Deutsche Post : Sustainability Roadmap Presentation

OUR SUSTAINABILITY ROADMAP

EXCELLENCE. SIMPLY DELIVERED.

IN A SUSTAINABLE WAY.

Bonn, 22 March 2021

Frank Appel, Group CEO Melanie Kreis, Group CFO Thomas Ogilvie, Group HR

Introducing the Sustainability Roadmap of Strategy 2025

Acceleration of our ESG initiatives, in line with Strategy 2025 ambitions:

•  Science-based target for CO2 reduction: More than carbon-neutral growth - absolute reduction by 2030

•  €7bn expected spend on green technologies by 2030; first elements already reflected in 2021/23 guidance

•  ESG targets anchored in Corporate Board Incentivization

Our Sustainability agenda is derived from who we are and what we do

1) Source: Climate Watch, WRI (2020)

We have a strong track record as a sustainable, purpose-driven company

2003 ff.

2009-2015

2014-2020

2019-2025/2030

Our Sustainability Roadmap

Significant investment and science-based target for clean operations

2020 emissions down to 27m tonnes

Our Sustainability Roadmap - Clean Operations Our CO2 footprint

Largest exposure in Scope 3 and by mode in air transport

Change of measurement to Well-to-Wheel (WtW)

•  Measurement along the entire energy chain

•  Covering all greenhouse gases

•  Lifting 2020 base to 33m tonnes CO2e

Continued industry growth expected

Based on expected business growth and current initiatives, our emissions would increase to an estimated 46m tonnes CO2e by 2030

Our Sustainability Roadmap - Clean Operations

We will reduce our greenhouse gas emissions to under 29m tonnes CO2e by 2030

Million tonnes of CO2e

~-17

We will invest €7 billion until 2030 in Clean Operations (capex & opex) to reduce our emissions to under 29m tonnes CO2e by 2030 and thereby commit to the Science Based Targets initiative (SBTi)

~46

<29

2030 Expected footprint - Business as Usual (Well-to-wheel)

DPDHL Group Sustainability

Journey

New Science Based Target

Clean operations for climate protection

All modes to contribute to targeted reduction of CO2 emissions - key contribution to be achieved on aviation emissions

Our key levers to become leader in Sustainable Aviation

Clean operations for climate protection

1

2

3

Re-fleeting

Continue to invest in the latest technology of most fuel-efficient, SAF capable, and alternative power aircraft

Improve flight operations efficiency by utilizing technology, ideal weight

SAF blending

• • On average above 30% SAF blending for air transport by 2030 (Scopes 1 & 3)

• • Strategic partnerships with SAF producers and carriers to secure sufficient, cost effective SAF supply

Fuel optimization

balance and optimized network design and choosing efficient carriers

4 Drive innovation

Support innovative technologies like the development of ePlanes and ready to scale Power-to-Liquid SAF plants

5 Decarbonize our ground handling

Use electrification and hydrogen technology to drive down emissions of ground operations at our major hubs

6 Green products for customers

Foster green product offerings, such as carbon reduced TDI and Air Freight

Our key levers to become leader in Green Last Mile Delivery & Line Haul

• 1 Green Routes

  Electrify 60% of our last-mile delivery vehicles by 2030

• 2 Network Optimization

  Reduce fuel consumption through permanent network improvements

• 3 Driver Training

  Enable employee contribution through ecofriendly driving training programs

• 4 Green products for customers

  Foster green insetting and book & claim product offerings for end customers

5 Sustainable Fuels in Line-Haul

Grow sustainable (bio)fuel

• share >30% by 2030

• 6 Drive Innovation

  Drive development and market availability of hydrogen and electric trucks

• 7 Transport Partner Activation

  Foster green transport of our subcontractors through standards, education and incentives to invest in green transport solutions

Our key levers to become leader for Carbon Neutral Buildings

1 Carbon neutral design

Starting in 2021, carbon neutral design for all new (owned) buildings, remaining emissions to be neutralized

