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GoGreen results

We do report our carbon footprint on a yearly basis. We calculate our CO₂ emissions based on the international agreed standard “Greenhouse Gas Protocol”. It differentiates between three so called “scopes” which include for Deutsche Post DHL:

Scope 1 emissions, which refer to direct CO₂ emissions from our own operations, e.g. through fuel combustion.
Scope 2 emissions, which include CO₂ emissions corresponding to the electricity, district heating and cooling that we purchase.
Scope 3 emissions, which cover CO₂ emissions from subcontracted transports and business travel.

Compared to our beginnings, we improved our carbon transparency and accuracy significantly, especially for Scope 1 and 2 emissions. Here, we estimate our accuracy at +/-5 % (compared to +/-10 % in 2008), which helps us to achieve transparency about where we are with GoGreen and our carbon efficiency target. Through linking our carbon and financial reporting, information is available in higher frequency, accuracy and timeliness. In 2010, we reported our 2009 Scopes 1 and 2 CO₂ inventory in the Group’s Annual Report – for the first time in the same reporting year as the financial data.

Absolute CO₂ emissions

[PwC»] In 2009, our CO₂ emissions in Scopes 1 and 2 from our own sources and energy supply added up to 5.6 million tonnes, compared to 6.6 million tonnes in 2008 (previously reported as 6.7 million tonnes). [«] We consider the impacts of the economic crisis and the achievements of successfully implemented efficiency and reduction measures as reasons for the decreased Scope 1 and 2 emissions. Additionally, the improved CO₂ data accuracy and visibility had an impact on the reported results, as we were able to replace a number of conservative estimates with real data. For translating energy and fuel consumption into CO₂ emissions, Deutsche Post DHL uses emission factors published by internationally acknowledged institutions such as the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA).

CO₂ emissions from subcontracted transport are not that easy to determine, as the majority of subcontractors do not disclose direct fuel consumption. Our Scope 3 emissions are based on calculation models, assumptions and, where available, on reported fuel consumption. We were able to increase our share of data derived from measurements, but still rely on calculation models for the large share of Scope 3 emissions. Where available, we use acknowledged industry standards for emission calculations in combination with operational data. Important standards are the Network for Transport and the Environment (NTM) methodology for air transport or emission factors made available by the Clean Cargo Working Group (CCWG), the Handbook Emission Factors for Road Transports (HBEFA) or emission factors directly from carriers. The implementation of standards has helped us to increase our data accuracy for air and ocean transports significantly, where operational data mostly contained aircraft or vessel specific details. For road transport, operational data visibility is normally limited to vehicle classes and emissions are highly depending on topography. For those reasons, we estimate our data accuracy for Scope 3 emissions to be +/- 20 %, but will strive to increase the accuracy in future years.

[PwC»] In 2009, our CO₂ emissions from subcontracted transport added up to 18.5 million tonnes. We were able to adapt the most methodological improvements in Scope 3 emissions calculations (especially for air and ocean transport) back to 2008 operational data and recalculated our 2008 Scope 3 emissions at 20.5 million tonnes (previously reported as 25.5 million tonnes). [«] The reduction compared to 2008 is mainly caused by declining airfreight shipment volumes in the course of 2009.

Total CO₂ emissions (Scope 1+2 and Scope 3)

Chart

[PwC»]

Total CO2 emissions (Scope 1+2 and Scope 3)

1): As previously reported
2): As restated

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Table

[PwC»]

Total CO₂ emissions (million tonnes CO₂)	2007¹⁾	2008²⁾	2009
Scopes 1 and 2 emissions	6.6	6.6	5.6
Scope 3 emissions	26.7	20.5	18.5

1): As previously reported
2): As restated

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[PwC»]

Scopes 1 and 2 energy use

Energy use in buildings and facilities (million kWh)	2007¹⁾	2008¹⁾	2009
Total	5,273	4,172	3,481
Standard electricity	2,101	2,039	1,352
100% green electricity²⁾			632
Heating³⁾	2,271	713	n.a.
District heating	223	138	164
Heating oil⁴⁾	72	303	212
Natural gas	602	912	1,031
Liquefied petroleum gas (LPG)	0	66	83
District cooling	4	2	8

1): 2007 and 2008 as previously reported
2): For 2007 and 2008, the split between standard and 100% green electricity is not available.
3): "Heating" stands for calculated/estimated energy use where the energy source is not specified. This category is no longer used.
4): Also includes quantities of petrol and diesel for auxiliary power generators.

Scope 1 fuel use

Fuel use for transportation (million liters)	2007¹⁾	2008¹⁾	2009
Biofuels	0.3	0.5	n.a.
Biodiesel	n.a.	n.a.	0.3
Bioethanol	n.a.	n.a.	1.0
Biogas	n.a.	n.a.	0.1
Compressed natural gas (CNG)²⁾	10.9	0.7	0.9
Liquefied petroleum gas (LPG)	0.7	2.1	1.6
Gasoline	50.4	66.9	35.1
Diesel	541.8	561.9	480.5
Total road fuels	604	632	519.5
Total kerosene	1,370.9	1,530.5	1,315.0

1): 2007 and 2008 as previously reported
2): Biogas and CNG for road use in million kg

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Carbon efficiency index

As we have set ourselves a CO₂ efficiency target, our main focus is the increase in CO₂ efficiency, reached through the reduction of absolute emissions and the improvement of processes and loads: While we have no influence on transport demand, we strive to transport goods as efficiently as possible.

