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 | |
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| Health and safety |
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| Stakeholder dialogue: Subcontractors |
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| Challenges 2007 | Accomplishments 2007 | Challenges 2008 | |
| Stakeholder dialogue: Customers and investors |
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| Assurance |
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| External benchmarks |
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| Diversity |
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| Corporate citizenship |
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| Reporting |
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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 | |
| 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% |
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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% |
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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.
| 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% |