DPDHL Sustainability Report 2019

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2019 SUSTAINABILITY REPORT

CONNECTING
PEOPLE.

IMPROVING
LIVES.
CONTENTS OUR KEY FIGURES IN 2019
10 E
 XCELLENCE DELIVERED
04 Foreword IN A SUSTAINABLE WAY

FINANCE
08 About this report
€63,341 million revenue €3.6 billion in investments

23 THE GROUP 75 SOCIETY €4,128 million EBIT €21,610 million in staff costs
24 Business model & products 76 Social matters
26 Strategy 77 Our responsibility
29 Stakeholder dialogue 78 Volunteering

EMPLOYEES
32 Leadership & management 80 Disaster management
approx. 550,000 65.6% men
35 Economic performance 82 Improving employability
employees

39 RESILIENCE & 83 ENVIRONMENT 22.2% women 34.4% women


INTEGRITY in management positions
84 Environmental matters
40 Preventing corruption & bribery 85 Climate &
environmental protection
41 Codes of conduct

ENVIRONMENT
88 Efficiency & fuel consumption
43 Risk detection & approx. 13,500 vehicles 28.95 million t
crisis management 93 Air pollution
with alternative drive systems of carbon emissions
46 Compliance 95 Green products
50 Working with suppliers 95 Training & reforesting
approx. 27,000 bicycles 35% efficiency gain
96 Other environmental aspects
compared to 2007
53 EMPLOYEES
54 Employee matters
97 ANNEX
56 Workforce diversity 98 Employees
Finding your way around
61 Human rights & 105 Environment
Material issues Audited content
employee relations
108 Society
64 Motivation & satisfaction Cross-reference within the Report Reference to external content
109 Financial figures
70 Occupational health & safety
110 Assurance Report Glossary entry

112 Glossary & Index


FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 5

SUSTAINABILITY IS PART OF OUR DNA


Connecting people, improving lives: Sustainability is integral to Strategy 2025...
How do we make that a reality? Absolutely. Sustainability is being even more closely
We use our logistics services to connect people and integrated into our three bottom lines of becoming
enable flows of goods and trade to every corner of the ­Employer, Provider and Investment of Choice. We want
world – we view this as our purpose. The taxes we pay to increase our profitability in a continuous, sustainable
locally contribute to increased prosperity; our infra- way, and embed social and environmental aspects

“Global challenges structure and the jobs we create have an indirect


­positive impact which is felt by communities on the
ground. It goes without saying that we take potential
more firmly in our business operations. As a signatory
to the UN Global Compact this is a consistent and logi-
cal continuation of the measures we implemented
can only be tackled environmental impacts into account – after all, social
and ecological responsibility have long been integral to
years ago. We naturally take the UN Sustainable
­Development Goals into account as we go. As diverse

together.” our operations. I firmly believe that logistics is critical


for sustainable economic growth.
as our business models may be, our operative business
divisions and corporate functions all agree that,
­particularly in our logistics operations, sustainable
­development is a must as well as a favorable
Sustainability necessitates change. ­differentiating feature. Page 26
First, let me say that 2019 was a very successful year
for Deutsche Post DHL Group. Our company is on firm
financial footing, and we are excellently positioned for LOGISTICS IS CRITICAL
the future.
FOR SUSTAINABLE
Strategy 2025 has enabled us to further cement our ECONOMIC GROWTH
focus and set new goals. We are monitoring current
geopolitical developments and trade limitations that
may have an impact on our business – and are well
­prepared moving forward. We intend to continue to Logistics without digitalization is
utilize the opportunities that globalization affords. ­inconceivable.
The booming e-commerce sector and the associated Global networks and processes are accelerating. This
­intensive global exchange of goods drive our growth. calls for new infrastructures, and places huge demands
The ongoing digitalization of our business operations is on digital security. Existing job profiles will change and
also picking up speed and will significantly improve our new ones will emerge. This makes it all the more
processes. ­important that we continually develop our employees
Dr. Frank Appel as we move forward together into the digital world of
CEO work. By 2025 we will be investing €2 billion to
­improve the customer experience, our operative
­performance and, of course, working conditions for
our employees.
6 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 7

Climate and environmental protection are Furthermore, we put four new aircraft into service to How does diversity influence our Let’s talk about the future.
gaining importance on a global scale. replace older planes in our fleet. These will generate role as an employer? Just by making small changes in our everyday lives, we
But as an industry, logistics also produces roughly 18% less carbon emissions and contribute to Very positively! We see the diversity of our workforce can all help to protect the environment and promote
carbon emissions. improved fuel and emissions efficiency. Our road as a key success factor. Their different experiences – social development. But if we are to tackle the bigger
Although some 14% of greenhouse gas emissions are ­vehicle fleet now comprises more than 13,000 vehicles personal, cultural and intellectual – make them a social challenges, then global solutions are needed.
caused by the transportation sector, our share amounts with alternative drive systems. At the moment, our strong interface to our customers. Indeed, we employ Joint efforts make for harmonized conditions, and they
to just 0.4%. Contrary to popular belief, online retail ­biggest challenge lies in medium and long-haul people from some 175 nations at our headquarters in prevent distortion of competition. Let me use sustain-
and the associated increase in transportation volumes ­operations because electric vehicles are not yet viable. Bonn alone. In 2019 we were able to provide jobs for able synthetic fuels as an example. If they were already
is not fundamentally bad for the environment. The As a solution I believe we need a rapidly a
­ vailable supply some 4,200 refugees and take on around 90 as ap- mature for market, they could help reduce greenhouse
­carbon footprint of a normal parcel corresponds to a of sustainably produced synthetic f­ uels. Page 88 prentices. With our Strategy 2025, we have for the first gas emissions in aviation. That is why we will be
three-kilometer journey by car. With growing volumes, time set a global target for women in management ­intensifying our involvement in related initiatives,
that ratio improves to the benefit of online retail. And ­positions: We want to increase the percentage of while ­driving cross-sectoral dialogue with the aim of
while I in no way wish to understate the impact of our 13% OF OUR VEHICLES ARE ­female managers from 22% today to 30% by 2025. developing a global strategy and global standards. Only
business operations, this is actually something we have by joining forces can we move forward in a truly
been working on for several decades.
ALREADY EQUIPPED WITH ­sustainable way.
ALTERNATIVE DRIVE SYSTEMS Employee volunteering remains a key factor.
Yes, this is where our purpose really comes to the fore.
The demands made of sustainable With our Corporate Citizenship initiative, we offer
logistics are more complex than ever before. ­employees the chance to develop and to utilize their
By introducing suitable measures, we have paved the Finding solutions requires ongoing dialogue. knowledge and skills to benefit society. We make our
way for sustainable logistics and have worked together One of our successes in 2019 is certainly our long- networks and our services available free of charge – for
with our stakeholders to identify “energy efficiency and standing working relationship with the UNI and ITF, example to assist humanitarian efforts in the aftermath
climate change” and “air pollution” as key action areas. the two biggest international union associations. The of natural disasters. More than 114,000 employees
Our goal is an ambitious one: By 2050 we want to foundation of mutual trust we have built will continue volunteered in around 3,100 local-level projects in
­reduce our logistics-related emissions to net zero. to shape our regular dialogue in the future. To be 2019 alone. Page 79
However, the number and complexity of statutory ­honest, achieving a common understanding for respect
­requirements continue to increase – for example in for ­human rights across cultural, regional and legal
­relation to customs and export controls. With our divides can present certain challenges. This is why our
­compliance management system, we ensure that our HR experts engage in ongoing dialogue with all of the
transportation services comply with prevailing law relevant stakeholders. Page 62
around the world, and uphold our reputation in the
eyes of our customers and business partners. And
when it comes to the sustainability of our business What else have we achieved as an employer? “Top Employer and Great
­operations, we are well-equipped to respond to the With some 550,000 employees, we are one of the larg-
growing demands brought about by “green taxonomy” est employers in the transportation and logistics sector. Place to Work confirm
and Fridays for Future activists, and with these the One unmistakable sign of our economic strength is the
­increased expectations as regards reporting. annual 2.5% average growth in our workforce, and the we are Employer of Choice
2.8% increase in our personnel expenditure since 2015.
Once again, we received Top Employer and Great Place in our industry.”
Our environmental successes. to Work awards, and the increased approval rates in
There are many. For example, we have improved our Group-wide Employee Opinion Survey confirm that
­energy efficiency by an additional 2 percentage points, we have adopted the right approach. Page 69
raising it to 35% compared with 2007. This was largely
due to efficiency gains both in ocean and road freight.
However, the increased use of green electricity at our
sites has also had a positive impact.
8 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 9

ABOUT THIS REPORT


This 2019 Sustainability Report includes the mandatory The non-financial performance indicators used for managing n Emissions data: In accordance with the Greenhouse Gas Inclusive language
­disclosures required by Sections 289b ff. and 315b ff. of the the Company were determined on the basis of their material- Protocol, Scope 2 greenhouse gas emissions are
Handelsgesetzbuch (HGB - German Commercial Code), ity in accordance with the German Commercial Code; the Ger- reported as gross CO2e volumes using both the site- In keeping with the importance we place on inclusion and
which have been brought together in a Separate Consolidated man Accounting Standards (GASs) were applied. References based and the market-based method. Unless specifically integration, the language used in this report aims to be
Non-financial Report (“Non-financial Report”). The to disclosures that are not included in the Group Management indicated in the text, the market-based method is used ­gender-neutral. Words of any gender also refer to other
­information that forms the Non-financial Report applies both Report represent information in excess of the disclosures in all cases. Our data calculation methodologies meet ­genders.
to Deutsche Post AG and to the Group, and is disclosed on a required by the German Commercial Code; these are not part the requirements of the European Emissions Trading
gray background preceding the individual chapters contain- of the Non-financial Report. System (EU-ETS) as well as the EN 16258 and ISO
ing our voluntary reporting. 14064 ­standards. Abbreviations and definitions
Sustainability Report
In order to avoid redundant reporting, the Non-financial This report has been prepared in accordance with the GRI Reportable risks The following abbreviations and definitions are used in the
Report contains both the descriptions of our policies required Standards (core option). The material issues selected for report:
by law and our management approaches in accordance with ­inclusion in the report are based on the results of the 2019 The Group’s opportunity and risk management process also
the GRI Standards. Unless otherwise indicated, the informa- materiality analysis in accordance with the GRI Standards, includes and quantifies opportunities and risks that are rel- n SDGs: United Nations’ Sustainable Development Goals
tion provided in the Sustainability Report covers the period which builds on the analysis conducted in 2017. In addition, evant to the minimum requirements for the Non-financial
from January 1 to December 31, 2019, and applies to the we also report on selected topics to which we, as a Company, Report. n NGOs: Non-governmental organizations
entire consolidated group as described in the Group’s 2019 are committed and want to provide transparency about. The
consolidated financial statements. report also serves as an ­Advanced Level Communication on Neither the Group’s early warning system nor the assessment n Anti-Corruption Policy: Anti-corruption and Business
Progress (COP) on our commitment to the Ten Principles set made by its Board of Management revealed any reportable Ethics Policy
out in the UN Global Compact (UNGC). The linkages to the risks for the Group that are linked to its own business activi-
Reporting standards UNGC’s Ten Principles are based on the joint UNCI/GRI publi- ties, business relationships, products or services and that are n ER Forum: Employee Relations Forum
cation “Making the ­Connection”. We also take into account the highly likely to have a severe adverse impact on the material
Non-financial Report information needs of the Sustainable Accounting Standards aspects now or in the future. n Supplier Code of Conduct: The term “suppliers” also
The information that forms part of the Non-financial Report is Board and rating agencies. includes our transportation subcontractors.
disclosed on a gray background at the start of the individual
chapters. In accordance with the requirements of the German Independent third-party review
Commercial Code, the following non-financial aspects were
Data capture and bases of calculation
The review was conducted by PricewaterhouseCoopers
established as significant for the Company:
n Employee data: Unless otherwise noted, employee data Wirtschaftsprüfungsgesellschaft GmbH, Frankfurt am Main,
in this report refers to the headcount as of the reporting Germany in accordance with ISAE 3000 (Revised). Reviewed
n Anti-corruption and bribery matters Page 40
date (December 31, 2019). content is indicated by this symbol.
n Respect for human rights in the supply chain Page 41,
in employee relations Page 61 n Measurement techniques: The measurement tech- n Non-financial Report: The Supervisory Board commis-
niques used are explained in the relevant places in the sioned a limited assurance review of the contents of the
n Employee matters relating to the issues of
Sustainability Report. Similarly, the bases of calculation Non-financial Report.
employee engagement, employee development, and
for data, and information that is fully or partly based on
occupational health and safety Page 54
estimates, are explained directly in context. This also n Sustainability Report: Similarly, the Board of
n Social matters relating to the issue of applies to any changes made in the bases of calculation ­Management commissioned a limited assurance review
corporate citizenship Page 76 or adjustments to data compared with the previous year. of the contents of the voluntary reporting.

n Environmental matters relating to the issue of


Information on the scope and findings of the two reviews can
energy efficiency and climate change Page 84
be found in the assurance report. Page 110
EXCELLENCE DELIVERED CREATING A COMMON
IN A SUSTAINABLE WAY UNDERSTANDING
Excellence. Simply Delivered. As climate change, resource scarcity and the impact on future generations gain more and
more public attention, these issues are also significantly impacting business strategy at
Deutsche Post DHL Group, which has made sustainability a core component of its Strategy 2025.

Sustainability, of course, is nothing new at Deutsche Post It never fails to impress me how much passion our people
DHL Group. All of our business activities are aligned with bring to the wide range of corporate citizenship and
the company’s purpose of connecting people and ­environmental projects they’re involved in on a local level.
­improving lives. With our sustainability activities bundled
into three main areas – employees, society and the I strongly believe that sustainability can and will
­environment – we are actively involved on numerous bring about fundamental social and economic change.
fronts, as we explore ways to reduce emissions and bring We at Deutsche Post DHL Group are, of course, not just
new solutions to our customers, all the while embracing ­by­standers to this transformation, but actively shape
digitalization as an opportunity. Ours is a culture of this change on a daily basis. One of our jobs in Corporate
­inclusiveness, in part because we know that the diversity ­Communications is to create a common understanding of
of our workforce is what makes us strong. at times complex topics related to sustainability – and to
inspire even more of our people to engage as volunteers.

Sustainable business poses a challenge to Deutsche Post


DHL Group, but we also see it as a real opportunity.
­Sustainability is a core component of our corporate
­strategy because it has become a key differentiator in
­business today – and one that serves a very positive
­purpose. By collaborating in international and cross-­
sectoral initiatives we are playing an active part in
shaping the future – only together can we meet the
major challenges of our age.

SOCIETY AND BUSINESS CAN


CHANGE FOR THE BETTER
Monika Schaller
Executive Vice President
Group Communications,
Sustainability & Brand

 11
DIGITALIZATION AND
CULTURAL CHANGE
Digitalization is changing the world of work. As we embark on this journey together, we are We want to be Employer of Choice.
Our employees are and will remain the
keen to spark enthusiasm among our employees for the opportunities that new technologies key to our success.
are creating.
Ideally, employees whose tasks can be automated in future
will be able to take on different responsibilities for which we
How will digitalization transform logistics? Job profiles will change.
can provide interdisciplinary training in the specialist areas
and methods their new roles require. In return, we hope to
There isn’t an area that will be left untouched. Digital Yes, but they will do so in a positive way. We’re not just
be met with open-mindedness, curiosity and a willingness to
technologies speed up our business; tasks can be modernizing our IT systems – our applications and
explore the opportunities these new requirements can bring.
­performed with greater speed, ease and flexibility. ­p­rocesses are also being transformed. For example,
Digitalization is a continuous process that requires people to
­Digitalization will strengthen global connectedness, we can now process large amounts of data better,
take responsibility for their own advancement, and this
­benefiting both our customers and our employees. ­enabling us to design complex processes more efficiently.
­includes learning new things.
There’s no denying that digital transformation is a And while this will lead to changes in existing job profiles,
key factor for the future of our business. completely new fields of activity will also emerge.
Towards lasting cultural change.
New skills will be required for the jobs of the future, skills
How and where we perform our jobs will change radically in
that differ considerably from those needed today. Highly
certain fields. Activities performed at bricks and mortar
repetitive tasks and activities involving physical exertion
locations will increasingly be assisted by automation.
will gradually be automated. By contrast, cognitive and
DIGITALIZATION – intercultural skills and creativity will be a high priority in
We are already collaborating in numerous cross-
divisional and international projects that would be
PEOPLE WILL ALWAYS BE NEEDED the job profiles of the future. In the logistics business,
inconceivable without the help of digital
­people are irreplaceable.
technologies. This reinforces team members’
sense of responsibility, motivates them and
encourages innovation and ingenuity. It is
exactly this capacity for renewal that ensures
lasting success for our company.

In my position as Labor Director, this also means we


have to engage in ongoing dialogue with our social
partners to find new and flexible solutions to accommodate
this trend – in our employment contracts and remuneration
structures and in our digital training programs. And in the
same vein, our processes must be realigned. Dr. Thomas Ogilvie
Board Member
Human Resources, Labor Director,
Corporate Incubations

12  13
Environment

TECHNOLOGIES THAT
AID CLIMATE PROTECTION
The diversity of our business models means that we have equally
diverse ways of improving our energy efficiency. We use a variety
of alternative energy sources and drive systems and test them in our
daily operations. Green electricity already meets over 80% of our
total electricity demands at Group sites. We are gradually equipping
our buildings with more efficient systems; some are already
­emission-free. We are also continuously modernizing our fleets.
WE PUT NUMEROUS
For ­example, 13% of our vehicles are equipped with alternative drive ALTERNATIVES TO THE
systems. In our air and ocean freight business, we select transporta-
tion subcontractors that demonstrate superior environmental
TEST – THERE IS NO
­performance. And for pick-up and delivery operations, around UNIVERSAL SOLUTION
27,000 bicycles are now deployed for the first and last mile. Page 90

Board members from left to right: Oscar de Bok (Supply Chain), Dr. Tobias Meyer (Post & Parcel Germany), Tim Scharwath (Global Forwarding, Freight), Ken Allen (eCommerce Solutions), John Pearson (Express)

SUSTAINABLE SOLUTIONS
FOR OUR CUSTOMERS
Our customers expect responsible and sustainable business models, and
environmentally friendly logistics solutions.

Respect & Results expresses our understanding of the also part of our business partners’ supply chains. When
values we uphold, such as integrity and equal opportunity. they choose Deutsche Post DHL Group as a preferred
They are based on human rights and are a binding ­service provider, among our various obligations, we must
­benchmark for conduct within the Group. Successfully show that our business complies with certain social and
putting these values into practice in our global network is environmental requirements. The following examples
a key competitive factor. illustrate some of our responses.

Our Code of Conduct anchors our ethical and environ­


mental standards within the company, and our business
partners also commit to compliance with these standards
when they sign a contract with us. Indeed, our company is

14  15
Germany

AUTONOMY THROUGH
SINCE 2015 INTEGRATION
Employment contracts with

11,000
refugees
We also support refugees with our corporate citizenship activities.
Our aim is to prepare them for the requirements of working life
and improve their chances on the labor market. One Syrian refugee
has been working as a delivery agent in Glücksburg, Germany, since

246
refugees in training
­October 2017. He delivers about 100 parcels and innumerable
­letters every day, a job that calls for a sense of responsibility and
commitment. After leaving Syria in early 2015, he had to wait ten
months for an integration course before he could start working.
Since then he and his family have successfully made their home
in Germany.

Rwanda

E-COMMERCE PROMOTES
EQUAL OPPORTUNITY 550,000
employees worldwide of whom

34%
We want to increase the percentage of women employed in our company
at all levels worldwide. We offer practical e-commerce consultant training women
in Rwanda, providing career prospects for women in particular. Our
­training is part of the Rwandan government’s digitalization initiative

22.2%
­designed to prepare the country’s labor force for the digital future. This
program gives us an outstanding opportunity to recruit well-trained­­
­junior specialists and managers and to enhance our reputation as the
women in management positions
­p­referred partner for e-commerce solutions.

Deutsche Post DHL Group became the first German company to receive
the prestigious 2019 Catalyst Award in recognition of exceptional
­commitment to diversity and to increasing the number of women in
­management positions.

16  17
China

WORKING WITH
AUTISTIC CHILDREN 114,000
employee volunteers in 2019;
of whom
Global Forwarding, Freight has been supporting a rehabilita-
tion center for autistic children in China for the past six years.
Only in the last few years has autism been recognized in China
as a congenital contact and developmental disorder. State-run
75,000
got involved in projects
facilities offer support to patients but are unable to meet rising
demand. This makes the help from our donated items and our
employees’ volunteer work that much more important.
39,000
made donations
Through their lessons and diverse group leisure activities, the
children are given the chance for a happy, self-determined life
and can become more familiar with traditional Chinese culture.

Spain

INCLUSION IS TODAY’S
REALITY
In line with our inclusive approach, we offer career
­prospects to people with disabilities all over the world.
In contract logistics, for example, we run an ultramodern
co-packing operation in Spain on behalf of a customer.
During peak periods, we employ up to 270 people with
physical and mental disabilities there, predominantly
in product packaging. For the customer, our clear
PEOPLE WITH DISABILITIES
­commitment to inclusion was one of the main reasons CONTRIBUTE TO SUCCESS
for awarding the contract.

18  19
SUSTAINABILITY
FOR LONG-TERM
SUCCESS
Businesses are increasingly expected to demonstrate Standards will ensure comparability. Our sustainable investment approach.
sustainable conduct and transparency with regard to the Non-financial reporting is, however, still in its infancy We invest continuously in our workforce, infrastructure
associated opportunities and risks. And this is as it should in comparison to financial reporting. The varying and fleets, focusing our efforts on technological
­information requirements of diverse stakeholder groups ­advancement. By modernizing our fleets and buildings,
be. Deutsche Post DHL Group has been reporting on have given rise to a broad range of reporting standards. we reduce emissions and energy consumption. Looking
sustainability since 2003. And as a result, definitive indicators to quantify the ahead, these will be important factors in helping us to
­progress and impact of measures are yet to be ­established. remain an attractive employer and supplier and to be
For external users, such variability in reporting practices ­prepared for the effects of possible regulations such as
Growing external requirements. results in a lack of comparability across the industry. a carbon tax. Deutsche Post DHL Group receives
­consistently positive ratings. As a result, our shares are
The concept of sustainability has come more sharply into Sustainability issues are becoming more tangible, the calls included in a number of sustainability indices.
focus for various reasons in recent years. Indeed, research for comparability more emphatic. Indeed, the pressure is
on the topic is unequivocal: companies with a meaningful currently on at EU level to develop new guidelines. These We are off to a good start. Together with our stakeholders,
sustainability strategy are more successful in the long are developments that we support as a sign of real pro- we will successfully continue to develop our sustainability
term than those without. Sustainability’s increasing gress. Clear, standardized requirements for all companies agenda as we work to drive the development of our
­importance is not least reflected in stricter requirements will ensure transparency and create a level playing field ­company in a sustainable way.
concerning non-financial reporting and a growing industry-wide. This in turn will allow investors, customers
­demand for information on the part of stakeholders. and (potential) employees to more consciously consider
non-financial aspects and make more informed decisions.
We have long been aware of the importance of sustain-
ability with regard to our business operations and have
been reporting on the topic since 2003. As a logistics
company, the impact our business has on the environment
is a key topic. More than a decade ago, we started paving
the way for sustainable logistics by introducing various
climate and environmental protection measures. Since
then, we have been measuring and managing our
­environmental KPIs across the Group through our
­financial systems – just as we do for revenue and EBIT –
in order to effectively track the progress we are making
in improving our carbon efficiency. Furthermore, we
are continuously working towards integrating additional Melanie Kreis
sustainability indicators into our standardized reporting. Board Member
Finance

20  21
22 2019 SUSTAINABILITY REPORT

THE GROUP
24 Business model & products 32 Leadership & management
A FINAL WORD 26 Strategy 35 Economic performance

Our stakeholders have high expectations


29 Stakeholder dialogue
of our company’s approach to
sustainability. Our own standards and
objectives are just as ambitious. After
all, sustainability not only influences the
reputation of Deutsche Post DHL Group,
it can also impact the value of our
brands.

Our future will change, not least in


the course of digitalization. All of
this has informed our conscious
decision to focus our strategy on
sustainability. We are making good
progress with the measures we
have in place, but we also need
solutions that transcend
industries and national borders –
and these kinds of solutions will
call for a collaborative approach.

Dr. Frank Appel


CEO
24 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 25

THE GROUP
Business model & products
Deutsche Post DHL Group is a listed corporation; its Group n Our sites, employees and suppliers also contribute Business model n Global infrastructure: We support secure and reliable
headquarters are in Bonn, Germany. Under its Deutsche Post ­indirectly to regional economic development. The Group is organized into five operating divisions, each trade by facilitating the global flow of mail and goods –
and DHL brands, Deutsche Post DHL Group provides an inter- ­under the control of its own divisional headquarters. Internal even in remote and hard-to-reach areas. The work done
national service portfolio consisting of mail and parcel deliv- We are committed to abiding by global standards for legal Group services, including Corporate Procurement, IT Services, through our disaster management programs builds on a
ery, express delivery, freight transportation, supply chain and ethical business practices, maximizing the value we Insurance & Risk Management and Corporate Real Estate, are longstanding partnership with the United Nations.
management and e-commerce solutions. With approximately ­generate at our local companies, assuming responsibility for bundled under Global Business Services. Group management
550,000 employees, we are one of the world’s largest our employees and minimizing the environmental impact of functions are performed by the Corporate Center, which n Environment: Our green products and logistics solu-
­employers in the transportation and logistics sector. Our our business. This allows us to promote the Group’s ­comprises the CEO, Finance and HR functions. The Corporate tions help our customers and transportation partners to
­economic performance also contributes to society. ­long-term growth and secure jobs worldwide. Incubations board department is driving forward innovative reduce their environmental impact.
products such as our StreetScooter electric vehicle.
n As a catalyst for global trade, we enable companies and For details on our business model and business performance,
individuals to participate in international trade thanks to Products please refer to our Group Management Report.
our world-spanning logistics networks. We offer integrated services and tailored, customer-centric 2019 Annual Report
solutions for transporting mail, goods and information. The
Post & Parcel Germany division provides domestic mail and
parcel services, and is home to our dialogue marketing
­specialists. Our Express division transports urgent docu-
ments and goods from door to door. Global Forwarding,
Freight is an air, ocean and overland freight forwarder that
Deutsche Post DHL Group’s organizational structure brokers transportation services between customers and
freight carriers. Supply Chain’s core business is providing
contract logistics. Our international parcel business and
­e-commerce solutions are grouped in our eCommerce
­Solutions division.

In line with our mission to connect people and improve lives,


­ Corporate Center these products and services also benefit the community,
Chief Executive Officer Finance HR ­particularly in the areas of healthcare, global infrastructure
and the environment.

