NETWORKED ACTION SUSTAINABILITY REPORT 2015 - HERMES | HERMES
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NETWORKED ACTION
Sustainability Report 2015
www.hermesworld.com
Sourcing & Product | Transport Logistics | Full-Service E-Commerce | Distribution
Our Sustainability Hotspots Our Approach to Sustainability
As a partner to the retail industry, Hermes conducts its business balancing
many expectations. The chart below highlights particular challenges along
the retail supply chain. Top-quality and
sustainable services
Ensuring partners and suppliers Digital Networking
meet stringent Internationalisation Climate protection
transformation and exchange with
environmental and in retail trade and CO2 cuts
social standards and data protection stakeholders
Cutting CO2 emissions and
conserving resources
Market
Sourcing Transport logistics Fulfilment Parcel delivery
& Clients
Management
Product testing Online shops 2-man handling &
Climate Dialogue Work
& &
Environment Life
Demographic change: Promoting diversity Customising Resource efficiency
Ecological services
Development of junior staff and a healthy services and the deployment of
for clients
and specialists work-life balance in e-commerce renewable energy Forward-looking management Attractive employer and
and stakeholder exchange fair working conditions
Hermes Sustainability Report 2015
Contents Our Approach to Sustainability
Top-quality and
sustainable services
Cutting CO2 emissions and
conserving resources
About this report
Significant key information 2
Market
Foreword from the Chairman of the Supervisory Board & Clients
Hanjo Schneider, member of the Executive Board of the Otto Group
and Chairman of the Supervisory Board of Hermes Europe GmbH 3
Management
Hermes: a portrait
Hermes business units and services along
the retail supply chain 4
Management & Dialogue
&
Climate Dialogue Work
Managing sustainability at Hermes, responsible management
and exchange with stakeholders 6
_ Double interview with Frank Rausch (CEO of HLGD and HTL) and
Sabine Christiansen (Member of the Supervisory Board) 12
& &
Service & Clients
The Hermes Group’s sustainable service portfolio 14
Environment Life
Climate & Environment
Climate and environmental protection at Hermes 20
_ Carbon cuts in the fields of transport and mobility 22
_ Sustainable input to site design and environmental protection 25
Work & Life
Staff development, collaboration with partners
and social engagement 28
_ Hermes: an attractive employer 30 Forward-looking management Attractive employer and
_ Ensuring fair working conditions 32 and stakeholder exchange fair working conditions
_ O verview of worldwide engagement 34
GRI Index
Outline of the Global Reporting Initiative indicators included in the report 36
Hermes Sustainability Report 2015 1
About this Report Dear Reader,
C
With this, our second, Sustainability Report we aim to update our stakeholders on projects and progress made in ompanies have to accept responsi-
respect of our economic, ecological and social responsibility. And in 2015, we are doing this for all Hermes Group bility. In societies characterised by a
business units along the retail supply chain. division of labour, corporate success
is not measured solely in terms of maximis-
ing profit: enterprises also exist to serve
The current reports depicts just how we Integration of new business units dar year. Exceptions to this have been iden- people. In the bigger picture, this means
implement and maintain our corporate Unless stated otherwise, key data refers to tified. This has resulted in a trunk year for that companies are required more than ever
responsibility in our business processes both the following Hermes companies: 2013, which has to be taken into account before to contribute to a society’s well-be-
as an employer and as part of our social •• Hermes Europe GmbH (HE) when interpreting the figures. The report is ing and its advancement.
commitment. The content we have chosen •• Hermes Transport Logistics GmbH (HTL) based on qualitative data gathered by our
reflects the principle of materiality and the •• Hermes Fulfilment GmbH (HF) specialist departments and the sustainabil- This belief has been a constituent compo-
interests of our key stakeholders – our cus- •• Hermes Logistik Gruppe Deutschland ity coordinators, and key data from the Otto nent of Hermes corporate strategy for years
tomers, our clients, contracting partners GmbH (HLGD) Group’s corporate responsibility database. now and is expressed succinctly in the title
and employees. The themes and section •• Hermes Einrichtungs Service GmbH & Co. of this second Sustainability Report: Net-
structure correspond to the four strategic KG (HES) Editorial note worked Action – a formulation that is the
areas of action promulgated by Hermes in •• Hermes Ltd. UK (HUK) For the sake of readability, this report omits maxim of all our work. Each and every day,
the field of sustainability: Management & gender-based dual entries and uses the worldwide. With its twelve specialised com-
Dialogue, Service & Clients, Climate & Envi- In addition, we have also integrated Hermes- masculine form. In those cases, however, panies, Hermes is currently the only service
ronment and Work & Life. OTTO International (H-OI) which provides both women and men are intended. provider worldwide capable of offering its
worldwide sourcing services for us in the clients all the relevant services along the
GRI reporting report for the first time. Our current Sustain- The Hermes Sustainability Report 2015 is global retail supply chain from under one
In order to facilitate comparability, our ability Report for 2015 therefore reports on available in both German and English. It has roof. This provides significant value-added
second Sustainability Report has also been all four business areas of the Hermes Group: been published in printed form, and online because only those products and services Europe. This remarkable history has only Group’s ‘Power of Responsibility’, formu-
compiled in line with the internationally rec- Sourcing & Product, Transport Logistics, Full- as both a PDF file and as an e-book at www. that promote greater efficiency in trade are been possible because the company has lated in 2012, places focus on people as our
ognised guidelines of the Global Reporting Service E-Commerce and Distribution. All hermesworld.com. Editorial deadline for the sustainable in line with our definition – and faced up to its responsibility for people and company’s most important resource. We are
Initiative (GRI-G3.0). In the course of this, told, the companies included in this report current report was April 2015. In principle, contribute to corporate success in the long the planet as well as pursuing its economic fully aware that in global trade, we are
we are continually building on the transpar- achieved a 96.4% share of Group revenues. we report on our progress in sustainability in term. This applies just as much to us as it goals and developing its specialist expertise. already in competition today for the talent
ency of our reporting. And the results speak two-year cycles. The previous Hermes Sus- does to our clients. Well-positioned in this It has managed to do this in a highly sensi- of tomorrow. This is why we are positioning
for themselves: in this year’s report we Data collection and reporting period tainability Report was published in summer way, Hermes generates transparency and tive market that is strongly characterised by ourselves as a corporate group that is sus-
immediately satisfy the second highest GRI The reporting period covers the 2013 and 2013; the next report is planned for release reliability. And in the light of increasingly cost pressures and growing competition. tainable, for example by publicly emphasis-
application level (level B). On top of this, we 2014 financial years – in total from 1 March in summer 2017. complex supply chains and with an eye on We are highly delighted to be able to pres- ing our plans to become better – as an
also report on selected indicators specific to 2013 to 28 February 2015. Since 2013, the the future, these factors are becoming ever ent this current report, a continuation and employer, a service provider and as partner.
