Carbon neutral commitment

Being dedicated to making every parcel we deliver carbon neutral, for all our customers, at no extra cost.

Transportation currently accounts for around a quarter of the world's energy-related carbon emissions. Transport is not only the most energy-consuming sector, but it is also, in terms of energy consumption trends, the fastest growing sector. As freight transport activities are projected to increase by around 80% by 2050 compared to 2005, the delivery sector is facing a great challenge to mitigate its environmental impact.

Every day, DPDgroup’s 68,000 delivery men and women deliver more than 4.8 million parcels across Europe’s largest road network and to over 23 countries. This express delivery system, important to us and our clients, is also a large contributor to global greenhouse gas emissions and therefore to climate change.

To address this challenge, the group has set itself the target of making every parcel it delivers carbon neutral at no extra cost for its customers.

This commitment is fundamental to our corporate sustainability and a core asset in our DrivingChange programme: DPDgroup is the world CEP sector leader on the voluntary offset market and represents around 5% of the European voluntary market offset credits.

2017 key figures

co2
-%

of CO2e emissions per parcel in 2017 (vs. 2013)

transport
%

of our transport emissions offset in 2017 (the equivalent of 912,731 tonnes C02e)

#1
#

in the sector on the voluntary market

projects

offset projects supported representing 5% of the European voluntary offset market

2017 actions

  • DPDgroup has created an internal Carbon Fund of €500,000 in 2017 for all business units to launch carbon reduction initiatives
  • DPDgroup has committed to the Science Based Targets
Ambition
Set a new « Science Based » carbon reduction target and maintain our leadership in carbon neutrality
How?
We are actively mitigating our impact on climate change and achieved carbon neutrality in 2012 by taking a three-step approach:
  • We measure our carbon footprint with externally audited methods and tools
  • We reduce our CO2 emissions per parcel on road transport
  • We offset the remaining transport related emissions by investing in 7 projects in Europe, Brazil, Turkey and India

We measure

We reduce

We offset

Measuring our own impact

The first step to managing and reducing DPDgroup’s carbon emissions is having a thorough understanding of the GHG emissions resulting from our operations.

To achieve this aim, the group uses “RESPIRE”, an internal reporting system allowing the collection of energy and fuel consumption data from transport, depots and hubs, in the 18 subsidiaries fully owned by DPDgroup. Quarterly reports allow each division to closely monitor its consumption and emissions.

We continuously improve the tool in order to ensure its effectiveness and reliability – subsidiaries now benefit from new Avoided Emissions indicators, which allow them to measure gains from ongoing energy and fuel reduction initiatives.

The tool aligns with international standards such as ISO 14064, the European standard EN 16258, the French standard BEGES and our internal protocol, and data is audited annually to ensure its accuracy.

TOTAL CO2e emissions of the group

Allowing customers to measure their impact

In addition to measuring the group’s overall emissions, DPDgroup launched the Carbon Calculator tool in 2016, giving customers precise information on request, according to their parcel's exact route. Although these emissions are later offset by the group, this tool enables individuals and businesses to have a thorough understanding of their impacts, a mandatory step to take actions. It also responds to the needs of the group’s growing base of environmentally-conscious clients.

The analysis is performed for every single parcel that enters the group’s logistic network. The tool was recently verified and validated by SGS, a third party body, against the requirements of the European standard EN 16258.

Measuring emissions allows DPDgroup to understand and manage them effectively. As parcel volumes increase and the demand for delivery services grows, a robust emission reduction plan is a first crucial step on the path to making every parcel we deliver carbon neutral. We are working on a new emission reduction target, aligned with the Science Based Targets initiative, in order to ensure our goals are ambitious and in line with scientific knowledge to limit global warming below 2C° by 2050.

In 2017, we continued to improve the efficiency of each parcel delivered, achieving an average of 0.738 kg of CO2e per parcel in 2017, a reduction of 11.24%, compared to 2013. This exceeds our target of reducing the CO2e emitted per parcel by 10% by 2020.

This reduction is also notable within the sector: the average amount of tCO2e emitted per million euros of turnover by DPDgroup is three times lower than the sector average.

3
LEVERS have enabled this reduction:
The creation of an internal Carbon Fund
The use of alternative fuel vehicles and fuel-efficient driving
An increase in the load capacity of our transport vehicles.

The Carbon Fund

Business units being completely autonomous in their fleet management, DPDgroup created a 500,000 euros Carbon Fund in 2017. The aim: to incentivise all business units to deploy carbon reduction initiatives by providing funding for projects such as alternative vehicles, fuel-efficient driving, efficient loading training and building energy management.

This initiative has been successful, with subsidiaries investing more than €1.2 million to complement central funding and finance their carbon reduction plans.

