General information
Report boundary and framework
All disclosures in the nonfinancial statement relate to the entire consolidated group of the company, as used as the basis for the consolidated financial statements. Any deviations from this rule are indicated accordingly. The report contents and the material topics are guided by the GRI Standards (core option) as a framework, supplemented by HGB requirements. The performance indicators used for managing the Group were determined in accordance with the HGB and German Accounting Standard 20 was applied. We illustrate the definition of the performance indicators in the steering metrics chapter. The nonfinancial statement also includes information aimed at facilitating sustainable investment (EU Taxonomy). In the interest of avoiding repetition, we refer to other sections of the management report for reporting on mandatory disclosures, provided that they already are explained in greater detail there. Information regarding employees applies to all of the Group’s staff; exceptions are noted as such.
Report contents and material topics
Six topics were derived from the materiality analysis for 2021 (pursuant to GRI Standards core option and HGB) that our business has a material influence on and that, conversely, can affect our business: climate and environmental protection, employee engagement, diversity and inclusion, occupational health and safety, compliance and cybersecurity. These topics also form the foundation for our ESG Roadmap. The Board of Management and the Supervisory Board reviewed and confirmed the direction for the 2023 fiscal year.
CONTENTS OF THE NONFINANCIAL STATEMENT (COMBINED) 1 |
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|---|---|---|---|---|---|---|
| HGB aspects | Concepts | Performance indicators, further measures2 |
Target 2023 | Result | Target 20242 | |
| General information Business model |
Global logistics company | – | – | – | – | |
| Environment Environmental matters |
Climate and environmental protection: Avoiding GHG emissions |
Logistics-related GHG emissions3 | Mt CO2e10 | 39 | 33.27 | 34.9 |
| Realized Decarbonization Effects3, 4 | Mt CO2e10 | 1.3 | 1.3 | 1.5 | ||
| Social Employee matters |
Maintain employee engagement and motivation at a high level | Employee Engagement3, 4, 5 | % | >80 | 83 | >80 |
| Fill management positions with women | Share of women in middle and upper Management3 | % | 27.7 | 27.2 | 28.8 | |
| Ensure health at work, avoid accidents | Lost time injury frequency rate (LTIFR) per 200,000 working hours3, 6 | Ratio | 3.5 | 3.1 | 3.3 | |
| Social responsibility Social matters |
Employee pride in contribution to society | Approval rate in the annual survey of employees | % | – | 78 | – |
| Corporate governance Anti-corruption and bribery matters | Compliance with laws, principles and policies | Share of valid compliance training certificates3, 7 | % | 98 | 98.6 | 98 |
| Respect for human rights | Carry out internal audits with regard to human rights | Internal audits | Number | – | 53 | – |
|
Implement human rights in the workforce |
Carry out on-site reviews | Countries | – | 10 | – | |
| Share of valid training certificates in middle and upper management | % | – | 99.5 | – | ||
| Implement standards in the supply chain | Supplier spend covered by an accepted Supplier Code of Conduct | € billion | – | >35 | – | |
| Potential high-risk suppliers assessed | Number | – | >4,000 | – | ||
| Company-specific Cybersecurity | Guarantee IT systems and data security | Cybersecurity rating3, 4 | Points | 6908 | 750 | 690 |
| Voluntary disclosures Taxes |
Avoid corporate structures for tax optimization | – | €m | – | 5,2749 | – |
1 Reporting pursuant to Sections 289b to 289e and 315b, 315c in conjunction with 289c to 289e HGB.2 Performance indicators are steering-relevant and are assigned target values (pursuant to Sections 289b to 289e and 315b, 315c in conjunction with 289c to 289e HGB).3 Performance indicator, steering-relevant in the reporting period.4 Remuneration-relevant in the reporting period.5 Represents the aggregated and weighted results of five statements in the annual Group-wide survey of employees.6 Work-related accidents resulting in at least one working day of absence following the day of the accident.7 Middle and upper management.8 In line with changes to the rating agency’s method, we adjusted our target from 710 to 690 points.9 Income taxes paid, other business taxes, employer social security contributions.10 Mt CO2e = million metric tons of CO2e. |
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REPORTING ON THE FACILITATION OF SUSTAINABLE INVESTMENTS (EU TAXONOMY)1 |
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|---|---|---|
| % | 2022 | 2023 |
| Taxonomy-eligible shares | ||
| Revenue | 53 | 65 |
| Capital expenditure (capex) | 63 | 91 |
| Operating expenditure (opex) | 58 | 82 |
| Taxonomy-aligned shares | ||
| Revenue | 12 | 15 |
| Capital expenditure (capex) | 25 | 30 |
| Operating expenditure (opex) | 11 | 15 |
1 Pursuant to Article 8 of Regulation 2020/852 of the European Parliament and of the Council as well as Delegated Regulations 2021/2178 and 2023/2486 of the European Commission. |
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Sustainability anchored in strategy and remuneration
For us, sustainability and sustainable business practices are above all an opportunity that we recognize as a meaningful factor in differentiating ourselves from the competition, which is also reflected in our purpose of “Connecting people, improving lives.” The long-term success of our company is determined by the degree to which we meet the needs of our key stakeholder groups, minimize the environmental impact of our business, act as trustworthy business partners and increase our contributions to society.
With our ESG Roadmap, we have geared our climate and environmental protection activities (environment) more toward decarbonization to minimize our environmental footprint. The strategic approaches toward social responsibility (social) and corporate governance (governance) were more clearly defined with the objective of providing a safe and motivating working environment and ensuring transparent, legally compliant business practices throughout the Group. In this way, we also take our potential for opportunities and risks into account within the context of sustainability.
