IPC Postal Sector Sustainability Report 2012

Broadening
our scope
2012 IPC POSTAL SECTOR SUSTAINABILITY REPORT

THE NATURAL PARTNER FOR THE POSTAL INDUSTRY

1. Introduction

• EMMS participants 3
• Statement from the CEO 4
figures
• Key 8

2. Carbon Management

Environmental Measurement and
• he
T 9
Monitoring System
• Carbon management proficiency 12
• Carbon emissions 16

About the International 3. Posts’ Best Practice Cases

Post Corporation • roadening the scope
B 23
• Post's best practice cases 24

The International Post Corporation is a cooperative association of 24
member postal operators in Asia Pacific, Europe and North America.
Over the past two decades IPC has provided industry leadership by
driving service quality and interoperability, supporting its members
to ensure the high performance of international mail services and
developing the IT infrastructure required to achieve this. IPC engages 4. Annex Assurance
in industry research, creates business-critical intelligence, provides a
range of platforms for member post CEOs and senior management to • Indicator definitions 38
exchange best practices and discuss strategy, and gives its members an • Exclusions and estimations 39
authoritative, independent and collective voice. IPC also manages the • ndependent assurance report
I 40
system for incentive-based payments between postal operators. With
members delivering some 80% of global postal mail, IPC represents the
majority of the world’s mail volume. For more information please visit
our website at www.ipc.be.

EMMS participants
In 2008 International Post Corporation launched its
Environmental Measurement and Monitoring System An Post Ireland Magyar Posta Zrt Hungary
(EMMS), the first ever global approach for carbon emissions Australian Postal Corporation Australia New Zealand Post Ltd New Zealand
reduction for a services industry. Now, four years on, we are bpost Belgium Nigerian Postal Service Nigeria
well on track to reach the ambitious goals of cutting the Canada Post Corporation Canada Österreichische Post Austria
global postal sector’s carbon emissions by 20%. Over the Empresa Brasileira de Correios e Telégrafos Brazil Poste Italiane Italy
last year the programme has continued expanding both its Correos y Telégrafos Spain Posten Norge Norway
CTT Correios de Portugal Portugal PostNord Denmark and Sweden
measurement scope and its geographical reach.
Deutsche Post DHL Germany PostNL Netherlands
Entreprise des Postes et Royal Mail Group Plc United Kingdom
Télécommunications Luxembourg Luxembourg South African Post Office South Africa
Le Groupe La Poste France Swiss Post Switzerland
Hellenic Post-ELTA Greece United States Postal Service United States
Itella Ltd Finland

International Post Corporation Postal Sector Sustainability Report
3

Introduction

Statement from the CEO
With the passing of another year of commendable mitigation This year we have also seen a substantial increase in the
efforts and carbon emission reductions, International Post number of participants measuring and reporting emissions
Corporation is pleased to announce the results of the postal emerging not just from the operations under their direct
industry’s environmental sustainability efforts in 2011. control, but from the wider value chain. As these indirect
Under IPC’s global postal sustainability programme, the aspects can have a large impact, it is vitally important that
IPC Environmental Measurement and Monitoring System they are not overlooked in our measurement and monitoring
(EMMS), participating postal operators have collectively activities. In recognition of this fact, the 2012 IPC Postal
reduced CO2 emissions by over 3.5% since 2010, equivalent Sector Sustainability Report has been dedicated to the
to a reduction of 261,000 tonnes. management of emissions across the value chain. In the
following pages we illustrate how EMMS participants are
Our current rate of progress far exceeds the required rate going further, to address the indirect impacts throughout the
to meet our collective target of a 20% absolute reduction value chain, with case studies to provide concrete examples
in emissions by 2020. When combined with the emissions of some of the innovative mitigation approaches that are
reduction achievements of the past years, the EMMS now being rolled out across the sector.
participants are now almost three-quarters of the way to
achieving our group target. If we continue at this rate, We believe that collaboration is essential to effectively
we will reach our goal much earlier than expected. These address the environmental challenges we currently face.
impressive results reflect the continued efforts by the EMMS We have therefore been working hard to increase the
participants to innovate, both in terms of the efficiency of geographical scope of our global sustainability programme.
their products, services and technologies and in driving the As the first sector-wide carbon reduction initiative for a
behavioural changes needed to address the challenge of services industry, we have always focused on engaging as
climate change. many postal operators from around the world as possible.

