Total Zero Answering Your Questions

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1 What is Total Zero? Total Zero is the new carbon neutrality commitment from parcel and express service provider DPD in its six major markets from July In an industry first DPD will ensure that every parcel sent via its network will be carbon neutral - and at no extra cost to the customer. Carbon neutrality is achieved through a triple mechanism: measuring, reducing and offsetting. DPD s carbon footprint has been calculated regularly since 2006 and since then DPD has been reducing its carbon footprint. DPD intends to reduce it even more in the future. In parallel DPD will offset non avoidable CO 2 emissions thanks to the programme set up by its parent company GeoPost. What type of deliveries will be carbon neutral? Customers in France, Germany, UK, Netherlands, Switzerland and BeLux, the group s largest six markets, will be able to send carbon neutral parcels of all weights, sizes and types via DPD s network to any corner of the globe and at no extra cost to them. These six markets represent 80% of DPD s volume and revenue. In what markets will carbon neutral parcel shipping be introduced? Are there any plans to extend it further afield? Carbon neutral parcel shipping at no additional cost for the customer will be offered in the group s six largest markets - France, Germany, UK, Netherlands, Switzerland and BeLux - from July It is anticipated that other international Business Units will also join the Total Zero commitment in the future. The Total Zero approach will raise the bar for the logistics industry and its responsibility to the environment. DPD recognises that the logistics industry is highly carbon intensive and sees its commitment to carbon neutrality as an opportunity to help the industry as a whole to reduce its impact on the environment and play a role in the community. From when will carbon neutral parcel shipping be made available? Carbon neutrality will be applied to all shipments from the six markets from July

2 Why has DPD introduced the Total Zero principle? DPD takes its environmental responsibility seriously. Under its Responsibility programme, DPD is committed to reducing the impact of its business on the planet. As a logistics company, DPD has identified that CO 2 reduction is one of the greatest challenges the company faces, as well as its best opportunity to stand out in the CEP industry. It is this commitment to reduce the businesses impact on the planet that has led to the implementation of the Total Zero principle DPD s industry first carbon neutrality scheme which will be launched in July What will this initiative cost and how will it change the regular service? DPD parent company GeoPost will offset the carbon emissions generated in its six biggest markets from July 2012 approximately 550,000 tonnes in the first year. The amount offset annually will be reviewed regularly as other business units join the Total Zero plan. The objective is always to decrease the carbon intensity per parcel in each country, thanks to the group s comprehensive insetting measures. GeoPost will make this investment without passing on any charge to the customer. The high quality of service will not be affected by this programe, DPD will continue to provide clients with the best possible offering from a cost, service and sustainability point of view. What are the benefits for your customers? Firstly, this service will be provided for free. Second, it helps clients ensure their business decisions are aligned with their own sustainability values. Customers will be able to demonstrate to their clients that their parcel shipping is carbon neutral. How will DPD actually offset the carbon it generates? DPD mother company GeoPost has partnered with CDC Climat to manage its offsetting work. CDC Climat, part of Caisse des Dépôts group, is a highly credible partner in the climate field. It invests in carbon assets either directly, or in the form of innovative carbon funds open to long-term investors aimed at reducing CO 2 emissions by 60 million tonnes for

3 CDC Climat will provide GeoPost with carbon credits at the same level of quality that they require for themselves from economic and environmental point of view. They can ensure that the projects DPD chooses not only reduce carbon emissions, but also have economic, environmental and social co-benefits. GeoPost has partnered with CDC Climat to identify a range of carbon offsetting projects which it will support via Total Zero. Carbon reduction projects that DPD will support include: the transforming of alfalfa-feed production in France; bringing biodigesters to rural farming communities in Cambodia; and the reforestation and habitat restoration in Columbia. In addition to their carbon standard certified status all projects provide significant socio-economic benefits as well as environmental improvements. Apart from these projects, GeoPost supports other offset projects certified by best in-class standards, and in other regions of the world. However, DPD aims to go further and is looking at every aspect of its business to reduce CO 2 emissions year-on-year. The more DPD reduces its own CO 2 emissions the less CO 2 it will need to offset a sign of the company s genuine commitment to environmental sustainability. What exactly does offsetting involve? Carbon offsetting is a term used to describe how companies or individuals use carbon credits to compensate the greenhouse gas (GHG) emissions related to their business. They calculate the amount of carbon related to their business and implement actions to reduce them. The remaining emissions are offset by financing projects that reduce carbon emissions. The amount of GHG reduced thanks to these projects is translated into carbon credits. DPD has been measuring its carbon footprint on a regular basis for several years providing the organisation with a detailed understanding of the amount of carbon that must be offset. What is the offset perimeter? GeoPost has established an offset perimeter which was reviewed by CDC Climat to define how much CO 2 will be offset at no extra cost to the customer. The offset perimeter includes transport, buildings, packaging sold by DPD and paper consumption and represents carbon emissions of approximately 550,000 tonnes in the first year. The annual amount offset will be reviewed regularly as other business units join the Total Zero plan. The objective is always to decrease the carbon intensity per parcel in each country, thanks to insetting measures. 3

