RESPONSIBILITY REPORT - International Post Corporation

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RESPONSIBILITY REPORT - International Post Corporation
RESPONSIBILITY
REPORT
RESPONSIBILITY REPORT - International Post Corporation
CONTENTS                                                                                                                                    Business ethics   OUR
                                                                                                                                             7
                                                                                                                                            p.                COMMITMENT
                                                                                                                                                              This Responsibility Report is a Communication on Progress (COP) of the DSV Group
                                                                                                                                                              under the United Nations Global Compact, which DSV signed in 2009.

                                                                                                                                            Employees         The Responsibility Report gives information and data on the responsibility activities
                                                                                                                                            and working       of the Parent and of subsidiaries of the DSV Group in which the Parent has an
                                                                                                                                            environment       ownership interest of more than 50%.

                                                                                                                                            10
                                                                                                                                            p.                The Responsibility Report covers the twelve-month period, ended 31 December
                                                                                                                                                              2018. This Responsibility Report is a part of management’s review and covers the
                                                                                                                                                              statutory reporting on corporate social responsibility and the gender composition
                                                                                                                                                              of senior management as prescribed by sections 99a and 99b of the Danish
                                                                                                                                                              Financial Statements Act. Further, this report serves as DSV’s statement according
                                                                                                                                                              to section 54, part 6 of the UK Modern Slavery Act.

                                                                                                                                                              With this progress report, we would like to express our continued support to the
                                                                                                                                                              United Nations Global Compact initiative and its ten fundamental principles as well
                                                                                                                                                              as its efforts to achieve the Sustainability Development Goals.

Letter from the CEO  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3                          Environment       We also encourage all our partners to support the Global Compact initiative.
                                                                                                                                            and climate
DSV at a glance .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
Our approach to Responsibility .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
Business ethics .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7
                                                                                                                                            15
                                                                                                                                            p.

Employees and working environment .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
Environment and climate .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 15
Suppliers .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20
Community engagement  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 23                                       Suppliers
                                                                                                                                                                                                  WE SUPPORT

                                                                                                                                             20
Non-financial highlights of the DSV Group .  .  .  .  .  .  .  .  . 26
Global Reporting Initiative (GRI) index  .  .  .  .  .  .  .  .  .  .  .  . 29                                                              p.
RESPONSIBILITY REPORT - International Post Corporation
3   DSV Responsibility Report 2018               Letter from the CEO

SUSTAINABILITY
IS A COLLECTIVE
RESPON­SIBILITY
As a global transport and logistics provider,    This involves regular updates to the DSV
DSV facilitates global trade to support eco-     Code of Conduct, which will be published in
nomic growth. We employ more than 45,000         a new version in the beginning of 2019.
people, and our international network counts
more than 200,000 suppliers all over the         Employees will subsequently be trained in
world. In other words, we interact with the      the contents: if we practice what we preach,
world, and the world interacts with us.          we lead by example and can lead the way in
                                                 our interactions with our stakeholders.
Global impact carries great responsibility,
and we take that responsibility seriously. We    MAKING ENVIRONMENTALLY
recognise that we must act as leaders and        CONSCIOUS DECISIONS
set high standards for ethical and responsi-     We have a responsibility to keep talking
ble behaviour. We expect our partners to do      about the industry’s environmental impact.       with emergency relief support and contin-       ciples of UN’s Global Compact and to sup-
the same, because together we make up            In our daily dialogue with customers and         ued our support to Red Cross | Red Cres-        porting UN’s Sustainable Development
links in the same chain.                         suppliers, we must push for environmentally      cent development projects in some of the        Goals. These initiatives are supported
                                                 conscious decisions when choosing routes         most vulnerable parts of the world.             worldwide by thousands of companies,
To ensure that our partners operate accord-      and transport modes.                                                                             institutions and states.
ing to the same standards as DSV, we will                                                         This global partnership is also a local part-
devote even more attention to improving          To provide a solid foundation for choosing a     nership, where DSV companies engage with        We cannot make lasting, global changes
our supplier screening processes in 2019.        sustainable solution, we will work to increase   local Red Cross | Red Crescent organisations    without global consensus, global legislation
                                                 transparency and accuracy in the carbon          wherever our help is needed.                    and global efforts. The world is a shared
LEADING THE WAY                                  emission reports we provide to suppliers                                                         space, and we must adopt a collective ap-
First and foremost, of course, it is essential   and customers in 2019.                           WE CAN DO MORE TOGETHER                         proach to sustainability and responsibility.
that all DSV employees act according to the                                                       While DSV is a significant global player, we
same ethical standards.                          CREATING VALUE BEYOND                            are only one company, in one industry. We
                                                 FINANCIAL RESULTS                                cannot improve the world single-handedly.
We must continously inform our employees         To extend our responsibility beyond our          Because we can do so much more together,
of our DSV Code of Conduct and train them        business activities, we have a global part-      we are strong believers in partnerships and
accordingly to demonstrate ethical behaviour     nership with Red Cross | Red Crescent. In        in joining forces. That is part of the reason   Jens Bjørn Andersen
when conducting DSV business.                    2018, we strengthened this partnership           why DSV is firmly committed to the prin­        CEO
RESPONSIBILITY REPORT - International Post Corporation
4   DSV Responsibility Report 2018                DSV at a glance

DSV AT                                                                                                                        SUPPORTING OUR CUSTOMERS

A GLANCE
                                                                                                                                    SUPPLY CHAINS

                                                                                                                        KEY RESOURCES AND PERFORMANCE DRIVERS
                                                                                                     People — IT systems — Global network with local presence — Standardised global workflow
                                                                                                                              Carrier relations — Industry knowhow

                                                                                                                                          From Shipper

                                                                                                                                              A
                                                                                                         Shipment booking                                            Cargo consolidation
                                                                                                              Pick-up               FREIGHT FORWARDING           Purchase order management
                                                                                                             Warehouse                   SERVICES                    Cross-dock terminal
                                                                                                  Documentation & customs clearance                                       Insurance

FREIGHT FORWARDING AND                            ONE OF THE BIG FIVE
VALUE-ADDED SERVICES                              DSV was founded in Denmark in 1976 and
                                                                                                                                         TRANSPORT
DSV is a global freight forwarder offering        has since then evolved to become the
                                                                                                                                      (SUBCONTRACTED)
transport and logistics services supporting       world’s fifth largest freight forwarder gen-
our customers’ entire supply chain. We pro-       erating total revenue of DKK 79,053 million
vide traditional transportation of goods as       in 2018 and with a skilled workforce of
well as a variety of value-added services.        more than 45,000 employees.                               Warehouse                                          Labelling, configuration, testing
                                                                                                          Picking/packing               LOGISTICS AND                     Distribution
                                                                                                                                         DISTRIBUTION
                                                                                                        Cross-dock terminal                                  Documentation & customs clearance
Value-added services include purchase or-         ASSET-LIGHT BUSINESS MODEL                                                               SERVICES
                                                                                                          Deconsolidation                                         E-commerce fulfilment
der management, cargo consolidation, cus-         DSV is an asset-light freight forwarder. As
toms clearance, cargo insurance, warehous-        such, we plan and coordinate transportation
ing, distribution and other related services.     from shipper to consignee as illustrated in
                                                  the business model to the right. The physical
Our services are offered through our three
divisions – Air & Sea, Road and Solutions –
                                                  transport is outsourced to suppliers – air-
                                                  lines, shipping lines, haulage companies etc.                                               B
delivering a full range of transport and logis-
                                                                                                                                          To Consignee
tics solutions throughout the more than 75        The value we add and the services we offer
countries in which we operate.                    as freight forwarders are therefore based
                                                  on the skills and industry knowhow of our                                      SUPPLY CHAIN VISIBILITY
                                                  employees, our specialised and integrated IT         Alerts —Exception management — Track and Trace — Proof of delivery — KPI reporting
                                                  infrastructure, and our global network.
RESPONSIBILITY REPORT - International Post Corporation
5   DSV Responsibility Report 2018                  Our approach to Responsibility

OUR APPROACH
TO RESPONSIBILITY

DSV is committed to being a responsible             All SDGs are as such relevant to DSV, but
and reliable business partner and an active         some have more significance to and impact on
participant in the global community.                our business activities than others.