Divisions
­ n Healthcare: Our global air and ocean freight network,
Post & Parcel Express Global Forwarding, Supply Chain eCommerce road transportation of temperature-sensitive medical
Germany Freight Solutions products and devices, and life science graded ware-
houses offer our customers cold chain logistics services
right around the world. This also includes a competence
Corporate Incubations
center for humanitarian logistics in Dubai, United Arab
Emirates.
Customer Solutions & Innovations

Thanks to our digital 4PL/control tower solution, our


Global Business Services
customers can rest assured that humanitarian deliveries
in the Middle East and Africa in particular will be han-
dled smoothly.
26 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 27

Strategy Sustainability & materiality n Decent Work and Economic Growth: By facilitating n Partnerships for the Goals: Partnerships with or
We aim to continuously improve our performance and to ­global trade, supporting economic growth and creating ­memberships in national and international organizations
Our Group strategy is focused on sustainability. We are com- ­ensure that we meet the expectations of the stakeholder jobs around the world, we help connect people and are of strategic importance to us. As an example, we use
mitted to meeting not only our own operational requirements groups that are relevant to us with regard to social and improve their lives (SDG 8). our membership of the World Economic Forum to help
and the interests of our stakeholders but also to addressing ­environmental issues. Our multistage management process shape debate and action on sustainability. We have
the needs of society and the environment. In the year under supports continuous improvement, identifying early on new n Sustainable Cities and Communities: We provide worked together with United Nations organizations for
review, our Strategy 2025 confirmed our strategic goals: We topics that could become important for our future business ­sustainable logistics solutions and clean pick-up and many years in our Group programs for natural disaster
aim to become the Provider, Employer and Investment of success. In the second stage of our management process, delivery concepts, contributing to improved air quality management (SDG 17).
Choice, while operating in a sustainable way. we work with stakeholder groups to identify and analyze the in urban areas. Our natural disaster management and
­material issues on which our sustainability disclosures are ­refugee aid activities help promote sustainable
Our mission is to connect people and improve lives. Our prod- also based. ­communities (SDG 11).
uct and service portfolio and our near-global presence enable
individuals and companies to take part in global trade, and As a longstanding partner to the United Nations, we support n Climate Action: Our ambitious Mission 2050 climate
hence contribute to economic development. By observing the UN’s Sustainable Development Goals (SDGs). The follow- ­target and green logistics solutions are helping the world
international compliance standards, maximizing the value we ing five SDGs are most closely aligned with our activities: community reach the goals set at the UN Paris Climate
bring to local communities, taking responsibility for our Conference (SDG 13).
­employees and minimizing the environmental impact of our n Quality Education: By offering our employees extensive
business activities, we promote the Group’s long-term growth training and development opportunities, we encourage
and secure jobs worldwide. 2019 Annual Report life-long learning and personal/professional develop-
ment. We collaborate with partner organizations world-
wide to improve employability for young people (SDG 4).

Management process for our sustainability agenda


Goals of our Group Strategy 2025

Our Purpose
Connecting people, improving lives Gain insights Review the agenda
through stakeholder on a regular basis1
dialogue

Our Values
Respect & Results
Management process for our sustainability agenda
Our Mission
Excellence. Simply delivered. Along the
three bottom lines in a sustainable way Engage in dialogue Communicate Review and record
with stakeholders progress reports progress
internally and externally

1) Our material issues are reviewed with relevant stakeholder groups and evaluated as part of a materiality analysis every two years.
28 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 29

Material issues: Measures & targets Stakeholder dialogue


In the year under review, we used qualitative interviews with our key stakeholders to review the results of the 2017 materiality
analysis that was performed in accordance with the GRI Standards. The nine material issues were confirmed. The following Regular, open and constructive dialogue with our stakehold-
­graphic provides an overview of the challenges facing our company with regard to the material issues, and the goals we are ers is part of our strategic management process. In these
­pursuing with them. ­discussions, we work together to develop solutions to future
social and b­ usiness challenges that we consider to be material
for our c­ ompany. Customer Solutions & Innovations, for ex-
Environmental & social standards ample, works together with the divisions and relevant stake-
Employee development Energy efficiency & climate change
in the value chain holder groups (e.g., customers, suppliers, scientific specialists
and researchers) to launch a stream of innovations and tech-
Target: Embed standards in the value chain Target: Make our employees the best in the Target: Improve carbon efficiency
nical solutions as the starting point for market-
business
ready concepts. Our Innovation Centers in
Define principles for supplier management and Carbon Efficiency Index (CEX) Page 84
­Europe (Troisdorf, Germany), Asia (Singapore)
ensure that there are standardized processes for Participant rate in the Group-wide Certified
and the USA (Chicago) serve as a platform for
supplier selection and drafting contracts Page 50 initiative Page 67 50%
these dialogues.
80% 33% 35% 36%
69%
59%
Our dialogue formats are based on our Stakeholder
­Engagement Guidelines, which comply with the international
Anti-corruption & bribery
2018 2019 2020 2018 2019 2020 2025 AA1000 Stakeholder Engagement Standard.

Target: Prevent violations of legal and internal


Group requirements Employee engagement Air pollution

Deutsche Post DHL Group stakeholders


Prevent corruption, bribery and anti-competitive Target: Achieve a consistent level of employee Target: Reduce local air pollutants emitted during
practices using the compliance management engagement throughout the Group pick-up and delivery
system Page 40
Marketplace Workplace
Active Leadership approval rating in the Employee Increase percentage of zero-emission solutions
Opinion Survey; to be replaced as of 2020 by Page 93
Employee Engagement Page 69 70%
Business associations
Data protection & security
76% 78% 78% 80%
32% 33% Suppliers & subcontractors

Target: Ensure proper handling of personal data Potential employees


Competitors
Employee representatives
Employees
2018 2019 2025 Customers
Prevent violations using the management system 2018 2019 2020 2025 Partnering
and training courses Page 49 organizations Shareholders
Rating agencies
Policymakers &
government regulators Investors
Occupational health & safety NGOs
Media

Scientific community
Respect for human rights Target: Avoid accidents in the workplace

Target: Prevent human rights violations Accident rate per 200,000 working hours
Page 71 Environment/society Financial community

Use ER Reviews to develop a common, Group-wide 4.3 4.2 4.0


understanding of respect for human rights 3.1 Critical for our ability to operate.
Other stakeholders.
Page 62

2018 2019 2020 2025


30 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 31

Focus areas during the year under review n World Economic Forum: Dialogue with decision-makers We are also in regular contact with rating agencies and Our supplier platform ratings remain excellent. EcoVadis
Our involvement in national and international forums is and leading logistics experts focusing on shaping soci- other institutions that independently evaluate our affirmed our Gold rating, meaning that we are among
­central to our activities in this area, as they allow us to actively ety in times of technological change, climate change, ­sustainability performance using their own standards. the top one percent of the rated suppliers. The Respon-
participate in shaping the dialogue on overarching topics and financial crisis and economic inequality. A large proportion of our share capital is held by signa­ sible Business Alliance assigned us to its “Low Risk
to discuss technical progress. We also shared information and tories of the UN Principles for Responsible Investment. ­Category.”
opinions with partner organizations, primarily the United n Dialogue with customers: Our key account support These investors incorporate the results of non-­financial
­Nations Global Compact and the international Partnering (CSI) team regularly organizes sector-specific customer KPIs into their company ratings; in addition, positive n Internal dialogue: Our focus lay on sharing information
Against Corruption Initiative. We regularly take part in discus- conferences throughout the regions in which we agency ratings can play a role. For our company, ratings about the progress of Strategy 2025 with executives in
sions with other companies in Germany as part of econsense ­operate. Our three Innovation Centers are the venue ­ and inclusion in sustainability indices are primarily of the divisions, and on the changes being caused by
­working groups and steering committees, jointly deliberating for regular consultations with customers as we consider strategic significance. ­growing workflow digitalization with our employees. ­
topics such as draft legislation at the EU level and its potential technological solutions and how they could best be For the results of our dialogue with employee represent-
impact. In addition, we get involved with selected issues and used. We initiate discussions using our Logistics Trend We were awarded good ratings during the reporting atives and collective bargaining partners, please refer to
work to develop common solutions and Radar, and keep our customers informed of new period, as previously. Our ratings in the Bloomberg the Employees chapter. Page 62
­positions on specific topics. Please refer to ­ ­developments via our Delivered., customer magazine. ­Gender ­Equality Index and the Refinitiv Global Diversity
our corporate website for a full list of our & ­Inclusion Index were affirmed.
­partnerships. n Dialogue with the capital markets: Our Investor
­Relations team is in constant contact with shareholders
and investors in numerous conference calls, bilateral
discussions, roadshows and conferences.

Selected stakeholder dialogues in 2019 Investor dialogue events and external ratings in 2019

Trade conferences in Germany, Japan, Dialogue on packaging and the Annual General Meeting

INVESTORS
CUSTOMERS

ENVIRONMENT

RATING AGENCIES
Nov. May Confirmed listing in FTSE
H1 Sweden, Switzerland, USA (Long ­environment The actions of the members of the
6 13 Index series since 2002
2019
Beach, Miami, Philadelphia, San Diego) 2019 Discussion on innovative and sustain- 2019 Board of Management were formally
able packaging solutions with experts, approved, the appropriation of the net ISS Oekom awarded us Prime
Conferences in Colombia, Germany, customers, NGO retained profit was ­s tatus and a C+ rating
H2 India, Kenya, Morocco, Netherlands, representatives, resolved and new
2019
Singapore, Turkey, USA (Chicago, employees, producers Supervisory Board
Houston, Philadelphia) and suppliers members were elected. MSCI gave us an AA rating for
Page 32 engagement

Group Pension Day


Sept. Listed in the DJSI World and
24 Dialogue with the financial community
Informational events on business DJSI Europe indices and thus
EMPLOYEES

2019 about a stronger focus on ESG criteria


H1 developments and organizational among the top 10% of rated
2019 Page 36
changes; dialogue with employee companies
representatives Page 62 Capital Markets Day: Board of
Oct.
1 ­Management presentation of Strategy Sustainalytics rates us as a
Dialogue with international unions 2019 2025 and the new financial Leader
H2 Page 62 targets through 2022;
2019
discussion of focus Our environmental perfor-
areas in the divisions mance received a “B” rating
in workshops
32 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 33

Leadership & management Shareholder structure as at Dec. 31, 2019 rules of procedure to be presented to the Supervisory Board for approval, as well as tasks which the Board of Management is
not permitted to delegate to individual members. In making their decisions, Board of Management members may not act in their
Total: 1,236,506,759 No-par value shares1
As a listed German public limited company, Deutsche Post AG own personal interest or exploit the company’s business opportunities for their own benefit. Board of Management members are
has a two-tier board structure. The Board of Management is 20.5% KfW Bankengruppe ­required to disclose any conflicts of interest to the Supervisory Board without delay. The remuneration paid to Board of
responsible for managing the company. It is appointed, over- ­Management members is disclosed in the Group Management Report. 2019 Annual Report
seen and advised by the Supervisory Board. The Board of
Management and the Supervisory Board are in regular dia- Members of the Board of Management
logue regarding the company’s strategic measures, planning,
business development, risk exposure and risk management,
79.5% Free float
and compliance. The Report of the Supervisory Board pro-
vides information on the main topics discussed, and decisions
made, by the Supervisory Board during the year under
­review.

1) Registered shares with a notional interest in the share capital of €1.


As at December 31, 2019, the company’s share capital
­totaled €1,236.5 million and was composed of the same
number of no-par value registered shares. Each share entitles
The Board of Management responsibilities and structure
the holder to one vote at the Annual General
The Board of Management, with the consent of the
Meeting. No individual shareholder or group of
­Super­visory Board, has drawn up rules of procedure for itself
shareholders is entitled to special rights, par-
­covering cooperation within the Board of Management,
ticularly rights granting powers of control.
among other things. Each member of the Board of
2019 Annual Report
­Management manages his or her own department
­independently and regularly informs the full Board about ­
key ­developments. The full Board of Management decides on
matters of particular significance for the company or the
Group. These include all decisions which are required by the
Dual management structure
Dr. Tobias Meyer Melanie Kreis Dr. Thomas Ogilvie Ken Allen
Post & Parcel Germany Finance HR, Labor Director eCommerce Solutions
Born 1975 Born 1971 Corporate Incubations Born 1955
Member since Apr. 2019 Member since Oct. 2014 Born 1976 Member since Feb. 2009
Appointed until Mar. 2022 Appointed until June 2022 Member since Sept. 2017 Appointed until July 2022
Board of Management Appointed until Aug. 2025
Dr. Frank Appel
Responsible for managing the company CEO Tim Scharwath John Pearson
Oscar de Bok
Supply Chain Global Business Services  Global Forwarding, Freight Express
Born 1967 Born 1961 Born 1965 Born 1963
Member since Oct. 2019 Member since Nov. 2002 Member since June 2017 Member since Jan. 2019
Supervisory Board (20 members) Appointed until Sept. 2022 Appointed until Oct. 2022 Appointed until May 2025 Appointed until Dec. 2021
Advises and oversees the Board of Management, and appoints its members
6 committees
The Supervisory Board responsibilities and structure ­ uper­visory Board meets at least twice every calendar half
S
Elects 10 representatives Elect 10 representatives The Supervisory Board advises and oversees the Board of year. Extra­ordinary meetings are held whenever particular
­Management and appoints its members. The Supervisory developments or measures need to be discussed or resolved
Annual General Meeting Employees
Board’s rules of procedure set out the principles for its basic at short notice. In addition, the Supervisory Board has formed
internal organization, a catalogue of Board of Management six committees that are charged primarily with preparing
transactions requiring its approval, and the rules governing resolutions for the ­Supervisory Board’s plenary meetings.
the work of the Supervisory Board committees. The The Supervisory Board has delegated ultimate decision-­
making on specific issues to the committees.
34 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 35

The Supervisory Board has 20 members: 10 shareholder We manage these issues and create maximum transparency board department and was succeeded as head of the Conservative tax strategy
representatives who are elected by the Annual General with the help of clear governance structures, management Express board department by John Pearson. The taxes and other levies that we pay to federal, state and
Meeting and 10 employee representatives who are elected by systems, KPIs and targets. Relevant issues are explored or local authorities in many different countries help maintain
employees in accordance with the provisions of the German identified in the working groups, and decision papers are pre- Dr. Tobias Meyer has been head of the Post & Parcel and expand the infrastructure there. Total income tax pay-
Codetermination Act. The Chairman of the Supervisory Board pared for submission to the higher-level bodies concerned. ­Germany board department, which had previously been ments in the year under review were €843 million.
is Dr. Nikolaus von Bomhard. All members of the Supervisory managed on an interim basis by CEO Dr. Frank Appel,
Board are independent as defined by the German Corporate Changes in 2019 since April 1, 2019. In October 2019, Oscar de Bok This responsibility explains why we adopt a conservative tax
Governance Code. A total of 35% of the Supervisory Board ­succeeded John Gilbert as the head of the Supply Chain strategy. As a global enterprise, we have subsidiaries in so-
are women. There were changes in the Board of Management, and board department. called “low-tax” countries, among other places, but these are
­Supervisory Board elections were held during the year under not tax optimization vehicles. Rather, they are a necessary
Bodies involved in sustainable management review. n Supervisory Board: One shareholder representative part of maintaining our presence worldwide and support our
The Corporate Center and Global Business Services are re- was elected in an individual vote at the Annual General business activity.
sponsible for defining sustainability standards and for an- n Board of Management: Effective January 1, 2019, the Meeting: Dr. Heinrich Hiesinger. Shareholder represent-
choring them in Group policies. The divisions are responsible Post - eCommerce - Parcel division was reorganized into ative Prof. Dr. Henning Kagermann stepped down from Our global team of tax experts ensures that possible taxation
for aligning customer requirements with our strategic and two separate board departments: Post & Parcel Germany the Supervisory Board as of the end of the Annual risks are identified, and hence mitigated, at an early stage,
­ethical principles, and for anchoring the Supplier Code of and eCommerce Solutions. On the same date, Ken Allen ­General Meeting in May 2019. All information about the and that national and international tax compliance require-
Conduct in their contractual relationships. assumed responsibility for the eCommerce Solutions Annual General Meeting, including the CVs of the ments are met, thus ensuring due and proper taxation
­Supervisory Board members elected and the voting throughout the Group.
results, can be found on the Group website. The
Company structures involved in sustainable management in 2019 (excerpt) ­Corporate Governance Report and the Remuneration Wages and salaries
Report contain details of the activities of the Staff costs include wages, salaries and compensation, retire-
­Supervisory Board, the additional mandates held by the ment benefits, and all other benefits paid to Group employees
members and their remuneration. 2019 Annual Report for their work during the financial year, plus social charges,
including mandatory statutory contributions and particularly
Board of Management social security contributions. Staff costs amounted to
Chief Executive Officer Finance HR
Economic performance €21,610 million (2018: €20,825 million), or 34.1% of Group
Communications, Sustainability & Brand central function revenue, in the year under review.
coordinates the sustainability agenda
The DHL brand was valued at US$16.6 billion by the market
research institute Kantar Millward Brown during the year In 2019, the total remuneration paid to active Board of
Sustainability Operations Board GoGreen Sponsors Finance Board Human Resources
Council (RBP Council) Board Board (HR Board) under review. In its annual study, Interbrand valued the DHL ­Management members amounted to €13.6 million (2018:
brand at about US$6 billion. For the Deutsche Post brand, the €11.4 million); total remuneration for the Supervisory Board
Steers the sustain­- Monitors operating Steers environmental Steers matters including Steers HR
consulting company Brand Finance determined a value of was €2.6 million (2018: €2.7 million). These figures include
a­bility agenda performance, the issues in the Group risk management, issues in the Group
­accident rate and other ­Internal Audit, security; €4.5 billion in 2019. share-based remuneration. Remuneration paid to the Board
indicators observes trends in
of Management and the Supervisory Board represents 0.07%
­internal management
indicators In the year under review, we generated revenue of €63,341 of staff costs. Please ­refer to the ­Remuneration Report for
Chair: Chair: Chair: Chair: Chair: million and EBIT of €4,128 million. Following the resolution further details on the Board of Management and Supervisory
Monika Schaller Dr. Frank Appel Dr. Frank Appel Melanie Kreis Dr. Thomas Ogilvie by the Annual General Meeting on April 27, 2019, we distrib- Board remuneration. ­ 2019 Annual Report
uted €1,419 million in dividends for financial year 2018 to
Various special committees and working groups prepare decisions for the above bodies. our shareholders. Information on the dividend proposal for Defined benefit and defined contribution pension plans
financial year 2019 is provided in the Group Management We offer defined benefit and/or defined contribution pension
Sustainability Advisory Council Report. 2019 Annual Report plans from which about 70% of Group employees benefit.
External advisors from the scientific community, business and politics ; Chair: Jill Meiburg
Our largest pension plans operate in Germany, the United­
Kingdom, the United States, the Netherlands and S­ witzerland.
In the year under review, pension plans ­accounted for €688
million (2018: €846 million) of staff costs.
36 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 37

When investing pension assets, we take not only an economic Using innovative technologies Social, economic and technological trends Our goal: Customer satisfaction
but also a sustainable­­approach that is primarily based on the New business models are emerging rapidly in all sectors of We identify and analyze important social, economic and
integration of ESG criteria. When selecting asset managers, the economy, particularly in connection with the digital ­technological trends so as to maintain our leading position ­in Becoming our customers’ Provider of Choice is one of our
we give preference to those who consider ESG ­aspects in ­transformation process. Innovations are the driving force today’s constantly changing business three strategic goals. We regularly conduct customer
their investment ­processes and those providers who have within our industry and an important way of enhancing our ­environment. We published trend reports on ­satisfaction surveys, quantify satisfaction levels using key
signed up to the UN Principles for Responsible ­Investment competitiveness and future success while also adding value the following areas in the year under review, performance indicators (KPIs) and pursue clearly defined
(PRI). We also determine the ESG score and ­carbon footprint for our customers, whom we also include in our development which are available for download from our targets.
for our pension portfolio in ­Germany. In ­February 2020, we processes. Group ­website.
won the Special Prize at the German ESG Pensions Award for Continuously improving our performance
our i­ nvestment strategy. More ­detailed information on our The Corporate Incubations board department is the home n Alternative fuels: Over the next 10 to 20 years, sustain- Our FIRST CHOICE methodology – based on Six Sigma, Lean
­pension plans is available in the notes to the consolidated for projects that are developing new business models. able fuels will play a critical role in efforts to reduce the and change management techniques – is an effective way of
financial statements in the 2019 Annual Report. Our ­Start-up Lab lets employees contribute their own impact of transport on the climate. Our white paper on increasing customer satisfaction and loyalty. We use FIRST
2019 Annual Report ­suggestions for new business ideas. One successful this topic summarizes the current discussion surround- CHOICE to systematically and continuously improve our own
example is the TRAILAR project for equipping trucks ing sustainable fuels and identifies the types of fuels and processes, services and products, and also work together
Sustainable technologies and trailers with solar mats. Page 67 technologies that are needed to create climate-neutral with customers to develop enhanced solutions.
logistics.
We invest continually in renewing and modernizing our hubs, Real-world use cases FIRST CHOICE – our achievements since 2006
networks, and road and air fleets. One focus of our invest- We are using existing technologies to continue the automa-
ment policy is on technological developments. For example, tion of our logistics processes, make supply chains more sta-
we have further extended our pioneering role in the develop- ble and secure, and improve carbon efficiency. Our employees
ment of electric delivery vehicles. Investment expenditures in benefit from this as well, as these innovations also ease their
acquired property, plant and equipment and intangible assets workload. FIRST CHOICE
amounted to €3.6 million in the year under review. Our
­Strategy 2025 has earmarked an investment volume of €2 n We are already using collaborative robots
billion for digitalization. A detailed report on the investments for picking and for artificial intelligence >38,000 managers and employees trained
made in the financial year can be found in our Group (AI) applications, and are conducting field
­Management Report. 2019 Annual Report tests with self-driving vehicles.
>31,000 improvement initiatives
n We use AI to publish logistics data in our quarterly DHL implemented
Global Trade Barometer as an aid to investment and
supply chain decision-making. AI is also incorporated in >180,000 employees involved in
our own security concepts. n Smart packaging: What are the trends driving the need performance dialogues every day
to urgently rethink packaging, and how will individual
n Our Resilience360 product uses big data, predic- industries and their packaging needs evolve? We offer >170 customer satisfaction surveys
tive analytics and algorithms to monitor supply chains. insights on how packaging innovations will facilitate commissioned and analyzed1
Potential incidents are identified and managed in near greener and more efficient logistics operations across all
real time. sectors.

n Globalization holding up under pressure: We updated 1) Not included in the review.


the DHL Global Connectedness Index together with the
NYU Stern School of Business. This index provides an Our performance dialogues not only focus attention on our
overview of recent developments in international flows KPIs and defined targets, but also help employees become
of capital, trade, information and people. more aware of how they can improve processes and quality
standards in their immediate working environments. Other
tools, including simple problem-solving techniques, are then
used to help with implementation. In addition, a variety of
38 2019 SUSTAINABILITY REPORT

communications channels encourage information sharing


among employees and motivate them to use the available
vice quality at our facilities are reviewed regularly
in cooperation with the authorities. Approximately 360
RESILIENCE & INTEGRITY
methods and tools to drive potential improvements. This of our sites are TAPA-certified and we have worldwide
creates a common appreciation for the goals and benefits of ISO 9001:2015 certification.
our culture of continuous improvement, and so lays the 40 Preventing corruption & bribery 46 Compliance
­foundation for effective, customer-centric innovation Compliance management system
­management. We use systematic surveys to measure Export controls & foreign trade
­satisfaction levels among our customers and also gain 41 Codes of conduct Data protection & security
­valuable information from analyzing customer complaints.

