Corporate Responsibility at Deutsche Post DHL Group
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1 Corporate Responsibility at Deutsche Post DHL Group SRI Roadshow Zurich 2 June 2015 Jill Meiburg VP Communications Strategy and Stakeholder Relations
2 CR IS EMBEDDED IN OUR CORPORATE STRATEGY The importance of being perceived as a responsible player along all three bottom lines is rising in importance reflected in our Strategy 2020 ambition of becoming benchmark for responsible business. Customers want to ensure environmental and ethical standards along their supply chains. Provider of Choice DPDHL will be the benchmark for responsible business Investment of Choice > 40 percent of DPDHL s shares are held by signatories to the UN PRI (UN Principles for Responsible Investment). Employer of Choice Employees motivation, as well as a company s ability to attract new talent, is considerably influenced by a firm s reputation for being a good corporate citizen. 2
3 FOCUS CONNECT GROW: MAIN PILLARS OF STRATEGY 2020 Stakeholder inclusiveness and customized green solutions are integral parts of our Corporate Strategy Focus. We focus on what has made us successful Connect. We connect across the organization Grow. We expand in new segments 1 Logistics as our core 1 One global team 1 Leader in ecommerce related logistics 2 Committed to the needs of our stakeholders & our planet 2 Certified specialists for everything we do 2 Accelerate footprint shift towards emerging markets 3 A family of divisions 3 Connected approach in operations, commercial, green solutions and shared services 3 Tap new market opportunities for organic expansion to achieve industryleading margins. to achieve quality leadership & service excellence. to achieve sustainable above-market growth. 3
4 CORE FIELDS OF CR ACTIVITIES Our Living Responsibility framework ensures that we focus on both societal and business objectives. 31 Responsible Business Practice 2 Corporate Citizenship 23 Shared Value Conform with applicable laws, ethical standards and international norms relevant to our business reflecting our stakeholders requirements. Addressing societal needs by leveraging our core competencies & the know-how of our employees together with experienced partners. Generating value for business and society by optimizing environmental efficiency & commercializing environmental and social products. 4
5 SHARED VALUE 5
6 CLIMATE PROTECTION: A SPECIAL RESPONSIBILITY FOR DEUTSCHE POST DHL GROUP With transport at the core of our business, we emit CO 2, the main cause of climate change, and so do our customers. A DPDHL Group s carbon footprint B Green is on our customers agenda 28,6 in million tonnes of CO 2 84% of Global 500 companies have environmental targets Subcontractor emissions (Scope 3) 22,9 99% of our biggest customers have own sustainability programs and Own emissions (Scopes 1 & 2) 5,7 87% with CO 2 reduction targets 6
7 A OUR GOGREEN PROGRAM: REACHING GOALS THROUGH EFFICIENCY Deutsche Post DHL Group was the first global logistics company to set itself a concrete CO 2 efficiency target with improvement of already 23% by 2014 CO 2 Efficiency Target DPDHL Group CO 2 Index We aim to improve our CO 2 efficiency including subcontractors by 30 % by the year 2020, compared to our 2007 baseline. DPDHL Group CO 2 efficiency CO 2 from energy consumption Service delivered Development of the Carbon efficiency index (index points) Group Post-eCommerce-Parcel Express Global Forwarding, Freight Supply Chain
8 B OUR GOGREEN CUSTOMER SOLUTIONS We offer green products and services to generate shared value for our customers and the environment GoGreen Solution category What it is about What customers get Carbon Report Green Optimization Climate Neutral Easy-to-understand and accurate reports of customer and product related greenhouse gas emissions in the supply chain. Customer-specific to-be scenarios, business cases, roadmaps and measures to minimize the environmental impact of supply chains. Verified calculation and offsetting of greenhouse gas emissions for our transport and logistics services through climate protection projects. Clear view on where to improve Optimal design of future green supply chain and realized environmental & economical benefits Climate neutral supply chain and official certificate stating annual CO 2 e offset 8