4 How did DPD select the projects it finances for offsetting? CDC Climat established a long-list portfolio of projects that GeoPost could offset against. These met pre-agreed criteria including technological diversity, project type and geographic spread. Projects ranged from biomass through to tidal to deforestation and geothermal. Each one must also have been certified by at least one or more carbon standard or label. These are developed by independent bodies which certify the quality of carbon credits and give third-party assurance. They include the Voluntary Carbon Standard (VCS); the Gold Standard (GS) certificate, awarded by the Gold Standard Foundation, Joint Implementation - United Nations Framework Convention on Climate Change (UNFCCC) and the CCB label by the Climate, Community and Biodiversity Alliance. Carbon reduction projects that DPD will support include: the transforming of alfalfa-feed production in France; bringing biodigesters to rural farming communities in Cambodia; and the reforestation and habitat restoration in Columbia. In addition to their carbon standard certified status all projects provide significant socio-economic benefits as well as environmental improvements. What exactly is insetting and how will DPD undertake it? Insetting is the process through which DPD will reduce the organisation s overall carbon footprint. It demonstrates DPD s commitment to its environmental responsibilities. Insetting can take many forms from reducing electricity use in our depots through to introducing more electric or natural gas powered vehicles to using delivery bikes in urban centres. All these activities will help reduce its carbon footprint making DPD even more environmentally responsible and at the same time meaning that it has less carbon to offset in future years. Only emissions that cannot be reduced will then be offset. While DPD mother company GeoPost will meet its Total Zero carbon commitments with offsetting partner CDC Climat, it sees insetting - i.e. reducing the carbon it produces as a company by making environmentally sustainable business decisions - as equally important. The insetting initiatives are led by the local Business Units which have each embarked on a series of initiatives designed to lower the company s CO 2 footprint. All these activities continually help to reduce DPD s carbon footprint, making DPD even more environmentally. 4

5 Exactly what insetting initiatives has DPD undertaken to date and what else will it embark on? DPD takes its responsibility to the environment seriously and makes effort to reduce its carbon footprint through insetting initiatives such as: Using delivery bikes and electric vehicles instead of small diesel vans in Germany (Hamburg / Stuttgart); The introduction of Compressed Natural Gas vans, which run entirely on natural gas in the Netherlands; Using rail instead of road to transport parcels in Germany; Reducing energy consumption in Chronopost buildings across France by using automatic light switches and locking thermostats; Favouring renewable energies like photovoltaic cells and wind turbines in all new depots of Exapaq in France; Using Chrono Bikes and electric vehicles for deliveries by Chronopost in many French cities; Motion detector light switches and energy efficient light bulbs in Belgium to reduce energy consumption; Using electric vehicles, Natural Gas vans and Bicycles for deliveries of Exapaq in many French cities; Eco-driving trainings for delivery drivers and the Drive Smart campaign in UK to raise awareness for Eco-driving; Reducing energy consumption by measures like sensor activated lightning and awareness campaigns in UK. All these activities are helping DPD to reduce its carbon footprint making it even more environmentally responsible. In what way is DPD qualified to launch such an initiative? DPD already has an advantage over its competitors in terms of its commitment to lower its carbon footprint by using its European road network to transport nearly all of its parcels. DPD s ECO 5

6 calculator demonstrates that sending parcels by road within Europe produces up to eight times less CO 2 than if sent by air (see for more information). DPD has a company-wide sustainability and corporate responsibility strategy called Responsibility, which is made up of three pillars: Planet environmental projects People projects for the workforce Community social projects and initiatives, commitment to society Under the Responsibility programme, DPD is committed to reducing the impact of the business on the planet. As a logistics company, DPD has identified that Greenhouse gas reduction is the one of the greatest challenges the company faces, as well as its best opportunity to stand out in the courier, express and parcel market. 6