SEEING THE BIGGER PICTURE. Corporate Responsibility Fact Book

Transcription

1 SEEING THE BIGGER PICTURE Corporate Responsibility Fact Book

2 SEEING THE BIGGER PICTURE At Deutsche Post DHL Group, corporate responsibility is far more than the sum of our sustainability activities. It is about action based on a big-picture approach. To be truly impactful, ideas and measures should not only align with the requirements of the business and the needs of the stakeholders; they must also play into a larger, global strategy. This fact book provides an overview of our activities with regard to corporate responsibility.

3 3 CONTENTS I. Organization & Strategy 4 II. Employees & Workplace 42 III. Values & Guidelines 58 IV. Society & Engagement 70 V. Climate & Environmental Protection 82 VI. External Recognition 101

4 4 I. ORGANIZATION & STRATEGY

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6 6 THE GROUP Deutsche Post DHL Group is the world s leading logistics and mail communications company. At locations in over 220 countries and territories worldwide, our workforce of some 510,000 employees generated revenues exceeding 57.3 billion and EBIT of approximately 3.5 billion in the reporting year. The principal company of the Group is Deutsche Post AG, a listed corporation domiciled in Bonn, Germany. Each of the Group s four operating divisions Post - ecommerce - Parcel; Express; Global Forwarding, Freight; and Supply Chain is under the control of its own divisional headquarters. We have consolidated internal services such as Finance, IT, Procurement and Legal under Global Business Services. Group management functions are centralized in the Corporate Center.

7 I. Organization & Strategy 7 Organizational structure of Deutsche Post DHL Group Corporate Center CEO, Global Business Services Human Resources Finance Divisions Post - ecommerce - Parcel Express Global Forwarding, Freight Supply Chain

8 8 The Group in figures Key figures 2016 EBIT m 3,491 m 57,334 Revenue m 39,424 Revenue international m 2,639 Consolidated net profit 1 Share figures m 1,271 Dividend distribution 2.19 Basic earnings per share 1.05 Dividend per share 1) After deduction of non-controlling interests 1) After deduction of non-controlling interests

9 I. Organization & Strategy 9

10 10 GROUP BRANDS DEUTSCHE POST THE POSTAL SERVICE FOR GERMANY Deutsche Post is Europe s largest postal services company and market leader in Germany s mail and parcel market. With its Deutsche Post brand and some 150,000 employees committed to the highest service standards, the company is recognized as The Postal Service for Germany and one of the leading providers of international mail and parcel services. DHL THE LOGISTICS COMPANY FOR THE WORLD DHL is the leading brand in logistics. Comprising Express, Global Forwarding, Freight and Supply Chain, DHL s family of divisions employs around 350,000 people. Together, they offer customers a unique logistics portfolio including domestic and international parcel shipping, e-commerce transport and fulfillment solutions, international express shipping via road, air and ocean, as well as supply chain management.

11 I. Organization & Strategy 11 Brand values 2016 The Postal Service for Germany 29 German Top Ranked 29th 1 Brand value is increasing billion in 2016 ( 2.7 billion in 2015) The Logistics Company for the World One of the 100 most valuable global brands 1 Ranked 73rd 73 Brand value increases again 2 US$ 5.7 billion in 2016 (US$ 5.4 billion in 2015) 1) Source: Millward Brown, 2016; 2) Source: Interbrand, 2016; 3) Source: Brand Finance, 2016

12 12 BOARD OF MANAGEMENT AND SUPERVISORY BOARD As a listed German public limited company, Deutsche Post AG has a dual management structure. The Board of Management is responsible for the management of the company. It is appointed, overseen and advised by the Supervisory Board. MEMBERS OF THE BOARD OF MANAGEMENT Dr. Frank Appel Chief Executive Officer Global Business Services Member since 2002, appointed until 2022 Ken Allen Express Member since 2009, appointed until 2020 Jürgen Gerdes Post - ecommerce - Parcel Member since 2007, appointed until 2020

13 I. Organization & Strategy 13 John Gilbert Supply Chain Member since 2014, appointed until 2022 Melanie Kreis Finance, HR Member since 2014, appointed until 2022 Tim Scharwath Global Forwarding, Freight Member as of June 2017, appointed until 2020 THE SUPERVISORY BOARD The Supervisory Board comprises 20 members, including ten shareholder representatives and ten employee representatives.

14 14 CORPORATE RESPONSIBILITY BODIES The standards for responsible corporate governance are set in the Corporate Center and in Global Business Services. Standards are also set for remuneration in the Group, health management and occupational safety. The divisions are responsible for aligning customer requirements with the strategic and ethical principles of corporate responsibility and for anchoring the Code of Conduct for Suppliers in their contractual relationships. On the working level, various committees including the RBP Working Group, Diversity Council and Occupational Health & Safety Committee as well as other bodies identify core CR issues and prepare decision papers for submission to their respective parent committees. The Sustainable Advisory Council (SAC) is charged with reviewing our sustainability agenda from an external point of view, providing us with the perspectives and expertise of external experts.

