Corporate Responsibility Report 2020-21
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Corporate Responsibility Report 2020-21
page 2 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
SUSTAINABILITY
AWARDS AND
ESG INDICES
92nd
AA
We are independently rated as a
leading responsible business by
the most prestigious international percentile
DJSI
benchmarks for sustainability. Our
performance is highlighted here. FTSE4Good ranking.
Constituent of both FTSE4Good
UK and Europe.
global
MSCI – Rated as AA (leader).
leader
B
Included in both World and
Europe Indices for the
transportation industry.
EcoVadis
silver
CDP rating,
ahead of industry average of C. status
Awarded to GLS.
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
CONTENTS 4 Introduction
WHAT TO LOOK FOR IN THIS REPORT
6 Who we are
7 Governance framework
8 Defining material issues
9 Corporate responsibility strategy
10 Our customers
11 Providing a trusted service
12 Our role during COVID-19
13 Delivering innovation
Introduction Our customers Our people 14 Supporting small and
4 11 19
medium-sized businesses
15 The importance of letters
16 Better serving our customers
17 Protecting our customers
18 Our people
Our purpose, Providing a trusted Our people, 19 O
ur strategy
ambition and service, delivering our priority 20 Engaging our people
22 C
reating a safe and healthy
approach flexibility working environment
23 Supporting health and wellbeing
25 Rewarding people fairly
26 Working together
27 Valuing diversity and inclusion
30 Developing our people
32 Investing in the future
33 Our environment
34 Our environmental strategies
35 Our carbon footprint
37 Our clean air ambitions
39 Responsible consumption
41 Managing our
environmental impacts
43 Our communities
Our Our Compliance 44 Our social and economic impact
environment communities and ethics 45 Our charity partnership with
Action for Children
33 43 51
46 Leveraging our national scale
47 Using our local presence
48 Unlocking potential
through education
49 Support for our postal community
Delivering A trusted presence Committed 50 Compliance and ethics
a cleaner in every community to operating 51 Our business standards
53 Responsible procurement
future with integrity 55 Combatting modern slavery and
100%
human trafficking
56 Statements
57 Assurance statement
58 KPIs
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
INTRODUCTION
Rita, thank you for joining us again to provide The health and safety of our people and our As a business, we have spent time understanding
your insights on CR matters across the Group customers has been a top priority throughout the risks and opportunities associated with
from the last year. Firstly, what are your key the pandemic. Could you talk through some climate change, and I am pleased that we were
areas of reflection as you look back over the of the changes the business made to prioritise able to further develop our disclosure this year
past 12 months? the wellbeing of colleagues and customers? in line with the recommendations of the Task
Clearly, the past 12 months have been dominated Since the start of the pandemic, every decision Force on Climate-related Financial Disclosures
by the COVID-19 pandemic and our response to the business made prioritised the health of our (TCFD) through scenario analysis modelling that
the challenges it brought, not only to our colleagues people and customers. New procedures were was undertaken.
and the business, but to our customers, communities, put in place to ensure the business was able to There was a continued focus from the Committee
and society as a whole. I believe our responsibility adapt quickly and in line with emerging guidance as work continued to develop the environmental
to all those groups has magnified our purpose as from Governments and health authorities. roadmaps and ambitions for both Royal Mail
an organisation. This included, for example, requiring social and GLS. We made great progress in GLS with
Above everything else, what comes to mind distancing and masks in all sites, and moving sustainability forming one of the focus areas
when I think about the past 12 months was the from two people in a van to one. of its Accelerate GLS strategy, and the roll out
dedication of our workforce. When needed most, Of course, supporting the mental health and of carbon-neutral shipping in the Netherlands.
they stepped up to the mark and continued to wellbeing of our colleagues during the year was Royal Mail already has the lowest CO2e per
serve their customers and their communities. of heightened importance. We saw an increase in parcel of any major UK delivery company, but
Rita Griffin As key workers, they were out delivering the number of calls to the Royal Mail First Class I am pleased that the Company’s ambition does
Non-Executive Director continuously to every household right from Support employee assistance helpline over the not stop there. Royal Mail is continuing to push
the start of the pandemic. year, and I was particularly pleased to see the forward with trialling and deploying new, more
2020-21 was an unprecedented year. environmentally friendly vans and trucks and is
And of course, both Royal Mail and GLS both new mobile app, introduced providing support
One where the Company’s value to society to employees 24 hours a day, seven days a week. working with other fleet operators as part of the
became evident as our colleagues were played pivotal roles in supporting the broader
This included a number of tools to support our UK Electric Fleet Coalition to increase the pace
societal response to COVID-19. As well as
recognised as key workers, and where the usual letters and parcels, they delivered colleagues through the impact of COVID-19. of the transition to electric vehicles in the UK.
wetook responsibility to deliver some of COVID-19 test kits, Personal Protective Similar assistance programmes were also Culture was highlighted as a key area for the
the most important letters and parcels Equipment (PPE) and vaccination letters available in GLS. CR Committee when we spoke to you last year
we have seen in our company’s history. to support the effort during the pandemic. There has been a real increase in the – could you provide an update on any specific
With a reduced workforce due to colleague ambitions of Governments and customers areas of activity or focus from the past year?
Fran Fay, Head of Corporate Responsibility (CR)
sick absence and shielding, our people on environmental issues – what has the CR We are a people business. And this past year
spoke to Rita Griffin, Chair of the CR Committee
delivered considerably higher volumes Committee been focused or engaged with has demonstrated more than ever what great,
to get her reflections on the past year, to hear
of parcels than usual. during the year? dedicated people we have across our business.
about the focus of the Committee activities over
There has been and will continue to be a growing This year we have really focused on understanding
the last 12 months, and to understand where the I believe the business can truly say that
sense of urgency and ambition associated with much more about how our people are thinking and
focus for 2021-22 lies. we have been there to connect customers,
climate change, both in terms of understanding feeling on a regular basis. I believe that it is only
companies and countries at a time where
the potential impacts, but also the ambitions by doing this that you can really home in on ways
the usual human contact we are all used
to put in place and action strong roadmaps to that we can keep improving the culture across
to has not been possible.
transition to a lower, or zero, carbon economy. the business, and make it a great place to work
Corporate
In the build up to COP26 later this year, I expect we for everyone.