Case study

DPD Slovakia used the funding to add two electric Voltia eNV200 Maxi vehicles to its fleet in Bratislava, the first company to do so in the country. Through this move, around 128,000 parcels will be delivered in a sustainable way over 4 years.

“After a successful test phase, we decided to deploy the first two vehicles in standard operation in May. Our goal is to deploy this type of electrical supply in several big cities in the long run to contribute to reduce air pollution.”
- Peter Pavuk, CEO, DPD Slovakia

Alternative fuel vehicles and fuel-efficient driving

DPDgroup is expanding its fleet with a focus on environmental efficiency – we now operate more than 300 alternative fuel vehicles, meaning that more than 19 million kilometres were travelled by Liquefied Natural gas (LNG), Bio Natural gas (BNG), electric or electricity-assisted vehicles. Together with fuel-efficient training sessions, this helped avoid more than 950 tCO2e in 2017.
Click on the map to get country information:

Maximising the capacity of our fleets

Maximising truck loading capacity, specifically on in-demand routes, reduces the number of trucks on the roads and therefore lowers emissions.

As reported last year, DPD Netherlands has been investing in trucks reaching the maximum allowed loading capacity of 162m3. This year, the road trains fleet has expanded to 23 vehicles, thus reaching the optimal number of trucks on the Dutch road network. This investment delivered multiple environmental benefits: in addition to lowering road congestion, it prevented more than 1,120 tCO2e from being emitted in two years. DPD NL is now looking into developing its fleet with LNG and electric motors. Given the success of this initiative, a similar one has been deployed in Spain, with “SEUR megatrucks”.

Interview
Christian Heyer
Driver
He has been working with DPD Switzerland since 2013. He was Driver of the Year in 2015 and was among the top 3 drivers in both 2016 and 2017. He has been using DPD Go!, DPDgroup’s driver-oriented app, which provides interactive training on eco-driving and customer service. Upon completion of the trainings, drivers are awarded with the DPD Driving Excellence certificate and take part in a competition to win vouchers of up to CHF 300 redeemable on Brack.ch.
Doing the quiz on the DPD Go! app is really a great and fun way to learn about ecodriving!
My experience with the DPD Go! has been overly positive. I found that learning by doing the quiz on the DPD Go! app is really a lot of fun - it's an easy way to learn a number of interesting things.
I'm quite ambitious so I wanted to take advantage of the app to improve. I was delighted to win the first prize, a 300 CHF voucher from Brack.ch!
Ecodriving allows me to do my bit for the environment
Ecodriving is important to me in both winter and summer, on country roads and on the motorway. It allows me to do my bit for the environment. After all, DPD is committed to making its deliveries climate-neutral, and I absolutely support that goal.

Looking forward

In order to ensure we play our part in the transition to a low carbon economy, we have decided to set new emissions targets in line with the Science Based Targets Initiative, i.e. with the level of decarbonisation required to keep the global temperature increase below 2°C, compared to pre-industrial temperatures. While we will only be able to begin reporting progress on this target in two years’ time, we are continuing, nevertheless, to pursue our emission reduction efforts.
GHG emissions
(kgCO2e per parcel)
total
2013 0,831
2014 0,778
2015 0,779
2016 0,747
2017 0,738

The final step of our three-pronged approach is to offset all remaining CO2 emissions from transport - including our indirect emissions from outsourced transport - in order to achieve carbon neutrality.

This makes DPDgroup Number 1 in the voluntary carbon market in the sector.

Projects following
the highest standards

4.8

billion carbon neutral
parcels since 2012

Voluntary
approach

Emissions offset

Since we launched our carbon neutral commitment in 2012, we delivered 4.8 billion carbon neutral parcels.

Our offsetting programme consists of seven projects related to renewable and clean energy production.

In 2017, a seventh project in Brazil was added to the list after being voted for by employees from 15 Business Units.

We developed our offsetting programme, and the associated projects, in partnership with EcoAct,
a European leader on the carbon market. Only projects which are verified by the most rigorous carbon standards on the market – the Verified Carbon Standard (VCS), the Gold Standard, and the United Nations Joint Implementation mechanism - are taken into consideration.

Additionally, every project is verified by a third party to guarantee accurate measures of CO2e savings.
Both environmental and socio-economic benefits are considered when choosing an offsetting project.

With the aim of contributing to the energy transition, all of the projects that we fund have a focus on renewable energy, energy efficiency, or the circular economy.
These are not tax-exempt and we do not have equity investments in the projects.

These seven offsetting projects have offset 912,731 tCO2e. This investment has not only offset100%
of our GHG parcel delivery emissions,
it is also driving social and economic improvements:

Our support has helped more than 295,000 people across 7 countries gain access to clean energy, and created nearly 200 jobs.

infographie

Interview

Gerald Maradan

CEO and co-founder at EcoAct Group, as well as co-founder and Vice President of the NGO Entrepreneurs For Life.