15 Committees for corporate responsibility I. Organization & Strategy 15 HR Board Sustainability Advisory Council Diversity Council RBP Council Corporate Board OHS Committee Operations Board GoGreen Sponsors Board

16 16 SUSTAINABLE CORPORATE STRATEGY With sustainability and corporate responsibility as integral components of our corporate strategy, we are committed to meeting not only our operational requirements but also the requirements of Deutsche Post DHL Group stakeholders, as well as the needs of society and the environment. Corporate strategy goals Provider of Choice When customers think of logistics they will think Deutsche Post DHL Group Become the Benchmark for responsible business practice Investment of Choice Employer of Choice

17 I. Organization & Strategy 17 Provider of Choice Customers demand good service, which is why our strategic goal is to maintain customer satisfaction levels at 80% or higher. Customers also value corporate responsibility and want their supply chains to consistently maintain environmental and social standards. Employer of Choice Employees seek job security as well as opportunities to develop personally and professionally. Our goal for the Employee Opinion Survey is to achieve an approval rating of over 80% in the areas Employee Engagement and Active Leadership. Employees also prefer employers with strong corporate responsibility credentials. When companies adopt a sustainable management approach they have a positive impact on the motivation of their employees, and are more attractive to new talent. Investment of Choice Investors look for profitable companies with strong growth. One goal of our Strategy 2020 is to achieve a compound annual growth rate of more than 8% between 2013 and Companies with strong corporate responsibility credentials also carry lower investment risks.

18 18 Benchmark for responsible business More and more customers, employees and investors consider a company s record on responsible business before deciding in favor of that company. Indeed, the ability to balance profitability and sustainability is increasingly becoming a competitive factor. With its goal of becoming a benchmark for responsible business by 2020, the Group is aligning its business interests with its overarching mission: Connecting people, improving lives. Focus on material issues Our CR activities focus on the following commonly known material issues: compliance, standards in the value chain, data protection and security, employee engagement, learning and development, occupational health & safety, energy efficiency and climate change, air pollution and noise. These focus issues were identified as part of dialogue with the Group s various stakeholder groups before being reviewed and confirmed by management. Concrete targets have been assigned to each of the issues.

19 SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS I. Organization & Strategy 19 Deutsche Post DHL Group supports the United Nation s Sustainable Development Goals (SDGs). In order to leverage our existing Group-wide programs and material issues, we have chosen to focus on the following SDGs: Quality Education (#4), Decent Work and Economic Growth (#8), Sustainable Cities and Communities (#11), Climate Action (#13) and Partnerships for the Goals (#17).

20 20 SUSTAINABLE PRODUCT PORTFOLIO With its product portfolio, the Group offers postal and logistics services that not only offer added value to our customers but also generate benefits for society in a larger sense, especially in terms of the environment, health and global infrastructure. In this way sustainability issues are systematically addressed and implemented in the core business of Deutsche Post DHL Group.

21 I. Organization & Strategy 21 Medical Express DHL Parcelcopter Clinical Trial Depots GAVI Road Freight Coldchain DHL Thermonet Network Logistics Innovation Support Healthcare/ Get Airports Ready for Disaster Healthcare Products Provide Safe and Global Access to Logistics for Relief Supplies DHL Disaster Response Team Global Warehousing Footprint HEALTH Noise Reduction DPDHL Group s Solutions Deliver Societal Value Add LO GISTICS ENVIRONMENT INFR A STRUC TURE Resilience 360 e-vehicles and Communication Delivery by Bike Conservation of Natural Resources Global and Local Transport Global Logistics Network E-POST Reverse Logistics Solutions other Greenhouse Gas Emissions & Air Pollution Reduction of CO ², Electroreturn The Postal Service for Germany Envirosolutions Intermodal Teardrop Trailer DHL Express Bike Delivery StreetScooter Smart Truck

22 22 A CUSTOMER-CENTRIC CORPORATE CULTURE Since 2006, our First Choice continuous improvement initiative has provided a methodology for becoming the first-choice provider among customers. First Choice motivates: More than 29,000 executives and employees have been trained in using First Choice methodology. In addition, dialogue formats have involved over 100,000 employees in the program and made it possible for them to contribute their own knowledge and expertise to concrete improvement measures. First Choice works: Some 25,000 projects have been implemented so far, contributing to a verifiable increase in customer satisfaction levels. First Choice is close to the customer: With the help of more than 170 customer satisfaction surveys we have learned a great deal about what customers expect of us.

23 I. Organization & Strategy 23 Our Group-wide Certified initiative enhances employee skills and competencies, developing them into experts in their respective fields of work. Certified program taps potential: Our Group-wide Certified initiative will help develop our people into the industry s best. By 2020 we will train 80% of our employees to become certified specialists. More than 230,000 employees have already been certified. Certified conveys knowledge: The modules of this unique initiative cover a range of topics including basic knowledge about the industry and Group, as well as division-specific and function-specific content. Certified fosters a common corporate culture: The Certified program does more than impart knowledge; it also enhances employee motivation levels and establishes a customer-centric culture. Around the world, the Certified program helps enhance the quality of our services and further differentiates our company from the competition.

24 24 MILESTONES IN THE HISTORY OF THE GROUP Our story, which spans more than half a millennium, attests not only to the adaptability and resilience of our company but also to the relevance of our core mission: to connect people and improve lives around the world BIRTH OF THE MODERN-ERA POSTAL SYSTEM Franz von Taxis founds a new kind of postal service. By the mid-16th century a courier network covers all of Western Europe DANZAS FOUNDED Marie Mathias Nicolas Louis Danzas enters the shipping and transport business. The company plays an active role in the development of rail travel and steam navigation in the 19th century STATE-RUN COMMUNICATIONS CENTRALIZED Fusion of the Reichspost (Imperial postal service) and the Telegrafenverwaltung (Imperial telegraph administration) to enable and ensure basic, nationwide communication services. In 1924, it becomes the Deutsche Reichspost before transforming into the Deutsche Bundespost (German federal postal service) in 1950.

