This section deals with our accomplishments over the last reporting period, as well as the challenges we still face. The challenges shown in the “Challenges 2007” column represent the objectives we set ourselves in our 2006 social responsibility report. The “Accomplishments 2007” column shows our performance in meeting those objectives, and the “Challenges 2008” column lists new challenges we have set ourselves for the coming year. We will report on our performance on these new challenges in next year’s report. We provide further detail on our challenges and accomplishments later in the report.

Challenges 2007 Accomplishments 2007 Challenges 2008
Targets
  • We will define quantitative targets for 2008 and will implement these in management systems and compensation schemes.
  • We defined our key performance indicators and implemented quantitative targets for non-financial indicators in our management compensation schemes.
  • We achieved almost all our certification targets in Mail and Express.
  • We aim to accelerate the implementation of OHSAS 18001 in our new operations in China, India and Brazil.
  • We will increase the number of certified entities in our Mail division.
  • We strive to improve every internal target indicator.
Health and safety
  • We have developed a policy for reporting on health and safety incidents.
  • We developed plans to integrate health and safety into the acquisition integration programme.
  • We will accelerate the implementation of our existing road, health and safety management system into the acquisition integration programme.
Stakeholder dialogue: Subcontractors
  • We intend to further our discussions with subcontractors to develop a Code of Conduct.
  • We investigated our subcontractors further and initiated the development of a Code of Conduct for our suppliers.
  • We have developed a method to estimate the CO2 emissions of our subcontractors.
  • We will continue and intensify the dialogue with subcontractors and finalise and implement a Code of Conduct for our suppliers.
Challenges 2007 Accomplishments 2007 Challenges 2008
Stakeholder dialogue: Customers and investors
  • We intend to engage customers further by creating a customer review panel for social responsibility.
  • We organised our first customer consultation panel in order to detail their wishes and concerns with respect to our social responsibility performance and to share best practices.
  • We also performed an investor dialogue to receive information on their ideas and needs with respect to social responsibility information.
  • We will continue to engage our customers. We plan to organise two meetings with our customers in 2008.
Assurance
  • We aim to attain reasonable assurance by our external assurance provider on all our KPIs.
  • We have expanded the number of KPIs for which we obtained reasonable assurance from our external assurance provider. This year we increased the involvement of our Corporate Audit Services (CAS), so that our external assurance provider could make use of the work of CAS.
  • We aim to obtain reasonable assurance on all of our KPIs.
External benchmarks
  • We aim to improve our position in the Dow Jones Sustainability Index.
  • We aim to improve our position in the AccountAbility global sustainability ranking.
  • We aim to improve our position in the Transparency benchmark of the Dutch Ministry of Economic Affairs over the coming year.
  • We improved our score in the Dow Jones Sustainability Index from 84 points to 92 and became overall leader in the Dow Jones Sustainability Index.
  • Although our position in the AccountAbility ranking declined slightly, our rating demonstrated that we outperformed our competitors.
  • We entered the top five in the Dutch Ministry of Economic Affairs’ Transparency Benchmark.
  • We were awarded the ACC award for the best sustainability report in the Netherlands in 2006, presented by the professional body of Dutch accountants Royal NIVRA.
  • We aim to maintain our leading position in the Dow Jones Sustainability Index.
  • We aim to improve our ranking in the AccountAbility benchmark.
  • We aim to improve our ranking on the Dutch Ministry of Economic Affairs’ Transparency benchmark.
  • We aim to establish a good position in the Carbon Disclosure Project.
Diversity
  • We will develop a plan of action to improve the percentage of females in management positions based on the results of a gender diversity survey performed in 2006.
  • In 2007 we focussed on matching the female high potentials with a mentor and on embedding tailor-made HR solutions for women.
  • We will continue to pay attention to a diverse workforce. The divisional HR departments are responsible for ensuring a diverse and inclusive workforce.
Corporate citizenship
  • We intend to launch a consistent, coherent and differentiating programme to reduce air pollution and CO2 emissions resulting from our operations.
  • We have launched Planet Me. This programme will help us to manage CO2 emissions from our operations and from our employees in their private lives.
  • We have signed a new contract with WFP.
  • We will embed Planet Me further in the organisation and will create processes to enable us to report externally about our forecasting on CO2 emissions from 2009 onwards.
Reporting
  • We have improved our reporting systems to enable us to improve the quality of our critical reviews.
  • In 2007 we evaluated our process for reporting and review and we are in the process of finalising a Manual for Reporting and Review which will enable us to improve the process of monitoring, internal review and reporting.
  • We will implement a more sophisticated data collection, monitoring and reporting system to further improve our internal controls.
  • We will implement the Manual for Reporting and Review throughout the company in the first quarter of 2008.

