Deutsche Post DHL is Leading the Way towards Sustainable Transports

In 2008 Deutsche Post DHL set a goal to lower their CO₂ emissions by 30% before 2020. DHL was the first in the logistics and transportations industry to set a concrete goal and is now leading the way towards a real change in the industry. Switching to alternative fuels such as BioDME, is one part of the environmental program GoGreen, rolled out globally. Let us have a look at the progress and the challenges within DHL today as they are closing in on their ambitious goal.

The focus in the GoGreen program is on replacement of vehicles, alternative technologies and fuels, driver awareness and subcontractor management. The program addresses the whole fleet of transports by road, air and ship as well as internal and external activities and logistics.

Focus areas of the DHL GoGreen program, illustration

Illustration: Focus areas of the DHL GoGreen Program.

A Swedish concept gone global
The concept of GoGreen was originally developed within DHL Sweden where the customers started asking for environmental transports already 10 years ago. Other European countries were far behind in their environmental thinking. One of the driving forces behind environmental development is Mr Ulf Hammarberg at DHL Freight Sweden.

– With the launch of the GoGreen program we got the full support of the DHL Group in the environmental work we are doing, says Mr Ulf Hammarberg while he outlines the progress made over the past years. In every country we strive to use the new fuels that appear in the local market. That is the future – the fleet will run on many different fuels, some mixed into conventional diesel and used in standard engines, others used in new vehicles with engines of the latest alternative technology.

Alternative fuels – BioDME, tall oil and rapeseed
In Sweden BioDME is the most recent new fuel, produced at Chemrecs development plant in Piteå. Last year Preem launched its renewable tall oil summer ACP Evolution Diesel, described in ChemrecNews 1/2010. 12 DHL trucks run on this diesel during the summer season.

Another hot product is Perstorps RME, rapeseed methyl ester, which is already added up to 5% into Swedish diesel as a standard. But diesel engines can run on 100% RME, as long as the engine is serviced frequently. DHL is now starting to use 100% RME in some of its trucks.

Recently a LNG liquid methane gas tank station, the first in the world, was opened in Gothenburg, near DHLs head office. A network of tank stations will be ready in 2011 and 3-5 trucks will test this new fuel during 2011. Volvo has developed an engine; MD13, that can run on both diesel and methane gas.

Changing the attitudes of the subcontractors
– We are working on making the subcontractors fill up with these alternative diesel fuels, says Mr Ulf Hammarberg. It is a matter of changing attitudes and unfortunately not every subcontractor is ready to do this. Many are still focussed entirely on fast deliveries rather than environmental issues.

Eighty percent of the DHL group’s total carbon emission is counted for by subcontractors. No matter how much DHL’s own fleet and employees change – to make a real difference the subcontractors are key.

To raise the level of environmental awareness and improve the driving techniques for subcontractors and employees, DHL constantly runs eco-driver training and awareness campaigns. With 500 000 employees world wide and 2500 subcontractors drivers driving technique is an important aspect to consider.

Sharing responsibility through Green tons

Mr Ulf Hammarberg at DHL Freight Sweden showing the Green Ton diploma

“Sharing responsibility” is a recurrent expression within the GoGreen program. The sharing points at both subcontractors and customers. Since 2002 DHL is offering its customers to buy Green tons – deliveries that cost a little extra, carried out by vehicles that run on renewable fuels.

– Some customers are willing to pay extra for green deliveries, says Mr Hammarberg. They use the Green ton certificates that they receive from DHL in their internal environmental programs to reach their own goals. The certificates state the amount of green ton kilometres bought. For us this is a concrete and useful tool to encourage the development towards environmental thinking amongst both customers and subcontractors. But not everyone is prepared to pay. The interest is growing slowly.

Emission report problems
In order to create realistic reports for the customers’ Green ton certificates, as well as to follow up the progress within the Go Green program, the emissions from the subcontractor must be tracked in detail. Data about the kind of fuel used, weight of the load, kilometres driven, amount of fuel used etc must be gathered. DHL Freight Sweden is now, together with Volvo, testing a new telematic system for the subcontractors, that automatically transmits information to a server on DHL through a wireless connection. The device is connected to the engine system and pulls out the needed data.