4

Introduction

Following last year’s inclusion of the South African Post
Office in the EMMS, we are delighted to welcome two new
in our journey towards the achievements of our targets
for 2020. We will be working vigilantly to ensure that our
“ Our current rate of progress far exceeds
participants: Empresa Brasileira de Correios e Telégrafos participants are provided with the necessary support in their the required rate to meet our collective
(Correios Brazil) and Nigerian Postal Service (Nigeria Post). mitigation efforts, to provide on-going monitoring and target of a 20% absolute reduction in
These two new entrants represent a significant expansion oversight and to encourage the sharing of best practice
of the programme into two highly populated and rapidly approaches among peers. We invite you to listen, as we have emissions by 2020.
developing countries. We feel that this is a further done, to the multiple voices of our industry stakeholders and If we continue at this rate, we will reach
”
demonstration of how the postal sector is working to bridge look forward to further years of continuous improvement.
the perceived divide between developed and developing our goal much earlier than expected.
economies in tackling a truly global problem. Correios
Brazil is one of the largest postal sector organisations in the
world and is located in an important emerging economy. Herbert-Michael Zapf,
Furthermore, we hope that the addition of Nigeria Post IPC President ceo
as the second African postal operator in the programme
will support our ambitions to expand further still into the
developing nations of Africa.

Once again, I have found the considerable progress made
over the year extremely encouraging and would like to
congratulate all of our participants on their excellent
achievements in enhancing their sustainability performance.
However challenges remain and we must not be complacent

5

New Participant - Brazil

Correios Brazil is set to make far-reaching impact
through the EMMS programme, as Latin America’s largest
postal service
Empresa Brasileira de Correios e Telégrafos (Correios Brazil) has The social and environmental activities undertaken by Correios
been experiencing consistent growth and increasing revenues Brazil are aligned to national and international guidelines
in recent years as the post continues on its path to be a for sustainability, including the United Nations Millennium
world-class company in terms of organisational management, Development Goals and the thirteen national guidelines of
procedures and results. the instrument of the Presidency. The post has also positioned
its strategy based on the ‘Triple Bottom Line’ of economic,
Since its origins in 1663, Correios Brazil has been striving social and environmental concerns. In the current global
to create a modernised service that meets the quality landscape of major technological change and new habits,
expectations of its customers. Historically the company Correios Brazil is very much aware that environmental issues,
has always played an important role of social inclusion and including climate change, are increasingly emerging as critical
integration in national development. It has also acted as an topics of strategic concern to the growth and development
important government agent in the social field; its many roles of both enterprises and nations. Correios Brazil has already From left to right: Mr Wagner Pinheiro de Oliveira,
include the distribution of textbooks, the payment of pensions, been demonstrating its commitment to support these causes President, Correios Brazil; Dr Herbert-Michael Zapf,
the transportation of emergency support, campaigns related to for many years. The implementation of the Environmental President and CEO, International Post Corporation
breastfeeding and the training of needy youngsters. Correios Administration System (SGAC), has increased its capability to
Brazil will continue to push for excellence in its products and measure its environmental impacts and has driven continuous The company believes that the EMMS programme is
services in order to contribute to the competitiveness of the improvement. Among numerous other initiatives, the vitally important in driving down global carbon impacts
country and improve the quality of life of society at large. company has its EcoPostal initiative to reuse uniforms and from the postal industry through its provision of sector-
postal mailbags, promotes sorted recyclable waste collection wide management proficiency assessments, emissions
and responsible waste management, has carried out pilot measurement, sector benchmarking, results reporting and
testing of electric vehicles, and is involved in the direction of group targets. As the leading postal operator in Latin America’s
environmental education and the promotion of eco-efficient largest economy, Correios Brazil has acknowledged that its
products and services. participation in the programme represents a crucial expansion
Key facts - Brazil of the postal industry’s focus and co-ordinated carbon
Capital: Brasília In June this year Mr. Wagner Pinheiro de Oliveira, CEO of reduction action. The EMMS programme provides a global
Population: 193,947,000 Correis Brazil, announced the participation of Correios Brazil framework through which the post can support its sector
Total area: 8,514,877 km2 in the IPC Environmental Measurement and Monitoring peers in a collaborative way, share best practices, and drive
System (EMMS), a participation that is a logical next step continuous improvement as global problems require global
Official language: Portuguese
in the organisation’s environmental sustainability strategy. solutions.