By working systematically within the frame­         SPHERE OF INFLUENCE
work of the United Nations Global Compact, we       As we are freight forwarders and run our
have dedicated ourselves to improving and re-       business based on an asset-light business
porting on matters of social responsibility that    model, we do not control the transport
are within reach of our core business activities.   equipment that carries and delivers our ser-
                                                    vices. We outsource the physical transport
We have been committed to the UN Global             to suppliers and as such the value we create
Compact since 2009, and we continue to              for our customers is through our logistics
apply responsibility initiatives targeted at        planning and network capabilities.
changing and shaping practices that contrib-
ute to improving sustainability and raising         Therefore, applying the SDGs within our
ethical standards within our line of business.      sphere of influence mainly depends on our
                                                    global network of offices, warehouses and
Due to this commitment, we have, since              terminals, which constitute the framework
2009, reported regularly on our progress on         for the services we provide.
the UN Global Compact’s ten principles of
anti-corruption, environment, human rights          Although we have a limited direct influence
and labour.                                         on the transports carried out by suppliers,
                                                    we actively engage with suppliers and cus-
By committing to the UN Global Compact, we          tomers to create awareness and pursue
apply the 17 UN Sustainable Development             possibilities for establishing partnerships in
Goals (SDG) as a framework for defining our         order to address the SDGs.
strategies and measuring our progress.
RESPONSIBILITY REPORT - International Post Corporation
6   DSV Responsibility Report 2018               Our approach to Responsibility

KEY RESPONSIBILITY FOCUS AREAS                                                    GOVERNANCE                                       level and with the same urgency as our
Based on our commitment to the UN Global                                          The responsibility activities are anchored       other key risks.
Compact, the SDGs and our sphere of in­                                           with the Board of Directors, who, together
fluence, DSV’s key strategic responsibility                                       with the Executive Board, sets the direction     This alignment means that responsibility is-
areas are:                                                                        for our responsibility strategy, targets and     sues and risks are identified, assessed, and
                                                                                  group policies.                                  mitigated on an ongoing basis and used by
• Environment and climate;                                                                                                         the Board of Directors as basis for decision
                                                                                  DSV’s Group CSR Department plans, man-           making and development of our business
• Business ethics;                                                                ages and follows up on ongoing global re-        model in alignment with market- and stake-
                                                                                  sponsibility activities throughout the organi-   holder expectations.
•	Employees and working environment;                                             sation in collaboration with the Executive
                                                                                  Board.                                           Identified risks and actions to mitigate are
• Suppliers.                                                                                                                       described in the chapters of this report.
                                                                                  Implementing and driving our responsibility
These areas are highly relevant to our activi-                                    strategies and initiatives ultimately rests      OUTLOOK
ties, and within these we can make a differ-                                      with the management of our local sub­            If we look at responsibility trends within the
ence and seek influence. By matching our key                                      sidiaries.                                       transport and logistics industry, we see an
responsibility areas with the SDGs of great-                                                                                       increasing focus on conducting business in a
est influence, we find that we can make the                                       Ensuring compliance with our responsibility      safe and responsible way throughout the
greatest contributions to the following SDGs:                                     policies is also a local matter due to our de-   value chain.
                                                                                  centralised structure and empowerment.
                                                                                  Follow-ups are carried out by our Group          It is our assessment that the most signifi-
                                                                                  Control­ling and CSR department, who con-        cant responsibility trend that will continue to
                                                                                  trol repor­ted data and perform local “on        impact our activities in the coming years is
                                                                                  site” compliance re­views to ensure that         the focus on developing logistics solutions
                                                                                  DSV’s responsibility policies are followed,      with a lower carbon footprint that also re-
                                                                                  and related data is reported regularly.          main cost-effective, as that is a dominant
                                                                                                                                   requirement from customers. Additionally,
                                                                                  RISK MANAGEMENT                                  we believe that conducting business in an
                                                                                  Besides applying the SDGs as the basis for       ethical manner and influencing our suppliers
                                                                                  our strategic work and for achieving targets,    to do the same will also attract significant
                                                                                  we also apply the SDGs as a framework            focus in the coming years.
                                                                                  when we assess our responsibility risks in­
                                                                                  herent to our operations.                        These areas are closely linked to our key re-
                                                                                                                                   sponsibility areas and areas that have had
                                                                                  Our responsibility risk management process       and will continue to form a significant part
                                                                                  is aligned with the main risk management         of our responsibility efforts.
                                                                                  process of DSV as described in the 2018
                                                                                  Annual Report to ensure that our responsi-
                                                                                  bility related risks are addressed at the same
RESPONSIBILITY REPORT - International Post Corporation
7   DSV Responsibility Report 2018   Business ethics

                                                       DSV wants to conduct
                                                       business in an ethical and
                                                       responsible manner, no
                                                       matter where in the world
                                                       we do business. It is essential
                                                       that our employees share the
                                                       same ethics when operating
                                                       across different cultures all
                                                       over the world.

    BUSINESS
    ETHICS
RESPONSIBILITY REPORT - International Post Corporation
8   DSV Responsibility Report 2018                 Business ethics

