tnt express services uk & ireland corporate responsibility...

TNT Express Services UK & Ireland

Corporate Responsibility Report 2011

TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | Contents

Introduction

1. TNT&CorporateResponsibility2. CorporateResponsibilityGovernance

3. TNTEmployees3.1 Health&Safety3.2 InvestorsInPeople3.3 EmployeeEngagement

4. TNTandtheEnvironment4.1 EnvironmentalImpact4.2 ISO14001Certification4.3 CarbonManagement4.4 CareforourCustomers4.5 EnvironmentalResults

5. VoluntaryContributionstoSociety5.1 WoodenSpoon5.2 WorldFoodProgramme5.3 OtherCharitableInitiatives

Summary

Contents

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TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | Introduction

Introduction

TNT is committed to managing its business in a socially responsible manner – one that seeks to make a positive contribution to the communities in which it works and yet has a minimum impact on the environment in which it operates.

Our Corporate Responsibility strategy continues to deliver value for our customers, employees, partners and investors.

This report summarises the progress TNT has made in the four key strands of its CR activity.

The positive, can-do attitude that underpins the way TNT approaches its work is reflected in its CR activity.

The company resolutely believes that it can make a difference.

This report supports that belief, demonstrating how the company and its employees bring its CR strategy to life.

Care for employees

Care for the environment

Care for our customers

Care for the society in which we all live and work – nationally and globally

Alistair Cochrane Managing Director, TNT Express Services UK & Ireland

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TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | TNT & Corporate Responsibility

TNT & Corporate Responsibility

CR Strategy

1.

TNTbelievesthemanagementofcorporateresponsibility(CR)isnotonlytherightthingtodo,italsomakesgoodbusinesssense.TNTaimstoachievestandardsofresponsiblecareacrossanumberofkeyareasincluding:customers,healthandsafety,theenvironment,employeesandthecommunityinwhichweoperate.

Asacompanywecareforouremployeesbycreatingaworkplacewhereadiversesetofpeopleareengaged,rewardedcompetitively,workinasafeplace,aretreatedequally,canspeakfreelyandareresponsibleandaccountablefortheirownactions.

TNT’sCRstrategyisfoundedonfiveinternationallyrecognisedmanagementstandardsforworkplacesafety(OHSAS18001),socialresponsibility(SA8000),personalgrowthofemployees(InvestorsinPeople),environmentalmanagement(ISO14001),andoperationalexcellence(ISO9001).

TNT’sfourpillarsofCRStrategyare;employees,theenvironment,otherstakeholderssuchascustomersandsubcontractorsaswellasvoluntarycontributionstosociety.

Sue Barnes, Director of HR,TNT Express Services UK & Ireland

“As an organisation it is our people who enable us to continually exceed our customers’ expectations, working together to ensure we operate in an ethical and responsible way”

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Corporate Responsibility Governance

2.

Corporate responsibility is an integral part of TNT’s strategy and daily operations. Alistair Cochrane, Managing Director, TNT Express Services UK & Ireland is responsible for implementing TNT’s corporate responsibility policies and the CR performance of the UK & Ireland business unit.

TNT’s CR governance structure is built upon a solid foundation of five internationally-recognised standards that have been implemented through TNT policies and procedures. This framework is established primarily around employees, the environment, voluntary contributions to society and supported by internal communications, CR reporting, HR and integrity.

TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | Corporate Responsibility Governance

TNT continues to integrate these standards into its supply chain and benchmark the company’s performance against the Dow Jones Sustainability Index (DJSI). The company’s consistently high score over the last three years within the Industrial Products & Services super sector of the DJSI demonstrates that TNT combines business success with an ethical and responsible approach.

2009 2010 2011

Total (%) 95 92 93

Economic (%) 98 94 93

Environmental (%) 92 96 94

Social (%) 96 88 93

FIGURE 1

TNTDowJonesSustainabilityIndexScore

ThefivestandardswhichunderpinourCRstrategyare:

ISO9001Quality

SA8000Social

Accountability

InvestorsinPeople

EmployeeTraining&Development

OHSAS18001Occupational

Health&Safety

ISO14001Environment

TNT’s performance in the DJSI is illustrated in figure 1 below:

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TNT Employees3.

TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | TNT Employees

Health and SafetyTNTemployeesareitsmostimportantassetandthecompanyinvestsgreatefforttoensureasafeworkingenvironment.AssuchemployeehealthandsafetyisoneofthetopprioritiesinTNT’sCRstrategy.

TNTUK&Irelandoperatesalmost3,187vehiclesfrom90mainlocationsanddeliversmorethan150millionitemsayear.TNT’ssafetyprogrammefocusesonbothworkplaceandroadsafety.ThisissupportedbyacomprehensivemanagementsystemwhichsetscompanystandardsforallaspectsofouroperationsandincludestheTNTRoadSafetyCharter,thecompany’scommitmenttominimisingroadtrafficaccidents.TNTdriversthroughtheTNTDriversRoadSafetyCharterarealsoencouragedto“signup”andcommittodrivingsafelyintheirdaytodaywork.