High levels of service 43 Risk detection & 50 Working with suppliers


We take a systematic approach to improving the quality of crisis management
our services across all divisions. The way we measure
­customer satisfaction is based in part on the Net Promoter
Approach and is also tailored to the business models and
customer profiles involved.

n Post & Parcel Germany: Approximately 92% of letters ­


in Germany reached their destinations the next working
day (D+1) in the year under review. Parcels reached
their destinations the next working day around 83% of n Global Forwarding, Freight: In the Global Forwarding
the time. Our 26,000 or so sales outlets were open for business unit, we use customer feedback to systemati-
business an average of 55 hours per week. cally improve our offering. To that end, we completed
about 40 projects and held 1,700 workshops during the
year under review. In the Freight business unit, we
expanded our customer satisfaction survey to cover ­
30 countries and implemented more than 200 initiatives.

n Supply Chain: We make sure we meet or exceed


­customer expectations using standardized processes
and solutions, and with the support of quality experts at
all sites. We follow up immediately when customers are
­dissatisfied – something that has a huge impact on
­satisfaction and loyalty.

n eCommerce Solutions: We made significant improve-


ments in delivery quality in most countries in 2019.
We achieved delivery quality of over 97% in the United
­States and we were able to increase it by about 10%
n Express: We aspire to continually improve our service in India despite challenging geography and at times
and our quality. We use a variety of programs to monitor ­difficult infrastructure. Overall, our delivery quality in
our customers’ ever-changing requirements. In addition, the Asia Pacific region was 96% to 98% in 2019.
our managers actively reach out to dissatisfied customers.
Our quality control centers track shipments across the
globe and dynamically adjust our processes as required.
Operational safety, compliance with standards and ser-
40 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 41

RESILIENCE & INTEGRITY Codes of conduct & other policies


Preventing corruption & bribery Values such as integrity, transparency, equal opportunities r­ egularly reviewed to ensure they remain up to date and
and responsibility, which we group together under the terms ­complete, and their content is modified or supplemented as
We provide our services in accordance with the law and our Measures & KPIs Respect & Results, are a binding benchmark for conduct necessary. The current v­ ersions, which we have
own values. Our material issues (GRI) also include the informa- Violations of anti-corruption and bribery requirements are within the Group. Respect for human rights as defined by the translated into more than 20 languages, have
tion required by law on anti-corruption and bribery matters, recorded by Compliance. principles of the Universal Declaration of Human Rights and been in effect since 2016. We also offer a training
and the information on respect for human rights. the UN Global Compact is at the heart of our actions. This module for suppliers on the Group website.
n Anti-corruption & bribery: The Global Compliance sends a signal to our stakeholders and the general public:
Policies (also GRI management approach) Office (GCO) develops standards for the management Deutsche Post DHL Group is a trustworthy partner that suc-
Our focus is on preventing potential violations of legal or system and provides support for the corresponding cessfully combines service with a sense of responsibility and HUMAN RIGHTS POLICY =
­internal Group requirements. We have implemented effective
measures to prevent corruption and bribery throughout the
activities in the divisions. All relevant activities and
reporting content prepared by the compliance officers in
environmental awareness.
CODE OF CONDUCT +
Group in the form of our compliance management system. the divisions and the GCO are included in the quarterly Our values are anchored in our Code of Conduct and specified SUPPLIER CODE OF CONDUCT
The Chief Compliance Officer, who reports directly to the report to the full Board of Management and the annual in greater detail in our Supplier Code of Conduct. Taken
Chief Financial Officer, is responsible for the system’s design. report to the Supervisory Board’s Finance and Audit ­together, these two codes constitute our human rights policy,
­Corporate Procurement defines the principles for supplier Committee. and we have therefore not formulated a separate policy in this In addition to the two codes of conduct, there are other
management and ensures that standardized processes area to date. The Board Member for Human Resources is Group-wide or regional policies and guidelines that are based
for supplier selection and drafting contracts exist. The n Respect for human rights: Corporate Procurement ­responsible for ensuring compliance with the human rights on or derived from them. In the context of this chapter,
Chief Procurement Officer reports directly to the CEO. defines the standards for procurement processes, is policy in connection with employee relations. The standards ­examples include the Anti-Corruption Policy, the Business
responsible for designing the Corporate Procurement outlined in the Supplier Code of Conduct are formulated by Ethics Policy, the Corporate Procurement Policy, the Data
n Anti-corruption & bribery: We observe all applicable Policy and determines the selection processes for Corporate Procurement and are included as a mandatory Privacy Policy and the ­Corporate Security Policy.
international anti-corruption standards and laws, and are ­suppliers. In line with our Corporate Procurement Policy, ­annex in Group contracts. The two codes of conduct are
a member of the Partnering Against Corruption Initiative. preference is given to suppliers with high environmental
Our Code of Conduct and our Anti-Corruption Policy help and social standards. Supplier selection is based on a
Deutsche Post DHL Group policies
employees identify situations in which the integrity of the standardized, multistep evaluation process. We also
company could be called into question in respect of rel- continually train Procurement staff so as to raise their
evant third parties. Our employees can report potential awareness of the need to identify additional potential
violations around the clock using a compliance hotline risks at an early stage.
and a special web application. External whistleblowers
Code of Conduct Other Group policies (excerpt)
can use a form on the Group’s website. Information on Results & objectives
Supplier Code of Conduct
relevant violations is included in the regular compliance Our compliance training materials were revised in 2019 and
(together these constitute our human rights policy) • Anti-Corruption and Business Ethics Policy1
reporting to the Board of Management and to the rolled out throughout the Group as planned, and in accor­
• Environmental and Energy Policy
­Supervisory Board’s Finance and Audit Committee. dance with the guidelines amended in the preceding year. • Guided by the principles of the Universal
• Investment Policy1
Training courses for additional target groups were also Declaration of Human Rights and the UN
• Corporate Procurement Policy1
n Respect for human rights: Respect for human rights is ­developed. We used our Group-wide campaign marking Global Compact
• Data Privacy Policy
an explicit requirement of our Supplier Code of Conduct, ­International Anti-Corruption Day to inform employees and
• Observe the principles of the International • Corporate Security Policy1
which is a binding component of the Group’s contracts managers about anti-corruption measures and how they can
Labour Organization’s Declaration on • Occupational Health & Safety Policy Statement
with all suppliers and service providers. By signing up to contribute to these. In addition, regular audits by Corporate
­Fundamental Principles and Rights at Work, • Competition Compliance Policy1
it, our business partners undertake to comply with our Internal Audit were performed that focused closely on
which was adopted in 1998, and the OECD • Sponsorship Guideline1
ethical principles and are encouraged to implement ­compliance with the Supplier Code of Conduct in
Guidelines for Multinational Enterprises
them in their own supply chains. ­procurement processes.

Information on additional activities beyond the mandatory disclosures required by


the German Commercial Code (HGB) can be found in the subsequent pages of this
chapter.

1) Not available to the public.


42 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 43

Specific requirements set out in the Supplier Code of n Diversity: Measures must be taken to encourage inclu- Donations & gifts Risk detection & crisis
Conduct
Whereas the principles in the Code of Conduct for our
sion in the workplace. We do not discriminate or tolerate
discrimination based on gender, race, religion, age, We build trust by dealing openly and transparently with
management
­employees are largely self-explanatory, we have set out our ­disability, sexual orientation or identity, national origin ­public authorities. We maintain correct and lawful relation-
requirements in the Supplier Code of Conduct in greater d­ etail. or any other characteristic protected under law. ships with all governmental and supervisory authorities, and One focus of our risk detection activities is on our material
Our ethical and environmental standards are presented operate in a straightforward, transparent manner and in issues. Our stakeholders agree that compliance, data protec-
­clearly and unambiguously, and we encourage our suppliers n Occupational safety: Compliance with the applicable ­accordance with applicable laws and regulations at all times. tion and data security, and standards in the value chain are
to apply them to their own supply chains. Extract from the occupational health and safety regulations, and responsi- Our Group-wide Anti-Corruption and Business Ethics Policy critical to our business success. Violations of our policies in
Supplier Code of Conduct: bility for a safe and healthy work environment, must be sets out the rules for dealing with donations and gifts to po- these areas could seriously harm the reputation of our
ensured. litical parties and state institutions. This policy therefore­ ­company.
n Child labor: No employment of children below the legal ­applies for all regions and countries in which Deutsche Post
minimum working age. In countries where no legal n Business continuity: Preparations for business DHL Group operates. Our employees are not authorized to Evaluating the financial impact of opportunities and
­provisions exist, the minimum hiring age is 15. ­disruptions of all kinds must have been made. make donations on the Group’s behalf to political parties or to risks
­Contigency plans must exist to protect both employees organizations affiliated with them, to government authorities, The expected financial impact of potential events, develop-
n Forced labor: No forced, bonded or involuntary labor. and the environment as far as possible from the effects or to other public institutions. This policy applies along with ments and trends is included in our business planning.
Employees must not be required to pay fees or make pay- of any disasters occurring in the vicinity of the supplier’s relevant regional laws and regulations to gifts and entertain- ­Opportunities and risks are defined as potential deviations
ments of any kind in return for employment. Punishments operations. ment from representatives of national and municipal govern- from projected earnings. In addition, we use our opportunity
and physical and mental coercion are not permitted. ments. and risk management system to capture possible effects on
n Bribery: Suppliers must comply with applicable interna- our reputation and monitor the development of issues from
n Compensation and working hours: National laws and tional anti-corruption standards as set out in the United Creating transparency the point of view of sustainability, which includes factors such
binding industry standards on working hours, overtime Nations Global Compact and in local anti-corruption and Wherever a transparency register exists, for example in the as litigation, HR matters and environmental aspects.
and compensation apply. Employees must be paid bribery laws. EU, we report voluntarily on the type, scope and financing of
promptly and provided with clear and unambiguous the activities we pursue to support our business interests. We Each quarter, management estimates the impact of future
information about the basis for payment. n Environment: Compliance with all applicable environ- have been registered in the scenarios, evaluates the opportunities and risks for individual
mental laws, regulations and standards must be EU’s transparency register divisions and departments, and presents both planned mea­
n Freedom of association and collective bargaining: ensured, and an effective system to identify and since 2011. We also publicly sures and those already implemented. Data is requested and
Employees are free to decide whether to join a union or ­eliminate potential hazards to the environment must announce our spending in the approvals are given via the company’s hierarchy to ensure
employee representative body, and if so, which one. The be in operation. Climate protection must be afforded United States. that different managerial levels are involved in the process.
right to collective bargaining in accordance with applica- ­sufficient importance in internal operations, for example Opportunities and risks can also be reported at any time on
ble laws is to be respected. by setting and achieving climate protection goals. However, this does not prevent our employees from exercis- an ad hoc basis.
ing their rights within applicable law, such as organizing and
running political action committees (PACs) in the United The early identification and assessment of opportunities and
States. This term is used in the United States to designate risks follows uniform Group-wide reporting standards. We
organizations established by interest groups, businesses or are constantly updating and improving the IT application
private individuals for the purpose of collecting funds to used for this purpose. Opportunities and risks relevant to the
­support or oppose candidates for political office. PACs are year under review are reported by category in the Group
Dealing with violations
subject to legal regulations that, among other things, ­Management Report. 2019 Annual Report
Any suspected violations of legal and internal rules – Compliance hotline ­stipulate caps on donations to individual candidates and
­including, for example, the human rights policy i.e., the
­political parties.
codes of conduct – can always be reported by employ-
Web application and telephone hotline
ees and external staff using the compliance hotline.
Compliance violations can be reported by name or
Available 24 hours a day worldwide
­anonymously, where this is permitted by local law.
Third parties can report their suspicions via the Group
>30 languages
website.
44 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 45

Internal Audit Every year, Corporate Internal Audit develops a risk-based Supply chain resilience n Our team of security analysts at the Global Security
audit plan covering all divisions and functions, building on its ­Situation Center (GSSC) uses defined indicators to
Corporate Internal Audit takes a systematic and targeted own risk analyses to do so. The audit teams discuss the audit As a global logistics company, we too are affected by a large ­identify and assess strategically relevant risks and
­approach when evaluating the effectiveness of our risk findings and agree on measures for improvement with the number of developments that impact our business processes trends. Changes in the operating situation are tracked in
­management system, control mechanisms, and management audited organizational units and their management. The and the resilience of our supply chains, and that may also near real time. Security reports and trend reports are
and monitoring processes, contributing to their improvement. Board of Management is regularly informed of the findings, affect our reputation or our employees and their families. As regularly presented to management and discussed by
In this way, the department supports the Group in achieving while the Supervisory Board is provided with a summary global trade grows, so does the risk that our globally net- the Board of Management.
its internal objectives. It does this by performing independent once a year. worked supply chains become targets of criminal activity,
regular and ad hoc audits at all Group companies and at such as cyberattacks on our extensive IT networks. Corporate security bodies
­corporate headquarters with the authority of the Board of Progress and results during the year under review
Management. During the year under review, 241 regular audits and about We have made extensive preparations for these challenges,
90 follow-up audits were conducted on site, including audits taking a variety of approaches to safeguard our business
The audit teams examine local processes and assess whether related to compliance issues or to compliance with the ­operations even in a crisis. We use our Group-wide security
these are suitable for reaching defined objectives and values. ­Supplier Code of Conduct in procurement processes. In management system, which is certified according to Operations Board
Where weaknesses are revealed, the teams specify remedial ­addition to verifying compliance with the codes of conduct, ISO 28000, to protect our employees, the goods entrusted Page 71

measures and systematically track their implementation. the audits also check whether the agreed measures have to us by our customers, and our own tangible and intangible
been implemented as required. We also examined the ­assets.
­processes used in the Employee Opinion Survey.
Security Steering Committee
“WE’RE WELL-PREPARED. WE’RE
READY TO TAKE ACTION IN A CRISIS.”
Counter-crime Global Security
Frank Ewald Working Group Situation Center
Head of Corporate Security and Crisis Management

Internal audit planning and execution


Organization
n The Internal Security Steering Committee coordinates
and manages all strategic security activities and initia-
tives and reports to the Operations Board on current Progress and results during the year under review
Strategic Develop audit plan Perform audit security-related developments and activities. Our security experts supported Internal Audit in its audits of
risk analysis
divisional security management systems. We have also
n The specialists in the Counter-crime Working Group ­continued our dialogue with security authorities, and are
analyze current crime phenomena affecting our supply actively involved in national and international security
chains, implement crime-prevention measures and bodies and institutions. Our expertise not only allows us to
Internal audit investigate security-related incidents. contribute to security policy solutions but also to establish
Deutsche Post DHL Group as a relevant security partner.
Beyond these issues, we focused primarily on the use of
AI and of digitalization, automation and robotics.
Verify Inform Define measures ­Additionally, we held cross-functional workshops in which
implementation management crisis situations including cybercrises and pandemics were
of measures
simulated.
46 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 47

Protecting IT systems Compliance Organization and reporting ­ irection and future development. The main focus is on topics
d
The Chief Compliance Officer is responsible for the design such as bribery and corruption, antitrust and competition law,
Our systematic IT management protects the Group’s IT As a global logistics provider, we operate in a wide range of of the compliance management system. He is assisted in and fraud and embezzlement. Insights gained from
­systems from unauthorized access or manipulation and countries with very different political systems, laws and cul- this task by the Global Compliance Office, which establishes ­compliance audits and reported violations are also used to
­ensures uninterrupted availability and secure, reliable tural values. Acting in an ethically and legally irreproachable Group-wide standards for compliance management and continually improve and enhance the system.
­operations. way in our dealings with business partners, shareholders and supports corresponding activities in the divisions. Each divi-
the public is a key factor in our company’s reputation and the sion has a compliance officer, who can draw on additional Reporting suspicious activity
Our guidelines and procedures for safeguarding our IT basis for Deutsche Post DHL Group’s lasting success. Ensur- local resources and who reports regularly to the divisional We want our employees to be alert to potential compliance
­systems are based on the international standard in this area, ing legally compliant conduct in our business activities and board of management in question. All activities by, and violations and to report any suspicion of them to their man-
ISO 27002. The three central IT locations are certified to this when dealing with our employees is an essential task of all of ­reporting content from, the compliance officers in the divi- agers or via the compliance hotline. A special web application
standard. In addition, four central functions − Group Risk the Group’s management bodies. In this section, we also sions and from the Global Compliance Office are included in and the hotline, which is available in roughly 150 countries
Management, IT Audit, Data Protection and Corporate ­report on the material issues of preventing corruption and the quarterly report to the Board of Management and the and in 30 different languages, are available 24/7 for this
­Security − monitor and assess IT risk on an ongoing basis. bribery, and data protection and data security. annual report to the Supervisory Board’s Finance and Audit ­purpose. Compliance violations can be reported by name or
Employees are granted access to our systems and data only Committee. Compliance issues also form part of the audits anonymously, where this is permitted by local law. External
to the extent required to perform their tasks. Systematic compliance management commissioned by the Board of Management and performed whistleblowers can use a form on the Group website. Page 42
by Corporate Internal Audit. Page 44
Systems and data are backed up regularly, and critical data Corruption causes more than just financial damage. The All reported violations are handled confidentially. We follow
are replicated in the data centers. We operate data centers at ­intangible, abstract and scarcely measurable harm done Elements of the compliance management system up on every tip and uncompromisingly pursue serious
various locations around the world in order to prevent by corruption is just as serious. The World Economic Forum Continuous analysis of the Group’s specific risk profile is of ­evidence of violations. Internal media are used to ensure
­complete system outages. Additionally, by performing ­estimates that corruption causes several trillion US dollars of fundamental importance for determining the system’s that all employees are aware of the reporting systems and
­regular software updates we can fix potential security economic losses, while the World Bank says that businesses
­vulnerabilities and protect system functionality. and individuals pay bribes worth more than a trillion US
­dollars a year.

Elements of the compliance management system


We observe all applicable international anti-corruption
s­tandards and laws, such as those set out in the UN Global
­Compact, the US Foreign Corrupt Practices Act and the UK
Bribery Act. We are also a member of the World Economic
Forum’s Partnering Against Corruption Initiative. The rules
Create and main- Define and Set up/establish Identify and
for ethical conduct defined in our codes of conduct are set
tain a culture of implement the compliance analyze risks
out in greater detail in our Anti-Corruption Policy, which also compliance objectives organization
defines how to deal with donations and gifts to political
­parties and government institutions.

Our compliance organization focuses on preventing viola- Compliance management system


tions of our own standards and of the legal requirements. Our
compliance management system implements clear lines of
responsibility and reporting structures, and effective moni-
Monitor and improve Communicate compliance- Create and update
toring mechanisms throughout the Group. Our objective is to
compliance program and relevant matters; develop guidelines, evaluate
be proactive and to prevent the rules being breached or ig- reporting; derive and and implement training business partners;
nored by providing clear communication and guidance. Cre- implement measures concepts provide a whistleblower
ating a culture of openness around compliance issues is piv- system
otal to the success of the measures we undertake.
48 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 49

procedures available to them as well as whom to contact In the year under review, a total of 241 regular audits that were Data protection & security Our Data Privacy Policy sets out basic principles regarding
within the local compliance organization. Information either directly or indirectly related to compliance were con- the treatment of personal data and provides information on
­regarding ­relevant compliance violations is included in the ducted by Corporate Internal Audit. A number of ad hoc audits As digitalization increases across all spheres of life, individu- the rights of data subjects, including the right to information
reports to the Board of Management and the Supervisory were also performed. The audits supplement the Group-wide als’ right of self-determination with respect to personal infor- about stored data or to its deletion. Other guidelines derived
Board’s Finance and Audit Committee. monitoring system and support ongoing compliance activities. mation is also becoming more and more important. As a from this policy outline processes and requirements for­
They help to identify additional compliance risks and to con- ­multinational company whose business model is based on specific topics in greater detail; these include the processing
Raising awareness of compliance issues tinuously enhance the compliance program. Their findings are connecting people and exchanging information, some of of human resources data and direct marketing and
We expect our managers to lead by example and to communi- also used to review existing audit criteria for topicality and which is sensitive, we believe we have a special responsibility ­e-commerce activities.
cate our corporate culture, principles and values to both completeness. to protect personal data. Many countries around the world
­employees and business partners. Managers and employees have already set out the requirements for processing per- Data protection management
whose work puts them at greater risk undergo training, which Export controls & foreign trade sonal information in data protection legislation. Businesses The Corporate Data Protection Officer monitors implementa-
includes online components. This modular training course face the challenge of having to familiarize themselves with tion of the Data Privacy Policy, and is supported in this task by
includes units on the Code of Conduct, anti-corruption matters Cross-border transactions involving goods and services are these sometimes very different requirements in order to data protection officers, advisers and coordinators at all sites
and competition law. Depending on their function, employees often subject to a wide range of legal requirements. The ­process personal data in compliance with the regulations and at all levels of the Group. Legal advice, a comprehensive
are required to complete either the entire curriculum or framework for customs, export controls and sanctions is be- concerned. training program and our internal audits ensure compliance
­selected training modules. coming increasingly complex. Violations are usually subject to both with our Data Privacy Policy and with national data
criminal prosecution – both in the EU and at the international Our Data Privacy Policy sets out the global minimum stan­ ­protection regulations. Implementation of our Data Privacy
Results in the year under review level. We have formulated Group policies and implemented dards for the Group. This enables our employees throughout Policy is also subject to regular external third-party review.
We updated our training materials and courses as planned to appropriate organizational structures, processes and internal the Group to handle personal data in accordance with the
reflect the policy changes we made in the previous year and control systems to ensure that our international transportation legal requirements, while strengthening our reputation as a The “Protecting IT systems” section of this report provides
rolled them out in the Group. In addition, we developed other services consistently comply with these steadily growing and reliable partner for our customers and a trustworthy employ- information on the technical measures we take to protect both
training courses for specific target groups. We used our regionally varying requirements. We review and optimize them er. Through our active involvement in key internal and personal and business data from unauthorized access,
Group-wide information campaign marking International on an ongoing basis and give our employees regular training to ­external specialist bodies, we help shape national and inter- ­disclosure or manipulation. High data protection standards are
Anti-Corruption Day on December 9, 2019, to inform employ- ensure ongoing compliance with the law – not only for our- national data privacy requirements on an ongoing basis while ­integral to our brand. Equally, our stakeholders consider data
ees and managers about anti-corruption measures. selves but also for our customers and business partners. ­monitoring their impact on our own business. ­privacy to be critical to our business success. Our data privacy

Data protection management system

“MANAGERS AND EMPLOYEES CAN


Exchange information in global network Raise awareness through training
LEAD BY EXAMPLE BY EXERCISING
DUE CARE WHEN DEALING WITH
THIRD PARTIES.” Data protection

Melanie Kreis
Board Member
Finance Create and manage policies Perform checks
50 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 51

management system, consisting of the following elements, Working with suppliers Anchoring values in our supply chain Supplier management
enables Group-wide compliance with the relevant standards:
Our ability to successfully manage our global supplier An objective selection process incorporating risk
n A global network of data privacy experts and advisers on ­network is a critical competitive factor. Our supplier relation- Employee development assessment
all levels ensures that knowledge and information on ships are regulated by our Supplier Code of Conduct. Suppli- The goal of our standardized, multistep selection process is
relevant data privacy issues are shared. ers signing contracts with Deutsche Post DHL Group must Target for 2019: Perform Certified initiative to ensure that, right from the tender stage, only bidders who
undertake to comply with the company’s environmental training. Status: Achieved share our values are invited to participate.
n Online training courses raise awareness for this topic goals and ethical values, and are encouraged to implement ­Suppliers can use our interactive training module
among employees; these courses are mandatory for the same standards in their own supply chains. Supplier Target for 2020: Continue Certified initiative on the Supplier Code of Conduct in advance to
managers. In addition, we offer on-site courses and cus- ­management is a key component of our procurement training learn about our requirements.
tomized programs for employees in certain functions, ­process, along with the operational tasks performed by
such as sales staff. An additional training module is also ­Corporate Procurement. It enables us to improve the security In line with our Corporate Procurement Policy, preference is
available as part of the Certified initiative. Data privacy of supply and add value by working closely together, and Include environmental and social standards given to suppliers and transportation service providers with
guidelines and policies are reviewed on an ongoing helps us above all to implement our standards in the supply as a binding selection criterion for the high environmental and social standards. We also use exter-
basis and updated as necessary. chain. The main focus of supplier management is on those ­supplier selection process nal supplier evaluations for this and have defined threshold
strategically relevant suppliers who play a key role in value values in order to enable the highest possible quality and
n We perform annual audits to verify compliance with the creation at the Group. We offer our employees comprehen- Target for 2019: Prepare rollout throughout objectivity during tendering procedures.
Group Data Privacy Policy and locally applicable require- sive training designed to sensitize them to the risks that can the Group. Status: Achieved
ments. Privacy impact assessments are also conducted arise in the procurement process.
with local contacts on the basis of detailed question- Target for 2020: Implement standards throughout
naires. Managing and measuring success the Group. Follow-up measures are
Corporate Procurement sets the standards for procurement to be developed over the course of the year
Results & progress in 2019 processes, is responsible for designing the Corporate
­Procurement Policy and defines the selection process for
The mandatory privacy impact assessments and documentation suppliers. As head of a central Global Business Services
requirements were standardized by means of a software solu- ­function, the Chief Procurement Officer reports directly to ­
Our four-step process for evaluating strategic partners
tion – our privacy portal – in 2018, and serve as a fundamental the Chief Executive Officer.
basis for our data protection management system. The function-
ality of the portal has been extended and process steps Annual procurement expenses in 2019 amounted to around
­improved. A research tool was also developed and integrated €11.4 billion. This includes the costs of upgrading our fleets
into the data ­protection network. The contracts used to and sites. In addition to being responsible for central procure-
Obtain transparency about types Assess supplier performance
­c­­om­mission intragroup service providers (processing by a ment measures, Procurement staff advise the divisions on of relationship
­processor) and the associated processes were also optimized calls for tender (e.g. when acquiring airplanes) down to the
and simplified. point at which contracts are signed, and on supplier
­management. The standards applicable to all procurement
An additional online training module enables employees to measures are defined in the Corporate Procurement Policy
familiarize themselves more easily with the key requirements and as such are binding for all Group companies. Supplier management evaluation process
of the European Union’s GDPR. In addition, we provided
­information about selected data protection issues in various
communications campaigns. A data protection module was Identify potential improvements, Review and monitor supplier
also rolled out for the Certified initiative and added to the draft action plan, implement measures performance
course catalogue as planned; it is now available in more than
ten languages.
52 2019 SUSTAINABILITY REPORT

Ongoing supplier screening


A standardized supplier monitoring and evaluation process is
­ orporate Procurement, Corporate Security, Corporate Legal
C
and Compliance. In the course of this two-day workshop,
EMPLOYEES
an integral component of our procurement platform, which participants learn how to correctly apply the Supplier Code
we use to manage all procurement processes throughout the of Conduct, the ­Anti-­Corruption Policy and the Competition
Group. Suppliers assigned to certain risk categories in our Compliance ­Policy. Employees from other areas can also 54 Employee matters 64 Motivation & satisfaction
Anti-Corruption Policy are evaluated regularly as part of our take part in the training as a way to enhance their knowledge
due diligence screening. Our activities are also aligned with and skills. A­ dditionally, the interactive training module for
external standards, such as those defined by the United ­suppliers ­is mandatory for Procurement staff. 56 Workforce diversity 70 Occupational health & safety
­Nations, in order to take country-specific factors into account
more effectively. Identifying and pursuing violations
As a matter of principle, we trust our suppliers and business 61 Human rights & employee
The results of the evaluation are documented and stored on partners to comply with the terms of our agreements and ­relations
the procurement platform. All Procurement staff have simul- only monitor compliance using random checks. Suppliers are
taneous access to complete supplier profiles so that all can mainly selected for such checks on the basis of their econom-
make decisions based on the same information. This ensures ic and strategic significance for the Group and the results ­
that suppliers who pose an increased legal compliance or of our risk assessment. Group functions such as HR and
reputational risk for the Group or who fail to demonstrate ­Compliance are included in this decision.
ethical pricing practices are not considered for contracts.
If we receive specific information that a supplier has violated
our agreements or the provisions of the Code, we review the
BUILDING MUTUALLY situation and prepare an action plan with specific implemen-

BENEFICIAL LONG-TERM tation deadlines. Depending on the severity of the violation,


these measures can also include terminating the business
RELATIONSHIPS relationship.

Results & progress in 2019


Building lasting relationships
When signing contracts, we aim to enter into long-term, We focused on preparing the rollout of the selection criteria
­mutually beneficial relationships with our suppliers – throughout the Group in the year under review. All divisions
relationships that will allow us to learn from one another and now have access to our centralized procurement manage-
develop together. To achieve this, we systematically evaluate ment system. This means that all compliance officers across
supplier relationships using a multistep process. Where we the divisions can also access the questionnaires completed by
identify suppliers with competencies that are of particular the suppliers. As a result, everything is now in place to enable
importance for our business – such as innovators in the fields Group-wide verification of our requirements for all suppliers.
of green technologies and IT – we intensify our dialogue with Internal Audit is involved in the processes.
them, with the aim of working together to develop innovative
ideas.

