TNT Australia Pty. Limited A.B.N 41 000 495 269

TNT Australia Pty. Limited A.B.N 41 000 495 269

Energy Efficiency Opportunities Public Report 2010 TNT is an international express freight transport company that transfers goods and documents to over 200 countries worldwide, with a focus on time-definite and daydefinite pick up and delivery. TNT picks up, transports, sorts, handles, stores and delivers documents, parcels and freight by combining its physical infrastructure, such as depots and trucks, with industry leading electronic and commercial systems to best serve its customers. This report constitutes the third public submission by TNT Australia Pty Ltd under the Australian Federal Government s Energy Efficiency Opportunities (EEO) programme and details energy efficiency opportunities either implemented, being implemented or under investigation within TNT Australia for the period 1 July 2009 to 30 June 2010. Information on the Energy Efficiency Opportunities programme can be found at http://www.energyefficiencyopportunities.gov.au/ Energy data reported under the EEO programme and reflected in this report has been submitted using the Online System for Comprehensive Activity Reporting (OSCAR) which may be accessed at https://www.oscar.gov.au/. Data input into OSCAR also satisfies the reporting requirements of a second Federal Government programme, the National Greenhouse and Energy Reporting Scheme (NGERS). 95% of TNT Australia s reportable energy use is detailed in this report, including Riteway Transport Pty Limited which operates under the control of TNT Australia. This report has been structured in line with the public report template provided on the Energy Efficiency Opportunities website. In line with its AS/NZS ISO 14001 certification and Planet Me commitments, TNT Australia continues to actively manage the environmental impact of its organisational activities. Planet Me is TNT s global environmental programme aimed at reducing the carbon footprint of its business operations, further information being available at http://planetme.tnt.com/. PART 1 - Information on assessments completed to date 1.1 Description of the way in which TNT Australia has carried out its assessments For the purpose of NGERS and EEO reporting, TNT Australia measures and monitors its consumption of fossil fuels (diesel, petrol, LPG, CNG) in company owned and operated vehicle / forklift fleets and electricity consumed at TNT Australia owned and operated sites. Vehicular fuels account for 88% of TNT Australia s energy consumption, electricity and natural gas use in 51 depots around Australia making up the remaining 12%. - 2 -

TNT Australia s adheres to its EEO Assessment & Reporting Schedule submitted on entry to the EEO programme. TNT s approach to conducting EEO assessments of its vehicular fleet includes (i) the considered introduction of new or improved vehicle technologies, (ii) optimisation of fleet size to match operational requirements, (iii) the optimisation of operational activity and (iv) education of drivers in eco-driving techniques. The organisational assessment of electrical efficiency within TNT Australia is primarily focused on larger distribution hubs and major regional depots that consume the bulk of purchased electricity. In its submitted Assessment & Reporting Schedule TNT undertakes to assess energy use at seven major sites (14% of all TNT facilities) which constitute 63% of organisational electricity consumption. Lower levels of assessment are conducted at individual TNT sites, each of which assumes local responsibility for energy efficiency initiatives via independent environmental committees. Principal investigation areas for electrical energy efficiency are freight distribution operational activities, office / warehouse lighting, heating, air conditioning and administrative functions that involve computing, printing or other technical functionality. 1.2 Assessed energy Energy use within TNT Australia for FY09-10 totals 549,469 GJ, an increase of 62,606 GJ (12.8%) over the previous reporting period. With TNT Australia s energy use impacted by many external factors, this outcome reflects the net balance of energy efficiency and productivity improvements, introduction of new equipment and infrastructure, increase in customer activity and changes to the makeup of national transport activity. Overall energy use within TNT Australia is highly dependant on the gross level of diesel consumption which, in turn, is a direct representation of prevailing levels of operational activity. The volume of freight transported by TNT during the 09/10 reporting period has increased over the last 12 months, which is necessarily reflected by an increase in gross fuel consumption. Analysis of a unitised measure such as Fuel Litres Consumed per Tonne of Freight Transported, however, demonstrates that fuel efficiency savings have been achieved as a result of focused fuel efficiency initiatives. This is to say that the linear relationship between freight volume and fuel use has flattened over recent years as a result of energy efficiency initiatives. This positive change is the result of a variety of fleet and operational initiatives over recent years including the removal of petrol powered vehicles from the TNT Australia fleet, the introduction of alternative fleet technologies (such as diesel-electric hybrid and CNG vehicles), an operational focus on network optimisation and freight consolidation, increasing use of GPS navigational systems and driver eco-driving training. Electricity consumption within TNT Australia, almost 10% of which is procured from sustainable GreenPower sources, has also increased in 09/10 as a direct result of increased business activity. A number of large scale depot development projects have - 3 -

