This section of our report covers information on environmental management systems and our environmental performance. Our environmental management approach goes beyond compliance with legislation and is fully aligned with the ISO 14001 standard. This sets standards for continuous improvement in our impact on the environment on the entity level and therefore challenges all our entities with respect to their environmental footprint and allows for a local focus on implementing improvements. We consider our most important environmental impacts to be CO2 emissions, air pollution and energy usage.
ISO 14001 certification
TNT uses the international standard ISO 14001 to assist us in managing our environmental performance.
| ISO 14001 certification ▲ | GRI indicator: 4.12 | ||
| Percentage of total FTEs working in certified sites | 2005 | 2006 | 20071 |
| 82% | 77% | 76% | |
| Express | 26% | 57% | 98% |
| TNT | 52% | 65% | 86% |
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The following six additional entities within Mail achieved certification in ISO 14001 in 2007: Cendris Head Office, Cendris Customer Information, Cendris Document Presentment, Cendris Print Management, EMN Czech Republic and EMN Slovakia. As a result of the decreased number of FTEs in certified entities and the increased number of FTEs in uncertified entities, the certification level within Mail dropped in 2007.
The following 17 Express entities achieved full certification to ISO 14001 in 2007: Argentina, Australia, DHO, New Zealand, Document Services Mauritius, Document Services UK, Fashion Netherlands, IBU Head Office, India, Ireland, Jordan, Poland, Romania, Thailand, UK, UK M&E and Vietnam.
TNT Group Head Office also achieved ISO 14001 certification in 2007.
CO2 footprint
The use of fossil energy sources for our operational activities results in emissions of carbon dioxide (CO2). The scientific evidence is now very clear that man-made emissions of CO2 are a main cause of climate change. The latest assessment report published by the Intergovernmental Panel on Climate Change (IPCC) states clearly that there is an urgent need for action if we are to avoid the dangerous and irreversible consequences of climate change.
One of our stakeholders’ prime concerns is our environmental impact and that we manage our CO2 footprint. In addition, we believe that concern about climate change will lead to government action that will require us to further manage emissions from our ground and air fleet. Therefore, if we are unable to demonstrate adequate emissions management, there is a risk to future operations and our financial position.
The risks identified include:
- stricter legislation to reduce emissions; the EU legislation is calling for a 20% reduction by 2020,
- higher fuel prices. TNT operations are susceptible to higher costs as a result of higher fuel prices,
- we are aware of the risk of physical damage to our depots and/or infrastructure due to changing weather patterns. However, we also acknowledge that this risk is virtually unmanageable,
- loss of market share if TNT does not anticipate the needs of customers who are requesting greener products and services and information on our CO2 footprint, and
- stricter city accessibility legislation which will result in stricter inner city low emissions zones for polluting transportation.
As a contributor to climate change, we aim to continuously limit the impact from our operational activities. One of the ways in which we are addressing our CO2 emissions is the introduction of our Planet Me programme. For further information, please refer to the case included in this report and www.tntplanetme.com.
We have updated, improved and extended our method of calculating our CO2 footprint in accordance with the Greenhouse Gas Protocol. The changes relate to:
- we are using the latest available conversion factors (i.e. kg CO2/kWh per country),
- this year we distinguished between different types of fuel. In the past we assumed that all fuel used by our operational vehicles and company cars was diesel,
- we have included the CO2 emission of our business travel, and
- we have included an estimate of the CO2 emissions produced by our subcontractors (as described in the section on CO2 emissions by subcontractors).
The charts present the absolute emission in kilotonnes' CO2 and the relative distribution of CO2 emissions by source per division and for TNT as a whole.
TNT CO2 footprint estimated and measured
The table below present the absolute emission in kilotonnes' CO2 by source divided in the measured and the estimated parts.
CO2 intensity
Besides reporting on absolute emissions of CO2, we also report on our performance in terms of CO2 intensity. CO2 intensity is a relative indicator that relates CO2 emissions to our activity (revenue generated, tonnes transported, consignments shipped). We will further develop our reporting on CO2 intensity indicators as it provides the basis for internal and external benchmarking.