Raising staff awareness


We specially train Procurement staff to sensitize them to the
risks involved in procurement negotiations – such as corrup-
tion and anticompetitive practices – so that they are equipped
to identify these early on and to resolve conflicts in line with
our policies. As part of our Group-wide Certified initiative,
we offer a training module that was jointly developed by
54 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 55

EMPLOYEES
Employee matters
More than half a million people work for Deutsche Post DHL n Employee matters: Our policies seek to promote n Occupational safety: As our primary focus is on acci- n Occupational safety: The LTIFR for the year under
Group in 200 countries, making us one of the world’s largest employee engagement and development, and occupa- dent prevention, compliance with applicable occupa- review was 4.2, representing a 0.1 improvement on the
employers in the transportation and logistics sector. Our tional health and safety. They help us to retain staff over tional health and safety policies, legal regulations and prior year. Nevertheless, we fell short of achieving our
Code of Conduct embeds our understanding of ethically and the long term and make us more attractive as a potential industry standards is critical. The relevant KPI is the target of 4.0, which will be carried over to 2020. The
legally correct conduct across the Group. We want to be the employer. Respect and results are the keys to under- accident rate per 200,000 hours worked (Lost Time most common causes of accidents and injury in pick-up
Employer of Choice in our industry. standing, and living, our corporate culture. Injury Frequency Rate – LTIFR). and delivery continue to be slips, trips and falls, while
manual lifting and handling of heavy loads are still the
We are committed to respecting human rights, to equal-­ n Respect for human rights: As a signatory to the UN n Respect for human rights: Our top priority is to estab- main reasons in contract logistics. We focus on con­
opportunity recruitment and employment, and to promoting Global Compact, we implement its principles and have lish a common understanding of human rights in solidating a culture of workplace safety and increasing
health and safety in the workplace. Our Diversity and Inclu- made respect for human rights a cornerstone of our employee relations at all levels. Our focus is therefore awareness for the causes of workplace ­accidents among
sion Statement also clearly spells out our position. For us, actions. We also respect the fundamental principles set on raising awareness of the topic through training initia- managers and employees. Our ­communication mea­
“diversity” includes all differences that make us unique as out by the International Labour Organization in its Dec- tives and ER Reviews. sures and training initiatives were continued in the year
individuals; this extends beyond gender, national or ethnic laration on Fundamental Principles and Rights at Work, under review, and will be stepped up in the future. We
origin, religion, age, sexual orientation and identity, disability in compliance with national laws. Our managers play a Results & objectives aim to reduce the LTIFR to 3.1 by 2025.
or any other characteristic protected under law. crucial role in putting our values and goals into daily In the year under review, our Strategy 2025 reiterated both
practice. This is why the Code of Conduct is an integral our goal of becoming Employer of Choice and our existing HR n Respect for human rights: Since the Building Great
Policies (also GRI management approach) component of their employment contracts. policies. Employee Relations training course became available,
All around the world, we need to make our jobs attractive so around 11,000 employees with management responsi-
that we can retain our employees over the long term, provide Measures & KPIs n Employee Engagement: The approval rating for the bility and in HR functions have taken part. We review our
them with development opportunities, and safeguard succes- We use a variety of KPIs to measure the progress of our activi- Active Leadership KPI was 78%. This brought us a offering on an ongoing basis, making adjustments as
sion planning in the Group. The main challenges this raises ties, and this consolidated information is made available to HR ­significant step closer to our goal of achieving a rating necessary. We visited sites in five countries, where we
involve adapting our HR concepts to keep pace with a rapidly specialists and managers via the HR Dashboard. of 80% throughout the Group. We plan to focus on monitored compliance with local laws and with our
transforming working world, while also meeting the Employee Engagement in the future and will use the guidelines. And in 2020 we will perform ER Reviews in
­demands of demographic change. We see the process of n Employee engagement: We use the results of our annual overall value for this KPI for management purposes and Turkey, Côte d'Ivoire, Costa Rica and Slovakia, and train
­increasing digitalization as an opportunity and aim to support Group-wide Employee Opinion Survey (EOS) to assess when calculating managers’ bonuses. We aim to employees.
our employees along this shared journey by offering flexible employee engagement levels. Particular weight is given improve Employee Engagement to 78% in 2020. We
Information on additional activities beyond the mandatory disclosures required by
and age-appropriate learning opportunities. to how they rate the leadership skills of their superiors. have set a target of 80% for the Group as a whole in the German Commercial Code (HGB) can be found in the rest of this chapter.
The Active Leadership KPI derived from this has been 2025.
The HR Board, which is chaired by the Board member for defined as a management indicator under GAS 20, and is
­Human Resources, is responsible for managing such taken into account when calculating managers’ bonuses. n Employee development: Around 346,000 employees
­concepts. Cross-divisional and cross-functional issues, such have already participated in Certified training courses
as how to implement our values in the supply chain, are n Employee development: Our Certified training initiative during 2019. This represents an average share of 69% of
­addressed by the Group’s Sustainability Council (RBP Council). develops employees into specialists in their respective our workforce in the year under review. Starting in
The Employee Relations Forum (ER Forum) acts as the areas of work. For management-level staff, dedicated Cer- 2020, we will also place greater emphasis on
­steering organization for the measures put in place to ensure tified programs provide training in our leadership attrib- ­developing employees with management responsibility.
respect for human rights throughout the Group. The Diversity utes. The participation rate serves as the relevant KPI. For example, site managers are in a position to identify
Council provides advice on enhancing diversity management individual employees’ potential and can provide more
in the Group’s divisions. Particularly important decisions for effective support to help them achieve their personal
the Group are made by the Board of Management. In ­addition, goals. We aim to certify 80% of our workforce by 2020.
the Sustainability Advisory Council (SAC) provides us with
external expertise and recommendations.
56 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 57

Workforce diversity The process of digital transformation is changing existing job The health and safety of our employees in the workplace is implement also support the United Nations’ Sustainable
descriptions and creating new fields of activity. Our employee another key priority. We promote health awareness among ­Development Goals (SDGs).
The engagement shown by our employees and their different development measures provide our workforce with appropri- our staff and also provide employees outside Germany with
experiences and abilities not only mean we can achieve the ate training in specialist areas and methods, preparing them access to health insurance. Regular training highlights poten-
best possible result for our customers each and every day, to meet these changing requirements. Given the growing tial health and safety risks, raising awareness of dangerous
they also form the basis of our commercial success. Mutual demand for logistics industry specialists and managers, stra- situations and how they can be avoided. The measures we
respect, honesty and candor, and a common understanding tegic succession planning plays a key role in helping us retain
of our goals guarantee productivity, creativity and perfor- expertise and also gain fresh ideas and insights through new
mance at the highest possible levels. hires. We use flexible working and development/training
options in an effort to attract the best applicants and retain
Targets and progress in the year under review
DIVERSITY ENRICHES US our employees over the long term.
We identified four material issues for the Group in collaboration with our stakeholders. We have set ambitious targets for each

AND MAKES US STRONGER Particularly in times of change, continuous dialogue between


issue, and are already making progress towards them.

managers and employees is essential. In line with our six


leadership attributes, managers promote open communica-
We consider diversity to be one of our company’s greatest tion with employees and create a working environment that Respect for human rights Employee development
strengths. Across the Group, we employ people from a wide allows them to develop as individuals. One of the ways we
range of cultural backgrounds – with 175 nations represent- make employees feel valued and motivated is by providing KPI: On-site reviews (ER Reviews) KPI: Participant rate in the Certified initiative
ed at our German sites alone. We adopt an equal-opportunity attractive remuneration, along with other elements such as
approach when selecting both internal and external candi- flexible working time models and other initiatives to create a Target for 2019: Perform ER Reviews in Europe, Target for 2019: Certify 69% of our workforce
dates for vacant positions: applicants’ suitability is evaluated healthier work-life balance. Asia, Africa and Latin America, and train employees Status: Achieved Page 68
solely on the basis of their qualifications. Status: Achieved Page 63
Target for 2020: Certify 80% of our workforce
Target for 2020: Perform ER Reviews in Turkey, by 2020
Employees (headcount) by region and ER Reviews in 2019 Côte d'Ivoire, Costa Rica and Slovakia, and train
employees
Total: 546,924 Employees

Europe: 348,604 Employees


Americas: 96,413 Employees
9% United Kingdom1
40% Germany1 Employee engagement Occupational safety
Bulgaria2 2% China1
9% USA1 KPI: Active Leadership approval rating in the KPI: Accident rate per 200,000 working hours
Hong Kong2 Employee Opinion Survey (LTIFR)

3% Mexico1 Other regions: 21,220 Employees


4% India1
Target for 2019: Increase approval rating by one Target for 2019: Improve LTIFR to 4.0
percentage point Status: Not achieved Page 71
Colombia2 Kenya2 Status: Achieved Page 69
Asia Pacific: 80,687 Employees

Target for 2020: Reduce LTIFR to 4.0
Target for 2020: The Active Leadership i­ ndicator will Improve LTIFR to 3.1 by 2025
South Africa2 be replaced with the overall value for Employee
Headcount Engagement; the target for the indicator is 78%

ER Reviews

1) Countries with the most employees; headcount at year end. Page 98. 2) Respect for human rights in employee relations Page 61.
58 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 59

Workforce structure and stamina. We use new technologies and tools such as Equal opportunities for men and women Personal data protection rules limit the individual character-
r­obotics and lifting slings to reduce the physical demands Although the proportion of female employees remained stable istics that we are allowed to record for employees, making
Workforce numbers remained stable compared to the previ- associated with these tasks, helping employees remain fit and at one-third in the year under review, the number of female Group-wide data collection and analysis impossible. In
ous year, testifying to the strength of our position within the active longer, and making the work more attractive to women. managers in the Group has steadily increased to 22.2%. This ­Germany, employers are legally required to fill at least 5% of
postal and logistics services industry even in times of change. Page 101 means that one in five middle and upper management posi- positions with employees with disabilities. In our principal
At the end of 2019, 546,924 people (2018: 547,459) were tions is already occupied by a woman. company in Germany, Deutsche Post AG, the percentage is
working for us directly. The total annual average workforce A smooth transition into retirement 9.1% – corresponding to 15,382 people including 14 in
converted into full-time equivalents (FTEs) comprised We began working with our social partner to develop a It is our aim for the Group-wide proportion of women in­ ­training – which is almost twice the legal requirement.
499,461 (2018: 489,571) full-time Group employees and ­Generations Pact to encourage older employees at our ­middle and upper management to increase to 30%; this
83,116 staff (2018: 78,822) who are external temporary ­principal company in Germany, Deutsche Post AG, to ­target forms part of our Strategy 2025. In accordance with Network supporting LGBT+ employees
personnel. Page 98 ­participate in the world of work as far back as 2011. This is legal requirements in Germany, Deutsche Post AG’s Board of We established our own internal RainbowNet network for
financed via working-time accounts, an employer-funded ­Management set target quotas for 2019 for women in ­the LGBT+ employees in 2008, with the aim of providing a
We employ 17.4% of our staff on a part-time basis, either top-up and a demographic fund. Under the terms of the top two management levels below the Board of ­platform where experiences can be shared. The network ­
due to operational needs or at their own request. Roughly ­collective agreement, employees become eligible when they ­Management. The target for the first level was 20% and was has members in Asia, South America and the USA as well as
73,000 of these are in Germany alone. We respond to reach the age of 55. Comparable options are also available to clearly exceeded, at 25%. The target of 30% for second-level ­Europe, and primarily supports employees and managers on
­seasonal and other demand-driven peaks in volume by civil servants employed within the Group. Page 101 managers was not achieved; the figure reached was 23.1%. all matters relevant to coming out at work. Its aim is to ensure
­employing external personnel, which also helps reduce our More detailed information on this subject is contained in our that all employees can do their job without experiencing any
­employees’ workload. We employ staff through external Integration & inclusivity Corporate Governance Report. 2019 Annual Report disadvantages, regardless of their sexual orientation and
companies primarily in contract logistics and predominantly gender identity.
at our locations outside Germany. Page 100 The way we interact with customers and colleagues is influ-
enced by many different cultural, religious and educational
GROUP TARGET FOR 2025: As a founder member of the PROUT AT WORK Foundation,
Age structure and gender distribution constant experiences. Our integration- and inclusivity-driven approach 30% WOMEN IN MANAGEMENT we are committed to promoting an inclusive, cooperative
The average age of employees in the Group remained offers employees the same career prospects and opportuni- approach that allows individuals to achieve their career goals
­unchanged at 41 years old. The gender breakdown remained ties regardless of gender, nationality, ethnicity, religion, age, irrespective of their sexual orientation or identity. In the year
virtually constant too: 65.6% of positions are occupied by men sexual orientation or identity, disability or any other charac- Deutsche Post DHL Group became the first German under review, we worked with representatives of our LGBT+
and 34.4% by women. The kind of work entailed in logistics, teristics protected under law. ­company to receive the prestigious 2019 Catalyst Award in network to draw attention to this issue at various external
for example deliveries and loading, requires physical strength recognition of our commitment to diversity and to increas- events such as Christopher Street Day parades, conferences
ing the number of women in management positions. The and workshops, and the Sticks & Stones job fair. In addition,
award is based on a comprehensive external analysis we took part in a PROUT AT WORK seminar on coming out in
­involving quantitative elements as well as site visits around the workplace and in a panel discussion on LGBT+ at the
the world and interviews with employees. ­DiverseCity Congress.
Headcount as of December 31, 2019 Employees by division in 20191
Including people with disabilities
Total: 546,924 Employees
In line with our inclusive approach, we offer career prospects
547,459 546,924
508,036 519,544 to people with disabilities all over the world. For example,
497,745 6% eCommerce
Solutions 35% Post & Parcel we employ people with physical and mental disabilities in a
Germany
Spanish logistics center. For one customer this was a key
reason why we were selected to manage their co-packing
29% Supply services. In Germany, we take part in events held by public
r at e Chain authorities, showcasing not only Deutsche Post DHL Group ­
2.5% Average grow th
as an employer but also the various vocational pathways
­available within the company. We also want to remove any
8%  Global hurdles that might prevent candidates from applying.
Forwarding, 19% E xpress
2015 2016 2017 2018 2019 Freight

1) 3% of employees work in Corporate Functions.


60 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 61

Succession planning Training and recruiting young employees Human rights & employee relations
We offer a wide range of training and employment opportuni-
Logistics companies compete for the best employees and ties for job starters and recent graduates. Regional As an employer, Deutsche Post DHL Group leads by example: Creating a common understanding
managers, and we aim to recruit suitable junior staff and ­differences exist, especially between the vocational training its human rights policy anchors minimum standards for fair
­experts in all relevant markets. Strategic succession planning ­systems on offer: In many regions, apprenticeship training working conditions and human rights in employee relations In line with Deutsche Post DHL Group’s leadership principles,
is an important element of our HR activities, involving talent takes the form of on-the-job training. However, in Germany throughout the Group. The Group is committed to the princi- our managers adopt an open and respectful approach when
management and targeted recruiting plus training and and some neighboring countries, training uses a mix of ples of the UN Global Compact and adheres, subject to local dealing with their employees. They act as role models, convey-
­development measures to prepare employees for future ­on-the-job training and education in vocational schools and legislation, to the Universal Declaration of Human Rights, the ing the standards required to establish a common understand-
roles. colleges. OECD Guidelines for Multinational Enterprises, the ing of respect for human rights within the company. This is
­Declaration on Fundamental Principles and Rights at Work why the Code of Conduct is an integral component of their
When introducing Strategy 2025, we therefore decided to use
external certifications and ratings of employee conditions in
5,500 TRAINEES (ILO), and the principle of social partnership. Page 62 employment contracts.

our company as benchmarks. This helps us better assess how GROUP-WIDE Creating good employee relations
close we have come to achieving our strategic goal of becom- COMMITTED TO THE PRINCIPLES Our measures aim to create employee relations that are based
ing Employer of Choice. We have already received Top
­Employer certification in all divisions. The Express division We offered about 2,000 apprenticeship positions in Germany
OF THE UN GLOBAL COMPACT on a spirit of trust. The Employee Relations Forum (ER Forum)
is responsible for steering employee relations issues and im-
was designated the fourth-best employer worldwide by Great during the year under review; 97% of those positions were plementing measures promoting respect for human rights as
Place to Work, an improvement of two places over the filled. In 2020 we will offer the same number of apprentice- defined in our human rights policy. This body consists of em-
­previous year. Top Employer and Great Place to Work are two ships in more than 20 occupations, such as commercial train- ployee relations experts from the divisions and from Group
international institutions specializing in assessing corporate ing as an e-commerce specialist, and 16 integrated degree headquarters. Best-practice solutions are regularly presented
­culture and existing HR processes. programs in Germany alone. and discussed at the meetings, and measures are developed
with the aim of continuously improving the quality of our em-
Keeping track of our workforce structure College and university graduates can choose from a number ployee relations and raising awareness of respect for human
Internal and external applicants alike are judged on the basis of trainee and graduate programs (college recruiting). Our
of professional and personal qualifications alone. We fill trainee programs span several months and prepare outstand-
Employee relations (ER) management system
­vacant positions or newly-created jobs internally whenever ing recent graduates with bachelor’s or master’s degrees for
possible and assign suitable, appropriately trained employees careers as specialists and managers in our company. The
new responsibilities or provide opportunities for job advance- programs are practice-based and are organized in modules
ment. In addition, we continually enhance our training that also include time abroad; among other things, they
­methods and expand our HR development measures. In the f­amiliarize participants with our leadership attributes,
Implement and Train employees Local management
year under review, we were able to fill 82.8% of vacant ­successful employee management and process control. enhance policies with management evaluates local risk
­management positions with internal candidates. Page 103 ­Participants are supported by mentors throughout this time. responsibilities potential

We take both operational requirements and staff turnover


data into account when planning our workforce structure.
Particular attention is paid to unplanned staff turnover, for
Employee relations (ER)
example when employees leave at their own request. At the
close of the year under review, staff turnover Group-wide
was 18.1% (2018: 16.6%). The corresponding value for
­management positions was 9.6% (2018: 7.4%). Page 108 Monitor and report on the Derive concrete measures Certified external
progress of action plans from review findings experts review the local
and set deadlines situation
62 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 63

rights among employees and managers. The ER Forum also progress made with these locally developed measures is In Germany we collaborate constructively with employee ER Reviews completed in five countries
assists local managers in everyday matters and facilitates monitored over an agreed and binding time frame. representatives in all business units where works councils The ER Reviews in Bulgaria, Colombia, Hong Kong, Kenya
dialogue among the divisions at local level. The issues raised ­Implementation is also monitored by Corporate Internal Audit have been formed. Our regular dialogue with our and South Africa revealed substantial amounts of overtime.
in the Forum are also regularly presented to and discussed by during its regular audits. Page 44 Group Works Council and with our parent company’s To reduce these figures, local managers analyzed the causes
the HR Board. In addition, the Sustainability Advisory Council General Works Council also involves the Board Member and developed potential solutions that were then translated
(SAC) provides us with external expertise and recommenda- Dialogue with employee representatives f­or Human Resources. into local action plans. Implementation of these solutions
tions. will be reviewed at a later date. In 2020, ER Reviews will
74% of all Group employees worldwide are employed under Sociopolitical dialogue with the European Commission be ­conducted at sites in the following countries: Costa Rica,
Systematically implementing our human rights policy contracts governed by collective agreements, works agree- As Europe’s largest postal service provider, Deutsche Post Côte d'Ivoire, Slovakia and Turkey.
Our management system aims to effectively implement the ments or statutory requirements. In addition to direct dia- DHL Group is a member of the European Commission’s
provisions of our human rights policy across the Group and to logue with their superiors and management representatives, ­European Social Dialogue Committee for the Postal Sector,
satisfy the requirements of the UN Guiding Principles on employees can turn to employee committees, works councils, and has chaired it since the end of 2016. The committee CONTINUING DIALOGUE WITH
Business and Human Rights. Our efforts to raise awareness
among our employees and managers center on our training
unions or other bodies to help represent their interests. The
primary responsibility for dealing with local employee repre-
brings together employers and union representatives from
the postal sector in European member states to discuss rel-
UNI AND ITF BASED ON THE
initiatives and ER Reviews. sentatives and trade unions rests with the divisions at a coun- evant issues – with due consideration given to social aspects. OECD PROTOCOL
try and local site level.
ER Review concept Results & progress in 2019
Countries and sites are selected for ER Reviews on the basis An open and trusting dialogue at global level Dialogue with international unions
of the risks involved. This process involves internal criteria At the global level, we have engaged in regular dialogue on Continuing implementation of the management system During the year under review, we worked with the two inter-
such as the number of employees as well as external input, employee relations for over ten years with the two interna- We reviewed the effectiveness of the individual components national union federations, UNI and ITF, to enhance the con-
for example from the international union federations, the tional union federations UNI Global Union (UNI) and the of the management system. As a result, the two training tents of the OECD protocol and to continue the constructive
Maplecroft Institute (Human Rights Index) or Transparency ­International Transport Workers’ Federation (ITF). These modules “Employee Relations for HR” and “Building Great dialogue. The lead organization is the German National
International (Corruption Perception Index: according to our ­discussions focus on issues of global importance and their Employee Relations” were combined. More than 2,400 em- ­Contact Point for the OECD Guidelines for Multinational
Anti-Corruption Policy ≤45). impact on Deutsche Post DHL Group. Building on this ployees and managers across the Group have now completed ­Enterprises, which signed the protocol in the presence of
­tradition of close and open collaboration, we are continuing this training, bringing the total number of participants since both parties on November 25, 2019. The general secretaries
To guarantee the objectivity and quality of the review pro- this regular dialogue with the two union federations, which is rollout to around 11,000. We will continue our training mea­ of the two union federations will continue to meet our Board
cess, ER Reviews are performed by specially trained and based on a protocol signed by the OECD’s German National sures in 2020. We have intensified our communications Member for Human Resources at least once a year to share
­externally certified experts from the divisions and from Contact Point (NCP) in 2016. ­activities on respect for human rights and good employee information and ideas. Various workshops also
Group headquarters. In countries with a comparatively low- relations, providing information online on a regular basis. took place in the year under review, discussing
level risk, the divisions themselves can decide whether an Dialogue with European unions not only possible means of enhancing the
ER ­Review is needed and, if so, perform it on their own. In all The Deutsche Post DHL Forum is a European works council Guidelines for managers developed ­dialogue but also how future challenges in
other countries, reviews are carried out as the need arises. by agreement comprising employee representatives and As a result of the ER Reviews, we created internal guidelines ­employee relations could be faced.
Corporate Internal Audit is involved in ER Review planning, managers from all divisions across 30 European countries. for managers on good employee relations. These contain
and dates for ER Reviews and review catalogues are The Forum’s committees advise on the Group’s business guidance on applicable policies and standards that must be
­coordinated. ­performance and on topics with an international reach, such taken into account when dealing with employees and their
as organizational changes and the introduction of new work representatives. Regional and local discussions take place at
ER Reviews include discussions with focus groups made up of and production processes. The plenary sessions of the regional meetings chaired by a member of the ER Forum and
randomly selected employees at the same hierarchical level Deutsche Post DHL Forum are held twice a year with the provide an opportunity for mutual support. For example, in
drawn from a range of operational areas, plus external per- Board Member for Human Resources in attendance. The two Japan the solutions developed to implement the labor law
sonnel (if legally permissible). Local employee representative international union federations – UNI Global Union and the reform were shared among the divisions.
bodies are also involved in the dialogue wherever they exist. European Transport Workers’ Federation – can each send a
During the focus groups, the experts ensure that the ano- representative to participate in these sessions.
nymity of participants is upheld, that they are treated with
respect and that they have the right to freely express their
opinion. Management on the ground then draws on this
­anonymized feedback to derive individual action plans. The
64 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 65

Discussion with unions at European level Motivation & satisfaction For 74% of our employees, remuneration is based on works Delivery GmbHs included in company collective
In the year under review, the Deutsche Post DHL Forum – agreements, collective labor agreements, or statutory salary ­agreement
which is a European works council by agreement – met more A number of factors combine to boost employee motivation adjustments. Within Germany, it is generally regulated through In March 2019, changes were made to Deutsche Post AG’s
than 26 times (including committee meetings). The main and make us more attractive as an “Employer of Choice”: either company- or industry-specific collective agreements. In company collective agreement in Germany. This constitutes a
issues discussed were our Strategy 2025, our business per- ­performance-based, competitive remuneration including many of our German subsidiaries, employees covered by further step toward ensuring competitive wage structures in
formance, compliance issues, IT security and cyber security, additional benefits designed to improve the work-life ­collective agreements also receive a p ­ erformance-­based the mail and parcel market, building a foundation for sustain-
and the impact of digitalization on employees. Takeaways ­balance, a broad range of development opportunities, and the ­bonus in addition to their wage or salary. able business success.
relevant to Germany are reported on in the following section. chance to make a real difference with innovative business
ideas or suggestions for improving the working environment. We use neutral job grading to avoid discrimination based on The changes primarily take account of regional factors when
Support for the National Action Plan for Human Rights Employee motivation is also cultivated by superiors who characteristics such as gender, national or ethnic origin, new hires are made. They allowed us to bring the 13,000 or
As of 2019, the German government has been performing ­establish a culture of trust and embrace change and ­religion, age, sexual orientation and identity, or disability. Our so employees at our 46 Delivery GmbH companies in
random checks on companies with more than 500 employees ­uncertainty in a positive manner. We measure employee sole considerations are the nature of the tasks to be ­Germany under Deutsche Post AG’s company collective
as part of the National Action Plan to monitor implementation ­engagement and leadership qualities in our annual Group- ­performed, the position in the company and the level of agreement as of July 1, 2019. Our employees are even more
of the UN Guiding Principles on Business and Human Rights. wide Employee Opinion Survey. ­responsibility. Our systematic approach ensures an impartial successful now that they are under one roof, and now we
Five German subsidiaries participated in the initial survey. and equitable remuneration structure within the Group. have a single, competitive collective agreement for our post
The process of completing the questionnaire enhanced Attractive compensation and parcel business. Combining the administration of parcel
awareness of respect for human rights in our subsidiaries and Additional time off under the 2018 collective agreement ­delivery staff also makes it easier for us to organize day-­
stimulated internal dialogue on the issue. We also worked We offer appropriate, competitive remuneration packages in For the first time in October 2018, and again in October to-day production. In addition, the benefits of the company
with the National Action Plan project group and assisted in all of the markets we serve. Compensation is subject to local 2019, the 130,000 or so Deutsche Post AG employees collective agreement (such as our company pension plans)
preparations for the second data collection phase. The find- and position-specific requirements and regulations. Local ­covered by collective agreements could chose if they wished have now been extended to all employees.
ings of the first survey will be published in 2020. market conditions are also taken into account when rates are to take additional time off or benefit from a wage increase.
set. Remuneration includes a base salary plus the agreed At the end of the year, a total of 16.9% of such employees had
Sociopolitical dialogue at EU level variable remuneration components such as bonus payments chosen to take more time off, and are now enjoying up to
The EU project “Trend research for the postal sector in 2030”, and, in some countries, retirement plan contributions and 13 extra days’ free time per year.
which began in 2017, was successfully concluded in June health insurance costs. In many countries, Deutsche Post DHL
2019. In it, management and labor representatives (social Group also offers employees defined benefit and defined
partners) in Europe collaborated with a futures studies insti- ­contribution occupational retirement plans, and assumes the
tute to develop possible scenarios for the postal sector in costs of health insurance and treatment for employees and
2030, focusing in particular on social aspects. The insights their family members.
gained were presented at a wrap-up conference in Brussels “OUR NEW COMPANY COLLECTIVE
and the final report was published. A declaration on the im-
portance of lifelong learning and associated employee needs
AGREEMENT CONSCIOUSLY DISTANCES
in the digital age was signed in collaboration with our social Staff costs (€ million) US FROM LOW-WAGE COMPETITORS IN
partner.
THE SECTOR. IN ADDITION, WE HAVE
19,640 19,592 20,072 20,825 21,610
RULED OUT TERMINATIONS FOR
OPERATIONAL REASONS THROUGH
r at e THE END OF 2022.”
2.8% Average grow th
Dr. Thomas Ogilvie
Board Member for Human Resources & Labor Director
Corporate Incubations
2015 2016 2017 2018 2019
66 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 67