the logistics and transport sector (GRI pilot key data required for the report have been more important. development of the sustainability reporting You can see just how far we have come in
version 1.0) for the first time. largely captured on the basis of the calen- we initiated in 2013. this our current Sustainability Report.
This is what makes our report credible for
our stakeholders, particularly as we can con- As a wholly-owned subsidiary of the Otto We hope you enjoy reading our report and
stantly complement the image the public Group, Hermes has traditionally been an would be delighted to have your continued
has of us – through this report or through integral component of the sustainability support along our journey.
other communication channels we maintain efforts of our parent company – and, as
and can draw on new perspectives. Both part of the services division, has made
If you have any questions regarding the Hermes Sustainability Report or require more Hermes UK, our rapidly growing parcel divi- major contributions in this regard. With
information, please contact: sion in Britain, and Hermes-OTTO Interna- its CR Strategy 2020, targeting reductions
Claudia Schanz Stefan Hinz tional have made key contributions to this in in ecological and social effects along the
Press Spokeswoman Environment Officer & Team Leader for recent months. The latter has partnered supply chain, the Otto Group has deeply
Manager International Communications & CR Sustainability Management many retailing clients over the last 50 years anchored the principles of sustainable busi-
Corporate Communications Organisation and more, developing bespoke sourcing ness in its organisation and in all related Hanjo Schneider
Hermes Europe GmbH Hermes Logistik Gruppe Deutschland GmbH strategies in crucial markets in Asia and business processes. The mission of the
Essener Strasse 89 Essener Strasse 89
22419 Hamburg 22419 Hamburg
T +49 (0)40 537 55-0 T +49 (0)40 537 55-0
F +49 (0)40 537 55-757 F +49 (0)40 537 55-187
eMail: presse@hermesworld.com eMail: umweltschutz@hermesworld.com
2 Hermes Sustainability Report 2015 About this Report | Foreword from the Chairman of the Supervisory Board 3
Everything to Promote Trade
The Hermes Group is a worldwide leading provider of supply chain management
services and offers its clients all the relevant services along the whole retail Umbrella Organisation Full-Service E-Commerce
Hermes Europe GmbH (HE) Hermes Fulfilment GmbH (HF)
supply chain. It can draw on around 50 years’ experience. As the umbrella organisation, Hamburg-based Hermes Europe To facilitate e-commerce, HF provides all the services along
manages the collaboration between Hermes companies world- the flow of goods: from webshop development, financial and
wide. HE houses many central functions, such as IT, HR and customer services through to warehousing and returns process-
Corporate Communications. Changing the name of the com- ing. With over 3,600 employees in four of its own logistics cent-
pany from Hermes Logistik Gruppe to Hermes Europe in 2009 res in Germany and direct access to other international
was a key step towards further internationalisation. Since 2014, logistics sites, HF moves around 300 million items each year.
A wholly-owned subsidiary of the Otto continually building on our worldwide oper- Hermes has been operating the largest network for parcel
Group, Hermes was founded in 1972 as the ations – such as through our global trans- Reporting companies at a glance deliveries to private customers in Europe. The Hermes ParcelShop
mail-order company’s in-house home deliv- port network or by expanding our European The aim behind our second Sustainability network covers 28 countries in Europe, providing the highest
ery service. Today, the enterprise has become parcel logistics, which we operate in conjunc- Report is to provide our stakeholders with standards of service to business clients as well as private cus- Distribution
a specialist for the whole band of retail- tion with renowned partners. transparent insights into the economic, tomers. HE has around 200 employees. Hermes Logistik Gruppe Deutschland GmbH (HLGD)
related services and partners numerous dis- ecological and social performance of the Hamburg-based HLGD is Germany’s largest, independent parcel
tance sellers, multichannel retailers and Germany remains the biggest market in Hermes Group. The unit Sourcing & Prod- delivery service to private customers. Each day, deliveries are
online traders both in its native Germany and the Hermes portfolio. In view of the contin- ucts is represented for the first time in the made to up to 1.5 million private households. In addition, the
abroad. The array of services provided by uing boom in e-commerce, Hermes is cur- report with the inclusion of Hermes-OTTO Sourcing & Product logistics company maintains 14,000 ParcelShops in Germany –
the twelve companies operating under the rently modernising the infrastructure of its International. This now enables us to illus- Hermes-OTTO International (H-OI) the largest national parcel shop network targeting private
Hermes brand range from sourcing and German parcel division to make it fit for the trate our corporate responsibility along A global sourcing organisation, H-OI can look back on nearly customers in Europe. HLGD logistics infrastructure comprises six
quality assurance through to transport future. By 2018 we will have invested around the whole retail supply chain. 50 years’ experience of procurement from markets around the hubs and 57 depots. The company employs over 3,600 staff
logistics, fulfilment and the delivery of par- 300 million euros, creating a network of world. H-OI primarily sources clothing, lingerie and shoes as well and generates work for 10,500 employees at contracted delivery
cels to the customer’s doorstep. Hermes is 35 high-performance logistics centres best as products from the ‘home living’ sector, cooperating with a partners.
still the only company worldwide capable of positioned to meet stringent traffic require- worldwide network of suppliers. Around 1,500 staff in 23 offices
offering its clients such a complete package. ments. Hermes is also looking to strengthen located in key sourcing markets look after the needs of the Hermes Einrichtungs Service GmbH & Co. KG (HES)
its relations to smaller and medium-sized company’s steadily growing client base in Europe, North Amer- HES has specialised in the delivery, assembly, repair, installation
22 countries: enterprises. As part of this realignment, the
two logistics units within the Hermes Group,
line haul (Hermes Transport Logistics) and
Hermes continues to grow,
ica and Asia. The company’s head office is in Hong Kong.