25 I. Organization & Strategy DHL FOUNDED Adrian Dalsey, Larry Hillblom and Robert Lynn found DHL in They begin by transporting cargo documents from San Francisco to Honolulu by plane, essentially inventing the international air express service DEUTSCHE POST AG Deutsche Post becomes a listed corporation and begins the transition from loss-making, state-run government agency to profitable global player and ultimately the international logistics company it is today ACQUISITION OF DANZAS With the acquisition of the Swiss logistics provider Danzas, Deutsche Post takes its first steps towards becoming an integrated logistics provider.

26 DEUTSCHE POST AG GOES PUBLIC Deutsche Post AG goes public on November 20, The largest IPO of the year in Germany (and third largest worldwide) is a major success ACQUISITION OF DHL Deutsche Post s partnership with DHL International began in In December 2002 DHL becomes a wholly owned subsidiary of the Group FIRST ENVIRONMENTAL PRODUCT DHL launches the Green Tonnage service in Sweden in 2002 the first green transport service. Deutsche Post launches its first green product in Germany in 2006 ( Pluspäckchen GoGreen ) CR REPORTING BEGINS The Group publishes its first Environment Report, followed by its first Human Resources and Social Report in As of 2005 both reports are combined into the Sustainability Report, which the Group has published annually since 2008.

27 I. Organization & Strategy PARTNERSHIP WITH THE UNITED NATIONS The Group launches a strategic partnership with the United Nations, and has been working together with the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and the United Nations Development Program (UNDP) ever since ACQUISITION OF EXEL In December 2005, Deutsche Post acquires the British logistics group Exel for 5.5 billion CORPORATE VALUES ARE ESTABLISHED IN THE CODE OF CONDUCT The Group signs the UN Global Compact and establishes its corporate values in the Code of Conduct.

28 DHL INNOVATION CENTER OPENED As a thought leader in the logistics industry, the Group invests in trend research and solution development. The DHL Innovation Center provides a central platform where customers and partners from academia, research and industry can engage with DHL experts SUPPLIER CODE OF CONDUCT The Supplier Code of Conduct ensures that the Group s values and principles are anchored throughout the supply chain LAUNCH OF THE GROUP-WIDE ENVIRONMENTAL AND CLIMATE PROTECTION PROGRAM GOGREEN With its GoGreen program, the Group becomes the first global logistics provider to establish a measurable carbon efficiency target that also includes transportation partner emissions.

29 I. Organization & Strategy GROUP-WIDE EMPLOYEE OPINION SURVEY The Employee Opinion Survey (EOS) was introduced throughout the Group in 2009 as a means of assessing employee engagement. Since then the EOS has been conducted yearly with the help of a standardized questionnaire. The bonus-relevant KPI Active Leadership is derived from the results of the survey GROUP-WIDE PROGRAM GOTEACH LAUNCHED GoTeach is the Group s contribution to improving educational opportunity and employability, which it regards as the critical prerequisite for social and economic progress around the world PARTNERSHIP WITH TEACH FOR ALL The goal of the partnership is to give all children and young people access to an excellent education, regardless of their socio-economic background.

30 PARTNERSHIP WITH SOS CHILDREN S VILLAGES The goal of the partnership with SOS Children s Villages is to help young people between the ages of 15 and 25 make the transition to working life and improve their chances of becoming independent, self-supporting young adults DEVELOPMENT OF THE STREET SCOOTER BEGINS In collaboration with StreetScooter GmbH, the Group begins development of a zero-emissions electric vehicle designed especially for mail and parcel delivery. The StreetScooter is deployed in 2013 as part of the Carbon-Free Delivery in Bonn project SUSTAINABILITY ACTION AREAS PRIORITIZED On the basis of a materiality analysis, the Group identifies eight core action areas (material issues) for corporate responsibility and establishes concrete targets for each of these areas.

31 I. Organization & Strategy CLIMATE PROTECTION TARGET ACHIEVED The Group achieves its 2008 climate protection target of improving carbon efficiency by 30% well ahead of the 2020 target date NEW ENVIRONMENTAL PROTECTION TARGET: ZERO EMISSIONS BY 2050 In support of the global effort to limit global warming to less than two degrees Celsius, Deutsche Post DHL Group establishes its own goal of zero emissions logistics by the year 2050, including four interim goals to be achieved by STREETSCOOTER PRODUCTION IS EXPANDED The Group plans to nearly double StreetScooter production up to 20,000 vehicles by the end of 2017 and begins selling the StreetScooter to third parties.

