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 parcel by 2030
Highlights
We’re reducing carbon emissions across operations by focusing on our vehicles, infrastructure, and innovative products and services.
See how we're improving our sustainability by watching this video.
100% renewable electricity in operations
We’ve signed to the UN Race to Zero via Climate Pledge
New ESG software and Scope 1, 2 & 3 carbon assessment completed
We were the first UK parcel company to successfully trial electric HGV
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 520g.
| Scope | 2020 Total (t.CO2e) | 2021 Total (t.CO2e) |
|---|---|---|
| Scope Scope 1 | 2020 Total (t.CO2e) 79,137 | 2021 Total (t.CO2e) 68,060 |
| Scope Scope 2 - Location Based (LB) | 2020 Total (t.CO2e) 6,228 | 2021 Total (t.CO2e) 5,387 |
| Scope Scope 2 - Market Based (MB) | 2020 Total (t.CO2e) 8,442 | 2021 Total (t.CO2e) 4,208 |
| Scope Scope 3 - All categories reported | 2020 Total (t.CO2e) 241,494 | 2021 Total (t.CO2e) 263,976 |
| Scope Total S1, 2 & 3 (LB) | 2020 Total (t.CO2e) 326,859 | 2021 Total (t.CO2e) 337,424 |
| Scope Total S1, 2 & 3 (MB) | 2020 Total (t.CO2e) 329,072 | 2021 Total (t.CO2e) 336,244 |
| Scope Scope 1 and 2 total (MB) | 2020 Total (t.CO2e) 87,579 | 2021 Total (t.CO2e) 72,228 |
Fleet
Ongoing exploration of alternative fuels for our fleet has put us in a really strong position across the first, middle and final mile as we head towards net-zero.
We use a biomethane compressed natural gas (CNG) powered fleet as an alternative to diesel. In 2021/2022 we ordered 70 new Bio CNG tractor units, bringing the total to 160 – 50% of our core tractor fleet. This gives us the UK’s largest CNG parcel delivery fleet. Approximately 40% of our first-mile fleet is powered by Bio CNG.
Each new unit reduces CO2 emissions by more than 80% when compared to a Euro 6 diesel vehicle – a reduction of 150 tonnes of CO2 per vehicle and 24,000+ tonnes of CO2 across the entire Bio CNG fleet annually.
Other CNG benefits include reductions in air pollution impact, such as 70% less NOX, 99% less particulate matter, 90% less NMHC and 88% less methane. They’re also 50% quieter than diesel equivalents.
We partner with CNG Fuels, which sources 100% renewable bio-CNG for its stations. This is sourced from food waste, independently verified and approved by the Department for Transport’s Renewable Transport Fuel Obligation.
Our London Gemini site operates with 100% electric vehicles to service final-mile deliveries in central London, and in 2021/22 we ordered 168 new zero- emission electric vans to support our out-of-home ParcelShop network. We aim to undertake all ParcelShop collections with electric vehicles at the earliest opportunity, and we’re installing charging points at our hubs and depots.
Over 2022/23 we plan to increase the number of CNG tractor units by more than 12% and increase our dedicated out-of-home electric van fleet to 30%. We are also currently trialling an e-cargo bike that has been calculated to reduce last-mile carbon emissions by 89%.
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 will open in 2022, will include 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’re planting more than 25,000 new trees and hedgerows.
This builds on other eco-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. There’s a rainwater harvesting system and around 77% of waste is recycled.
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 up to 90%.
‘Local to Local’
Delivery by eCargo bikes, successfully trialled in our home city of Leeds. This has potential for a carbon-free ‘store-to-door’ delivery model while supporting local retailers post-Covid restrictions.
Delivery on foot
Carbon neutral delivery on foot to reduce emissions and congestion in urban areas. Successfully trialled in London, but we aim to explore scalability further. We’ve already delivered more than 75,000 parcels by foot and the benefits are clear: two electric vans and eight porters means six diesel vans are taken off the road.
Packageless returns
Customers take their return item to a ParcelShop where staff will package it in an FSC-approved eco-friendly bag and consolidate into containers, reducing the amount of driver collections and CO2 emissions. We’ve seen 4.2 million users to date and we’re developing this further with more clients in 2022.
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 technology; and partnered with innovative addressing service what3words to boost first-time delivery accuracy.