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DHL Express increases carbon efficiency despite volume surge

by Press Release on 2011-08-26

·       Singapore operations achieved an impressive 15.7%  improvement in its CO2 efficiency
·       Pilot trial Vehicle Energy Reduction Program delivered 5% fuel efficiency improvements in just 9 weeks

DHL SINGAPORE - 26 August, 2011: DHL, the world’s leading logistics company, announced that its Singapore Express division achieved a 15.7% improvement in CO2 efficiency[1] in 2010, compared to 2009. DHL Express Singapore’s ability to clock double-digit improvements in carbon efficiency, despite volume surge, was made possible through the adoption of its three-pronged approach - fleet management, real estate enhancements and employee engagement, to effectively manage its carbon footprint.

Combating climate change by becoming more carbon-efficient is DHL’s commitment towards ensuring a more sustainable environment. DHL is the first global logistics provider to set quantified CO2 efficiency targets under its GoGreen program in 2007. DHL Express Asia Pacific started the assessment of its carbon footprint from energy consumption in real estate and ground transport in 2008 and developed a robust carbon accounting process that now covers over 1,000 facilities in 27 markets across the Asia-Pacific.  As a result, DHL is able to accurately measure and see the results of its efforts in improving carbon efficiency through abatement programs.

Three-pronged approach to reduce carbon footprint
Locally, DHL Express Singapore adopted a three-pronged approach, namely on-going active fleet management, real estate enhancements as well as employee engagement in energy-saving behaviour, that contributes towards improving its carbon efficiency.

Herbert Vongpusanachai, Managing Director, DHL Express (Singapore), commented, “As climate change issues take centre stage globally, ensuring sustainability has become a central aspect of our business and is an integral part of our day-to-day operations. The double digit improvement as reflected in the results of the 2010 carbon accounting process is the best indicator to show that we are doing the right things to improve our carbon efficiency.”

In the transport and logistics industry, active fleet management is key to managing the carbon footprint. DHL Express Singapore is the first office in Asia to embark on a pilot trial program - Vehicle Energy Reduction Program (VERP)[2] to monitor and improve vehicle fuel economy by changing driver behaviours. Rolled out in one of the three service centres in Singapore, in-vehicle GPS and vehicle diagnostics units are installed in 17 vans to capture data on vehicle location, speed, fuel consumption, CO2 emissions and acceleration over three axes. The trial phase saw a five per cent improvement in fuel efficiency within a short nine-week period.

As reflected in the carbon footprint results, real estate contributes to the bulk of DHL Express Singapore’s total CO2 emissions. Several energy-saving initiatives such as the installation of energy-efficient T5 lighting, use of electric-powered forklifts and incorporation of power-save options on the Material Handling System were implemented to reduce energy consumption, thus helping to improve our carbon efficiency. More importantly within the company, many employees play an active role in helping to achieve the GoGreen targets. Increased employee engagement in the day-to-day green initiatives leading to effective behaviour change is the key to reducing the overall carbon footprint in the long run.

“We are pleased that our efforts in helping to improve our carbon efficiency have paid off and this is the first step towards protecting our environment. Our commitment towards sustainability will be the driving force as we continue to find ways to further improve our carbon efficiency,” Herbert added.

Testament to its efforts towards environmental protection and sustainability, DHL emerged as the winner in the Enterprise Sustainable Business category at the recent Singapore Sustainability Awards 2011. Presented by the Singapore Business Federation, the award serves to recognize the innovative and impactful sustainable business practices and green solutions of Singapore companies that are at the forefront of an emerging green economy.

With GoGreen being integrated as part of the corporate strategy, DHL Express was the first global logistics company to offer carbon neutral shipping service: DHL GOGREEN Carbon Neutral[3] services to its customers, where carbon emissions generated by each shipment is offset by reinvesting in recognized climate protection projects such as hydropower, biomass or wind energy. Globally, DHL successfully shipped more than 1.7 billion GOGREEN shipments in 2010, offsetting 82,000 tonnes of CO2 for customers. DHL Express Singapore currently counts Barclays and DVNPS as customers for its GOGreen Carbon Neutral product. More companies are expected to jump on the bandwagon as customers worldwide are increasingly demanding greener logistics.

About DHL
DHL – The Logistics company for the world

DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 51 billion euros in 2010.