• 1 Purpose of Sustainability at DPDHL Group

  • 2 Environment at DPDHL Group (E)

  • 3 Social Responsibility at DPDHL Group (S)

  • 4 Governance at DPDHL Group (G)

Sustainability is one of the four addressable global mega trends with rising attention by all

Sustainability is fully integrated into our Three Bottom Lines

Our Purpose

Connecting People. Improving Lives.

Our Values Respect & Results

Our Mission

Excellence. Simply delivered. Along the three bottom lines in a sustainable way

Governance structures to minimize risks and ensure high ethical & ecological standards

Our commitment to the UN Sustainable Development Goals

We have selected five focus SDGs, reflecting our company's responsibility and best possible impact on solving sustainable development challenges

We seek to make quality education and lifelong learning opportunities accessible for all

We support growth by facilitating global trade in a

responsible manner

We minimize (transportation-induced) air pollution in cities and support disaster-affected communities

We seek to minimize our business' impact on the environment with our environmental protection program

We collaborate with the UN and other partners to ensure

the sustainable impact of our activities

Sustainability/Responsibility embedded in structures and processes for our sustainability agenda

We aim to continuously improve our

performance and to ensure that we meet

the expectations of the stakeholder groups

that are relevant to us with regard to social

and environmental issues.

1st stage: Supports continuous

improvement, identify new topics early that

could become important for our future

business success.

2nd stage: We work with stakeholder

groups to identify and analyze the material

issues on which our sustainability

disclosures are also based.

DPDHL Group ESG Presentation 2020

Company structures involved in sustainable management

Sustainability Advisory Council

External advise (members from the science, business and politics) for the Sustainability Council

DPDHL Group ESG Presentation 2020

Our sustainability standards are defined by Corporate Center and Global Business Services and documented in Group policies.

The divisions are responsible for aligning customer requirements with our strategic and ethical principles, and for anchoring the Supplier Code of Conduct in their contractual relationships.

Targets from our materiality analysis

E

ENVIRONMENTAL IMPACT

S

SOCIAL IMPACT

G

GOVERNANCE STRUCTURES

The importance of emission targets for the sector

DPDHL Group ESG Presentation 2020

DPDHL Group emissions and targets We are responsible for 0.4% of global greenhouse emissions

Two main focus targets:

Energy efficiency & climate change, and air pollution

Dual Strategy ("burn less & burn clean") Reducing energy/fuel consumption while increasing the use of alternative drive systems and sustainable fuels

Mission 2050 and sub-targets 2025

»2050

» NET ZERO » EMISSIONS

Environmental and climate protection measures 2019

CEX: 50% efficiency improvement by 2025

Efficiency principle and targetCEX Methodology

Footprint

Carbonof DPDHL's serviceEfficiencyIndex

Reference base of DPDHL service

Index development 2019

DPDHL Group carbon emissions by source

29.46

28.95

Scope 1&2

6.57

6.59

22.89

22.36

Scope 3

Total emissions

reduced by 2% to 28.95m t Co²e

Emission intensity (Scopes 1 & 2)

103g CO2e per € revenue vs. 107g in 2018

Total emissions intensity 455g CO2e per € revenue vs 479 g in 2018

2018

2019

Emissions of DPDHL GROUP dedicated aircraft fleet

Aircraft by NOx

Aircraft by Noise Standard

21% of our fleet complies with the highest emission standards

23% of our fleet complies with highest noise regulation standards

DPDHL Group energy consumption in 2019

Group fleet energy Group buildings energy consumption - 23,519 m kwh consumption - 3,139 m kwh

81% of our fuel consumption is attributed to kerosene.

2% of our CO2e come from our approx. 12,600 sites.

Measures:

  • 14 Boeing 777 aircraft ordered in 2018 will replace older planes and will generate roughly 18% less carbon emissions and contribute to improved fuel and emissions efficiency.

