Reporting scope

TNT reports on an annual basis so that this report refers to the period 1 January 2007 until 31 December 2007. TNT has taken the greatest care to ensure that the information in this report is accurate. We gather our social responsibility (SR) data using a questionnaire. All data presented in this report is based on measurement, unless stated otherwise.

We enable you to evaluate our progress by presenting most figures in a relative way (using percentages and ratios), unless the reporting requirements request absolute figures. We define coverage as the number of FTEs working in entities that report data divided by total number of FTEs per division. The data clarification table in Annex 4 shows the coverage per indicator.

This report is based on reporting criteria developed in accordance with the guidelines of the A+ application level of the Global Reporting Initiative (GRI) G3 requirements and the GRI Logistics and Transportation sector supplement as far as relevant to TNT (see GRI G3 index in Annex 3). As a result, the number of reported qualitative and quantitative indicators increased significantly in 2007. This report is also based on the AA1000 framework for integrating the stakeholder process in the reporting process. We select key performance indicators (KPIs) on the basis of interactive stakeholder dialogue and the issues relevant to TNT’s operations.

In accordance with our reporting criteria, all acquisitions that occurred in the first half of 2007 are included in the reporting scope. The entities acquired in the second half of 2007 are not included. We have also excluded entities that were sold during 2007 and have adjusted our comparative figures accordingly. As a result, some 1,700 full time equivalents (FTEs) of the acquired entities are included within the reported data for Mail while a total of 5 FTEs of the sold entities in Spring have been excluded. The data reported for Express acquisitions include a total of some 20,000 FTEs and includes amongst others Huayu Hengye Logistics Company Limited (Hoau), which was acquired in 2007, Expresso Mercúrio S.A. (Mercúrio), which was likewise acquired in 2007, and ARC India Private Ltd (Speedage), which was acquired in 2006. Whenever the report refers to the ‘major acquisitions’, we refer to Speedage, Hoau and Mercúrio. We intend to have fully integrated these major acquisitions with respect to SR reporting within three years. Although the major acquisitions are required to report according to our reporting criteria, they have mainly reported 'no data' because these entities were not yet able to report reliable data. We clarify the impact of this on the overall coverage of our SR report in the data clarification table.

In 2007, TNT decided to present Innight as an entity separate from the Express division due to further optimisation of TNT’s network strategy. The data from Innight and TNT Group Head Office is incorporated in the TNT totals, but not shown separately. All figures are based accordingly on the information provided by our Mail division, Express division, Innight and TNT Group Head Office.

This report includes only data from entities that are fully-owned or majority-owned and from those joint ventures where TNT has significant influence with respect to social responsibility. For subcontractors, we report only on road traffic accidents fatalities and the subcontractor CO2 emissions, which are estimated. The figures below show the balance between our fully-owned and majority-owned operations and subcontractors in 2007.

These charts represent the cost structure of our operational activities. The 2007 figures in this report refer to fully-owned operations/joint ventures (including rent and lease contracts and temporary staff), unless stated otherwise. The reporting scope is almost similar to last year as the ratio of fully-owned operations versus contracted changed only slightly.

The following general changes enable readers to benchmark our performance against last year:

  • the data reported for Express excludes Innight, which is reported together with TNT Group Head Office data in the TNT total figures,
  • for most indicators major acquisitions do not yet report reliable data. Where they do, we report the results separately. The data clarification table shows the impact of the major acquisitions on the coverage,
  • we have updated our CO2 footprint methodology. We are using the latest conversion factors available (i.e. kg CO2/kWh per country). In the past we assumed that all fuel used by our vehicles was diesel.
  • from this year onwards we use separate records for the different types of fuel,
  • we have extended our CO2 footprint methodology by including CO2 emissions from our business travel,
  • we have included an estimate of the CO2 emissions produced by our subcontractors (as described in the section on CO2 emissions by subcontractors), and
  • in 2007 we adapted our reporting in accordance with the GRI G3 standards and include also the GRI Logistics and Transportation sector supplement.

Assurance Scope

External assurance process

Our external assurance work is performed in accordance with the Assurance Standard 3410 “Assurance Engagements relating to Sustainability Reports” as drawn up by the professional body of Dutch Accountants (NIVRA) and in line with the AA1000 Assurance Standard (AA1000 AS) in so far as the AA1000 goes beyond the requirements of Assurance Standard 3410.

Although our acquisitions in Brazil (Mercúrio), India (Speedage) and China (Hoau) are included in our reporting scope, we decided to exclude the reported data by these acquisitions from PricewaterhouseCoopers’ assurance scope. Owing to their recent acquisition dates, these entities are not yet sufficiently aligned to our systems. Obtaining assurance at this stage would therefore be unrealistic. Where these major acquisitions have reported on key indicators, this is presented separately.

For the past years it has been our objective to obtain reasonable assurance on all of our key performance indicators as listed at the beginning of the report. Therefore, we have increased the number of indicators for which we obtained reasonable assurance in 2007. This year PricewaterhouseCoopers provided reasonable assurance on:

  • the percentage of TNT workforce at certified sites,
  • workplace fatalities and road traffic accident fatalities (excluding subcontractors),
  • customer satisfaction,
  • CO2 footprint (excluding estimates of CO2 emissions by subcontractors),
  • sustainable electricity,
  • customer satisfaction,
  • employee engagement (for the Express division),
  • number of operations vehicles equipped with soot filters (for EU entities only), and
  • number of operations vehicles complying with the Euro 5 standard (for EU entities only).

All data and graphs related to these indicators have been audited and are therefore marked with a triangle ▲. For 2008 we have asked our external assurance provider to further extend the assurance scope and provide reasonable assurance on all of our key performance indicators, including the health and safety indicators.

All other report elements have been reviewed. You will find our external assurance report on page 50. For an overview of definitions used, please refer to Annex 5.

Internal audit

PricewaterhouseCoopers has assessed the design and functioning of our systems and processes used for data capture and reporting, and has verified the information in this report. As part of their assurance approach, PricewaterhouseCoopers used the findings of our internal audits performed by Corporate Audit Services (CAS). In 2007, CAS increased its involvement in social responsibility audits. The scope of these audits focused on procedures and controls regarding the social responsibility reporting process. The goal is to support management in improving procedures and controls and in embedding these in the TNT organisation. PricewaterhouseCoopers receives all CAS audit reports and meets regularly with CAS to discuss any findings. Furthermore, for selected entities, PricewaterhouseCoopers and CAS perform their assurance procedures jointly.