Visit eco-act.com

What is your perception of DPDgroup in terms of responsibility?

DPDgroup is a value-driven company, while also being customer-oriented. In that sense, they are the living-proof that a company can do business in a responsible way. Services such as Predict or Pickup are great examples of the successful search for the right balance between business and responsibility. On the supplier side, EcoAct works with DPDgroup as a partner. Both companies strive to find the best possible approach to DPDgroup’s responsibility.

Is DPDgroup taking the appropriate steps to tackle its main environmental impacts?

DPDgroup’s programme follows the best practices in carbon management. In light of the widespread endorsement of the Paris Agreement, all companies have a role to play. DPDgroup demonstrates climate leadership in this respect, especially when compared to other actors within the CEP (Courier, Express and Parcel) industry. At DPDgroup, transport is mostly subcontracted, resulting in a more complex roadmap to effective GHG reductions. Still, DPDgroup involves its transport suppliers and constantly explores new innovative logistics solutions.

What are the highlights of DPDgroup’s carbon management approach?

The Paris Agreement overall objective is to reach carbon neutrality by the second half of this century. A host of countries have already committed to carbon neutrality. DPDgroup’s offsetting programme goes beyond the Paris Agreement objectives, and allows its customers to contribute to these global goals at no extra cost.

What are your expectations regarding DPDgroup’s offsetting program? How could it be improved?

Historically, DPDgroup have devoted a lot of effort in managing carbon emissions. However, this dedication is not always exposed to the outside world. Lately, DPDgroup has stepped up its communication plan to share its story and raise awareness on its leadership position in terms of carbon emissions stewardship. In order to complement its ambitious offsetting programme, DPDgroup should demonstrate the alignment of its goals with the United Nations Sustainable Development Goals.

DPDgroup offsetting programme

Turkey
Balikesir Wind
flag-TR

Using wind to produce energy

Fossil fuel is the biggest source of electricity generation in Turkey. Balikesir Wind has enabled important investments in wind turbines, leading to an average of 200,000 tCO2e being avoided per year – equivalent to the energy use of 35,000 people in Turkey.

Germany
CleaningGround
flag-DE

Improving the local energy mix by capturing methane

The emission of coal mine gases (CMM), such as methane, is an unavoidable consequence arising from mining. CleaningGround captures CMM and compresses them to produce energy, which is sold to renewable energy providers – all while limiting the negative impacts of mining by reducing the emission of CMMs by 90%.

Poland
Green Binders
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Producing building materials from waste

In a country in which the energy mix relies highly on coal, the Green Binders initiative takes a circular economy approach. It uses calcareous ashes emitted from the burning of coal in the country’s electricity production to create alternative construction materials, thereby avoiding the need for the production of new cement- and lime-based materials.

Czech Republic
Waste Energy
flag-CZ

Producing energy from waste

In a country where landfill is the most common method of waste disposal, Waste Energy captures the GHG and toxic gas emitted from these landfill sites (which significantly contribute to global warming) to create energy, which is then transferred to the grid.

United Kingdom
UnitedShire
flag-GB

Improving the local energy mix by capturing methane

UnitedShire tackles the issue of abandoned mines that still emit methane, a strong greenhouse gas – using compression technology, the project produces power and heat, while preventing methane from being released in the atmosphere.

India
Hindi Wind
flag-IN

Using wind to produce energy

Hindi Wind is supplying renewable electricity in rural India by installing 133 Wind Turbine Generators (WTGs) to generate 190GWh of electrical power. This has led to an average of 160,000 tCO2e being avoided per year – equivalent to the energy use of 100,000 people in India.

Brazil
Dori Biomass
flag-BR

Switching to renewable biomass in candy factories

Dori Alimentos, a Brazilian confectionary and nut manufacturer with more than 2,000 employees, has switched from deriving power from shale oil to using renewable power from eucalyptus trees. It has installed biomass boilers, fed by eucalyptus woodchips, and the ashes are used as fertilisers on the plantation sites. This has helped to avoid emissions equivalent to the energy use of 7,600 people in Brazil.

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Other environmental aspects

Along its delivery process, a parcel will go through several stages that involve other operations than transport. Although transport is by far DPDgroup’s primary environmental impact, the energy, paper, water and waste that we use and produce during our operations also contribute to the group’s environmental impact, representing around 10% of the our carbon footprint.

DPDgroup’s business units are therefore involved in a host of initiatives to curb their environmental impacts beyond transport activity. Information is collected from our offices, hubs and depots every quarter, via a company-wide reporting tool. Data is internally and externally controlled and key performance indicators, such as carbon footprint, are followed-up by each business units.