  • Increased use of new technologies and the high percentage of renewal energy

Increased use of alternative drive systems up to 13% of our fleet

Alternative drive systems of global vehicles of 103,573

Vehicles by emission class under Euro Norm: 75,638

Electromobility: City logistics concepts

Urban Container Cubes / DHL Cubicyclesfddfsdfsdfsdf

  • The eco-friendly DHL Cubicycle can carry 125-kg containers for inner-city deliveries across several European cities

  • This optimized container format replaces 60% of inner-city vehicle journeys

  • Custom dimensions enable quick and easy transfer across different modes of transport (vehicles or cycles)

  • Container can also be reloaded for outbound shipments, increasing sustainability and enabling circular economy concepts

  • 1 Cubicycle can save up to 8t CO2 emissions per year. 85 Cubicycles already in use

Electromobility: Electric last mile delivery with StreetScooter

StreetScooter

  • 10,802 in use, charged by 13,460 stations

  • 120m km driven = 39,600t CO² saved

  • Guarantee of optimal ergonomics

  • Better visibility conditions and robustness

  • Reduction of CO2, local emissions and noise

  • Hydrogen fuel cells and autonomous driving piloted in 2019

Economics

  • 60-80% less fuel costs

  • 60-80% less maintenance and repair costs

  • Subsidized and no motor vehicle tax in Germany

Local environmental success stories

Buildings (Scope 2)

  • Panama: Photovoltaics provide 82% of the energy required at one of our sites. 2019: -65 t CO2e emissions

  • Finland: Tampere is the site of our first zero-emission facility. Combining photovoltaics with geothermal systems for heating and cooling.

  • Germany: Cologne-Bonn Airport uses an ice energy storage system with a holding capacity of over 1.3 million liters for heating and cooling. In combination with a heat pump and photovoltaics, this system is also entirely emissions free.

Transport (Scope 3)

  • Carrier scorecards: Integrate air and ocean freight subcontractors with our environmental efficiency measures and systematically evaluate their environmental performance.

  • In-Setting: In Sweden, we offer customers the option of supporting climate-friendly transportation for a small surcharge. The mileage of insetting distance due to this option is equivalent to circling the globe 800 times.

Sustainable synthetic fuels: Looking for the next horizon

  • Long-term competitiveness and "right to play"

  • Customers increasingly demand sustainable logistics

  • Economic value lever

  • Power to liquid fuels close to mass market viability

  • Increased availability urgently needed

  • Engagement in initiatives and partnerships necessary

Production of plant-based biofuels should not lead to monocultures and destruction of crop land and rain forests.

One of the world's largest employers

More than half a million people work for Deutsche Post DHL Group in 220 countries and territories.

Workforce numbers remained stable compared to the previous year, testifying to the strength of our position within the postal and logistics services industry even in times of change.

Targets and current status on Social Standards & Processes

DPDHL Group ESG Presentation 2020

Employees by region and "Employee Relations Reviews"

Employee development in 2019

EMPLOYEE ENGAGEMENT 77%: + 1%

ACTIVE LEADERSHIP 78%: + 2%

The questionnaire comprises 41 questions

that are assigned to 10 key performance

indicators (KPIs).

The Performance Enablement Index is also

derived from these questions.

We consult external ratings to shed light on

our own observations and results.

Certified program for employee development

Certified training sessions are run by employees and managers who have completed special facilitator training. The effects are:

  • • Create common understanding of values, DPDHL Group setup and its strategy

  • • Increase learning effect and impact of the training

  • • Foster a sense of loyalty and team spirit within the company

Employee Relations: Successful management system

  • Satisfying the requirements of the UN Guiding Principles on Business and Human Rights

  • Ensuring uniform Group-wide implementation of the Human Rights Policy

  • Manage ER related topics and assessing potential risks

  • Share information and best practices on human rights and the risk potential throughout the Group

Employee Relations: Dialogue with Global Union Federations

For more than ten years we have exchanged information with global union federations UNI Global Union (UNI) and the International Transport Workers' Federation (ITF).

Since 2016 we conduct regular dialogue under the protocol of the

German National Contact Point for the OECD discussing and resolving Employee Relations matters

Today, we are discussing challenges and opportunities, in particular innovations and trends that transform work as well as responsibility in the supply chain.

Currently, we are jointly reviewing the terms of the OECD protocol mirroring the positive development in the relationship.