6

New Participant - Nigeria

Nigeria Post (NIPOST) fully supports the EMMS and
is ready to play its role in further expansion of the
programme across the African continent
Nigeria Post provides vital services in both urban centres I am delighted that Nigeria Post has joined International Post
and rural communities, acting as an essential force in Corporation’s EMMS sector sustainability programme. I am in
community development for Nigeria’s population of over full support of the ambitions of IPC to bring African nations
165m. Since the country’s independence in 1960, Nigeria into this global system of carbon emissions management
Post has been striving to work towards the creation of a and reporting. As a consequence of our strong regional
service that is ever more efficient and responsive to public role and our participation in this sustainability programme
needs, whilst maintaining reasonable costs. as the second African participant, we will be able to set an
example to other developing postal operators and work to
Presently there are 1,176 post offices and over 2,442 further increase engagement with the programme across the
postal agencies throughout the Federation providing African continent. Efficient use of natural resources and the
postal, logistic, financial and other communication conservation of energy should be a key concern for all African From left to right: Mr Pieter Reitsma,
services to the populace. Based in the most populous nations. Furthermore, joining the EMMS programme will Sustainability Manager, International
African country and one of the largest economies on the allow Nigeria Post to contribute to an important global effort, Post Corporation; Mr Ibrahim Mori Baba,
continent, NIPOST is one of the leading posts in West share best practices and learn from its peers around the world. Postmaster General and CEO, Nigerian Postal
Africa. Service
In line with our participation in the EMMS, I affirm the
However, while we anticipate significant growth in the commitment of Nigeria Post to sustainable business
coming decades, we are also committed to ensuring that development and commit our solidarity to contributing to
this growth is managed in a fully sustainable way. To this the collective attainment of the sector’s carbon emissions
end, we hope to play a leading role in societal issues such reduction target for 2020.
as the campaign against stigmatisation of people living
with HIV and the fight against its spread, promoting a
greener and better working environment for our workers, Mr Ibrahim Mori Baba Key facts - Nigeria
carbon emissions reduction and other important topics. Postmaster General and CEO Capital: Abuja
We believe that collaboration between postal operators, Nigerian Postal Service Federation: 3
6 States and
working together across both developing and developed
Federal Capital
economies, is essential for us to be able to tackle the
common, global problem of climate change and which in
Population: 166,629,000
the long run would ensure a more efficient management Total area: 923,768 km2
of our resource and promote environmental responsibility. Official language: English

7

Carbon management
In 2011 the IPC Environmental Measurement and Monitoring System
participants continued their collective efforts to reduce carbon
emissions, resulting in yet another year of impressive results.
This year full Scope 3 reporting was included in the reporting, in order
to monitor carbon emissions throughout the entire value chain.
With Carbon Management Proficiency scores continuously improving
and carbon emissions decreasing significantly, participating posts
have once again seen their management and mitigation efforts pay off.

