DSV Annual Report 2022

12 DSV Annual Report 2022 Strategy and financial targets = III Raising our environmental ambitions We and the whole industry - need to do more to protect the environ- ment. To hold ourselves accountable to that goal, we have now commit- ted to reaching net-zero carbon emissions across our operations by 2050. To make sure this follows a common, robust and science-based definition, we follow the recognized SBTI Net-Zero Standard. We continue to work towards our 2030 emission reduction targets, and this year, we increased our target ambition for the 1.5°C global warming scenario for scope 1 and 2, in line with the latest climate science. We also recalculated our 2019 CO2 emission baseline for all scopes, to reflect our larger business size after the integration of Agility's Global Integrated Logistics business (GIL). Our biggest challenge to reach net-zero is technological; in our industry today there are still no carbon neutral solutions available at scale. Another challenge is that the majority of emissions in our supply chain are not in our full control. As an asset-light freight forwarder we do not own or control the trans- port equipment and we have limited direct influence on investments in new technologies. Still, we take responsibility for our scope 3 emissions and engage with our customers, suppliers and other partners in finding new and more sustainable transport solutions to be able to optimise sup- ply chains and offer our customers lower-emission transport alternatives. Our approach to managing the risk and opportunities from climate change is an embedded part of our risk management framework, as described on page 36. Driving innovation in logistics Delivering our targets will require a huge effort across our industry. We have strengthened our governance and initiated various organisational changes in DSV to anchor our ESG strategies in our business operations and help drive innovation and implementation of our environmental and climate initiatives. Solar panels on rooftops, partnerships with suppliers on sustainable fuel and pilots with electric trucks are examples of the inno- vation initiatives we worked on in 2022 to investigate the possibilities within these technologies. In 2023, we are introducing an internal carbon fee - the fee will be levied on our activities, based on their CO2 emissions. The funds generated will be invested back into our innovation initiatives. At the end of 2021, we implemented our Green Logistics services to help customers reduce emissions from their supply chains. We continue to promote and develop these services, and we expect growing demand in the coming years, as many of our customers have set their own, ambitious climate targets. Partnerships and stakeholder engagement No one, DSV included, can tackle planet-wide environmental challenges alone. Collaboration and partnerships are key to finding and implementing effective and long-lasting solutions to our most pressing sustainability challenges. We engage regularly with employees, customers, suppliers and investors on our sustainability strategy - and use their input and ideas to enhance our plans. During 2022 we evaluated more options for expanding existing partnerships and working with innovative new companies. These are part- nerships that can help us develop more sustainable energy sources, scale sustainable fuel technologies and run alternative trucking technology pilots. Integrity and transparency As one of the world's largest freight forwarding companies, our global network spans geographical and cultural borders across the globe, engag- ing with customers, suppliers, business partners and public authorities in more than 80 different countries. We are committed to conducting our activities with integrity and engag- ing with our stakeholders in an open and transparent manner. We strive to ensure that we apply and maintain uniform high ethical standards across our global organisation as defined by our Code of Conduct. To safeguard this focus, we run global awareness campaigns and recurring training programmes for all employees. As a freight forwarder we are aware of our position in the global logistics value chain in which our services are, to a large degree, performed by third-party suppliers. How our suppliers act reflects back on us as a com- pany and on our industry as a whole. Our Supplier Code of Conduct out- lines our ethical business standards, which we require our suppliers to follow. And our new centralised third-party risk management vetting platform and ongoing annual supplier audits are other measures to safe- guard compliance with our standards. Our social responsibility Freight forwarding is a people business, and ensuring that our employees thrive in an inspiring working environment is a central part of our HR strategy. We believe that a diverse and inclusive working environment consisting of people from across different nationalities, cultures, genders and ages generates better work dynamics and provides a stronger basis for engaging with our customer base. Being mindful of employee safety is also high on our agenda which we manage through several health and safety initiatives as well as addressing labour and human rights. We apply this mindset everywhere we operate globally, and when we integrate companies like GIL in 2021/22 - we make sure this culture and these standards are implemented across the organisation. In 2022, we performed our first global people survey - this has provided us with valuable information to further enhance these values and culture, making DSV an even more attractive place to work. Across the globe, we continue to engage in and support the communities we are part of. In 2022, the war in Ukraine only confirmed how quickly things can change and how important it is that we are ready to respond as a company with both financial and logistics support.

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