GOGREEN SOLUTIONS - DHL Parcel · GOGREEN SOLUTIONS Produce Consum e Reuse GOGREEN Deutsche Post AG...

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GOGREEN SOLUTIONS Produce Consume Reuse

Transcript of GOGREEN SOLUTIONS - DHL Parcel · GOGREEN SOLUTIONS Produce Consum e Reuse GOGREEN Deutsche Post AG...

GOGREEN SOLUTIONS

Prod

uce

Consume

Reuse

GOGREEN

Deutsche Post AGHeadquartersCorporate Communications and Responsibility53250 BonnGermany www.dhl.com September 2015Mat. No. 675-601-701

Action/Vision15

°C

REDU

CED CARBON FOOTPRINT

PROCESS OPTIMIZED

NEW

PRO

DU

CTS & BRAND STRENGTHENED

NE

W MARKETS ACCESSED

COST

S, E

NERGY, WATER & TIME SAVIN

GS

WASTE MINIMIZED

SUS TA I NA B L E CHANGE

TIME

C O M P E T I T I V E A D VA N TA G E

A LOOK INTO YOUR GREEN FUTURE

Minerals

Prod

uce

Consume

ReuseA B

Up 32% by 2030

Food

2030

Today

Water

Oil

Natural gas

Coal

Coal

Oil Gas

CONSUMPTION &CLIMATE CHANGE

RESOURCESENERGY

1.8bntoday

4.8bn2030

2.5 times greater industrial

capacity by 2030

Up 41%by 2030

SOLUTIONSThe logistics industry can and must deliver

sustainable, environmentally

friendly solutions that improve

efficiency and reduce GHG emissions

The result: rising sea levels, melting ice

packs, shifting climate zones,

and more extreme weather events that lead to geopolitical

instability 4

Another century of ‘business as usual’

could cause the Earth's median temperature to

increase 4°C or more 4

GHG emissions are growing rapidly 4

Energy consumption from fossil

fuels continues to increase 2

We consume more of the Earth’s resources than ever before, and the trend is rising 3

Today's linear ‘take-make-dispose’ economy simply cannot be sustained 5

Global resource extraction is expected to double in the next decade 3

Only about half of waste in Europe is reused, recycled or composted 6

Humans now consume more than the productivity of Earth’s ecosystem can sustain

More people and commerce mean we use more energy 2

Increased production means a greater need for natural resources 1

A growing middle class means higher demand for goods and services 1

SOLUTIONSThe economy can and must deliver sustainable solutions that improve performance, reduce waste and facilitate a circular economy 5

°C

1 OECD Development Centre, Homi Kharas; The Emerging Middle Class in Developing Countries; Working Paper No. 285; January 2010

2 BP Energy Outlook 2035; January 20143 OECD, Behrens; WMM Global Insight; Ellen MacArthur

Foundation Circular Economy Team; 20074 IPCC; Summary for Policymakers (IPCC AR5, Working

Group III); 20145 Ellen MacArthur Foundation; Towards the Circular

Economy; Economic and Business Rationale for an Accelerated Transition; 2013

6 Eurostat News Release; Environment in the EU28; March 2014

YOUR GUIDE TO GREEN LOGISTICSAre you interested in making your logistics greener and more sustainable?

If so, you’re in good company. Today’s companies, large and small, are

looking for ways to go green. It’s time for you to join them.

The DHL GOGREEN SOLUTIONS workbook is designed to help you discover

how you can be part of a greener future by developing and implementing

logistics solutions that conserve resources and improve both environmental

and economic efficiency. It will guide you through the entire process, from

evaluating your own logistics activities to outlining your green needs and

visions, to identifying potential courses of action and areas of improvement.

It will help you ask the right questions to find the right green solutions to

best meet your needs. So mark it up, scribble notes in the margins, reference

it often – it’s your tool!

And we’re here to help, too. This workbook provides the roadmap, but our

logistics experts can help you navigate it. Don’t hesitate to contact us at any

phase of the process.

Now let’s get started on making your supply chain greener!

Introduction 3

Action 1: Action 2:

NOW IT’S YOUR TURN. WHAT SHOULD BE OUR FIRST COURSE OF ACTION?Your DHL GOGREEN SOLUTIONS

Your ProfileYour Profile

Geographic region

Location

Site/Lane

Customer’s division

Next steps and timing

Information needs

Business objectives/ Green motivations

Description of current logistics solution

Geographic region

Location

Site/Lane

Customer’s division

Next steps and timing

Information needs

Business objectives/ Green motivations

Description of current logistics solution

16

Please answer the questions below to help us get a better understanding of your company’s current sustainability activities.

SUSTAINABILITY SELF-ASSESSMENT

1. Do you think environmental protection can give your company

a competitive advantage?

2. Does your company have an environmental protection program?

Yes

Yes

No

No

67% of businesses globally consider cost management a key

driver for introducing sustainable business practices.4

67%

50% of investment analysts say that information about resource

consumption is highly relevant.6

50%

87% of job seekers prefer to work for companies that are environmentally and socially responsible.5

87%

87% of CEO’s confirm that safe- guarding their company’s energy

supply is important or very important.2

87%

60% of end consumers mention climate change when asked about the most pressing global issues of our time.1

60%

84% of the world´s largest companies have established, and are pursuing, climate protection programs.384%

6. In what areas do you formally track and assess your performance?

CO2e (CO2 and equivalents)

Waste

Water

Other (please specify)

Preliminary stages ImplementationDefining goals Established

5. What is the current status of your environmental program?

Cost savings

Reduced carbon footprint

Stable supply of materials

Access to new markets

Development of new products

Brand positioning

Competitive advantage

Comply with legislation

Internal reporting/company policy

4. What do you most hope to achieve with the program?

3. If yes, what are the focus areas of your program?

A

B

C

Best Practices 15

Waste Recycling (Envirosolutions)Measure(s) Designed and implemented an innovative in-flight catering and waste solution Installed food driers, which reduced volume of food waste by 70% Benchmarked waste rates Minimized waste to landfill

Challenge(s) Introduction of food waste-drying technology to support the customer’s target of zero waste to landfill

Environmental impact Achieved zero waste to landfill

Additional/Business benefits Food waste transport costs reduced by 70% Significant added value recovered from waste Substantial recycling revenue No landfill taxes Access to waste management expertise

Customer profile

SectorAviation

LocationUK

Logistics Consulting & Network DesignMeasure(s) Reviewed customer’s existing assembly network for one of its finished products to identify key

improvement opport unities with regard to cost and impact on carbon emissions Concluded that, by moving the assembly from southern Europe to northern Germany, the customer

would reduce both its CO2 emissions and costs, despite an increase in ocean freight transports

Challenge(s) Extensive concept phase and data collection/analysis

Environmental impact A 44% reduction in the customer’s CO2 emissions

Additional/Business benefits Transparency in customer’s supply chain as regards lead time and carbon emissions Concrete proposal for a new supply chain network to reduce the cost and improve carbon efficiency of

assembling the finished product

Customer profile

SectorConsumer

LocationGermany/Europe

Producer Responsibility (Envirosolutions)Measure(s) Set up e-waste collection points (Drop Zones) to comply with federal legislation requiring TV and computer

importers to recycle e-waste Provided free nationwide recycling services (Drop Zones), reaching around 97% of Australians Utilized approximately 15 recyclers across all states to reduce transport costs and minimize CO2 emissions Conducted marketing and communications campaign to change customer behavior

Challenge(s) Reach TV and computer recycling targets, which were recently set at 30% (historically 17%) Establish program, set up infrastructure, recruit and audit recyclers, hire personnel in a short timeframe Change consumer behavior surrounding e-waste recycling

Environmental impact 90%+ waste diverted from landfill (90% material recovery rate)

Additional/Business benefits TV and computer recycling targets reached Every state in Australia received a collection/recycling service for the first time 49 customers signed up in four months (speed to market)

Customer profile

SectorTechnology

LocationAustralia

4

BEST PRACTICES: THE MEASURES, THE CHALLENGES, THE RESULTS Ever since we launched our GoGreen program in 2008, we have worked closely with all kinds of companies, large and small, to help them optimize their logistics and make them greener.