been progressed during 2009/10 to improve TNT s overall electrical energy efficiency in the long-term. Table 1 TNT Australia energy use over the past three EEO reporting periods Energy Source FY 07/08 FY 08/09 FY 09/10 Diesel (kl) 9,215 9,484 10,931 Petrol (kl) 221 183 184 LPG (kl) 2,004 1,987 2,042 Electricity (kwh) 18,911,937 17,582,540 18,853,745 1.3 Accuracy of energy use data EEO Regulations require TNT Australia to detail why an accuracy of ± 5% for each assessment cannot be met. In this report, electrical energy assessments stemming from large scale depot development or refurbishment activities are reported to an accuracy of ± 30%. Energy savings to be derived from TNT depot development activities are unable to be estimated more precisely than this as each depot is unique in its operation and subject to local influences, and the claimed energy savings of many new technologies are as yet unconfirmed. Assessments related to vehicle replacement and Head Office opportunities have been reported to an accuracy of ± 15% again due to the unconfirmed technical performance of proposed new equipment and significant impact of behavioural considerations on anticipated energy savings. PART 2 Energy Efficiency Opportunities that have been identified and evaluated Assessment of energy efficiency opportunities during the last reporting period seeks to clarify the status of opportunities previously identified, in addition to highlighting additional opportunities for investigation. In the current reporting period energy totalling 5,475 GJ (1.0% of current consumption) has been assessed as potential savings. Note that TNT Australia s reported opportunities include only those with quantifiable energy reduction outcomes. Opportunities for which energy savings cannot be accurately quantified, such as the soon to be introduced On-road Driver Management System and Eco-driving or Environmental Awareness training, are not included in this report, despite the progression of these projects and obvious positive environmental impact. The reduction of particulate and greenhouse gas emissions from its vehicle fleet also remains a primary focus for TNT Australia, as evidenced by the continued replacement of older vehicles with Euro 4 compliant models, introduction of Euro 5-4 -

compliant prime movers ahead of legislative targets and trial of CNG powered Isuzu rigid trucks in Canberra where CNG refuelling facilities are available. PART 2A New assessments completed or not reported since last Public Report 2.1 Opportunities assessed to an accuracy of ± 30% or better In accordance with the continuous improvement requirements of ISO 14001 certification, TNT Australia assesses as an integral part of its business management process the efficient use of energy in day to day operations. This includes primarily the fuel used to power vehicles and electricity required for depot operations. In addition to depot developments already concluded TNT has during this reporting period continued to assess depot needs and development opportunities. While the main driver for many of these projects is the efficient and cost effective provision of TNT services, all depot development is aligned to a green model blueprint and aims to leverage off available government financial assistance that may be available at the federal or state level. With respect to current development opportunities, TNT is now in the process of assessing two Brisbane depots for development in line with Green Star standards. An external energy efficiency assessment of TNT s Newcastle depot has also been recently completed and negotiations are progressing for the similar assessment of other TNT sites. Table 2.1 New assessments assessed to an accuracy of ± 30% or better Total Energy Use 2010 - All Entities Assessed 549,469 GJ Total as a percentage of total energy use of the group covered by this report 95% Opportunity Status No. of Ops Accuracy Payback Estimated Savings per annum (GJ) New Newcastle - Energy efficiency opportunities Under Investigation 1 5% 4 + years 101 PART 2B Update of assessments reported in previous Public Reports 2.3 Opportunities assessed to an accuracy of ± 30% or better Opportunities assessed in previous reporting periods and recently completed include; opening of new, energy efficient freight depots in Townsville, Darwin and Perth, consolidation of multiple metropolitan depots into single facilities at both Darwin and Adelaide, rationalisation of the multi-function device (MFD) fleet at Head Office and upgrade to more energy efficient models, - 5 -