Our targets and results for 2007

In our 2004 social responsibility report we communicated our ambition to certify all fully-owned TNT operations in accordance with relevant international management system standards by the end of 2007. These standards were OHSAS 18001 (health and safety), Investors in People (training and employee development), SA 8000 (labour standards and personnel rights, only in non-OECD countries), ISO 9001 (quality) and ISO 14001 (environment).

These international standards are important as they provide an objective and accepted baseline to which employees, customers, suppliers and other stakeholders can refer. They are also a powerful management tool for steering performance and ensuring continuous improvement.

The 2007 targets for the Mail division were based on the FTEs and headcount by the end of 2006 of specific entities, earmarked for certification in 2007. Due to the declining population in Mail Netherlands and the increase in workforce in European Mail Networks (EMN), the composition of the population has changed during 2007. As a result, Mail’s certification percentages tend to decline. With this in mind, our Board of Management recently decided to restate the targets for the purpose of comparability in order to reflect these developments. Restated targets and actuals in the table below are both based on the FTEs and headcount by the end of 2007.

Mail certified the entities set by means of internal targets at the beginning of 2007, with the exception of Investors in People. The number of certified entities increased (Investor in People – two entities, OHSAS 18001 – six entities, ISO 9001 – four entities and ISO 14001 – six entities). For Investors in People, Mail would also have met the target of four entities, if certification of EMN Italy and Network VSP would have been completed successfully in 2007.

The 2008 certification plan for Mail is as follows: OHSAS 18001 (EMN Netherlands, EMN UK, EMN Downstream Access and EMN Italy), Investors in People (EMN Netherlands, EMN Downstream Access, EMN Italy, EMN Belgium, Cendris Head Office, Cendris Customer Information, Cendris Document Presentment and Cendris Print Management), ISO 9001 (EMN Belgium and Spring Tannat Brussel), ISO 14001 (EMN Netherlands, EMN UK, EMN Downstream Access and EMN Italy).

  2006 20071 2007
Mail Actual Restated target Actual
OHSAS 18001 (based on FTEs) 77% 76% 76%
Investors in People (based on headcount) 68% 78% 77%
SA 8000 (based on FTEs)2 not applicable not applicable not applicable
ISO 9001 (based on FTEs) 80% 80% 80%
ISO 14001 (based on FTEs) 77% 76% 76%
  • 1 – The targets as reported in our social responsibility report 2006 were: OHSAS 18001 81%, Investors in People 79%, ISO 9001 85% and ISO 14001 81%.
  • 2 – SA 8000 certification is only valid for sites in non-OECD countries, which is is 0.16% of the Mail division. For a complete list of non-OECD countries please refer to the glossary and definitions

Within Express we have excluded recent acquisitions from the challenge of full certification. Wherever possible, our ambition is to achieve certification within a three-year period, allowing acquisitions to adapt to our company (governance, systems, culture). Entities with a small number of employees are excluded based on a cost versus benefit analysis.

  2006 2007 2007
Express Actual Target Target performance
OHSAS 18001 (based on FTEs) 89% 99% 99%
Investors in People (based on headcount) 100% 99% 96%
SA 8000 (based on FTEs)1 48% 99% 98%
ISO 9001 (based on FTEs) 80% 99% 100%
ISO 14001 (based on FTEs) 57% 99% 100%
  • 1 – SA 8000 certification is only valid for sites in non-OECD countries, which is 14.34% of the FTEs of the Express division. For a complete list of non-OECD countries please refer to the glossary and definitions.

Express achieved its OHSAS 18001, ISO 9001, ISO 14001 targets. With the exception of China, which achieved certification in January 2008, Express also met its Investors in People target. Express met its SA 8000 certification target with the exception of Document Services Mauritius, which was likewise certified in January 2008.

In 2007 TNT Group Head Office received certification for OHSAS 18001, ISO 9001 and ISO 14001.