Responsibility will continue to see increased focus and ambition
Committee from Governments and the business community.
→ www.royalmailgroup.com/
en/about-us/management-
and-committees/corporate-
responsibility-committee
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
INTRODUCTION
CONTINUED
In the past, we have conducted annual I was particularly pleased to learn that we
engagement surveys of staff in Royal Mail. had met our fundraising target of £2million for
This year we also introduced more regular pulse our partnership with Action for Children. The
surveys. We have also introduced a number of partnership has been an amazing example of Trust is about more than
ways to create a two way dialogue with staff. the impact we can make collectively. I think the
For example, Simon Thompson has set up a ‘Your support for mental health in young people is such
just delivering a good service.
View’ channel so everyone can share their ideas an important area, and I am so happy we were It’s about being a part of the
and views on how to improve the business. It is able to support so many young people through communities you serve. It’s about
essential that we understand the views of the the Blues Programme over the past four years.
workforce. Maria da Cunha, designated Non- acting with honesty and integrity.
2020-21 was clearly a busy year for the CR
Executive Director for engagement with the Committee – what is the focus for the coming It’s about being a great employer.
workforce, continues to engage and listen and
bring that employee voice back to the Board.
year? What can we expect to see? It’s about being trusted to look
As we have discussed, there will be a continued
We hope that this new approach will help to focus on the culture within the business,
after our planet and communities
create a culture of regular feedback. The first specifically in relation to how the business is for the next generations.
of our pulse surveys focused on trust, which taking action on the feedback from the recent
gave colleagues the opportunity to feedback their Trust surveys in Royal Mail. Health, Safety and
Simon Thompson
views of working for Royal Mail. Although some of Wellbeing will remain a key area of focus. This is Royal Mail, CEO
the feed back was great to hear, such as the high of fundamental importance, particularly in the
levels of pride people have in working for Royal current environment. Finally, the Committee will
Mail, it also told us that only 36% of respondents review the ambitions and implementation of both
felt valued by the business. The survey told us the Royal Mail and GLS environment strategies.
that we have more to do to rebuild the trust of This is an area of growing importance, and one
our colleagues. This is going to be a real focus that will continue to be a key focus globally in the
for the business this year and an area for review run up to the United Nations Climate Change
by the CR Committee for 2021-22. Conference, COP26. Despite the challenges and
The business has a presence in communities We will continue to monitor our performance in impact of the COVID-19 pandemic
across the globe – can you elaborate on our these areas as we strive to continually improve
impact to society and perhaps provide a couple and I look forward to updating you next year on across our operations, we have
of highlights from the year? the progress we have been able to make. been able to keep customers,
I think that over the past year, the general public
have recognised more than ever what a valued
local communities and countries
and trusted part of every community our people Rita Griffin connected. Our Accelerate GLS
are. From the posties who visited customers in Non-Executive Director strategy, is committed to developing
fancy dress outfits brightening the days of those
shielding at home, to the various fundraising sustainable services to suit the
activities we have undertaken, we really have needs of our customers. You
made a difference this year.
will find information about our
activities throughout this report.
Martin Seidenberg
GLS, CEO
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
WHO WE ARE
OUR WHERE WE
BUSINESS OPERATE
We are an international business that OUR AMBITION Royal Mail operates throughout the
provides a postal and delivery service
UK, and offers letter and parcel
across an extensive network. To build a more balanced delivery services internationally.
The Group consists of two principal and diverse parcels‑led, GLS has a growing international
operations. Our domestic operation which international business. footprint which currently includes
includes Royal Mail and Parcelforce (Royal 40 countries and nation states.
Mail) and our international operation,
General Logistics Systems (GLS).
OUR – Be positive - about
OUR
PURPOSE Royal what we can achieve
Mail – Be Brilliant -
VALUES
for our customers
– Be part of it - each one
To connect customers, companies and countries. Our values, which shape our culture,
of us is responsible.
The COVID-19 pandemic has magnified our purpose and underpin everything we do. We focus on
the unique and important role the Group has in connecting our customers and on providing reliable
customers, companies and countries. – Reliability and convenient value-for-money
We believe that keeping the principles of CR at the centre of GLS – Security services. We want our people to be
our business strategy is vital to its success. The social and – Transparency proud to work for our businesses.
economic impacts of the resources that we expend to deliver – Flexibility
our corporate purpose are brought to life in our CR programmes. – Sustainability
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
GOVERNANCE PLC BOARD
FRAMEWORK
The Royal Mail plc Board receives regular updates on CR activities, including monthly health and safety briefings. Maria da Cunha
is the designated Non-Executive Director for engagement with the Royal Mail and GLS workforces. The Governance section, on
pages 83 to 137 of our 2020-21 Annual Report and Financial Statements, describes in detail how the Group manages its risks at
Royal Mail Group has a Board level, via subcommittees, and throughout the organisation.
committed and experienced
team of professionals, working
in close collaboration with
CR COMMITTEE
executive management and
the Board, to ensure that The CR Committee oversees the Group’s ESG agenda and monitors the Group’s performance across a number of key metrics.
