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ENERGY MANAGEMENT

11 October 2016 v1

Kirit Patel

Energy Management

INTRODUCTION

• Case for Energy Management• Why bother with energy management?

• Deutsche Post DHL – GoGreen Environmental Protection Programme• Living Responsibility

• Ratings for 2015/2016

• Aspects and Impacts

• Climate Protection – a special responsibility

• Reaching Goals through Efficiency

• What else are we doing on Management Systems

• EMS 10 Steps for DHL Supply Chain (11 Countries certified to ISO 50001)

• Example Transport Efficiency Technologies – Light & Heavy Duty

Trucks

• Example Energy Efficiency Measures @ Real Estate

• Q&A at end of both sessions

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Energy Management

WHY BOTHER WITH ENERGY MANAGEMENT?

Helps to:

� Demonstrate sustainability leadership

� Maintain competitiveness

� Improve productivity and ensure more efficient use of our energy and environmental resources

� Unlock potential energy and environmental cost savings

� Reduce greenhouse gas emissions and other environmental impacts

� Reduce exposure to future energy price increases

� Improved risk management, including fulfilling compliance obligations

� Reduce maintenance costs and improve reliability

� Empower and educate senior management

� Reduce employee turnover and provide other benefits

Energy Management

ENVIRONMENTAL PROTECTION PROGRAMME

LIVING

RESPONSIBILITY

DPDHL will be the benchmark

for responsible business

PROVIDER OF CHOICE

Customers will see DPDHL asthe reference for logistics

INVESTMENT

OF CHOICE

Stakeholders will seeDPDHL as a companythat delivers against

high aspirations

EMPLOYER

OF CHOICE

Employees will want to work for DPDHL

Because it enrichestheir lives

VISION ……. to be recognised

as the leading benchmark for

responsible business.

GoHelp

GoTeachGoTeach GoGreen

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Energy Management

ENVIRONMENTAL PROTECTION PROGRAMME

LIVING

RESPONSIBILITY

DPDHL will be the benchmark

for responsible business

PROVIDER OF CHOICE

Customers will see DPDHL asthe reference for logistics

INVESTMENT

OF CHOICE

Stakeholders will seeDPDHL as a companythat delivers against

high aspirations

EMPLOYER

OF CHOICE

Employees will want to work for DPDHL

Because it enrichestheir lives

VISION ……. to be recognised

as the leading benchmark for

responsible business.

GoHelp

GoTeachGoTeach GoGreen

[1] http://www.dhl.com/en/press/releases/releases_2015

Energy Management

RATINGS - 2015/16

• External recognition of our Corporate Responsibility performance

Rating Score / Result

Dow Jones Sustainability Index (DJSI) Listed in World and Europeindices

FTSE4Good Europe and Global indices Listed

MSCI Europe and Global indices AAA

Oekom research C+ prime

Sustainalytics research Ranked 4 (out of143 companies), industry leader

CDP Global 500 Climate Disclosure Leadership Index

100 points (out of 100) for disclosure; “A” for performance

Ranking Rank

Newsweek Green Rankings 2016 Ranked 114 (out of 500)

Green brands Green brands seal Germany 2015

Supplier platforms Score / Rating

EcoVadis “Gold” category

EICC 96.8%

Source: Deutsche Post DHL Group

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Energy Management

Use of Water Use of Electricity and Gas

Depletion of non renewable natural resources

Pollution of Air e.g. Particulates, NOx, SOx, CO, Acid Rain.

Climate Change

Depletion of Ground and Surface water supply

Use of PackagingResource use / waste related impacts

Generation / Disposal of Wastewater

Depletion of natural resources / potential pollution of land, water and air

Generation of Noise, Vibration and Light

Disturbance to Locality

Fuel Use

Depletion of non renewable natural resources

Generation / Disposal of Waste e.g. waste oil; oil filters; batteries

Depletion of natural resources / potential pollution of land, water and air

Pollution of Air e.g. Particulates, NOx, SOx, CO, Acid Rain.

Climate Change

Spillage of hazardous materials e.g. fuel / oil

Pollution of land and water

ENVIRONMENTAL ASPECTS & IMPACTS

Energy Management

CLIMATE PROTECTION - A SPECIAL RESPONSIBILITY

• As a global logistics company, we move goods and information worldwide.

• With transport at the core of our business, we produce CO2,

the main cause of climate change.

• We initiated the GoGreen environmental protection program to accept

responsibility for the environment by reducing our impact.

28.0

21.9

6.1

2015

Transportation

subcontractor

emissions

(Scope 3)

Own emissions

(Scopes 1 & 2)

in million

tons of CO2e

Source: Corporate Responsibility Report 2015 Strategy 2020 Deutsche Post DHL Group

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Energy Management 9

• Deutsche Post DHL Group was the first

globally operating logistics company to set

itself a concrete CO2 efficiency target.

REACHING GOALS THROUGH EFFICIENCY

We aim to improve our CO2 efficiency

including subcontractors by 30 % by the year

2020, compared to our 2007 baseline.

In 2015 we have already improved our

efficiency by 25%.

We aim to improve our CO2 efficiency

including subcontractors by 30 % by the year

2020, compared to our 2007 baseline.

In 2015 we have already improved our

efficiency by 25%.