Sustainability is factored into the annual bonus of Board of Management members in the form of the three ESG performance indicators Realized Decarbonization Effects, Employee Engagement and cybersecurity rating, each of which is weighted at 10%. The details are provided in a separate statutory remuneration report. In the year under review, these ESG performance indicators were also included in the annual bonus calculation for executives in upper management.
Supporting sustainability initiatives
We participate in numerous United Nations (UN) initiatives and support its Sustainable Development Goals (SDGs). Our commitment is most closely aligned with the goals of Quality Education (SDG 4), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Sustainable Cities and Communities (SDG 11), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).
In addition, we take part in various sustainability initiatives, for example to promote the development of sustainable fuels and technologies, and are working with our transport partners on reducing fuel consumption and the emission of greenhouse gases (GHG). In addition, we are involved in committees of the EFRAG and the International Sustainability Standards Board to develop European and global reporting standards for sustainability. In the year under review, DHL Group became a member of Transparency International Germany.
Guidelines define implementation of ESG standards throughout the Group
We conduct our business in accordance with applicable law and pursuant to our own ESG standards. DHL Group signed the UN Global Compact in 2006. The ten principles of this compact – as well as the principles of the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work and the principle of social partnership – are anchored in the Group through our Code of Conduct for Employees and our Human Rights Policy Statement; additional internal guidelines provide further specificity on these principles.
We provide for compliance with our ethical, social and environmental values in the supply chain by means of our Code of Conduct for Suppliers (Supplier Code of Conduct). The Supplier Code of Conduct is a binding component of the Group’s relationships with our suppliers, including subcontractors. By signing, they commit to complying with our standards and implementing them in their own supply chains.
Our Code of Conduct, along with the internal policy on anti-corruption and standards for business ethics derived from it, provides all employees and managers with clear rules and standards for complying with laws and regulations while contributing to the success of the Group within the scope of their jobs and responsibilities. All our employees, but in particular our managers, play a key role when it comes to implementing our values and objectives, so we have made the Code of Conduct an integral component of their employment contracts.
The codes of conduct and the Group guidelines are reviewed annually to ensure that they are complete and up to date.
Steering and planning
Our performance indicators, key figures and targets are completely integrated in our financial systems and reporting and planning processes, as well as in the internal control system and the opportunity and risk management process. The development of actual versus planned performance indicators is presented to the Board of Management along with financial KPIs and discussed monthly; the Employee Engagement performance indicator is determined and discussed once per year. Approaches to solutions are discussed and resolved in the event of deviations from plan; in the year under review, the focus in this regard was on managing the procurement of sustainable fuels.
Nonfinancial risks
Opportunity and risk management takes place in Group Controlling and covers sustainability-related aspects. Opportunities and risks arising from climate change are assessed using a scenario analysis according to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which also takes the provisions of the EU Taxonomy into account. This involves discussing and assessing both transitory and physical risks stemming from climate change using various scenarios.
In the reporting period, the ESG risks identified in the previous year in the material issues of climate change (risk categories: operational, market- and customer-specific and from regulation) and information technology were confirmed. These risks are assessed as being of medium significance for the Group.
Organization of sustainability
The Board of Management is the central decision-maker on Group-wide sustainability focus, whereas the divisions are responsible for implementation of the measures. The progress achieved is regularly discussed by the Board of Management. The ESG topics are also regularly dealt with in the meetings of the Supervisory Board as well as its Strategy and Sustainability Committee and Finance and Audit Committee. The perspective of external stakeholder groups is included through the Sustainability Advisory Council.
- Department Chief Executive Officer: Responsible for strategic orientation, stakeholder dialogue and implementation of the ESG programs. The ESG topics are developed further in the Group strategy and regularly reviewed by the Sustainability Steering Board. The Sustainability Steering Board comprises the CEO, the CFO and the Board member for Human Resources, as well as managers from central and divisional functions. As of January 1, 2024, responsibility for the Group-wide cybersecurity standards was shifted from the Department Global Business Services to the Department Chief Executive Officer.
- Department Human Resources: Develops Group-wide concepts for leadership and corporate culture, for the promotion of talents and skills, specifications related to HR processes and services as well as for maintaining relationships with the employee representatives and for respecting human rights in our workforce.
- Department Finance: Responsible for ESG reporting and controlling, opportunity and risk assessment, integration of the internal control system and the financial systems, compliance management and data protection. In the year under review, responsibility for the materiality analysis was moved from the Department Chief Executive Officer to the Department Finance.
- Department Global Business Services: Among other topics, responsible for determining the Group-wide standards for sustainable procurement and the process for selecting suppliers, as well as the specifications for Insurance & Risk Management and Corporate Real Estate.
SIGNIFICANT DECISION-MAKING BODIES FOR SUSTAINABILITY
1 CEO = Chief Executive Officer, Board of Management members responsible for Finance (CFO), HR (CHRO), Express.
Focus areas in the reporting period
In June 2023, the first sustainability-linked bond was placed with an issue volume of €500 million and a term through 2033. The interest rate of the bond is linked to our medium-term target of significantly reducing GHG emissions by 2030.
The focus throughout the year was on the interpretation and application of the European Union’s (EU) new requirements of sustainability reporting that have to be applied starting in the 2024 fiscal year. The materiality analysis was conceptualized and carried out in consideration of the new requirements of materiality. As part of this, the effects, risks and opportunities were evaluated during internal expert meetings and in-depth assessments were carried out. This also included a comprehensive location-based analysis of aspects related to biodiversity. The results were discussed with internal as well as external stakeholders. According to our current assessment, we classify the ESRS topics of climate protection, own workforce, workers in the value chain and business conduct, as well as cybersecurity as a company-specific topic, as material. In addition, ESG metrics, responsibilities and internal collection and reporting systems were reviewed for necessary adjustments or expansions; moreover, the additional requirements of the EU Taxonomy were implemented.