Carbon efficiency target met ahead of schedule

PwC

In 2016 we met our goal to improve our carbon efficiency index (CEX) by an additional index point. Each of the Group’s division contributed differently to our increased carbon efficiency. Improvements were driven primarily by continuous efficiency gains in the Global Forwarding, Freight division’s ocean freight operations, achieved through slow steaming and the use of ships with greater load capacity. Gains were also seen in our Express division, which used less fuel to transport more shipments in its pick-up and delivery operations.

Development of carbon efficiency¹

PwC

Development of carbon efficiency

In the reporting year, we adjusted the weighting of the respective divisional carbon efficiencies that are included in the CEX calculation. As before, the weighting is calculated using absolute carbon emissions, but emissons figures are now adjusted to reflect efficiency gains. In the past, because of these weightings, positive developments in the divisions were not appropriately reflected in the carbon efficiency performance indicator. As an example, over the past years the Global Forwarding, Freight division has been able to significantly reduce the carbon footprint of its ocean freight business. This development, however, reduced the division’s weighting in the carbon efficiency calculation. The figures from the base year 2007 until 2015 have been uniformly adjusted accordingly. For this period, the cumulative effect was four index points.

In 2016 our overall CEX value reached 30%. We have thus achieved our original climate protection goal ahead of schedule. Because our networks already operate at a high level of efficiency and our fleets and buildings already use state-of-the-art technologies, achieving significant efficiency gains year on year will be increasingly difficult. We nevertheless expect to improve carbon efficiencyA ratio index used by Deutsche Post DHL Group to manage the greenhouse gas emissions of its business operations, whereby emissions resulting from fuel and energy consumption are assessed in relation to services rendered (e.g. quantities/volumes of letters, parcels, pallets or containers). by one index point in 2017. As part of our vision for 2050, our goal is to increase our carbon efficiency by 50% compared to 2007 levels by 2025.

Developments in greenhouse gas emissions

PwC EN 4

Our greenhouse gas emissions for 2016 totaled 26.92 million tonnes of CO2e, a slight decrease from the previous year. At 6.05 million tonnes of CO2e, our overall scope 1The GHG Protocol (“A Corporate Accounting and Reporting Standard, revised edition”) categorizes greenhouse gases in three groups referred to as “scopes.” The classification into scopes 1, 2 or 3 is based on the source of the emissions.
• Scope 1: Direct greenhouse gas emissions resulting from the company’s own business activities.
• Scope 2: Indirect greenhouse gas emissions generated by the production of electricity, district heating and cooling.
• Scope 3: Other indirect greenhouse gas emissions.
and 2 emissions remained at the previous year’s level. The decrease in emissions occurred in our subcontracted transportation (scope 3), which accounted for 20.87 million tonnes of CO2e. This figure includes 0.08 million tonnes of CO2e from business travel. The decrease in scope 3The GHG Protocol (“A Corporate Accounting and Reporting Standard, revised edition”) categorizes greenhouse gases in three groups referred to as “scopes.” The classification into scopes 1, 2 or 3 is based on the source of the emissions.
• Scope 1: Direct greenhouse gas emissions resulting from the company’s own business activities.
• Scope 2: Indirect greenhouse gas emissions generated by the production of electricity, district heating and cooling.
• Scope 3: Other indirect greenhouse gas emissions.
emissions is due in large part to efficiency gains in both our road transport and ocean freight operations.

Group CO2e emissions (Scopes 1, 2 and 3)

PwC
Group CO2e emissions (Scopes 1, 2 and 3)

CO2e emissions (total) by source

PwC
CO2e emissions (total) by source

A multi-year overview as well as a detailed presentation of the data can be found in the Annex of this report.

In order to offer one consistent set of financial and greenhouse gas related figures for Deutsche Post DHL Group, we are using the control approach as outlined in Note 2 to the consolidated financial statement.