9 CASE STUDIES Green buildings, e-mobility and optimized trucks are only some examples help to reduce DPDHL s and our customers carbon footprint DHL Express Hub Leipzig CO 2 -free city pilot project DHL Teardrop Trailers Block heating power plant Photovoltaic system Rainwater management CO 2 -free delivery in the city of Bonn First large scale roll-out in the logistics industry Development of DHL Teardrop Trailer as aerodynamically optimized truck Cooperation with UK-based trailer manufacturer DonBur Saving 3,000 tons CO 2 and 660k water/year 141 e-vehicles by 2015 with to. CO 2 /year Customer s 141 Teardrop trailers will reduce carbon footprint by 840 t./year 9
10 GREEN INNOVATIONS AND TECHNOLOGIES IN OPERATIONS E-mobility and high-efficiency building technologies are key levers for carbon efficient, forward-looking growth 1 Alternative drive systems, e.g. e-mobility» More than 200 electric delivery vehicles in use» Bonn pilot: Germany s first city to offer fully-electric delivery services; carbon savings of over 500t CO 2 p.a. 1)» Proprietary innovation: StreetScooter mini-series in use 2 High-efficiency building technologies» Smart metering: Real-time management of electricity and gas consumption» Block heating power plant: Cost savings of up to 26% (> 130k) 2), biogas enhancement an option» LED: Savings in electricity costs of up to 80% ( 100k) 3) with enhanced lighting quality 10
11 RESILIENCE MANAGEMENT 11
12 RESILIENCE MANAGEMENT FOR LONG-TERM SUCCESS Various tools to mitigate potential risks to our reputation, our compliance standards and our financial stability. Issues Management Tracking public debate on global issues with high opportunity/risk potential to safeguard reputation Identifying perception gaps between int. and ext. stakeholders Operational Security Financial Risk Management Risk-based security management system Informing employees/business partners early about changes in security situation Identifying opps and risks early to ensure sustained increase in enterprise value Impact assessment of future scenarios and measurement planning each quarter Compliance Management Preventive measures and controls to prevent legal violations and behaviour that does not comply with Group policies/code of Conduct Employee Relations (ER) ER framework supporting our objective of becoming Employer of Choice Strengthen engagement of our employees and equip managers locally 12
13 DHL RESILIENCE 360 Our incident monitoring platform enables real-time tracking of incidents capable of disrupting our supply chain by monitoring the entire supply base - our lanes, nodes, plants, suppliers, shipments, ordered components and more. DHL Resilience 360 monitoring system Over 20 risk categories, rates resiliency of individual locations, prompts them to formulate backup plans, and identifies risk hotspots and appropriate risk mitigation. Avoid costs related to production or operational standstill Minimize loss of sales and buffer stock, as supply is continuously linked to demand Quickly recover from disruption and efficiently mobilize mitigation actions We can be more responsive thanks to notification alerts, feedback loops and follow-up action triggers Prevention of negative reputational impact on our customers' brand and market share loss Prevent negative brand impact and loss of market share Certified by ISO
14 EMPLOYEES 14
15 UNCLASSIFIED (PUBLIC) KEY EMPLOYEE FIGURES 2014 DEUTSCHE POST DHL GROUP Deutsche Post DHL Group is one of the largest employers worldwide1) Europe w/o Germany (24%) ~117,000 Employees Germany (42%) ~206,000 Employees Americas (15%) ~76,000 Employees Asia/Pacific (15%) ~72,000 Employees Workforce worldwide 488,824 people: 64 % Men, 36 % Women 19.3 % women in leadership Others/RoW (4%) ~18,000 Employees New hires management-level: internal placement rate 93.9% 1) Headcount 15