Royal Mail Group’s business The CR Committee is Chaired by Rita Griffin, Non-Executive Director.
and CR strategies are aligned
The CR Committee membership also includes Non-Executive Directors Maria da Cunha and Baroness Hogg, the CEOs
and implemented.
of Royal Mail and GLS, and, as required, the Director of Corporate Affairs, members of the Royal Mail CR team, the Chief
Our CR governance framework HR Officer, the Global Compliance and Sustainability Director and GLS Compliance and Directives Officer.
defines key responsibilities and The Committee has focused its activities of the year on the following areas: health, safety and wellbeing, culture and
committees used to identify diversity, environment strategy, and enhancing the understanding of stakeholders’ ESG expectations and performance.
and manage key risks and The Terms of Reference for this Committee can be viewed here:
→ www.royalmailgroup.com/en/about-us/management-and-committees/corporate-responsibility-committee/
opportunities across the Group.
Further information about the CR Committee’s activities during 2020-21 can be found on pages 106 to 107 of the Annual Report
and Financial Statements.
CR FRAMEWORK
ROYAL MAIL UK EXECUTIVE BOARD (EB) GLS EXECUTIVE BOARD
Our policies and frameworks are set
at three different levels, Group wide, The Chief Executive Officer has overall responsibility for CR activities are a regular agenda topic for the GLS
Royal Mail and GLS. This structure CR within Royal Mail. Individual members of the EB are Executive Board as part of the Accelerate GLS strategy.
reflects the differences between Royal responsible for strands of CR activity, as follows: All country managers are responsible for implementing
Mail and GLS. They are set out in more – Jenny Hall, Director of Corporate Affairs, is responsible the sustainability initiatives in their country.
detail on page 52. for shaping and implementing our CR strategy, including An executive sponsor has been appointed to drive the
our environment and community investment strategies. initiatives across GLS.
– Matt Newman, Chief HR Officer, is responsible for
the people strands of our CR strategy, including health,
safety and wellbeing.
– Achim Dünnwald, Chief Operating Officer, is responsible
for ensuring the implementation of CR -related strategies
across fleet and operations.
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
DEFINING MATERIAL
ISSUES
We seek to understand the perspectives – Climate change and emissions G LS publishes a Sustainability Report The most recent assessment identified
of our stakeholders to ensure our CR reduction: Management of our carbon every two years. The latest report is data protection, health and safety (with
strategy and reporting address their footprint and preparations for the available at → www.gls-group.eu/GROUP/ a focus on safe driving), and customer
key issues and concerns. transition to a low-carbon economy en/our-responsibility service as key material issues.
We do this by proactively engaging with are key to sustainable growth. As part of this, GLS also conducts materiality
them on topics ranging from social and – Engagement and culture: Our people analysis specific to its business which
economic value, climate change, labour play a pivotal role in achieving our involves key stakeholders from each
rights, culture and customer service. strategic priorities. Building a trusting, country it operates in.
Information about our key stakeholder inclusive and customer-focused culture
groups and our engagement channels can is a key focus area.
be found at → www.royalmailgroup.com/ – Labour standards and human rights:
en/responsibility/our-approach/ Fostering a fair, rewarding and value- Royal Mail materiality analysis
based culture is key. Strong labour The issues depicted on this matrix are those that are deemed most material to the successful
standards and working conditions delivery of our business strategy.
KEY MATERIAL ISSUES are a vital component of this.
We undertake a materiality assessment – Customer service: We are focused on Engagement Climate change
across our Royal Mail business every two creating a more agile customer-focused and culture and emissions
Labour standards reduction
years. Through one-to-one interviews, business that meets the changing needs and human rights
Diversity Customer
surveys and an external stakeholder panel, of our customers. service
Importance to stakeholders
we identify the issues our stakeholders – Health, safety and wellbeing: Our Health, safety
and wellbeing
Air
view as being most important. Our most priority as an employer is to create a quality
recent assessment was undertaken during safe and healthy working environment.
Business
integrity
Community
impacts
2020. A full description of the process and Our goal is to ensure a workplace where
outcomes is contained in our 2019-20 CR everyone is free from injury, with good
Report which is available at physical and mental health. Resource efficiency
→ www.royalmailgroup.com/en/ – Diversity: We recognise the importance Socio-economic Mail integrity
impacts
responsibility/policies-and-reports of having a diverse workforce that Skills and
development
The assessment identified the following represents the communities we
Public policy and
issues as being most important to both operate in. transparency
Royal Mail and our stakeholders. – Community impacts: We are a Responsible
We regard all the issues identified in the valued and trusted presence in our procurement
materiality matrix opposite as important communities. Delivering economic
for Royal Mail to address. We cover all and social benefits to the communities Prioritisation by Royal Mail
of them in detail in this report. we service is a key objective of our 2019-20 materiality assessment
Over time, the specific prioritisation of issues can change due to our success in managing them, or the relative level of
CR strategy. their importance or impact. The issues depicted as being of highest priority to Royal Mail Group and its stakeholders are
those that have been assessed to require the most focus for the next couple of years. They are aligned to the focus areas
of Royal Mail’s CR Committee, and are those areas of our non-financial performance that, overall, currently have the
greatest influence on the success of the business.
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Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
CORPORATE RESPONSIBILITY
STRATEGY
Our CR strategy supports the delivery of our business strategy
and the creation of sustainable stakeholder value. It also protects
our trusted position in society.
OUR REPORTING
THE OBJECTIVES OF OUR ROYAL MAIL CR STRATEGY ARE TO: We report against our strategies
– Deliver economic and social benefit to the communities we serve. under the following areas:
– Manage the environmental impacts of our business and operations. Our customers
– Drive colleague advocacy for the Group and its community role. We are proud of the role we play in
– Deliver our transformation responsibly. connecting customers, companies
and countries across the UK through
– Operate with integrity.
Royal Mail and internationally through GLS.
– Communicate our management of corporate responsibilities openly and transparently.
Our people
We are committed to providing our
people with a safe and healthy working
THE GLS SUSTAINABILITY MISSION
environment and opportunities to fulfil
their potential. Fair working conditions are
ThinkResponsible is a key pillar of the activities of the GLS Group. It encompasses the pillars of: at the foundation of how we do business.