Climate NeutralMeasure(s) DHL Express offered global Climate Neutral shipment services to customer, which included investments

in climate-protection projects Customer is the first financial institution to use DHL’s GoGreen service worldwide

Challenge(s) Make 95% of the bank‘s international courier services climate neutral in a step-by-step process

Environmental impact 1,900 tonnes of annual CO2 savings

Additional/Business benefits Customer enhanced its reputation vis-à-vis clients Low effort to implement because no change in operations required Climate protection projects initiated to offset emissions benefit local populations

Customer profile

SectorFinancial Services

LocationWorldwide

Carbon DashboardMeasure(s) Performed baseline CO2e calculation and analyzed key contributors Developed carbon monitoring solution via Carbon Dashboard which covers data from DHL and five

other logistic service providers Reported customer’s product transportation emissions on a global scale and verified by third party

Challenge(s) Integrate third-party data into Carbon Dashboard analysis

Environmental impact N/A

Additional/Business benefits Transparency based on CO2e baseline for benchmarking and target setting Improved carbon visibility and monitoring via Carbon Dashboard Successfully verified customer’s product transportation emissions Identified carbon contributors and reduction approaches Access to expertise and knowledge

Customer profile

SectorTechnology

LocationChina

HERE ARE A FEW EXAMPLES:

Road FreightMeasure(s) Deployed 399 aerodynamically optimized teardrop trailer trucks Mimics the perfect aerodynamic lines of a teardrop and increases internal load space Specially designed roof with full-length curve and corners rounded off to improve air flow Fuel efficiency monitored through upgraded telematics, designed to raise awareness of

efficient driving A speed reduction program limits the driving speed of the articulated truck fleet to 85kph/53mph,

leading to improved fuel efficiency and safety

Challenge(s) Finance cost for teardrop trailers upfront Obtain approval/licensing for first trailers Align loading operations with teardrop trailer requirements

Environmental impact Customer’s 399 teardrop trailers will reduce its carbon footprint by more than 2,000 tonnes

every year

Additional/Business benefits The unique aerodynamic shape of these trailers generates fuel savings of approx. 10% and a 10% increase

in cubic capacity

Customer profile

SectorRetail

LocationUK

WarehousingMeasure(s) Built a 250,000-square-foot sustainable distribution center with environmentally responsible design

elements and efficient operating systems Included energy-efficient lighting, sky lights, low-flow plumbing, a white roof system, storm water

runoff containment, and a recycling program

Challenge(s) Collaboration with local city authorities and the local Development Foundation

Environmental impact Reduced energy and water consumption Reduced costs and greenhouse gas emissions Healthier environment for residents, workers and the local community

Additional/Business benefits Distribution center achieved Leadership in Energy and Environmental Design (LEED) certification from

the U.S. Green Building Council

Customer profile

SectorMulti-sector

LocationUSA

IntermodalMeasure(s) Shifted ocean (Shanghai to Hamburg) and air freight (Shanghai to Billund) to intermodal transport

from China to Denmark Consolidated approx. 12 million tonnes into two 40’ containers per week Intermodal transport now runs road from Shanghai to Suzhou, rail from Suzhou to Warsaw and road

from Warsaw to Haderslev

Challenge(s) Coordinate and implement a solution that integrates third-party warehouse provider Switch from long-term ocean/air freight solution to innovative, intermodal service that is fairly new

to the market Build on solid customer relationship and devote time needed to manage the switch efficiently

Environmental impact CO2 emissions reduced by more than 50% (approx. 200 tonnes of annual CO2 savings)

Additional/Business benefits Ocean to intermodal reduces transit times and increases reliability (scheduling and transit time) Air to intermodal reduces costs Less than container loads (LCLs) now an option

Customer profile

SectorRetail

LocationDenmark

Climate change is one of mankind’s greatest challenges. If we want

our planet to remain habitable for generations to come, we must work

together to reduce GHG emissions now. As green logistics experts,

we at DHL can ensure that your logistics make an important contribution

to your company’s sustainability while giving you an edge over the

competition. After all, success will increasingly depend on how fast you

are able to develop a resource-optimized business model. Efficient

logistics can take you a major step in that direction.

Now more than ever, consumers are buying “green”. They make

purchasing decisions based on a company’s environmental track record in

addition to product and service quality. And in today’s connected world,

consumers are also more likely to broadcast their experience to the entire

social-media community.

Today’s employees also prefer to be part of environmentally and socially

responsible organizations. The world’s most sought-after employers have

clearly defined environmental targets and actively take steps towards

achieving them. A green logistics solution can help you meet some of

those targets and make you a more attractive employer.

Going green also makes good business sense. A sustainable business

model is something that today’s investors now expect, not to mention

banks, insurance companies and other stakeholders such as rating

agencies, NGOs and governments. Green logistics can play a vital role

in demonstrating that your business is committed to sustainability.

The transport and logistics industry plays a central role in the global

economy and is therefore in a unique position when it comes to the

Earth’s climate. Moving goods by land, sea and air generates a significant

portion of global GHG emissions. Your company’s environmental footprint

includes all of your transport and logistics activities, even if outsourced.

We offer a host of green solutions that can help you to improve your

environmental footprint from transport and logistics processes as well as

make your logistics more efficient and economical. Start with the

sustainability self-assessment on the opposite page and let’s get to know

your needs.

A SUSTAINABLE OPPORTUNITY

Sustainability

7. If you checked CO2e, do you assess your CO2e emissions according

to the Greenhouse Gas (GHG) Protocol and what scopes are included

in your assessment?

8. What proportion of your carbon footprint is due to transport and

logistics?

Proportion in %:

Not sure, but probably:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9. When you choose a logistics provider, how important is a

company’s environmental track record?

0 1 2 3 4 5 6 7 8 9 10

10. Are you satisfied with your logistics provider’s environmental

performance and the speed of improvement?

0 1 2 3 4 5 6 7 8 9 10

Scope 1: All direct GHG emissions from sources that are owned or controlled

by your company (e.g. emissions from facilities, vehicles, etc.)

Scope 2: Indirect GHG emissions from consumption of purchased electricity,

heat or steam

Scope 3: Other indirect emissions, such as the extraction and production of

purchased materials and fuels, transport/logistics-related activities in vehicles

not owned or controlled by your company, electricity-related activities not

covered in Scope 2, outsourced activities, waste disposal, etc.

Not important Very important

None Completely

No, and I see no improvement Yes, and I see constant and measureable improvement

5

1 Deutsche Post AG; Delivering Tomorrow: Towards Sustainable Logistics; 20102 PWC; Rio+20: Seven out of ten CEO’s would take action on global sustainability challenges; 2012 3 CDP; Global 500 Climate Change Report; 20134 Grant Thornton; International Business Report, Corporate Social Responsibility: Beyond Financials; 20145 Kelly Services Inc.; Kelly Global Workforce Index; 20096 Accounting for Responsibility; The Value of Extra Financial Disclosure; Accounting for Sustainability; 2011

13 14

12 142 09

CLIMATENEUTRAL

Total quantity of emissions offset

2006 1,014 tonnes CO2 offset

2014 248,570 tonnes CO2e offset

1st

GOGREENLOGISTICS

TARGET

30%Deutsche Post DHL Group

Carbon Efficiency Index

(Index points)

1st global logistics company with carbon efficiency target

2007 / 0

2014 / 23

2020 / 30

GREEN ROADTRANSPORT

Burn less - Aerodynamics- Engine modifications- Hybrids

Burn clean- Alternative fuels- Electric vehicles (powered by green electricity)

DPDHL Group's total global green fleet

Green road transport technologies for all purposes

2008 / 544 vehicles 2014 / 11,200 vehicles

1st in industry to develop and produce own fully electric mail and parcel vehicles

ELECTRICFLEET

Covers entire group with multiple parameters- 28 million tonnes CO2

- 220 countries and territories- All transport and logistics activities

- The largest global logistics fleet of fully electric vehicles

- Over 400 fully electric vehicles in operation in 2014

Energy-efficient wood stoves in Lesotho to generate carbon credits for Climate Neutral shipping service

Co-initiator of Green Freight Europe and Green Freight Asia

CEO is a representative in UN High Level Advisory Group on Sustainable Transport

Burn less Energy-efficient lighting, heating and air conditioning

Burn cleanUse of green electricity globally: over 60%

The first zero-to-landfill warehouse

REAL ESTATEGreen real estate technologies for all purposes

CARBON ACCOUNTING ANDCONTROLLINGIndustry leading carbon accounting and controlling system

CLIMATEPROTECTIONPROJECT1st in industry to launch own climate protection project to generate carbon credits

INITIATIVES AND ADVISORYROLES

Road

Air

Rail Real estate

Business travel

Ocean00

1st logistics company to put a Biofuels Guideline in place

Carbon Reportsolutions- Track and Trace- Carbon Estimate Report- Carbon Dashboard

Globally available for all transport and logistics services

AVIATIONCarbon efficiency of own aviation operations increased by 46% in 2014 over 2007 levels

CARBON REPORTSOLUTIONSCarbon Report solutions for all customer needs

46%

60%

1st to market in UK

1st to market in mainland Europe

TEARDROPTRAILERMore than 1,500 teardrop trailers in operation

Carbon neutral product in parcel and express sector in 2006

GOING FROM YELLOW TO GREEN

Componentparts

Sourcing Primary distributionSecondary

distribution

Inputcomponents

Production DHL hub Distributioncentre

Pointof

sale

Ocean

Air

PACKAGING OPTIMIZATION

LOADPROFILE

OPTIMIZATION

ROADFREIGHT

WAREHOUSING

CARRIERSELECTION

MODAL SHIFTINTERMODAL

LOGISTICS CONSULTING & NETWORK

DESIGN

ROUTINGOPTIMIZATION

PRODUCERRESPONSIBILITY

REVERSELOGISTICSSOLUTIONS

Manufacturing

FROM LINEAR TO CIRCULAR – GREEN OPTIMIZATION IN ACTIONOur optimization toolbox covers the entire logistics supply chain.