Lack of standards in the industry
– The lack of standards and best practices for carbon measurement in our industry makes it difficult to gather and compare CO₂ data. This is a big challenge for us in the GoGreen program, says Mr Hammarberg, especially with regard to our subcontractors’ efficiency data. In the telematics project we are aiming at creating standards for carbon accounting the industry, but we are still facing many problems.

– The devices must be developed further according to our needs of data, the subcontractors must get motivated to use the device and we must learn how to use the data in a way that shows real fuel consumption and emissions. It is tricky and costly. But we are learning and progressing, and that is the most important.

Until standards and systems are in place subcontractors make manual reports and DHL makes audits to ensure that the reports are filled out correctly.

Influencing as a dialog partner
DHL also has a role to help both customers and subcontractors to think in a sustainable way through dialog and by giving suggestions of changes in for example the logistics or the way the trucks are loaded. Small changes can make a big difference.

– Some of the subcontractors are very hesitant to all these changes, says Mr Hammarberg. But there are others that are eager to change and make their transportation service more environmentally friendly. Those contractors get a chance to try the new trucks with the latest fuel engines like DME and LMG. That is also a way for them to strengthen their image in the market.

Developing the vehicles
Other areas that are under development to improve environmental performance of the vehicles are for example the aerodynamics, tires and engine friction. New vehicles have a double decker system, with a roll down shelf, which makes it possible to use the space in a much more efficient way than before.

DHL Freight, identified areas of improvement of the trucks

Transparency about the progress
On DHLs global website anyone can get in informed about the progress made within the GoGreen program. External partners make regular audits within DHL.

– When improving environmental performance in the company the overall costs are usually also affected in a positive way, concludes Mr Hammarberg. At first it may seem like a burden but in the long run it is always a winning concept. Not only economically but also since when one does not keep up with the environmental progress customers will go elsewhere for their products.

GoGreen results, total CO2 emissions (Scope 1+2 and Scope 3) 2007-2009

Illustration: GoGreen results, total CO₂ emissions (Scope 1+2 and Scope 3) 2007-2009

Source: http://www.dp-dhl.com/en/responsibility-online_report_2010/environment/providing_transparency/gogreen_results.html

Alternative vehicles

The fleet of vehicles at Deutsche Post DHL is undergoing a big change.

With a ground fleet of more than 120,000 vans, trucks and trailers the effect on the CO₂ footprints through changes in the fleet will be significant. Around the world, approximately 2,500 vehicles with hybrid drives, electric motors and alternative fuels are already in use. DHL is testing and operating more than 1,000 non-conventional vehicles in their own fleet. They are powered with fossil fuels such as natural gas, reducing particulate matter, or with alternative technologies and renewable fuels, reducing CO₂.

BioDME truck

The BioDME truck, within the BioDME project field test, is the latest addition in the Swedish fleet.

DHL Sweden is the first to test the Volvo MDE engine, that runs on both diesel and methane gas. In Germany and the UK a pilot of hybrid trucks is in use. On top of this hundreds of trucks and vans run on natural gas, biogas and ethanol.

Mercedes-Benz Vito E-CELL van based on fuel cell technology

Fuel cell driven van

In Germany 15 battery-electric driven Mercedes-Benz Vito E-CELL vans based on fuel cell technology were added as a field test at the end of 2010.

Freight Rail has become a very interesting alternative for long distance transports

Freight rail for long distances
During the past three years Freight Rail has become a very interesting alternative to road transports for long distance transports. The ready loaded trailers are then taken to an inter-modal combi station where they are lifted up on a rail carrier. At the railway station closest to the destination a truck picks up the trailer and transports it to the final destination. When applied in Sweden where most lines are electrified and power generation is mainly by hydro and nuclear freight rail reduces emissions by 95%.

– The railway system needs to develop further for Freight Rail to become as big as it can be, says Mr Hammarberg. There are not enough combi terminals. We are lobbying for these needs.