DPDHL Group to invest €7 bn to reduce emissions to under 29MT by 2030

March 22, 2021: The German multinational package delivery and supply chain management company, Deutsche Post DHL Group, today announced its sustainability roadmap by setting aside €7 billion until 2030 into clean operations (capex and opex) to reduce carbon emissions to under 29 million tonnes by 2030 and thereby commit to the Science Based Targets initiative.

DPDHL also aims to achieve zero emissions by 2050 with investments into sustainable aviation fuel, sustainable maritime fuel, vehicles electrification and bio liquefied natural gas.

Headquartered in Bonn, Germany, the company had brought the emission down to 27 million tonnes while with the expected business growth and current initiatives, DHL expects the emissions to increase to an estimated 46 million tonnes CO2 by 2030.

To a question of whether the cost of sustainability will be eventually carried over to customers, Frank Appel, chief executive officer, Deutsche Post DHL Group, said, “In a positive view, if the whole industry adopts the similar sustainability models, the customers may have to bear the cost. Sustainability is not free, it comes with a price. But if we are the only sustainability adopters then to be competitive we will not pass on the cost to our customers.”    

It has also changed the carbon emissions measurement from Tank-to-Wheel to Well-To-Wheel to cover the measurement along the entire energy chain, include all greenhouse gases and thus lifting the 2020 base to 33 million tonnes CO2.

The company noted that all modes will contribute to the targeted reduction of CO2 emissions key contribution to be achieved on aviation emissions. It targets for the use of more than 30 percent sustainable aviation fuels blending in aviation by 2030, electrify 60 percent of its last-mile delivery vehicles by 2030, grow sustainable fuel share in line-haul to more than 30 percent, offer green alternatives for all core products and solutions and carbon-neutral design to be used for all new buildings.   

Along with SAF blending, in the aviation sector, DPDHL also plans for re-fleeting by investing in fuel-efficient, SAF capable and alternative power aircraft, fuel optimisation by improving flight operations efficiency by utilising technology, ideal weight balance and optimised network design and choosing efficient carriers, decarbonise ground handling by using electrification and hydrogen technology to drive down emissions at major hubs and also by offering green products.

Responding to a question if DPDHL will change its entire fleet of aircraft and how she expects the market to respond, Melanie Kreis, chief financial officer, DPDHL, said, “We don’t have to remove any of our aircraft as the new sustainable fuels could be used in these aircraft. We know €7 billion is a big amount but we expect the market to take it positively as we consider sustainability as an important pillar.”

The group announcement also included strategies to make the company great for all to work and highly trusted.