Safety: OHS and LTIFR

Reduce accident rate to 3.1 from 2017 level of 4.4 until 2025

  • In line with the Group's "Safety First" approach, our occupational health and safety organization has made accident prevention its top priority

  • Within this framework we empower and engage managers as well as employees in recognizing workplace hazards and taking appropriate action

  • While legal compliance will always have the highest priority, we are determined to apply international standards for workplace safety

Our internal guidelines/programs

  • OHS Mission Statement

  • Road Safety Code

  • DPDHL Group Health and Safety Awards

Corporate Citizenship pillars

We want to contribute real solutions to the global challenges of our time, which is why our programs and partnerships are designed to achieve maximum effectiveness and impact for society.

Corporate Citizenship: Local projects

Global Volunteer Day

114,239 Employees Volunteered in 2019

  • Since 2008, our GVD has been a major driver of employee volunteer work

  • Employees involved year-round in projects that serve local needs

  • Employee motivation and company loyalty are higher when individual interests and skills are aligned with the area of involvement

  • Since 2011, financial support for ~100 outstanding projects every year

Corporate Citizenship: Disaster management

GoHelp Program

Humanitarian assistance at airports through our

global presence, logistics network and the know-how

of our employees

Since 2005

  • 40+ DRT deployments

  • 50+ GARD workshops in partnership with the United Nations

In 2019, DRT deployments in Mozambique and Bahamas, GARD workshops in Honduras, Iraq, Madagascar, Nepal and Peru

Corporate Citizenship: Improving Employability

GoTeach Program

We support young people from disadvantaged socioeconomic backgrounds due to poverty, loss of family or being forced to flee their country.

Since 2009, Partnerships with SOS Children's

Villages and Teach For All in 50+ different countries

and 11,000 children and young people reached

Since 2015, refugee support initiative: 11,000

refugees hired.

In 2019 ~4,200 refugees from Eritrea, Iran, Iraq,

Somalia and Syria received an employment contract

DPDHL GROUP ESG PRESENTATION 2020

  • 1 Purpose of Sustainability at DPDHL Group

  • 2 Environment at DPDHL Group (E)

  • 3 Social Responsibility at DPDHL Group (S)

  • 4 Governance at DPDHL Group

Page 3P5AGE 35

German 2-tier board system / Supervisory Board

1as defined in number 5.4.2 of the German Corporate Governance Code

Targets for the Supervisory Board's composition and skills profile

  • Reflect DPDHL's international activities adequately

  • Independence1 of at least 75 % helps to guarantee integrity of accounting process and ensure independence of auditors.

  • Independence Avoid conflicts of interest affecting Supervisory Board members

  • At least 30 % women

  • Particular international knowledge and experience either by origin, education or professional experience

  • Provide competent advice on fundamental future issues, in particular digital transformation.

  • Sufficient expertise of accounting or financial statement audits incl. international developments in accounting.

Supervisory Board, Shareholder Representatives

Director

Dr. Nikolaus von Bomhard

M

1

C

x

C

C

C

Dr. Günther Bräunig

M

1

x

Dr. Mario Daberkow

M

0

Ingrid Deltenre

F

3

X

X

x

Dr. Jörg Kukies

M

0

x

X

X

Dr. Heinrich Hiesinger

M

1

x

Simone Menne

F

2

X

Lawrence A. Rosen

M

3

Dr. Stefan Schulte

M

0

C

Prof. Dr.-Ing. Katja Windt

F

1

Independence*

Gender

OutsideBoards**

Executive Committee*** FinanceandAudit Committee*** Personnel Committee*** Mediation Committee*** Nomination Committee*** Strategy Committee***

*Independence definition according to number 5.4.2 of the German Corporate Governance Code; **Number of mandates at external public company Boards; *** C = Chairman

Major topics in 2019 and average attendance rate

Attendance rate 2019 Selection of major topics in 2019

DPDHL Group ESG Presentation 2020

  • Group Strategy and Streetscooter development

  • P&P& SC CEO: Approval of Tobias Meyer & Oscar de Bok

  • Extension of DGFF CEO, Tim Scharwath´s and Board Member HR, Thomas Ogilvie´s mandate