Our behaviour is defined by the fundamental        revision process, we pay particular attention
principles outlined in the DSV Code of Con-        to specifying areas that employees encounter
duct. The Code of Conduct establishes rules        digitally, such as data privacy and social media.   Our tax contributions
for acceptable business conduct to make
sure that employees act safely and ethically       We will increase the amount of Code of Con-         When it comes to tax, we have made a choice to act in what we
in their everyday work. All employees must         duct training and introduce an e-learning           consider to be a fair and responsible way: we aim to comply
follow the Code of Conduct, as these princi-       module with the new publication in 2019 and         with tax legislation and do not engage in aggressive tax plan-
ples ensure that DSV always acts as a trust-       we will continue to raise awareness and in-         ning to avoid tax payment. We believe in contributing to the so-
worthy business partner around the world.          crease understanding of expected behaviour.         cieties and local communities in which we operate, which is why
                                                                                                       our goal is to pay taxes following our commercial setup.
The main principles of the DSV Code of Con-        The goal is to ensure that all employees act
duct related to business ethics and fair be-       safely and understand the scope of their re-        In 2018, DSV paid taxes in more than 75 countries and our
haviour emphasise the importance of ensuring       sponsibility as part of DSV. We will finish and     corporate tax payments amounted to DKK 851 million.
that employees act safely and lawfully. For        publish the new version in 2019.
                                                                                                       Through our tax payments, DSV contributes directly and indi-
example, the DSV Code of Conduct clearly
                                                                                                       rectly to local communities and to achieving most of UN’s 17
states that corruption or bribery of any kind is   REPORTING VIOLATIONS THROUGH DSV’S
                                                                                                       sustainability goals, specifically SDG 16 and SDG 17.
unacceptable, and that it is prohibited to en-     WHISTLE-BLOWER PROGRAMME
gage in activities that in any way breach com-     Compliance with DSV’s fundamental ethical
                                                                                                       DSV does not practice aggressive tax planning or use tax ha-
petition law or involves a conflict of interest.   principles is crucial and non-negotiable. If an
                                                                                                       vens. Sometimes, however, offshore company constructions
                                                   employee or business partner witnesses a breach
                                                                                                       are inherited via mergers and acquisitions. In that case, the pri-
CODE OF CONDUCT AWARENESS                          or a suspected breach, he/she is urged to report
                                                                                                       ority is to liquidate these companies as soon as possible.
We have processes in place to make sure that       it through our whistle-blower programme.
employees are aware of the expected be-
                                                                                                       Currently, DSV has non-operational subsidiaries in British Virgin
haviour outlined in the DSV Code of Conduct.       Unlawful or non-compliant conduct can be re-
                                                                                                       Islands, Curacao and Guernsey, which are all classified by the EU
                                                   ported through the dedicated hotline or web-
                                                                                                       as non-cooperative tax jurisdictions. These entities inherited
All new employees receive a copy of or a link      site, which is administered by an external pro-
                                                                                                       from acquisitions are all dormant and under liquidation, which,
to the DSV Code of Conduct when they start         vider to ensure anonymity. In 2018, the scope
                                                                                                       unfortunately, is proving to be a cumbersome and lengthy pro-
working for DSV. In addition, we provide           of the whistle-blower programme was ex-
                                                                                                       cess, but remains a focus area.
awareness introduction as part of our global       tended, and the programme is now available
onboarding programme for all employees –           to both internal and external stakeholders.
and special training for managers. Further, in
2018 we completed special training in re-          Globally, we follow up on reported incidents
gions selected on a risk-based approach. In        and make sure appropriate action is taken. In
this way, we strive to continously raise the       2018 the number of reports received through         More about DSV’s approach to taxes can be found in;
level of awareness of DSV’s business ethics.       the whistle-blower programme was approxi-           DSV’s global tax policy is publicly available at
                                                   mately the same as in 2017, and still at a low      dsv.com
In 2018, we reviewed and updated the DSV           level. Most of the received reports fell outside
Code of Conduct. The new Code of Conduct           the scope of the whistle-blower programme,          DSV’s tax payments for 2018 are listed in
will entail more explicit guidance on expected     as they were employee issues that had to be         DSV’s 2018 Annual Report
behaviour, and make it more accessible. In our     resolved by local management.
RESPONSIBILITY REPORT - International Post Corporation
9   DSV Responsibility Report 2018               Business ethics

KEEPING DATA SAFE
As a global company, it is critical that we
ensure compliance with international data
privacy laws. In the European Union, the
General Data Protection Regulation (GDPR)
came into force in May 2018, enforcing
                                                                   Further information is available:
stricter requirements for data privacy. DSV
                                                                           Code of Conduct
carried out a project to ensure that the level
                                                                      Modern Slavery Statement
of our data privacy setup continues to be
                                                                      Whistle-blower programme
sufficient. We made improvements to issues
identified. In addition to the improvements,
we conducted training for employees based
on their role and responsibility. We will con-
tinue to work on keeping a high level of
data security.

          SUBJECT                                     OUR TARGETS FOR 2018                               OUR ACHIEVEMENTS IN 2018                           NEXT STEP AND TARGETS FOR 2019

    TRAINING                                      We will continue to maintain procedures to          We have automated procedures in place ensur-       We will ensure awareness of the updated Code
                                                  ensure that all new employees at management         ing that all new employees at management level     of Conduct through:
                                                  level receive training in the DSV Code of Con-      received training in and passed related testing    -	Global roll-out and awareness campaigns
                                                  duct. For present employees at management           on the DSV Code of Conduct.                           for the Code of Conduct and whistle-blower
                                                  level we will repeat the training continuously in                                                         programme.
                                                  appropriate intervals.                              During 2018, these procedures underwent a
                                                                                                      review as preparation for the roll-out of the      -	Training in the DSV Code of Conduct for
                                                  We will carry out training programmes for           updated Code of Conduct training in 2019.             employees below management level in
                                                  the DSV Code of Conduct for employees                                                                     selected regions.
                                                  below management level within selected              Further, special Code of Conduct training was
                                                  fields in 2018.                                     carried out in selected regions based on a risk    -	Uphold procedures to ensure that all new
                                                                                                      approach in 2018.                                     employees at management level receive
                                                                                                                                                            training in the DSV Code of Conduct. Existing
                                                                                                                                                            employees at management level will repeat
                                                                                                                                                            the training at appropriate intervals.

    COMPLIANCE REVIEWS                            A compliance review must be carried out in all      24% of all operating entities underwent a com-     A compliance review must be carried out in all
                                                  operating subsidiaries of the Group at least        pliance review in 2018 which is an acceptable      operating subsidiaries of the Group according
                                                  once every three years. A compliance review         proportion according to our risk-and materiality   to an established risk and materiality approach,
                                                  consist of follow-up on policies and proce-         based approach, and our future target.             according to which visits take place in intervals
                                                  dures within our responsibility work.                                                                  between two and four years.
RESPONSIBILITY REPORT - International Post Corporation
10   DSV Responsibility Report 2018   Employees and working environment

                                                                          Worldwide, DSV employs more
                                                                          than 45,000 employees,
                                                                          whose efforts and dedication
                                                                          to driving DSV forward enable
                                                                          us to deliver the best service
                                                                          to all our stakeholders.

     EMPLOYEES
     AND WORKING
     ENVIRONMENT
11   DSV Responsibility Report 2018                 Employees and working environment

DSV must be a good and safe place to work           In 2018, the total employee turnover-rate
to have thriving employees, who can con-            was 20.1%, compared to 17.4% the year
tribute to the continued development and            before. This is not a trend that we want to       Refugees employed through the programme
success of DSV.                                     see in the coming years.                          pose for the camera in the Bochum warehouse.

That means we are fully committed to pro-           Part of the increase is related to a high de-
viding positive, productive and supportive          mand for certain employee groups, such as
working environments in which we all feel           those employed in our shared service cen-
valued and safe.                                    tres and blue-collar workers in a number of
                                                    countries. They represent a significant part
Further, with a presence in more than 75 coun-      of the increase in employee turnover-rate.
tries our employees have a multitude of back-
grounds and different skills and experience. We     Even though employee turnover increased
believe that diversity benefits our business, as    in 2018, it remains at an acceptable level.
a broadly composed workforce provides a wide        At the same time, we retain employees with
range of competences that can foster new            a high seniority who act as an important
ideas, just as it allows DSV to anticipate future   factor in facilitating knowledge-sharing and
demographic changes in the workforce.               driving the development of DSV.