Road Freight Warehousing Network, Product and Carrier Management

Envirosolutions

Objective:Reduce CO2 emissions in road freight.

Objective:Reduce CO2 emissions in warehousing.

Objective:Minimize the carbon impact in supply chains.

Objective:Improve environmental performance beyond CO2 by reducing waste and applying circular economy principles.

What we can do:Innovative green transport technologies to reduce CO2 emissions.

What we can do:Innovative green warehousing technolo-gies to reduce CO2 emissions.

What we can do:Optimize processes and supply chains to improve network efficiency.

What we can do:Integrate environmental and logistics solutions to ensure environmental com-pliance and sustainable business success.

How we do it:We reduce your emissions through efficiency gains (burn less) and more environmentally friendly energy sources (burn clean).

In general, this involves: Use of various innovative technologies

for trucks and trailers Use of alternative fuels and electricity

Green road freight solutions vary based on operational requirements: Long haul: Even small efficiency gains

that apply the “burn less” principle can yield significant benefits due to high mileage and volumes. Short haul: The “burn clean” principle

achieves cleaner air and less noise in the city for what are typically pickup and delivery operations. This is where your customers really “see and feel” your green efforts.

How we do it:We reduce your emissions through efficiency gains (burn less) and more environmentally friendly energy sources (burn clean).

In general, this involves: Use of various innovative technologies

for warehouses Use of electricity from renewable

sources

The energy efficiency of warehouses can be improved mainly in two areas:

Lighting: Use energy-saving lighting Install lighting motion sensors Introduce electrically powered

equipment Innovative power generation

Heating: Apply new highly efficient heating/

cooling technologies Modernize heating control

How we do it:We advise and implement operational, tactical and strategic action to optimize the supply chain network.

Operational: Optimization of load profile (e.g.

capacity optimization of vehicles) Optimization of packaging profile

(e.g. capacity optimization of packages) and materials

Tactical: Intermodal solutions and modal shift Efficient transport routing and

optimization Carrier selection

Strategic: Carbon-efficient logistics consulting

and network design optimization

How we do it:We implement reverse logistics, producer responsibility and lead compliance part-ner solutions.

1) Reverse Logistics SolutionsReuse, remanufacture and recover materials or used products to avoid waste, utilize recycled materials and open up new market opportunities. Reduced cost and landfill/disposal taxes Improved separation and recovery Access to raw material feedstock

2) Producer responsibilityExtensive knowledge of producer respon-sibility legislation leveraged to ensure you meet all legal and compliance obligations: Cost-effective legal compliance and

brand protection Validation and discharge of legal

obligations Benchmarking and best practice advice

3) Lead compliance partnerForm partnerships with target global customers. Enhanced environmental performance and brand image through Supply chain environmental

optimization Real estate/fleet energy efficiency Customer and employee engagement

Optimization 12

GREEN LOGISTICS IS POSSIBLE

Back in 2008, we showed the world just how we planned to go green,

becoming the first global logistics company to set a quantitative and ambi-

tious climate protection target to improve our carbon efficiency by 30%

over 2007 levels by the year 2020. As the world’s leading logistics company,

we knew it was time to lead the way – and become an environmental

protection pioneer. Thanks to our GoGreen environmental protection pro-

gram, we’re well over halfway towards achieving our goal, having already

improved our efficiency by 23% by 2014.

With regard to carbon efficiency, two guiding principles help us navigate

toward a green future. Burn Less is about reducing energy consumption,

and Burn Clean involves shifting to alternative fuels. And when we com-

bine these principles with our waste management and reverse logistics so-

lutions, we achieve optimum environmental and economic efficiency. These

efforts are complemented by offering options to offset unavoidable carbon

emissions through internationally-recognized climate protection projects.

We want you to join us on our journey and become one of our many part-

ners seeking to make logistics more efficient and eco-friendly. We have de-

veloped a tremendous body of knowledge and experience at the regional,

national and global levels and in all areas of green logistics. And we’re not

stopping there, cooperating with technology partners around the world and

even launching our own innovations. It’s expertise you can benefit from.

Let’s work together to identify the best ways to improve energy efficiency

across your entire supply chain. And don’t just take our word for it. Our

solutions have received a number of awards, and we rank among the top

companies in terms of sustainability and reduced environmental impact.

Leadership 7

12 142 09

CLIMATENEUTRAL

Total quantity of emissions offset

2006 1,014 tonnes CO2 offset

2014 248,570 tonnes CO2e offset

1st

GOGREENLOGISTICS

TARGET

30%Deutsche Post DHL Group

Carbon Efficiency Index

(Index points)

1st global logistics company with carbon efficiency target

2007 / 0

2014 / 23

2020 / 30

GREEN ROADTRANSPORT

Burn less - Aerodynamics- Engine modifications- Hybrids

Burn clean- Alternative fuels- Electric vehicles (powered by green electricity)

DPDHL Group's total global green fleet

Green road transport technologies for all purposes

2008 / 544 vehicles 2014 / 11,200 vehicles

1st in industry to develop and produce own fully electric mail and parcel vehicles

ELECTRICFLEET

Covers entire group with multiple parameters- 28 million tonnes CO2

- 220 countries and territories- All transport and logistics activities

- The largest global logistics fleet of fully electric vehicles

- Over 400 fully electric vehicles in operation in 2014

Energy-efficient wood stoves in Lesotho to generate carbon credits for Climate Neutral shipping service

Co-initiator of Green Freight Europe and Green Freight Asia

CEO is a representative in UN High Level Advisory Group on Sustainable Transport

Burn less Energy-efficient lighting, heating and air conditioning

Burn cleanUse of green electricity globally: over 60%

The first zero-to-landfill warehouse

REAL ESTATEGreen real estate technologies for all purposes

CARBON ACCOUNTING ANDCONTROLLINGIndustry leading carbon accounting and controlling system

CLIMATEPROTECTIONPROJECT1st in industry to launch own climate protection project to generate carbon credits

INITIATIVES AND ADVISORYROLES

Road

Air

Rail Real estate

Business travel

Ocean00

1st logistics company to put a Biofuels Guideline in place

Carbon Reportsolutions- Track and Trace- Carbon Estimate Report- Carbon Dashboard

Globally available for all transport and logistics services

AVIATIONCarbon efficiency of own aviation operations increased by 46% in 2014 over 2007 levels

CARBON REPORTSOLUTIONSCarbon Report solutions for all customer needs

46%

60%

1st to market in UK

1st to market in mainland Europe

TEARDROPTRAILERMore than 1,500 teardrop trailers in operation

Carbon neutral product in parcel and express sector in 2006

Componentparts

Sourcing Primary distributionSecondary

distribution

Inputcomponents

Production DHL hub Distributioncentre

Pointof

sale

Ocean

Air

PACKAGING OPTIMIZATION

LOADPROFILE

OPTIMIZATION

ROADFREIGHT

WAREHOUSING

CARRIERSELECTION

MODAL SHIFTINTERMODAL

LOGISTICS CONSULTING & NETWORK

DESIGN

ROUTINGOPTIMIZATION

PRODUCERRESPONSIBILITY

REVERSELOGISTICSSOLUTIONS

Manufacturing

GREEN OPTIMIZATION OPTIONS

You might be surprised by how many ways there are to optimize the en-

ergy efficiency of your supply chain. Opportunities exist at every link in the

chain. There are methods to reduce impacts wherever they are generated

– in your procurement logistics and component warehousing, intra-logistics

and intra-facility transport, product warehousing and distribution, and

reverse logistics.

The path to true optimization is circular, and we take each step with you

to make sure you come full circle. The first step is to define your environ-

mental and business objectives. Then we measure the environmental

impact of your operations. The third step is to combine the transparency

gained in step two with a more in-depth analysis to locate the greatest

savings potential and identify where we can work with you to achieve the

biggest improvements in the least amount of time. We determine concrete

improvement measures and, where possible, make sure that the success

of these measures can be quantified and compared to both previously

defined and future environmental targets. We align ourselves with your

environmental and economic objectives, and support you throughout the

optimization process.

10

Want to reduce footprint to meet environmental targets?

Need to fulfill GHG regulatory or internal corporate reporting requirements?

Want immediate and visible carbon impact?

Want to stand out in the market via green leadership projects?

To circular economy –Improve environmental performance

Want to improve cost efficiency?

