO2e come from our approx. 12,600 sites.
Measures:
• 14 Boeing 777 aircraft ordered in 2018 will replace older planes and will generate roughly 18% less carbon emissions and contribute to improved fuel and emissions efficiency.
Increased use of new technologies and the high percentage of renewal energy
Increased use of alternative drive systems up to 13% of our fleet
Alternative drive systems of global vehicles of 103,573
Vehicles by emission class under Euro Norm: 75,638
Electromobility: City logistics concepts
Urban Container Cubes / DHL Cubicyclesfddfsdfsdfsdf
The eco-friendly DHL Cubicycle can carry 125-kg containers for inner-city deliveries across several European cities
This optimized container format replaces 60% of inner-city vehicle journeys
Custom dimensions enable quick and easy transfer across different modes of transport (vehicles or cycles)
Container can also be reloaded for outbound shipments, increasing sustainability and enabling circular economy concepts
1 Cubicycle can save up to 8t CO2 emissions per year. 85 Cubicycles already in use
Electromobility: Electric last mile delivery with StreetScooter
StreetScooter
10,802 in use, charged by 13,460 stations
120m km driven = 39,600t CO² saved
Guarantee of optimal ergonomics
Better visibility conditions and robustness
Reduction of CO2, local emissions and noise
Hydrogen fuel cells and autonomous driving piloted in 2019
Economics
60-80% less fuel costs
60-80% less maintenance and repair costs
Subsidized and no motor vehicle tax in Germany
Local environmental success stories
Buildings (Scope 2)
Panama: Photovoltaics provide 82% of the energy required at one of our sites. 2019: -65 t CO2e emissions
Finland: Tampere is the site of our first zero-emission facility. Combining photovoltaics with geothermal systems for heating and cooling.
Germany: Cologne-Bonn Airport uses an ice energy storage system with a holding capacity of over 1.3 million liters for heating and cooling. In combination with a heat pump and photovoltaics, this system is also entirely emissions free.
Transport (Scope 3)
• Carrier scorecards: Integrate air and ocean freight subcontractors with our environmental efficiency measures and systematically evaluate their environmental performance.
• In-Setting: In Sweden, we offer customers the option of supporting climate-friendly transportation for a small surcharge. The mileage of insetting distance due to this option is equivalent to circling the globe 800 times.
Sustainable synthetic fuels: Looking for the next horizon
Long-term competitiveness and "right to play"
Customers increasingly demand sustainable logistics
Economic value lever
Power to liquid fuels close to mass market viability
Increased availability urgently needed
Engagement in initiatives and partnerships necessary
Production of plant-based biofuels should not lead to monocultures and destruction of crop land and rain forests.
One of the world's largest employers
More than half a million people work for Deutsche Post DHL Group in 220 countries and territories.
Workforce numbers remained stable compared to the previous year, testifying to the strength of our position within the postal and logistics services industry even in times of change.
Targets and current status on Social Standards & Processes
DPDHL Group ESG Presentation 2020
Employees by region and "Employee Relations Reviews"
Employee development in 2019
EMPLOYEE ENGAGEMENT 77%: + 1%
ACTIVE LEADERSHIP 78%: + 2%
The questionnaire comprises 41 questions
that are assigned to 10 key performance
indicators (KPIs).
The Performance Enablement Index is also
derived from these questions.
We consult external ratings to shed light on
our own observations and results.
Certified program for employee development
Certified training sessions are run by employees and managers who have completed special facilitator training. The effects are:
• Create common understanding of values, DPDHL Group setup and its strategy
• Increase learning effect and impact of the training
• Foster a sense of loyalty and team spirit within the company
Employee Relations: Successful management system
• Satisfying the requirements of the UN Guiding Principles on Business and Human Rights
• Ensuring uniform Group-wide implementation of the Human Rights Policy
• Manage ER related topics and assessing potential risks
• Share information and best practices on human rights and the risk potential throughout the Group
Employee Relations: Dialogue with Global Union Federations
For more than ten years we have exchanged information with global union federations UNI Global Union (UNI) and the International Transport Workers' Federation (ITF).
Since 2016 we conduct regular dialogue under the protocol of the
German National Contact Point for the OECD discussing and resolving Employee Relations matters
Today, we are discussing challenges and opportunities, in particular innovations and trends that transform work as well as responsibility in the supply chain.