continued removal of petrol powered vehicles from the TNT fleet and replacement with energy efficient alternatives, introduction of 10 additional Hino diesel-electric hybrid trucks bringing TNT s total hybrid truck fleet to 30 vehicles, the largest such fleet in Australia. Opportunities for electricity reduction previously reported but not yet progressed include; installation of energy efficient lighting technology at Head Office (remains under consideration), installation of energy efficient lighting and / or electricity supply balancing and harmonisation technologies at the Enfield depot (remains under consideration), installation of energy efficient lighting at the Mascot Priority depot (scope of the project altered to relocate depot to a refurbished, energy efficient facility), consolidation and closure of Sameday Melbourne depot (depot relocated and consolidated with other TNT activities). Other projects now being progressed are listed below, however none of these are reported as energy efficiency opportunities because resultant energy savings are neither immediately obvious nor able to be quantified to a sufficiently accurate degree. relocation of the Mascot Priority depot to a refurbished, energy efficient facility at Botany (Sydney), relocation of the TNT Sameday (Melbourne) depot to a new facility at Tullamarine where International and Priority operations have also been consolidated, trialling of Isuzu CNG powered rigid trucks in Canberra, introduction of an advanced On-road Driver Management System to optimise metropolitan Pickup & Delivery movements, so as to improve service quality performance and minimise fuel use. Table 2.3 Update of assessments from previous reporting periods (± 30% accuracy) Total Energy Use 2010 - All Entities Assessed 549,469 GJ Total as a percentage of total energy use of the group covered by this report 95% Opportunity Status No. of Ops Accuracy Payback Carried forward from 2009 into current reporting period 0 < 2 years 2 <= 4 years 4+ years Darwin - Relocate existing Road depot to new energy efficient facility Implementation Commenced 1 30% 4+ years Darwin - Consolidate existing Priority depot with Road depot Implementation Commenced 1 5% 2 <= 4 years Estimated Savings per annum (GJ) 259 Perth - Relocate existing depot to new energy efficient facility Implementation Commenced 1 30% 4+ years 1,115 Head Office - Introduction of energy efficient flourescent lighting Under Investigation 5 15% 4+ years 937 Head Office - Consolidate multi-function device (MFD) fleet To Be Implemented 1 15% 2 <= 4 years 148 Townsville - Relocate existing depot to new energy efficient facility Implementation Commenced 1 30% 4+ years 74 Carried forward from 2008 into current reporting period Adelaide - Consolidate 2 existing depots into one facility Under Investigation 1 30% 4+ years 350 Enfield - Demand side electricity balancing Under Investigation 1 5% 2 <= 4 years 1,056 Enfield - Lighting efficiency improvements Under Investigation 1 5% 4+ years 569 National - Introduction of hybrid vehicles to small truck fleet Implementation Commenced 10 15% 4+ years 208 National - Replacement of petrol powered vehicles with diesel equivalents Implementation Commenced 22 15% 4+ years 658 Totals per payback period (GJ) 0 1,463 4,012 Sum of energy efficiency opportunities relevant ot the current reporting period (09/10) Total (GJ) 5,475-6 -

From previous reporting periods Brisbane - Consolidate existing Riteway depot with Brisbane South Implemented 1 10% 0 < 2 years 488 Sydney - Consolidate existing Sameday depot with Mascot Implemented 1 5% 0 < 2 years 700 Brisbane - Consolidate existing Archerfield depot with Brisbane South Implemented 1 5% 0 < 2 years 616 Geelong - Depot refurbishment including translucent roof sheeting Implemented 1 10% 4+ years 24 Melbourne - Transfer bulk of Hallam activities to Campbellfield depot Implemented 1 10% 0 < 2 years 479 Melbourne - Consolidate existing Sameday depot with another Implemented with altered scope 1 N/A Singleton - Relocate existing depot to more energy efficient facility Implemented 1 5% 4+ years 36 Canberra - Relocate existing depot to more energy efficient facility Implemented 1 10% 4 + years 234 Dubbo - Install translucent sheeting skylights on depot roof Implemented 1 5% 2 <= 4 years 35 Mascot - Lighting efficiency improvements Not To Be Implemented 1 5% N/A Head Office - Consolidation and replacement of computer servers Implemented 1 10% 4+ years 353 National - Introduction of hybrid vehicles to small truck fleet Implemented 20 5% 4 + years 416 National - Replacement of petrol powered vehicles with diesel equivalents Implemented 27 5% 4 + years 806 National - Consolidation and upgrade of forklift fleet Implemented with altered scope 1 5% N/A Totals per payback period (GJ) 2,283 35 1,869 Cumulative sum of energy efficiency opportunities across all reporting periods Grand Total (GJ) 9,661 PART 2C Details of at least three significant opportunities found through EEO assessments 2.5 Three significant opportunities Opportunities to further reduce electricity consumption within TNT Australia continue to be identified, however, electricity use is less than 12% of TNT s energy profile and no additional significant opportunities have been identified. Opportunities around electrical efficiency remain relatively standard from site to site and of low impact. With regard to vehicular fuels that constitute the bulk of TNT Australia s energy profile, no additional significant opportunities (beyond those listed in this report) have been identified in the current reporting period. Declaration The information included in this report has been reviewed and noted by the board of directors and is to the best of my knowledge, correct and in accordance with the Energy Efficiency Opportunities Act 2006 and Energy Efficiency Opportunities Regulations 2006. Bob Black Managing Director, Australia, New Zealand and Pacific Islands Bob_Black@tnt.com.au www.tnt.com.au - 7 -