8

Carbon management

The Environmental Measurement and Monitoring System

The Environmental Measurement and Monitoring System (EMMS) was Comprehensive data collection
developed in 2008, in direct response to requests from CEOs working Carbon Management
throughout the postal industry. The system was built with the aim of The EMMS process begins with the participating postal companies Proficiency
implementing a common carbon measurement and reporting framework, completing an annual comprehensive self-assessment questionnaire
• Average CMP score of 70%
in line with customer requirements and stakeholder expectations. A pilot on their management proficiency which entails a primarily qualitative
• % improvement from
5
of the system was carried out in 2008, in collaboration with our EMMS assessment across ten management proficiency areas.
participants. 2010
The results of the questionnaire are analysed and used in our assessments • ON TARGET to achieve
In 2009, the full programme was rolled out with the first data collected for the Carbon Management Proficiency (CMP) section of the EMMS. 90% goal for 2020
and progress measured for the 2008 calendar and financial reporting The next part of the process involves reporting on performance trends,
year. This represents the benchmark year of the EMMS programme. sector averages and company scores, for both the qualitative Carbon
The objective is to drive both carbon management proficiency and Management Proficiency (CMP) section of the EMMS and a suite of 16
performance by providing a common reporting structure for posts to Carbon Performance Indicators (CPI) across five categories: Overall Sector
disclose their environmental management strategies and achievements. Indicators, Scope 1, Scope 2, Scope 3 and Activity Indicators.

EMMS participants employ around 2.0 million staff across the globe In order to ensure consistency of the data, participants are encouraged
at over 100,000 facilities, with well over half a million delivery and to use our calculator tool and are provided with an exhaustive guidance Carbon Performance
transport vehicles. Through fuel combustion, the energy used to heat document for reference. This year we have implemented an additional Indicators
and cool buildings and several other sources, these companies release plausibility checking process to further ensure consistency and accuracy of • .5% or
3
significant volumes of CO2 into the atmosphere. At IPC, we are working data collected across the group. The final results are subject to review by 261,000 tonnes
to systematically address these impacts and collaborating to combat global IPC and Maplecroft, an independent advisory consultancy specialising in
reduction from 2010
climate change across the sector through our EMMS programme. We global risks management. This review process also stimulates constructive
• PC group Scope 1 2
I
believe that through the sharing of knowledge and the encouragement feedback, monitoring and continuous improvement of the programme for
of positive action, the entire postal industry will be able to lower its the future. emissions
environmental impacts, thus addressing stakeholder concerns about its 7,173,000 tonnes
contribution to greenhouse gas emissions. The calculator tool and associated guidance materials are aligned with • ON TARGET to achieve
the requirements of international best practice standards including ISO 20% reduction goal for
14001 (environmental management), ISO 14064 (carbon accounting), the
2020
Greenhouse Gas Protocol, Dow Jones Sustainability Index, FTSE4Good,
and current best practice as used by members of the Carbon Disclosure
Project and the US Climate Registry. Each participant is provided with their
results in the form of an individual scorecard and assessment and given
ample opportunity to engage and share feedback on their experiences
and progress.