32 32 THE POST - ECOMMERCE - PARCEL DIVISION Deutsche Post is Europe s largest postal services company and market leader in Germany s mail and parcel market. With its Deutsche Post brand the company is recognized as The Postal Service for Germany and one of the leading providers of international mail and parcel services. Deutsche Post s portfolio of products and services spans a wide range of current and future postal/communications services from mail and parcel delivery, to secure electronic communications, and dialog marketing for private and business customers. Deutsche Post is also an industry leader in new technologies such as carbon-neutral shipping and logistics solutions for online retail. The PeP division employs some 213,000 people, including 150,000 under the Deutsche Post brand. More than 75,000 vehicles, including more than 2,500 StreetScooters More than 13,000 retail outlets and approx. 11,000 Paketshops

33 I. Organization & Strategy 33 Facts & Figures: Mail and parcel business Mail and parcel business 94% D+1 Letters delivered within Germany the day after posting 93.8% satisfied customers According to Kundenmonitor Deutschland Over 2,000 electric vehicles put into operation in 2016 TÜV certified Certified external system for measuring mail transit times (end-to-end) and internal system for measuring parcel transit times Open 53 hours Average weekly opening time of approx. 27,000 sales points in Germany Around 3,000 Packstations Around 900 Paketboxes Around 110,000 post boxes Around 25,000 bicycles

34 34 THE DHL DIVISIONS DHL is the world s leading logistics brand, with a family of divisions that offers customers a unique logistics portfolio. With some 350,000 employees in over 220 countries and territories around the world, DHL helps make global commerce possible by connecting people and companies safely and reliably. With its unique presence in developing and emerging countries, specialized solutions for growth sectors such as Technology, Life Sciences & Healthcare, Automotive, Energy and Retail, not to mention its proven commitment to corporate social responsibility, DHL is truly The logistics company for the world.

35 I. Organization & Strategy 35 Facts & Figures: DHL business units DHL business units My DHL Portal Simplifies the shipment of express items for business customers Around 290 sites certified by the Transported Asset Protection Association (TAPA) Insanely Customer Centric Culture Keeping a constant eye on customer requirements Customer improvement projects Approx. 100 improvement initiatives implemented in 2016 Net Promoter Approach Continuously turning criticism into improvements

36 36 EXPRESS In the Express division, we transport urgent documents and goods reliably and on time from door to door. Our global network spans more than 220 countries and territories, in which some 90,000 employees provide services to more than 2.5 million customers.

37 I. Organization & Strategy 37 Products and services: Time Definite, Same Day and Day Definite, optional services, logistics services, customs services and tailored solutions Network: 3 global hubs connected by an intercontinental network of regional hubs; more than 50,000 service points and over 1,500 locations Fleet: Over 250 dedicated aircraft (of which 185 Group-owned), approx. 30,700 vehicles

38 38 GLOBAL FORWARDING, FREIGHT The Global Forwarding, Freight division is DHL s air, ocean and overland freight forwarder. Our freight forwarding services include not only standardized transports, but also multimodal and sector-specific solutions as well as individualized industrial projects. The business model is based upon the brokerage of transport services between our customers and freight carriers. We are the market leader in air freight, one of the two leading providers of ocean freight services, and among the leaders in Europe s overland freight market. With over 44,000 employees we serve an established customer base that includes more than 50% of the Forbes 500 companies.

39 I. Organization & Strategy 39 Business units and products: Air freight, ocean freight, road freight, large-scale logistics projects, transport management, customs clearance Locations: 850 terminals, storage facilities and offices Transport volume: 3.6 million tonnes air freight, 3.1 million TEU ocean freight, 44 million tonnes European overland transport

40 40 SUPPLY CHAIN As the world s leading contract logistics provider, our approx. 149,000 employees provide our customers with a competitive advantage through customized supply chain solutions. The Supply Chain division s portfolio of services is based on internationally standardized modular components including warehousing, transport and value-added services.

41 I. Organization & Strategy 41 Infrastructure: Presence in over 50 countries and territories, 2,950 logistics centers, warehouses and terminals; around 13 million square meters of warehousing space (owned or leased Supply Chain sites) the equivalent of about 2,000 soccer fields. Products and services: Comprehensive contract logistics and industry solutions; business process outsourcing; digital and print marketing communications through Williams Lea Tag

42 42 II. EMPLOYEES & WORKPLACE

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44 44 EMPLOYEES Deutsche Post DHL Group is one of the world s largest employers, with some 510,000 employees at the close of The company provides a supportive, respectful work environment in which employees can develop their creative potential and commitment to the full. We believe this requires both constructive employer-employee dialogue as well as fair, reasonable and competitive remuneration. The vast majority of our workforce consists of employees working in the operational side of the business who are responsible for processing and distributing shipments and goods. We also employ experts in a range of specialist disciplines, including logistics experts, IT and finance specialists, and managers. The average employee age in the Group is 41.

45 II. Employees & Workplace 45 Employees by region 1 508,036 employees Europe² 333,080 employees Americas 81,152 employees Asia/Pacific 75,045 employees Other regions 18,759 employees 1) Headcount as of December 31; 2) 211,093 of which are employed in Germany Employees by division1 213, ,279 90,181 44,283 11,192 Post - ecommerce - Parcel Express Global Forwarding, Freight Supply Chain Corporate Center 1) Headcount as of December 31

46 46 GROWING WORKFORCE The financial strength of the company is also reflected in the steady growth of the workforce over time. Employee numbers 1 473, , , , , % average growth rate 35% 65% ) Headcount as of December 31

47 II. Employees & Workplace 47 REASONABLE PAY We ensure reasonable and equitable compensation through our systematic approach to job evaluation. Positions are graded based solely on job category and job content, and in line with our corporate values. In addition to the monthly salary, the Group offers employees numerous non-financial benefits such as flexible working hours, support in balancing family and career, and scholarships for employee children. Development of staff costs Staff costs ( million) 17,770 17,776 18,189 19,640 19, % average growth rate