It was also agreed not to outsource mail and combined mail Ideas breed success Project examples Employee development
and parcel delivery services before December 31, 2020. n TRAILAR: Our subsidiary in the UK equips trucks and
Equally, the moratorium on terminations for operational We use the Start-up Lab and our idea management platform trailers with solar mats that generate power for vehicle With companies competing for the best employees and
­reasons was extended to December 31, 2022. to motivate our employees to apply their creativity and know- electrical systems. This not only reduces carbon emis- ­managers, the professional and personal development of all
how to develop new business models or improve their own sions but also fuel consumption. The people employees is essential for our business success. Once again,
Achieving a healthy work-life balance working environment. who came up with the idea were promoted this analysis has been confirmed by our employees
We offer a variety of benefits designed to support our to TRAILAR management and are now in ­themselves and by other stakeholder groups. In the 2019
­employees as they plan the different phases of their lives, Turning employees into entrepreneurs charge of a team of 35 employees. Employee Opinion Survey, the Learning & Development KPI
helping to make the Group’s jobs and working models more Ideas for innovative business models or potential applications received an approval rating of 83%.
attractive to women as well as men. of new technologies are presented to a jury and assessed n XPL: This is a smart contract management system
over several rounds. In the final rounds, the jury primarily that uses blockchain technology to enable intelligent On average, employees spent 1.3 days of training per year on
n Flexible work models: Subject to operational require- consists of members of the Board of Management. Success- digitalization of freight contract management in the occupational and workplace-related training. A total of­
ments, employees can agree flexible working hours and ful participants are granted dedicated time away from their ­Global Forwarding, Freight division. ­approximately 4.7 million hours were spent in various online
locations. Additionally, the Generations Pact allows usual responsibilities, intensive coaching from a member of and classroom training programs in the year under review.
Deutsche Post AG employees to take advantage of the the Board of Management, and mentoring and external con- Ideas for enhancing work processes Our training and development opportunities are available to
option of partial retirement based on working-time sultancy services to help them move their concepts forward. We also encourage our employees to play an active role in all permanent employees.
accounts. Comparable benefits are also available to the improving their own working environment. They can submit
civil servants employed within the Group. 1,500 employees have presented roughly 590 projects their suggestions via the idea management platform. Any Boosting expertise
since 2018, of which 36 received intensive support and ideas that result in a proven benefit are rewarded using a We achieve high levels of motivation with our Group-wide
n Family care offering in Germany: We work with a ser- ­seven are already in operational use. In the year under bonus system. Certified initiative, which we use to boost our corporate­
vice provider to support employees in their search for ­review, around 250 employees presented a further ­culture and to certify employees as specialists in their
suitable childcare. Options include vacation programs,
emergency care, advisory and placement services, and
135 projects, of which 17 were taken up by the program
for development this year.
EMPLOYEE IDEAS ­divisions. The two-day foundation course develops a
­common understanding of our strategic goals across all
company support for childcare places. We also offer SAVE €14.2 MILLION ­divisions and countries. Employees who have successfully
support for staff who are caring for relatives. completed the training gain a better understanding of our
business processes and learn how important their own
n Vacation offerings: The Recreation Service In the year under review, approximately 64,000 new ideas ­contribution is to the company’s business success, and how
­(Erholungswerk Post Postbank Telekom e.V.), which were submitted. About 83% of the ideas with proven benefits valued their engagement is. Building on the foundation
receives financial support from Deutsche Post DHL were implemented in 2019, resulting in cost savings of ­ ­training, we offer employees a broad range of subsequent
Group, offers affordable vacations to current employees €14.2 million. Here are two successful examples from our modules geared towards their individual role or area of
and retirees. Children of employees can also receive idea management platform: ­specialization.
vacation allowances in certain circumstances on a
means-tested basis. Such assistance was approved for n Process digitalization: The existing distribution and Certified training sessions are run by company employees
approximately 2,300 children in the year under review. management software was improved so that it can now and managers who have completed special facilitator train-
distinguish between returns from major customers and ing. This approach has been shown not only to increase the
other items. This resulted in shorter processing times, a learning effect and impact of the training, but also to foster a
decrease in the error rate to 0%, and fewer contractual sense of loyalty and team spirit within the company. Around
penalties. 346,000 employees have already participated in Certified
training in recent years. This represents an average share of
n Clearing blockages: Magazines often cause malfunc- 69% of our workforce in the year under review before adjust-
tions in automated sorting systems. However, technical ments for employee turnover.
optimization has made it possible to avoid sorting errors
and ensure punctual delivery.
68 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 69

We plan to certify 80% of our workforce by 2020. Starting in n Raising diversity awareness: Our dedicated training Employee Engagement
2020, we will also place greater emphasis throughout the and workshop modules offer employees the opportunity
Group on developing employees with management responsi- to enhance their awareness of the importance of diver- 77% of all employees around the world took part in our an- displayed by our employees. The Employee Engagement KPI
bility. These represent an important interface between senior sity and inclusion. Managers play a key role in putting nual Group-wide Employee Opinion Survey, our most impor- helps us gauge how motivated our employees are to
management and employees, and it is their responsibility to diversity management into practice. This year’s Diversity tant feedback channel. We explicitly encourage everyone to ­con­tribute to the company’s success. We also recorded
identify and encourage potential and to provide effective Week, in which numerous employees worldwide once express their opinions openly, and participation is of course ­improvements in the year under review in categories that had
support as employees work to achieve their own goals. again took part, focused on unconscious bias. The topic entirely voluntary. All responses, whether by mail or elec- previously been stagnating: Future & Strategy, Performance
led to more than 600 posts and over 100,000 comments tronically, are completely anonymized. The same EOS ques- ­Enablement Index, and Cooperation.
Progress of the Certified initiative on our internal social media channel alone. tionnaire is used throughout the Group, ensuring comparabil-
ity of results for all categories and questions across all 2019 Employee Opinion Survey
n Health at work: We implement targeted training mea­ divisions. In the year under review, we reviewed the process-
80% sures to promote health awareness among our employ- es and procedures for analyzing the responses with Internal
69% ees and managers. Our Certified training allows Audit. The results will be used to prepare this year’s survey.
59% managers to learn about the impact their leadership Page 44
51%
style can have on employees’ health. All employees Approval rating
receive tips on how to keep healthy and are given by category
­regular training in occupational safety. EMPLOYEE ENGAGEMENT 77%: + 1%
Management development
ACTIVE LEADERSHIP 78%: + 2% Customer Centricity & Quality 82%

2017 2018 2019 2020 We expect our managers to have a motivational leadership
Employee Engagement 77%
style. Their core responsibility is to make clear to employees
how their work helps the company achieve its objectives and The questionnaire comprises 41 questions that are assigned
Active Leadership 78%
how they can support the organization. About 1,500 mana­ to 10 key performance indicators (KPIs). The Performance
The drive to keep learning gers have now taken part in training courses on our six Enablement Index is also derived from these questions.
Future & Strategy 73%
Our broad range of individual training and development op- ­leadership attributes: being results-oriented, leveraging one’s Among other things, we want to know what employees think
portunities extends from basic courses through to specialized strengths, providing purpose, having and creating trust, about the current situation within the Group, how they evalu-
Communication 78%
training aimed at specific target groups. Focus areas include ­focusing on priorities and being positive about challenges, ate the leadership of their superiors, the extent to which they
issues such as compliance and lifelong learning, but also en- uncertainty and change. The resulting idea of comprehensive identify with our values and our strategy, and where we
Teamwork 85%
compass personal development plans with appropriate train- leadership is also reflected in the training courses for the might need to improve. We also use the survey to assess
ing courses and activities. Group’s senior management, who take part in ongoing whether they think that the information, resources and train-
Learning & Development 83%
­development measures using specific training ­formats. ing we provide are enough to ensure their success. We con-
n Code of Conduct: Case studies are used to familiarize sult external ratings to shed light on our own observations
Job Fulfillment & Workplace 80%
employees and managers with the significance of the Additionally, we offer leadership seminars and development and results.
Code of Conduct and other Group policies. The training programs that are specially tailored to the needs of individu-
Continuous Improvement 70%
also covers the various ways in which suspected als and the requirements of their divisions. Members of the Improvements in all categories
infringements of the policies can be reported. Roughly Board of Management also take part in these modular We achieved a one percentage point improvement in every
Group Responsibility 79%
52,300 employees took part in the training in the year ­development programs, which are based on methods such category, and two percentage points in Active Leadership,
under review. as ­reflection, feedback and coaching – sometimes in the bringing our score to 78%. We also scored 77% for Employee
Performance Enablement Index 82%
­capacity of trainers. Engagement and are therefore approaching our target of
80% in both areas – our benchmark as the Employer of
Choice. Active Leadership serves as a key non-financial
­performance metric in accordance with German Accounting
Standard GAS 20 and is taken into account when calculating
managers’ bonus payments. Managers are role models when
it comes to implementing our corporate values and goals, and
have a major bearing on the motivation and engagement
70 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 71

We are proud of these results. They confirm that we are on Occupational health and collaboration between occupational safety experts in the Results & progress in 2019
the right track as a company and that we are getting closer
and closer to our goal of becoming the Employer of Choice.
& safety different divisions. It defines cross-divisional regulations and
standards, investigates accident black spots, develops best- The Group’s LTIFR in the year under review fell to 4.2 (2018:
We are not complacent, however, and our success spurs us on The health and safety of our employees at work is extremely practice solutions for accident prevention and lays the 4.3). However, we did not meet our target. This was largely
to do even better. When developing our Strategy 2025, we important to us. Occupational safety was also confirmed as a groundwork for decisions to be made by the higher-level due to the high accident rate in Post & Parcel Germany. The
reviewed our concepts and found that focusing on a single material issue by our stakeholders. Our Strategy 2025 makes Operations Board. The Board of Management has tasked this division dominates the figures for the Group as a whole
issue from the Employee Opinion Survey as a KPI no longer it our mission to create a culture of safety at work within the body with overseeing the implementation of the require- ­because of its large workforce and also registers a relatively
seems appropriate. Instead, starting in 2020, we will intro- Group. This involves raising awareness among managers ments in the divisions and their progress in managing the large number of accidents. These are primarily in pick-up
duce overall Employee Engagement as a KPI and use it when about their function as role models, and among employees occupational safety KPIs. We measure the success of these and delivery, where employees operate in public spaces and
calculating managers’ bonuses. By 2025 we hope to achieve with regard to potential hazards. measures based on the accident rate per 200,000 working risks are much more difficult to assess than in a controlled
an 80% approval rating across the Group. hours (LTIFR). Our accident data also includes accidents working environment. Page 104
Compliance with the Group’s occupational health and safety among external temporary staff working at our sites.
policies, and with statutory regulations and industry
Accident rate (LTIFR) trend
­standards is particularly important to us, so much so that it is Management system defined
­embedded in our Code of Conduct. Our Supplier Code of We defined the elements of a management system based on
4.4 4.3 4.2
­Conduct, a binding component of Group contracts, requires ISO 45001 in our guidelines for implementing occupational 4.0
our business partners to adhere to these same high safety measures. The divisions themselves decide on the
­standards. Our codes embed certain practices in our own extent of implementation, from the use of individual ele- 3.1
operations and those of our business partners – these include ments to external certification. The guidelines are supple-
workplace risk assessments, instructing employees on mented by additional tools:
­potential risks and hazards, implementing preventive
­measures to protect employees, external workers and others n Self-assessment: With the help of a questionnaire, site
from injury, and regular safety training. managers can review progress on the occupational
safety measures required by the guidelines, and identify
2017 2018 2019 2020 2025
Safety first any necessary actions. In the year under review, this
tool was externally verified to ensure conformity with
Accident prevention in the workplace is our main priority. ISO 45001.
Some of our most difficult challenges can be found in our
pick-up and delivery operations, known as the first and last n Employee surveys: One questionnaire helps determine Each work-related accident led to an average of 16.5 missed
mile. Bad weather, roadworks, complex traffic situations or the degree to which employees have internalized the workdays (2018: 15.8 missed workdays). In the year under
dealing with animals require employees to pay attention, culture of safety. Employees also have the option of reg- review, we included GEMBA Walks, a tool from the First
­concentrate and take responsibility for themselves. The most istering their personal opinion about the maturity of Choice initiative, as one of our occupational safety measures,
common causes of accidents are trips, slips, ankle twists and occupational safety in the company. making it available as an app. GEMBA Walks are used to raise
falls, or handling heavy loads. awareness among employees about potential accidents
where they work. Problem areas are subsequently identified
Managing occupational safety and measuring progress and addressed in meetings. Communication activities about
Our Group-wide Occupational Health & Safety Policy occupational safety were stepped up in the run-up to the
­Statement uses seven key components to define our busy Christmas period.
­requirements in this area. They are specified in the “Safety
First Framework” guidelines, which describe our occupational The employee surveys were carried out with site managers
safety measures on the basis of ISO 45001. and executives from various divisions. We will continue them
in 2020.
The divisions are responsible for operational management:
Each Group division has its own organizational and
­management structure dedicated to occupational safety. The
Occupational Health & Safety Committee facilitates dialogue
72 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 73

Fatal workplace accidents Although we have not managed to achieve our targets in A comprehensive approach to health Organization and risk analysis
In the year under review, three employees (2018: eight fata­ ­recent years, we are working as hard as ever to minimize the and well-being Health risks considered relevant for the Group are analyzed
lities) lost their lives because of accidents in the workplace. accident rate in the Group. Our aim for 2020 remains to on a quarterly basis and reported to the Board of
One fatality resulted from a traffic accident. We meticulously ­reduce the LTIFR to 4.0. In addition, we are continuing to Continuous change – in the workplace, in demographics, in ­Management. Based on an additional, systematic evaluation
analyze and document the cause of each accident to prevent ­pursue our 2025 target of improving the LTIFR to 3.1. global health trends – is demanding more and more of our of risk indicators, Insurance & Risk Management develops
any repetition of such incidents. Our findings are then used to employees. To help them maintain their motivation and initiatives and other offerings tailored to local needs.
design and implement corrective measures. Safe transport of dangerous goods ­performance levels, we encourage employees and their ­Implementation is then left to the Group’s divisions, which
­families to pursue healthy lifestyles, avoid risk factors, and are also responsible for local-level health management.
Accident rate in the divisions We specialize in transporting dangerous goods and materials take advantage of offerings such as preventive screening.
n Supply Chain: The accident rate of 0.6 was once again subject to our terms and conditions, and we instruct employ- Our approach is based on the World Health Organization’s The HR Board receives regular updates on, and discusses, the
the lowest in the Group (2018: 0.7). In contract logistics, ees in this area to ensure we provide safe, professional comprehensive healthy workplace model. We also take into company sickness rate and progress made with regard to
the level of awareness of workplace accident risks is ­transportation and storage. Priority will always be given to consideration the impact of aging populations and the strain health initiatives and health coverage offerings for employ-
very high. the safety of our employees and minimizing risk. Dangerous this puts on healthcare systems. ees. Particularly important issues that are relevant to the
goods are transported in accordance with applicable Group as a whole are decided on by the Board of
n Post & Parcel Germany: By contrast, the measures ­international and national safety standards, including Health insurance outside Germany ­Management. When it comes to issues related to medical
intended to reduce the accident rate in this division, the European Agreement concerning the International Many of our employees live and work in countries where crisis management, the Board of Management is advised by
which were ramped up three years ago, have not yet had ­Carriage of Dangerous Goods by Road and the International ­statutory health insurance does not exist or is inadequate. the Chief Medical Officer, who is also responsible for assess-
any sustained impact: The figure increased by 0.4 year- Air Transport Association Dangerous Goods Regulations. Since 2015, we have been offering employees and their ing health risks that are relevant to the Group and for defining
on-year to 12.5 (2018, adjusted: 12.1). We will step up ­dependents high-quality, affordable healthcare coverage strategies to address these risks. We make sure when
both the accident analysis process and preventive mea­
sures, and will expand training in this area. We provide
OFFICIAL PARTNER OF THE through our Group-wide employee benefits program. The
program currently reaches some 250,000 employees in over
­developing and designing health management measures to
involve employee representatives and support them with
our employees with special footwear to prevent EU-OSHA HEALTHY WORKPLACES 100 countries. We also have incentives in place for local appropriate training. We measure the success of our
­accidents due to trips, slips or ankle twists.
CAMPAIGN ­management to reinvest insurance savings in health
­promotion programs for our employees and their families.
­initiatives across the Group with the help of various KPIs.
Our external reporting focuses on sickness rate trends.
n Express: The LTIFR saw an improvement to 2.4 (2018:
3.1). This result was achieved mainly by introducing
accident prevention campaigns at sites with elevated Only specially trained employees are permitted to handle
accident rates. One such example saw employees in the dangerous goods. In all divisions, dangerous goods safety
Four pillars of health management
USA share know-how and best-practice solutions with advisors ensure compliance with applicable regulations.
their German colleagues. This helped one site in ­Dangerous goods guidelines are made available in the
­Germany to reduce its accident rate by more than 40% ­languages of the countries concerned. Despite the Group’s
within 18 months. Another example, also in the USA, high standards and extensive experience in the area of
saw the trial of “Kinetic wearable technology”, which is ­dangerous goods transports, handling and warehousing,
Education & Awareness Behavioral Change
designed to measure physical strain. The idea is to we still rely on our customers to declare and label their
encourage ergonomically correct postures when ­dangerous goods ­shipments completely and correctly, as
employees lift loads. required in our ­general terms and conditions. In the year
­under review, we participated as an official partner in the
n Global Forwarding, Freight: At 0.9, the LTIFR was EU-OSHA’s Healthy Workplaces Campaign 2018-2019 on Health Management
down 0.1 on the prior-year level (2018: 1.0). Global how to manage ­dangerous goods.
­Forwarding's sites in Europe are now ISO 45001
­certified.
Disease & Condition Management Prevention & Screening
n eCommerce Solutions: This division was established in
January 2019 so the LTIFR is being reported separately
for the first time – it was 1.6.
74 2019 SUSTAINABILITY REPORT

Improving health and well-being across the Group


We work together with selected partners to evaluate regional
launch of a health app that gives users pointers to specific,
personalized health solutions. This will enable additional data
SOCIETY
and typical business health risks and develop health promo- analyses that supplement ICD10-based data reporting, and
tion and well-being initiatives that specifically target the will help us tailor our initiatives and offerings more closely to
identified problems and cost drivers. Our health promotion the needs of employees. 76 Social matters 80 Disaster management
measures empower our employees and their dependents to
take responsibility for their own health and well-being, and Sickness rate at prior year level
help to embed a culture of health at all levels of our organiza- The change in the sickness rate can largely be attributed to 77 Our responsibility 82 Improving employability
tion, while reducing related costs. Our Four Pillars of Health the rise in chronic diseases affecting, for example, the
model provides the framework for our Health and Well-being ­musculoskeletal system. In the year under review, the Group-
Program, with each pillar addressing a different phase in wide sickness rate remained at the prior-year level of 5.3%. 78 Volunteering
health promotion: prevention, health awareness, mitigating ­Workplace accidents accounted for 0.3 percentage points of
disease, and driving behavioral change. this figure. Page 104

Since launching the program, we have seen steady growth in Sickness rate by division in 2019
the number of initiatives implemented across the Group, cov-
ering topics such as children’s health, diet and exercise, dia-
betes management, achieving a work-life balance, managing Post & Parcel 10.2%
Germany
musculoskeletal conditions and lifestyle issues. A central IT
Express 2.7%
platform is available to employees as a way to promote dia-
logue and provide relevant information on these topics. Global Forwarding, 3.1%
Freight

Results & progress in 2019 Supply Chain 3.3%

eCommerce
2.5%
Employees have experienced a significant increase in health Solutions
and well-being campaigns since 2018, demonstrating an
­expanding and holistic approach to the dissemination of a
wellness culture within our Group. Best-practice examples
Various factors affect regional sickness rates, including the
include activities and campaigns related to nutrition and
relatively high average age of employees in some areas and
leading a healthy lifestyle (Mexico), a Sunday morning run
changes in working structures – most notably in delivery
with over 700 employees (Thailand), and campaigns and
­operations in Germany.
regular online information about various topics plus as a
women’s running day (Middle East/North Africa).

As workplace digitalization continues, employee mental


health remains an important issue. Our Certified training for
managers stresses the relationship between good leadership
and good mental health among employees. 2,320 managers
took part in these training courses in the year under review.
In Germany, China and the USA – the countries with the
­largest numbers of Group employees – we offer mentally ill
employees support in the form of access to occupational
health experts and employee assistance programs. We work
together with recognized research institutes to identify and
assess sources of psychological stress. In Germany, we
­cooperated with a health insurance provider to prepare the
76 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 77

SOCIETY Our responsibility


Social matters We want to contribute real solutions to the global challenges Our programs and partnerships support the United Nations’
of our time, which is why our programs and partnerships are Sustainable Development Goals (SDGs).
Our sites, employees and suppliers around the world assist in Group sites clearly understand how they can get involved, designed to achieve maximum effectiveness and impact for
the socioeconomic development of their regions and make an what is required, and how their involvement contributes to society. In the year under review, we celebrated the 10-year
indirect contribution to the prosperity of both individuals and the Group’s larger goals. A central internal platform facilitates anniversary of both our GoTeach program, which aims to
society as a whole. Our corporate citizenship initiatives make a employee dialogue across the Group and catalogues indi- improve the employability of disadvantaged young people,
direct impact on the communities in which we operate. In vidual activities, which we then use for internal and external and our GARD program, which helps airports in disaster-
keeping with our mission to connect people and improve lives, reporting. prone regions prepare for the demands of an emergency
we leverage the power of our global network and the logistics response.
know-how of our employees to make a difference on the local Measures & KPIs
level. Based on the dialogue with our employees, we know that OUR EMPLOYEES
Policies (also GRI management approach)
corporate citizenship is a relevant factor in determining their
overall level of motivation. Our employees want their work to
ACT AS AMBASSADORS FOR
We provide various incentives to support employees in their have a positive impact on society and the environment, and VOLUNTEERING
volunteering activities. We also manage Group-wide hence to help enhance the company’s reputation. They iden-
­programs focused on specific areas: tify with our corporate citizenship programs and are proud to
be a part of the larger family that is Deutsche Post DHL
n Disaster management (GoHelp) Group.
Developing procedures and emergency response plans
at airports to avoid relief-supply bottlenecks. We also With this in mind, we use our Corporate Citizenship Index KPI
offer emergency logistics support in the event of natural to measure the impact of our activities. The KPI has two
disasters. ­components: first, the approval ratings in the Corporate
­Citizenship category in the annual Group-wide Employee
n Improving employability (GoTeach) Opinion Survey; and second, the results of a dedicated online The pillars of our corporate citizenship activities
Providing support to young people living in disadvan- survey which reaches about half of all employees.
taged socioeconomic circumstances as a result of pov-
erty, loss of family or being forced to flee their country. Results & objectives
GoTeach aims to prepare them for the demands of the Our Disaster Response Teams were called on by the UN to
working world and to improve their chances of gaining support disaster relief efforts following a cyclone in Local projects Disaster Improving
employment. ­Mozambique and the hurricane in the Bahamas. We also ran management employability
emergency preparedness workshops in Honduras, Iraq,
All of these areas of activity involve collaboration with estab- ­Nepal, Peru and Madagascar, which included developing
lished partner organizations. GoHelp relies on our longstand- emergency response plans for airports on the ground. 2019
ing partnership with the United Nations (UN), while our part- also saw the continuation of various GoTeach program
nerships with Teach For All and SOS Children’s Villages form ­activities. Get Airports Ready for Partnership with
Volunteering
Disaster (GARD) Teach For All
the basis of our GoTeach activities. It is thanks to the exper-
tise of these partners that we can ensure the social relevance The Corporate Citizenship Index score for the year under
Partnership with
and effectiveness of our programs and activities. ­review was 79%; this represents an increase of two Financial support Disaster relief
SOS Children’s Villages
­percentage points over the prior-year figure. Our goal for
Our Group-wide activities in this area are coordinated and 2020 is to at least maintain this score at its current level. Refugee aid
managed by the CEO board department. The focus areas and
Information on additional activities beyond the mandatory disclosures required by
objectives of these activities are outlined in the Group’s Code the German Commercial Code (HGB) can be found in the rest of this chapter.
of Conduct and set out in greater detail in our Corporate
­Citizenship Guideline. This ensures that employees at all
78 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 79

Measuring our impact Volunteering work is not limited to a given day or individual project. Our Financial support for outstanding projects
In addition to our Corporate Citizenship Index KPI, we use partner ­organizations manage countless social and environ- Through our Living Responsibility Fund, we have also been
the LBG model to measure our corporate ­citizenship Our employee surveys have shown a measurable correlation mental projects, and employees can engage in these providing financial support to approximately 100 outstand-
­activities: between participating in corporate citizenship activities and throughout the year as local opportunities and their sched- ing projects every year since 2011. Our goal is to support
motivation on the job. Nearly 80% of our employees feel that ules allow. employees who demonstrate lasting commitment to social or
n Input: Total financial donations, monetary value of time/ the company encourages them to act in a way that is socially environmental causes and serve as role models for their
effort expended by employees, donations in kind, and
the management costs associated with coordinating and
and environmentally responsible. We have also found that
employee motivation and company loyalty are even higher
OVER 114,000 EMPLOYEES TOOK ­fellow colleagues. A cross-divisional jury selects the most
eligible projects, which can then receive support of up to
implementing the various activities when an employee’s individual interests and skills are aligned PART IN VOLUNTEER PROJECTS €4,000. In order to qualify for financial support, at least two
with their area of involvement. We use various instruments to Group employees must volunteer a total of more than 50
n Output: Number of people reached or supported; support volunteering among our employees, showing them hours of their time to a charitable partner organization over
­number of activities/offerings how they can get involved in different initiatives or join forces Supporting practical action the course of one year.
with like-minded colleagues to get a project off the ground Our Global Volunteer Day has been a major component and
n Impact: Resulting short and long-term changes in themselves. In doing so, we hope to inspire our employees to driver of employee volunteer work since 2008, calling on Results & progress in 2019
­supported individuals/groups as well as changes within act as role models and ambassadors for volunteering. employees to get involved year-round in projects that serve
the company as a result of activities local needs. An online platform allows staff to share their In the year under review, we developed target-group-specific
Today, more than 100,000 employees Group-wide devote volunteering experiences, recruit others to join them, and workshops to help employees better understand our
This information is based on prior-year results, since the data time outside work to volunteering in climate protection pro- report the results of their activities. We are seeing steady ­approach and develop and realize their own volunteer­
required by the LBG model will be available only after the jects, disaster relief efforts, refugee aid, or helping young growth in both the number of volunteer hours and the projects and activities. Associated communications and
external review of the current report has been completed. people improve their job and career prospects. This volunteer ­diversity of volunteer projects. ­additional tools help support employees and make it as easy
as possible to get involved. Over 114,000 employees
­volunteered around 230,000 hours in around 3,100 projects.
The Living ­Responsibility Fund supported 120 employee
­projects from 44 countries in 2019.