The chart presents the development of CO2 emissions related to revenue per division and for TNT as a whole over the last three years.
For the first time, we also report on the CO2 intensity of our Express operations by relating CO2 emissions to tonnes transported. This indicator can only be regarded as an approximation since CO2 emissions include an estimate of subcontractor emissions (please refer to section on CO2 emissions by subcontractors). In 2007, the CO2 intensity of our Express operations is estimated to approximately 0.4 tonnes CO2/tonne transported. Major acquisitions are not included in this figure.
Analysis of the CO2 footprint
- total CO2 emissions, excluding major acquisitions, increased by 23% to 1,019 ktonnes. Including the major acquisitions and business travel, total CO2 emissions increased by 38%,to 1.136 ktonnes,
- in Express CO2 emissions (excluding major acquisitions) grew by 28%. The largest increase was in aviation, mainly due to the start of operation of our Boeing 747s. This activity was formerly contracted-out and therefore not part of our CO2 footprint,
- within the Mail division, the total CO2 emissions decreased by 4 % compared to last year. This was mainly due to the increased use of electricity from sustainable sources and improved energy efficiency of buildings,
- CO2 emissions related to revenue increased. This was caused by an increase in CO2-intensive aviation activities in the Express division, and
- we will further improve the accuracy of the CO2 footprint. Carbon dioxide emissions from major acquisitions were extrapolated in the absence of reported data. Data reporting by major acquisitions will improve in the coming years.
CO2 emissions by subcontractors
A significant part of our business is contracted-out to subcontractors, agents and associates. Since these subcontracted activities are part of our supply chain, the CO2 emissions generated by these activities should be attributed to the TNT CO2 footprint.
We have developed a separate model that applies different approaches to estimating the CO2 emissions generated by subcontracted services throughout TNT. Using primary indicators (fuel consumption) is the most accurate way of calculating CO2 emissions. However, a calculation based on primary indicators is not possible as the subcontractors’ actual fuel consumption is not yet available to TNT. As a result, various proxy indicators are used that can be translated into CO2 emissions. Depending on data availability, secondary indicators (road kilometre driven/tonne kilometre flown) or cost indicators (subcontractor cost) are used. To translate subcontractor costs into fuel consumption, cost splits of two operational entities (Express Road Network and Belgium) were used as a baseline.
The accuracy differs between the two types of indicators used, with secondary indicators having a higher accuracy than cost indicators. In general, the approach of using proxy indicators to calculate CO2 emissions limits the accuracy of the subcontractor footprint. Improved data availability will increase the accuracy of the subcontractor emission estimate in the future.
The subcontractor model covers subcontracted activities that are part of TNT’s core business (road and air transport). Subcontractor emissions generated by buildings are not included, as their magnitude is negligible. Subcontracted activities of the acquisitions are not included in the scope of the subcontractor model either, so that their emissions are not yet accounted for.
The chart presents the estimate of TNT’s subcontractor emissions in kilotonnes' CO2 and the total TNT CO2 footprint including subcontractor emissions. Of the total subcontractor emission, 15% is related to the Mail division and 85% to the Express division.
CO2 emissions according to the Greenhouse Gas Protocol
The Greenhouse Gas Protocol has defined three “scopes” (scope 1, scope 2 and scope 3) for greenhouse gas (GHG) accounting and reporting purposes. In 2007 we decided to present our CO2 emissions data according to the Greenhouse Gas Protocol.
Scope 1 refers to direct GHG emissions generated by sources that are owned or controlled by the company.
Scope 2 refers to GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the company’s organisational boundary. Scope 2 emissions occur physically at the facility where electricity is generated.
