Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established Audit and Compensation Committees; implemented annual Board self-evaluation

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Swedish Code of Corporate Governance

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Sustainability

Governance Achievements

• Established rules of procedure for the Board of Directors, Audit Committee, and Compensation Committee.
• Implemented the EFQM Excellence Model to monitor and evaluate the operational management system.
• Annual evaluation of Board and CEO actions.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Code of Corporate Governance, Companies Act, Annual Reports Act, IFRS

Environmental Metrics

ESG Focus Areas

• Climate
• Gender Equality
• Suppliers

Environmental Achievements

• Reduced carbon dioxide emissions by 36% since 2009
• Eliminated 500 air journeys, resulting in a 51% reduction in air transport emissions.
• Increased use of Collect products in Denmark, leading to more climate-efficient parcel delivery.

Social Achievements

• Launched PostNord app with 3.5 million downloads
• Improved Varubrev service in Sweden with increased traceability and 'Delivery to your door' option.
• Opened 450 new distribution points in Denmark.

Governance Achievements

• Implemented a new organizational structure with decentralized responsibility.
• Continued work on improving customer experience and brand image.
• Maintained constructive dialogue with politicians about the future of postal services.

Climate Goals & Targets

Environmental Challenges

• Declining mail volumes due to digitization
• Increased competition in the e-commerce and logistics markets
• Need for a financially sustainable mail business
• Maintaining high delivery quality while adapting to changing market conditions.

Mitigation Strategies

• Transformation of mail business with new delivery models and efficiency measures
• Investment in infrastructure and capacity for e-commerce growth (SEK 1.4 billion)
• Focus on core business of parcels and mail
• Constructive dialogue with politicians regarding postal service funding and regulation.
• Improved customer experience and brand image through quality improvement programs.

Supply Chain Management

Supplier Audits: 23 local audits conducted in 2019

Responsible Procurement

• PostNord’s Code of Conduct for Suppliers
• Customized requirements for road transport suppliers (salaries, taxes, driving hours, etc.)

Climate-Related Risks & Opportunities

Opportunities

• Increased use of renewable fuels and electric vehicles

Reporting Standards

Frameworks Used: GRI Standards (Core level)

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 8 (Decent work and economic growth)

PostNord's initiatives contribute to these goals through reduced emissions, sustainable transport, reliable delivery services, and responsible employment practices.

Sustainable Products & Innovation

• Reusable packaging

Awards & Recognition

• Most sustainable logistics brand in Europe (Sustainable Brand Index)

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable customer solutions
• Responsible supply chain
• Digitalization and automation
• Quality and customer service
• Work environment
• Diversity
• Financial performance

Environmental Achievements

• Reduced CO2e emissions by -42% relative to the 2020 base year (Scope 1 & 2).
• 60% of energy consumed in the PostNord fleet was from renewable sources.
• Established green corridors in Sweden and Norway.
• Worked on reducing the volume of air in parcels.
• Optimized transportation routes.

Social Achievements

• Initiated implementation of Truck Transport Social Guidelines (TTSG).
• Improved physical working environments.
• Improved conditions for suppliers' drivers.
• Honed recruitment processes for better workforce diversity.
• Reduced workplace accidents and sick leave days in some areas.

Governance Achievements

• Developed a work environment policy and signed a work environment agreement with trade unions in Sweden.
• Standardized and structured recruitment processes.

Climate Goals & Targets

Environmental Challenges

• Lower parcel and letter volumes.
• Increased transportation costs.
• High inflation and rising interest rates.
• Weak economic situation.
• Skyrocketing fuel prices.
• Driver shortages.
• Declining mail volumes.
• Fluctuations in parcel volumes.
• Fierce competition in last-mile transportation.
• Supply chain disruptions.
• Difficulties in adapting capacity to fast-changing volume fluctuations.

Mitigation Strategies

• Realigning operations.
• Ongoing adjustments to basic capacity.
• Overhauled mail terminal network.
• Improved clarity in advertising portfolio.
• Exited the mass communications market.
• Continuously adjusted prices.
• Introduced structural changes in administration.
• Increased focus on changing to a more flexible model.
• Investing in offering and infrastructure (parcel lockers).
• Implementing fuel surcharges and general price increases.
• Careful forecasting and work to increase flexibility in capacity.
• Close monitoring and analysis of the external environment and dialog with government agencies.
• Dialog with owners and government agencies to ensure reasonable conditions for compensation.
• Close monitoring of developments and dialog with government agencies.

