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Sustainability

Deutsche Post DHL Group to invest €7bn in climate-neutral logistics until 2030

Hazel KingBy Hazel KingMarch 22, 20214 Mins Read
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Deutsche Post DHL Group has announced it is increasing the pace of its planned decarbonization with a commitment to invest €7bn (US$8.3bn) over the next 10 years in measures to reduce its CO2 emissions

The funds will be used for investment in alternative aviation fuels, the expansion of the zero-emission e-vehicle fleet and climate-neutral buildings. As part of its plan to reach its zero emissions target by 2050, the company is committing to ambitious new interim targets. For example, Deutsche Post DHL Group commits – as part of the acclaimed Science Based Targets initiative (SBTi) – to reduce its greenhouse gas emissions by 2030 in line with the Paris Climate Agreement.

The climate targets are part of Deutsche Post DHL Group’s new sustainability roadmap, in which the company sets out its environmental, social and governance (ESG) goals for the next few years.

At the next annual general meeting on May 6, the board of management and supervisory board of Deutsche Post DHL Group will propose to shareholders that the remuneration system for the board of management be aligned even more closely with sustainable business development. In future, the attainment of ESG targets will be taken into account when calculating the remuneration – a clear signal that the commitment to sustainable business is a top priority at Deutsche Post DHL Group.

“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,” said 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.”

Deutsche Post DHL Group said it is committed to ambitious CO2 reduction targets as part of the SBTi. The Group assumes that its emissions would be around 46 million tons in 2030 without the measures of the new sustainability roadmap. In 2020, emissions were 33 million tons. The company is committed to reducing these annual Group CO2 emissions to below 29 million tons by 2030, despite the expected continued strong growth in global logistics activities. This will be achieved through continued investment in the electrification of its fleet for short distances and the last mile, with the aim of having 60% of its global fleet electrically powered by 203, which equates to 80,000 e-vehicles on the road.

On longer routes, Deutsche Post DHL Group is pushing for the development and use of fuels produced from renewable energy, with at least 30% of fuel requirements in aviation and line haul covered by sustainable fuels by 2030. In addition, the Group is investing in environmentally friendly properties, and all new buildings being constructed will be climate-neutral.

Appel continued, “Sustainable, clean fuel alternatives are elementary for climate-neutral logistics in a globalized 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.”

As part of its ‘Respect & Results’ corporate values, Deutsche Post DHL Group will also further promote inclusion and equal opportunities within the organization. The organization aims to increase the proportion of female executives in management from 23.2% today to at least 30% by 2025. “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“, said Thomas Ogilvie, chief human resources officer and labor director at Deutsche Post DHL Group.

In addition, the Group has set itself the goal of maintaining its approval rating in the ‘employee engagement’ category in the annual global employee survey at a consistently high level of above 80.

Deutsche Post DHL Group also intends to further expand its social contribution to society in the coming years. The Group has committed to investing 1% of its net profits annually in its GoTrade, GoHelp and GoTeach social impact programs and initiatives.

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