To track our progress on the 10 % and 30 % efficiency targets until 2012 and 2020, we calculate and report the Deutsche Post DHL Carbon Efficiency Index. This index includes different ratios to measure the efficiency of our different kinds of businesses. The ratios, such as CO₂ per shipment or per square meter used, are weighted by the absolute emissions of the respective business division. The weighted data is consolidated into the Carbon Efficiency Index, reflecting our status on the CO₂ efficiency targets.

For the 2007 base year, our index was set to 100. In 2008, the index value was 101, the slight decline due to dropping capacity utilization. [PwC»] In 2009, we were able to increase our CO₂ efficiency at a Group level and have reported a 2009 index of 98. [«]

With 2009 being the year most affected by the economic crisis, Deutsche Post DHL faced a very challenging situation for improving its carbon efficiency. Volumes dropped and capacities could not be adapted that quickly. On the other hand the introduction of our new, modern aircraft and the ongoing implementation of CO₂ efficiency measures have helped to counteract the loss in volumes.

With our 2012 target (carbon efficiency improvement by 10 %) and the recovering economy in 2010, we will put all our energy towards reducing emissions and improving the efficiency of our operations.

Carbon efficiency index

Chart

[PwC»]

1): By introducing a more exact KPI for road transports in Express, we were able to restate the 2008 Index values for Express, which also affects the Group’s Scopes 1 and 2 total Index value.

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Table

[PwC»]

	2007 baseline	2008	2009	2020 target
Index by division
Mail – Scopes 1 and 2	100	74	75	70
Mail – Scope 3	100	93	103	70
Global Forwarding Freight – Scopes 1 and 2	100	88	81	70
Global Forwarding Freight – Scope 3	100	100	98	70
Express – Scopes 1 and 2	100	117¹⁾	95	70
Express – Scope 3	100	97¹⁾	94	70
Supply Chain – Scopes 1 and 2	100	94	103	70
Supply Chain – Scope 3	100	98	111	70
Index value totals for Deutsche Post DHL
Scopes 1 and 2	100	108¹⁾	95	70
Scope 3	100	99	99	70
Combined total
Deutsche Post DHL – All Scopes	100	101	98	70

1): By introducing a more exact KPI for road transports in Express, we were able to restate the 2008 Index values for Express, which also affects the Group’s Scopes 1 and 2 total Index value.

[«]

Awards and ratings

We continually seek to enhance our transparency of CO₂ emissions and improve our efficiency. In 2009, our GoGreen ambitions were rewarded and recognized, showing that we are on the right track.

Dow Jones Sustainability Index

In 2009, we were added to the Dow Jones Sustainability World Index (DJSI World) for the first time. This index is globally accepted as the most important reference for sustainability in the financial world. It evaluates the performance and strategies of companies in the economic, environmental and social areas. We are also listed in the pan-European Dow Jones STOXX Sustainability Index again, after a one-time listing in 2006.
In the DJSI, we achieved top ratings. With 99 out of 100 points, we led the rankings in the environmental area for the categories Environmental Reporting, Environmental Policy and Management, Climate Strategy, Fuel Efficiency and Operational Eco-Efficiency. We achieved the highest scores for all criteria except climate strategy, where we achieved a very satisfying 95 points.

SmartWay certification

DHL Global Mail participates in the US Environmental Protection Agency’s SmartWay^SM Transport Partnership and received the program’s highest possible score in 2009. SmartWay is an innovative collaboration between the US Environmental Protection Agency (EPA) the freight and logistics sectors and their customers, designed to improve energy efficiency and reduce air pollution. As a SmartWay Transport partner, DHL Global Mail underwent an environmental assessment and received a score of 1.25, the highest possible mark, which indicates superior performance. With the SmartWay certification, DHL satisfies a growing customer requirement for service providers to prove their environmental stewardship.

German Sustainability Award

We were awarded the “German Sustainability Award 2009” in the “Most sustainable strategy” category. The jury, headed by Dr. Günther Bachmann, Secretary General of the Council for Sustainable Development, highlighted the special strategic direction of Deutsche Post DHL in facing the challenges of the future. The jury recognized our readiness to assume economic, environmental and social responsibility, with a particular emphasis on our environmental protection program GoGreen.

“Corporate Responsibility is a strategic part of our business strategy and plays a major role for our economic success. Even in economically difficult times, we are determined to engage in a sustainable development.”

Frank Appel, CEO, Deutsche Post DHL

Land of Ideas

In 2009, the German Government’s “Land of Ideas” initiative recognized our GoGreen program. The Government, together with commerce and industry, is using this initiative to reward resourcefulness and visionary thinking. The award was presented at the DHLInnovationCenter, a critical component of GoGreen: The Carbon Management System was set up there and the Innovation Center also initiates alternative power and fuels pilots.

“Logistics and the environmentally friendly requirements of tomorrow are already being anticipated and explored in the DHL Innovation Center today. The GoGreen climate protection program is therefore looking after both resources and the budget and sets a good example both at home and abroad.”

Hans-Peter Stefer, Director, Deutsche Bank Cologne

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[PwC»] Content shown between these symbols has been subject to a limited assurance statement by PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft (PwC). [«]

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