Scope 3 refers to other indirect GHG emissions and is an optional reporting category. Scope 3 emissions are a consequence of the company’s activities, but occur from sources not owned or controlled by the company.
| CO2 emissions according to the Greenhouse Gas Protocol | GRI indicators: EN 3, EN 4, EN 16 & EN 17 | ||||
| In ktonnes | Emissions source | 2005 | 2006 | 2007 (excluding major acquisitions) |
2007 (including major acquisitions) |
| Scope 1 | Aviation | 336.5 | 415.4 | 563.2 | 563.2 |
| Operational vehicles | 174.0 | 189.3 | 236.0 | 291.6 | |
| Heating | 42.8 | 44.1 | 36.1 | 41.1 | |
| Scope 2 | Electricity (including district heating) | 120.3 | 133.5 | 139.7 | 184.3 |
| Scope 3 | Company cars | 41.7 | 43.4 | 36.1 | 46.0 |
| Business travel | no data | no data | 8.1 | 9.9 | |
| Subcontractors | no data | no data | 1,444 | no data | |
The total energy use increased by 18% from 11,378 terajoules in 2006 to 13,481 terajoules in 2007 (excluding major acquisitions and subcontractors).
Transportation
Number of vehicles
In 2007 we separated our vehicle data according to different types of fuel.
| Small trucks in 2007 | GRI indicator: LT 2 | ||
| Number of small trucks and vans (< 7.5 tonnes) powered by: | Express | TNT | |
| Diesel | 3,950 | 2,689 | 6,671 |
| Gasoline | 19 | 946 | 965 |
| LPG | 8 | 7 | 15 |
| CNG | 7 | 29 | 36 |
| Biofuel | 47 | 94 | 141 |
| Electricity | 0 | 1 | 1 |
| Large trucks in 2007 | GRI indicator: LT 2 | ||
| Number of large trucks (> 7.5 tonnes) powered by: | Express | TNT | |
| Diesel | 358 | 2,402 | 2,763 |
| Biofuel | 0 | 609 | 609 |
| Electricity | 0 | 8 | 8 |
| Company cars in 2007 | GRI indicator: LT 2 | ||
| Number of company cars powered by: | Express | TNT | |
| Diesel | 1,257 | 3,200 | 4,726 |
| Gasoline | 251 | 927 | 1,280 |
| LPG | 36 | 9 | 46 |
| CNG | 1 | 4 | 5 |
| Biofuel | 0 | 187 | 187 |
| Electricity | 0 | 10 | 10 |
| Hybrid engine | 9 | 14 | 24 |
| GRI indicator: LT 2 | |||
| EU standards for small trucks | 2007 | ||
| In % of total small trucks in EU | Express | TNT | |
| Vehicles complying with Euro 4 | 24% | 12% | 21% |
| Vehicles with (retrofitted) soot filter ▲ | 0% | 4% | 1% |
| Vehicles younger than 5 years (excluding Euro 4, 5 and soot filters) | 74% | 56% | 69% |
| Other vehicles | 2% | 29% | 9% |
| GRI indicator: LT 2 | |||
| EU standards for large trucks | 2007 | ||
| In % of total large trucks in EU | Express | TNT | |
| Vehicles complying with Euro 5 ▲ | 46% | 2% | 8% |
| Vehicles complying with Euro 4 | 0% | 5% | 4% |
| Vehicles with (retrofitted) soot filter ▲ | 33% | 2% | 7% |
| Vehicles younger than 5 years (excluding Euro 4, 5 and soot filters) | 9% | 61% | 53% |
| Other vehicles | 13% | 30% | 28% |
In the near future, the new EU emission standard Euro 5 will become obligatory for new light commercial vehicles (for new large goods vehicles the Euro 5 standard is already obligatory). We aim to comply in advance with this new standard. This demonstrates our commitment to reducing fine dust (PM10) and nitrogen oxides (NOx) emissions. These emissions impose a threat on public health. At the moment Euro 4 is mandatory for all new trucks in the EU and they are equipped with a standard advanced built-in soot filter. In the table above we also show our retrofitted trucks with soot filters that do not comply with Euro 4 or Euro 5. These retrofitted trucks emit less PM10 and NOx emissions.
