ESG: Environment
Reducing our impact on the planet
Key targets
Net zero by 2035 for direct and indirect emissions
Building energy consumption reduction of 20% per sq. ft by 2030
Highlights
We have made strong progress in 2023/24. Fundamental ESG principles – to reduce our impact on the planet, promote equality and fairness, and increase transparency around our operation – are now embedded in our business model, management objectives and company culture as we deliver for all stakeholders. Responsible delivery remains fundamental to our strategy and reflects our core values of ‘doing the right thing’ and ‘delivering for customers’.
A 21% reduction of carbon per parcel since last year and reduction of our absolute operational carbon by over a third since our 2020/21 baseline
Successfully trialled a hydrogen HGV in 2023 and adding the first electric HGV to our fleet
Continued to add more zero-emission e-cargo bikes into our final mile operation – in 2023/24 we delivered over 720,000 parcels this way
100% renewable electricity in operations
Carbon data
Using the latest technology, we’re continually measuring and reviewing our carbon emissions. We categorise these into three ‘Scopes’ – a method developed by the most widely used global accounting tool, the Greenhouse Gas Protocol. Scopes 1 and 2 cover direct and indirect emissions resulting from business operations, while Scope 3 includes all other indirect emissions that are part of our value chain but lie outside standard operations. By our calculations, the total CO2e per parcel is currently 370g.
| Scope | 2023/24 Total (t.CO2e) | 2023/24 (kg CO2e per parcel) |
|---|---|---|
| Scope Scope 1 | 2023/24 Total (t.CO2e) 57,313 | 2023/24 (kg CO2e per parcel) 0.077 |
| Scope Scope 2 - Location Based (LB) | 2023/24 Total (t.CO2e) 5,831 | 2023/24 (kg CO2e per parcel) 0.008 |
| Scope Scope 2 - Market Based (MB) | 2023/24 Total (t.CO2e) 0 | 2023/24 (kg CO2e per parcel) 0.000 |
| Scope Scope 3 - All categories reported | 2023/24 Total (t.CO2e) 217,781 | 2023/24 (kg CO2e per parcel) 0.293 |
| Scope Total S1, 2 & 3 (LB) | 2023/24 Total (t.CO2e) 280,925 | 2023/24 (kg CO2e per parcel) 0.378 |
| Scope Total S1, 2 & 3 (MB) | 2023/24 Total (t.CO2e) 275,094 | 2023/24 (kg CO2e per parcel) 0.370 |
| Scope Scope 1 and 2 total (MB) | 2023/24 Total (t.CO2e) 57,313 | 2023/24 (kg CO2e per parcel) 0.077 |
Fleet
We have continued to add to our low-carbon first mile fleet. 202 Biomethane Compressed Natural Gas (Bio-CNG) tractor units are now in service, bringing the total to more than 52%. Each Bio-CNG unit reduces CO2 emissions by up to 84% when compared to an equivalent diesel vehicle. Other bio-CNG benefits include reductions in air pollution impact, such as less NOX, less particulate matter and they’re also 50% quieter than diesel equivalents.
Alternative fuel exploration is ongoing, and we use HVO (hydrotreated vegetable oil) fuel as standard at our Brooklands depot, and we’ve updated the company car policy so that all new cars must be hybrid or electric.
We’ve invested in further charge points at our Rugby hub for colleagues with EVs. Meanwhile, 36% of our core van fleet is now electric and we plan to expand this further following the release of new specifications in 2024/25.
Buildings
Our infrastructure of hubs, depots and delivery units is a key part of our overall roadmap to become a low-carbon delivery business. We have already converted 100% of our purchased energy to REGO- backed (renewable energy guarantee of origin) UK renewables in our whole operation.
Our flagship 55-acre ‘superhub’ at Barnsley, which opened in 2022, includes solar panels, rain harvesting and acoustic bunds to help reduce noise pollution. There’s also a substantial biodiversity area to support local wildlife, and we’ve planted more than 25,000 new trees and hedgerows.
This builds on other energy saving features we’ve already got in place elsewhere in our network. For example, our Rugby hub features transparent roof sections to increase natural lighting and LED lighting throughout to save energy.
Products and Services
Our proposition, developed and trialled in our bespoke Innovation & UX Lab, helps customers and retailers become more sustainable. Many of our innovations can easily be integrated into our clients’ checkout process as we support them on their own sustainability journeys.
Divert to ParcelShop and Locker
Customers can divert their parcel earlier in its journey – before it’s even on the road. Out of home is a priority because delivery/collection via ParcelShops and Lockers could reduce a parcel’s carbon footprint by on average 45%
E-cargo bikes
We saw continued expansion of zero-emission final-mile delivery solutions, particularly in urban areas, and brought additional electric bikes into the fleet. E-cargo bikes are currently used in various major UK locations, including Bristol, Edinburgh, London, and Manchester, and in 2023/24 we delivered 720,000 parcels this way, significantly surpassing our initial forecast of 500,000. There will be a further roll-out of e-cargo bikes in 2024/25.
Packageless returns
Customers take their return item to a ParcelShop where staff will package it in an FSC-approved bag and consolidate into containers, reducing the amount of driver collections and CO2 emissions. We’ve seen millions of users to date and we’re developing this further with more clients.
Digital calling cards
Where we have an email address for the customer, couriers will notify them digitally when a delivery attempt has been made rather than leaving a physical card. We’ve reduced the number of printed paper slips by more than 70 million.
We’re continually improving first-time delivery success
Which means fewer delivery attempts and less time on the road. We’ve enhanced tracking capability; employed geofencing and ‘Parcel Vision’ technology; and partnered with innovative addressing service what3words to boost first-time delivery accuracy.