Founded by H-OI in spring 2015, the independent company
Astra Supply Chain Services Ltd., provides additional social
and returns management of bulky items such as furniture and
larger household appliances – the so-called 2-man handling.
HES was founded in 2004 as a joint venture between HLGD and
operations of 12 Hermes final mile (Hermes Logistik Gruppe Deutsch- achieving revenue of and quality audits, quality controls and IT-based supply chain the Löhne-based Sänger group of companies. Today, it delivers
companies continue
2.23 billion
land) will be fused. solutions. to around 4 million customers in Germany, Austria, Switzerland
and the Netherlands from its 43 German and five international
to expand. At home in Hamburg depots. The company’s headquarters are located in Löhne
Group headquarters is located in Hamburg. euros in 2014. where 260 people are employed.
One of the companies at home there is the Transport Logistics
On course for growth umbrella organisation, Hermes Europe (HE), Hermes Transport Logistics GmbH (HTL) Hermes UK Ltd. UK (HUK)
In 2014, the Hermes Group secured its elev- that coordinates all inter-company pro- HTL transports goods from some 30 countries for clients from Formed from the rebranding of Parcelnet Ltd., HUK has been
enth year of continued growth, achieving cesses. The twelve Hermes companies are around the world – on water, on the ground, by rail or in the air. part of the Hermes Group since 2009. Today, HUK maintains the
total revenues of 2.23 billion euros (2013: each managed by their own management HTL provides its clients with customised logistics solutions largest private consumer delivery service in the UK. With more
2.083 billion euros). The number of employ- team. Since November 2014, HE also has a enabling them to manage their worldwide supply chains by than 10,000 lifestyle couriers and 4,500 ParcelShops, Hermes
ees also continued to grow, rising to 12,470 Supervisory Board. Its chairman is Hanjo drawing on the most efficient combination of carriers. In terms handles more than 200 million parcels each year. All this is man-
(2013: 11,814). Hermes is currently active in Schneider who is also a member of the Exec- of intercontinental transport, HTL’s business focuses on import- aged from the company’s head office in Morley, Leeds, from its
22 countries, and operates its own compa- utive Board of the Otto Group where he is ing from and exporting to the Far East with more than 45,000 27 depots and three hubs, and by its 2,300 employees.
nies in the UK, Russia, Italy and Austria. To responsible for the Services segment. transports per year. Besides its Hamburg head office, the com-
meet our clients’ rising demands, we are pany maintains eight additional offices, and employs more than
250 staff.
4 Hermes Sustainability Report 2015 Hermes: a portrait 5
A Strategic Approach to
Management & Dialogue
Stefan Hinz
is responsible for data management across
the Hermes Group and is the first port of call
for all our companies in matters relating to
sustainability. In February 2015, a workshop
for all CR decision-makers and concerned
parties took place in Hamburg and served
as a launching pad for the development of As before, e-commerce is the prime driver of growth in global retail – 2014 saw record revenues being achieved
a groupwide strategy on sustainability. again in this segment. This is a dynamic development that offers us a myriad of opportunities. But because the role
and responsibilities of logistics is becoming more diverse and is characterised by increasing international competition
it also gives rise to a number of challenges. At the same time the stipulations for the logistics industry have become
tighter and our customers and clients are expecting increasingly more complex services with an eye for quality –
and sustainability. Given this demanding market environment, our highly motivated employees are our greatest
asset and we are looking to create the best possible working conditions for them. This applies as much for employ-
ees engaged at our contracting parties as it does for our own employees. Because corporate responsibility at Her-
mes does not end at the company gates, we also have to ensure that our suppliers and partners work with
us on sustainability.
Preparing the ground, we manage sustainability in a holistic manner, setting ourselves ambitious targets and
defining clear standards and processes. However, we can only continue to develop in the long term if our clients,
employees and partners accompany us along the path we have laid and when we include them in such events as
the Hermes Sustainability Weeks or in the Hermes Future Forum. Only by engaging our stakeholders in dialogue
in this way can we learn about their expectations and take these into account in future action.
The CR workshop discussed the future alignment Besides Frank Rausch, CEO of HLGD and HTL, and Supervisory Board member
and strategic development of sustainability at Sabine Christiansen, CR decision-makers from strategy, sustainability and
Hermes. communication sat together around the table.
6 Hermes Sustainability Report 2015 Management & Dialogue 7
Managing Sustainability Holistically Our Sustainability Programme
Action field Aim Date Status quo
For Hermes, sustainability is not a passing trend: it is the foundation for long-term
successful business. We set ourselves clear goals, enabling us to grow by Management Elaborate a groupwide strategy for sustainability 2016 A task force has been set up to develop the strategy
& Dialogue
harmonising economics, ecology and social matters – and to report on them.