Energy efficiency of transport
In 2007 we separated our data according to different types of fuel. Up to 2006 all fuel reported was assumed to be diesel.
| Small trucks in 2007 | GRI indicator: EN 1 | ||
| Fuel efficiency small trucks and vans (< 7.5 tonnes) in litres per 100 km powered by: | Express | TNT | |
| Diesel | 8.7 | 12.1 | 10.2 |
| Gasoline | 7.1 | 16.1 | 16.0 |
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| Large trucks in 2007 | GRI indicator: EN 1 | ||
| Fuel efficiency large trucks (>7.5 tonnes) in litres per 100 km powered by: | Express | TNT | |
| Diesel | 26.3 | 24.0 | 24.6 |
| Biofuel | - | 24.3 | 24.3 |
| Company cars in 2007 | GRI indicator: EN 1 | ||
| Fuel efficiency company cars in litres per 100 km powered by: | Express | TNT | |
| Diesel | 7.41 | 6.6 | 6.7 |
| Gasoline | 7.61 | 9.5 | 9.3 |
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| GRI indicator: E GRI indicator: EN 1 | |||
| Airplanes | Express | ||
| Fuel efficiency airplanes in litres per 100 km | 20051 | 20061 | 2007 |
| Jet fuel | 589 | 595 | 665 |
| Aviation gas | 23 | ||
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Alternative transport fuel
There are several alternative transport fuels that have a better environmental performance compared to conventional fuels such as diesel and gasoline. TNT has piloted promising alternative fuels to help identify innovative developments in transport fuels and test their applicability for our operations.
Biofuel
Biofuels are a viable option for replacing conventional fuels. TNT recognises, however, that not all types of biofuels can be regarded as sustainable as their production might lead to adverse environmental and social effects. We recognise these potential downsides, particularly associated with the current generation of biofuels. To be well informed about the latest developments, we engage in dialogues with leading institutions in this field and implement pilots with various types of biofuels. The use of sustainable biofuels will be of crucial importance to TNT in the future.
In Amsterdam we run 47 delivery vans on pure biodiesel (B100). Due to the abovementioned discussions on sustainability aspects of biofuels, however, we are cautious with increasing the number of these vehicles significantly at this stage. In our UK operations we operate 697 trucks on lower blends of biodiesel. In India, 20 trucks of our subcontractor fleet are run on a blend of biodiesel that is produced from an inedible locally-grown plant (Jatropha). These pilots will enable us to test the operational suitability and better understand the sustainability aspects of the different types of biofuels.
Electric vehicles
Electric vehicles are innovative transport solutions that provide clear environmental benefits and stimulate innovation. Based on our successful pilot with a 7.5-tonnes zero-emission vehicle in London, we decided to replace 50 pick-up and delivery (PUD) vehicles of our UK fleet with electric vehicles. We have also started a pilot with two vehicles in the urban area of Rotterdam, the first pilot of this kind on mainland Europe. We charge these vehicles’ batteries with electricity derived from sustainable sources, making it our first real zero-carbon emission transport solution.
Compressed Natural Gas
TNT is piloting the use of Compressed Natural Gas (CNG), an alternative fuel that produces significantly less emissions of PM10 and NOx as compared to standard fuel. In the future, when biogas (gas produced from biomass resources) becomes available commercially, we can run CNG vehicles on biogas without conversion. Besides reducing emissions of PM10 and NOx, the use of biogas also results in a significant reduction of CO2 emissions. This makes biogas a promising future transport solution. The use of CNG allows us to deliver our parcels in inner cities without being charged for environmental taxes.
Buildings
Energy efficiency of buildings
In order to monitor and improve our energy performance, we calculate our energy usage averages for our buildings.
| GRI indicator: EN 3 & EN 4 4 | |||||||||
| Energy efficiency buildings (measured) | Express | TNT | |||||||
| 2005 | 2006 | 2007 | 2005 | 2006 | 2007 | 2005 | 2006 | 2007 | |
| Electricity in kWh/m² | 128 | 123 | 117 | 73 | 69 | 87 | 93 | 84 | 94 |
| Gas in m³/m³ buildings | 2.7 | 2.5 | 9.01 | 1.3 | 1.32 | 1.1 | 2.1 | 1.92 | no data |
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The total energy use measured within TNT in 2007 was 317.8 million kWh, 15.8 million m3 gas and 0.9 million litres’ heating fuel.