Dynamic web-based

tool for high level supply

chain

Want a better understanding of your carbon impact?

CARBONDASH-BOARD

Offset emissions via DPDHL Group's portfolio of certified climate protection projects

CLIMATENEUTRALSHIPPING

High level supply chain

analysis

QUICKSCAN

Consolidated reporting on trade lane

level

CARBONREPORT

Simple carbon

emissionsreport

CARBONESTIMATEREPORT

Single shipment footprint

report

TRACK &TRACE

REVERSELOGISTICSSOLUTIONS

PRODUCERRESPONSI-

BILITY

LEADCOMPLIANCE

PARTNER

INTERMODAL

MODALSHIFT

ROUTINGOPTIMIZATION

CARRIERSELECTION

OPERATIONAL

TACTICAL

STRATEGIC

CUSTOMERTo sustainable logistics – Improve GHG esp. CO2 efficiency

ROADFREIGHT

PACKAGINGOPTIMIZATION

LOADPROFILE

WAREHOUSING

Want environmentally friendly transport and logistics?

Reuse, remanufacture and recover materials or used products to

avoid waste, utilize recycled mater-ials and open up new markets

OPTIMIZATION

LOGISTICS CONSULTING & NETWORK

DESIGN

CARBON REPORT

CLIMATE NEUTRAL

GREEN OPTIMIZATION

Cost effective legal compliance

and brand protection

Enhance environmental performance

and brand image

Roadmap 9

You’ve evaluated your sustainability activities on page 4, but you’re not

sure where to begin. There are a lot of choices to make. This decision

tree will help you make those choices and navigate the road to sustain-

ability. We offer a wide-ranging product portfolio under the brand name

DHL GOGREEN SOLUTIONS that includes quantifying and optimizing your

carbon footprint, reverse logistics and waste recycling management, to

name a few. We have green solutions along the entire value chain, includ-

ing a path to zero emissions logistics. Follow the branches and you’ll find

what you’re looking for.

YOUR ROADMAP TO GREATER SUSTAINABILITY. YOU CAN START THE JOURNEY ANYTIME.

WE PROVIDE TRANSPARENCY – OFFSETTING – OPTIMIZATION

Create transparency

Track & TraceFollow the progress of your DHL shipment and access transport-related GHG emissions information.

Carbon Estimate ReportHigh-level estimate of GHG emissions. The result is an estimate of the carbon emissions generated during the previous three months.

Carbon ReportIndividualized report on the amount of GHG emissions generated by the transport of your shipments with DHL. This can be done for your company as a whole or as a detailed report by, for example, trade lane, account number, period of time or product.

Quick ScanA tool that quantifies the efficiency of your supply chain and reveals specific “hot spots” where transport efficiency is particularly low.

Carbon DashboardAn online tool that combines the functionalities of the Carbon Report and Quick Scan. In addition, you have the option of simulating various scenarios based on different modes of transportation, product types and shipment sizes, and to calculate the GHG emissions generated by each scenario. The Carbon Dashboard also allows you to integrate data from other logistics providers into the models and export individual reports.

Offset emissions

Climate NeutralOffset unavoidable GHG emissions through investments in internationally recog-nized climate protection projects. The GHG savings achieved through these projects can be traded as carbon credits based on the UN’s Clean Development Mechanism, allowing 100%-offset of transport-related emissions. The emissions calculation and offset system undergoes an annual third-party verification process.

Optimize environmental footprint

Green OptimizationWe offer a number of options to reduce greenhouse gas emissions, waste or other environmental impacts, offering additional savings potential beyond what most companies can do by themselves. (See following pages for more details.)

12 142 09

CLIMATENEUTRAL

Total quantity of emissions offset

2006 1,014 tonnes CO2 offset

2014 248,570 tonnes CO2e offset

1st

GOGREENLOGISTICS

TARGET

30%Deutsche Post DHL Group

Carbon Efficiency Index

(Index points)

1st global logistics company with carbon efficiency target

2007 / 0

2014 / 23

2020 / 30

GREEN ROADTRANSPORT

Burn less - Aerodynamics- Engine modifications- Hybrids

Burn clean- Alternative fuels- Electric vehicles (powered by green electricity)

DPDHL Group's total global green fleet

Green road transport technologies for all purposes

2008 / 544 vehicles 2014 / 11,200 vehicles

1st in industry to develop and produce own fully electric mail and parcel vehicles

ELECTRICFLEET

Covers entire group with multiple parameters- 28 million tonnes CO2

- 220 countries and territories- All transport and logistics activities

- The largest global logistics fleet of fully electric vehicles

- Over 400 fully electric vehicles in operation in 2014

Energy-efficient wood stoves in Lesotho to generate carbon credits for Climate Neutral shipping service

Co-initiator of Green Freight Europe and Green Freight Asia

CEO is a representative in UN High Level Advisory Group on Sustainable Transport

Burn less Energy-efficient lighting, heating and air conditioning

Burn cleanUse of green electricity globally: over 60%

The first zero-to-landfill warehouse

REAL ESTATEGreen real estate technologies for all purposes

CARBON ACCOUNTING ANDCONTROLLINGIndustry leading carbon accounting and controlling system

CLIMATEPROTECTIONPROJECT1st in industry to launch own climate protection project to generate carbon credits

INITIATIVES AND ADVISORYROLES

Road

Air

Rail Real estate

Business travel

Ocean00

1st logistics company to put a Biofuels Guideline in place

Carbon Reportsolutions- Track and Trace- Carbon Estimate Report- Carbon Dashboard

Globally available for all transport and logistics services

AVIATIONCarbon efficiency of own aviation operations increased by 46% in 2014 over 2007 levels

CARBON REPORTSOLUTIONSCarbon Report solutions for all customer needs

46%

60%

1st to market in UK

1st to market in mainland Europe

TEARDROPTRAILERMore than 1,500 teardrop trailers in operation

Carbon neutral product in parcel and express sector in 2006

GOING FROM YELLOW TO GREEN

Componentparts

Sourcing Primary distributionSecondary

distribution

Inputcomponents

Production DHL hub Distributioncentre

Pointof

sale

Ocean

Air

PACKAGING OPTIMIZATION

LOADPROFILE

OPTIMIZATION

ROADFREIGHT

WAREHOUSING

CARRIERSELECTION

MODAL SHIFTINTERMODAL

LOGISTICS CONSULTING & NETWORK

DESIGN

ROUTINGOPTIMIZATION

PRODUCERRESPONSIBILITY

REVERSELOGISTICSSOLUTIONS

Manufacturing

FROM LINEAR TO CIRCULAR – GREEN OPTIMIZATION IN ACTIONOur optimization toolbox covers the entire logistics supply chain.

Road Freight Warehousing Network, Product and Carrier Management

Envirosolutions

Objective:Reduce CO2 emissions in road freight.

Objective:Reduce CO2 emissions in warehousing.

Objective:Minimize the carbon impact in supply chains.

Objective:Improve environmental performance beyond CO2 by reducing waste and applying circular economy principles.

What we can do:Innovative green transport technologies to reduce CO2 emissions.

What we can do:Innovative green warehousing technolo-gies to reduce CO2 emissions.

What we can do:Optimize processes and supply chains to improve network efficiency.

What we can do:Integrate environmental and logistics solutions to ensure environmental com-pliance and sustainable business success.

How we do it:We reduce your emissions through efficiency gains (burn less) and more environmentally friendly energy sources (burn clean).

In general, this involves: Use of various innovative technologies

for trucks and trailers Use of alternative fuels and electricity

Green road freight solutions vary based on operational requirements: Long haul: Even small efficiency gains

that apply the “burn less” principle can yield significant benefits due to high mileage and volumes. Short haul: The “burn clean” principle

achieves cleaner air and less noise in the city for what are typically pickup and delivery operations. This is where your customers really “see and feel” your green efforts.

How we do it:We reduce your emissions through efficiency gains (burn less) and more environmentally friendly energy sources (burn clean).

In general, this involves: Use of various innovative technologies

for warehouses Use of electricity from renewable

sources

The energy efficiency of warehouses can be improved mainly in two areas:

Lighting: Use energy-saving lighting Install lighting motion sensors Introduce electrically powered

equipment Innovative power generation

Heating: Apply new highly efficient heating/

cooling technologies Modernize heating control

How we do it:We advise and implement operational, tactical and strategic action to optimize the supply chain network.

Operational: Optimization of load profile (e.g.

capacity optimization of vehicles) Optimization of packaging profile

(e.g. capacity optimization of packages) and materials

Tactical: Intermodal solutions and modal shift Efficient transport routing and

optimization Carrier selection

Strategic: Carbon-efficient logistics consulting

and network design optimization

How we do it:We implement reverse logistics, producer responsibility and lead compliance part-ner solutions.

