ESG: Environment
Reducing our impact on the planet
Key targets
Net zero by 2035 for direct and indirect emissions
Building energy consumption reduction of 20% per parcel by 2030
Highlights
We’re reducing carbon emissions across operations by focusing on our vehicles, infrastructure, and innovative products and services.
See how we're improving our sustainability by watching this video.
A 10% reduction of carbon per parcel since last year and reduced our absolute operational carbon by almost a third in the last 2 years
We donated almost £250,000 to charity last year
100% renewable electricity in operations
Launched our first fleet of e-cargo bikes into our operations including our first net zero city
Carbon data
Using the latest technology, we’re continually measuring and reviewing our carbon emissions. We categorise these into three ‘Scopes’ – a method developed by the most widely used global accounting tool, the Greenhouse Gas Protocol. Scopes 1 and 2 cover direct and indirect emissions resulting from business operations, while Scope 3 includes all other indirect emissions that are part of our value chain but lie outside standard operations. By our calculations, the total CO2e per parcel is currently 467g.
| Scope | 2022/23 Total (t.CO2e) | 2021 Total (t.CO2e) |
|---|---|---|
| Scope Scope 1 | 2022/23 Total (t.CO2e) 60,320* | 2021 Total (t.CO2e) 68,060 |
| Scope Scope 2 - Location Based (LB) | 2022/23 Total (t.CO2e) 5,361* | 2021 Total (t.CO2e) 5,387 |
| Scope Scope 2 - Market Based (MB) | 2022/23 Total (t.CO2e) 0 | 2021 Total (t.CO2e) 4,208 |
| Scope Scope 3 - All categories reported | 2022/23 Total (t.CO2e) 241,374 | 2021 Total (t.CO2e) 263,976 |
| Scope Total S1, 2 & 3 (LB) | 2022/23 Total (t.CO2e) 307,054 | 2021 Total (t.CO2e) 337,424 |
| Scope Total S1, 2 & 3 (MB) | 2022/23 Total (t.CO2e) 301,693 | 2021 Total (t.CO2e) 336,244 |
| Scope Scope 1 and 2 total (MB) | 2022/23 Total (t.CO2e) 60,320 | 2021 Total (t.CO2e) 72,228 |
Fleet
Ongoing exploration of alternative fuels for our fleet has put us in a really strong position across the first, middle and final mile as we head towards net-zero.
We use a biomethane compressed natural gas (CNG) powered fleet as an alternative to diesel. In 2023 we added 30 new Bio-CNG tractor units, bringing the total to 190 – 52% of our core tractor fleet. This means that 54% of our first mile fleet is powered by bio-CNG, and 31% of our entire core fleet is low-carbon.
Each new unit reduces CO2 emissions by more than 80% when compared to a Euro 6 diesel vehicle – a reduction of 150 tonnes of CO2 per vehicle and 24,000+ tonnes of CO2 across the entire Bio CNG fleet annually.
Other CNG benefits include reductions in air pollution impact, such as 70% less NOX, 99% less particulate matter, 90% less NMHC and 88% less methane. They’re also 50% quieter than diesel equivalents.
We partner with CNG Fuels, which sources 100% renewable bio-CNG for its stations. This is sourced from food waste, independently verified and approved by the Department for Transport’s Renewable Transport Fuel Obligation.
Our London Gemini site operates with 100% electric vehicles to service final-mile deliveries in central London, and in 2022/23 we doubled the number of zero-emission electric vans bringing the total to 37% of our total van fleet. 168 new zero- emission electric vans to support our out-of-home ParcelShop network. We aim to undertake all ParcelShop collections with electric vehicles at the earliest opportunity, and we’re installing charging points at our hubs and depots.
Buildings
Our infrastructure of hubs, depots and delivery units is a key part of our overall roadmap to become a low-carbon delivery business. We have already converted 100% of our purchased energy to REGO- backed (renewable energy guarantee of origin) UK renewables in our whole operation.
Our flagship 55-acre ‘superhub’ at Barnsley, which opened in 2022, includes solar panels, rain harvesting and acoustic bunds to help reduce noise pollution. There’s also a substantial biodiversity area to support local wildlife, and we’ve planted more than 25,000 new trees and hedgerows.
This builds on other eco-features we’ve already got in place elsewhere in our network. For example, our Rugby hub features transparent roof sections to increase natural lighting and LED lighting throughout to save energy. There’s a rainwater harvesting system and around 77% of waste is recycled.
Products and Services
Our proposition, developed and trialled in our bespoke Innovation & UX Lab, helps customers and retailers become more sustainable. Many of our innovations can easily be integrated into our clients’ checkout process as we support them on their own sustainability journeys.
Divert to ParcelShop and Locker
Customers can divert their parcel earlier in its journey – before it’s even on the road. Out of home is a priority because delivery/collection via ParcelShops and Lockers could reduce a parcel’s carbon footprint by on average 45%
E-cargo bikes
In 2022/23 we introduced our first e-cargo bike into our network. After an initial trial in East Yorkshire proved successful, we’ve since expanded this delivery model to 15 routes in Bristol, Edinburgh, London and Manchester. These bikes are net zero tail pipe emissions, which help us move towards our net zero 2035 target. We hit the milestone of +160,000 deliveries by YE 2022/23.
Packageless returns
Customers take their return item to a ParcelShop where staff will package it in an FSC-approved eco-friendly bag and consolidate into containers, reducing the amount of driver collections and CO2 emissions. We’ve seen millions of users to date and we’re developing this further with more clients.
Digital calling cards
Where we have an email address for the customer, couriers will notify them digitally when a delivery attempt has been made rather than leaving a physical card. We’ve reduced the number of printed paper slips by more than 70 million.
We’re continually improving first-time delivery success
Which means fewer delivery attempts and less time on the road. We’ve enhanced tracking capability; employed geofencing and ‘Parcel Vision’ technology; and partnered with innovative addressing service what3words to boost first-time delivery accuracy.