In the past we reported gas usage per m3 building. Mail and GHO reported per m2 in 2007. We have decided to extend reporting to energy in GJ per m2 (electricity, gas, heating fuel and district heating) from 2008 onwards.
Sustainable electricity
As stated in our Planet Me programme, one of the ways in which we aim to reduce our CO2 emissions is by using sustainable electricity in our buildings. We have recently signed a contract to purchase all our electricity in the Netherlands as sustainable electricity from 2008 onwards.
| Sustainable electricity In kWh x 100,000 | GRI indicator: LT 4 & EN 4 | ||||||||
| Express | TNT | ||||||||
| 2005 | 2006 | ▲ 2007 | 2005 | 2006 | ▲ 20071 | 2005 | 2006 | ▲ 20071 | |
| Electricity use from sustainable sources | 2.7 | 5.3 | 8.0 | 6.9 | 25.9 | 30.3 | 9.7 | 31.3 | 38.8 |
| Electricity use from sustainable sources as % of total electricity use | 2.0% | 3.9% | 5.5% | 5.0% | 14.9% | 15.1% | 3.5% | 9.8% | 11.0% |
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Waste, noise and environmental incidents
| GRI indicator: EN 22 & EN 27 | |||||||||
| Waste | Express | TNT | |||||||
| In tonnes per FTE | 20051 | 2006 | 2007 | 20051 | 2006 | 2007 | 20051 | 2006 | 2007 |
| Total waste | 0.19 | 0.21 | 0.54 | 0.63 | 0.56 | 1.04 | 0.27 | 0.37 | 0.27 |
| Waste separated for recycling | 0.09 | 0.10 | 0.43 | 0.48 | 0.48 | 0.57 | 0.15 | 0.27 | 0.23 |
| % of recycled waste of total waste | 44% | 47% | 86% | 77% | 85% | 55% | 57% | 73% | 85% |
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The increase in the waste figures is due to greater reporting accuracy and is not related to an increase in waste.
The percentage of recycled waste of total waste increased within Mail due to a large volume of unaddressed mail being recycled in EMN Belgium. Within our Mail division, the number of customers for whom we deliver unaddressed mail has increased significantly over recent years. This is offset somewhat by greater environmental consciousness of its clients, leading to a large number of clients who indicated that they were not interested in unaddressed mail. As a result, the number of kilograms of undelivered unaddressed mail increased. We keep records of the undelivered unaddressed mail and inform our customers about this. Our customers can subsequently decide to diminish the number of kilograms of unaddressed mail, thereby reducing both costs and their environmental impact.
| GRI indicator: LT 7 | |||
| Noise complaints | 20051 | 2006 | 2007 |
| 4 | 2 | 2 | |
| Express | 0 | 9 | 55 |
| TNT | 4 | 366 | 468 |
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The two external noise complaints within Mail were complaints about noise in an urban setting.
Within Express a significant proportion of the external noise complaints is attributed to depot nuisance noise.
In Innight, the depots are located in dense urban areas, which give rise to complaints about the noise of their operations and deliveries in the early morning. The main operating times are between 5 a.m. and 8 a.m.
Finding solutions to reduce the noise factor is challenging. However, we are still looking into a suitable solution.
Noise is part of our environmental management system so that we conduct risk assessments for workplace noise and external noise nuisance to our local communities. The noise level assessments can only be carried out by a competent person and are conducted at different times of day. The majority of our workplace noise levels are well below the identified limits of the European Union directives. In Liège noise levels above these limits have been identified. Protective measures are in place to protect our employees.
| GRI indicator: EN 23 | ||||||
| Environmental incidents | On sites | Off sites | ||||
| 20051 | 2006 | 2007 | 20051 | 2006 | 2007 | |
| 7 | 3 | 3 | 1 | 1 | 0 | |
| Express | 2 | 1 | 6 | 0 | 0 | 2 |
| TNT | 9 | 4 | 9 | 1 | 1 | 2 |
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Within Mail there were three on-site environmental incidents in 2007. Two of these incidents related to oil leakages and one was related to a contracted-out mobile carwash station.
Within Express there were six on-site environmental incidents and two off-site environmental incidents.