– ThinkGreen, business practices that help conserve resources. Our environment
– ThinkSocial, activities that benefit employees, business partners and society at large. Environmental considerations are ever
– ThinkFuture, activities in the area of alternative fuel technologies and urban logistics. more fundamental to the way we do
– ThinkQuality, reliability, punctuality, transparency and performance standards at business. Ensuring that we play our part
the heart of day-to-day endeavours. is a critical aspect of our role in society,
supporting our customers’ aspirations
and protecting our resilience and success
in the long term.
SUPPORTING THE UN SUSTAINABLE DEVELOPMENT GOALS Our communities
We seek to be an integral, valued and
Royal Mail supports the UN Sustainable Development Goals (SDGs), recognising trusted part of every community.
them as a common definition and roadmap for a better and more sustainable
future for all. Through our materiality assessment, we identified five SDGs that are Compliance and ethics
particularly relevant to the priority focus areas for our business. These are the goals We operate with integrity and transparency
to which Royal Mail Group – Royal Mail and GLS – can make a significant contribution. to protect our valued role in society.
page 10 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
PLACEHOLDER IMAGE
OUR
CUSTOMERS
Our unique and important role to
connect customers, companies
and countries has been magnified
throughout the pandemic.
In Royal Mail we aim to create
a more agile customer focused
parcel business centred on three
key priorities: Customer, Trust and
Growth. We will continue to provide
a UK-wide trusted service that is
focused on the customer.
In GLS, we will continue to focus
on implementing innovative digital
and sustainable solutions centred
around customer needs.
1.7bn 400,000 1.6m 1.5bn
parcels handled customers offered next-day parcels collected from items of PPE delivered
by Royal Mail prescription delivery trial customers’ doorsteps to care homes, GP
through Parcel Collect surgeries and social
care providerspage 11 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
PROVIDING A
TRUSTED SERVICE
Keeping our customers connected GIVING OUR CUSTOMERS THE
has been our long-standing duty FLEXIBILITY THEY NEED
and one which we take great pride in As consumer demand for online shopping
across the Group. The last year has increased due to the closure of retail
outlets during national lockdowns, our
taught us that our customers’ needs focus remained on delivering solutions to
are ever changing and we must meet the changing needs of our customers.
continue to grow to serve them.
– Royal Mail has launched a Sunday
parcel delivery service for a number
of major retail customers. This LAUNCH OF PARCEL COLLECT It also means fewer emissions, with
development paves the way for Parcels now represent 72% of Group our postmen and women collecting
seven‑days-a-week parcel deliveries revenue. The pandemic has accelerated as part of their daily round resulting in
At Royal Mail we are proud to help for more customers in the future. trends we have been seeing for years in no additional journeys being required.
our UK customers stay connected – In addition to our existing in-flight our markets. Parcels, rather than letters, Since its launch Parcel Collect has
during these challenging times. delivery options – designated Safeplace provided Royal Mail with the majority of its processed over 1.6 million items.
revenue for the first time in its five-century
In‑flight delivery options have been and Delivery to Neighbour – we have In a recent consumer survey 44% of
rolled out additional options including history. Transforming our network and respondents stated they are likely to
the number one ask from our sending working practices to adapt to parcels was
next-day Redelivery as well as Local use a home collection service offered
customers in e-commerce. Giving important before. It is vital now. by their delivery provider.
Collect from Royal Mail Customer
customers the option to specify Service Points and Post Offices. Providing a trusted service that makes
where their parcels are delivered – GLS Spain has introduced 2,500 our customers’ lives simpler and better
– in the event they are not at home convenience points across the country is crucial to what we do, so, as part of our
to receive them – is just one of to allow customers to access parcels commitment to provide great customer
through ParcelLockers 24 hours a day, experience and a convenient, flexible
the ways we are helping to bring service, Royal Mail launched Parcel
greater convenience to the lives or via Parcelshops open 12 hours a day. I used Royal Mail’s Parcel Collect
Collect, a parcel pick up service which
of our customers. We will continue to enhance our customer is available across the UK. during the initial roll out of the
offering to ensure that at all times we service in Bristol. The service was
provide convenient, reliable, value-for- Launched in October 2020, the new
Nick Landon,
money services. And we must do so in an service sees our postmen or women really easy to use, and it was a
Chief Commercial Officer
environmentally responsible way. This is collect parcels directly from the convenient way to send a gift to my
the right thing to do and, as our customers customers’ door, or their nominated aunt, particularly as I have a new
safe place, as part of their daily round.
demand more sustainable deliveries, it baby so time is precious!
will also create a competitive advantage. The service has been particularly valuable
to those customers who may be vulnerable
Claire,
and shielding, or for those who are unwell Parcel Collect customer
or may find it difficult to leave the house.page 12 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
OUR ROLE DURING
COVID-19
Protecting our colleagues’ and We are proud to be working closely Throughout GLS, our focus remains on We are proud that our colleagues have
customers’ wellbeing is of the with the public health authorities to minimising the risk of infection for our worked incredibly hard to deliver these
ensure the vital and timely delivery of delivery drivers as well as our recipients exceptional volumes on behalf of and to
utmost important to us. Since April
around 30 million vaccination letters too. when handling parcels. In 2020, a system our valued customers.
2020, tens of millions of COVID-19 We have also distributed over 1.5 billion of contactless delivery options was
test kits have been delivered and items of PPE to schools, social care developed and launched across the GLS
collected across the country, and and healthcare providers. This all forms operation. For example, in Poland, Spain
collections at priority postboxes part of our dedication to serving our and the Netherlands PIN codes sent to
have been increased to make it communities. We understand the recipients in advance of delivery replaced
easier for customers to return importance of this mission and, at the requirement for signatures, decreasing
all times, the safety of our colleagues risk for both customer and delivery driver.
COVID-19 tests.
and customers is our utmost priority. Due to GLS’ international presence, it has
also created a taskforce for both national
and international level operations so that
potential shipping and delivery challenges
caused by COVID-19 are continually
identified and overcome.