Conduct a materiality analysis, including a survey of 2016 Planning and start for HLGD and HTL in current financial
stakeholders year 2015; other business units to follow
Hermes has a tradition combining economic Networked management of Sustainable Supply Chain Management Continually expand the scope of the Ongoing Full integration of the largest Hermes companies (HE, HLGD,
progress with ecological and social goals. sustainability Board. The Hermes Group’s sustainability Sustainability Report HTL, HES, HF, HUK) and the integration of H-OI with regards
Back in 1986 we strategically anchored the Given the broad base of our business, the performance is also monitored in the to qualitative information
issue of sustainability – in particular environ- challenges the Hermes Group has to face in Group’s Supervisory Board, set up in 2014,
mental protection – in our corporate goals. the field of sustainability are highly diverse. with TV moderator and producer Sabine Service & Successively increase the rate of first-visit Ongoing Currently, 96.3% of parcels reach customers at the first visit
Clients deliveries to customers
In other words, we have been looking to In order to achieve the goals we have set Christiansen holding responsibility.
conserve resources and continually reduce ourselves, Hermes companies have each
Continually expand the Hermes ParcelShop network Ongoing The Hermes ParcelShop network grew by 44% in the period
our carbon footprint. Every day, our employ- appointed their own CR coordinators who Dialogue on an equal footing
under review. Status: 36,000 pick-up/drop-off points in Europe
ees help in a variety of ways to anchor and are not only responsible for the topic of sus- For us, networked action means maintain-
foster sustainability activities in the com- tainability in their business units, but who ing dialogue with all our stakeholders on an
Generate CO2 compensation offers to clients 2015 Pilot project based on CO2 compensation in 2-man handling
pany. In return, we aim to offer them attrac- also promote it. Together they form the Cor- equal footing. Only by being in direct con- (HES) launched
tive working conditions throughout our porate Responsibility (CR) Network which tact with them can we begin to understand
organisation. At the same time, we also convenes several times per year to exchange what is expected of us and where we have Record all pollutants and emissions generated 2020 100% allocation of transport-related CO2 emissions as a
help clients achieve their own sustainability ideas and coordinate cross-company projects. to channel our energies. Our key stakehold- during transport for Hermes clients standard service for clients
goals, supporting them in an advisory ers at Hermes are our employees, custom-
capacity. Through responsible management All the strands from around the Group ers, clients and contracting partners. But we Climate & Cut CO2 emissions at all German sites by 50% (base 2020 Cuts in CO2 emissions at all German sites of 9%
and a steady commitment to people and converge at our sustainability officer whose are also in constant exchange with business Environment year 2006)
the planet we are aiming to secure the trust job it is to coordinate data management associations, competitors, NGOs, the media,
and acceptance of all our stakeholders. and act as the interface to CR management the critical public, academia, local govern- Cut CO2 emissions in German parcel distribution by 2020 Cuts in CO2 emissions in German parcel distribution 19%
Given this, we have defined four areas of at the Otto Group. The Corporate Commu- ment, politics and regional authorities. As 30% (base year 2006)
action for our sustainability activities: Man- nications division at Hermes Europe (HE) is part of this, we use a variety of channels,
agement & Dialogue, Service & Clients, then responsible for internal and external from employee and customer surveys and Certified environmental management system in line 2016 94% of German sites and 55% of UK sites have already been
Climate & Environment and Work & Life. communication of sustainability issues. At events through to our PR work, which with ISO 14001 at all sites in Germany and UK certified in line with ISO 14001
All together they form a holistic approach executive level, the topic is in the hands of includes client and employee magazines,
Comply with exhaust emission standard Euro 6 2020 19% of the Group’s own fleet of trucks meet
to sustainability (see the chart on page 1) Frank Rausch, CEO of Hermes Logistik and a newsroom with a special focus on sus-
across the whole Hermes fleet Euro 6 standards
which we pursue by setting specific targets Gruppe Deutschland (HLGD) and Hermes tainability. We are also looking to promote
(see page 9). Transport Logistics (HTL). A member of the interactive networking with our stakeholders
Continue to expand the deployment of Ongoing Involvement in various pilot projects, such as in electro-
Executive Board is also on the Otto Group’s by using a variety of social media – includ-
alternative drives mobility; 100% electric-driven deliveries in London through
transport partner
Work & Life To have 30% of management positions in service 2020 18% of management positions in service and administration
and administration held by women (HLGD, HTL units are already held by women
and HE)
Successively expand the certification of working Ongoing Continually integrating new contacting partners in the
standards at contracting partners across all Hermes certification process, SGS-TÜV Saar have been certifying
companies HES depots since 2014
Sustainability management extended at HF
In addtion to the Hermes head office, Hermes Fulfilment (HF) also set Set up a groupwide Corporate Volunteering 2017 Making employees aware of social commitment as part of
up its own Corporate Responsibility Board in 2014. The main task of Programme the Sustainability Weeks, individual Corporate Volunteering
Programmes running in companies
the committee is to implement groupwide sustainability goals for the
company and to adopt sustainability projects specific to the fulfilment
business. The first objectives for the Board have already been met:
a sustainability audit and mission have been developed for HF and
specific programmes pinpointed.
8 Hermes Sustainability Report 2015 Management & Dialogue 9
ing our Twitter channels and our Hermes Inspiring ideas Analysing and managing risks then the task of the Internal Auditing Environmental and social standards monitored for social and quality standards
blog. Our various memberships in associa- Only by generating innovative ideas and As an international provider of supply chain department to assess and investigate these at partners before any contracts are awarded. Produc-
tions, initiatives and projects open up other having the courage to implement them can services, we are confronted daily with the cases. In the two years under review, only The Otto Group’s Code of Conduct for tion sites assessed in a positive light receive
options for cooperative dialogue for us. At Hermes expect to prosper on its markets in dynamics arising from macroeconomic and one single case of suspected corruption non-merchandise and services also serves an internal code which helps us ensure a
present, the key cooperations and member- the long term. At the inaugural Innovation industry issues as well as those arising from was reported. However, investigations could as guidance for our management of con- high degree of transparency in the ordering
ships comprise: Camp which took place in autumn 2013, within individual companies. This calls upon not uphold the suspicion. All new staff in tractual partners and suppliers and is a firm process. When selecting potential suppliers,
involving representatives from all Group us to identify potential risks at an early specific ‘risk’ areas were given online train- component of service agreements. As an both logistics and parcels segments too
•• Bundesverband Logistik companies, we gave free rein to the creative stage – only then can we manage them ing in corruption prevention. international sourcing organisation, Her- make sure that these meet our environmen-
(Federal Association for Logistics), mes-Otto International (H-OI) also applies tal and process standards. Hermes Fulfil-
since 2009 Compliance with legislation and the Otto Group’s Code of Conduct for mer- ment carries out an assessment of suppliers,
•• Bundesverband Paket und Expresslogistik
“By building its distribution centre, Hermes Fulfilment has regulations chandise. This is rooted in the globally rec- drawing on the services of an external
e.V. (German Association for Parcel and considerably enhanced the status of the town of Haldensleben. The Otto Group’s own Code of Conduct for ognised standards of the Business Social auditing company.