These commitments play an important part            We are fully aware that DSV needs to retain     DSV in Germany creates career
in maintain a working environment that con-         employees at all levels of seniority to main-   opportunities for refugees
tributes to retaining employees.                    tain knowledge and competencies and to
                                                    secure DSV’s development. To that end, we       In Germany, DSV’s Bochum site collaborated with the local job centre in running a
We focus on two main areas in our work to           have launched several initiatives both glob-    programme in which unemployed refugees are offered a chance to get back on their
ensure a good working environment:                  ally and locally aiming to both attract, de-    feet. The programme was a success for all parties involved in 2018.
                                                    velop and retain the best people.
•	Providing development opportunities                                                             DSV in Bochum often hires large numbers of new employees and decided to give
    for all employees;                              DSV provides development opportunities          refugees a chance to prove themselves in DSV.
                                                    for white and blue-collar employees alike.
•	Ensuring a safe working environment,             The development programmes are closely          The project is a collaboration between DSV and the local job centre in Bochum. They
   both physically and digitally.                   aligned with our business strategy and          developed an integration plan for new employees. At the core of the programme was
                                                    focus on customers, growth and operational      a six-week placement, enabling employees to get to grips with the role. DSV ap-
                                                    excellence. Ranging from leadership and         pointed an experienced employee to head up the programme, while the job centre
Providing opportunities                             sales training to literacy courses, the pro-    selected six suitable candidates for every period, funded their forklift truck licences
for all employees                                   grammes all serve to equip employees with       and provided interpreters to help with communication.
                                                    the skills they need in their roles.
We want our employees to be successful in                                                           Management in Bochum is happy with the new colleagues, who have all left very pos-
their jobs and to grow their careers and, as                                                        itive impressions by being reliable and punctual employees - important qualities for
a business, we aim to retain employees to                                                           employees in a busy warehouse.
minimise churn.
12   DSV Responsibility Report 2018                 Employees and working environment

TALENT MANAGEMENT                                   tential talents and where they work, identify-   We view that diversity as a genuine strength.      We are aware of the decline in gender ratio,
To build a steady pipeline of talented and          ing talent is expected to support employee                                                          and to counter this, we have among several
competent employees and create robust               retention.                                       We believe that a balanced workforce with          other initiatives, published a diversity policy
succession plans for key positions in the                                                            equal access to opportunities for all is crucial   in 2018 outlining our approach to diversity
different areas of business, our global HR          The developments in 2018 constituted the         to our success as a business and contributes       according to which we aim for a more bal-
Department focused on talent manage­ment            first step for even better talent management     to ensuring a good working environment.            anced workforce. In 2019 we will give fur-
throughout 2018.                                    in DSV. Following the good beginning, the                                                           ther attention to embedding the policy and
                                                    area will continue to be a focus area within     One diversity factor is gender, our gender         foster greater awareness to di­versity among
HR worked to implement a framework for              employee development in 2019.                    ratio being 38% female and 62% male in             our entities in DSV.
identifying people with potential for taking                                                         2018 against 39% and 61% in 2017.
on more responsibility and establishing an          NEW DIVERSITY POLICY                                                                                DSV’s diversity policy is publicly available at
improved setup for talent and succession            DSV’s global presence in more than 75 coun-      At lower management levels, 28% were               dsv.com
management. The process offered valuable            tries means we have a both multi­faceted and     female in 2018 and 72% were male,
insights. Besides providing knowledge of po-        diverse employee landscape.                      compared to 31% and 69% in 2017.

                                                                                                                         Reporting on section 99b of the
                                                                                                                         Danish Financial Statements Act
                                                                                  -
                                                                                                                         women and 67% men, one of whom is a U.S. citizen.
                                                                     34

                                                                                                                         A similar ratio is not seen at lower management levels of DSV
                                                                                                                         A/S, nor in other Danish legal DSV entities, but the Danish
                                                                                                                         operational companies, have targets and initiatives in place to
                                           AGE DISTRIBUTION                                                              increase this ratio – both on higher and lower management
                                           OF EMPLOYEES (%)                                                              levels.
                     45-54

                                                                                    30%                                  Further description is available in the Danish entities’ annual
                                                                                                                         report.

                                                                 4
     20.5%                                                35
                                                            -4

                                                                      29.8%
13     DSV Responsibility Report 2018         Employees and working environment

A safe working                                Our health and safety departments’ efforts      to occupational injuries in 2018. Similarly,     In 2019, we will continue our efforts to
                                              are aimed at avoiding occupational acci-        we have recorded a small increase in illness     secure the safety of all employees in DSV
environment                                   dents or injuries all together. Both at Group   on the year before.                              through even better processes for health
                                              and local levels, staff assess risk and make                                                     and safety being developed centrally and
A good working environment is a safe work-    sure procedures for safe conduct are            However, all the above ratios are still at       rolled out globally.
ing environment, and that is a DSV top        in place.                                       an satisfactory level, and we do have pru-
priority. We focus on minimising risks and                                                    dent safety procedures and a setup for
raising awareness about safety for our        We recorded a slight increase in numbers        review that constantly makes DSV an even
employees.                                    of occupational incidents and in absence due    safer place to work.

        RATE OF OCCUPATIONAL ACCIDENTS                                Group                        ABSENCE DUE TO ILLNESS                                             Group
        (per million working hours)                                   Salaried employees           (%)                                                                Salaried employees
                                                                      Hourly workers                                                                                  Hourly workers
     Working
       hours                                                                                        (%)

         16                                                                                         4,5

         14                                                                                         4,0

                                                                                                    3,5
         12
                                                                                                    3,0
         10
                                                                                                    2,5
          8
                                                                                                    2,0
          6
                                                                                                    1,5
          4
                                                                                                    1,0

          2                                                                                         0,5

          0                                                                                           0

                   2018            2017      2016          2015            2014                               2018            2017           2016          2015            2014
14   DSV Responsibility Report 2018   Employees and working environment

         SUBJECT                           OUR TARGETS FOR 2018                             OUR ACHIEVEMENTS IN 2018                              NEXT STEP AND TARGETS FOR 2019

     SAFE WORKING                      The rate of occupational accidents must be re-    The rate of occupational accidents and lost         The rate of occupational accidents must be kept stable
     ENVIRONMENT                       duced every year.                                 work days due to occupational injuries increased    and not exceed 5 per million working hours in total.
                                                                                         slightly compared to last year.
                                       Lost work days due to occupational injury must                                                        The rate of lost work days due to occupational in-
                                       be reduced every year.                                                                                juries must be kept stable and not exceed 100 per
                                                                                                                                             million working hours in total.

                                                                                                                                             To ensure even better procedures for our health
                                                                                                                                             and safety setup, we will develop and roll out an
                                                                                                                                             improved global approach in 2019.

     UN GUIDING                        We are committed to comply with the UN            We worked to further integrate expectations
     PRINCIPLES                        Guiding Principles on Business and Human          for responsible behaviour in line with the UN
                                       Rights and continue our due diligence process     Guiding Principles into our Code of Conduct and
                                       disclosing local processes and practices on hu-   supplier screening process.
                                       man rights to enable the remediation of
                                       any adverse human rights impacts we might         We will maintain focus on this area in the coming
                                       cause or to which we contribute.                  years, but as a fully integrated part of the DSV
                                                                                         Code of Conduct and supplier screening processes.
                                                                                         We consider the target achieved.