PRESCRIPTIONS IN A HURRY
Royal Mail is working with Echo The trial paves the way for a same We want to ensure that patients
by LloydsPharmacy to trial faster day delivery service covering morning always have a simple and
deliveries of prescriptions to some orders for urgent medication.
residents in London and the South East.
reliable way to get hold of their
Although the service offers greater medicine. Much like our recently
The trial aims to give customers a speedy, convenience for all, it is especially
convenient and secure way to order and important for vulnerable people launched feature that lets patients
receive vital medicine from the comfort who are shielding or not able to order online and collect at a
of their own home. leave their homes at the moment. LloydsPharmacy, faster delivery
Initially, customers with time-sensitive To find out more visit gives patients another option for
requirements who are ordering at night → www.royalmail.com/deliverpharmacy getting their medicine when and
will receive their deliveries a whole day where they need it.
earlier than they currently do.
Benoit Machefer,
CEO at Echo by LloydsPharmacypage 13 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
DELIVERING
INNOVATION
Some of the houses on the Isle of Mull BARCODED STAMPS
include a 30 minute walk to the front As part of a pilot, Royal Mail added
door, so the use of drones could support unique barcodes to around 20 million
our frontline delivery staff in offering Second Class stamps from March 2021
fast and convenient services. This trial – making them the UK’s first barcoded
will also monitor the environmental stamps. The barcodes will ensure that
benefits that using UAVs could provide. the stamps can be uniquely identified
Following the delivery to the Isle of Mull, in a move that could pave the way for
we will be consulting with the Islanders innovative customer services and
about how drones could be used to benefits in the future.
support deliveries to their communities. Royal Mail has a long and proud
This process will also help to identify history for creating innovative and
opportunities to support postmen and intuitive postal solutions. This goes all
women in delivering to other remote the way back to the Penny Black which
Our customers are spread across ACCESSING RURAL COMMUNITIES parts of the UK. established the principle of the one-
the globe, from densely populated Providing the Universal Service requires The project was delivered with a price-goes-anywhere Universal Service.
cities to the most rural highlands. us to deliver to every community consortium including DronePrep
Our aim is to able to deliver to across the UK. With some remote or and Skyports, and addressing
all communities in the countries rural destinations, receiving mail can technology what3words.
sometimes take longer, particularly Following the successful trial to the Isle
where we operate. during bad weather. of Mull, Royal Mail will begin deliveries
In December 2020, Royal Mail became from the UK mainland to communities
the first nationwide UK parcel carrier to on the Isles of Scilly. The month long
transport a parcel for recipients via an trial, starting in May 2021, will focus on
It is an exciting opportunity to test
unmanned aerial vehicle (UAV). This was the delivery of critical PPE and COVID
out new ways of working to support the first step in a programme focused testing kits, as well as other parcels and
us posties that deliver in some of on engaging with the community on the mail. See www.royalmailgroup.com/en/
the most remote areas of the UK. Isle of Mull to identify opportunities to press-centre/press-releases/royal-
Some of the houses on the Isle of support deliveries to very remote areas mail-group/scillies-drones-trial/ for
and addresses in the UK. more information.
Mull include a 30 minute walk to
the front door so the use of drones
will be a huge help!
Tom Nunn,
Postman, Isle of Mullpage 14 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
SUPPORTING SMALL
AND MEDIUM-SIZED
BUSINESSES
Our products and services play a parcel postboxes across the UK, we
vital role in supporting economic provide convenient posting options for
growth. By offering delivery SMEs looking to sell online. We also
provide advice and guidance for SMEs
services to all parts of the country, online to help them grow their business.
we help small and medium-sized
Last August, we launched a new Business
enterprises (SMEs) compete with Instagram account to support our customer
larger businesses while giving base of more than 26,000 SME businesses
consumers greater choice. and marketplace sellers. The Instagram
With over 16,000 new e-commerce page aims to provide inspiration, support
businesses launched between March and advice for growing businesses as well
and July 20201, the rise in online retail as showcasing suitable products for SMEs
continues to fuel growth in parcel volumes. such as App, Click & Drop, guides and
THE MAGIC INK POT bearable for their children. Our ‘Letter
insights into shipping, market trends and
With our extensive network, including The Magic Ink Pot creates bespoke from the Easter Bunny’ did particularly
marketplaces. The page has been managed
access to Post Offices, postboxes and stories for children. We chatted to well at that time. Having to spend more
by our Sales apprentices.
company founder Judith Katz about the time indoors has focused my mind on the
pandemic, the inspiration behind her business and I developed more products;
stories and why she uses Royal Mail ‘Letters from a Mermaid’ and a ‘Father
to deliver the company’s products. Christmas I.O.U’ letter for parents who
couldn’t get their hands on that elusive
How was Christmas 2020 for present in time for Christmas. Look out,
The Magic Ink Pot? Were you too, for a ‘Letters from the Tooth Fairy’
We want to be more connected busier than in previous years? gift pack in 2021.
with our SME customers digitally. Well, it was a strange one – that’s for Why did you choose Royal Mail
It is also an opportunity for sure! The Magic Ink Pot was certainly to deliver for you?
customers to share stories about busier and that’s partly due to the
pandemic sending more people online The Magic Ink Pot’s letters are written
their businesses, helping others to to bring a bit of good, old-fashioned
to search for gifts. I’ve been so grateful
grow. We’re very excited and can’t to Royal Mail for managing to deliver magic into a child’s day. There’s no
wait to see where this goes. our letters under tremendous pressure. postal service more traditional and
iconic than Royal Mail! With a postbox
Stacey Firn,
How has the pandemic affected on every corner, it’s also incredibly
Sales Development Manager your business? convenient for me, especially when
The first lockdown was particularly Click and Drop means I can pay for
busy as I think people were looking for postage online.
ways to make staying at home more
1 Royal Mail & The Centre for Economics & Business Research Courier, Winter 2020-21page 15 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
THE IMPORTANCE
OF LETTERS
Research undertaken during the year shows Letters remain an extremely
that mail continues to connect people and
remains an effective engagement tool. important and powerful
communications tool.
