DSV Annual Report 2022 slide image

DSV Annual Report 2022

23 DSV Annual Report 2022 Financial and non-financial performance = III ESG performance In 2022, we committed to an ambitious 2050 net-zero target, and we restated our 2019 baseline for CO2 emissions to now include GIL. We also completed our first global employee engagement survey and updated our human rights assessment programme. Performance on CO2 emissions In 2022, we raised our ambitions and committed to reaching net-zero carbon emissions across our operations by 2050, and we revised our 2030 emission reduction targets for scope 1 and 2. According to our revised targets, we will reduce our scope 1 and 2 emissions by 50% by 2030 and our scope 3 emissions by 30%. Scope 3 2019 Total Co₂ emissions ('000 tonnes) Scope 1+2 2022 2021 Baseline 15,930 15,373 20,526 441 254 409 15,489 15,119 20,117 Carbon intensity - Co₂e (g/tonne-km) Air transport 694.4 707.4 Sea transport 6.6 6.5 Road transport 97.5 98.7 739.5 6.3 98.1 Our total CO2 emissions in 2022 increased by 4% compared to 2021. The increase was primarily due to the full-year effect from GIL, but this was offset by declining volumes within air and sea due to the economic slowdown in the second half of 2022. The growth in scope 1 and 2 emissions was also impacted by the growth in our Solutions division and an increase in our own truck fleet. Compared to the 2019 baseline - now including GIL - our total emissions declined by 22%. The main reason for this was an overall decline in freight volumes in the period. As volume growth is expected to return in the coming years, we need to achieve lower carbon intensity per transport. Carbon intensity has generally improved over the years as transport equipment becomes more efficient enabling better utilisation of capacity. For sea freight, carbon intensity saw a negative development in 2021 and 2022, mainly due to less slow-steaming in a period with port congestion and tight capacity - we expect this situation to reverse in the coming years as more capacity is added. With our CO2 baseline in place, we are now working on a roadmap with initiatives which over time can contribute to reducing our emissions across all business areas. This includes the continued development of our Green Logistics offerings, the use of sustainable fuels, pilots with electric trucks, own production of energy and continued focus on optimising our own buildings. A business powered by people We successfully integrated GIL in 2022. Across the organisation we were able to retain the key GIL employees, which was very positive. In a tight labour market we also achieved a relatively stable development for existing DSV employees, and as a result, our employee turnover adjusted for synergies was 22.1%. This was on level with last year and we estimate that this is on level with our industry. Promoting health and safety capabilities across the organisation is a key priority for us in order to keep employees safe. It is reflected in our lost time injury frequency rate, which this year dropped to 2.8 compared to 4.5 in 2021. Conducting our business activities responsibly and applying strong ethical standards is high on our agenda. This includes ensuring that we comply with the latest human rights regulations, and in 2022 we developed a new and improved Human Rights programme which will be fully rolled out in 2023. Towards the end of 2022, we carried out a global engagement survey across our organisation. The survey achieved a high response rate and provided valuable feedback and insight on how we can make DSV an even better place to work. The results of the survey are currently being reviewed, and we look forward to addressing these findings over the coming year. Working with integrity The DSV Code of Conduct forms our ethical foundation and guides our principles, behaviour and culture. We conduct mandatory internal e-learning modules every year, and in 2022, we achieved a 100% completion rate among the employees assigned this year. As freight forwarders, we depend on our suppliers who perform the trans- port services. This year, we have implemented a new global third-party risk management system, enabling us to improve our risk assessments, approval and monitoring capabilities. In combination with new automated distribution and sign-off capabilities of our Supplier Code of Conduct, these solutions will help enforce our standards across our entire supply chain. We will continue developing the new platform in 2023, improving our supplier screening and evaluation capabilities.
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