48 48 RECRUITING YOUNG EMPLOYEES The Group offers a wide range of employment opportunities to high-school and university graduates. We train our young employees according to the applicable norms, standards and guidelines in the respective countries and prepare them for their future role in professional life. College/university graduates can take advantage of numerous trainee and college recruiting programs. The largest vocational training company in Germany Approx. 4,000 apprentices/trainees Approx. 2,500 new apprenticeship and study positions for % subsequently hired to full-time positions (or part-time work if requested) Over 15 officially recognized vocational occupations to choose from 12 integrated degree programs

49 II. Employees & Workplace 49 EMPLOYEE TRAINING AND DEVELOPMENT 230,000 of our employees have already been trained to become certified experts as part of the Group-wide Certified initiative. By 2020 we want to turn 80% of our employees into experts in their respective divisions. We also offer a comprehensive catalog of further education and training opportunities to motivate and encourage life-long learning. In 2016, over three quarters of our workforce took advantage of training opportunities, spending a total of more than 4.6 million hours in various online training courses and classroom education measures. This is equivalent to an average of 1.5 training days per year for each of our employees.

50 50 ALL DIFFERENT, TOGETHER SUCCESSFUL At Deutsche Post DHL Group people from different cultures with diverse backgrounds, world-views and talents come together as a team to find innovative solutions, develop new markets and win new customers. We consider this diversity a source of tremendous potential a driver of continued business growth and a key to attracting and retaining talent in our company. WOMEN IN EXECUTIVE POSITIONS 21.1% women in upper and middle management 40.0% women on the Supervisory Board 14.3% women on the Board of Management

51 Share of female employees per region II. Employees & Workplace 51 Americas 31.7 % Europe % Asia/Pacific 27.9 % Other regions 23.1 % male employees female employees 1) In Germany, women represent 43.3% of the workforce.

52 52 INCLUSION IN THE WORKPLACE We create a working environment that enables people with disabilities to take an active part in working life. INCLUSION IN GERMANY Approx. 15,000 employees with disabilities 16 young people with disabilities enrolled in apprenticeships 20 internship positions for people with disabilities

53 II. Employees & Workplace 53 LIVING DIVERSITY We embrace and respect gender and sexual diversity, and as a globally active enterprise we believe we have a special responsibility in this regard. Indeed, eight years ago we set up RAINBOWNET a Group-wide network for lesbian, gay, bisexual, transsexual and intersexual (LGBTI) employees.

54 54 GROUP-WIDE EMPLOYEE OPINION SURVEY We give our employees a voice. The annual anonymous Group-wide Employee Opinion Survey is used to measure employee engagement and identify areas where employees see room for improvement. The Employee Opinion Survey provides information on how close we are to becoming Employer of Choice, one of the Group s core objectives.

55 Results of the 2016 Employee Opinion Survey II. Employees & Workplace 55 74% Participation rate 75% Employee Engagement 74% Active Leadership One of the survey s central KPIs, Employee Engagement, helps us gauge the extent to which employees feel motivated to make our company successful, and go the extra mile for our customers. In the 2016 survey, Employee Engagement was rated at 75% two percentage points above the external reference value. Our managers influence employee engagement and motivation through their personal management styles. They also serve as role models in implementing our corporate values and goals. The results from the Active Leadership section of the survey are therefore an important non-financial performance indicator. Performance in this area is also a variable remuneration component for our executives.

56 56 EMPLOYEE RELATIONS A corporate culture free from discrimination, in which all employees are honored for their performance and engagement, sets us on the right track to becoming Employer of Choice. By putting sustainable employee relations structures in place, we have created the necessary framework to achieve this goal. Under the auspices of the ER Forum, comprising experts from across the Group, we address employee relations issues worldwide and derive recommendations for action. We also conduct regular country-level assessments as part of our ER due diligence process. Over and above this, we place great importance on conducting constructive dialogues with employee representatives. In addition to engaging in dialogue with their supervisors, employees can call upon these representatives to provide valuable support in representing their interests.

57 II. Employees & Workplace 57 HEALTH & OCCUPATIONAL SAFETY The health, well-being and safety of our employees around the world is our highest priority, which is why we pay special attention to issues related to health and occupational safety, and make sure to provide our people with safe and healthy working environments. Focus on prevention We raise awareness among employees with regard to their health and well-being. We empower and engage managers as well as employees to recognize workplace hazards and take appropriate action to avoid workplace accidents.

58 58 III. VALUES & GUIDELINES

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60 60 RESPONSIBLE BUSINESS PRACTICE Through responsible business practice we ensure that our business operates in accordance with applicable laws, ethical standards and international guidelines and we require our suppliers to do the same. Responsible business practice also means adopting measures that help strengthen the reputation of the Group, identify business opportunities at an early stage and effectively mitigate risk.

61 III. Values & Guidelines 61 We regard change as an incentive to develop sustainable solutions that strengthen our business today and in the future. With our resilience management activities we calculate risks and ensure the stability and robustness of our business operations and supply chains around the world.

62 62 CODE OF CONDUCT The mandatory values and guidelines provided by our Code of Conduct form the foundation for our corporate culture and business practices. The Code was developed together with the business divisions; it is applicable across the Group, while also taking regional requirements into account. The Code of Conduct provides orientation to employees with regard to responsible, ethical, legal conduct. We expect our managers to implement its content and lead by example, which is why the Code of Conduct is an integral component of our employment contracts with managers. Compliance with the Code of Conduct is monitored by the Compliance organization. Violations of the Code can be reported via various channels, including the Compliance Hotline.