Currently, we are jointly reviewing the terms of the OECD protocol mirroring the positive development in the relationship.
Safety: OHS and LTIFR
Reduce accident rate to 3.1 from 2017 level of 4.4 until 2025
In line with the Group's "Safety First" approach, our occupational health and safety organization has made accident prevention its top priority
Within this framework we empower and engage managers as well as employees in recognizing workplace hazards and taking appropriate action
While legal compliance will always have the highest priority, we are determined to apply international standards for workplace safety
Our internal guidelines/programs
OHS Mission Statement
Road Safety Code
DPDHL Group Health and Safety Awards
Corporate Citizenship pillars
We want to contribute real solutions to the global challenges of our time, which is why our programs and partnerships are designed to achieve maximum effectiveness and impact for society.
Corporate Citizenship: Local projects
Global Volunteer Day
114,239 Employees Volunteered in 2019
• Since 2008, our GVD has been a major driver of employee volunteer work
• Employees involved year-round in projects that serve local needs
• Employee motivation and company loyalty are higher when individual interests and skills are aligned with the area of involvement
• Since 2011, financial support for ~100 outstanding projects every year
Corporate Citizenship: Disaster management
GoHelp Program
Humanitarian assistance at airports through our
global presence, logistics network and the know-how
of our employees
Since 2005
• 40+ DRT deployments
• 50+ GARD workshops in partnership with the United Nations
In 2019, DRT deployments in Mozambique and Bahamas, GARD workshops in Honduras, Iraq, Madagascar, Nepal and Peru
Corporate Citizenship: Improving Employability
GoTeach Program
We support young people from disadvantaged socioeconomic backgrounds due to poverty, loss of family or being forced to flee their country.
Since 2009, Partnerships with SOS Children's
Villages and Teach For All in 50+ different countries
and 11,000 children and young people reached
Since 2015, refugee support initiative: 11,000
refugees hired.
In 2019 ~4,200 refugees from Eritrea, Iran, Iraq,
Somalia and Syria received an employment contract
DPDHL GROUP ESG PRESENTATION 2020
1 Purpose of Sustainability at DPDHL Group
2 Environment at DPDHL Group (E)
3 Social Responsibility at DPDHL Group (S)
4 Governance at DPDHL Group
Page 3P5AGE 35
German 2-tier board system / Supervisory Board
1as defined in number 5.4.2 of the German Corporate Governance Code
Targets for the Supervisory Board's composition and skills profile
Reflect DPDHL's international activities adequately
Independence1 of at least 75 % helps to guarantee integrity of accounting process and ensure independence of auditors.
Independence Avoid conflicts of interest affecting Supervisory Board members
At least 30 % women
Particular international knowledge and experience either by origin, education or professional experience
Provide competent advice on fundamental future issues, in particular digital transformation.
Sufficient expertise of accounting or financial statement audits incl. international developments in accounting.
Supervisory Board, Shareholder Representatives
Director | ||||||||
Dr. Nikolaus von Bomhard | M | 1 | C | x | C | C | C | |
Dr. Günther Bräunig | M | 1 | x | |||||
Dr. Mario Daberkow | M | 0 | ||||||
Ingrid Deltenre | F | 3 | X | X | x | |||
Dr. Jörg Kukies | M | 0 | x | X | X | |||
Dr. Heinrich Hiesinger | M | 1 | x | |||||
Simone Menne | F | 2 | X | |||||
Lawrence A. Rosen | M | 3 | ||||||
Dr. Stefan Schulte | M | 0 | C | |||||
Prof. Dr.-Ing. Katja Windt | F | 1 |
Independence*
Gender
OutsideBoards**
Executive Committee*** FinanceandAudit Committee*** Personnel Committee*** Mediation Committee*** Nomination Committee*** Strategy Committee***
*Independence definition according to number 5.4.2 of the German Corporate Governance Code; **Number of mandates at external public company Boards; *** C = Chairman
Major topics in 2019 and average attendance rate
Attendance rate 2019 Selection of major topics in 2019
DPDHL Group ESG Presentation 2020
• Group Strategy and Streetscooter development
• P&P& SC CEO: Approval of Tobias Meyer & Oscar de Bok
• Extension of DGFF CEO, Tim Scharwath´s and Board Member HR, Thomas Ogilvie´s mandate
• 2019 results and preparation of AGM
• Remuneration system for the board of management
DPDHL Group: Board of Management
CFO DPDHL GROUPMelanie Kreis
Member since Oct 2014
Appointed until Jun 2022
P&P Deutschland
Tobias Meyer
Member since Apr 2019
Appointed until Mar 2022
Express
John Pearson
Member since Jan 2019
Appointed until Dec 2021
CEO DPDHL GROUPFrank Appel
Member since Nov 2002
CEO since Feb 2008
Appointed until Oct 2022
Forwarding,
FreightTim Scharwath
Member since Jun 2017
Appointed until May 2025
HR, Corporate IncubationsThomas Ogilvie
Member since Sep 2017
Appointed until Aug 2025
Supply JohCnhGailnbertOscar de Bok
Member since Oct 2019
Mandate until Sept 2022
eCommerce SolutionsKen Allen
Member since Feb 2009
Appointed until Jul 2022
Board of Management remuneration: Components
*starting 2022
Chairman of the Board
4,5x
Ordinary Board member
Min.