9

Carbon management

Broadening our scope
IPC continues to broaden the scope of participation in the EMMS indicated. For a detailed overview of participation in both the carbon
programme. This year we welcome two new EMMS participants, Empresa management proficiency and carbon performance aspects of the EMMS,
Brasileira de Correios e Telégrafos (Correios Brazil) and The Nigerian please refer to the exclusions and estimations in the Annex p39.
Postal Service (Nigeria Post) which will bring the total number of EMMS
participants to 25. Correios Brazil and Nigeria Post will be formally This report presents the overall results of our EMMS programme for
integrated and report their first set of EMMS results in 2013. the calendar year 1st January to 31 December 2011. In limited and
unavoidable cases, some degree of estimation has been necessary. For
The South African Post Office (SAPO) has submitted its quantitative carbon example, in order to ensure consistency in scope, some participants may
performance data this year, representing the company’s first step towards have been obliged to make estimations of their performance in certain
the achievement of our collective goal. As part of the review procedures areas. In such cases, estimations are made very carefully by the reporting
for this report, SAPO was also visited by our external accountant PwC. postal operator to ensure that they are as accurate and realistic as
With the aim of ever increasing disclosure, participants have increased the possible.
scope of their submissions by including subsidiaries or other parts of their
business such as newspaper delivery and direct marketing services. For In this report, IPC has also provided the range of coverage provided by
more information see Annex p39. the data for each indicator, calculated as follows: the percentage of the
business, as quantified by operational revenue, that reports data on a
Consistent with previous years, the figures presented in this report certain indicator, is divided by the total revenue of all EMMS participants.
continue to reflect the mail and parcel operations of our participants. Coverage data is provided in relevant carbon performance data tables in
Information relating to express and logistics services, while included in the brackets, in cases where this is not 100%.
overall EMMS programme, has not been included in this report in order
that we can focus our analysis on the core comparable mail and parcel To provide additional assurance, this report has been reviewed and
operations. To facilitate accurate year-on-year comparisons, all carbon approved by the management of IPC. We have followed reasonable
performance data is categorised according to whether it relates to the steps and taken great care to ensure that the information and indicators
original set of EMMS participants (excluding Österreichische Post, Poste published in this report are accurate to the best of our knowledge. In
Italiane and the South African Post Office, which have joined since 2009). addition, we have instructed our external accountant PwC to review the
The original set of participants can then be compared to the ‘extended key sector indicators. The metrics verified by PwC are indicated by a
group’, which also includes these three new entrants. The figures provided rhombus symbol (♦) accompanying the relevant reporting category. The
in this report relate to the original set of participants unless otherwise results can be found in the Assurance Report on p40.

10

Carbon management

Sector scorecard
IPC provides all participants with a detailed scorecard and assessment of Figure 1: EMMS Sector Scorecard
their performance in both carbon management proficiency and carbon
emissions performance. The scorecard contains more than 800 data
points and trend indicators to give each participant a detailed overview 2012
IPC EMMS
Sector Scor
ecard 2012
IPC EMMS Sector Scorecard
of their performance and to allow benchmarking with previous years. As Carbon pe
rformance
indicators
the standard EMMS scorecard for each company contains confidential
22 y Telégrafos,
EMMS participants bpost, Canada Post, Correos
The Carbon
Corp, Austria Post Corp, Post ELTA, Itella carbon em Performance sect
An Post, Australian Postal Groupe La Poste, Hellenic ion of the
Participating postal , Deutsche Post DHL, Le , PT issions and
CTT Correios de Portugal Posten Norge, PostNL, PostNord outlets and energy use EMMS is
an asse
organisations Zealand Post, Poste Italiane, States Postal Service
financial across the
six categor ssment of the qua
information, we are not in a position to make these public. However, in Ltd., Magyar Posta, New services.
Post Office, Swiss Post, United The results ies of ma ntitative
Luxembo urg, Royal Mail, South African presented
here focus il, parcels, expess aspects of carbon
EMMS Gr on the cor (na
e 'mail and tional and interna
managem
301,262m oup Emiss ent
tional), log , including
Postal volume (items) ions (Mail parcels' acti

line with our intention to promote disclosure and increase transparency of
vities. istics, reta
52,819,000m
2 Parcel) il
Building area - Tonnes of
2,039,000
Scope
2008
CO
2
No. of employees

the EMMS programme, this year, we have produced an additional overall
2009
571,000 2010
No. of vehicles 2011
12 Key drivers
iency 8,360,000

sector scorecard to be made available to the public. Carbon management profic
cy is measured using the
EMMS questionnaire, which
involves an assessment
section takes inco account
across ten areas
the qualitative aspects
7,763,00
7,434,000
Scope 2 ele
in buildin ctricity purchased
7,173,000
gs for use
Carbon Management Proficien systems approach. This significant has been the sing
-check-act' management source sinc le most
aligned with IPC's 'plan-do cy (CMP). programm e the sta
y's carbon management proficien 2011 e, makin rt
g up 48.5% of the
of each postal compan 2009 2010 3 combined
Scope 1
2008 NC of the
2 impact
64.9/100 69.9/100 10,014,000 Outsourc in 2011.