1) Reverse Logistics SolutionsReuse, remanufacture and recover materials or used products to avoid waste, utilize recycled materials and open up new market opportunities. Reduced cost and landfill/disposal taxes Improved separation and recovery Access to raw material feedstock

2) Producer responsibilityExtensive knowledge of producer respon-sibility legislation leveraged to ensure you meet all legal and compliance obligations: Cost-effective legal compliance and

brand protection Validation and discharge of legal

obligations Benchmarking and best practice advice

3) Lead compliance partnerForm partnerships with target global customers. Enhanced environmental performance and brand image through Supply chain environmental

optimization Real estate/fleet energy efficiency Customer and employee engagement

Optimization 12

12 142 09

CLIMATENEUTRAL

Total quantity of emissions offset

2006 1,014 tonnes CO2 offset

2014 248,570 tonnes CO2e offset

1st

GOGREENLOGISTICS

TARGET

30%Deutsche Post DHL Group

Carbon Efficiency Index

(Index points)

1st global logistics company with carbon efficiency target

2007 / 0

2014 / 23

2020 / 30

GREEN ROADTRANSPORT

Burn less - Aerodynamics- Engine modifications- Hybrids

Burn clean- Alternative fuels- Electric vehicles (powered by green electricity)

DPDHL Group's total global green fleet

Green road transport technologies for all purposes

2008 / 544 vehicles 2014 / 11,200 vehicles

1st in industry to develop and produce own fully electric mail and parcel vehicles

ELECTRICFLEET

Covers entire group with multiple parameters- 28 million tonnes CO2

- 220 countries and territories- All transport and logistics activities

- The largest global logistics fleet of fully electric vehicles

- Over 400 fully electric vehicles in operation in 2014

Energy-efficient wood stoves in Lesotho to generate carbon credits for Climate Neutral shipping service

Co-initiator of Green Freight Europe and Green Freight Asia

CEO is a representative in UN High Level Advisory Group on Sustainable Transport

Burn less Energy-efficient lighting, heating and air conditioning

Burn cleanUse of green electricity globally: over 60%

The first zero-to-landfill warehouse

REAL ESTATEGreen real estate technologies for all purposes

CARBON ACCOUNTING ANDCONTROLLINGIndustry leading carbon accounting and controlling system

CLIMATEPROTECTIONPROJECT1st in industry to launch own climate protection project to generate carbon credits

INITIATIVES AND ADVISORYROLES

Road

Air

Rail Real estate

Business travel

Ocean00

1st logistics company to put a Biofuels Guideline in place

Carbon Reportsolutions- Track and Trace- Carbon Estimate Report- Carbon Dashboard

Globally available for all transport and logistics services

AVIATIONCarbon efficiency of own aviation operations increased by 46% in 2014 over 2007 levels

CARBON REPORTSOLUTIONSCarbon Report solutions for all customer needs

46%

60%

1st to market in UK

1st to market in mainland Europe

TEARDROPTRAILERMore than 1,500 teardrop trailers in operation

Carbon neutral product in parcel and express sector in 2006

GOING FROM YELLOW TO GREEN

Componentparts

Sourcing Primary distributionSecondary

distribution

Inputcomponents

Production DHL hub Distributioncentre

Pointof

sale

Ocean

Air

PACKAGING OPTIMIZATION

LOADPROFILE

OPTIMIZATION

ROADFREIGHT

WAREHOUSING

CARRIERSELECTION

MODAL SHIFTINTERMODAL

LOGISTICS CONSULTING & NETWORK

DESIGN

ROUTINGOPTIMIZATION

PRODUCERRESPONSIBILITY

REVERSELOGISTICSSOLUTIONS

Manufacturing

FROM LINEAR TO CIRCULAR – GREEN OPTIMIZATION IN ACTIONOur optimization toolbox covers the entire logistics supply chain.

Road Freight Warehousing Network, Product and Carrier Management

Envirosolutions

Objective:Reduce CO2 emissions in road freight.

Objective:Reduce CO2 emissions in warehousing.

Objective:Minimize the carbon impact in supply chains.

Objective:Improve environmental performance beyond CO2 by reducing waste and applying circular economy principles.

What we can do:Innovative green transport technologies to reduce CO2 emissions.

What we can do:Innovative green warehousing technolo-gies to reduce CO2 emissions.

What we can do:Optimize processes and supply chains to improve network efficiency.

What we can do:Integrate environmental and logistics solutions to ensure environmental com-pliance and sustainable business success.

How we do it:We reduce your emissions through efficiency gains (burn less) and more environmentally friendly energy sources (burn clean).

In general, this involves: Use of various innovative technologies

for trucks and trailers Use of alternative fuels and electricity

Green road freight solutions vary based on operational requirements: Long haul: Even small efficiency gains

that apply the “burn less” principle can yield significant benefits due to high mileage and volumes. Short haul: The “burn clean” principle

achieves cleaner air and less noise in the city for what are typically pickup and delivery operations. This is where your customers really “see and feel” your green efforts.

How we do it:We reduce your emissions through efficiency gains (burn less) and more environmentally friendly energy sources (burn clean).

In general, this involves: Use of various innovative technologies

for warehouses Use of electricity from renewable

sources

The energy efficiency of warehouses can be improved mainly in two areas:

Lighting: Use energy-saving lighting Install lighting motion sensors Introduce electrically powered

equipment Innovative power generation

Heating: Apply new highly efficient heating/

cooling technologies Modernize heating control

How we do it:We advise and implement operational, tactical and strategic action to optimize the supply chain network.

Operational: Optimization of load profile (e.g.

capacity optimization of vehicles) Optimization of packaging profile

(e.g. capacity optimization of packages) and materials

Tactical: Intermodal solutions and modal shift Efficient transport routing and

optimization Carrier selection

Strategic: Carbon-efficient logistics consulting

and network design optimization

How we do it:We implement reverse logistics, producer responsibility and lead compliance part-ner solutions.

1) Reverse Logistics SolutionsReuse, remanufacture and recover materials or used products to avoid waste, utilize recycled materials and open up new market opportunities. Reduced cost and landfill/disposal taxes Improved separation and recovery Access to raw material feedstock

2) Producer responsibilityExtensive knowledge of producer respon-sibility legislation leveraged to ensure you meet all legal and compliance obligations: Cost-effective legal compliance and

brand protection Validation and discharge of legal

obligations Benchmarking and best practice advice

3) Lead compliance partnerForm partnerships with target global customers. Enhanced environmental performance and brand image through Supply chain environmental

optimization Real estate/fleet energy efficiency Customer and employee engagement

Optimization 12

GREEN LOGISTICS IS POSSIBLE

Back in 2008, we showed the world just how we planned to go green,

becoming the first global logistics company to set a quantitative and ambi-

tious climate protection target to improve our carbon efficiency by 30%

over 2007 levels by the year 2020. As the world’s leading logistics company,

we knew it was time to lead the way – and become an environmental

protection pioneer. Thanks to our GoGreen environmental protection pro-

gram, we’re well over halfway towards achieving our goal, having already

improved our efficiency by 23% by 2014.

With regard to carbon efficiency, two guiding principles help us navigate

toward a green future. Burn Less is about reducing energy consumption,

and Burn Clean involves shifting to alternative fuels. And when we com-

bine these principles with our waste management and reverse logistics so-

lutions, we achieve optimum environmental and economic efficiency. These

efforts are complemented by offering options to offset unavoidable carbon

emissions through internationally-recognized climate protection projects.

We want you to join us on our journey and become one of our many part-

ners seeking to make logistics more efficient and eco-friendly. We have de-

veloped a tremendous body of knowledge and experience at the regional,

national and global levels and in all areas of green logistics. And we’re not

stopping there, cooperating with technology partners around the world and

even launching our own innovations. It’s expertise you can benefit from.

Let’s work together to identify the best ways to improve energy efficiency

across your entire supply chain. And don’t just take our word for it. Our

solutions have received a number of awards, and we rank among the top

companies in terms of sustainability and reduced environmental impact.

