Deutsche Post DHL Invests 7 Billion Euros in Climate-Neutral Logistics

Deutsche Post DHL Group is moving forward with climate-neutral logistics and is investing 7 billion euros for this purpose. The funds will primarily flow into alternative fuels for air transport, the expansion of the emission-free electric vehicle fleet, and climate-neutral buildings. The new roadmap defines ambitious sustainability goals.

(Bonn) Deutsche Post DHL Group is accelerating its planned decarbonization of the company. The group will invest a total of 7 billion euros (Opex and Capex) over the next ten years in measures to reduce its CO₂ emissions. The funds will particularly go into alternative fuels for air transport, the expansion of the emission-free electric vehicle fleet, and climate-neutral buildings. On the path to the already established zero-emissions target by 2050, which has been in place for 4 years, the company is committing to new, ambitious interim goals, thereby accelerating its decarbonization roadmap. Deutsche Post DHL Group is setting concrete targets for reducing its greenhouse gas emissions by 2030 as part of the renowned “Science Based Target initiative” (SBTi), in line with the Paris Climate Agreement.

The climate goals are part of the new ESG roadmap of Deutsche Post DHL Group, in which the company outlines its ESG objectives for the coming years. Beyond its commitment to the environment, the group also defines clear targets and measures for social responsibility and governance.

Linking Executive Compensation to Sustainability

The Executive Board and Supervisory Board of Deutsche Post DHL Group will propose to shareholders at the next Annual General Meeting to further strengthen the link between the executive compensation system and sustainable corporate development. In the future, the achievement of ESG goals will be taken into account in the calculation of executive compensation – a clear signal that the commitment to sustainable business practices is of the highest priority at Deutsche Post DHL Group.

“As the world’s largest logistics provider, it is our responsibility to lead the way and guide the logistics industry into a sustainable future. We are transforming our yellow corporation into a green company, thereby making an important contribution to our planet and society,” says Frank Appel, CEO of Deutsche Post DHL Group. “I am convinced that by placing our ESG goals even more in focus, we will remain the first choice for customers, employees, and investors – thus laying the foundation for long-term economic success.”

An Integral Part of Corporate Culture

The commitment to sustainability is an integral part of the corporate culture at Deutsche Post DHL Group. Since 2008, the group has set ambitious sustainability goals, for example regarding CO₂ reduction. In 2017, the group became the world’s first logistics company to set the goal of reducing its greenhouse gas emissions to net zero by 2050. The company offers numerous innovative solutions to make supply chains more sustainable and help its customers achieve their environmental goals. With the introduction of the “Strategy 2025” in 2019, sustainability became a fundamental component of the corporate strategy.

Frank Appel: “Covid-19 has further intensified the major megatrends of our time: globalization, digitalization, e-commerce, and sustainability – the four drivers of our ‘Strategy 2025’. Of all these topics, sustainability is the most pressing challenge. With our ESG roadmap, we are intensifying our efforts and explicitly promoting the Sustainable Development Goals of the United Nations.”

Alternative Fuels, E-Mobility, and Climate-Neutral Buildings

In the fight against climate change, Deutsche Post DHL Group is committing to ambitious CO2 reduction targets as part of the Science Based Target Initiative. The group estimates that its CO2 emissions would amount to around 46 million tons by 2030 without the measures outlined in the new sustainability roadmap. In 2020, emissions were at 33 million tons. Today, the company commits to reducing its annual CO2 emissions to below 29 million tons by 2030, despite the expected continued strong growth of global logistics activities.

To achieve this, Deutsche Post DHL Group will invest around 7 billion euros (Opex and Capex) in climate-neutral logistics solutions by 2030. The amounts expected by 2023 are already included in the investment planning communicated on March 9. For short distances and the last mile, the group is further advancing the electrification of its vehicle fleet. By 2030, 60 percent of the global delivery vehicles for the last mile are to be electrically powered – thus, the company will have more than 80,000 electric vehicles on the road. In 2020, this figure was 18 percent.

Alternative Fuels for Long Distances

For longer distances, especially in air transport, electric drives are not a viable alternative in the foreseeable future. Therefore, Deutsche Post DHL Group is promoting the development and use of fuels made from sustainable raw materials and renewable energies: By 2030, at least 30 percent of the fuel needs in air freight and long-distance transport are to be covered by sustainable fuels. In addition, the group is investing in environmentally friendly properties (office spaces, mail and parcel centers, and logistics warehouses): all new buildings will be climate-neutral.

Frank Appel: “Sustainable, clean fuel alternatives are essential for climate-neutral logistics in a globalized world. Especially in air transport, these will contribute to reducing CO2 emissions. Therefore, we will engage even more intensively in initiatives and strengthen cross-industry exchange to develop a global strategy and standards. One thing is clear: only with united efforts – across countries and sectors – can we achieve truly sustainable progress in all areas.”

Thomas Ogilvie, Chief Human Resources Officer and Labor Director of Deutsche Post DHL Group

Promoting Diversity and Maintaining High Employee Satisfaction

Based on the corporate values of “Respect & Results,” Deutsche Post DHL Group will continue to promote inclusion and equal opportunities within the organization. The proportion of female executives in management is to increase from the current 23.2 percent to at least 30 percent by 2025. “A diverse workforce is the key to excellent service quality and high customer satisfaction. Satisfied customers are the basis for economic success; that is why we believe it is worthwhile to actively promote equal opportunities,” says Thomas Ogilvie, Chief Human Resources Officer and Labor Director of Deutsche Post DHL Group.

In addition, the group has set the goal of maintaining a high level of approval in the category of “Employee Engagement” in the annually conducted global employee survey at over 80.

Deutsche Post DHL Group also aims to further expand its social contribution to society in the coming years. The group commits to investing 1 percent of its net profit annually in its social impact programs and initiatives. The program GoTrade, launched in autumn 2020, focuses on providing small and medium-sized enterprises from developing countries access to global markets, thereby enabling cross-border trade. In the disaster relief program GoHelp, the group provides rapid and free logistical emergency assistance in disaster situations. Furthermore, the group is expanding the GoTeach program, which improves the employability of young people living in socially disadvantaged conditions due to poverty, loss of relatives, or flight. The program prepares them with the necessary skills for a successful transition into the workforce.

Photos: © DPDHL / Cover Image: Frank Appel, CEO of Deutsche Post DHL Group