2 Green Electricity

Further increase share of green electricity globally

3 Sustainable Heating

Foster roll-out of sustainable heating in our buildings

• 4 Power Purchase Agreements (PPA)

  Directly procure Energy from sustainable sources (PPA) to ensure higher standards

• 5 Sector coupling

  Convert locally produced electricity from renewable sources (e.g. solar power) into fuels for our electrified fleet

6 Building Automation

Use digitalization/intelligent building management systems to further reduce energy consumption

MISSION 2050

ZERO EMISSIONS

GHG Efficiency Improvement CEX (Carbon Efficiency Index):

2007

+50%

2012

2016

2020 Target 2025

"As the world's leading logistics company, it is our responsibility to move ahead and lead the logistics industry into a sustainable future"

Our Sustainability Roadmap

By investing in our people, we strive to become a great company to work for all

Human Rights

We are taking continuous action to attract and retain the best talent

Reach a consistent >80% score on Employee Engagement in EOS

Number of employees

2013

480k

Employee engagement (Employee Opinion Survey)

2013

72

2019

550k

2020

570k

2019 2020

77 82

We are on track to achieve our aspiration to be a great employer as well as a reliable partner to the communities we operate in

Great Place to Work/

Top Employer certifiedCorporate Citizenship activities

Our Safety First culture means that the safety of our employees takes utmost priority

Reduce LTIFR (lost time injury frequency rate) to below 3.1 by 2025

Accident rate (LTIFR) per 200 kh worked (LTFRI) trend

2017

2018

2019

2020

Our comprehensive approach to Diversity & Inclusion covers Group-wide priorities along with local degrees of freedom

GENDER:

Increase share of women in upper & middle management to 30%

INCLUSION:

Identify and remove roadblocks. Value different skills, experiences and viewpoints regardless of gender, race, national origin, religion, age, disability, LGBT+ and other characteristics

CULTURE:

Measure, appreciate and actively promote our cultural diversity within the group as a key strength and competitive advantage

+1:

Flexibility for Business Units to address topics at the regional/country levelTRANSPARENCY: D&I analytics ensure fact based pathway to progress and to track the performance of targeted measures and efforts

Gender Equality is a core aspect of our Diversity & Inclusion commitment

30% female managers

by 2025

23.2% Women in upper and middle management positions in 2020

We are endorsing SDG 5 -

Gender Equality, underlining

our commitment to diversity

& inclusion

DPDHL Group | Our Sustainability Roadmap | Bonn | 22 March 2021

Human Rights Policy Statement: We aspire to be "best-in-class" in our industry when it comes to respect for human rights

Human Rights Due

Policy management	Awareness
Develop, implement,	Training and
review and adjust	communications

Grievance mechanisms & remedies Implementation and tools

Diligence

Risk assessment & mitigation On-site reviewsTracking & Reporting

We will continue to have a strong impact on communities by scaling up our core programs1

VOLUNTEER PROGRAMS

TO RECOGNIZE AND ENCOURAGE VOLUNTEER WORK

Improving Lives Fund

Corporate Matching ProgramDivisional Matching Program

Global Volunteer Day

Global Employee Volunteering Program

1) Corporate and global programs

SUPPORT PROGRAMS

TO HELP COLLEAGUES IN NEED

UPstairs

Scholarship ProgramEmployee Disaster Relief

SUSTAINABILITY PROGRAMS

TO LEVERAGE OUR CORE CAPABILITIES

Protecting the Environment

Disaster Management

Improving Employability

Facilitating Trade

Our People. Our Communities. Our Impact.

Connecting people and improving their lives is what makes us get up and go every day. To live up to that purpose, we will spend 1% of our net profit each year to create lasting impact for the people and the communities we operate in.