Activities as measured by the LBG in 2018 Volunteering in 2019

Employee volunteers: 114,239


70% Investment
in local communities

2,607 Employees
23% Commercial
set up projects and
initiatives
functioned as ambassadors

7% Monetary donations

72,422 Employees 39,210 Employees


got involved in projects made donations
80 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 81

Disaster management Optimizing airport procedures (GARD) conduct workshops on their own. The goal of this train-­­the- Results & progress in 2019
In cooperation with the United Nations Development trainer approach is to achieve nationwide airport prepared-
Our Group-wide GoHelp program has two main focus areas: ­Programme (UNDP), we conduct multi-day workshops ness in countries at higher risk of natural disaster. Since In the year under review, GARD workshops were held in
­on-site for airport personnel and local disaster management launching GARD ten years ago, we have held 51 workshops in ­Honduras, Iraq, Madagascar, Nepal and Peru, including the
n Get Airports Ready For Disaster (GARD): We develop organizations to evaluate existing logistics procedures and 26 countries with over 1,200 participants. analysis of emergency response plans for 5 airports. A total
­procedures and emergency response plans at airports in improve airports’ capacity for processing and dispatching of 151 people took part. Our DRTs were deployed on two
disaster-prone regions to rehearse for, and avoid large volumes of incoming relief workers and supplies. Help within 72 hours (DRTs) ­occasions:
­relief-supply bottlenecks in the event of natural disasters. In cooperation with the United Nations Office for the
During these workshops, our air freight experts act as ­Coordination of Humanitarian Affairs (UNOCHA), we have n April 2019 – Cyclone Idai, Mozambique: This was the
n Help on the ground from Disaster Response Teams ­trainers, helping participants analyze their emergency established Disaster Response Teams (DRTs) based in the first time one of our DRTs saw action in an African
(DRTs): Our DRTs provide timely support in the wake of ­response plans and develop ways to increase airport capacity, Americas, Middle East/Africa, and Asia Pacific regions. This ­country. Twelve employees spent almost three weeks
natural disasters, handling a range of logistics tasks at including avoiding bottlenecks in the event of relief efforts. network allows us to provide disaster-response coverage to volunteering on the ground, working in three rotating
airports and coordinating the transfer of relief supplies Workshop results are then submitted to the United Nations approximately 80% of higher-risk countries. teams to process some 800 tonnes of relief
to local relief organizations. for inclusion in its national and regional emergency response supplies at Beira Airport.
plans. Progress can be reviewed roughly six to twelve months If called upon by the United Nations, our DRTs can be
Our employees receive specially targeted training in prepara- later in follow-up workshops. ­deployed within 72 hours to manage the logistics of incoming n September 2019 – Hurricane Dorian, the Bahamas: ­
tion for their deployments and the situation on the ground. relief supplies (unloading, inventory and storage) at airports, As part of the relief effort following the category 5 hur-
Every two years, we survey employees on the effectiveness of Due to a growing number of requests to include regional ensuring their efficient transfer to local relief organizations. ricane, employees from Florida, Colombia, Panama and
our GoHelp activities. The 2019 survey revealed an approval ­airports in our preparedness program, we have begun Urgently needed supplies such as food, cooking utensils and Puerto Rico volunteered their time and processed
rating of 95%. ­training local airport experts as GARD trainers, who can then medical supplies are sorted and packed at the airport into around 275 tonnes of relief supplies for dispatch to help
waterproof polypropylene bags known as Speedballs, which those affected.
can then be airdropped over remote areas.

Disaster management in 20191 We prepare our logistics experts for both the physical and
Donations from colleagues for colleagues
psychological challenges of DRT deployments with special
Our internal relief fund “We Help Each Other” (WHEO) pro-
courses that realistically simulate disaster-response
vides employees with a channel to donate money and show
­workflows under difficult conditions. 1,500 employees have
their support for colleagues and their families who have been
undergone such training since the launch of the program.
affected by natural disasters. 34 employees benefitted from
the fund in 2019: 24 in Mozambique, 7 in the USA and 3 in
the Bahamas. “We Help Each Other” has come to the aid of
1,900 employees since it was founded.

DRT deployment, Bahamas GARD workshop, Iraq


DRT base, Dubai GARD workshop, Nepal

GARD workshop, Honduras DRT base, Panama


DRT base, Singapore
DRT deployment, Mozambique

GARD workshop, Peru

GARD workshop, Madagascar

1) Bilateral framework agreements reached to provide disaster management support in: Chile, El Salvador, Guatemala, Peru. Asia Pacific: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Thailand, Vietnam. Other regions: Turkey.
82 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 83

Improving employability Partnership with SOS Children’s Villages


Our global cooperation with SOS Children’s Villages now
ENVIRONMENT
Our Group-wide GoTeach program supports young people ­covers 48 countries. A further six countries were added in the
living in disadvantaged socioeconomic circumstances as a year under review. SOS Children’s Villages uses our support
result of poverty, loss of family or being forced to flee their measures as a blueprint to develop similar programs for 84 Environmental matters 95 Green products
country. Helping them discover their strengths and build young people around the world. Our YouthCan! program was
­self-confidence gets young people off to a better start and founded as part of a joint initiative with SOS Children’s
­encourages them to set and achieve career goals. We also ­Villages. It has already helped us recruit additional companies 85 Climate & environmental 95 Training & reforesting
provide young people with first-hand exposure to the to become involved in business partnerships – and we hope ­protection
­working world. Our employees volunteer their time to the to recruit even more.
projects, sharing their experience and expertise to familiarize 96 Other environmental aspects
participants with the demands the workplace can bring. As Autonomy through integration 88 ­Carbon efficiency & fuel
part of activities focused on career guidance and basic We work together with Germany’s Federal Employment ­consumption
­professional skills, volunteers function as mentors, trainers Agency and numerous other partners to promote refugee
or internship supervisors and help participants develop the integration, primarily in Germany. In recent years we have
professional skills they will need later on. also initiated pilot projects with partners outside Germany 93 Reducing air pollution
and are now investigating how we can incorporate offerings
for young refugees into existing programs. In 2018, we also
“EQUAL OPPORTUNITIES AND started supporting the UNHCR initiative #WithRefugees.
COMPETITIVENESS ARE OUR
Since launching our refugee aid initiative in Germany in 2015,
GOALS.” we have signed employment contracts with 11,000 refugees,
with 246 currently in apprenticeships. The volunteering
Dr. Frank Appel ­activities undertaken by our employees focus on long-term
CEO projects, such as our mentoring programs.

Our activities in this area rely on global partnerships with


Results & progress in 2019
Teach For All and SOS Children’s Villages. Not only do our
In the year under review, over 2,100 employees took part
partners benefit from the commitment of our employees but
in the GoTeach program, reaching out to and supporting
also from our financial support. We now operate in 56 coun-
­roughly 11,000 children and young people in the process.
tries around the world in cooperation with 67 partner organi-
In our yearly GoTeach employee survey, 89% of survey
zations. In 11 of these countries we work together with both
­participants confirmed the program’s positive impact
SOS Children’s Villages and national Teach For All partners.
on ­society.

Partnership with Teach For All


Around 4,200 refugees from Eritrea, Iran, Iraq, Somalia and
We have been collaborating with the Teach For All global
Syria have received an employment contract, and around
­network since 2010 and support its partner organizations in ­
90 an apprenticeship contract.
19 countries. In the year under review, we expanded our
­partnership to seven additional countries.
84 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 85

ENVIRONMENT Climate & environmental protection


Environmental matters The transportation sector is responsible for roughly 7.5 giga- We also help customers and transportation partners reduce
tonnes of carbon emissions – about 14% of greenhouse gas their own environmental impact with eco-friendly products – ­
The ongoing boom in e-commerce and the corresponding Measures & KPIs emissions worldwide. 0.4% of this figure can be attributed to our GoGreen services. Page 95
growth in demand for transportation solutions is an important The Carbon Efficiency Index (CEX) – which has been defined as our business operations, which is why we have been design-
driver of global trade today. While this trend is good for our a management indicator under GAS 20 – is calculated on the ing and implementing climate and environmental protection As a pioneer in sustainable logistics, we are involved in a
business, we also recognize that our activities impact the basis of specific emission intensity figures for each business measures for more than 15 years and have helped lead the number of industry initiatives working to establish measure-
­environment and the climate around the world, particularly in unit. Greenhouse gas emissions are calculated using interna- way towards a green, sustainable future for logistics. ment standards for greenhouse gas emissions and promote
the form of greenhouse gas emissions. To minimize this im- tionally recognized standards such as the Greenhouse Gas ­Together with our stakeholders, we identified two main the development of sustainable alternative fuels such as
pact, we have defined targets and implemented measures to Protocol (GHG Protocol). When calculating the CEX, we also ­action areas for the Group in the climate and environment ­biofuels and e-fuels. Page 91
help protect the environment and climate. These targets and include emissions generated by our transportation subcontrac- area: energy efficiency and climate change, and air pollution.
measures are also embedded in our Code of Conduct, our tors (GHG Protocol Scope 3). The Group target that has been derived from this is an ambi- Our programs and partnerships support the United Nations’
Supplier Code of Conduct, and our Environmental and Energy tious one: to reduce all logistics-related emissions to net zero Sustainable Development Goals (SDGs).
Policy. This provides employees across the Group with clear Results & objectives by the year 2050. This is our contribution to helping the
guidelines on how they can contribute to achieving our climate Expanding our use of electromobility remains our core focus world community reach the two-degree goal established at
and environmental targets. area, and also extends to our road fleet outside Germany. We the COP 21 climate conference.
also continued modernizing our air fleet in the Express division
Policies (also GRI management approach) and further explored the use of sustainable synthetic fuels in We have set interim targets for 2025 for both of these action
The core elements of our approach are as follows: Reducing our fleets. areas on our way to achieving zero-emission logistics by
dependence on fossil fuels and promoting the use of alterna- 2050. Additional focus areas include certifying our employ-
tive fuels/energies in our fleets and buildings. Designing and In the year under review, we improved efficiency by a further ees as GoGreen environment and climate experts, and
implementing policies to reduce emissions, improve fuel ef- two percentage points to 35% over the 2007 baseline. This ­reforestation.
ficiency and increase our use of alternative fuels as part of our was largely due to efficiency gains both in ocean and road
Group-wide GoGreen program. In line with the GHG Protocol, freight within our Global Forwarding, Freight division, and in
Mission 2050 and interim targets for 2025
these measures target both our direct and indirect carbon road transportation in the Supply Chain division. The use of
emissions. Deploying innovative pick-up and delivery solutions green electricity at sites in our Express and Supply Chain
to reduce the impact of our business on air quality, especially ­divisions also contributed to this improvement. Our target for
in urban areas. This also reduces energy costs, anticipates 2025 is to improve the energy efficiency of our transports by
­possible legislative changes, and helps ensure the stability of 50% compared to our 2007 baseline.
our business in the future. Increase carbon efficiency by 50% Operate 70% of our own first and last mile
Efficiency principle and target over 2007 levels services with zero-emission solutions
Our carbon emissions and central KPI Carbon Efficiency Index
(CEX) are tracked by our internal management information
system. Our GoGreen Sponsors Board – headed by the CEO – Transportation services
convenes regularly so that Group divisions can provide updates +50% Net zero emissions by 2050
on their progress in implementing climate/environmental Efficiency
gain
­protection measures and on meeting their targets. Quarterly
business review meetings are used to discuss not only
­operational trends, but also changes in our environmental 2019 TARGET 2025
Certify 80% of our employees as Join partners in planting one million
KPIs. Any deviations from planned targets are discussed and
2007 Emissions GoGreen specialists trees every year
appropriate solutions are identified and resolved. Topics that
are particularly important to our environmental targets are
also regularly ­discussed in Board of Management meetings.
Information on additional activities beyond the mandatory disclosures required by
the German Commercial Code (HGB) can be found in the rest of this chapter.
86 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 87

Realizing environmental targets across commercially viable. Our fleets also use liquid biofuels that, as ISO-certified sites in 2019 We also continued to make progress towards our other
the Group specified in our Biofuel Policy, do not negatively impact local
Total: 12,613
­interim targets.
food ­production in the countries where they are produced.
Our Code of Conduct establishes climate and environmental 6,401 n We have submitted our economic target – to have more
6,028
protection as a core action area, while more detailed mea­ Management system provides framework for action 5,275 5,091 than 50% of our sales incorporate green solutions by
sures are specified in our Environmental and Energy Policy. An environmental management system based on ISO stan­ 2025 – for review, particularly in light of current devel-
Above and beyond this, it goes without saying that the Group dards 14001 (Environment) and 50001 (Energy) creates a opments at EU level, such as the push to establish a
always acts in accordance with applicable environmental uniform framework for thinking and acting “green” at our ­taxonomy of green products. Based on the results of this
laws and regulations. Additional corporate policies supple- sites, and helps us implement our Group-wide policies. review, we will decide on our next steps over the course
ment our Environmental and Energy Policy, including our: ­Decisions on obtaining external certification of our sites are of 2020. The method used so far to calculate the
based on business relevance, consumption figures, the ­economic target is described in greater detail in last
n Investment Policy: This requires new acquisitions to be ­existence of standardized processes, and strategic impor- Uncertified 14001 50001 Dual certification year’s report. Corporate Responsibility Report 2018, page 99
demonstrably more carbon efficient than existing assets. tance. Where we run a facility on behalf of a customer, the
Every new investment proposal must include calcula- latter decides whether or not it should undergo certification. n To meet our people target – we aim to certify 80% of our
tions demonstrating this. employees as GoGreen specialists – we rolled out the
Targets and progress in the year under review
We operate a total of some 12,600 sites around the world. In GoGreen curriculum across the Group in the year under
Our Mission 2050 includes interim targets for 2025. In the
n Green Electricity Policy: The primary source of electric- the year under review, 7,338 of them – or 58% (2018: 68%) – review. The first foundation module training courses
year under review, the following progress was made towards
ity throughout the Group is green power, i.e., electricity were certified according to at least one of ISO standards have already been held and we aim to make them
the latter:
from renewable sources. 14001 and 50001. The decrease from the previous year was ­available to employees in all the major languages by the
mainly due to the reorientation of, and associated organiza- end of 2020.
Exceptions can be made if this is not available in the markets tional changes in, our post and parcel ­business in the year
Energy efficiency & climate protection
in sufficient quality or quantities, or if its application is not under review. Page 24 n As part of our forest conservation efforts, we will join
partner organizations in planting one million trees per
Improve carbon efficiency (CEX) by 50%
year through 2025. More than three million trees have
compared to the 2007 baseline by 2025
Environmental and climate protection measures in 2019 already been planted since 2017.

Target for 2019: Improve CEX by at least


one index point
Europe
Status: Achieved Page 90
>11,100 Vehicles1, including 15 in
Germany and 24 in the
Target for 2020: Improve CEX by at least
United Kingdom fitted
with photovoltaics one index point
Americas
Asia Pacific
1,100 Vehicles1 87% Green electricity
40 Vehicles1, including 6 fitted
94% Green electricity with photovoltaics
1,456,000 Trees2 65% Green electricity
Air pollution
Other regions
Offset projects1: 875,000 Trees2
12 Trucks1 fitted with photovoltaics Operate 70% of our first and last mile services
Energy from compost, Brazil
Offset projects1: with zero-emission solutions by 2025
Electricity from waste, Chile 751,000 Trees2 Wind power plant, India
Water filters, Guatemala
Offset projects1: Hydroelectric power plant, Laos
Target for 2019: Continued expansion
Well rehabilitation, Eritrea Small biogas plants, Vietnam
of ­electromobility
Stoves replace firewood, Lesotho
Status: Achieved Page 93

Target for 2020: Continue to expand our use of


zero-emission solutions
1) Not included in the review. 2) Trees planted since 2017.
88 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 89

Carbon efficiency & fuel consumption Our efficiency principle Emissions & fuel consumption
The ongoing heavy demand for transportation solutions, due
As a global logistics company, we operate our own fleets and Sustainable subcontractor management in large part to the boom in e-commerce, is also reflected in Carbon emissions declined slightly in the year under review.
buildings around the world, and rely on additional capacity Our environmental targets are embedded in our Supplier our carbon emissions and fuel consumption. By improving A total of 28.95 million tonnes CO2e could be attributed to
provided by transportation subcontractors. 86% of Code of Conduct, which is a mandatory component of all efficiency, we can decouple the link between increased logis- our logistics services – down 2% from the adjusted prior-year
­greenhouse gas emissions produced by the Group and its Group contracts with subcontractors. We work closely with tics services volumes and increased greenhouse gas emis- figure of 29.46 million tonnes CO2e. At 6.59 million tonnes
transportation partners are attributable to air and road them on climate-friendly transportation solutions. Subcon- sions. The baseline and reference value for carbon efficiency CO2e, direct emissions from our own operations (Scopes 1
­transportation. However, energy consumption in our tractor management plays a particularly large role in our calculations is the ratio of greenhouse gas emissions to logis- and 2) amounted to 23% of total CO2e. Total carbon emissions
­buildings and facilities also contributes to greenhouse gas Global Forwarding, Freight division, where we do not operate tics services in 2007, with 2007 being considered to have a included 0.1 million tonnes CO2e attributable to our
emissions. We are addressing these impacts with a compre- any large fleets of our own, but primarily broker load capacity zero efficiency. ­employees’ business travel. Page 106
hensive efficiency management system and innovative on behalf of our customers, and partner with airlines,
­technologies, and by continually investing in modernizing our ­shipping companies, freight carriers and rail companies. Here The bulk of greenhouse gas emissions are calculated auto- n Scope 1 emissions increased by 1% to 6.38 million
fleets and buildings. New acquisitions of transportation are two examples: matically via our financial systems and the results serve as tonnes CO2e (2018: 6.30 million tonnes CO2e). This was
­vehicles or building technologies must meet our GoGreen the basis for our internal and external reporting. Calculations largely due to growth in our Express division’s air freight
minimum standards for heavy transports and buildings. n We use “carrier scorecards” to integrate air and ocean are based on guidelines provided by the Greenhouse Gas business.
Proof of compliance with these standards must be submitted freight subcontractors with our environmental efficiency Protocol, the Global Logistics Emissions Council, the
with applications to the Investment Committee and reviewed measures and systematically evaluate their environ- EN 16258 standard and the requirements outlined by the n Scope 2 emissions decreased by 22% to 0.21 million
in accordance with the Investment Policy. mental performance. At the customer’s request, we give European Emissions Trading System (ETS). In line with this, tonnes CO2e (2018: 0.27 million tonnes CO2e). This was
preference to providers with stronger environmental we do not include compensation via CO2 emissions certifi- due in part to the increased use of renewable energy,
performance when selecting a carrier. cates in our calculations. Subcontractor emissions are includ- especially in our Express, Global Forwarding, Freight and
BURN LESS AND BURN CLEAN ed using calculation models derived from the same stand- Supply Chain divisions.
n In Sweden, we offer customers the option of supporting ards. Efficiency gains are measured using the CEX, which is
climate-friendly transportation for a small surcharge. based on specific emission intensity figures for each business n Scope 3 emissions decreased by 2% to 22.36 million
Our dual strategy of reducing energy/fuel consumption Each time this option is requested, we use sustainable unit. tonnes CO2e (2018, adjusted: 22.89 million tonnes
(“burn less”) while increasing the use of alternative drive technologies or fuels to move goods a corresponding CO2e). This is a reflection of lower air freight volumes
­systems and sustainable fuels (“burn clean”) helps reduce distance (tonne-kilometers) within our Swedish and improved ocean freight efficiency in our Global
our dependence on fossil fuels and increase our carbon ­transportation network. Using insetting in this way ­Forwarding, Freight division – and was sufficient to
­efficiency. rather than an offsetting solution allows us to reduce ­offset the in­crease in emissions at Express.
emissions in our own business. In this context, trucks
We believe that sustainable synthetic fuels will play a key equipped with climate-friendly technologies and work-
role in the years ahead. Equally, we are well positioned to ing on behalf of DPDHL Group have covered a distance
react to future regulatory changes and manage our cost equivalent to circling the globe 800 times. (Total) carbon emissions by source in 2019 CO2e emissions (million tonnes)
structure, considerations which will contribute to the stability
Total: 28.95 million tonnes CO2e
of our business over the long term. 65% Air transportation 22.52 22.89 22.36
20.97 20.81

21% Road transportation

Scope 3
12% Ocean transportation
USE PACKSTATIONS TO REDUCE
6.05 6.05 6.34 6.57 6.59
Scopes 1
and 2
DELIVERY TOURS AND EMISSIONS 2% Buildings 2015 2016 2017 20181 2019

1) Adjusted.
90 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 91

Emission intensity (the ratio of Scope 1 and 2 emissions to Carbon Efficiency Index (CEX) in 2019 We recorded a further increase in Express transportation Modern, efficient road fleet (not included in the review)
Group revenue) was 103g CO2e per € revenue (2018: 107g volumes in the reporting year, resulting in higher fuel Our road transportation operations rely on our own fleet of
CO2e per € revenue). Total emission intensity (Scopes 1–3) ­consumption and carbon emissions. We were unable to offset around 103,600 vehicles worldwide, including some 12,900
Group 35 15 Target 2025: 50%
was 455g per € revenue (2018: 479g per € revenue). this increase despite the positive effects of improved route with alternative drive systems. We implement any one of
and network optimization. At 19,032 million kWh, fuel many different efficiency measures – or a combination of
Post & Parcel 41
Continuous improvements in efficiency Germany ­consumption in 2019 was 2% higher than the previous year several of them – to achieve efficiency gains, based on factors
We improved efficiency by 2 percentage points in the year (2018: 18,598 million kWh). Air transportation operations such as the requirements profile, vehicle type and route.
under review to a total of 35% above the 2007 baseline. This Express 38 generated 4.94 million tonnes CO2e (2018: 4.82 million
was achieved mainly through efficiency improvements in our tonnes CO2e), accounting for 75% of our Scope 1 and Scope 2 Road fleet by vehicle category1
Global Forwarding, 30
Global Forwarding, Freight and Supply Chain divisions. Freight CO2e emissions. Page 105
Total: 103,573 vehicles

n Post & Parcel Germany: The CEX was up 2 index points Supply Chain 42 Aircraft1 by nitrous oxide (NOx) emissions standards2, 3
72% Vans
over the prior-year figure, largely due to the decline in
eCommerce
the percentage of import and export volumes in the mail Solutions 24
business. 219
214 11% Cars
n Express: Efficiency remained at the prior-year level due 50 55

to increased use of renewable energy at our sites. Efficiency gains in fleets & buildings
n Global Forwarding, Freight: Efficiency gains in both our In addition to continually modernizing our fleets and 85
88 17% Trucks
ocean freight and road freight businesses combined to ­increasing our use of renewable energy, we actively promote
push the CEX 2 index points higher than in the prior year. ­e-mobility and are engaged in a variety of initiatives to CAEP/8 
40 34
CAEP/6 
­promote the development and use of alternative, sustainable 1) Not included in the review.
12 13 CAEP/4 
n Supply Chain: The CEX improved by 3 index points fuels. We are also involved in local noise abatement 29 CAEP/2 
27
thanks to greater use of renewable energy in our ware- ­initiatives. In the year under review, we published a position Uncertified Technological innovations in the field of aerodynamics, light-
houses and improved efficiency in distribution from paper on the use of sustainable synthetic fuels. The paper 2018 2019 weight vehicle design, speed limiting systems and low rolling
warehouse to customer. aims to stimulate public debate and highlight the fact that resistance tires are helping us reduce fuel consumption in our
Dedicated aircraft (jet aircraft) in the Express division. 2) NOx emissions.
this new generation of fuels is currently the only alternative 3) Not included in the review. conventional fuel vehicles. We also rely increasingly on alter-

n eCommerce Solutions: At 24 index points, the CEX for achieving real reductions in greenhouse gas emissions in native drive systems and fuels. The primary focus here is on
remained at the prior-year level. air and ocean freight in particular. During the year under electromobility for short-distance transportation. For long-
Aircraft1 by noise standard2
­review, road transportation fuel consumption fell to haul transportation, we are testing the use of sustainably
By the end of 2020, we want to improve our CEX score by at 4,442 million kWh (2018: 4,592 million kWh) as a result of produced biofuels and LPG drive systems. For heavy
least one additional index point, to 36%, by year’s end. By ­efficiency measures. Page 105 ­transports, i.e., trucks with a gross vehicle weight of over
214 219
2025, our goal is to achieve an efficiency improvement of 50% 7.5 tonnes, we have defined minimum standards across the
compared to the 2007 baseline. Air fleet upgrade continued 49 59
Group.
We continued upgrading our fleet of 260 dedicated cargo
aircraft, which includes smaller feeder aircraft, in the year We also achieve efficiency gains through intelligent network
under review. In 2019, four of the 14 aircraft ordered in and route planning, and the use of alternative modes of
2018 to replace older planes were put into service. These 130 130 ­transportation. Increased digitalization means that recording
will generate roughly 18% less carbon emissions and data via sensors and apps is becoming easier and easier,
­contribute to improved fuel and emissions efficiency. The ­further improving our ability to connect logistics chains across
Chapter 14
next six aircraft are scheduled to be operational in 2020. Chapter 4
continents and optimize processes.
35 30
Chapter 3
2018 2019

1) Dedicated aircraft (jet aircraft) in the Express division.