Leadership 7

12 142 09

CLIMATENEUTRAL

Total quantity of emissions offset

2006 1,014 tonnes CO2 offset

2014 248,570 tonnes CO2e offset

1st

GOGREENLOGISTICS

TARGET

30%Deutsche Post DHL Group

Carbon Efficiency Index

(Index points)

1st global logistics company with carbon efficiency target

2007 / 0

2014 / 23

2020 / 30

GREEN ROADTRANSPORT

Burn less - Aerodynamics- Engine modifications- Hybrids

Burn clean- Alternative fuels- Electric vehicles (powered by green electricity)

DPDHL Group's total global green fleet

Green road transport technologies for all purposes

2008 / 544 vehicles 2014 / 11,200 vehicles

1st in industry to develop and produce own fully electric mail and parcel vehicles

ELECTRICFLEET

Covers entire group with multiple parameters- 28 million tonnes CO2

- 220 countries and territories- All transport and logistics activities

- The largest global logistics fleet of fully electric vehicles

- Over 400 fully electric vehicles in operation in 2014

Energy-efficient wood stoves in Lesotho to generate carbon credits for Climate Neutral shipping service

Co-initiator of Green Freight Europe and Green Freight Asia

CEO is a representative in UN High Level Advisory Group on Sustainable Transport

Burn less Energy-efficient lighting, heating and air conditioning

Burn cleanUse of green electricity globally: over 60%

The first zero-to-landfill warehouse

REAL ESTATEGreen real estate technologies for all purposes

CARBON ACCOUNTING ANDCONTROLLINGIndustry leading carbon accounting and controlling system

CLIMATEPROTECTIONPROJECT1st in industry to launch own climate protection project to generate carbon credits

INITIATIVES AND ADVISORYROLES

Road

Air

Rail Real estate

Business travel

Ocean00

1st logistics company to put a Biofuels Guideline in place

Carbon Reportsolutions- Track and Trace- Carbon Estimate Report- Carbon Dashboard

Globally available for all transport and logistics services

AVIATIONCarbon efficiency of own aviation operations increased by 46% in 2014 over 2007 levels

CARBON REPORTSOLUTIONSCarbon Report solutions for all customer needs

46%

60%

1st to market in UK

1st to market in mainland Europe

TEARDROPTRAILERMore than 1,500 teardrop trailers in operation

Carbon neutral product in parcel and express sector in 2006

Componentparts

Sourcing Primary distributionSecondary

distribution

Inputcomponents

Production DHL hub Distributioncentre

Pointof

sale

Ocean

Air

PACKAGING OPTIMIZATION

LOADPROFILE

OPTIMIZATION

ROADFREIGHT

WAREHOUSING

CARRIERSELECTION

MODAL SHIFTINTERMODAL

LOGISTICS CONSULTING & NETWORK

DESIGN

ROUTINGOPTIMIZATION

PRODUCERRESPONSIBILITY

REVERSELOGISTICSSOLUTIONS

Manufacturing

GREEN OPTIMIZATION OPTIONS

You might be surprised by how many ways there are to optimize the en-

ergy efficiency of your supply chain. Opportunities exist at every link in the

chain. There are methods to reduce impacts wherever they are generated

– in your procurement logistics and component warehousing, intra-logistics

and intra-facility transport, product warehousing and distribution, and

reverse logistics.

The path to true optimization is circular, and we take each step with you

to make sure you come full circle. The first step is to define your environ-

mental and business objectives. Then we measure the environmental

impact of your operations. The third step is to combine the transparency

gained in step two with a more in-depth analysis to locate the greatest

savings potential and identify where we can work with you to achieve the

biggest improvements in the least amount of time. We determine concrete

improvement measures and, where possible, make sure that the success

of these measures can be quantified and compared to both previously

defined and future environmental targets. We align ourselves with your

environmental and economic objectives, and support you throughout the

optimization process.

10

BEST PRACTICES: THE MEASURES, THE CHALLENGES, THE RESULTS Ever since we launched our GoGreen program in 2008, we have worked closely with all kinds of companies, large and small, to help them optimize their logistics and make them greener.

Climate NeutralMeasure(s) DHL Express offered global Climate Neutral shipment services to customer, which included investments

in climate-protection projects Customer is the first financial institution to use DHL’s GoGreen service worldwide

Challenge(s) Make 95% of the bank‘s international courier services climate neutral in a step-by-step process

Environmental impact 1,900 tonnes of annual CO2 savings

Additional/Business benefits Customer enhanced its reputation vis-à-vis clients Low effort to implement because no change in operations required Climate protection projects initiated to offset emissions benefit local populations

Customer profile

SectorFinancial Services

LocationWorldwide

Carbon DashboardMeasure(s) Performed baseline CO2e calculation and analyzed key contributors Developed carbon monitoring solution via Carbon Dashboard which covers data from DHL and five

other logistic service providers Reported customer’s product transportation emissions on a global scale and verified by third party

Challenge(s) Integrate third-party data into Carbon Dashboard analysis

Environmental impact N/A

Additional/Business benefits Transparency based on CO2e baseline for benchmarking and target setting Improved carbon visibility and monitoring via Carbon Dashboard Successfully verified customer’s product transportation emissions Identified carbon contributors and reduction approaches Access to expertise and knowledge

Customer profile

SectorTechnology

LocationChina

HERE ARE A FEW EXAMPLES:

Road FreightMeasure(s) Deployed 399 aerodynamically optimized teardrop trailer trucks Mimics the perfect aerodynamic lines of a teardrop and increases internal load space Specially designed roof with full-length curve and corners rounded off to improve air flow Fuel efficiency monitored through upgraded telematics, designed to raise awareness of

efficient driving A speed reduction program limits the driving speed of the articulated truck fleet to 85kph/53mph,

leading to improved fuel efficiency and safety

Challenge(s) Finance cost for teardrop trailers upfront Obtain approval/licensing for first trailers Align loading operations with teardrop trailer requirements

Environmental impact Customer’s 399 teardrop trailers will reduce its carbon footprint by more than 2,000 tonnes

every year

Additional/Business benefits The unique aerodynamic shape of these trailers generates fuel savings of approx. 10% and a 10% increase

in cubic capacity

Customer profile

SectorRetail

LocationUK

WarehousingMeasure(s) Built a 250,000-square-foot sustainable distribution center with environmentally responsible design

elements and efficient operating systems Included energy-efficient lighting, sky lights, low-flow plumbing, a white roof system, storm water

runoff containment, and a recycling program

Challenge(s) Collaboration with local city authorities and the local Development Foundation

Environmental impact Reduced energy and water consumption Reduced costs and greenhouse gas emissions Healthier environment for residents, workers and the local community

Additional/Business benefits Distribution center achieved Leadership in Energy and Environmental Design (LEED) certification from

the U.S. Green Building Council

Customer profile

SectorMulti-sector

LocationUSA

IntermodalMeasure(s) Shifted ocean (Shanghai to Hamburg) and air freight (Shanghai to Billund) to intermodal transport

from China to Denmark Consolidated approx. 12 million tonnes into two 40’ containers per week Intermodal transport now runs road from Shanghai to Suzhou, rail from Suzhou to Warsaw and road

from Warsaw to Haderslev

Challenge(s) Coordinate and implement a solution that integrates third-party warehouse provider Switch from long-term ocean/air freight solution to innovative, intermodal service that is fairly new

to the market Build on solid customer relationship and devote time needed to manage the switch efficiently

Environmental impact CO2 emissions reduced by more than 50% (approx. 200 tonnes of annual CO2 savings)

Additional/Business benefits Ocean to intermodal reduces transit times and increases reliability (scheduling and transit time) Air to intermodal reduces costs Less than container loads (LCLs) now an option

Customer profile

SectorRetail

LocationDenmark

Climate change is one of mankind’s greatest challenges. If we want

our planet to remain habitable for generations to come, we must work

together to reduce GHG emissions now. As green logistics experts,

we at DHL can ensure that your logistics make an important contribution

to your company’s sustainability while giving you an edge over the

competition. After all, success will increasingly depend on how fast you

are able to develop a resource-optimized business model. Efficient

logistics can take you a major step in that direction.

Now more than ever, consumers are buying “green”. They make

purchasing decisions based on a company’s environmental track record in

addition to product and service quality. And in today’s connected world,

consumers are also more likely to broadcast their experience to the entire

social-media community.

Today’s employees also prefer to be part of environmentally and socially

responsible organizations. The world’s most sought-after employers have

clearly defined environmental targets and actively take steps towards

achieving them. A green logistics solution can help you meet some of

those targets and make you a more attractive employer.

Going green also makes good business sense. A sustainable business

model is something that today’s investors now expect, not to mention

banks, insurance companies and other stakeholders such as rating

agencies, NGOs and governments. Green logistics can play a vital role

in demonstrating that your business is committed to sustainability.

The transport and logistics industry plays a central role in the global

economy and is therefore in a unique position when it comes to the

Earth’s climate. Moving goods by land, sea and air generates a significant

portion of global GHG emissions. Your company’s environmental footprint

includes all of your transport and logistics activities, even if outsourced.

We offer a host of green solutions that can help you to improve your

environmental footprint from transport and logistics processes as well as

make your logistics more efficient and economical. Start with the

sustainability self-assessment on the opposite page and let’s get to know

your needs.

A SUSTAINABLE OPPORTUNITY

Sustainability

7. If you checked CO2e, do you assess your CO2e emissions according

to the Greenhouse Gas (GHG) Protocol and what scopes are included

in your assessment?

8. What proportion of your carbon footprint is due to transport and

logistics?

Proportion in %:

Not sure, but probably:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9. When you choose a logistics provider, how important is a

company’s environmental track record?