     DIVERSITY                                                                                                                               To maintain focus on a diverse workforce, we
     OPPORTUNITIES                                                                                                                           will continue the efforts to roll our our new di-
                                                                                                                                             versity policy.
15   DSV Responsibility Report 2018   Environment and climate

                                                                The transport sector is

     ENVIRONMENT
                                                                responsible for about a
                                                                quarter of total global carbon
                                                                dioxide emissions. For this

     AND CLIMATE
                                                                reason the sector indisputably
                                                                has huge responsibility
                                                                towards the environment.
16   DSV Responsibility Report 2018                Environment and climate

As a significant player in the sector, the thou-   Optimising supply chains to
sands of transports DSV facilitates every day
contribute to the use of fossil fuels. We ac-
                                                   reduce environmental impact                     Recycling 100% of vehicle tyres
knowledge our responsibility for contributing
                                                   We work with our customers to optimise
to a reduction in the use of fossil fuels in the                                                   DSV has taken a big step towards environmentally responsible
                                                   their supply chains. Our efforts include
value chain.                                                                                       processing of discarded tyres by acquiring ownership share of
                                                   consolidating freight, choosing the right
                                                                                                   Tire2Oil in Denmark.
                                                   mode of transport, and choosing the optimal
To live up to this responsibility, we enter
                                                   location for warehouses. Besides making
into dialogues with customers and suppliers                                                        DSV is now co-owner of a patented technology which has po-
                                                   good sense from a commercial perspective
about initiatives that can contribute to re-                                                       tential to positively impact a significant environmental problem.
                                                   for customers, all these aspects of supply
ducing our impact on the environment. We
                                                   chain optimisation may impact the environ­
are experiencing a gradual increase in the                                                         Through a thermal process, Tire2Oil transforms tyres into recy-
                                                   ment in a positive way and can reduce the
number of customers expressing an interest                                                         clable raw materials that can be sold on the world markets: oil,
                                                   use of fossil fuels.
in sustainable transports, and customers                                                           steel and carbon - without any harmful environmental impact.
aiming to reduce their carbon footprint.           PROVIDING CARBON EMISSION REPORTS
However, they still only amount to a small         TO CUSTOMERS                                    NO MORE POLLUTION
part of our customer base.                         DSV provides carbon emission reports to         In many countries, discarded tyres accumulate in nature areas
                                                   customers on their supply chains. The goal      and are used for incineration, but Tire2Oil’s process is eco-
With DSV’s asset-light business model we           is to provide complete transparency in          friendly.
have a limited direct sphere of influence be-      carbon emissions.
cause the transport is carried out by suppli-                                                      The process produces no polluting residual products and the
ers. That poses challenges throughout the          The carbon reports can form the basis for       factory does not emit smoke. The part of the gas which cannot
value chain. In addition, the transport and lo-    dialogues and collaboration with our cus-       be condensed into oil can be used as fuel to heat the machinery
gistics industry has been and continues to fo-     tomers to find solutions that can help re-      and surrounding premises. Thereby, the energy costs of operat-
cus on cost, and current options for more          duce the carbon footprint of the services       ing the facility are limited.
sustainable transports are likely to increase      we provide on their behalf.
the cost of a transport. Therefore, alterna-                                                       AIMING TO EXPAND TO THE REST OF EUROPE
tives to traditional transports must be            We experienced an increased demand for          In 2018, the factory was up and running with a single production
cost-efficient to gain a foothold.                 carbon emission reports for our customers       line. The next goal is to triple the number of production lines,
                                                   in 2018. In total, we provided 2,216 carbon     followed by setting up or selling production facilities in the rest
OUR EFFORTS TO INFLUENCE                           emissions reports for customers in 2018.        of Europe.
Despite the challenges, we continue our ef-        That is a 75% increase on 2017.
forts where we can influence the value chain                                                       COMPETITIVE PARAMETER
the most. We focus on three main areas:            In 2019, we will devote attention to refining   Tyre recycling may not be DSV’s core business, but it combines
                                                   our set-up for the preparation of carbon        a need and a wish for environmental accountability with com-
•	Collaborating with customers to                 emission reports to ensure a good, transpar-    mercial success.
   optimise supply chains;                         ent starting point for a dialogue about pro-
•	Working with suppliers and customers            viding environmentally optimised transports.
   to develop sustainable solutions;
•	Focusing on responsible use of resources.
17   DSV Responsibility Report 2018               Environment and climate

CONSOLIDATING FREIGHT                             We measure the energy efficiency for                 port modes emit different amounts of CO2.         In fact, air freight emits approximately 95
Improving capacity utilisation is a way we        transports, and our aim is to increase it each       We help our customers find the right routes       times more CO2e per shipment than sea
can help significantly reduce customer’s car-     year. We achieved that in 2018, increasing           and transport modes that suit their needs for     freight and road transports 8 times more.
bon footprint. Making sure that trailers and      energy efficiency for road transports by 1%.         time of delivery and budget, while still focus-
containers are loaded in the optimal way,         In addition, we improved energy efficiency           ing on choosing the most environ­mentally         So, by being flexible on time of delivery the
considering cargo weight, volume and den-         for air transports by 3% and 3% for sea              friendly solution. Generally, the faster the      customer may be able to choose an alterna-
sity, we can reduce carbon emissions and          transports.                                          transport and the heavier the goods, the          tive transport mode that emits less CO2,
improve energy efficiency because fewer                                                                higher the cost and carbon emissions.             and sometimes even reduces the cost.
transports go out without full loads. Besides     TRANSPORT MODE
being sustainable, it also reduces the overall    Choosing a transport mode and route also             Goods transported by air freight emit the
costs for customers.                              impacts the environment, as different trans-         highest amount of CO2e per tonne-km.

      Energy efficiency in average                                                                                                       AIR TRANSPORT
      CO2e (g/tonne-km)
                                                                                                                                         CO2e (g/
                                                                                                                                         tonne-km)

                                                                                                                                         700

                                                                                                                                                                                         666.9
      SEA TRANSPORT                                                   ROAD TRANSPORT
                                                                                                                                         650

                                                                                                                                                                              622.0
      CO2e (g/                                                        CO2e (g/

                                                                                                                                                          607.0

                                                                                                                                                                    601.9
      tonne-km)                                                       tonne-km)

                                                                                                                                                588.5
      150                                                             150                                                                600

      100                                                             100                                                                550
                                                                                                    73.9
                                                                                         72.3

                                                                                                               72.0
                                                                                 71.5

                                                                                                                          70.9
       50                                                              50                                                                 50
                                                      7.9
                                  6.9

                                            6.6
                       6.3
             6.1

        0                                                                   0                                                              0

            2018      2017      2016       2015      2014                       2018    2017       2016       2015       2014                  2018      2017     2016       2015       2014
18   DSV Responsibility Report 2018                  Environment and climate

Developing sustainable                               the lowest total transportation costs, and
                                                     thereby the lowest carbon emissions. Our
solutions                                            Group Property Department, consisting of        Transparency in carbon emissions
                                                     specialists within the area, sets standards
Reducing our impact on the environment               and requirements for buildings Group-wide.      We measure our total carbon footprint and energy efficiency for each transport
requires changes, and changes require new                                                            mode for the DSV Group of companies.
ideas. We engage with our suppliers and              New DSV locations are built according to
customers to make use of new ideas and in-           some of the most demanding national and         Because we use suppliers to carry out the transports booked by our customers,
novative solutions that can help improve             international building standards, and we in-    most of the chart below contains carbon emissions from transports performed by
carbon efficiency.                                   vest in materials that can ensure energy ef-    our suppliers. Our emissions make up approximately 2% of total emissions.
                                                     ficiency. Also, new sites are built with en-
It is equally important that DSV’s own fleet         ergy efficient solutions like automated         The majority of greenhouse gas emissions from our operations is attributable to air
emits as little CO2 as possible. As an example,      lighting and low energy light bulbs and wa-     and road transports, constituting 42% and 46% respectively, while 11% of our
a team of engineers in South Africa reduced          ter saving fixtures. Lastly, new buildings      carbon emissions came from sea freight and 1%. from DSV’s buildings.
the carbon footprint of the long-haul trucks         have good working conditions for employ-
which travel longer distances by more than           ees, and we e.g. prioritise natural lighting.
13% through fuel savings by implementing
                                                                                                                  1%
aerodynamic drag reducers, which are thin            In 2019, we will continue to focus on build-
plastic items mounted on the trucks’ top or          ing sustainably.                                                                                                    11%
side to reduce wind resistance. This example
shows that reducing our environmental im-
pact is not always a question of inventing new       Responsible use
technologies, but it is also about using ex­isting
solutions to optimise wherever possible.
                                                     of resources