TNTdriversarefantasticambassadorsforthecompanyandmakemorethan21millioncollectionanddeliverystopseveryyearsometimesinverydifficultcircumstances.TNT’sDriverRecognitionSchemepraisestheirsafedrivingskillsand1,228driverswererewardedfortheircollisionfreeperformance.

In addition the company has introduced a variety of initiatives throughout the last five years to ensure that;

• TNT managers, drivers and all other employees have the skills and knowledge to operate safely.

• Best practice vehicle specification and maintenance is adopted.

• TNT employees are engaged in the creation of a positive safety culture throughout the business.

• Safety performance is reviewed at local, regional and board level to ensure continuous improvement.

• Safety is actively promoted within the communities in which TNT operates.

• Exemplary Employee Safety Performance is recognised through the annual TNT Operational Excellence competition

3.1

TNT drivers being put through their paces in a visual road safety test using 360-degree footage of different traffic conditions.

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TNT Employees3.

TNThasreceivedanumberofaccoladesfollowingindependentexternalverificationofthecompany’shealthandsafetyperformance:

TNT UK & Ireland’s key safety performance measures are illustrated in figures 2 and 3 below;

Investors in PeopleInvestors in People (IiP) sets minimum standards for continuous operational performance through management and employee development. Living up to the IiP standard ensures TNT employees receive the necessary development opportunities they need to be successful and thus create value for the business. This manifests itself through improved and effective communication, teamwork and individual coaching. TNT people attend supplementary and directed development and training which allows them to improve existing skill gaps as well as expanding their potential and professional horizons. Each year performance reviews are held with all employees and an annual review of people’s potential is conducted as part of the talent and succession process. This provides focus on their personal development and contribution to the continued success of the business.

TNT UK & Ireland was first awarded the IiP standard in 1994 retaining this recognition ever since and has also been an IiP Champion since 2004. The company’s other external training accolades include:

10 National Training Awards

7 Motor Transport Training Awards

2 IFW Freighting Industry Training Awards

2008 – Institute of Leadership & Management “Employer of the Year”

Employee EngagementThe UK & Ireland again participated in TNT’s global VOICE engagement survey with a 75% response rate. Significant action plans – nationally and locally are being put in place as a result of the findings.

The team of VOICE Champions – individuals who give voice to their colleagues throughout the business – has grown to more than 170. The Champions, supported by People Development Advisors, facilitate and collate the thoughts and ideas of colleagues at every level of the business, acting as a conduit in a two-way communication process with supervisors, line managers and senior management.

Regular regional workshops for the Champions will continue throughout 2012, providing an arena for sharing knowledge, ideas and experiences to help develop best practices across the business.

During 2011 and continuing through 2012, senior managers, including Managing Director Alistair Cochrane, HR Director Sue Barnes and Chairman of the Board John Downing, visited each of TNT’s locations throughout the UK and Ireland. The “back-to-the-floor” visits whereby information was shared with all employees proved popular and successful.

2009 2010 2011

Target 4.11 4.11 4.14

Actual 4.18 4.09 3.69

FIGURE 2

TNTLostTimeAccidentRateper100Employees

2009 2010 2011

Target 1.20 1.10 1.06

Actual 1.16 1.04 0.92

FIGURE 3

TNTAvoidableCollisionRateper100,000km

2002to2004TNT became the first express delivery company to receive and maintain the British Safety Council 5 Star Accreditation.

TNT awarded 16 British Safety Council Swords of Honour in recognition of world

class safety performance.2003to2004

TNT awarded and maintained certification to the OHSAS 18001 (Health & Safety) Standard.

2005to2011

“Listening and acting upon the feedback and ideas raised through our teams we continue to improve our business, our working environment and the engagement of our people.”

3.2

3.3

TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | TNT Employees

2007TNT receives the Motor Transport Safety In Operation Award – the industry Oscar.

Sue Barnes, Director of HR,TNT Express Services UK & Ireland

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Environmental ImpactTheimpactofTNT’soperationalactivitiesontheenvironmentisoneofthekeydriversforitscorporateresponsibilitystrategy.TNTrecognisesthatthetransportindustrygeneratesnearlyonefifthoftheworld’scarbondioxide(CO2)emissions.TNTinevitablycontributestothatoutputandthereforethecompanyiscommittedtoreducingitscarbonfootprint.

TNTearnedfreshrecognitionforitsprogressivecarbonfootprintreductionprogrammewhenitwasawardedtheCarbonTrustStandard.