0 1 2 3 4 5 6 7 8 9 10

10. Are you satisfied with your logistics provider’s environmental

performance and the speed of improvement?

0 1 2 3 4 5 6 7 8 9 10

Scope 1: All direct GHG emissions from sources that are owned or controlled

by your company (e.g. emissions from facilities, vehicles, etc.)

Scope 2: Indirect GHG emissions from consumption of purchased electricity,

heat or steam

Scope 3: Other indirect emissions, such as the extraction and production of

purchased materials and fuels, transport/logistics-related activities in vehicles

not owned or controlled by your company, electricity-related activities not

covered in Scope 2, outsourced activities, waste disposal, etc.

Not important Very important

None Completely

No, and I see no improvement Yes, and I see constant and measureable improvement

5

1 Deutsche Post AG; Delivering Tomorrow: Towards Sustainable Logistics; 20102 PWC; Rio+20: Seven out of ten CEO’s would take action on global sustainability challenges; 2012 3 CDP; Global 500 Climate Change Report; 20134 Grant Thornton; International Business Report, Corporate Social Responsibility: Beyond Financials; 20145 Kelly Services Inc.; Kelly Global Workforce Index; 20096 Accounting for Responsibility; The Value of Extra Financial Disclosure; Accounting for Sustainability; 2011

13 14

BEST PRACTICES: THE MEASURES, THE CHALLENGES, THE RESULTS Ever since we launched our GoGreen program in 2008, we have worked closely with all kinds of companies, large and small, to help them optimize their logistics and make them greener.

Climate NeutralMeasure(s) DHL Express offered global Climate Neutral shipment services to customer, which included investments

in climate-protection projects Customer is the first financial institution to use DHL’s GoGreen service worldwide

Challenge(s) Make 95% of the bank‘s international courier services climate neutral in a step-by-step process

Environmental impact 1,900 tonnes of annual CO2 savings

Additional/Business benefits Customer enhanced its reputation vis-à-vis clients Low effort to implement because no change in operations required Climate protection projects initiated to offset emissions benefit local populations

Customer profile

SectorFinancial Services

LocationWorldwide

Carbon DashboardMeasure(s) Performed baseline CO2e calculation and analyzed key contributors Developed carbon monitoring solution via Carbon Dashboard which covers data from DHL and five

other logistic service providers Reported customer’s product transportation emissions on a global scale and verified by third party

Challenge(s) Integrate third-party data into Carbon Dashboard analysis

Environmental impact N/A

Additional/Business benefits Transparency based on CO2e baseline for benchmarking and target setting Improved carbon visibility and monitoring via Carbon Dashboard Successfully verified customer’s product transportation emissions Identified carbon contributors and reduction approaches Access to expertise and knowledge

Customer profile

SectorTechnology

LocationChina

HERE ARE A FEW EXAMPLES:

Road FreightMeasure(s) Deployed 399 aerodynamically optimized teardrop trailer trucks Mimics the perfect aerodynamic lines of a teardrop and increases internal load space Specially designed roof with full-length curve and corners rounded off to improve air flow Fuel efficiency monitored through upgraded telematics, designed to raise awareness of

efficient driving A speed reduction program limits the driving speed of the articulated truck fleet to 85kph/53mph,

leading to improved fuel efficiency and safety

Challenge(s) Finance cost for teardrop trailers upfront Obtain approval/licensing for first trailers Align loading operations with teardrop trailer requirements

Environmental impact Customer’s 399 teardrop trailers will reduce its carbon footprint by more than 2,000 tonnes

every year

Additional/Business benefits The unique aerodynamic shape of these trailers generates fuel savings of approx. 10% and a 10% increase

in cubic capacity

Customer profile

SectorRetail

LocationUK

WarehousingMeasure(s) Built a 250,000-square-foot sustainable distribution center with environmentally responsible design

elements and efficient operating systems Included energy-efficient lighting, sky lights, low-flow plumbing, a white roof system, storm water

runoff containment, and a recycling program

Challenge(s) Collaboration with local city authorities and the local Development Foundation

Environmental impact Reduced energy and water consumption Reduced costs and greenhouse gas emissions Healthier environment for residents, workers and the local community

Additional/Business benefits Distribution center achieved Leadership in Energy and Environmental Design (LEED) certification from

the U.S. Green Building Council

Customer profile

SectorMulti-sector

LocationUSA

IntermodalMeasure(s) Shifted ocean (Shanghai to Hamburg) and air freight (Shanghai to Billund) to intermodal transport

from China to Denmark Consolidated approx. 12 million tonnes into two 40’ containers per week Intermodal transport now runs road from Shanghai to Suzhou, rail from Suzhou to Warsaw and road

from Warsaw to Haderslev

Challenge(s) Coordinate and implement a solution that integrates third-party warehouse provider Switch from long-term ocean/air freight solution to innovative, intermodal service that is fairly new

to the market Build on solid customer relationship and devote time needed to manage the switch efficiently

Environmental impact CO2 emissions reduced by more than 50% (approx. 200 tonnes of annual CO2 savings)

Additional/Business benefits Ocean to intermodal reduces transit times and increases reliability (scheduling and transit time) Air to intermodal reduces costs Less than container loads (LCLs) now an option

Customer profile

SectorRetail

LocationDenmark

Climate change is one of mankind’s greatest challenges. If we want

our planet to remain habitable for generations to come, we must work

together to reduce GHG emissions now. As green logistics experts,

we at DHL can ensure that your logistics make an important contribution

to your company’s sustainability while giving you an edge over the

competition. After all, success will increasingly depend on how fast you

are able to develop a resource-optimized business model. Efficient

logistics can take you a major step in that direction.

Now more than ever, consumers are buying “green”. They make

purchasing decisions based on a company’s environmental track record in

addition to product and service quality. And in today’s connected world,

consumers are also more likely to broadcast their experience to the entire

social-media community.

Today’s employees also prefer to be part of environmentally and socially

responsible organizations. The world’s most sought-after employers have

clearly defined environmental targets and actively take steps towards

achieving them. A green logistics solution can help you meet some of

those targets and make you a more attractive employer.

Going green also makes good business sense. A sustainable business

model is something that today’s investors now expect, not to mention

banks, insurance companies and other stakeholders such as rating

agencies, NGOs and governments. Green logistics can play a vital role

in demonstrating that your business is committed to sustainability.

The transport and logistics industry plays a central role in the global

economy and is therefore in a unique position when it comes to the

Earth’s climate. Moving goods by land, sea and air generates a significant

portion of global GHG emissions. Your company’s environmental footprint

includes all of your transport and logistics activities, even if outsourced.

We offer a host of green solutions that can help you to improve your

environmental footprint from transport and logistics processes as well as

make your logistics more efficient and economical. Start with the

sustainability self-assessment on the opposite page and let’s get to know

your needs.

A SUSTAINABLE OPPORTUNITY

Sustainability

7. If you checked CO2e, do you assess your CO2e emissions according

to the Greenhouse Gas (GHG) Protocol and what scopes are included

in your assessment?

8. What proportion of your carbon footprint is due to transport and

logistics?

Proportion in %:

Not sure, but probably:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9. When you choose a logistics provider, how important is a

company’s environmental track record?

0 1 2 3 4 5 6 7 8 9 10

10. Are you satisfied with your logistics provider’s environmental

performance and the speed of improvement?

0 1 2 3 4 5 6 7 8 9 10

Scope 1: All direct GHG emissions from sources that are owned or controlled

by your company (e.g. emissions from facilities, vehicles, etc.)

Scope 2: Indirect GHG emissions from consumption of purchased electricity,

heat or steam

Scope 3: Other indirect emissions, such as the extraction and production of

purchased materials and fuels, transport/logistics-related activities in vehicles

not owned or controlled by your company, electricity-related activities not

covered in Scope 2, outsourced activities, waste disposal, etc.

Not important Very important

None Completely

No, and I see no improvement Yes, and I see constant and measureable improvement

5

1 Deutsche Post AG; Delivering Tomorrow: Towards Sustainable Logistics; 20102 PWC; Rio+20: Seven out of ten CEO’s would take action on global sustainability challenges; 2012 3 CDP; Global 500 Climate Change Report; 20134 Grant Thornton; International Business Report, Corporate Social Responsibility: Beyond Financials; 20145 Kelly Services Inc.; Kelly Global Workforce Index; 20096 Accounting for Responsibility; The Value of Extra Financial Disclosure; Accounting for Sustainability; 2011

13 14

Please answer the questions below to help us get a better understanding of your company’s current sustainability activities.

SUSTAINABILITY SELF-ASSESSMENT

1. Do you think environmental protection can give your company

a competitive advantage?