The sector scorecard contains overall group summary information such as 61.3/100 ed
transport or sub-contracted
8,722,000
ncy score 56.4/100 10,292,000 has been
Carbon management proficie
road
87.9/100 90.4/100 source sinc the most
84.9/100 83.3/100 making up
e the sta
rt of the
significant
– IPC leader Required pro
31.7/100 impact in 42.2% of the total gramme,
a list of participants, total group postal volumes, total vehicle numbers and 21.4/100 annual red
19.1/100 20.4/100 uction to
achieve the
2011. Scope 3
– IPC lowest (on Scope IPC target
1 2 em of 20%
to achieve 90% by 2020 issions) by
s in line with the IPC target
the total reported group building area. Carbon management proficiency Annual pro 2020
Annual progres EMMS gress in line
Leader Group Em with this -139,333
(score 2011) issions Re IPC target tCO
(score 2008) (score 2009) (score 2010) IPC range ductions pr 2

ogress
scores are provided for 2008-2011 including a graph and summary table
Lowest
Tonnes
Annual emis
(%) 9,000,000 sions redu
ction (on
Scope 1

detailing performance trends for the four year period. In terms of carbon
2) towards
100 2020 targ
8,500,000 et (Mail and
Parcel)
Target 90
8,000,000

performance, the sector scorecard summarises the total group emissions 80

70
7,500,000 -7.1%

reductions progress in comparison to the group target and provides an 60

50
2020
Target
6,688,000
7,000,000 - 4.2%

tonnes
6,500,000 - 3.5%
explanation of EMMS reporting protocols. 40

30
6,000,000
2020

The two page EMMS sector scorecard can be found online at
5,500,000 Target
20 -20%
5,000,000
10

http://www.ipc.be/Services/Sustainability/EMMS/EMMS_Scorecard

and reporting

management
and verification

Performance

Value chain
Measurement
0 2008

engagement
Further de

Disclosure
and standards

Management
and Strategy
2009
tails

procedures

Employee
Policy and

Targets
2010

Activity
Principles
The figures 2011
relating to presented on this
scorecard
58.8% 65.8% 59.8% this scorec express and logisti reflect the
74.0% ard in ord cs core mail
81.9% 65.6% 60.5% 71.7% accurate er that we services, while inc and parcel
yea luded in
2011 47.1% 79.0%
66.2% 72.7% 51.8% 60.0% 54.3% Austria Pos r-on-year compar can focus our ana the overall operations of our
56.9% t, Poste Ital ison lysis EM par
45.4% 74.1% 81.4% 58.9%
52.5% 50.5% iane and s, the data presen on the core compar MS programme, has ticipants. Informa
50.5% the South ted tion
2010 64.8% 68.8% African Pos relates to the origable mail and par not been
78.6% 54.3% 52.9%
t) which cel operat included on
40.5% 69.0% 49.7% 42.9% have join inal set of EMMS ion
2009
50.2% 60.5% 58.7% 41.9% ed since
2009. participan s. To facilitate
63.5% 71.4% 50.9% ts (excludin

EMMS in other publications
2008 30.5% ENVIRON
MEN g
TAL MEA
Date: 2012 V2 SUREMENT
AND MO
NITORING
(EMMS) SYSTEM
MENT AND MONITORING SYSTEM (EMMS)
ENVIRONMENTAL MEASURE

Date: 2012
V2

As the EMMS programme continues to expand its global reach and
demonstrate impressive group-wide management proficiency increases recognised. Apart from being published in over a dozen sustainability
and emissions reduction achievements, its success is increasingly being reports of our participants, the EMMS has also been acknowledged
by global media and external publications, an indication that the
programme is having an influential effect across the sector.

We anticipate further recognition of the programme and attention
focused on the achievements of our EMMS members as we continue to
progress towards our targets for 2020.

11

IPC Postal Sector Sustainability Report 2012

IPC Postal Sector Sustainability Report 2012

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