SCOPE OF
THE REPORT


This report is based on reporting criteria developed in accordance with the guidelines of the Global Reporting Initiative (GRI) 2002 requirements as far as relevant to TNT, and with the AA1000 Standard. We select key performance indicators (KPIs) on the basis of interactive stakeholder dialogue. For a list of the KPIs, please refer to the GRI cross-reference index in Annex 3.

In October 2006, GRI launched the third generation of its guidelines, the so-called G3 Guidelines, introducing a number of new, adjusted or deleted indicators and report elements. During 2007, we will assess our current reporting against the G3 Guidelines and adapt this accordingly as far as relevant to TNT. We will base our next report on the new guidelines. At the same time, we have joined the GRI sector supplement pilot for the Logistics and Transportation sector under the umbrella of the World Economic Forum (WEF).

This report includes only data from business units that are fully-owned or majority-owned and from those joint ventures where TNT has significant influence with respect to social responsibility. We do not yet report on subcontractors (except for road traffic accident fatalities) nor on less than majority-owned operations.

This report refers to the period 1 January 2006 until 31 December 2006. As TNT is a dynamic organisation, we achieved growth in our operations compared to 2005. We enable you to judge our progress by presenting most figures in a relative way (using percentages and ratios). To make this possible, we have excluded data on our recent acquisitions of Speedage (Express) PostCon Deutschland AG, ABL GmbH and Gibiesse Italia Srl (Mail).

We consider social responsibility an integral part of our business. PricewaterhouseCoopers has therefore verified the data collection and processing for this report. We aim to obtain reasonable assurance on our core KPIs in our 2008 report. We have successfully obtained a higher level of external assurance. All data and graphs related to the percentage of TNT people working in certified sites as well as the number of fatalities have been audited and are therefore marked with a triangle (). Our CO₂ footprint has been audited for the Mail division and is therefore marked with a triangle also. Reasonable assurance for the CO₂ footprint of the Express division is not yet feasible due to the broader geographic spread of the Express entities.

All other report elements have been reviewed. You will find the PricewaterhouseCoopers assurance report on page 41. For an overview of definitions used, please refer to Annex 5.

We gather our SR data using a questionnaire. All data presented in this report is based on measurement, unless stated otherwise. We clarify the coverage for all indicators in the data clarification table in Annex 4. We report on coverage as the number of FTEs (full time equivalents) working in entities that report social responsibility data as a percentage of total FTEs per division.

The figures below indicate the balance between our fully-owned and majority-owned operations and subcontractors. These pie charts represent the cost structure of our operational activities. The TNT ratio for fully-owned and majority-owned operations has remained the same as last year. The figures in this report refer to the orange part in the pie charts below.

We implement social responsibility management systems as a means of constantly improving our social and environmental performance. For most indicators in our previous social responsibility report, we reported on those parts of our organisation where certified systems (Investors in People, OHSAS 18001, ISO 9001, ISO 14001 and SA 8000) were in place. Our previous reporting only covered all sites for particular key subjects of our social responsibility performance, such as (blameworthy) road traffic accidents, workplace accidents and fatalities, and our CO₂ footprint. As of this year, however, we report on all sites, regardless of certification.

Although including all sites represents an important improvement in our transparency, it also means that comparing this year’s figures to last year’s report is not always possible. All indicators that were previously reported on for certified sites only are marked with an asterisk (*). For the readers’ convenience, we include an updated data clarification table for the 2005 figures in Annex 4. In 2007, we will introduce social responsibility data in our financial reporting system, bringing all social responsibility data under an internal audit and review scheme and further enhancing the reliability of data.

TNT’s reporting criteria and presentation of information are mostly consistent with previous years. The following general changes have occurred to enable you to benchmark our performance against previous years:

• The Logistics division is excluded from this report as we sold this division in 2006.
• The freight management business is excluded from the 2005 and 2006 figures as we are in the process of selling the unit.
• Mailprofs Postkamer Beheer BV, Cendris Document Management BV and Cendris Deutschland GmbH are excluded from the 2005 and 2006 figures for Mail also as we have sold these business units.
• We have reclassified certain comparative data to ensure con-sistency with the presentation for the current financial year.
• We have restated certain data as a result of improved data collection or changes in definitions. This is mentioned in the report where relevant.
• The 2005 and 2006 data includes data relating to business units that are fully-owned or majority-owned. Prior year data (2004) included only fully-owned business units. We have not adjusted the comparatives as the impact is assessed as insignificant.

Integrating Social responsibility in our internal audit

In 2006, TNT’s internal audit department commenced conducting social responsibility audits. In consultation with our external assurance providers, PricewaterhouseCoopers, we trained a team of internal auditors, describing TNT’s social responsibility strategy, which KPIs need to be assessed and how our internal audit team can improve reporting lines. These audits are performed in the TNT business and reporting units as part of the audit approach.

The scope of these audits focuses on procedures and controls surrounding the social responsibility reporting process and a number of key social responsibility reporting indicators. PricewaterhouseCoopers receives all findings, and every two months they and the internal audit team meet to discuss results. The goal is to support management in improving procedures and controls, and in embedding these in the TNT organisation. The country units appreciate this commitment, emphasising the importance of TNT’s social responsibility objectives, while the internal auditors themselves feel more involved in TNT’s ambition. In 2006, the main areas reviewed by the internal audit team included certificates, our CO ₂footprint (electricity, gas and fuel), fatalities (road traffic and workplace), lost time accidents and blameworthy road traffic accidents.