2) Not included in the review.
92 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 93

Green electricity reduces share of emissions from Examples (not included in the review): Reducing air pollution As part of our City Hub solution, Express division couriers use
buildings n In Panama, photovoltaics provide 82% of the energy cargo bikes to pick up and load pre-sorted delivery containers
Just 2% of our overall CO2e emissions can be attributed to the required at one of our sites. In 2019, this led to Burning fossil fuels results in local air pollutants such as at central points. The concept has already been successfully
approx. 12,600 sites we operate worldwide. This is primarily 65 tonnes CO2e emissions being saved. ­mono-nitrogen oxides (NOx), sulfur dioxide (SO2) and deployed in numerous European cities.
due to the increased use of new building technologies and ­particulate matter (PM10), which negatively impact air quality,
the high percentage of green electricity used. We also train n Tampere, Finland is the site of our first zero-emission especially in urban areas. Our business model bears a share Zero-emission delivery in Germany in 20191
our employees how to use the technologies so that they can facility, which combines state-of-the-art photovoltaics of this responsibility, which is why we want to minimize air
No. delivery districts: 68,091
play an active role in helping us conserve resources. with geothermal systems for heating and cooling. pollution with zero-emission solutions such as pick-up and
delivery by foot, bicycle and electric vehicle. 4% Delivery on foot
Green electricity already meets 83% of our total electricity n Our logistics center at Cologne-Bonn Airport in Germany
demands across the Group and meets our requirements uses an ice energy storage system with a holding capac- By 2025, we want to reduce local air pollution emissions by
­almost entirely in 27 countries. We will continue to increase ity of over 1.3 million liters for heating and cooling. Used operating 70% of our own first and last mile services with 22% Delivery by bicycle
our use of green electricity where this is commercially viable in combination with a heat pump and photovoltaics, this zero-emission solutions. This applies exclusively to our own
and it is available in sufficient quality/quantities in the system is also entirely emissions free. services (GHG Protocol Scopes 1 and 2). We continuously
­markets concerned. optimize our pick-up and delivery routes, with increased
focus on delivery by foot, bicycle, or full or partial
15% E-vehicles
Energy consumption in our buildings and facilities was ­ ­e-mobility. In the year under review, the percentage of
3,139 million kWh in the year under review such pick-up and delivery solutions was already at 33%. As
(2018: 3,194 million kWh) – around 2% down on the prior- planned, we rolled out e-mobility solutions outside ­Germany 59% Other
year level. We were once again able to avoid 0.54 million as well. In 2020, we will continue to expand our use of
tonnes CO2e ­emissions (2018: 0.53 million tonnes CO2e), ­zero-emission solutions for first and last mile ­services.
primarily through the use of green electricity. Page 105 1) Post & Parcel Germany in 2019.
Zero-emission delivery
In our Post & Parcel Germany division, we already use some
27,000 bicycles, including 13,000 e-bikes and 235 cargo
bikes, for pick-up and delivery operations. In the year under
review, we added 1,500 new e-bikes to our bicycle fleet.
Fleet: Group energy consumption in 2019 Buildings: Group energy consumption in 2019

Total: 23,519 million kWh Total: 3,139 million kWh


StreetScooter in figures1
53% Electricity
of which
3% LPG n 10,802 StreetScooters
81% Kerosene 83% Green electricity1
n 14,460 charging stations
6% District
n 120 million kilometers driven
heating2
n Carbon savings of 39,600 tonnes

1) Not included in the review.


8% Heating oil

18% Diesel

1% Gasoline

< 1% Gas & biofuels


30% Natural gas

1) Countries in which nearly all electricity needs are met: Argentina, Belgium, Brazil, Canada,
Columbia, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Mexico,
Netherlands, Norway, Philippines, Puerto Rico, Singapore, South Africa, Sweden, Taiwan,
Thailand, Turkey, UK, USA, Vietnam. 2) Incl. district cooling.
94 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 95

By replacing a conventional delivery van, a single Cubicycle Examples (not included in the review): Green products n Enabling the circular economy: This product is continu-
electric cargo bike can save up to 8 tonnes CO2e per year. The n Electric trucks: We are already piloting 6 electric trucks ing to gain in importance as part of our green optimiza-
year under review also saw Cubicycles introduced to Dublin, (up to 7.5 t) in Germany and 3 heavy-duty electric trucks We offer our customers a range of green products that help tion process. Our DHL Envirosolutions product portfolio
Rotterdam, G ­ roening, Frankfurt, Copenhagen, Turku and Vi- (12 t) in the Netherlands. them understand their environmental footprint and give helps customers develop solutions for reverse logistics
enna, where they help reduce noise pollution and take some them the option of minimizing that impact by using alterna- and waste management logistics, and to meet extended
of the ­pressure off the parking problem in cities. n Photovoltaics powering onboard electronics: We are tive modes of transportation or offsetting emissions. We also producer responsibility requirements. In one project we
fitting vehicles and trailers with two-millimeter thick offer comprehensive consulting services to help customers are working on reducing single-use plastic in the supply
solar mats developed by TRAILAR, a start-up founded by optimize efficiency across their supply chains. chain, and implementing sustainable packaging
ONE CARGO BIKE CAN SAVE UP Group employees. Over 500 trucks have already been ­solutions. In Brazil, our Express division already offers
Our product portfolio
TO 8 TONNES OF CARBON fitted with the mats, which can save up to 4.5 tonnes of
carbon emissions per vehicle per year and reduce fuel Our mix of standardized and customized products helps
its major customers reusable and recyclable solutions
for pallet transportation consisting of durable nets with
EMISSIONS1 PER YEAR consumption by up to 5%. In 2020, TRAILAR will launch ­customers achieve their own climate targets and make their hooks to hold goods on the pallet. This solution is now
on the international market. supply chains greener. also being tested by the Supply Chain division at a
­warehouse belonging to one of its major customers in
Increased proportion of alternative drive systems (not We continuously upgrade our conventional vehicles in n Carbon Reports: As a service to our customers, we the Czech Republic.
included in the review) ­accordance with the latest emissions standards. By ­measure the greenhouse gas emissions resulting from
We already use 13,532 vehicles with alternative drive ­optimizing pick-up and delivery routes, we also help m
­ inimize the transportation and logistics services we provide to
­systems within the Group, including 11,610 electric vehicles. the impact on air quality in urban areas. 80% of vehicles in our them, and make this information available in various Training & reforesting
As there is still no single solution for significantly reducing conventional road fleet were compliant with Euro 5 or Euro 6 formats.
fossil fuel consumption or avoiding emissions in logistics, we standards, or were entirely emissions-free (ZEVs). Page 108 We believe that employee engagement can make a key
are testing and deploying a number of promising alternative n Climate neutral products: Customers can offset their ­contribution to realizing our environmental targets. We plan
technologies and measures in our fleets and at our sites, transportation and logistics-related greenhouse gas to certify 80% of our employees as GoGreen specialists by
including electric vehicles up to and including plug-in hybrids emissions with Gold Standard certified climate projects. 2025 so as to actively involve staff in our environmental and
for short trips and fuel cell vehicles and vehicles powered One example of this is our own climate protection pro- ­climate protection activities. We are also engaged in forest
by sustainable liquid fuels such as biodiesel over longer ject in Lesotho. In the year under review, we transported conservation, and will be planting one million trees a year
­distances. some two billion climate neutral shipments, which we through 2025 together with recognized partner
estimate would have required an offset of around ­organizations.
270,000 tonnes CO2e (2018: 250,000 tonnes CO2e). The
review was concluded after the publication date of this Becoming a GoGreen specialist
report. Our own climate project in Lesotho generated Our GoGreen Certified training for employees is designed to
some 30,000 CO2 emissions certificates in 2019. The not only enhance their basic theoretical understanding of
Alternative drive systems in 20191 Vehicles by emission class in 20191
project has already saved around 150,000 tonnes CO2e environmental protection, but also empower them to support
Total: 103,573 Vehicles Total: 75,638 Vehicles2 since its launch in 2012. the Group’s environmental targets in their daily work. The
9,114 11,161 curriculum consists of a foundation module plus additional
6,040
4,592
43,640
8,701 12,613
17,321 19,671
THE LESOTHO PROJECT OFFSETS optional modules focused on the individual divisions and
their respective requirements. By year-end, around 20,000

11,610  E-drive systems


39,542
36,768
35,173
150,000 t OF CARBON EMISSIONS employees had successfully completed the foundation
33,688
­module. In 2020, the modules will be made available to
680 Natural gas Group employees in the most frequently used languages.
n Green optimization: Our experts analyze our customers’
880 Hybrids2
18,052 15,618 14,288 13,292
entire supply chains and generate tailored solutions for Over three million trees already planted
11,118
them – from designs for multimodal logistics networks Forests support and protect both people and the
to warehouse logistics solutions. Along with the envi- ­environment in diverse ways. Capturing CO2 from the air to
2015 2016 2017 2018 2019
ronmental benefits, these analyses also help identify mitigate greenhouse warming is one of the many ecosystem
Zero-emission vehicles (ZEVs) Euro 6  Euro 5  Euro 4
cost-savings potential. services they provide. The majority of the trees used in our
1) Not included in the review. 2) Including 71 dual-fuel drive systems. 1) Not included in the review. 2) Comprises the largest vehicle fleets in areas covered by the
Euro emissions classifications.
96 2019 SUSTAINABILITY REPORT

reforestation efforts will be planted by our partner


­organizations – recognized charities, NGOs and national
n Natural resources: We use only recycled paper products
where these meet our technical and economic require-
ANNEX
­forestry authorities around the world – since they are most ments. We are reducing our paper usage and packaging
familiar with local conditions and habitats. In the year under volumes to help lower demand for virgin paper and col-
review, employees once again joined with partner organi­ laborate closely with experts and customers in this area. 98 Employees 109 Financial information
zations to plant over one million trees, raising our total Water is used primarily for drinking and sanitation at our
­contribution so far to more than three million trees in facilities, and is obtained largely from municipal suppli-
support of global reforestation efforts. ers and discharged into public sewage systems. We 105 Environment 110 Assurance Report
implement measures to minimize water consumption as
part of our environmental management activities. For
Other environmental aspects new construction projects, we also look to install water 108 Corporate citizenship 112 Glossary & Index
recovery systems and water-efficient sanitary installa-
Issues such as noise pollution, waste, natural resources and tions where possible. As water consumption and dis-
biodiversity are not considered material issues by the posal are not among our material environmental issues,
­company or our stakeholders, since our business model we report only on consumption in Germany and do not
does not have a serious environmental impact in these areas. record data on Group-wide water usage. Page 108
We nevertheless consider these issues to be socially relevant,
and report on them briefly in this report. n Biodiversity: Our business operations generally do not
have a negative impact on conservation areas or endan-
n Noise pollution: Management at Group sites located in ger protected plant or animal species, since our sites are
or near residential areas works closely with residents predominantly located in urban areas or designated
and other stakeholders to ensure that any noise pollu- industrial and commercial zones. Nevertheless, our
tion we cause is kept to an acceptable minimum. Our business activity still has an impact on ecosystems
increased use of electric vehicles for pick-up and through greenhouse gas emissions, air pollution,
­delivery and the modernization of our air fleet is also resource consumption and other environmental factors.
helping to reduce noise pollution. This is why, for example, our Group-wide Policy on the
Usage of Liquid Biofuels also addresses biodiversity
n Waste and recycling: We try to avoid waste such as aspects in the countries where biofuels are produced.
transportation packaging or office-based paper waste Additionally, we support the United Nations’ Convention
whenever possible and take increasing advantage of digi- on Biological Diversity. Our terms and conditions
talization to do so. We also support materials recycling, ­explicitly prohibit the use of our network to transport
contributing to the circular economy. Maintenance and protected plant and animal species. We are a member of
decommissioning or scrapping of our aircraft, road the United for Wildlife Transport Taskforce. In Thailand
­vehicles and IT equipment is generally the responsibility in particular, we are involved in efforts to stop wildlife
of the manufacturer or other third-party providers. Our trade, and held a workshop on the issue to raise
maintenance and disposal contracts include explicit ­awareness among our employees.
requirements for compliance with environmentally-
friendly practices. Although waste is not considered a
material issue, waste separation is the standard proce-
dure at many of our sites. Waste is recorded and properly
disposed of under our local environmental management
systems. We also share our know-how with customers,
such as offering major customers in Brazil a reusable and
recyclable packaging solution for pallet transport.
98 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 99

ANNEX
EMPLOYEES Full-time equivalents (FTE)  GRI 102-8; SASB TR-AF-320a.1; TR-AF-540a.2, TR-AF-540a.3; Page 58

Employees (headcount)1 GRI 102-8; SASB TR-AF-320a.1; TR-AF-540a.2, TR-AF-540a.3; Page 58 2014 2015 2016 2017 20183 2019

Full-time equivalents at year end1


2014 2015 2016 2017 20182 2019
Group 443,784 450,508 459,262 472,208 499,018 499,250
Employees at year end
By region
Group 488,824 497,745 508,036 519,544 547,459 546,924
Europe 279,486 282,688 287,641 294,839 305,848 303,543
of which Hourly workers and salaried employees n. r. n. r. n. r. 483,927 513,770 516,467
of which Europe excl. Germany 108,890 109,646 113,104 114,360 118,745 117,748
Civil servants n. r. n. r. n. r. 29,694 27,805 24,926
Germany 170,596 173,042 174,537 180,479 187,103 185,795
Apprentices and trainees n. r. n. r. n. r. 5,923 5,884 5,531
Americas 74,573 76,666 79,347 82,887 90,648 94,696
Part-time employees (%) 18 18 19 18 18 17
Asia Pacific 71,216 72,723 73,979 76,081 83,561 80,135
By region
Other regions 18,509 18,431 18,295 18,401 18,961 20,876
Europe 322,440 326,979 333,080 339,521 351,429 348,604
By division
of which Europe excl. Germany 116,709 118,239 121,987 123,719 128,782 127,700
Post & Parcel Germany 166,342 170,549 177,307 183,430 160,354 158,713
Germany 205,731 208,740 211,093 215,802 222,647 220,904
Express 75,185 82,127 82,792 90,784 95,717 98,203
Americas 76,230 78,027 81,152 84,470 92,753 96,413
Global Forwarding, Freight 44,059 42,200 41,886 41,034 42,783 42,712
Asia Pacific 72,121 73,843 75,045 76,727 84,036 80,687
Supply Chain 146,220 145,032 146,739 145,575 155,954 156,836
Other regions 18,033 18,896 18,759 18,826 19,241 21,220
eCommerce Solutions - - - - 31,883 30,335
By division
Corporate Functions 11,978 10,600 10,538 11,385 12,327 12,451
Post & Parcel Germany 200,868 206,686 214,873 219,738 192,244 190,263
Full-time equivalents (annual average)2
Express 79,896 87,453 88,409 96,047 101,420 103,878
Group 440,809 449,910 453,990 468,724 489,571 499,461
Global Forwarding, Freight 47,079 44,737 44,283 43,438 45,412 45,426
By region
Supply Chain 148,329 147,650 149,279 148,201 158,419 159,430
Europe n. r. n. r. n. r. 292,374 303,621 305,333
eCommerce Solutions - - - - 36,897 34,795
of which Europe excl. Germany n. r. n. r. n. r. 114,400 117,054 117,822
Corporate Functions 12,652 11,219 11,192 12,120 13,067 13,132
Germany n. r. n. r. n. r. 177,974 186,567 187,511
Employees (annual average)
Americas n. r. n. r. n. r. 81,499 86,547 92,752
Group 484,025 492,865 498,459 513,338 534,370 544,282
Asia Pacific n. r. n. r. n. r. 76,419 80,563 81,429
of which Hourly workers and salaried employees 440,973 451,882 459,990 477,251 499,943 512,325
Other regions n. r. n. r. n. r. 18,432 18,840 19,947
Civil servants 37,963 35,669 32,976 30,468 28,718 26,296
By division
Apprentices and trainees 5,089 5,314 5,493 5,619 5,709 5,661
Post & Parcel Germany 164,582 169,430 172,717 179,345 159,032 159,100
By region
Express 73,009 79,318 81,615 86,313 93,550 96,850
Europe n. r. n. r. n. r. 334,868 345,918 347,779
Global Forwarding, Freight 44,311 44,588 43,060 42,646 43,347 44,265
of which Europe excl. Germany n. r. n. r. n. r. 123,270 126,229 127,480
Supply Chain 146,400 145,827 145,788 149,042 151,877 155,791
Germany n. r. n. r. n. r. 211,598 219,689 220,299
eCommerce Solutions - - - - 29,493 30,797
Americas n. r. n. r. n. r. 83,012 88,481 94,653
Corporate Functions 12,507 10,747 10,810 11,378 12,272 12,659
Asia Pacific n. r. n. r. n. r. 76,770 80,841 81,617

Other regions n. r. n. r. n. r. 18,688 19,130 20,233 n. r. = not reported. 1) Excl. apprentices and trainees. 2) Incl. apprentices and trainees. 3) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report.

By division

Post & Parcel Germany n. r. n. r. n. r. 215,303 189,814 189,490

Express n. r. n. r. n. r. 90,884 98,697 102,356

Global Forwarding, Freight n. r. n. r. n. r. 44,142 44,933 45,837

Supply Chain n. r. n. r. n. r. 151,230 154,034 157,656

eCommerce Solutions - - - - 34,237 35,866

Corporate Functions n. r. n. r. n. r. 11,779 12,655 13,077

n. r. = not reported. 1) Incl. apprentices and trainees. 2) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report.
100 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 101

Temporary external FTEs (with internal reporting lines) (annual average) GRI 102-8; SASB TR-AF-320a.1; TR-AF-540a.2, TR-AF-540a.3; Page 58 Employee age structure Page 58

Annual average 2017 20181 2019 20161 20171 20181 20191

Group 76,513 78,822 83,166 Average


Average employee age employee Percentage of employees
By region age
Europe 37,540 37,514 34,483 26 and under 27 and over 55 and over
of which Europe excl. Germany 32,473 33,138 30,446 Group 41 41 41 41 13% 70% 17%
Germany 5,067 4,376 4,037 By region
Americas 12,370 11,982 12,519 Europe 43 43 43 43 11% 66% 23%
Asia Pacific 23,789 26,456 33,514 of which Europe excl. Germany 41 41 41 41 12% 72% 16%
Other regions 2,814 2,870 2,650 Germany 45 44 44 45 11% 63% 26%
By division Americas 38 38 38 38 19% 70% 11%
Post & Parcel Germany 6,770 2,672 2,379 Asia Pacific 35 35 35 35 18% 78% 4%
Express 8,268 7,859 7,401 Other regions 36 37 41 37 10% 86% 4%
Global Forwarding, Freight 2,497 3,273 2,618 By division
Supply Chain 58,850 59,405 55,384 Post & Parcel Germany - 44 43 45 11% 62% 27%
eCommerce Solutions - 4,581 13,193 Express - 37 38 38 15% 78% 7%
Corporate Functions 127 1,031 2,190 Global Forwarding, Freight - 39 38 38 16% 73% 11%

Supply Chain - 39 39 39 16% 71% 13%


n. r. = not reported. 1) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report..
eCommerce Solutions - - - 44 0% 84% 16%

Corporate Functions - 44 43 46 7% 61% 32%


Employee turnover (%)  Page 60
1) Group coverage rate: 97% in 2017; 94% in 2016; min. 99% as of 2018.
2014 2015 2016 2017 20182 2019

Group 12.6 13.6 14.9 15.3 16.6 18.1


Generations Pact in Germany1: Employees with working time accounts2 and in partial retirement  Page 58
of which Planned employee turnover 6.1 6.6 7.3 6.8 7.4 9.1

Unplanned employee turnover 6.6 7.0 7.6 8.5 9.2 9.0 At year end 2014 2015 2016 2017 2018 2019

Employee turnover in management1 - - 6.7 6.4 7.4 9.6 Employees with working time accounts 18,788 20,404 25,724 28,030 29,481 32,616

Internal management placements1 86.9 81.1 78.3 80.8 78.7 82.8 Of whom Salaried employees 18,788 20,404 22,801 24,401 25,464 28,444

Unplanned employee turnover Civil servants - - 2,923 3,629 4,017 4,172

By region Employees in partial retirement 2,323 3,305 4,307 4,962 5,432 6,251

Europe 3.3 3.8 4.3 4.7 4.9 5.1 Of whom Salaried employees 2,323 3,305 3,718 3,886 4,115 4,929

of which Europe excl. Germany 8.2 8.7 10.0 10.8 10.9 10.8 Civil servants - - 589 1,076 1,317 1,322

Germany 0.6 0.9 0.9 1.2 1.5 1.8 1) Deutsche Post AG, principal company in Germany. 2) Lifetime working time accounts for civil servants.
Americas 15.6 15.7 18.8 22.8 25.3 22.7

Asia Pacific 11.5 11.9 10.4 10.5 11.0 10.5


Employees with disabilities in Germany1, 2 Page 58
Other regions 7.1 7.0 6.3 5.1 5.2 4.7

By division Annual average 2014 2015 2016 2017 2018 2019

Post & Parcel Germany 2.0 2.6 2.8 3.5 1.1 1.4 Employees with disabilities 14,741 15,149 15,456 15,534 15,610 15,382

Express 7.1 7.1 8.5 9.4 9.8 8.3 Percentage of total employees (%) 9.1 9.6 9.9 9.8 9.5 9.1

Global Forwarding, Freight 10.0 10.9 10.2 11.0 11.4 10.1


1) Deutsche Post AG, principal company in Germany. 2) In accordance with section 80 Sozialgesetzbuch IX (German Social Code IX).
Supply Chain 12.0 11.9 13.3 14.8 16.5 16.7

eCommerce Solutions - - - - 18.5 16.7

Corporate Functions 3.3 4.7 5.1 4.7 5.7 5.3

1) Upper and middle management. 2) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report.

102 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 103

Employees by gender at year end (%)  Page 58 Share of women in management  Page 59

2014 2015 2016 2017 20181 2019 2014 2015 2016 2017 20183 2019

Group at year end Governing bodies

Female employees 35.9 35.5 35.0 35.0 34.8 34.4 Board of Management1 14.3 14.3 14.3 14.3 14.3 12.5

Male employees 64.1 64.5 65.0 65.0 65.2 65.6 Supervisory Board2 35.0 35.0 40.0 40.0 35.0 35.0

Percentage of female employees Upper and middle management

By region Group 19.3 20.7 21.1 21.5 22.1 22.2

Europe 39.3 38.7 38.1 37.8 37.4 37.0 of which Upper management - 17.5 18.3 18.3 18.6 19.3

of which Europe excl. Germany 28.7 28.8 29.0 29.6 29.9 30.1 Middle management - 22.6 22.7 23.3 24.0 23.7

Germany 45.2 44.3 43.4 42.5 41.8 40.9 By region

Americas 30.2 32.0 31.7 31.4 31.8 32.5 Europe - 20.5 20.8 21.4 21.9 22.4

Asia Pacific 29.7 28.8 27.9 29.7 29.8 28.2 of which Europe excl. Germany - 20.3 21.0 21.5 22.3 23.0

Other regions 23.5 22.3 23.1 23.3 24.0 25.2 Germany 21.1 20.6 20.7 21.3 21.5 21.6

By division Americas - 19.7 20.3 20.8 20.9 20.6

Post & Parcel Germany 43.8 42.6 41.2 40.7 43.0 42.1 Asia Pacific - 23.4 23.6 23.4 25.2 24.7

Express 26.7 28.5 28.3 28.5 28.5 28.7 Other regions - 17.4 17.8 19.3 19.1 18.5

Global Forwarding, Freight 42.3 43.9 42.4 44.3 44.4 41.5 By division

Supply Chain 27.5 27.0 27.7 28.0 29.2 29.7 Post & Parcel Germany - 20.9 21.8 21.2 21.2 21.5

eCommerce Solutions - - - - 21.6 20.7 Express - 20.9 20.7 21.2 22.5 22.8

Corporate Functions 41.0 37.3 37.8 37.6 36.6 36.3 Global Forwarding, Freight - 19.6 20.5 21.6 20.5 21.0

Supply Chain - 19.6 20.5 20.5 21.6 21.1


1) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report.
eCommerce Solutions - - - - 23.7 21.5

Corporate Functions - 23.0 22.4 24.6 24.7 25.4


Results of the Group-wide Employee Opinion Survey (%) Page 69
1) Eight board departments in all; one female board member. 2) 20 members in all: 10 shareholder representatives, 10 employee representatives.
2015 2016 2017 2018 2019 3) Segment structure, note 9 to the consolidated financial statements, 2019 Annual Report.

Participation rate Group-wide 73 74 76 76 77


Approval rating by category Group-wide
Learning and development  GRI 404-1; Page 67

Employee Engagement (relevant for executive bonus payments as of 2019) 73 75 75 76 77 2014 2015 2016 2017 2018 2019
Active Leadership (relevant for executive bonus payments until 2018) 73 74 75 76 78 Time invested and satisfaction Group-wide
Customer Centricity & Quality 79 81 80 81 82 Total time invested Group-wide1 (million hours) 4.5 4.4 4.7 4.7 4.7 4.7
Future & Strategy 69 72 72 72 73 Training days per employee1 1.5 1.4 1.5 1.4 1.4 1.3
Communication 74 75 76 77 78 Training days per full-time employee2 (days)1 n. r. n. r. n. r. n. r. 1.2 1.2
Teamwork 83 84 84 84 85 Training offering satisfaction rate 3 71 79 81 81 82 83
Learning & Development 79 81 81 82 83 Costs for learning and development
Job Fulfillment & Workplace 77 78 78 79 80 Training costs per employee (€)1,2,4 150 149 143 155 152 153
Continuous Improvement 65 67 68 69 70
Training costs per full-time equivalent (€)1,2,4 166 165 159 172 168 169
Group Responsibility 75 77 77 78 79
1) Group coverage rate: 80% as of 2017, previously 76%. 2) Calculation based on headcount/ FTEs (annual average). 3) Corresponds to the Learning & Development indicator in the annual Employee Opinion sur-
Performance Enablement Index 80 81 81 81 82 vey. Participation rate: 77% (2019). 4) The costs were calculated in accordance with note 6 to the consolidated financial statements in the Annual Report.
104 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 105

ENVIRONMENT
Workplace accident statistics1 GRI 102-8, 403-2; SASB TR-AF-320a.1; TR-AF-540a.2, TR-AF-540a.3; Page 70
Energy consumption (million kWh)  SASB TR-AF-110a.3; Page 92
20142 20153 20163 20173 20183,4 20193
2012 2013 2014 2015 2016 2017 2018 2019
Accident rates 
Total consumption, fleet1 17,655 18,591 19,032 20,585 20,798 21,733 23,243 23,519
LTIFR (workplace accidents per 200,000 hours worked) 4.2 4.0 4.0 4.4 4.3 4.2
Liquid fuels 17,627 18,551 18,977 20,523 20,740 21,686 23,190 23,474
By region
of which Kerosene 12,974 14,096 14,551 16,082 16,323 17,227 18,598 19,032
Europe n. r. 6.3 6.4 7.2 6.8 6.9
Gasoline 331 173 184 188 203 194 221 251
of which Europe excl. Germany n. r. 1.6 1.5 1.9 1.9 1.6
Biodiesel 16 6 9 12 26 28 17 5
Germany n. r. 10.2 10.6 11.6 10.9 11.0
Bioethanol 2 <1 <1 1 1 <1 <1 1
Americas n. r. 1.4 1.3 1.1 1.3 1.2
Diesel 4,298 4,272 4,227 4,236 4,178 4,234 4,351 4,183
Asia Pacific n. r. 0.3 0.3 0.3 0.4 0.4
Liquefied petroleum gas (LPG) 6 4 6 4 9 3 3 2
Other regions n. r. 0.8 1.9 0.7 0.9 0.8
Gaseous fuels 28 40 55 62 58 47 53 45
By division
of which Bio natural gas 5 3 3 2 2 2 3 5
Post & Parcel Germany 10.1 10.0 10.2 10.9 12.1 12.5
Compressed natural gas (CNG) 23 37 52 60 21 15 34 30
Express 3.5 2.8 3.0 3.1 3.1 2.4
Liquefied natural gas (LNG) - - - - 35 30 16 10
Global Forwarding, Freight 1.0 0.9 1.0 1.0 1.0 0.9
Total consumption, buildings 3,127 3,393 3,247 3,113 3,039 3,194 3,194 3,139
Supply Chain 0.7 0.8 0.6 0.6 0.7 0.6
Electricity 2 1,737 1,824 1,697 1,690 1,647 1,737 1,732 1,681
eCommerce Solutions - - - - 1.5 1.6

Corporate Functions 0.5 0.5 0.4 0.4 0.8 0.4 of which "Green" electricity 745 1,056 1,040 1,056 1013 1,086 1,342 1,392

Other key figures Standard electricity 992 768 657 634 634 651 390 289

Working days lost per accident 14.2 15.6 14.8 15.3 15.8 16.5 Natural gas 864 952 951 806 969 903 919 930

Fatalities resulting from workplace accidents 3 4 6 4 3 8 3 Heating oil 3 242 248 308 305 328 275 259 245

of which due to road-traffic accidents - 1 2 1 3 1 District heating 185 202 189 195 54 171 168 174

n. r. = not reported. 1) Group coverage rate: 100% as of 2018, 99% in 2017, 96% from 2015, 92% in 2014. 2) Not included in the review. 3) Including temporary external staff with internal reporting lines. District cooling 8 8 8 1 8 8 7 8
4) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report.
Liquefied petroleum gas (LPG) 91 159 94 116 33 100 109 101

Total energy consumption 20,782 21,984 22,279 23,698 23,837 24,927 26,437 26,658
Sickness rate (%)1  Page 74
1) Only includes consumption of Deutsche Post DHL Group fleet. 2) Including electric vehicle consumption. 3) Also includes quantities of gasoline and diesel for auxiliary power generators.

