Bloomberg Businessweek (North America)
TWENTY-FIVE PERCENT LOWER AND COUNTING
DHL leads by example in the industry-wide reduction of global greenhouse gas emissions
The rapidly growing transport and logistics industry is responsible for 23 percent of greenhouse gas emissions, and Deutsche Post DHL Group, the world’s largest logistics company, is determined to be a leader in reducing the industry’s impact on the environment.
“The sector is a major contributor to global carbon emissions,” says Frank Appel, CEO, Deutsche Post DHL Group. “So it was only natural that we would focus on climate protection in our corporate responsibility strategy.”
In 2008, the Bonn, Germany-based FRPSDQ\ EHFDPH WKH ÀUVW DPRQJ LWV SHHUV WR address climate protection. It set a target to reduce greenhouse gas emissions—for every letter, parcel, ton of freight and warehouse space—30 percent by 2020 over 2007 levels. Having already reported a 25 percent reduction, DHL appears well on its way to achieving its goals.
Such a sustainability strategy also makes economic sense, Appel says. *UHDWHU HIÀFLHQF\ DQG ORZHU IXHO XVDJH bring down costs, and being proactive now can mitigate potential future costs from regulatory or legal risks.
“Sustainability is a mutually inclusive concept. We cannot create jobs, pay taxes, invest and grow in a competitive marketSODFH ZLWKRXW GHOLYHULQJ SURÀWV μ KH H[SODLQV “We also depend on healthy and prosperous societies to provide an environment that is conducive to growth.”
The logistics giant has also begun an DJJUHVVLYH H[SDQVLRQ LQWR HOHFWULÀHG YHKLFOHV to add to the 13,500 vehicles in its network that use electric, hybrid and other fuel options or environmentally friendly features.
The company jointly developed what it calls the “Tesla of commercial vehicles”— the Streetscooter—for urban deliveries, and bought the company that produces them. This year, it plans to manufacture 2,000 for XVH LQ LWV LQQHU FLW\ ÁHHW RSHUDWLRQV
Customers have responded well to the company’s Gogreen initiative that combines measures to address its own carbon footprint with specialized tools—such as carbon calculators and green optimization programs— that enable customers to measure and address carbon in their own supply chains.
“While it was a pioneering step in 2008, limiting carbon emissions has increasingly become a normalized feature of doing business,” Appel says. “I believe there is industry-wide recognition of the need to be environmentally conscious today.”
Because it believes that climate change is too great a challenge for any one player, DHL aims to set benchmarks for the industry. Doing so means collaborating to drive the industry-wide reduction of global emissions and working with organizations such as the U.k.-based Cdp—formerly the Carbon Disclosure Project—and Green Freight Asia to incentivize companies to measure and disclose environmental information.
“For the past six years, Deutsche Post DHL Group has shown its leadership on climate disclosure to their key customers through CDP’S supply chain program,” says Dexter Galvin, Head of Supply Chain at CDP. “They have consistently scored highly on disclosure, and in 2016 joined our prestigious Climate A-list.”
:DONLQJ WKH WDON $SSHO ÀQGV LV WKH best way of demonstrating the company’s sustainability strategy to customers and other stakeholders, including employees, customers and investors. Getting them on board also means illustrating how transport impacts their carbon footprint, and how to DFKLHYH JUHDWHU HIÀFLHQFLHV
“By offering customers carbon-neutral shipping solutions, our Gogreen program JLYHV WKHP FRQÀGHQFH WKDW WKH\ FDQ LQFRUporate sustainable supply chain practices into their own offerings,” Appel explains. “Whether it’s through reliability, time savings or access to new marketplaces, our services are an enabler for customers and provide added value for their products.”