Supply Chain Management

Supplier Audits: 20 audits/year (2022)

Responsible Procurement

• Compliance with PostNord’s Supplier Code of Conduct.
• Supplier sustainability requirements.
• Risk assessment based on self-assessment by suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall and flooding
• Storms
• Rise in sea levels

Transition Risks

• Changes in climate-related policies and legal requirements
• Cities limiting the number of carriers allowed
• Changes in consumption patterns
• Supply chain disruptions
• Failed technology-related investments

Opportunities

• Lower and more stable operational costs
• Increased revenues
• Reduced exposure to volatile energy costs
• Potentially easier access to external funding
• Increased in-house generation of renewable energy

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• 4
• 5
• 8
• 9
• 11
• 12
• 13
• 17

PostNord's sustainable logistics agenda is clearly linked to the UN's Sustainable Development Goals.

Awards & Recognition

• Industry's environmental prize to PostNord Norway

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Diversity and inclusion

Environmental Achievements

• Reduced CO2e emissions by 30% compared to the 2020 baseline year.
• Reduced CO2e emissions per parcel by 22% compared to the 2020 baseline year.
• 67% of energy used in own vehicle fleet was renewable.

Social Achievements

• Zero fatal accidents at work.
• Implemented measures to facilitate heavy lifting in production and improve driver conditions.
• Launched a Group-wide program, PostNord Professionals, for skills development.

Governance Achievements

• Implemented a new Enhanced Data Protection Framework.
• Increased the number of data protection coordinators.
• Developed new GDPR training materials.

Climate Goals & Targets

Environmental Challenges

• Continued challenging external conditions resulting in lower demand and high costs.
• Reduced parcel volumes and reduced profitability in business-to-business operations.
• Declining mail volumes.
• Tough competition in the last-mile transportation.
• High fixed costs making capacity adjustment challenging.
• Challenges related to the employment and working conditions for drivers.
• Risk of data breaches.

Mitigation Strategies

• Ongoing cost adjustments and price increases.
• Investment in sustainable and competitive offerings.
• Cost Leadership Program aimed at strengthening competitiveness.
• Adjustments to Group structure to take advantage of growth potential.
• New, more business-oriented organizational structure in Sweden.
• Investment in technology and customer offerings.
• Expansion of parcel locker network.
• Implementation of Truck Transport Social Guidelines (TTSG).
• Information Security Framework comprising technical protection, employee training, and monitoring of IT providers.
• Systematic work environment management in each country of operation.

Supply Chain Management

Supplier Audits: 32 audits in 2023

Responsible Procurement

• Supplier Code of Conduct
• Truck Transport Social Guidelines (TTSG)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall and flooding
• Storms
• Higher average temperature
• Rising sea levels

Transition Risks

• Changes in climate-related policies and legal requirements
• Uncertainties related to new technologies
• Changes in consumption patterns
• Disruptions in the supply chain

Opportunities

• Reduced use of fossil fuels
• Growth in market for circular business models
• Increased in-house generation of renewable energy
• Cooperation with other market participants

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

PostNord’s sustainable logistics agenda is clearly linked to the UN’s Sustainable Development Goals.

Sustainable Products & Innovation

• Nordic Swan ecolabeled e-commerce transportation

Environmental Metrics

ESG Focus Areas

• Sustainability
• Circular Economy
• Packaging

Environmental Achievements

• Initiatives to reduce packaging waste and increase reuse and recycling of packaging materials.
• Implementation of changes in transportation packaging to better adapt it to deliveries, resulting in a lower climate footprint and lower costs for suppliers.
• Transitioning from fossil-free to emission-free transportation (electric trucks).

Social Achievements

• Work with a code of conduct throughout the value chain.
• Raised over SEK 110 million for non-profit organizations (Apotea).

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Economic pressure affecting consumer purchasing behavior and prioritizing sustainability initiatives.
• Competition from foreign low-cost market participants not known for their sustainability.
• Logistical challenges in implementing circular services (second-hand sales, repairs, rentals).

Mitigation Strategies

• Developing a more comprehensive strategy that incorporates sustainability goals and clear action plans.
• Adapting business models to promote the reuse and recycling of products.
• Improving product descriptions to include more detailed and easily accessible information on the origin and environmental impact of the product.
• Implementing changes in transportation packaging to better adapt it to deliveries.
• Transitioning to emission-free transportation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of FCS-labeled paper raw materials; collaboration with suppliers to reduce packaging material and improve efficiency.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of more sustainable packaging solutions; transition to emission-free transportation.

Reporting Standards

Frameworks Used: Null

Certifications: Cradle to Cradle (DS Smith)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Reduced packaging material; use of FCS-labeled paper raw materials; exploration of reusable packaging systems.

Awards & Recognition

• Not disclosed