2014 2015 2016 2017 20182 2019

Group 4.9 5.1 5.1 5.2 5.3 5.3

By region
Carbon efficiency (index points)  GRI 305-4; Page 90
Europe 7.0 7.2 7.3 7.6 7.6 7.8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20186 2019
of which Europe excl. Germany 4.1 4.2 4.0 4.2 4.3 4.6
Group 0 3 9 15 18 20 22 26 29 30 32 33 35
Germany 8.6 9.1 9.4 9.7 9.7 9.7
Post & Parcel Germany1 0 16 17 18 27 26 25 28 31 31 31 39 41
Americas 1.6 1.7 1.7 1.8 1.8 1.9
Express2 0 9 23 28 30 32 35 36 37 37 39 38 38
Asia Pacific 1.3 1.5 1.7 1.6 1.6 1.7

Other regions 1.0 1.2 1.3 1.2 1.3 1.4 Global Forwarding, Freight 3 0 0 2 9 10 11 15 20 21 23 26 28 30

By division Supply Chain 4 0 -3 -4 11 20 26 23 27 32 30 30 39 42

Post & Parcel Germany n. r. n. r. n. r. n. r. 10.1 10.2 eCommerce Solutions 5 - - - - - - - - - - - 24 24

Express n. r. n. r. n. r. n. r. 2.6 2.7 1) Main reference base: CO2e per liter (physical volume), new organizational structure, effective Jan. 1, 2019. 2) Main reference base: CO2e per tkm. 3) Main reference base: CO2e per tkm. 4) Main reference base:
CO2e per square meter of warehouse space and CO2e by revenue from transportation services. 5) Main reference base: CO2e per unit, new organizational structure, effective Jan. 1, 2019. 6) Adjusted.
Global Forwarding, Freight n. r. n. r. n. r. n. r. 2.9 3.1

Supply Chain n. r. n. r. n. r. n. r. 3.2 3.3

eCommerce Solutions n. r. n. r. n. r. n. r. 2.5 2.5

Corporate Functions n. r. n. r. n. r. n. r. 4.6 4.3

n. r. = not reported. 1) Group coverage rate: 100% since 2017, 98% in 2016, 97% in 2015, 94% in 2014. 2) Adjusted, according to note 9 to the consolidated financial statements, 2019 Annual Report.
106 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 107

CO2e emissions (million tonnes)  GRI 305-1, 305-2, 305-3; SASB TR-AF-110a.1, TR-AF-430a.2; Page 89 Scope 3 CO2e emissions by GHG category (million tonnes)  GRI 305-3; Page 89

2013 2014 2015 2016 2017 20181 2019 GHG categories Activities included Calculation methodology 2014 2015 2016 2017 2018 2019

Group2 28.31 29.03 27.02 26.86 28.86 29.46 28.95 1 Purchased goods and services Production DEFRA reporting guidance 2.7 2.5 2.0 2.1 2.1 2.6

of which S cope 1 5.13 5.22 5.6 5.68 5.90 6.30 6.38 2 Capital goods Production DEFRA reporting guidance 0.6 0.7 0.8 0.7 1.3 1.7

Scope 2 0.49 0.44 0.45 0.37 0.44 0.27 0.21 3 Fuel- and energy-related activities Extraction, production and IPCC Guidelines, International ­ 1.1 1.3 1.3 1.4 1.4 1.4
transportation. Distribution Energy Agency, EN 16258
Scope 3 22.69 23.36 20.97 20.81 22.52 22.89 22.36
losses from the generation of standard; DEFRA reporting
By division electricity, district heating and guidance
cooling
Post & Parcel Germany 3 1.56 1.6 1.69 1.85 2.14 1.36 1.36
4 Upstream transportation and 27.8 25.2 25.1 27.11 27.6 27
of which S cope 1 0.49 0.48 0.48 0.53 0.54 0.36 0.36 distribution 
Scope 2 0.07 0.08 0.08 0.03 0.09 0.05 0.05
of which All Data from operational and 22.9 20.9 20.8 22.41 22.8 22.3
Scope 3 0.99 1.04 1.13 1.29 1.51 0.95 0.95 – T
 ransportation services business intelligence systems,
emission factors for air, ocean
Express 8.18 8.66 9.23 9.42 9.71 10.77 11.23
and road transport 3
of which S cope 1 3.77 3.89 4.29 4.34 4.59 4.96 5.07
– Fuel- and energy-related activities We also report emissions from As value chain partners usually 4.9 4.4 4.3 4.6 4.7 4.7
Scope 2 0.13 0.12 0.13 0.13 0.13 0.07 0.06 upstream fuel- and energy- do not disclose fuel types used,
related activities to fulfill the emissions were calculated
Scope 3 4.28 4.64 4.81 4.95 4.99 5.74 6.10
requirements of the EN 16258 assuming most common fuel
Global Forwarding, Freight 16.69 16.47 14.18 13.76 15.10 14.78 14.02 standard, and offset the imbal- types 4 and emission factors
ance between our own and provided in the EN 16258
of which S cope 1 0.16 0.16 0.14 0.13 0.10 0.10 0.10
subcontracted transports. standard.
Scope 2 0.05 0.05 0.05 0.05 0.05 0.03 0.02
6 Business travel Air travel 2 Emissions data from our 0.05 0.1 0.1 0.1 0.1 0.1
Scope 3 16.47 16.26 13.99 13.58 14.95 14.65 13.90 ­a pproved travel agency
­e xtrapolated to reach full
Supply Chain 2.18 2.56 2.21 2.19 2.27 2.08 1.90
­coverage of our business travel
of which S cope 1 0.68 0.68 0.67 0.66 0.66 0.66 0.58
7 Employee commuting Includes emissions from Data calculated using global 0.5 0.7 0.7 0.7 0.7 0.7
Scope 2 0.2 0.16 0.15 0.15 0.15 0.08 0.05 employee commuting in vehicles headcount data and national
not already included in scopes statistics
Scope 3 1.31 1.72 1.39 1.38 1.46 1.34 1.27
1 and 2
eCommerce Solutions 3 - - - - - 0.86 0.85
Non-applicable GHG categories
of which S cope 1 - - - - - 0.20 0.20
8, 10, 11, 15 Not applicable to our business model
Scope 2 - - - - - 0.02 0.01
GHG categories currently not
Scope 3 - - - - - 0.64 0.64
reported

1) Adjusted. 2) After consolidation of Scope 3 emissions from intercompany business activities, including Corporate Functions. 3) New organizational structure, effective Jan. 1, 2019. 5, 9, 12, 13, 14 Not reported, as emissions were only estimated and have limited management relevance.

1) Adjusted. 2) Not included: Emissions from business travel via bus, train, and private/rental cars. 3) Air transport: NTM, ocean transport: Clean Cargo Working Group, road transport: Handbook Emission Factors for
Road Transport. 4) Air transport: kerosene; road transport: diesel; ocean transport: HFO.

Scope 2 CO2e emissions (million tonnes)    GRI 305-2; Page 89 Local air pollutants Scope 1 (tonnes)1  GRI 305-7; SASB TR-AF-120a.1; Page 93
market-based method location-based method
2013 2014 2015 2016 20172 2018 2019
2015 2016 2017 20183 2019 2015 2016 2017 20183 2019
Total mono-nitrogen oxides (NO x) 32,518 31,965 32,352 35,754 36,976 39,795 41,223
Group1 0.45 0.37 0.44 0.27 0.21 0.90 0.81 0.88 0.80 0.75 of which Road transport 18,178 17,625 15,971 15,634 15,739 16,844 16,450
Post & Parcel Germany2 0.08 0.03 0.09 0.05 0.05 0.26 0.19 0.27 0.19 0.18 Air transport 14,340 14,340 16,381 20,120 21,237 22,951 24,773
Express 0.13 0.13 0.13 0.07 0.06 0.19 0.20 0.20 0.19 0.19 Total sulfur dioxide (SO2) 1,825 1,771 1,930 1,711 1,771 1,943 1,984
Global Forwarding, Freight 0.05 0.05 0.05 0.03 0.02 0.07 0.07 0.06 0.06 0.05 of which Road transport 675 621 615 588 586 664 676
Supply Chain 0.15 0.15 0.15 0.08 0.05 0.32 0.31 0.31 0.28 0.25 Air transport 1,150 1,150 1,315 1,123 1,185 1,278 1,308
eCommerce Solutions2 - - - 0.02 0.01 - - - 0.05 0.04 Total particulate matter (PM10) 1,195 1,129 1,157 1,043 1,053 1,148 1,157

1) Including Corporate Functions. 2) New organizational structure, effective Jan. 1, 2019. 3) Adjusted.
of which Road transport 976 911 907 881 881 961 963

Air transport 219 218 250 162 171 186 194

1) Emissions of local air pollutants from road transport are calculated based on actual consumption data; for emissions from air transport, these calculations are based on route profiles. Emission factors from the
EMEP/EEA Air Pollutant Emission Inventory Guidebook (2013) as well those published by the US Environmental Protection Agency were applied.
108 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 109

FINANCIAL INFORMATION
Fleet – road transport  Page 94 Key figures 

2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 20181 2019

Total vehicles n. r. 91,973 92,328 97,165 98,478 103,573 Revenue (€m) 56,630 59,230 57,334 60,444 61,550 63,341

of which Vans n. r. 63,650 63,771 67,222 69,809 74,548 of which Post & Parcel Germany 15,686 16,131 17,078 18,161 18,476 15,484

Trucks n. r. 11,171 11,227 12,096 10,990 11,330 Express 12,491 13,661 13,748 15,049 16,147 17,101

Cars n. r. 17,152 17,330 17,847 17,679 17,695 Global Forwarding, Freight 14,924 14,890 13,737 14,482 14,978 15,128

Vehicles by Euronorm class Supply Chain 14,737 15,791 13,957 14,152 13,350 13,436

Total vehicles1 n. r. 66,284 63,861 69,709 74,900 75,638 eCommerce Solutions - - - - 3,834 4,045

of which Z EV (zero emission vehicles) n. r. n. r. n. r. 6,040 9,114 11,161 Corporate Functions incl. consolidation -1,208 -1,243 -1,186 -1,400 -1,867 -1,853

Euro 6 n. r. 4,592 8,701 12,613 17,321 19,671 EBIT (€m) 2,965 2,411 3,491  3,741 3,162 4,128

Euro 5 + EEV2 n. r. 43,640 39,542 36,768 35,173 33,688 of which Post & Parcel Germany 1,298 1,103 1,446 1,502 656 1,230

Euro 43 n. r. 18,052 15,618 14,288 13,292 11,118 Express 1,260 1,391 1,544 1,736 1,957 2,039

Total vehicles with alternative drive systems 1,976 2,886 4,177 7,896 10,843 13,532 Global Forwarding, Freight 293 -181 287 297 442 521
Electric drive 346 881 2,432 6,040 9,358 11,610 Supply Chain 465 449 572 555 520 912
of which StreetScooters n. r. n. r. n. r. n. r. 9,048 10,802 eCommerce Solutions - - - - -27 -51
Hybrid 325 372 474 572 554 809 Corporate Functions incl. consolidation -351 -351 -358 -350 -523 -523
Liquid biofuels 0 0 30 30 0 0 Staff costs (€m) 18,189 19,640 19,592  20,072 20,825 21,610
Natural gas (CNG and LNG) incl. Bio-CNG 767 864 701 401 206 680 of which Post & Parcel Germany n. r. n. r. 8,044 8,304 9,027 8,032
Liquefied petroleum gas (LPG) 144 184 121 113 74 77 Express n. r. n. r. 3,390 3,661 3,887 4,247
Bioethanol 221 419 269 606 472 315 Global Forwarding, Freight n. r. n. r. 2,076 2,072 2,024 2,105
Dual Fuel 173 166 150 134 179 71 Supply Chain n. r. n. r. 5,180 5,121 4,911 5,411

n. r. = not reported. 1) Only covers vehicles within the scope of Euro emissions classifications. 2) Enhanced environmentally friendly vehicles. 3) Includes Euro 3 (587), 2 (10) and 1 (2) vehicles. eCommerce Solutions - - - - 683 733

Corporate Functions incl. consolidation n. r. n. r. 902 914 976 1,032

Further key HR figures


Water use1 (million liters) Page 96
Staff cost ratio2 (%) 32.1 33.2 34.2  33.2 33.8 34.1
2012 2013 2014 2015 2016 2017 2018 2019 Total cost of workforce 3 (€m) n. r. n. r. n. r. 22,298 23,172 23,854
Group water consumption in Germany 1,102 1,363 1,097 1,054 1,438 1,119 1,096 1,161 Staff costs per FTE (€) 41,300 43,700 43,200 42,800 42,500 43,267
Ratio of staff costs to total costs (%) n. r. n. r. n. r. 34.9 34.1 35.0
1) Water consumption is not considered a material issue for our business model. We therefore only record consumption data at our German sites.
Human Capital RoI 4 1.16 1.12 1.18 1.19 1.15 1.20
Revenue (€) per employee (annual average headcount) n. r. n. r. 115,022 117,747 115,182 116,375

CORPORATE CITIZENSHIP EBIT (€) per employee (annual average headcount) n. r. n. r. 7,004 7,288 5,917 7,750

Further key financial figures

Local projects Page 76, 78 Capital expenditure (CapEx) (€m) 1,876 2,024 2,074  2,277 2,648 3,617

Tax rate 5 (%) 15.5 16.4 11.2  14.3 14.0 20.1


2015 2016 2017 2018 2019
Dividend distribution (€m)6 1,030 1,027 1,270 1,409 1,419 1,546
Corporate Citizenship Index – – – 77 79
Dividend yield (%) 3.1 3.3 3.4 2.9 4.8 3.7
Number of projects 2,016 2,490 2,988 3,345 3,107

Employees involved in projects 110,270 105,804 101,533 122,911 114,239 n. r. = not reported. 1) Adjusted. 2) Staff costs/revenue. 3) Staff costs (note 14) + costs for temporary staff and services excluding subcontractors (note 13), consolidated financial statements,
2019 Annual Report. 4) HCROI = (EBIT + staff costs) ÷ staff costs. 5) Income tax expense/profit before income taxes. 6) 2019 = Proposal. Resolution to be passed at the Annual General Meeting on May 13, 2020.
of whom Actively involved 78,270 75,692 73,374 73,037 75,029

Passively involved (donations) 32,000 30,112 28,159 49,874 39,210

Volunteer hours 258,423 365,076 397,639 374,315 228,759


110 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 111

ASSURANCE REPORT
Independent Practitioner’s Report on a Limited Assurance Engagement on
Non-financial Reporting and Sustainability Information1
To Deutsche Post AG, Bonn Our audit firm applies the national legal requirements and n the Non-financial Report contained within the Assurance Conclusion
We have performed a limited assurance engagement on the professional standards – in particular the Professional Code ­Company’s Report for the period from January 1 to Based on the assurance procedures performed and assur-
sustainability disclosures, denoted with “ ”, (hereinafter for German Public Auditors and German Chartered Auditors December 31, 2019 has not been prepared, in all mate- ance evidence obtained, nothing has come to our attention
the “Sustainability Information”) and the combined separate (“Berufssatzung für Wirtschaftsprüfer und vereidigte Buch- rial aspects, in accordance with §§ 315c in conjunction that causes us to believe that
non-financial report pursuant to §§ (Articles) 289b Abs. prüfer“: “BS WP/vBP”) as well as the Standard on Quality Con- with 289c to 289e HGB.
­(paragraph) 3 and 315b Abs. 3 HGB ("Handelsgesetzbuch": trol 1 published by the Institut der Wirtschaftsprüfer (Institute n t he Sustainability Information, denoted with “ ”, in
"German Commercial Code") (hereinafter the “Non-financial of Public Auditors in Germany; IDW): Requirements to quality In a limited assurance engagement, the assurance proce- the Company’s Sustainability Report for the period from
Report”) contained therein and highlighted in color before control for audit firms (IDW Qualitätssicherungsstandard 1: dures are less extensive than for a reasonable assurance en- January 1 to December 31, 2019 has not been
the respective chapters in the “2019 Sustainability Report” of Anforderungen an die Qualitätssicherung in der Wirtschafts­ gagement, and therefore a substantially lower level of assur- ­prepared, in all material aspects, in accordance with the
Deutsche Post AG, Bonn, (hereinafter the “Company”) for the prüferpraxis – IDW QS 1) – and accordingly maintains a com- ance is obtained. The assurance procedures selected depend ­relevant GRI Criteria, or
period from January 1 to December 31, 2019 (hereinafter prehensive system of quality control including documented on the practitioner’s judgment.
the “Report”). Our engagement in this context relates solely policies and procedures regarding compliance with ethical n t he Non-financial Report contained within the
to the disclosures denoted with the symbol “ ”. requirements, professional standards and applicable legal Within the scope of our assurance engagement, we per- ­Company’s Report for the period from January 1 to
and regulatory requirements. formed amongst others the following assurance procedures December 31, 2019 has not been prepared, in all
Responsibilities of the Executive Directors and further activities: ­material aspects, in accordance with §§ 315c in
The executive directors of the Company are responsible for Practitioner´s Responsibility ­conjunction with 289c to 289e HGB.
the preparation of the Sustainability Information in accord- Our responsibility is to express a limited assurance conclusion n  btaining an understanding of the structure of the sus-
O
ance with the principles stated in the Sustainability Reporting on the Sustainability Information, denoted with “ ”, and the tainability organization and of the stakeholder engage- Intended Use of the Assurance Report
Standards of the Global Reporting Initiative (hereinafter the Non-financial Report contained within the Report based on ment We issue this report on the basis of the engagement agreed
“GRI Criteria”) and the Non-financial Report in accordance the assurance engagement we have performed. Within the with the Company. The assurance engagement has been
with §§ 315c in conjunction with 289c to 289e HGB, as well scope of our engagement, we did not perform an audit on n I nquiries of personnel involved in the preparation of the ­performed for purposes of the Company and the report is
as the selection of the Sustainability Information to be external sources of information or expert opinions, referred to Report regarding the preparation process, the internal solely intended to inform the Company about the results of
­evaluated. in the Report. control system relating to this process and selected dis- the limited assurance engagement.
closures in the Report
This responsibility of Company’s executive directors includes We conducted our assurance engagement in accordance with The report is not intended for any third parties to base any
the selection and application of appropriate methods of the International Standard on Assurance Engagements (ISAE) n I dentification of the likely risks of material misstatement (financial) decision thereon. Our responsibility lies only with
­sustainability reporting and non-financial reporting as well as 3000 (Revised): Assurance Engagements other than Audits in the Report the Company. We do not assume any responsibility towards
making assumptions and estimates related to individual or Reviews of Historical Financial Information, issued by the third parties.
­Sustainability Information and non-financial disclosures, IAASB. This Standard requires that we plan and perform the n  nalytical evaluation of selected disclosures in the
A
which are reasonable in the circumstances. Furthermore, the assurance engagement to allow us to conclude with limited Report Düsseldorf, February 14, 2020
executive directors are responsible for such internal control as assurance that nothing has come to our attention that causes PricewaterhouseCoopers GmbH,
they have considered necessary to enable the preparation of a us to believe that the Sustainability Information, denoted with n  omparison of selected disclosures with corresponding
C Wirtschaftsprüfungsgesellschaft
Report that is free from material misstatement whether due “ ”, in the Company’s Report for the period from January 1 data in the consolidated financial statements and in the
to fraud or error. to December 31, 2019 has not been prepared, in all material group management report
aspects, in accordance with the relevant GRI Criteria, or
Independence and Quality Control of the Audit Firm n  valuation of the presentation of the non-financial infor-
E
We have complied with the German professional provisions mation Hendrik Fink ppa. Thomas Groth
regarding independence as well as other ethical Wirtschaftsprüfer
r­equirements. (German public auditor)

1) PricewaterhouseCoopers GmbH has performed a limited assurance engagement on the German version of the “Sustainability Report” and “Non-financial Report” and
issued an independent practitioner’s report in the German language, which is authoritative. The following text is a translation of the independent practitioner’s report.
112 2019 SUSTAINABILITY REPORT FOREWORD — THE GROUP — RESILIENCE — EMPLOYEES — SOCIETY — ENVIRONMENT — ANNEX
 113

GLOSSARY QR Codes INDEX

A rtificial intelligence (AI) A G S


An overarching term for applications in Accident statistics 71 Generations Pact 66 Sickness rate 73
which machines demonstrate human-like Aircraft 90 Get Airports Ready for Disaster (GARD) 80 SOS Children’s Villages 82
intelligence. Alternative drive systems 88 Gifts 43 StreetScooter 93
Alternative fuels 37 Global Volunteer Day 79 Supplier Code of Conduct 41
B ig data Anti-corruption 43 GoGreen 84 Supplier evaluation 51
A term for large amounts of data which, due GoHelp 80 Sustainable Development Goals (SDGs) 26
to their complexity, can only be stored and
2019 Sustainability Report
B GoTeach 82 Sustainability Accounting Standards
evaluated using special data processing Biodiversity 96 Greenhouse gas emissions 85 Board (SASB) 21
methods. Bicycles 93 GRI Standards 08
T
Blockchain C H Teach For All 82
A continuously expandable list of records Certified initiative 67 Health insurance 73 Temporary external staff with internal
known as blocks, which are linked using Circular economy 95 Health management 70 reporting lines 58
cryptography. In comparison to traditional City Hub concept 94 Human rights policy 61 Trainees 60
systems, blockchain transactions are con- Climate-neutral products 95 Training 60
sidered virtually tamper-proof.
2019 Sustainability Report, PDF download Code of Conduct 41 I Training and development 67
Collective wage agreements 65 Inclusion 58 Transparency register 43
ESG Competition law 47 Innovation Center 29 Tree planting 95
Expresses the extent to which environ­ Corporate citizenship 76 Insetting 88
mental, social and societal aspects as well Cubicycle 94 U
as the type of corporate governance are L UN Global Compact 41
­t aken into account in business practice; D Lifelong learning 68
it is also considered in the valuation of Delivery GmbH 65 LGBTQ+ 59 V
­companies. Deutsche Post DHL Forum 63 Local air pollutants 93 Vehicles 91
Digital transformation 36
EU GDPR
2019 Sustainability Report, order form Disaster Response Teams (DRTs) 80 M W
General Data Protection Regulation on the Diversity 56 Material issues 28 Water consumption 96
protection of natural persons with regard Divisions 24 Mission 2050 85 Whistleblower hotline 42
to the processing of personal data, and on Women in management positions 59
the free movement of such data within the E O Work-life balance 74
European Single Market. Efficiency gains 89 OECD 41 Workplace accidents 55
Electric vehicles 94 Offsetting 95
Predictive analytics Electricity from renewable energy
A special form of data analysis which sources 86 P
­involves predictions made on the basis Emissions 85 Paper Policy 96
of data models as to how a situation will Employee benefits program 73 Part-time employment 58
2019 Annual Report
develop in the future. Employee turnover 60 People with disabilities 58
Energy consumption 88
Smart contracts Energy efficiency 87 R
Digital contracts based on blockchain Euro emissions classification 94 Rating agencies 31
technology European Standard categories 94 Recycling 95
External personnel 58

Corporate website
Publication
The 2019 Sustainability Report was published March 10, 2020
in PDF format in both German and English. A print version can
be ordered from the Group website:
DATES
Annual General Meeting
www.dpdhl.com/2019sustainabilityreport May 13
Deutsche Post DHL Group employees can order the print version
2020
of the report internally (via GeT or the DHL Webshop) using the
following material numbers:
2020 Sustainability Report
German: Mat. no. 675-800-235
March 9
2021
English: Mat. no. 675-800-236
2020 Annual Report

Contact information May 6 Annual General Meeting

Tel.: +49 (0)228 182 - 99 44 2021


Fax: +49 (0)228 182 - 98 80
E-mail: [email protected]

Design and copy editing Environmentally friendly production


CC.CONSTRUCT GMBH & CO. KG, Wuppertal, Germany Printed on Envirotop with Ecolabel 244053 (recycled paper
made of 100% recycled paper, FSC certified, climate
n­eutrally produced). Complies with the guidelines of EU
Ecolabel AT/11/002.
Production
Woeste Druck + Verlag GmbH & Co. KG, Essen, Germany

The English version of the Deutsche Post DHL Group 2019


­Sustainability Report constitutes a translation of the original
­German version. Only the German version is legally binding,
­insofar as this does not conflict with legal provisions in other­
­countries. Deutsche Post Corporate Language Services et al.
Deutsche Post AG
Group Communications, Sustainability & Brand
Headquarters
53250 Bonn
Germany
dpdhl.com

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