TargetMax.
Min.
TargetMax.
50% payout of achieved bonus deferred by additional 2 years
Board of Management remuneration: Annual bonus and deferral
1For Dr Frank Appel, Melanie Kreis and Dr Thomas Ogilvie, the weighting is 65%.
Medium-term component will only be paid out if EBIT after Asset Charge
(EAC) target is reached during the sustainability phase; at least the cost ofcapital was covered
2Only for the Board of Management members responsible for the Post - eCommerce - Parcel, Express, Global Forwarding, Freight and Supply Chain divisions.
Board of Management remuneration: Long-term component
Cash remuneration linked to the company's share price performance
Participation in Long-Term Incentive Plan (LTIP) requires personal investment of 10% of annual base salaryWe comply with the requirement regarding the ability to retain or reclaim (claw back) variable remuneration in justified cases by making the granting of LTIP components (SARs) dependent upon the attainment of previously stipulated goals
Board of Management remuneration: Remuneration caps
1The time the tranches are paid depends on when they are exercised within the two-year period.
Total caps limit the maximum annual payout
Remuneration granted in financial year capped to €8 million for CEO, €5 million for ordinary board members (excluding fringe benefits)
2022 methodology includes 2nd cap
Remuneration received in a single financial year does not exceed €8 million for CEO, €5 million for ordinary board member, caps on received remuneration
Code of Conduct and Supplier Code of Conduct - constitute our Human Rights Policy.
DPDHL GROUP ESG PRESENTATION 2020 PAGE 44
Code of Conduct is our guide for good business practice
Key pillars:
Respect, tolerance, honesty and candor as well as
willingness to assume social responsibility
Applied to all employees, irrespective of their place in
the Group's hierarchy, and to divisions
Fundamental principles:
Observance of human rights, equal opportunity,
transparency, and clear stands in the battle against
discrimination, bribery and corruption
Our ethical standards as stated in our Supplier Code of Conduct
Internal control systems - compliance management
Data protection and data security at DPDHL Group
DPDHL Group Data Privacy Policy is aligned with GDPR
Our Data Privacy Policy sets out the global minimum standards for the Group. These standards are also stipulated in our Code of Conduct and Supplier Code of Conduct. Online trainings serve to familiarize employees with the requirements of the policy and the GDPR
The GDPR leads to an extended information obligation and an adjusted request management system
To ensure application we do audits on the level of implementation of the GDPR requirements and verifying their conformity (through Privacy Impact Assessments)
Distinct roles and bodies within data protection management (including Corporate Data Protection Officer, data protection officials and country data protection counsels, data privacy circles, data protection steering committee and data protection network)
Way forward
Embrace the holistic definition of sustainability along ESG criteria
Develop an ESG roadmap and shape our sustainability 2.0 agenda
Capture new opportunities to leverage our core business to contribute to the SDGs
1 Why sustainability matters for DPDHL GROUP
2 Sustainability at DPDHL Group (E)
3 Sustainability at DPDHL Group (S)
4 Sustainability at DPDHL Group (G)
5 | Appendix: Rankings, IR Contacts |
Page 5P0AGE 50
Good results in key investor ratings and on supplier platforms
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Deutsche Post AG published this content on 08 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2020 10:39:05 UTC