Over the past year, as face-to-face During the first national lockdown in
social interactions have been reduced,
1 in 5 and people have been spending more
2020, Hallmark and Royal Mail partnered
up to give away half a million greeting
people have sent more time at home, mail has delivered cards across the UK with a mission to
letters and cards since important human connection, from help show gratitude and appreciation for
social distancing both letters themselves and the
measures began. the heroes in our lives. Those heroes were
postie delivering them. doctors, nurses, care workers, postal
Research undertaken during lockdown service workers, teachers, supermarket
highlighted the emotional significance of workers, cleaners, caretakers, delivery
the written word, along with the positive drivers and many more doing their jobs
mental health benefits associated. to keep the world going. Royal Mail,
According to Royal Mail research, 74% collected, posted and delivered the
of Britains felt that writing letters has
88% positive mental health benefits.
cards on Hallmark’s behalf.
of people reported paying
more attention to mail
during lockdown.
A CARD FOR A HERO
Captain Sir Tom Moore, who raised over
£32 million for the NHS Charities Together
by walking 100 laps of his garden before The need to give Captain Tom his
turning 100 years old, was well deserving
of the tens of thousands of birthday cards own selection on our letter sorting
39% he received last April. The South Midlands machine highlights just how much
of consumers say they Mail Centre had received so many items he has inspired the public with
have a high level of trust of mail addressed to Captain Tom that his efforts. None of the team have
in mail compared to 10% they had to reprogramme their Intelligent
for social media. ever known one person to receive
Letter Sorting Machines to reroute all of
his mail to a dedicated collection box. so much mail.
Royal Mail also issued a special postmark Stephen James,
Plant Manager at Royal Mail’s
wishing Captain Tom a happy 100th South Midlands Mail Centre
Sources JICMAIL, Q2 2018 – Q2 2020.
RoyalMail MarketReach, Coronavirus Research,
birthday. The postmark appeared on
Trinity McQueen 2020 and IPA TouchPoints 2020. stamped mail across the UK.page 16 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
BETTER SERVING
OUR CUSTOMERS
74.7% 93.7% 84%
We are proud of the role we play We track our Net Promoter Score of First Class mail delivered of Second Class mail delivered of business customers say Royal
connecting people, especially over (NPS) through our interviews and the next working day within three working days Mail are easy to do business with
feedback mechanisms. This measure
the last year. Although we rose to
provides information about the likelihood
meet many new challenges in 2020, of recommending our brand, with a score
we recognise that there is even above zero classed as good. At the end
more we can do to improve the of FY2020-21 our NPS for business the COVID-19 pandemic qualified as PROVIDING VALUE FOR MONEY
experience of being a Royal Mail senders was 33%, and 36% for consumers. an ‘emergency situation’ and, in such In January 2021 we increased the price
or GLS customer. For consumer recipients our NPS was 40%. circumstances, we are not required to of our Letter First and Second Class
sustain the Universal Service without stamps to 85p and 66p respectively.
We take complaints very seriously. interruptions, suspension or restriction. These changes were necessary to
CUSTOMER SATISFACTION We aim to resolve customer issues and
As a result of these exceptional challenges, help ensure the sustainability of the
Improving customer experience is identify any underlying causes. This year,
Royal Mail delivered 74.7% of First Class ‘one‑price‑goes-anywhere’ Universal
extremely important to us; as such as a result of the pandemic, we have
mail the next working day (and 92% of Service. Recognising that many
we undertake regular research with faced numerous operational challenges
First Class mail was delivered within two companies and households are finding
both our business and consumer as we handled unprecedented parcel
days of being posted). We delivered 93.7% it hard in the current economic climate,
customers. We measure Royal Mail volumes. Complaints received by Royal
of Second Class mail within three working we considered these pricing changes
customer satisfaction by interviewing Mail during FY2020‑21 totalled 615,892,
days for FY2020-21. very carefully. Royal Mail’s stamps are
around 400 business contract customers, an 8.5% increase compared with the
Royal Mail’s service levels are improving still amongst the best value in Europe
and 3,000 consumers per month. In prior year. Complaints received included
as COVID-19-related absence levels begin compared to other postal operators
addition to the monthly business and new issues such as social distancing
to stabilise and as we continue to take action where the average is £1.09.
consumer satisfaction interviews, we and the change to doorstep delivery
received feedback from around 50,000 policy. Improving standards across our to improve Quality of Service. We remain
recipients per month via a link in the operations continues to be a key priority. resolutely focused on delivering pre-COVID-19
confirmation of delivery emails. quality in a COVID-19 world as soon as we can.
QUALITY OF SERVICE
During the year GLS continued to be
Although some customers’ experience At the beginning of the pandemic we recognised for its high level of customer
may have been impacted due to the communicated to customers that despite service. In Hungary, a survey undertaken
pandemic over the last year, 84% of our our best efforts, our service was likely by the independent Economic Research
business customers said that “Royal Mail to be disrupted. We prioritised the health institute GKI Digital confirmed GLS as the
are easy to do business with”, and 81% of and safety of our people and customers favourite parcel provider in that country
consumer customers agreed that Royal and we modified our operations. However, with a satisfaction score of 9.3 (out of 10).