  • 2019 results and preparation of AGM

  • Remuneration system for the board of management

DPDHL Group: Board of Management

CFO DPDHL GROUPMelanie Kreis

Member since Oct 2014

Appointed until Jun 2022

P&P Deutschland

Tobias Meyer

Member since Apr 2019

Appointed until Mar 2022

Express

John Pearson

Member since Jan 2019

Appointed until Dec 2021

CEO DPDHL GROUPFrank Appel

Member since Nov 2002

CEO since Feb 2008

Appointed until Oct 2022

Forwarding,

FreightTim Scharwath

Member since Jun 2017

Appointed until May 2025

HR, Corporate IncubationsThomas Ogilvie

Member since Sep 2017

Appointed until Aug 2025

Supply JohCnhGailnbertOscar de Bok

Member since Oct 2019

Mandate until Sept 2022

eCommerce SolutionsKen Allen

Member since Feb 2009

Appointed until Jul 2022

Board of Management remuneration: Components

*starting 2022

Chairman of the Board

4,5x

Ordinary Board member

Min.

TargetMax.

Min.

TargetMax.

50% payout of achieved bonus deferred by additional 2 years

Board of Management remuneration: Annual bonus and deferral

1For Dr Frank Appel, Melanie Kreis and Dr Thomas Ogilvie, the weighting is 65%.

Medium-term component will only be paid out if EBIT after Asset Charge

(EAC) target is reached during the sustainability phase; at least the cost ofcapital was covered

2Only for the Board of Management members responsible for the Post - eCommerce - Parcel, Express, Global Forwarding, Freight and Supply Chain divisions.

Board of Management remuneration: Long-term component

Cash remuneration linked to the company's share price performance

Participation in Long-Term Incentive Plan (LTIP) requires personal investment of 10% of annual base salaryWe comply with the requirement regarding the ability to retain or reclaim (claw back) variable remuneration in justified cases by making the granting of LTIP components (SARs) dependent upon the attainment of previously stipulated goals

Board of Management remuneration: Remuneration caps

1The time the tranches are paid depends on when they are exercised within the two-year period.

Total caps limit the maximum annual payout

  • Remuneration granted in financial year capped to €8 million for CEO, €5 million for ordinary board members (excluding fringe benefits)

2022 methodology includes 2nd cap

  • Remuneration received in a single financial year does not exceed €8 million for CEO, €5 million for ordinary board member, caps on received remuneration

Code of Conduct and Supplier Code of Conduct - constitute our Human Rights Policy.

DPDHL GROUP ESG PRESENTATION 2020 PAGE 44

Code of Conduct is our guide for good business practice

Key pillars:

Respect, tolerance, honesty and candor as well as

willingness to assume social responsibility

Applied to all employees, irrespective of their place in

the Group's hierarchy, and to divisions

Fundamental principles:

Observance of human rights, equal opportunity,

transparency, and clear stands in the battle against

discrimination, bribery and corruption

Our ethical standards as stated in our Supplier Code of Conduct

Internal control systems - compliance management

Data protection and data security at DPDHL Group

DPDHL Group Data Privacy Policy is aligned with GDPR

  • Our Data Privacy Policy sets out the global minimum standards for the Group. These standards are also stipulated in our Code of Conduct and Supplier Code of Conduct. Online trainings serve to familiarize employees with the requirements of the policy and the GDPR

  • The GDPR leads to an extended information obligation and an adjusted request management system

  • To ensure application we do audits on the level of implementation of the GDPR requirements and verifying their conformity (through Privacy Impact Assessments)

  • Distinct roles and bodies within data protection management (including Corporate Data Protection Officer, data protection officials and country data protection counsels, data privacy circles, data protection steering committee and data protection network)

Way forward

  • Embrace the holistic definition of sustainability along ESG criteria

  • Develop an ESG roadmap and shape our sustainability 2.0 agenda

  • Capture new opportunities to leverage our core business to contribute to the SDGs

  • 1 Why sustainability matters for DPDHL GROUP

  • 2 Sustainability at DPDHL Group (E)

  • 3 Sustainability at DPDHL Group (S)

  • 4 Sustainability at DPDHL Group (G)

5

Appendix: Rankings, IR Contacts

Page 5P0AGE 50

Good results in key investor ratings and on supplier platforms

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Deutsche Post AG published this content on 08 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2020 10:39:05 UTC