ENERGY EFFICIENT BUILDINGS                           DSV’s more than 1,000 sites around the world
Our buildings are a part of our acitivties on        vary from small office spaces to large ware-
                                                                                                                                      Breakdown
which we can directly influence carbon               houses of more than 100,000 m2. Each of
                                                                                                                                  of total emissions
emissions. We continuously renovate, con-            them uses paper, wooden pallets, plastic and
solidate and build new warehouses to make            cardboards, which we make an effort to recy-
sure that our buildings live up to the energy        cle wherever possible in our efforts to mini-
efficiency requirements we set for our-              mise DSV’s impact on the environment.
selves. In 2018, DSV’s buildings emitted
55,000 tonnes of CO2 compared to 51,000              RECYCLING MATERIALS AND SORTING WASTE
tonnes in 2017. This increase in emissions           Across DSV, we are working to increase the        46%                                                                       42%
is caused by DSV’s growth, as we built and           number of sites with a systemic approach
expanded in 2018.                                    to garbage collection and recycling.

When planning a building project, we calcu-          The recycling initiatives vary across coun-          ■ Sea transport           ■ Air transport   ■ Road transport    ■ Buildings

late which possible locations will give rise to      tries and types of location.
19   DSV Responsibility Report 2018            Environment and climate

Many DSV sites recycle spare cardboard,        size of the locations. Due to the attention      offices. The system helps minimise the envi-         Our calculations from a handful of European
paper and wooden pallets from operations       devoted to recycling, we reached 79% in          ronmental impact from printing and keep it           offices showed impressive savings: Close to
and activities, and other sites use only re­   2018, which is a level we aim to further         cost-efficient. FollowMe sends printed doc-          4 tonnes of paper were saved, a reduction in
cyclable storage boxes in the warehouses.      increase in 2019 to 80%.                         uments to a server, where they stay until            electricity consumption by around 42,000
                                                                                                the employee releases the documents at               KWh, reduced carbon emission by around
For 2018, the goal was to recycle materials    REDUCING PAPER CONSUMPTION                       a DSV printer.                                       11,000 CO2 (kg) and significant cost
in 78% of our sites measured by square         In 2018, DSV made it mandatory to use the                                                             re­ductions.
metre, taking into account the difference in   system “FollowMe” for printing in all DSV

          SUBJECT                                   OUR TARGETS FOR 2018                           OUR ACHIEVEMENTS IN 2018                              NEXT STEP AND TARGETS FOR 2019

     WORKING WITH SUPPLIERS                     We wish to increase collaboration with inter-   We expanded our collaboration with customers,        We will continue to increase our collaboration
     TO DEVELOP SUSTAINABLE                     ested strategic customers and suppliers in      e.g. in relation to route optimisation.              with interested strategic customers and suppli-
     SOULTIONS                                  order to find transport solutions focusing on                                                        ers in order to find transport solutions focusing
                                                the reduction of carbon emissions and general   We continued collaboration with suppliers in or-     on the reduction of carbon emissions and gen-
                                                environmental impacts.                          der to develop sustainable business models and       eral environmental impacts.
                                                                                                transport solutions.

     TRANSPARENCY IN                            We will report on climate parameters such as    The reporting and commentaries on climate pa-        We will report on climate parameters such as
     CARBON EMISSIONS                           group carbon emissions, energy efficiency       rameters were incorporated into the text of this     Group carbon emissions, energy efficiency from
                                                from transport modes and energy and water       chapter and in non-financial statements.             transport modes and energy and water con-
                                                consumption from buildings.                                                                          sumption from buildings.
                                                                                                The data reported are based on a structured data
                                                                                                collection and verification process carried out at   To increase awareness of and transparency
                                                                                                year-end 2018.                                       about CO2 emissions among our customers,
                                                                                                                                                     we will work on improving our CO2 emissions
                                                                                                                                                     platform.

                                                                                                                                                     We will implement an improved setup for re-
                                                                                                                                                     sponsibility reporting internally and potentially
                                                                                                                                                     externally to ensure even better transparency in
                                                                                                                                                     our responsibility data.

     RESPONSIBLE USE                            We will in 2018 increase the share of DSV       In total, 79% of all DSV square metres imple-        We will work on increasing the share of DSV
     OF RESOURCES                               locations that sorts waste for recycling        mented recycling procedures.                         locations that sort waste for recycling,
                                                measured per square meter to 78%.                                                                    measured per square meter to 80% in 2019.
20   DSV Responsibility Report 2018   Suppliers

                                                  DSV performs services for
                                                  customers worldwide, and
                                                  because of our asset-light
                                                  business model, we rely on
                                                  a large supplier network
                                                  consisting of more than
                                                  200,000 suppliers.

     SUPPLIERS
21   DSV Responsibility Report 2018            Suppliers

When our suppliers carry out services on       and local levels. In 2018, we started devel-
our behalf, they become DSV ambassadors,       oping more customised sanction and sup-
because we are part of the same value          plier screening processes matching the dif-
chain. Therefore, we expect every supplier     ferent types of suppliers. An effort that will
to share and live up to the same ethical       continue during 2019.
standards that we hold ourselves to.
                                               SUPPLIER AUDITS
However, a large and widespread network        We have processes for review of suppliers
of suppliers means that DSV faces risks be-    in place across our organisation. Depending
yond our internal control from time to time.   on the country, the DSV division and the
To minimise these risks, we continously        existing legislation, we measure supplier
work to secure an even better standard         compliance with our standards. We e.g
for supplier conduct that rests on DSV’s       use a quality management framework,
fun­damental principles.                       such as the ISO standards.

We believe that by working ethically and       On average, 31% of our locations have an
expecting our suppliers to do the same, we     ISO certification, compared to 25% in 2017.
can help ensure an ethical business conduct
in the supply chain.                           Having a quality management framework
                                               in place helps us set requirements for
LIVING UP TO DSV STANDARDS                     suppliers.
DSV’s ethical standards and required be-
haviour are defined in the DSV Code of         Often, this includes a dedicated quality
Conduct. In our Supplier Code of Conduct,      person that conducts supplier audits for
these standards and requirements are spec-     all transports whether by air, sea or road.
ified and targeted for the suppliers to make
it clear what we consider appropriate busi-    IMPROVING STANDARDS FOR
ness conduct by suppliers when they per-       ETHICAL CONDUCT
form services on behalf of DSV. As a mini-     We believe that the processes we have in
mum, suppliers must live up to the DSV         place across DSV play an important part in
Supplier Code of Conduct.                      maintaining a standard for ethical business
                                               conduct within DSV and in the transport
For suppliers carrying out road freight ser-   and logistics sector in general.
vices, we distribute a Road Haulier Code of
Conduct to hauliers. In addition to defining   At the same time, our supplier network is
the ethical code, the Road Haulier Code of     large, and the many different types of sup-
Conduct lists requirements for truck safety,   pliers pose a challenge for ensuring align-
safe conduct on the road, working rights for   ment across the supply chain.
drivers etc. Further, we have processes in
place for supplier selections on both global
22   DSV Responsibility Report 2018          Suppliers

It is an area in which we want to improve.
Going forward, we will work to improve
our global screening processes, which will
be prepared centrally and anchored at the
local DSV entities to make sure the pro-
cesses are followed throughout our organi-
sation and supplier network. In this way,
we aim to put additional emphasis on the
importance of a responsible and ethically
business conduct from our suppliers.