63 III. Values & Guidelines 63 Deutsche Post DHL Group policies Principles Code of Conduct 1 Supplier Code of Conduct 2 Policies Corporate Procurement Policy Data Privacy Policy Corporate Health Policy Occupational Health & Safety Policy Environmental and Energy Policy Investment Policy Stakeholder Engagement Guideline 1) Guided by the principles of the Universal Declaration of Human Rights, the UN Global Compact, the International Labour Organization (ILO) Declaration on the Fundamental Principles and Rights at Work from 1998 and the OECD Guidelines for Multinational Enterprises; 2) The term suppliers also refers to our transportation subcontractors

64 64 SUPPLIER MANAGEMENT Our Supplier Code of Conduct ensures that our values and principles are embedded throughout our supply chains. It is an integral part of all Group contracts with suppliers and obligates our suppliers to ensure that their own business partners and subcontractors adhere to the same standards. We also support suppliers with our knowledge and expertise and offer them, among other things, an interactive training module on the Code of Conduct as well as the relevant environmental and social standards.

65 III. Values & Guidelines 65 DATA PROTECTION AND INFORMATION SECURITY High data protection standards are a top priority for us. Our Data Privacy Policy establishes the standards that apply Group-wide. In countries where there are no prevailing data protection rules or regulations, our policy serves as the basis for setting the binding minimum standard for protecting data. To ensure that our IT systems are secure, we have developed extensive guidelines and procedures based on ISO

66 66 COMPLIANCE As a globally active logistics provider, we operate in countries with very different political systems, laws, and cultural values. We comply with prevailing national laws and regulations including applicable anti-corruption and bribery laws as a matter of course, and also adhere to the principles established by the World Economic Forum s Partnering Against Corruption Initiative (PACI). To improve compliance culture and increase awareness with regard to potential compliance violations, we have made regular compliance training for managers and employees a key component of our compliance management system. We also conduct regular risk assessments to detect compliance-related risks at an early stage and identify their causes. NON- COMPLIANCE COMPLIANCE

67 Elements of the Compliance Management System III. Values & Guidelines 67 Compliance monitoring and improvement Compliance program Compliance culture Compliance organization Compliance risks Compliance objectives Compliance communication

68 68 RESILIENCE MANAGEMENT Customers expect a logistics services provider to ensure that their goods and shipments reach their destinations reliably within the agreed period of time. Our comprehensive opportunity and risk management system enables us to respond to disruptions and unforeseeable events quickly and effectively. We also use this comprehensive management approach for early detection of business opportunities, thus strengthening our competitive position.

69 Opportunity and risk management process III. Values & Guidelines 69 1 Identify and assess 2 Identify - Analyze - Define measures - Assess Aggregate and report Review - Supplement and change - Aggregate - Report 3 Overall strategy, risk management, compliance Determine - Manage 4 Operating measures Plan - Implement 5 Control Monitor early warning indicators - Review measures - Review results

70 70 IV. SOCIETY & ENGAGEMENT

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72 72 SOCIAL ENGAGEMENT As the world's leading transport and logistics company, we want to leverage our core competencies and the know-how of our employees in a way that makes a positive contribution to society and the environment. We collaborate closely with established partner organizations to ensure the maximum positive impact of our social programs and activities. DISASTER MANAGEMENT: GOHELP Our GoHelp program leverages the core logistics competencies of our employees to support the United Nations, making us part of a global humanitarian system. Any and all support provided by Deutsche Post DHL Group through GoHelp is free of charge.

73 Prevention through preparedness: Get Airports Ready for Disaster IV. Society & Engagement 73 In cooperation with the United Nations, our Get Airports Ready for Disaster (GARD) program helps prepare personnel at airports as well as relevant organizations and authorities for the logistical challenges associated with disaster relief efforts. GARD workshops consist of multi-day training sessions during which participants evaluate airport capacity, conduct risk assessments and develop individualized emergency response plans under the guidance of our experts. The follow-up module GARD plus assesses the effectiveness of recommended measures.

74 74 Relief aid: Disaster Response Teams In cooperation with the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), we have established a network of over 400 trained DHL employees who serve in our Disaster Response Teams (DRT) on a volunteer basis. When called upon by the UN, DRTs can be deployed to disaster areas within 72 hours to provide logistics support at main relief airports. DRT volunteers lend their logistics expertise to coordinating incoming relief supplies on site, preparing goods for further transport and ensuring delivery to the responsible relief organizations.

75 Disaster management at Deutsche Post DHL Group IV. Society & Engagement 75 GoHelp Disaster Preparedness Get Airports Ready For Disaster (GARD) GARD training conducted in 17 countries so far Workshops carried out at 38 airports Total of 807 participants in GARD workshops Disaster Relief Disaster Response Team (DRT) 39 DRT deployments total by end of DHL employee volunteers involved in DRT deployments 456 days of DRT deployments 60,000 tonnes of relief supplies handled through DRT deployments

76 76 IMPROVING EDUCATIONAL OPPORTUNITY AND EMPLOYABILITY: GOTEACH As part of our Group-wide program GoTeach, we work together with international partners to improve educational opportunity and employability for young people, especially those from disadvantaged socio-economic backgrounds. For all GoTeach activities, our employees share not only their time but also their own individual skills and experiences. Partnership with SOS Children s Villages Deutsche Post DHL Group s global collaboration with SOS Children s Villages includes partnerships in 26 countries. The main focus of the partnership is to support young people as