2. Does your company have an environmental protection program?

Yes

Yes

No

No

67% of businesses globally consider cost management a key

driver for introducing sustainable business practices.4

67%

50% of investment analysts say that information about resource

consumption is highly relevant.6

50%

87% of job seekers prefer to work for companies that are environmentally and socially responsible.5

87%

87% of CEO’s confirm that safe- guarding their company’s energy

supply is important or very important.2

87%

60% of end consumers mention climate change when asked about the most pressing global issues of our time.1

60%

84% of the world´s largest companies have established, and are pursuing, climate protection programs.384%

6. In what areas do you formally track and assess your performance?

CO2e (CO2 and equivalents)

Waste

Water

Other (please specify)

Preliminary stages ImplementationDefining goals Established

5. What is the current status of your environmental program?

Cost savings

Reduced carbon footprint

Stable supply of materials

Access to new markets

Development of new products

Brand positioning

Competitive advantage

Comply with legislation

Internal reporting/company policy

4. What do you most hope to achieve with the program?

3. If yes, what are the focus areas of your program?

A

B

C

Best Practices 15

Waste Recycling (Envirosolutions)Measure(s) Designed and implemented an innovative in-flight catering and waste solution Installed food driers, which reduced volume of food waste by 70% Benchmarked waste rates Minimized waste to landfill

Challenge(s) Introduction of food waste-drying technology to support the customer’s target of zero waste to landfill

Environmental impact Achieved zero waste to landfill

Additional/Business benefits Food waste transport costs reduced by 70% Significant added value recovered from waste Substantial recycling revenue No landfill taxes Access to waste management expertise

Customer profile

SectorAviation

LocationUK

Logistics Consulting & Network DesignMeasure(s) Reviewed customer’s existing assembly network for one of its finished products to identify key

improvement opport unities with regard to cost and impact on carbon emissions Concluded that, by moving the assembly from southern Europe to northern Germany, the customer

would reduce both its CO2 emissions and costs, despite an increase in ocean freight transports

Challenge(s) Extensive concept phase and data collection/analysis

Environmental impact A 44% reduction in the customer’s CO2 emissions

Additional/Business benefits Transparency in customer’s supply chain as regards lead time and carbon emissions Concrete proposal for a new supply chain network to reduce the cost and improve carbon efficiency of

assembling the finished product

Customer profile

SectorConsumer

LocationGermany/Europe

Producer Responsibility (Envirosolutions)Measure(s) Set up e-waste collection points (Drop Zones) to comply with federal legislation requiring TV and computer

importers to recycle e-waste Provided free nationwide recycling services (Drop Zones), reaching around 97% of Australians Utilized approximately 15 recyclers across all states to reduce transport costs and minimize CO2 emissions Conducted marketing and communications campaign to change customer behavior

Challenge(s) Reach TV and computer recycling targets, which were recently set at 30% (historically 17%) Establish program, set up infrastructure, recruit and audit recyclers, hire personnel in a short timeframe Change consumer behavior surrounding e-waste recycling

Environmental impact 90%+ waste diverted from landfill (90% material recovery rate)

Additional/Business benefits TV and computer recycling targets reached Every state in Australia received a collection/recycling service for the first time 49 customers signed up in four months (speed to market)

Customer profile

SectorTechnology

LocationAustralia

4

GOGREEN SOLUTIONS

Produce

Cons

ume

Reuse

GOGREEN

Deutsche Post AGHeadquartersCorporate Communications and Responsibility53250 BonnGermany www.dhl.com September 2015Mat. No. 675-601-701

Action/Vision 15

°C

YOUR GUIDE TO GREEN LOGISTICSAre you interested in making your logistics greener and more sustainable?

If so, you’re in good company. Today’s companies, large and small, are

looking for ways to go green. It’s time for you to join them.

The DHL GOGREEN SOLUTIONS workbook is designed to help you discover

how you can be part of a greener future by developing and implementing

logistics solutions that conserve resources and improve both environmental

and economic efficiency. It will guide you through the entire process, from

evaluating your own logistics activities to outlining your green needs and

visions, to identifying potential courses of action and areas of improvement.

It will help you ask the right questions to find the right green solutions to

best meet your needs. So mark it up, scribble notes in the margins, reference

it often – it’s your tool!

And we’re here to help, too. This workbook provides the roadmap, but our

logistics experts can help you navigate it. Don’t hesitate to contact us at any

phase of the process.

Now let’s get started on making your supply chain greener!

Introduction 3

Action 1: Action 2:

NOW IT’S YOUR TURN. WHAT SHOULD BE OUR FIRST COURSE OF ACTION?Your DHL GOGREEN SOLUTIONS

Your ProfileYour Profile

Geographic region

Location

Site/Lane

Customer’s division

Next steps and timing

Information needs

Business objectives/ Green motivations

Description of current logistics solution

Geographic region

Location

Site/Lane

Customer’s division

Next steps and timing

Information needs

Business objectives/ Green motivations

Description of current logistics solution

16

REDU

CED CARBON FOOTPRINT

PROCESS OPTIMIZED

NEW

PRO

DU

CTS & BRAND STRENGTHENED

NE

W MARKETS ACCESSED

COST

S, E

NERGY, WATER & TIME SAVIN

GS

WASTE MINIMIZED

SUS TA I NA B L E CHANGE

TIME

C O M P E T I T I V E A D VA N TA G E

A LOOK INTO YOUR GREEN FUTURE

Minerals

Prod

uce

Consume

ReuseA B

Up 32% by 2030

Food

2030

Today

Water

Oil

Natural gas

Coal

Coal

Oil Gas

CONSUMPTION &CLIMATE CHANGE

RESOURCESENERGY

1.8bntoday

4.8bn2030

2.5 times greater industrial

capacity by 2030

Up 41%by 2030

SOLUTIONSThe logistics industry can and must deliver

sustainable, environmentally

friendly solutions that improve

efficiency and reduce GHG emissions

The result: rising sea levels, melting ice

packs, shifting climate zones,

and more extreme weather events that lead to geopolitical

instability 4

Another century of ‘business as usual’

could cause the Earth's median temperature to

increase 4°C or more 4

GHG emissions are growing rapidly 4

Energy consumption from fossil

fuels continues to increase 2

We consume more of the Earth’s resources than ever before, and the trend is rising 3

Today's linear ‘take-make-dispose’ economy simply cannot be sustained 5

Global resource extraction is expected to double in the next decade 3

Only about half of waste in Europe is reused, recycled or composted 6

Humans now consume more than the productivity of Earth’s ecosystem can sustain

More people and commerce mean we use more energy 2

Increased production means a greater need for natural resources 1

A growing middle class means higher demand for goods and services 1

SOLUTIONSThe economy can and must deliver sustainable solutions that improve performance, reduce waste and facilitate a circular economy 5

°C

1 OECD Development Centre, Homi Kharas; The Emerging Middle Class in Developing Countries; Working Paper No. 285; January 2010

2 BP Energy Outlook 2035; January 20143 OECD, Behrens; WMM Global Insight; Ellen MacArthur

Foundation Circular Economy Team; 20074 IPCC; Summary for Policymakers (IPCC AR5, Working

Group III); 20145 Ellen MacArthur Foundation; Towards the Circular

Economy; Economic and Business Rationale for an Accelerated Transition; 2013

6 Eurostat News Release; Environment in the EU28; March 2014

YOUR GUIDE TO GREEN LOGISTICSAre you interested in making your logistics greener and more sustainable?

If so, you’re in good company. Today’s companies, large and small, are

looking for ways to go green. It’s time for you to join them.

The DHL GOGREEN SOLUTIONS workbook is designed to help you discover

how you can be part of a greener future by developing and implementing

logistics solutions that conserve resources and improve both environmental

and economic efficiency. It will guide you through the entire process, from

evaluating your own logistics activities to outlining your green needs and

visions, to identifying potential courses of action and areas of improvement.

It will help you ask the right questions to find the right green solutions to

best meet your needs. So mark it up, scribble notes in the margins, reference

it often – it’s your tool!

And we’re here to help, too. This workbook provides the roadmap, but our

logistics experts can help you navigate it. Don’t hesitate to contact us at any

phase of the process.

Now let’s get started on making your supply chain greener!

Introduction 3

Action 1: Action 2:

NOW IT’S YOUR TURN. WHAT SHOULD BE OUR FIRST COURSE OF ACTION?Your DHL GOGREEN SOLUTIONS

Your ProfileYour Profile

Geographic region

Location

Site/Lane

Customer’s division

Next steps and timing

Information needs

Business objectives/ Green motivations

Description of current logistics solution

Geographic region

Location

Site/Lane

Customer’s division

Next steps and timing

Information needs

Business objectives/ Green motivations

Description of current logistics solution

16

GOGREEN SOLUTIONS

Prod

uce

Consume

Reuse

GOGREEN

Deutsche Post AGHeadquartersCorporate Communications and Responsibility53250 BonnGermany www.dhl.com September 2015Mat. No. 675-601-701

Action/Vision15

°C