In: Operations Management
DHL is the world’s leading mail and logistics group and, in 2008, pushed by stricter emission standards expected by regulators and consumers, decided to start focusing its efforts on climate protection, mainly through the reduction of carbon dioxide (CO2) emissions.
DHL was the first logistics company to set a clear carbon emission target and kickoff a sustainability program in 2008: the “Go Green” program has a target to reduce in 30% the Carbon emission levels by 2020 (based on 2007 levels) and increase transparency on company ‘s carbon emission levels.
This was a breakthrough move in an industry that has a business model that relies heavily on carbon emissions to survive. The carbon reduction strategy proposed focused on the three main initiatives below (but was not limited to):
Results so far
As of 2015, DHL had already managed to reach approximately 25% out of the 30% reduction target set internally.
DHL has definitely taken a big step ahead just by implementing these reduction policies, but there is still room for further improvement. Going forward, I suggest that DHL start working on the three initiatives listed below:
Implementing these carbon reduction initiatives have the potential not only to impact the environment, but also to improve DHL’s results through cost reduction and top line growth through the creation of a brand that cares about the environment and wants to leave a legacy to the industry.