Mail’s services are “easy to use”. the introduction of necessary social In 2020 GLS Poland won the Customer
distancing measures, combined with Friendly Company award based on
increased COVID-19 related staff absences the findings of an independent survey
and unprecedented parcel volumes, which evaluated customers’ experiences.
inevitably had a detrimental impact on The business won the same award in 2019.
performance. Ofcom has recognised thatpage 17 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
PROTECTING OUR
CUSTOMERS
SCAM PHYSICAL MAIL
403 1.5m
As the only carrier required to investigations into reports of fake stamps prevented from
deliver to every household in the Royal Mail will never deliver items of mail stamp fraud reported by the public reaching the market
nation six days a week, playing a that it believes to be illegal. We ask our
role in protecting our communities customers to contact us if they believe
that they have items of mail that may be
is naturally part of what we do.
a scam. We offer Freepost, telephone
and online services for potential victims DETECTING AND REPORTING STAMP FRAUD
SCAMS
and concerned relatives to bring items DRUGS IN OUR NETWORK
Royal Mail works hard to prevent and detect We want to help prevent stamp fraud and
to our attention. We understand the tremendous harm
fraud. We work with UK law enforcement the sale of fake stamps to our customers.
In addition, we work closely with the that illegal drugs cause in the community. We encourage customers to let us know
agencies, Trading Standards and other
worldwide postal industry, our partners We work closely with law enforcement if they have come into contact with fake
organisations to share information about
the National Trading Standards Scams agencies to stop the carriage and delivery stamps or have any information that may
criminal activity, and support robust
Team (NTSST), along with other national of illegal drugs. This year we prevented be useful for our investigations. This year
proactive action against scams.
postal organisations. We also engage with over 2,500 packages containing illegal our Stamp Fraud Helpdesk has undertaken
SCAM TEXTS AND EMAILS law enforcement agencies both at home drugs from reaching the market. In addition, 403 investigations into reports of stamp
During the past year, a number of brands, and abroad in a coordinated response to we screen suspicious items using X-ray fraud reported by the public. We work
including Royal Mail, have been targeted stop scam mail and the criminals behind machines and deploy sniffer dogs to help closely with enforcement agencies including
by scammers who send fake texts or the scams. detect them. We have also been working Border Force and online marketplaces to
emails purporting to be from the Company. This year, we have: with the relevant regulatory authorities disrupt the supply of fake stamps. This year
The frequency of such scams has risen to prevent the supply of counterfeit alone we have prevented over 1.5 million
– Stopped 53,000 items of scam mail
across the board during the pandemic as medicines from overseas to the UK. fake stamps reaching the market.
at the UK border.
more crime moves online. The fake texts
– Conducted 1,342 investigations
and emails, which fraudulently request the
into suspected items of scam mail
payment of fees, are in fact phishing scams
reported to our Scam Mail Helpdesk.
designed to capture sensitive financial data.
We regularly remind our customers that we – Referred 31 customers who had
would never request payment by email or identified themselves as being
by text through online engagement. We victims of fraud to NTSST for
have also developed dedicated web pages further professional support.
giving examples of scams, guidance on PRIORITIES FOR 2021-22
identifying fake texts, as well as guidance Simplify our product Restore Quality of Leverage our environmental
on how to report them. range to an easier to Service to keep high advantage to support
→ www.royalmail.com/scamprotection understand structure. levels of customer customers looking for
satisfaction and trust. environmental friendly
delivery options.page 18 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
OUR
PEOPLE
SUPPORTING COLLEAGUES THIS YEAR
We are committed to providing
our people with a safe and Our people have played a vital role throughout the pandemic.
Every decision we have made has put the health of our
healthy working environment and people and our customers first. In March 2021, we released
opportunities to fulfil their potential. a film looking back and reflecting on the year and the role
With 137,300 employees, we are one we played throughout. ‘One year on’ can be viewed at
→ www.royalmailgroup.com/en/insights-innovation/
of the UK’s largest employers, with our-people/one-year-on
1 in every 172 people in employment “Really early on we adopted the mantra of ‘Protect our
working for Royal Mail. The Group people, protect our company, protect our country’, and very
employs 158,600 people. Our people deliberately in that order to show that the health, safety and
wellbeing of our people was the first priority.” Dr Shaun
are our priority, and we have never Davis, Global Director Compliance & Sustainability
been so proud of them as we have
this last year.
97% 10,400+ 44% 6.5%
of our UK colleagues colleagues have women on employee turnover
are on permanent used our First Class the Board1 rate, compared to
contracts employee wellbeing the average UK
and support helpline turnover rate of 15%
1. As at 1 April 2021, the proportion of women on the Board was 44%.page 19 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
OUR
STRATEGY
BUILDING A CULTURE OF TRUST Supported by our Trade Union partners,
Our ambition is to build a trusting, we launched ‘The Big Trust Survey’ in
The last 12 months have been a inclusive and customer-focused culture. April 2021. Over 66,000 colleagues took
Our values – ‘Be positive, be brilliant, part which represents almost 50% of
challenge for every organisation.
Responding to a rapidly changing be part of it’ – represent the way we do our workforce.
At Royal Mail, we’ve all had to adapt
external environment, we have things at Royal Mail and help shape our This is the second year where the survey
reviewed our UK people strategy to rapidly to meet the challenges engagement strategy. is only available on-line. The level of
ensure that it continues to support of the pandemic as our country As key workers, our people have participation is a 41% improvement on
our business strategy and priorities. came to rely on us even more. played a vital role for the nation this last year and 32% improvement on the
Our focus has been on ensuring past year, keeping the nation connected last pulse survey.
Building trust, and focusing on talent that we’ve been able to respond and supporting our communities. Building In terms of results, we saw a +3
and process excellence will be at the to our customers’ needs, quickly, on a renewed sense of purpose, a culture improvement in our Trust Index to 62%.
heart of everything we will do. positively and safely. We proved
of engagement has been a key focus; At 67%, our Engagement Index is now at
from local initiatives to our national UK benchmark, a first for us and a positive
As a result, we will focus on four that we can, and by continuing ‘Transformation Story’, our ambition affirmation that we are concentrating on
strategic priorities: to work with our people and our has been to keep the conversations going the right things.
– Building a culture based on trust. unions on what matters most, throughout this most challenging year.