         SUBJECT                                  OUR TARGETS FOR 2018                          OUR ACHIEVEMENTS IN 2018                                NEXT STEP AND TARGETS FOR 2019

     SUPPLIER CODE                            The DSV Supplier Code of Conduct must be       95% of our entities have communicated the Sup-         We aim to further increase the number of suppli-
     OF CONDUCT                               communicated to suppliers and subcontractors   plier Code of Conduct to relevant suppliers.           ers to whom we communicate the DSV Supplier
                                              with a yearly spend above 25 kEUR.                                                                    Code of Conduct.

     SUPPLIER SCREENING                       We will continue improvement of our supplier   We improved our global screening processes with        We will continue improving of our supplier
     PROCESS                                  screening process through centralised and      a new set-up for sanction screenings of all cus-       screening process through centralised and
                                              decentralised procedures.                      tomers and suppliers. Furthermore, improve-            decentralised procedures.
                                                                                             ments are made in terms of general screening
                                                                                             procedures when we onboard new suppliers’
                                                                                             master data.

                                                                                             We mapped our onboarding processes according
                                                                                             to the main areas. of the process. The findings will
                                                                                             be used for improving in the onboarding process
                                                                                             in each of these main areas.
23   DSV Responsibility Report 2018   Community engagement

                                                                                                                                                 We make it a priority to

                                                                                         COMMUNITY
                                                                                                                                                 engage in and support the
                                                                                                                                                 communities where we
                                                                                                                                                 operate, using our expertise
                                                                                                                                                 to help people in need.

                                                                                         ENGAGEMENT
                                                                                                                                                 We believe that long-term
                                                                                                                                                 relations and transparent
                                                                                                                                                 partnerships are paramount
                                                                                                                                                 to achieving global, lasting
                                                                                                                                                 improvement.
Picture taken by employee Brian Hennesser on a Red Cross project visit in Malawi.
24   DSV Responsibility Report 2018              Community engagement

Our efforts are primarily centered around        and give them a chance to learn about do-
our human aid partnership with the Red           mestic hygiene and how to grow crops that
Cross | Red Crescent and supported by a          will last through droughts or floods.
number of local activities.
                                                 BETTER LIVING CONDITIONS FOR
A PARTNERSHIP THAT MATTERS                       REFUGEES IN BANGLADESH
2018 was the second year with Red Cross          Cox’s Bazar in Bangladesh houses the
as DSV’s international human aid partner.        world’s largest refugee camp. Close to one
Through the partnership, DSV provides sup-       million refugees live there in makeshift and
port for transport, sponsors 2,000 m2            spontaneous settlements in crowded condi-
warehousing space for disaster prepared-         tions unprotected from dangers, cyclones
ness, and we support Red Cross’ efforts in       and monsoons. The vast majority of the
Malawi and Cox’s Bazar, Bangladesh.              refugees have fled to Cox’s Bazar since
                                                 August 2017, and they have insufficient
DSV’s support to and collaboration with the      food, water, sanitation, clothing and basic
Red Cross enables the organisation to work       household supplies.
towards reducing poverty and hunger, fighting
climate change and improving the quality of      In 2018, DSV started supporting the Red
the education for children and youth in de-      Cross’ work in Cox’s Bazar. The Red Cross
veloping countries.                              has been able to support thousands of fami-
                                                 lies with safe drinking water, and tens of
CAPACITY BUILDING IN MALAWI                      thousands of homes have received hygiene
In Malawi, Red Cross works to build resilience   kits to help promote sanitation and hygiene.
in the three poorest provinces in the south-
ern part of the country. DSV’s support helped
enable Red Cross make a significant contri-
bution to reducing hunger and malnutrition:
                                                         Red Cross are experts in providing disaster
More than 14,000 school children receive a            relief – but they cannot do it without support
daily meal and more than 23,000 children              and donations. So DSV made a donation to In-
under five years of age receive a monthly              donesian Red Cross to help the victims of the
health check.                                           dis­astrous tsunami and earthquake that oc-

                                                                                                         Photo taken by Danish Red Cross
                                                             curred in Indonesia in September 2018.
                                                        In the aftermath of the tsunami, the survi-
DSV’s support to the people of Southern                 vors desperately needed help for essentials
Malawi also helps build capacity by educating           like clean water, food, shelter and clothing.
the children of the area and teaching hygiene            DSV in Indonesia reached out to their local
and agricultural skills to women in the area.            Red Cross to ask how DSV could best pro-
                                                       vide aid. That resulted in a financial donation
Close to 1,000 children receive a primary
                                                          to emergency aid from DSV to Indonesian
school education, and more than 11,500                Red Cross. The donation was used to distrib-
children attend a Red Cross kindergarten. The             ute canned food, blankets, tents and solar
kindergartens free up time for the mothers                lamps to the people who lost their homes.
25   DSV Responsibility Report 2018                        Community engagement

LOCAL COMMUNITY ENGAGEMENT                                 to supporting local sports clubs or teaching     For a number of years, DSV has made annual donations to the Child’s Cancer Fund.
Community engagement is also a local pri-                  safe conduct on the roads.                       The support helps children with cancer and their families get by in difficult times during
                                                                                                            and following the treatment for cancer. For the 2018 donation, DSV’s CEO Jens Bjørn
ority for DSV. Around the world, we interact                                                                Andersen presented the donation to the patron of the Foundation, Danish actress
with the communities in which we operate                   Examples include that DSV in Spain sponsors      Ghita Nørby, and CEO of the Child’s Cancer Foundation, Marianne Benzon Nielsen.
to make a positive difference.                             the transportation of wigs for cancer patients
                                                           who have lost their hair, DSV in Denmark and
The local engagements take many different                  Norway engage in teaching road safety to
shapes, from sponsoring the transportation                 school children, and DSV Germany runs a pro­
of different items that serve a good cause                 ject aiming to help refugees into employment.

Children in the Peruvian Amazon region waiting for presents that DSV helped transport
to the isolated area in December 2018. The children live in a community that is difficult
to access, so DSV decided to help transport Christmas presents for the children and other
seasonal goods to Bagua and Santa María de Nieva in Peru for the fourth consecutive year.
26   DSV Responsibility Report 2018                    Non-financial highlights of the DSV Group

NON-FINANCIAL HIGHLIGHTS
OF THE DSV GROUP
Environmental data

                                              2018         2017         2016        2015           2014                                                 2018    2017    2016    2015    2014

Transport emissions (‘000 tonnes)                                                                          Euro engine standards (%)
- Estimates on Suppliers
                                                                                                           Proportion of trucks of DSV Road              0.7     0.7     1.2     1.6     2.5
CO2e emissions – Total transport              6,344        6,278       5,921       3,687       3,388       satisfying Euro 2 standard or older
CO2e emissions – Sea transport                  715          738         757         516         566       (own and suppliers’ trucks)
CO2e emissions – Air transport                2,660        2,593       2,425       1,270       1,278       Proportion of trucks of DSV Road             19.3    20.8    24.1    29.8    33.7
                                                                                                           satisfying Euro 3 or 4 standards
CO2e emissions – Road transport*              2,969        2,947       2,739       1,901       1,544       (own and suppliers’ trucks)
Direct emissions (‘000 tonnes)                                                                             Proportion of trucks of DSV Road             80.0    78.5    74.7    68.6    63.8
                                                                                                           satisfying Euro 5 or 6 standards
CO2 emissions – Buildings**                      55           51          63          48             45    (own and suppliers’ trucks)