77 IV. Society & Engagement 77 they make the transition to working life, for example by means of educational programs, career guidance and opportunities to gain vocational qualifications. In 2016 around 2,000 young people took part in the program across 26 countries. The experiences gained from the partnership are made available to all country-level SOS Children s Villages organizations so that the cooperative model can be of use to even more partners. Partnership with Teach For All Teach For All is a global network whose mission is to improve educational opportunity around the world. Deutsche Post DHL Group has partnered with Teach For All in pursuit of a common goal: to give all children the opportunity to achieve their educational potential, regardless of their socio-economic backgrounds. The Group supports the global organization as well as the ten national member organizations that recruit university graduates to take on two-year assignments as teachers in schools in socially disadvantaged areas. Deutsche Post DHL Group employees also lend their experience and professional know-how to the cause: In 2016, 2,300 employees were involved in over 169 partnership activities.

78 78 REFUGEE AID Since 2015 Deutsche Post DHL Group has been running its own refugee aid initiative in Germany, which involves close collaborative partnerships with leading aid organizations. We focus our support on longer-term refugee integration programs, with an emphasis on language acquisition and vocational preparation and training. Since launching the initiative, the Group has been recognized on multiple occasions for its involvement in refugee aid as well as the outstanding commitment demonstrated by Group employees.

79 Refugee aid initiative at Deutsche Post DHL Group IV. Society & Engagement 79 > 15,000 employees 1,000 individual activities > 100 coordinators 292 refugees hired 26,000 m 2 of property made available 457 internships filled with refugees 199 employees supporting the Federal Office for Migration and Refugees (BAMF)

80 80 GLOBAL VOLUNTEER WORK Since its inception in 2011, Global Volunteer Day (GVD) has become a major component and driver of employee volunteer work across the Group. GVD provides Group employees with a chance to come into contact with different ways of life, broaden their horizons and improve social competencies. Volunteer work in the context of GVD is not limited to a single day or single project, but is designed to promote lasting ties between our employees and the many local non-profits and charities in which they are involved. Over and above this, we also provide financial support to our employees voluntary projects.

81 IV. Society & Engagement 81 Global Volunteer Day involved 106,000 employees 365,000 volunteer hours 2,490 projects

82 82 V. CLIMATE & ENVIRONMENTAL PROTECTION MISSION 2050: ZERO EMISSIONS

83 83

84 84 CLIMATE & ENVIRONMENTAL PROTECTION As a leading logistics company we connect people around the world and help drive global commerce. This impacts the environment in the form of greenhouse gas emissions, local air pollutants and noise. Our GoGreen environmental protection program takes action to reduce our own emissions and to support our customers and subcontractors in reducing the impact of their business on the environment. We work together with our customers to develop environmentally friendly logistics solutions guided by the concept of shared value the idea that we can create business value by contributing to society and the environment.

85 MISSION 2050: ZERO EMISSIONS V. Climate & Environmental Protection 85 In 2017 we set an ambitious new climate protection target to reduce all transport-related emissions to zero by the year 2050 our contribution to achieving the two-degree goal established at the 2015 UN Paris Climate Conference (COP 21). Four interim goals for 2025 To help turn this long-term vision into reality, we have established four interim goals for 2025: To increase our carbon efficiency by 50% compared to 2007 levels To make 70% of our pick-ups and deliveries with clean-energy solutions such as electric vehicles To have over 50% of our sales incorporate Green Solutions To train 80% of our employees to become certified GoGreen experts. We will also join with partners to plant one million trees each year.

86 86 EFFICIENCY MANAGEMENT We employ a diverse range of measures to improve the carbon efficiency of our air freight and road freight operations, and facilities. We do so by burning less, i.e. reducing the energy and Efficiency improvement approach Burn less (Reduction of energy consumption) Air fleet Road fleet Buildings Networks Air fleet renewal Reduction of energy consumption Optimized aerodynamics Engine modifications Expanded use of telematics systems Use of hybrid drive systems Intelligent lighting and control systems Efficient heating and cooling systems Energy-efficient building design Optimized network planning Optimized routes 1) Currently not possible. Participation in relevant Initiatives (aireg e. V.)

87 V. Climate & Environmental Protection 87 fuel consumption of our operations, and burning clean, i.e. tapping additional emissions-reduction potential through alternative energy solutions. Burn clean (Use of alternative energy sources) Use of alternative fuels 1 Use of alternative energy source Use of alternative fuels Use of electric vehicles powered by green electricity Increased use of energy from renewable sources and on-site generation of green energy Use of natural resources 2 Combined use of different modes of transport (multimodal solutions) Air fleet Road fleet Buildings Networks 2) Daylight and rainwater harvesting

88 88 AIR TRANSPORT With our fleet of over 250 dedicated aircraft, including 190 cargo planes and a number of smaller feeder aircraft, we serve approximately 500 airports worldwide via 19 main regional hubs and three global hubs. Aircraft by emissions class NO X CAEP/6 1 CAEP/4 1 CAEP/2 1 No classification 1) Classification issued by the Committee on Aviation Environmental Protection (CAEP). The higher the CAEP class, the more stringent the requirements.

89 V. Climate & Environmental Protection 89 Our air fleet meets exacting environmental and noise standards. The modernization of our fleet represents a conscious effort to improve efficiency, for example, through increased loading capacity and lower fuel consumption. Aircraft by noise standards Chapter 4 1 Chapter 3 1 1) International Civil Aviation Organization noise standard classification; 2) Chapter 3 includes one aircraft without classification.