16 TRAINING AND DEVELOPMENT Deutsche Post DHL Group s approach Deutsche Post DHL Group has adopted a Group-wide Certified Specialist approach to support career development and ensure we become leaders in both quality and service excellence Internal programs Certified curriculums for divisions & functions Company-wide learning management system 16
17 TRAINING AND DEVELOPMENT: EXAMPLE 1 EXPRESS DIVISION Cultural Change & Employee Engagement Program created FOCUS culture Certified International Specialist 100,000 Certified International Specialists completing CIS Foundation in 2010/11 All training is CIS: 920 different courses versions in 20 languages Exemplary Modules: Functional modules across Sales, Customer Services, Network Operations, Finance & HR, Compliance Awareness, Quality Awareness Since 2010 over 24,000 sessions delivered globally in over 2 million hours of learning Modules delivered by over 1,800 trained EXPRESS people HR responsible for CIS orchestration in majority of countries 17
18 TRAINING & DEVELOPMENT: EXAMPLE 2 TRAININGS FOR MANAGERS Employee Relations part of Group-wide Certified Program 2014 launched E-Learning for approx. 3,000 senior managers 43% have completed e-learning 641 manager completed ER Awareness Training during ER Impact assessments (2013/14) 2015: Launch group wide ER Certified program for ~70,000 frontline supervisors and managers Certified Training Objectives: Emphasize how Employee Relations drives greater employee engagement Build greater understanding of how to align local practices with global standards Develop an understanding of what it means to proactively manage ER issues 18
19 HEALTH, SAFETY AND EMPLOYEE WELL-BEING Deutsche Post DHL Group s approach Our strategy and measures for the health, safety and wellbeing of our employees and sustainability of workplaces, considering the relevant standards and certifications Policies Corporate Health Policy Occupational Health & Safety Policy Statement Road Safety Code Sickness rates within the Group (percentage) 7,6 7,4 5,45,6 5,2 5,2 8,4 8,6 4,8 4,9 Worldwide Germany
20 HEALTH, SAFETY AND EMPLOYEE WELL-BEING Occupational health and safety data Accident statistics Group wide 2014 Number of workplace accidents 19,470 Accident rate (number of accidents per 1,000 FTE per year) 52 Number of working days lost due to accidents (calendar days) 271,168 Working days lost per accident 13.9 Number of fatalities due to workplace accidents 1 Accident statistics by division 2014 PeP Express GFF SC CC/Other Number of workplace accidents 14,347 1, , Number of working days lost due to accidents (calendar days) 183,941 36,745 5,425 44, Working days lost per accident Accident statistics Germany (Deutsche Post AG) Number of workplace accidents Accident rate (number of accidents per 1,000 FTE per year) Number of working days lost due to accidents (calendar days) Working days lost per accident 21,3 24,9 21,7 22,7 22,1 Number of fatalities due to workplace accidents
21 DIVERSITY AND EQUAL OPPORTUNITY Deutsche Post DHL Group s approach As a global company we value the diversity of our workforce as genuine strength. We promote an inclusive work environment where everybody can contribute their skills and qualification regardless of gender, race, religion, age, disability, sexual orientation, national origin or any other characteristic protected under law Policies and guidelines Diversity and Inclusion Statement Code of Conduct Internal programs Diversity Council Diversity awareness training programs Support for employees with disability LGBT Network Rainbow net Women s networks Childcare facilities Flexible work arrangements 21
22 DIVERSITY AND EQUAL OPPORTUNITY - FACTS 22
23 Textmasterformat bearbeiten. UNCLASSIFIED (PUBLIC) OUTLOOK 1 We will put non-financial material issues in focus of what we do to become benchmark for responsible business 2 We conduct our second materiality analysis incl. impact assessment in We will define targets and KPIs on non-financial material issues 4 We will continue to measure progress and conduct performance improvements on critical issues SRI Nomura SRI Roadshow Paris Zurich 21 2 May June
24 Textmasterformat bearbeiten. UNCLASSIFIED (PUBLIC) THANK YOU
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