Have additional 5 million trees planted by 2025

Scale up new GoTrade programLocalize and digitalize disaster preparedness

Expand GoTeach in reach and impact

Our Sustainability Roadmap

We pursue our aspiration to be a highly trusted company in our industry

Compliance is an integral part of everything we do

•  Maintain curriculum of mandatory

  trainings on the Group's compliance & data protection standards for all

  employees in relevant management positions

•  Ensure that our information security capability is positioned in the top quartile of our industry

Supplier Code of Conduct:

Working with a sustainable and resilient supplier base

What we expect from our suppliers and subcontractors:

• • Increased effort to protect the environment by setting measurable targets that support our commitment to clean operations

• • Greater clarity on social issues like human rights/trafficking and diversity & inclusion

• • Enhanced governance through increased due diligence, audits, a whistle blowing mechanism and other measures

Risk Assessment

A group-wide and consistent data-driven approach to identify high risk spendcategories and high risk suppliers to reduce the exposure for our company and focus our efforts.

Due diligence & monitoring of suppliers

Ensure suppliers are compliant with our Supplier Code of Conduct. The process is supported by assessments, audits and effective consequence management for suppliers who may pose a risk to the Group.

ESG KPIs will be further integrated and enhanced in internal management reporting & steering

ESG KPIs integrated into management reporting

•  Full transparency on ESG performance based on core financial consolidation system as the single source of truth

•  Inclusion of ESG KPIs into executive management reporting

ESG in risk reporting & investment evaluation

•  Reflection of ESG risks and opportunities in DPDHL risk reporting

•  Strengthening of ESG components into business case evaluation and monitoring

ESG performance reviewed at all levels

•  ESG performance reviews on corporate, divisional and local level, including implementation of performance measures

•  Audit of ESG related quality controls down to local entities

Integrated external ESG reporting: Strengthening external reporting by integrating financial & ESG reporting and increasing transparency

Annual Report: The non-financial statement can now be found in the 2020 Annual Report with further material ESG informationESG Presentation: We bundle all relevant ESG information for financial year 2020 and present the programs with the progress made

ESG Statbook includes all published ESG data from 2016 on as well as the GRI and SASB index 1)

Way forward: We will continue to enhance ESG disclosures and to implement regulations including EU Taxonomy

1) Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) index

.

Our Sustainability Roadmap

ESG targets fully integrated into new proposed management remuneration

1) Proposal to AGM 6 May 2021; 2) Divisional EAC: only applicable for Divisional CEOs

Bonus payment schedule for annual bonus and deferral

• • 50% paid in current year if bonus criteria achieved

• • 50% payout of achieved bonus deferred by additional 2 years*

* Medium-term component will only be paid out if EAC target is reached during the sustainability phase; at least the cost of capital was covered

Our Sustainability Roadmap Assumptions for €7bn investments

€7bn investments ramping up through 2030

Aviation

2021

Sustainable Aviation FuelSustainable Maritime Fuel

22

23

24

25

26

27

28

29

30

Vehicles electrification

Bio Liquefied Natural Gas

Our Sustainability Roadmap Conclusion

Our Sustainability Roadmap

Targets along 3 core commitments, aligned with incentivization

Clean operations for climate protection

•  Reduce emissions to <29m tonnes CO2e by 2030 (SBTi); no offsetting included

•  Supported by targets on sustainable fuel, electrification and carbon neutral design

•  Mission 2050: Zero emissions

Great company to work for all

•  Consistent >80% score on Employee Engagement in Employee Opinion Survey

•  Reduce LTIFR to below 3.1 by 2025

•  Increase share of women in management to 30% by 2025

Highly trusted company

•  ESG roadmap supported by stringent internal reporting, training measures and policies

•  External reporting in line with SASB and GRI core standards

•  30% weight for ESG targets in board annual variable pay; to be proposed to 2021 AGM (May 6th)

Our Sustainability Roadmap

Sustainability as basis for long term success on all three bottom lines