Express Logistics), since 1993 non-merchandise and services is binding for Compliance Initiative (BSCI), which the Otto
•• Clean Cargo Working Group, since 2015
The inauguration in 1994 was the initial spark for further all Hermes companies. These key guidelines Group supports in conjunction with several In transport logistics, Hermes targets long-
•• Das Demographie Netzwerk e.V. investment decisions. In the course of the expansion programme demand compliance with respective national worldwide enterprises to improve production term collaboration with its partners – creat-
(The Demographic Network), since 2013 laws and internationally-recognised labour standards in sourcing markets since 2003. ing planning security for both parties. Since
•• Logistik-Initiative Hamburg, since 2006
launched in 2015, Hermes Fulfilment has generated additional standards based on standards promulgated This Code of Conduct is taken into account 2013, selected transport partners have been
•• Maritime LNG Plattform e.V., since 2014 jobs, building on its reputation as the biggest employer by the International Labour Organisation in all supplier contracts negotiated by H-OI. regularly audited, which includes an assess-
•• Naturschutzbund Deutschland e.V., (ILO) and the United Nations. In addition, In parcel distribution and 2-man handling, ment of environmental and social stan-
(German Nature and Biodiversity
in the region.” HLGD has drafted the principles of its lead- the Hermes Code of Conduct applies to all dards. In 2012 we became the first com-
Conservation Union), since 2010 ership in its own Code of Conduct. This business partners. As from 2015, this is now pany in the CEP sector to have its
Norbert Eichler, Mayor of Haldensleben (1996-2015)
•• Partnerschaft für Luftgüte und schad- applies to its own employees as well as to signed by our suppliers as well as contract- contracting partners in parcel distribution
stoffarme Mobilität (Partnership for Air those employed at it contracting partners. ing parties. Complementing the Otto Group’s certified by an external inspection institute.
Quality and Clean Mobility), since 2012 potential of our employees. Together, responsibly. Therefore, as part of our system In 2014, this Code of Conduct was also Code of Conduct, this regulates topics such In collaboration with SGS-TÜV Saar, we
•• Schaufensterprojekt zur Elektromobilität delegates attending the Camp developed of risk management, all of our companies adopted by Hermes Einrichtungs Service. as employee protection, working conditions have developed a certification system to
Berlin-Brandenburg (Electromobility forward-looking ideas – from deploying new are required to update their inventory of Should any employee suspect that stan- and minimum wages (see page 32). ensure high standards of both work and
Showcase), since 2013 services for shipping parcels and innovative risks. This requires them to identify risks dards are being infringed they can contact security. It is a system we have continually
•• Umwelt-Allianz Sachsen-Anhalt ways to generate customer loyalty through classed under the heading ‘Environmental the Social Compliance department at Her- Monitoring compliance with standards built on in conjunction with contracting
(Environmental Alliance Saxony-Anhalt), to optimising processes throughout the and Social Responsibility’ and to develop mes as well as an appointed independent Hermes companies regularly assess compli- partners since then (see pages 32/33). In
since 2009 organisation. This one-day workshop is just countermeasures. This also includes corrup- ombudsman. ance with legal standards. H-OI documents addition, since 2014 all companies we coop-
•• UmweltPartnerschaft Hamburg one example of how Hermes is promoting tion risks. Our Code of Conduct clearly stipu- compliance with the Otto Group’s Code of erate with have been called upon to take
(Environmental Partnership), since 2003 innovation. Since 2012, HTL has been regu- lates that any form of bribery and corrup- Conduct for merchandise in all markets and part in a half-yearly self-assessment.
•• Wasserstoff-Gesellschaft Hamburg larly inviting its staff to submit ideas on how tion will not be tolerated. The whistle-blower constantly evaluates its suppliers broken
(Hydrogen Society of Hamburg), the company can become better and more system we have implemented allows anyone down into categories of sustainability, qual-
since 1996 sustainable. to report any alleged misdemeanours. It is ity and performance. Each production site is
Contemplating the future together WE DO! 4YOU – Mobilising employees
In November 2014, Hermes Europe hosted the Hermes Future Forum in In 2014, Hermes organised its second Sustainability Weeks, raising employee
Hamburg for the third time – a series of conferences for clients and partners in awareness of sustainability issues in everyday life. Over a period of four weeks,
retailing, involving renowned celebrities from business, society and politics. employees at the Hamburg head office were made more cognizant of economic
As in 2010 and 2012, it highlighted contemporary economic developments and social issues through a variety of campaigns – from bike inspections and new
from a variety of perspectives. Under its banner headline ‘The Future of electro-vehicles through to a market for volunteers. Measures were selected on the
Innovation – Strategies for Competitiveness and Market Power’, guests such as basis of an online survey in which staff were encouraged to propose topics, ideas
Frederik Willem de Klerk (former President of South Africa and Nobel Prize laure- and wishes. These Sustainability Weeks proved so popular – even at the second
ate) and Sir Christopher Pissarides (economic scientist and Nobel Prize laureate) time around – that the idea is to be expanded to other locations in future. To date,
discussed the conditions required for successful and sustainable innovation in the programme has already included an energy-saving and ideas competition
retail and trade. The event was once again moderated by Sabine Christiansen. among Hermes depots throughout Germany.