– Identifying and developing our talent at
I am confident that we will keep In February 2021, we launched a new
on connecting customers and approach to surveying our people.
all levels of our business, so our people
We moved away from our previous
can deliver now and in the future. communities, delivering trust
annual employee survey and introduced
– Focusing on process excellence and on the doorstep. regular pulse surveys throughout the
simplification to free up our people’s year to help create a culture of feedback
time so they can concentrate on Matthew Newman, and increase the employee voice.
Interim Chief HR Officer
delivering for our customers.
The pulse surveys, which are designed
– Delivering brilliantly every day to to provide insight against our key business The Big Trust Survey headlines:
make sure that all our business priorities, began in February 2021 with – Over 66,000 colleagues took part.
critical services run smoothly to our first Trust Survey. – Trust Index score of 62% vs
support our people.
The first survey asked colleagues for UK benchmark of 74%.
Our overarching aim is to enable our their views on what it feels like to work – Over 80% of respondents feel
people to grow, build trust, and simplify at Royal Mail. This gave us a great insight proud to work for Royal Mail.
what we do to put our customers first. into levels of trust across the business.
It has also subsequently driven change – 49% of respondents feel valued by
where it matters most to our people. Royal Mail. We have more to do.
– 67% engagement index score.page 20 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
ENGAGING OUR
PEOPLE
As a business built on connecting ENGAGING OUR PEOPLE
THROUGH TRANSFORMATION
1,500
our customers, keeping our managers were
colleagues engaged is a key Following a review of our people strategy we provided with
development
priority for us. launched our Transformation programme in
July 2020. Ensuring that our people were
Our focus this year has been engaged with our transformation programme
to keep listening to our people was crucial to ensure its success.
and responding quickly to the Creating a compelling narrative for
Key to our approach was developing RECOGNISING AND
challenges they’ve faced. the programme was fundamental. CELEBRATING SUCCESS
our leadership behaviours towards
With input from hundreds of colleagues
positive reinforcement of transformation, Aligned to our wider transformation
from across the Company and country,
cultivating trust-based relationships programme, this year we provided our
we created our ‘Transformation Story’.
and driving real cultural change in operational colleagues with the opportunity
Through each phase of the story we
the way we do things. to help shape recognition at Royal Mail.
sought to excite, engage and enable,
creating understanding of our programme The programme included: The ‘Shine’ recognition trials focused
strategy and the part our people play – Providing development to c1,500 on peer-to-peer, ‘in the moment’ and
in supporting the changes required. managers across the organisation behavioural recognition nominations
to support them in delivering our aligned to our ‘be positive, be brilliant,
Navigating the challenges of the pandemic be part of it,’ values. Three different ideas
meant that we needed to utilise a blend ‘Transformation Story’. This included
upskilling them to be ambassadors were deployed in September 2020 at 26
of face-to-face and digital platforms to sites across the operation, with around
communicate with our people. and agents of connection, facilitating
sessions in over 1,600 sites. 2,000 frontline colleagues taking part.
Examples included badges, a Wall of
– Delivering activities which helped to Fame and thank you cards, with the latter
build context that motivates, provided two offering the opportunity to take part
clarification about what change means in a draw to win an experience-based prize.
at a local level, and delivered consistent
messaging creating sustainable change Colleagues provided pragmatic and
for the future. constructive feedback with a strong
preference for the thank you card concept
– Sessions aimed to inform colleagues to be progressed and developed further.
about our transformation journey and
offer our colleagues the opportunity to
ask questions and have their voice heard.page 21 of 60
Our Our Compliance
Introduction Our customers Our people Statements
environment communities and ethics
ENGAGING OUR PEOPLE ENGAGEMENT AT GLS
CONTINUED
EMPLOYEE VOICE
5th
The vast majority of the decisions we
This year GLS Germany was awarded
make could impact our colleagues 5th place in the ‘Best Recruiters’ study
therefore it is important that we engage of the 100 top employers in the country.
with them and understand their views.
To connect our employees with the Board,
we have held several Employee Voice
Forums (EVFs) to allow for an intimate
and open discussion covering various
1st
topics that are aligned to our strategy.
GLS ranked 1st among the 15 certified
In his previous role as Non-Executive transport and logistics companies and
Director, our now CEO Simon Thompson was awarded the Best Recruiters’ seal
KEEPING CONNECTED
has taken an active role in leading several of approval in gold as the industry winner.
sessions this year with our people from In March 2021, we expanded our
across the business. In his first month, online collaboration tool, Workplace I truly believe Workplace will
Simon hosted the first virtual People Panel by Facebook, previously only used by improve the way we communicate In GLS, employee engagement
with over 100 colleagues from across the managers, to our entire UK workforce.
Workplace gives everyone at Royal Mail
and collaborate, making us a initiatives are implemented at
business. The panel explored their thoughts a national level. For example,
a voice, and creates opportunities to stronger and more connected
and ideas around the concept of Trust. in May this year, GLS Denmark
share ideas, solve problems and have team. Everyone in Royal Mail will
In February 2021, Maria da Cunha took released a new engagement
over from Simon Thompson as the
conversations. This important dialogue have their voice heard. We will strategy to increase job satisfaction
will help us improve Royal Mail for our be able to share ideas, exchange
Designated Non-Executive Director by ensuring that employees are seen
people and our customers.
for engagement with the workforce. knowledge and provide vital and heard. GLS also measure job
Further detail on Maria’s activities to CEO Simon Thompson holds regular Q&A satisfaction, for example in Italy,
feedback to help us transform.
date can be found on page 92 and 93 sessions with staff. We have also held regular surveys are used to gauge
in the Annual Report and Financial a series of ‘Live’ events on Workplace, workplace satisfaction.
Statements. including an hour long session on culture Jenny Hall,
Director of Corporate Affairs
and trust with CWU Deputy General
Secretary (Postal) Terry Pullinger.
Further detail on
Maria’s activities
to date can be
found on page 92
and 93 in the Annual
report and
Financial Statements.You can also read
