Logistics giant Deutsche Post DHL announced today the launch of its new Sustainability Roadmap, representing a significant ramp in the company’s decarbonisation and environmental sustainability commitments. In addition to introducing more ambitious climate targets, the new plan aims to link executive compensation to performance on these ESG efforts.
As part of its new commitments, DHL is committing investments of €7 billion in opex and capex over the next ten years in measures to reduce its CO2 emissions, with a focus on alternative aviation fuels, the expansion of the zero-emission e-vehicle fleet and climate-neutral buildings.
In 2017, DHL became the first global logistics company to set a net zero greenhouse gas (GHG) emissions target. Under the new roadmap, the company is committing to new interim targets with the Science Based Targets initiative (SBTi), to reduce its GHG emissions by 2030 in line with the Paris Climate Agreement. DHL has committed to limit Group CO2 emissions to 29 million tons by 2030, compared to the 46 million tons that would have been created with out the new measures.
The company outlined a variety of initiatives it will pursue as it seeks to achieve these goals. On shorter routes and last-mile, DHL will focus largely on electrification, with plans to have 60% of global delivery vehicles for the last mile to be electrically powered by 2030. On longer routes, where electrification is not yet an option, the company is seeking to have at least 30% of fuel requirements in aviation and line haul to be covered by sustainable fuels.
Frank Appel, CEO of Deutsche Post DHL Group, said:
“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.”
The company is also introducing more ambitious social and governance sustainability goals under the new roadmap, including a new diversity target to grow the proportion of female executives in management to 30% by 2025, from 23.2% today. DHL stated as well that it has updated its Code of Conduct for Suppliers to align more closely with sustainability criteria.
Thomas Ogilvie, Chief Human Resources Officer and Labor Director at Deutsche Post DHL Group, said:
“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.”
Importantly, the new roadmap highlights transparency and accountability, linking executive compensation to ESG. DHL will propose to shareholders at its upcoming AGM that the remuneration system for the Board of Management will be aligned more closely with sustainable business development, with the achievement of ESG targets to be taken into account when calculating the management remuneration.
“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. 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.”