Basic information on strategic approach Bonn, March 7, 2018

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1 Corporate Responsibility at Deutsche Post DHL Group Basic information on strategic approach Bonn, March 7, 2018

2 Our purpose As the world s leading logistics company, we enable global trade in over 220 countries and territories, and empower people to enjoy better lives. Connecting people, improving lives 2

3 Our corporate goals The importance of acting responsibly is increasing and is therefore reflected in our ambition to become a benchmark company for responsible business. Provider of Choice Customers want to ensure environmental and ethical standards along their supply chains. Investment of Choice More and more investors consider ESG criteria in assessing long-term financial prospects of companies. Deutsche Post DHL Group will be the Benchmark for Responsible Business Employer of Choice Employees motivation, as well as a company s ability to attract new talent, is considerably influenced by a company s reputation for being a good corporate citizen. 3

4 17 Goals for sustainable development (Agenda 2030) We support the United Nations Sustainable Development Goals (SDGs). As a longstanding partner of the UN, Deutsche Post DHL Group strongly supports all SDGs. Many aspects of the SDGs are already incorporated into our corporate activities and programs. We have selected five focus SDGs (4, 8, 11, 13, 17), reflecting our company s responsibility and best possible impact on solving sustainable development challenges. 4

5 Our mission 2050: zero emissions We want to reduce our logistics-related emissions to zero by To get us there, we ve set four milestones for 2025: We want to increase our carbon efficiency by 50% over 2007 levels. We want to operate 70% of our own first and last mile services with clean pick-up and delivery solutions. We want more than 50% of our sales to incorporate Green Solutions. We want to train 80% of our employees to become certified GoGreen specialists and together with partners, we will plant one million trees each year. 5

6 Selected CR activities at a glance (2017) GARD 1) workshops at 44 airports since ) Get Airports Ready for Disaster Around 398,000 volunteer hours in GVD activities since % CO 2 efficiency improvement Around two billion climateneutral shipments 2,700 volunteers reached 24,000 beneficiaries in our GoTeach partnerships with SOS Children s Villages and Teach For All 40 DRT 1) deployments since ) Disaster Response Team DPDHL Group is committed to 17 Global Goals for Sustainable Development > 265,000 employees are trained to become Certified specialists ~ 8,000 vehicles with alternative drive systems, over 5,500 StreetScooter actively in use Refugee Initiative: 16,000 employees engaged in ~ 1,000 refugee aid efforts in Germany. ~ 600 refugees employed, realization of ~ 780 internships Over 60% electricity from renewable energy sources Shared Value partnership with Gavi, the vaccine alliance 6

7 Corporate responsibility drives long-term success non exhaustive Carbon Efficiency Index (CEX) Top results in CR Ratings and Rankings Increasing Employee Engagement KPI Active Leadership in Employee Opinion Survey: 75% 76% (target) 7

8 Our CR framework RESPONSIBLE BUSINESS CORPORATE PRACTICE CITIZENSHIP Conducting our our business Leveraging Leveraging our core our competencies core responsibly, focusing on on together competencies with partners to contribute to contribute to managing material material issues issues to social social progress progress SHARED VALUE Providing sustainable solutions for business and society HUMAN RESOURCES MANAGEMENT Committed to excellence, leveraging the potential of our 520,000 employees worldwide 8


10 How we ensure responsible business practice We operate to high standards around the world through a network of experts. How we operate responsibly We set standards for responsible logistics We continuously strive to meet our stakeholders expectations We work with our suppliers to ensure that they deliver similar standards We adhere to applicable laws, ethical standards, and international norms How we drive responsible business practices We have built up a Responsible Business Practice Network: The Network consists of experts from all relevant functions and business units It systematically manages the Group s key responsibility topics and engages with our stakeholders All Business Units Compliance Corporate Communications & Responsibility Corporate HR Corporate Security Data protection and security Occupational Health and Safety Procurement Our goal: We want to be the benchmark for a responsible business. 10

11 Our process to manage the Group s responsibility agenda By systematically engaging with our stakeholders, we identify issues which are most relevant to them and to our business success. Gaining insights: Materiality Analysis Preparing agenda: Confirm material issues Become the Benchmark for responsible business practice Continuous stakeholder engagement External reporting Internal monitoring of progress Setting agenda: Set KPIs & targets with management approval 11

12 Our CR priorities We use our materiality analysis and stakeholder dialog to identify material CR issues for the group. Prioritized issues Governance Compliance Standards in the value chain (suppliers and subcontractors) Data protection and security People Employee engagement Learning and development Occupational health and safety Human rights Environment Energy efficiency and climate change Air pollution 12


14 Corporate Citizenship Our Corporate Citizenship activities are based upon strategic corporate programs and supported by the volunteering efforts of our employees worldwide locally. GoHelp GoTeach Instruments DRT DHL Disaster Response teams: Professional logistics support at airports to ensure speedy, efficient supply chain after natural disasters SOS Childrens V. Employees support young people mastering the transition to the world of work by sharing experience and expertise Global Volunteer Day Mobilize our employees worldwide to address local social and environmental needs with a partner organization GARD Get Airports Ready for Disaster: Workshops to train airport employees and representatives of disaster management authorities Teach For All Financial support and volunteering efforts to support teaching participants and students in underserved schools Living Responsibility Fund Promote and acknowledge extraordinary volunteering efforts, employees can apply for financial support 14

15 Achievements of our Refugee Initiative As a company operating throughout Germany and with employees all over the world, we and our partners contribute to the integration of refugees. ~26,000 ~16,000 ~780 ~600 ~ square meters of property made available employees engaged in more than 1,000 refugee aid projects internships realized, providing vocational orientation for young adults refugees employed in Deutsche Post branch offices employees support the Federal Agency for Migration and Refugees refugee students reached every academic year by 5 Fellow teachers of Teach For Lebanon CR Strategy February


17 Delivering shared value through our logistics solutions Our core business activities deliver both business impact and benefit to society. Deutsche Post DHL Group s core business activities deliver on behalf of sustainable development worldwide (SDGs) With our logistics products and solutions, we contribute to the areas of health, infrastructure and environment All logistics solutions deliver shared value for us, our customers and the society. 17

18 Example environment: our DHL GoGreen solutions We offer green products and services to generate shared value for our and our customers business as well as for the environment. GoGreen Solutions category What it is about What customers get Carbon Report Easy-to-understand and accurate reports of customer and product related greenhouse gas emissions in the supply chain. Clear view on where to improve Green Optimization Solutions for minimizing and/or avoiding logistics-related emissions, waste and other environmental impacts by capturing efficiency gains along the entire logistics supply chain. Concrete improvement measures for a more environmentally-friendly supply chain Climate Neutral Verified calculation and offsetting of greenhouse gas emissions for our transport and logistics services through climate protection projects. Climate neutral supply chain and official certificate stating annual CO 2 e offset 18

19 Example health: our global partnership with GAVI, the vaccine alliance Global partnership to improve delivery of life-saving vaccines in GAVI-supported 1) countries. Societal Benefit Supporting the Gavi Alliance s mission of significantly reducing child mortality and protecting people s health in lower-income countries Business Benefit DPDHL Group will deploy its existing network capabilities alongside innovative customized logistics solutions to make immunization supply chains in developing countries more efficient 1) GAVI eligible country list 19