90 90 ALTERNATIVE FUELS We support the usage of alternative fuels in aviation. However, at present not enough is known about how these fuels impact air operations and the environment, ruling out their largescale deployment. To promote the further development and deployment of alternative aviation fuels we are collaborating with other companies as part of the Aviation Initiative for Renewable Energy in Germany e.v. (aireg).

91 ROAD FREIGHT V. Climate & Environmental Protection 91 With a fleet of more than 92,000 vehicles worldwide, we offer the full spectrum of road freight services from short-range and medium-range delivery, to regional and long haul transport with heavy trucks. We implement a wide range of measures to improve the carbon efficiency of our road fleet; these measures in turn help reduce fuel consumption. Deutsche Post DHL Group vehicle fleet in 2016 Total 92,328 vehicles 12% trucks 19% cars 69% vans

92 1% Euro % Euro 6 92 VEHICLES BY EMISSION CLASS We continuously upgrade and renew our fleet in accordance with the latest emissions standards. Today, more than 48,000 of our road vehicles in Europe already meet Euro 5 or Euro 6 standards. Our use of electric vehicles, natural-gas powered vehicles and fuel efficiency technologies also has a positive impact on the emission of local air pollutants. Vehicles by emission class in 2016 Total 63, % Euro 4 62% Euro 5 + EEV 1) Covers our largest vehicle fleets within scope of Euro emission classification; 2) Includes Euro 1 and 2 vehicles

93 V. Climate & Environmental Protection 93 Efficiency-enhancing technologies in the road fleet 1 27, ,019 22, Aerodynamics & lightweight design Alternative drive systems Eco-chiptuning & speed limiting systems Telematics 1) One single vehicle can be modified with more than one optimization measure. 2) Data includes 2,240 measures implemented on subcontractor vehicles.

94 94 So far we have deployed some 4,200 vehicles with alternative drive technologies, including more than 2,500 StreetScooters the Group s own electric vehicle. Our transport subcontractors deploy some 2,000 alternative drive vehicles. StreetScooter: The electric motor on this 4.6 meter long delivery vehicle has a maximum power output of 45kW, the equivalent of 61 horsepower. The top speed of the StreetScooter is 85km/h and its lithium-ion battery has a range of up to 120 kilometers. In 2016 we introduced a larger version of the StreetScooter the Work L model with an impressive eight cubic meters of cargo space and a maximum vehicle load capacity of 1,000 kilograms.

95 V. Climate & Environmental Protection 95 Teardrop trailers: So far we have deployed over 1,400 of these aerodynamically shaped trailers which deliver enhanced fuel efficiency. Bicycles: In Germany our fleet of delivery bicycles consists of 24,900 bicycles, including 7,600 e-bikes and 2,700 e-trikes.

96 96 BUILDINGS We maintain some 12,000 sites worldwide, including office buildings, mail and parcel centers, logistics warehouses, Packstations and drop-off points. By assessing each individual location, we develop an appropriate efficiency concept to optimize energy consumption on site from cutting-edge lighting technology and heating and cooling concepts with intelligent control systems to the use of electricity from renewable sources such as wind, hydropower, solar and biomass.

97 V. Climate & Environmental Protection 97 Power consumption at Deutsche Post DHL Group in Total 1,647 million kwh 38% standard electricity 62% green electricity 1) Includes electric vehicles

98 98 CO 2 GREEN PRODUCTS Under the name GoGreen Services we offer environmentally-friendly products and develop individualized logistics solutions for green optimization. As a logistics provider our green solutions not only contribute to the environment and society, but, in keeping with our Shared Value approach, also create value for our company and customers. Green products offered by Deutsche Post DHL Group Carbon Reports Reports, analysis and simulations The way to Green Logistics Green Optimization Carbon-efficient logistics Circular economy Climate Neutral Emissions offsetting and climate protection projects

99 V. Climate & Environmental Protection 99 Carbon reports Carbon reports enable us to disclose the greenhouse gasses generated by our transport and logistics services while helping our customers to gain a deeper understanding of the environmental impact of their transport and logistics activities. In 2016, approx. 4.4 million tonnes of CO2e were recorded in our reports. Green optimization Tailored concepts allow us to improve the efficiency of our customers logistics while reducing their environmental impact. Reverse logistics and waste management solutions are just some of the ways we make a positive contribution to the circular economy. Climate-neutral products Our climate-neutral GoGreen service lets customers offset their transport and logistics-related greenhouse gas emissions. In 2016 we transported 2 billion climate-neutral shipments offsetting around 253,000 tonnes of CO2e in the process.

100 100 FAIRTRADE-CERTIFIED CLIMATE PROTECTION PROJECT IN LESOTHO Our climate protection project in Lesotho helps us in realizing our climate-neutral services. As part of the project, village communities were provided with around 10,000 high-efficiency cooking stoves, which reduce carbon emissions by up to 80% as compared to traditional cooking methods. In 2016 our project in Lesotho became the first logistics project to be certified under the Fairtrade Climate Standard.

101 VI. External Recognition 101 VI. EXTERNAL RECOGNITION When it comes to corporate responsibility, our performance as a company is evaluated independently against economic, ecological and ethical standards as well as criteria relevant to good corporate governance. Deutsche Post DHL Group has achieved very good results in prestigious sustainability ratings and is also positioned at the top of supplier platforms and in media rankings. Major rating agencies and supplier platforms