Dow Jones Sustainability Index

We benchmark our performance against the Dow Jones Sustainability Index. This index allows stakeholders to compare companies’ performance in social responsibility within and outside a company’s sector and it is also a source of company pride. In 2005, we entered the index as industry leader and managed to maintain this position in 2006. In 2007 we became the best performing company in the Dow Jones Sustainability Index (part of the Dow Jones sustainability assessment 2007 can be found in Annex 2). While we are currently supersector leader with a score of 92, there are areas that we recognise are open for further improvement, including talent attraction and retention, social reporting, occupational health and safety, corporate governance and climate strategy.

  2005 2006 2007
Total score TNT in percentages 75 84 92
 
Economic dimension 90 90 94
Environmental dimension 73 91 95
Social dimension 66 77 90

Accountancy Award

TNT was awarded the Dutch Accountancy Award 2007 for its social responsibility report 2006, presented by the Vereniging voor Milieu-Accountancy (Association for Environmental Accountancy or VMA) and Royal NIVRA, (the professional body of Dutch accountants). The jury praised the report for the comprehensiveness of the information, its limited size, businesslike writing style and the fact that it remained ‘to the point’. Other highlights were the fact that it was performance-driven and addressed genuine and material issues based on our stakeholder dialogue.

Our plans for 2008

In our 2006 report, we published a number of focus areas for which we aimed to set targets during 2007. Below you find the 2007 results for these focus areas per division. TNT is committed to improving in all of these areas in 2008. We have therefore, set internal targets that are cascaded throughout the organisation. We will focus particularly on fatalities at workplace and in road traffic accidents. TNT can only have one ambition: to accept no fatalities at all. Similar to our financial targets, we believe the system of internal targets will drive performance. Ex-post publication of these targets is not part of our policy.

Mission-related pay

The annual incentive scheme for the Board of Management reflects the accountability for our mission by rewarding both measurable financial and non-financial performance as required for sustainable results. The Supervisory Board sets the targets for the bonus scheme at the beginning of each financial year. The following financial and non-financial targets could apply:

Financial targets (70%):
  • earnings,
  • revenue growth,
  • economic profit, and
  • cashflow.

Depending on the tasks and responsibilities of each individual member of the Board of Management, the finacial targets are related to group and/or division performance.

Non-financial targets (30%):
  • gereral targets related to the implementation of TNT's strategy,
  • exceeding customers' expectations: continued improvements in TNT's relations with customers, which are measured through customer satisfaction surveys and by assessing the relationship with its customers in person,
  • 'instilling pride in our people': continuous improvement in engaging TNT's staff, which is measured though employee engagement surveys, and
  • sharing responsibility for the world, implementing the agreed standards on responsible global corporate citizenship and realising other measurable targets in relation to TNT's social responsibility ambitions (health and safety and energy and fuel efficiency).

The senior management incentive plan is structured similarly.

The Board of Management knows it asks the employees within TNT Mail Netherlands to make great sacrifices for cost reductions. To underline this understanding, the Board of Management agreed with the Supervisory Board to again limit its 2008 remuneration package. From 2008, the base salaries of the members of the Board of Management will increase in line with the collective labour agreements in the key European countries where TNT operates. For 2008, after four consecutive years of frozen base salaries, a 2% increase will be applied. The 2008 short- term and long-term incentives will again be capped at the 2006 levels, which means a freeze for the second consecutive year.

Mail Actual 2007
Health and safety
Blameworthy road traffic accidents /100,000 km 3.82
Lost time accidents/100 FTE 1.97
Absenteeism 5.3%
Employees
Employee engagement 74%
Customers
Customer satisfaction 89%
Environment
Small trucks (diesel/100 km) 8.7
Large trucks (diesel/100 km) 26.3
Electricity (kWh/m2) 117
Sustainable electricity as a % of total electricity 5.5%
Express Actual 2007
Health and safety
Blameworthy road traffic accidents /100,000 km 0.87
Lost time accidents/100 FTE 4.22
Absenteeism 4.1%
Employees
Employee engagement 77%
Customers
Customer satisfaction 90%
Environment
Small trucks (diesel/100 km) 12.1
Large trucks (diesel/100 km) 24.0
Electricity (kWh/m2) 87
Sustainable electricity as a % of total electricity 15.1%