10 Hermes Sustainability Report 2015 Management & Dialogue 11
“An Investment in the Future” ing in November last year. And after just a short period of time I
can already tell you that the Supervisory Board is doing a great job
for us, opening up new perspectives, expertise and discussion.
S. Christiansen: That’s right! And more importantly, nobody wants
to pay for it. There is a feeling that shipping should offer quality,
flexibility and returns for nothing – how is that ever going to work?
We also need to discuss the value and, thus, the price of logistics
The Hermes Group has its own Supervisory Board. Set up in November 2014, it binds sustainability even more S. Christiansen: We might be very inconvenient sometimes (laughs), services.
securely in the company and strengthens dialogue with key stakeholders. As part of the CR workshop, Frank Rausch but the diversity of members and our critical questions requires the
(Executive Board member with responsibility for sustainability at Hermes) and Sabine Christiansen (member of the company to adopt a manner of thinking that is forward looking. We F. Rausch: On top of this is the demographic change; people are
have to picture many stakeholders: customers, employees, suppliers, getting older, moving more to towns and cities, there are more and
Hermes Supervisory Board) discussed the challenges Hermes has to face up to. The discussion was moderated by
partners. Wherever we see challenges, it is our job to place our finger more single households. Neighbours are becoming more anonymous.
Claudia Schanz, spokeswoman and the person responsible for CR communication at Hermes. on them and ask questions. At the same time, the Supervisory Board So we have to ask ourselves how we can adapt our services. Logis-
also has to support key developments, such as the ongoing restruc- tics has to think one step ahead and generate real value added.
turing in the logistics and parcel units in Germany. Our common
interest is to position the company so that it remains future-proof. Even politics is becoming increasingly involved in the develop-
ment of sustainability issues. With success?
Ms Christiansen, you were appointed to the Hermes Supervisory
Board especially with the issue of sustainability in mind. What F. Rausch: Sure, politics has to provide the framework for things
are you going to be taking a particular look at? to happen. Networking business, politics and research is key to sus-
tainability. Even the cities and the local councils have to do their
S. Christiansen: I‘ll be taking a look at all aspects of sustainability. share, by making space available, or by opening bus lanes for elec-
Hermes has traditionally been well positioned on ‘green’ issues and tric delivery vehicles, for example. I think it is extremely important
has developed quite positively. Since 1994, Hermes has been able to maintain dialogue and to push on innovation together.
to cut carbon emission by a respectable 43% per parcel on the way
to the customer. We’ve not achieved that sort of success every- From your perspective, why is Hermes an attractive company?
where, but we’re making progress. The media has been focussing on
improving working conditions in the parcel sector recently. Hermes S. Christiansen: As an employer and training organisation, Hermes
has responded both well and quickly to this and has undertaken a has received multiple praise, it has a track record on innovation and
lot to create transparency. The minimum wage is another major is a forward-thinking company. This increases the appeal of the employer
challenge. But there are also issues such as women in management, brand Hermes. And sustainability is increasingly important here.
diversity as well as training and development.
F. Rausch: I can only underline that. In job interviews, one of the
Climate change, globalisation, demographic change – what are first questions we are asked is what are you doing socially and what
the most urgent challenges facing Hermes? are your values? These aspects have an impact both within and
outside the company. However, we are not awarding ourselves feel-
F. Rausch: We are in a highly competitive market. Trade today is no good factors. Our engagement is an integral part of our core busi-
In 2015, Hermes publishes its second Sustainability Report. S. Christiansen: Developments are just as pacey as they have been. longer a national or European issue, it really is global. And this means ness and a clear investment in the future.
What for you was the greatest progress made in the last two years? This applies to the retail trade as well as to logistics. Hermes has that today we are managing global supply chains which ensure that
made crucial investments in the right direction. At the same time every product is available everywhere and at any time. It is logistics
F. Rausch: Generally speaking, 2013 and 2104 saw us grow signifi- though, demands are growing on the company: speed and custom- that guarantees that this can happen. We often forget this.
cantly on the market. This is the key prerequisite for new invest- ised delivery options are one thing, but many customers are also
ment. With our ‘Always Better’ pledge, we have built on our service looking for sustainable solutions for transport and the environment.
portfolio and aim to improve customer contact even more. For us, The aim is to hand over 100% of deliveries at the first visit. Essentially,
there is no question that this growth will go hand in hand with it’s all about efficiency – at the end of the day, we all profit from
greater social responsibility and we have therefore consolidated our that, even the environment.
commitments. This is shown in measures we have undertaken in cli-
mate and environmental protection – in London, for example, par- What is also new is the Hermes Supervisory Board. Why was it
cels have been delivered using electro-vehicles since 2014 – as well felt we needed it, and why now?
as in more social matters, where we have enlarged the certification
programme of working conditions at our contracting partners. F. Rausch: It’s quite easy really, Given the growth we have achieved,
This is the sort of progress that the German consumer watchdog the company is now so big that he law requires us to have a Super-
Stiftung Warentest independently attested to Hermes in 2014, visory Board – and that is completely acceptable for us. The Hermes
when they praised our performance in both service as well as in Supervisory Board is part of the umbrella organisation of the Hermes
CSR. I think this is some achievement. But we’re not resting on our Group and, with its equal representation, had its constituting meet-
laurels. We know that there is still a lot of work to do.
12 Hermes Sustainability Report 2015 Management & Dialogue 13
Amanda Peng,
Top-class Service
Implemented Sustainably
Assistant Compliance Manager at Hermes-
OTTO International, checks the quality,
social and environmental standards in
Chinese production sites Hermes draws its
good from together with her colleague,
Ben Wang.