Water (‘000 m3)                                                                                            Reports on carbon footprint
                                                                                                           data to customers
Total water consumption – Buildings             689          666         534         332            260
                                                                                                           Total number of reports on carbon            2,216   1,265   1,141   1,243   1,214
Energy efficiency in average (gram                                                                         footprint data to customers
CO2e per ton transported one km)
                                                                                                           Reports on carbon footprint
CO2e (g/ton-km) – Sea transport                  6.1          6.3         6.9         6.6            7.9   data to customers (%)
CO2e (g/ton-km) – Air transport                588.5        607.0       601.9       622.0          666.9   Proportion of total carbon dioxide            8.6     7.2     4.9     7.2       -
CO2e (g/ton-km) – Road transport                71.5         72.3        73.9        72.0           70.9   equivalent emissions reported to customers

                                                                                                           Recycling of paper,
                                                                                                           cardboard and plastic (%)
                                                                                                           Proportion of locations recycling paper,       79      74      70      88      85
                                                                                                           cardboard and/or plastic from offices,
                                                                                                           terminals and warehouses

* Our own fleet make up 0-1% of total road emissions
** Emissions are emitted only by DSV buildings
27   DSV Responsibility Report 2018            Non-financial highlights of the DSV Group

Social data

                                       2018        2017        2016         2015           2014                                                  2018    2017    2016    2015    2014

Employees (full-time employees)                                                                    Employee turnover (%)
Total                                 47,394      45,636      44,779      22,783      22,874       Total                                         20.1    17.4    25.5    17.6    16.6
Salaried employees                    23,088      22,730      23,436      14,540      14,216       Salaried employees                            20.7    17.4    26.0    16.8    16.6
Hourly workers                        24,306      22,906      21,343       8,243       8,658       Hourly workers                                19.4    17.3    24.9    19.0    16.7

Employee gender ratio (%)                                                                          Absence due to illness (%)
Proportion of female employees           38           39          38          38             38    Total                                          2.4     2.0     2.1     3.3     3.3
Proportion of male employees             62           61          62          62             62    Salaried employees                             2.7     2.0     2.0     2.9     2.8
                                                                                                   Hourly workers                                 2.1     2.0     2.2     4.0     4.1
Management gender ratio (%)
Proportion of female managers             28           31          31          26             -    Rate of occupational accidents
                                                                                                   (per million working hours)
Proportion of male managers               72           69          69          74             -
                                                                                                   Total                                           4.6     4.2     4.6     5.9     5.9
Age distribution of employees (%)                                                                  Salaried employees                              0.5     0.8     1.3     1.2     1.4
Employees 54                           11.7         10.9        11.4        12.8           11.4
                                                                                                   Salaried employees                             23.2    20.8     9.7    26.2    17.6
Employee seniority (%)                                                                             Hourly workers                                164.5   142.5   133.5   263.7   275.0
Seniority 25 years                      4.9          5.8         5.8         7.1            6.3   Distribution of DSV’s Supplier
                                                                                                   Code of Conduct (%)
                                                                                                   Proportion of companies having distributed      95      93      79      80        -
                                                                                                   DSV’s Supplier Code of Conduct to suppliers
                                                                                                   delivering goods and services for more than
                                                                                                   EUR 25,000 each year
28   DSV Responsibility Report 2018            Non-financial highlights of the DSV Group

ACCOUNTING POLICIES FOR                                                                         Social data                                    RATE OF ABSENCE
                                                                                                                                               Number of days of absence due to illness
NON-FINANCIAL HIGHLIGHTS                                                                                                                       relative to the number of working days
                                                                                                                                               during the year adjusted for maternity/pa-
                                                                                                GENERAL DETAILS                                ternity leave, agreed holidays and national
                                                                                                The figures and charts of the 2018 Respon-     public holidays. Absence due to illness is
                                                                                                sibility Report have been prepared in accor-   measured on the basis of wage/salary
Environmental data                             ENERGY EFFICIENCY                                dance with the policies applied last year      system records.
                                               Average emissions from shipment relative to
                                               freight volume and transportation distance.      EMPLOYEES                                      RATE OF OCCUPATIONAL ACCIDENTS
                                                                                                Average number of full-time employees of       Number of reported occupational accidents
GENERAL DETAILS                                EURO ENGINE STANDARDS                            the year.                                      resulting in more than one day of absence
The figures and charts of the 2018 Respon-     Proportion of different Euro engine stan-                                                       per million working hours scheduled for
sibility Report have been prepared in accor-   dards of trucks operating for DSV Road.          EMPLOYEE GENDER RATIO                          the year.
dance with the policies applied last year.     Data collected in Europe among more than         Number of female and male employees
                                               15,000 trucks owned primarily by suppliers.      relative to total employees at year-end.       RATE OF LOST WORK DAYS DUE
EMISSIONS                                                                                                                                      TO OCCUPATIONAL INJURY
Carbon dioxide equivalent emissions from       REPORTS ON CARBON FOOTPRINT                      MANAGEMENT GENDER RATIO                        Number of reported days of absence from
transport activities are calculated based on   DATA TO CUSTOMERS                                Number of female and male managers             occupational accidents resulting in more
average fuel consumption ratios from sup-      Total number of reports on carbon footprint      relative to total managerial employees at      than one day of absence per million working
pliers and trucks owned by DSV, combined       data delivered to customers.                     year-end.                                      hours scheduled for the year.
with data on freight volumes and routing
from DSV’s own traffic management sys-         PROPORTION ON CARBON FOOTPRINT                   AGE DISTRIBUTION OF EMPLOYEES                  QUALITY MANAGEMENT STANDARDS
tems. The calculations include CO2 emis-       DATA TO CUSTOMERS                                Number of employees by age group relative      Percentage of DSV locations certified
sions from air and sea carriers and road       Proportion of total transport emissions re-      to total employees at year-end.                according to ISO 14001, ISO 9001 or
hauliers.                                      ported to customers in carbon footprint re-                                                     ISO 45001 (OHSAS 18001). Number of
                                               porting.                                         EMPLOYEE SENIORITY                             locations certified relative to the total
Carbon emissions from buildings are cal­                                                        Number of employees by seniority level         number of locations of the Group.
culated based on direct consumption of         RECYCLING OF PAPER,                              relative to total employees at year-end.
electricity, gas, oil and water from DSV’s     CARDBOARD AND PLASTIC                                                                           DISTRIBUTION OF DSV’S SUPPLIER
location.                                      Total square metres at DSV locations having      EMPLOYEE TURNOVER                              CODE OF CONDUCT
                                               initiated recycling schemes for paper, card-     Number of employees leaving DSV Group          Number of companies having distributed
WATER                                          board and/or plastic, relative to total number   during the year relative to the average        DSV’s Supplier Code of Conduct to suppliers
Total consumption of water at DSV’s lo­        of square metres locations of DSV. A few en-     number of employees calculated on the ba-      relative to total number of companies of
cations.                                       tities have leased premises without waste        sis of monthly surveys of the actual number    the Group.
                                               management schemes operated by DSV.              of employees at the end of the month.
                                               Those locations are not included in the data.
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