DPDHL Group CO2

efficiency

CO2 from energy consumption

Service delivered

Source: Shared Value | GoGreen, Deutsche Post DHL Group

Deutsche Post DHL Group CO2 Efficiency Target

Energy Management

WHAT ELSE ARE WE DOING ON MANAGEMENT SYSTEMS?

Implemented and maintaining a formal management system to:

• Analyse and manage our energy uses and energy consumption

• Improve our energy performance and the bottom line

• Fulfill European and Country legislation requirements on energy efficiency

However within DHL Supply Chain (MLEMEA), we have integrated the requirements of an energy management system with the requirements for an environmental management system that help to manage the impacts of our activities on the environment (ISO 14001: 2015 and ISO 50001: 2011).

The DHL Supply Chain Environmental and Energy Management System is called the EMS 10 Steps.

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Energy Management

HOW DOES A FORMALISED ENERGY MANAGEMENT HELP US?

� Provides a framework for continual improvement of energy performance

� Aligns resources for energy performance improvements with our business

goals

� Increases energy awareness and accountability

� Improves operational efficiencies

� Integrates energy management into daily operations

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Energy Management

MONITORING & MEASUREMENTMonitoring, measurement, analysis and evaluation

SUPPORTResources needed including technical, financial & humanCompetence & awarenessCommunicationDocumented information

RISK & OPPORTUNITIESDetermine legal & other

requirementsSignificant aspects; energy

review; risks & opportunities

SCOPE & REQUIREMENTSNeeds of interested partiesScope of EMS

IMPROVEMENTNonconformity and correctiveactionContinual improvement

OPERATIONOperational planning & controlEmergency preparedness & response

PERFORMANCE EVALUATIONEvaluation of complianceInternal audit

MANAGEMENT REVIEW Management review

OBJECTIVES AND PLANNING

EMS objectives and improvement plans

LEADERSHIP & COMMITMENTTop management commitmentPolicyRoles, responsibilities and authorities

12

1

5

4

2

3Environmental

Protection Program

10

9

8

7

6

Source, DHL Supply Chain

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Energy Management

TRANSPORT EFFICIENCY TECHNOLOGIES EXAMPLE

LIGHT & HEAVY DUTY TRUCKS

With a wide range of pilot tests DPDHL Group targets to identify and develop solutions

suitable to a broad range of use cases and local conditions.

With a wide range of pilot tests DPDHL Group targets to identify and develop solutions

suitable to a broad range of use cases and local conditions.

The globally diverse use cases and frame conditions require an enhanced

technology portfolio to achieve efficiency gains on a broad basis.

Don BurTeardrop

Trailer

Volvo DualFuel LNG

FusoCanter Hybrid

Volvo18T

Hybrid

MagtechSeriesHybrid

HinoDutro

Hybrid

VolvoBio-DME

DAF LFHybrid

Dual FuelCNG

Trucks

IvecoLNG

CNGTrucks

NExBTLAtego

Source: Shared Value | GoGreen, Deutsche Post DHL Group

not exhaustive

QuietCity

Truck Superlink Teardrop

GoGreen | Bonn | September 2016

EXAMPLE TRANSPORT INITIATIVES

1.Driver Training Programme (~3-5%)

2.Telematics (~2-3%)

3.Top Speed Limiter Programme (~2-3%)

4.Vehicle Aerodynamics (~3-5%)

5.Tear Drop Trailers (~6-7%)

6.Maximised Load Capability - Double Deck Trailers (~20%)

7.Modal Shift – Intermodal

8.Load-fill Optimisation

9.Multi-Temperature Trucks.

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Energy Management

EXAMPLE ENERGY EFFICIENCY MEASURES @ REAL ESTATE

• Implementation of highly efficient energy-saving bulbs

(e.g. T5, LED)

• CO2 efficiency: ~ 40–60% ↑

• Amortization: 1.5–5 years• Investment: 100–300 EUR/ light fitting

• Install innovative heating and cooling technology (e.g. Solar

heat)

• CO2 efficiency: ~ 25–50% ↑

• Amortization: ~ 7–15 years

• Investment: 20–30k EUR/heating system; 600–800 EUR/m2 solar heat panel

• Own decentralized generation of electrical power

• Installation of photovoltaic panels or wind turbines

• CO2 efficiency: 100% ↑

• Amortization: 10–20 years

• Investment: 18–60k EUR/ wind turbine; 3k EUR/kW solar panel

• Replace fuel-powered warehousing equipment (e.g.

fork lift, tow trucks) by electric-driven vehicles

• CO2 efficiency: 100% ↑

• Amortization: N. a.

• Investment: - k EUR/ vehicle

• Motion sensors, dimming sensors and timer switch

allow on demand illumination

• CO2 efficiency: ~ 40–60% ↑

• Amortization: 2–5 years

• Investment: 5k EUR/ mid-sized facility

• Install heating control of boilers

• CO2 efficiency: ~ 6–12% ↑

• Amortization: 1–2 years

• Investment: 4.5k EUR/ control unit

Use energy-saving lighting

Innovative power

generation

Apply new heating/ cooling

technologies

Introduce electric powered

equipment

Install motion sensors for

lighting

Modernize heating controls

Source: Shared Value | GoGreen, Deutsche Post DHL Group; 1) assumption: usage of non-renewable energy

Technology Description Example Results1)

Energy Management

QUESTIONS?