According to a recent study, roughly 80% of internet users in Germany regularly shop online.* And they are doing
this increasingly across borders. Today, e-commerce is a global reality 24 hours a day. This is due not least to legisla-
tion, such as the new EU consumer rights directive. In the course of this, logistics is developing into a key industry in
the digital age. Expectations are high: customers want logistics services to be speedy, reliable and flexible, and of
course available worldwide – and, best of all, should cost nothing. At the same time, retail customers are making
more conscious purchases and asking for specific information, such as about transport channels and fair working
conditions. We have to measure ourselves against such requirements which the market is demanding of us.
In our own interest, but also in those of our customers, we want to become better. In order to satisfy these demands
we are continually building on our services, making them more efficient. And we are actively involving our customers
and clients in this process: by expanding our mobile services or providing a carbon footprint, we are jointly contrib-
uting to greater transparency along the global supply chain. At the same time we are looking to contribute to a
public awareness of the role and position of logistics in retail and trade. Through dialogue and discussion we are
hoping to promote the development of sustainable logistics.
* German Federal Office of Statistics: Number of the week. destatis.de, 2.9.2014.
Our auditor, Amanda Peng, interviews an employee at a textile Ms Peng also talks to the factory management on issues of
factory in the Jiangsu province (China) on working conditions employment protection and safety at work.
and processes.
14 Hermes Sustainability Report 2015 Service & Clients 15Transparent, Efficient, Sustainable
“We have been working with Hermes
As a learning organisation, we are constantly on the look out for ways to develop.
since 2011 and amongst other things
And service is central to this concept: we are always keen to make our
are committed within the partnership
integrated portfolio extending along global supply chains more efficient, creating
to improving air quality and support-
transparency and working ever closer with partners and customers. All of
ing low-pollution mobility in Hamburg.
which delivers a value added, both for our customers and the environment.
As a distance seller and retailer, high
1
dependence on transport and the
CO2 monitoring for customers ers a chance to offset their CO2 emissions
If you are looking to improve your CO2 bal- through their participation in climate pro- resultant CO2 emissions are unavoid-
ance, you need two things: transparency in tection projects or the purchasing of emis- able. This makes it all the more
capturing CO2 emissions and proven exper- sions certificates. A first project of this type
tise in implementing measures aimed at was implemented by Hermes Einrichtungs To within hour important for us to work alongside
improving the situation. As part of its WE DO! Service (HES) in cooperation with the ship- Hermes informs the Hermes as a shipping service provider
initiative, Hermes provides its customers per Kaiser + Kraft.
with both. In addition, since 2011, we have recipient when their that incorporates sustainability as an
also been providing our customers with a More service, less emissions parcel will be integral part of its corporate philoso-
free statement of their individual CO2 emis- Each failed delivery attempt results in approx-
sions for goods transported by Hermes. This imately 400 g of CO2. Thus, the more we delivered. phy and which strives constantly to
statement is based on specific real data avoid these unnecessary journeys, the more keep its ecological footprint as small
such as the length of a delivery round and we protect the environment and the more
the load, and is thus able to indicate CO2 we can increase customer satisfaction. Con- Another example is ‘Hermes request delivery’. as possible.” «
emissions in a detailed manner per round or sequently an increasing number of custom- This offers four new service modules, that link
shipment. In a monthly status report, the ers are looking to have customisable ship- our customers and their customers even Andreas Bartmann, CEO,
Service Compass, our customers receive a ping processes to ensure that their shipment better: Globetrotter Ausrüstung GmbH
regular concise overview of the CO2 emis- reaches them directly, whether at home, in •• Request time band: Binding delivery
sions resulting from their transport using the workplace or even where they are on holi- within a freely selectable 3-hour time Mobile parcel services help our customers to integrate the sending of parcels into their everyday life.
Hermes. Based on this report, we can pro- day. With the aim of permanently improv- band
vide sound advice to our customers on their ing customer focus, Hermes instigated the •• Request delivery day: Binding delivery on
optimum transport mix, and jointly arrange Always Better pledge in 2014. This entails new a freely selectable weekday •• Request drop point: Delivery to a safe It is much easier for customers to receive As this type of parcel shipment focuses
more efficient transport routes. In the future services for parcel deliveries. First amongst •• Request package shop: Delivery to one drop location at the delivery address their parcels on work-free days, and this in individual delivery traffic at a central Parcel-
we are planning to extend our CO2 reporting these is the Hermes App, which immediately of over 14,000 Hermes ParcelShops in turn saves unnecessary return visits. Shop, it is particularly environmentally-
to include other pollutants such as soot par- dispenses with the need for delivery notes Germany The aim of our service offensive: To deliver friendly. In addition, delivery of parcels to
ticulates. Also, our aim is to offer our custom- and facilitates paper-free parcel delivery. 100% of our shipments at the first delivery The Hermes ParcelShop as an ParcelShops is particularly convenient for
attempt. Everyone involved will profit from alternative customers because shops such as news-
this, both customers and recipients, our Since 2000, the Hermes ParcelShop has agents, bakeries or petrol stations are highly
organisation and of course the environ- been combining customer proximity with flexible, often staying open for long hours.
ment. Since autumn 2014, the parcel notifi- sustainable service. A reason why our net- In large German cities, our customers are
cation service has been contributing to this work has grown constantly over the years generally less than 600 metres away from
Courier clothing produced under fair conditions goal. Thanks to it, the customer discovers and has established itself as the alternative the closest shop. The outcome is that Par-
Since 2013 Hermes has been equipping its 10,500 couriers in Germany the day before delivery, when, to within an delivery address for distance selling. Today celShops can be conveniently accessed by
with a uniform made from a textile mix that includes cotton grown hour, their shipment will be delivered any- with more than 36,000 pick-up/drop off cyclists and pedestrians alike. Thanks to our
under highly stringent environmental and social conditions. The cotton where within Germany. The date and time points in Europe, and more than 14,000 in carbon footprint calculations, we know that
is sourced through the initiative “Cotton made in Africa (CmiA)”, which of an order can be seen in the online track- Germany, we maintain the largest national ParcelShop deliveries result in up to 30% less
helps African smallholders to improve their living conditions by their ing service and are integrated in the Hermes network of collection points in private parcel CO2 being generated than results from deliv-
own efforts. A training programme encourages them to learn how to App. Hermes UK also has an attractive offer shipment. eries to the front door. Moreover, some of
farm in an efficient and environmentally responsible manner. A life- for both customers and the environment, our clients are encouraging their customers
cycle-assessment revealed that the production of CmiA cotton results delivering parcels on Sundays – a service it to have deliveries sent to a Hermes Parcel-
in 40% less greenhouse gas emissions than with conventional cotton. has been providing since 2014. Shop thus saving CO2.
Therefore not only does the initiative contribute to fairer employment,
it also makes a considerable contribution to climate protection.
16 Hermes Sustainability Report 2015 Service & Clients 17In the baby’s, children’s and maternity wear segment, sustain-
able service is a clear competitive factor. Our customers rightly
expect that the transportation of the products is just as sus-
tainable as their production. So we are pleased to know that in
ities are supported by specially trained Prize-winning service
Hermes we have a logistics partner at our side that shares our
management. Moreover the newly-founded Our service has also received multiple social and ecological values. This common sustainable approach
Astra Supply Chain Services Ltd. ensures, awards from external, independent sources
thanks to its environmental and social audits, during the reporting period. In 2014, the
was one of the factors in choosing to work with Hermes.
that, as a minimum, nationally applicable largest service ranking survey of the daily
Andreas Schröder, CEO of Vertbaudet Deutschland GmbH
standards are complied with in production newspaper Die Welt and the consultants
facilities. ServiceValue selected Hermes as the best
German Parcel Service Provider for the third
Feedback exchange with our customers time. The award of “Service Champion” was
We find out about our customers’ require- based on the positive assessments of our
ments by means of regular surveys. Using customers. Once again HES received top
The Hermes ParcelShop: the original amongst the parcel shops, an institution that is not only CO2-efficient, the “Customer contact monitor” we regu- marks from its customers: in 2014 the deliv-
but is also often a lively meeting point larly ask our parcel customers in Germany ery of furniture and large appliances by Her- Of the 1,700 customers surveyed, 96% said category. The independent institute men-
about their willingness to recommend Hermes mes was tested for the fourth time by TÜV they would recommend our 2-man handling tioned explicitly how transparent and coop-
to others. The results of the latest survey: Saarland and awarded the top marks. service without any reservation. erative Hermes was in respect of its
Data security for our customers Customer product standards In financial year 2014, 68% of our research. During the process, which lasted
Thanks to intelligent IT solutions, we can We have also set ourselves the target of customers were happy to do so. Best-in-class by Stiftung Warentest several months, we welcomed the auditors
offer our customers more transparency plus combining high service with social and envi- Following on from 2004 and 2010 Hermes to our sites and depots, providing insights
59%
the latest updates on their orders. These ronmental responsibility outside Europe and In addition we instigated studies on relevant was awarded best-in-class for the third time into all company sectors. However we are
digital platforms help us manage large globally. Hermes-OTTO International (H-OI) industry topics. In 2014 we asked 200 logis- in a row by the German consumer watchdog not resting on our laurels, rather are using
quantities of data on a day-to-day basis, procures products from global markets. As tics decision-makers from wholesale and Stiftung Warentest. In the parcel service them to provide pointers. They offer us valu-
including personal customer data, which we an international sourcing organisation, the manufacturing industries about how rele- test (Issue 12/2014) Hermes achieved best able information about where we can
are bound to protect. And the results speak company has comprehensive knowledge in vant green logistics was for their company. marks both in the category “Delivery reli- improve in the areas of environmental pro-
for themselves: the positive finding is that in the areas of quality, social and environmen- Around 40% indicated that sustainability ability and timeliness” and in the category tection and employment provision.
the current reporting period, no infringe- tal standards, which is available to our cus- was important or very important. Moreover “Convenience of ordering, payment and
ments of the data protection law have been tomers in the main procurement markets, 59% wanted their logistics service provider of decision-makers in tracking”. Overall, Hermes shared top spot
reported nor have any cases been brought
to court.
primarily in Asia. Alongside the usual quality
controls in the production facilities, H-OI
to offer professional and comprehensive CO2
reduction solutions. These findings basically
retailing call for logistics with another provider. A second parallel test
inspected the working conditions and the
therefore also typically offers product final confirm that sustainability has to remain a service providers to offer environmental protection of companies in
acceptance in its own inspection centres.
These ensure expert goods inspection under
central aspect of our service strategy.
solutions to cut CO2. the parcel industry. Here, Hermes secured
second spot with the top marks of all tested
optimum conditions. The staff in these facil- parcel services in the “Environmental policy”
Safe2Go: reusable packaging for bulky items
To ensure that the returns of white goods are safer and
environmentally friendlier, Hermes Einrichtungs Service
has been using the patented packaging system Safe2Go
since the beginning of 2015 This can be used to pack
household appliances such as fridges and washing
machines ready for return, thereby effectively minimising Hermes is Service Champion:
damage. When it comes to avoiding damage, the reus- In terms of service, 2014 saw
able packaging has clear advantages over the standard Hermes achieve top spot for
use of bubble wrap, corrugated board and other dispos- In 2014, Hermes was once the third time in a row in a
able materials – and is significantly environmentally again chosen as best-in-class ranking of nine parcel deliv-
friendlier. A small service with a big impact! by Stiftung Warentest. ery companies.
18 Hermes Sustainability Report 2015 Service & Clients 19You can also read