TheTrustrecognisesorganisationsforrealcarbonreduction.Basedonarigorous,independentassessment,itcertifiesthatorganisationshavemeasured,managedandreducedtheircarbonemissionsacrosstheirownoperations,andarecommittedtoreducingthemyearonyear.

HarryMorrison,GeneralManageroftheCarbonTrustStandardCompany,said:“WecongratulateTNTintheUKandIrelandontheirachievementoftheCarbonTrustStandard.

“ItallowsTNTtotalkwithintegrityabouttheseriousandcrediblestepsithastakentoreduceitscarbonemissions.Italsoprovidesthecompanywithauditedemissionsdatatheyneedtobuildtheappropriatecarbonreductionstrategiesanddeliverontheirongoingcarboncommitment.”

NeilGriffiths,DirectorofHealthSafetyandEnvironmentalforTNTExpressServicesUK&Ireland,said:“WearedelightedtoreceivecertificationwiththeCarbonTrustStandard,whichfurtherconfirmsourgreencredentials.

“TheCarbonTrustStandardvalidatesandrecognisesourworktoreduceTNT’senvironmentalimpact,andthefinancialandcarbonsavingsmadebyoperationsintheUKandIreland.Italsoprovestoourstakeholdersthatwehavealong-termcommitmenttocontinuetocutourcarbonfootprint.”

TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | TNT and the Environment

4.1

4. TNT and the Environment

4.2 ISO 14001 CertificationTNT’senvironmentalimpactsaremonitoredcloselythroughitsEnvironmentalManagementSystemwhichisthebasisformanagingthecompany’senvironmentalperformance.TNThasadoptedtheinternationalstandardISO14001forthispurpose.Thestandardprovidesaframeworkforidentifyingandmanagingenvironmentalrisksandtheirimpactandprovidesaprocessforcontinuouslyimprovingenvironmentalperformance.

WithinTNTUK&IrelandtheenvironmentalmanagementsystemisexternallyassessedeveryyearbyLloydsRegisterQualityAssurance(LRQA).TNTlocationsupanddownthecountryareinvolvedinthecriticalexaminationprocess,withassessorsconductingchecksonthecompany’senvironmentalmanagementactivities.Theseincludewastereductionandrecycling,fuelefficiency,environmentaltraining,pollutioncontrolandenergyreduction.

TNTUK&IrelandgainedcertificationagainsttheISO14001Standardatthefirstattemptin2007andhasretainediteversince.

TNTisthefirstexpressandlogisticsoperatortoachievethiscertificationonacompany-widebasis,andthefirsttoholdbothISO14001andOHSAS18001(Health&Safety)standardsatthesametime.

“Achieving 40% improvement in our CO2 efficiency between 2007-2020 lies at the heart of our strategic environmental goal… and we’re on track to do it.”

Neil Griffiths, Director of Health Safety & Environmental

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4.3

TNT and the Environment


4.

Carbon ManagementTNT acknowledges its influence on climate change and the improvement of its CO2 efficiency is therefore an important focal point of TNT’s environment pillar. Moreover, the transition to a low carbon economy is inevitable and gaining momentum. This reality leads to new demands on TNT from various stakeholders, including governments, customers, investors and employees, with stricter regulations and higher expectations.

Customers are actively reducing CO2 in their supply chain,

which implies that CO2 increasingly influences their purchase decisions. Transport suppliers that operate carbon efficiently are expected to gain market share. Key stakeholders of TNT are increasingly focused on climate change risk management. By managing CO2 performance TNT is well positioned to meet key stakeholders’ expectations.

Managing CO2 has become more important and is required if TNT is to stay ahead of tightening regulations in the future and reduce dependency on increasingly expensive fossil fuels. Carbon efficiency clearly goes beyond ensuring the licence to operate. It is increasingly becoming a differentiator, a key success factor for TNT that creates opportunities for the organisation. Such benefits have already proved successful by the provision of preferred access for electric vehicles to inner-city areas.

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Care for our CustomersTNT’s Customer Promise – a series of pledges by the company to its customers – continues to underpin everything TNT does, putting the customer at the heart of the business.

The Customer Promise continues to be a key differentiator within the express delivery industry and distinguishes TNT from its competitors.

Managing Director, Alistair Cochrane, said: “The Customer Promise remains our commitment to our customers that we’re doing all we can to exceed their expectations at all times.

“Continuing to delight our customers is a key driver in striving to reach our goal of becoming the most admired express delivery on the world.”

Recognising the importance of the company’s environmental performance, TNT has a ‘promise’ dedicated to further enhancing its ‘green’ credentials – ‘We promise we know what planet we’re on.’

The undertaking to customers states: ‘We’re a transport company. We recognise that we are part of the problem of carbon emissions and climate change, so we must be part of the solution. That’s why we invest so much time, money and effort in alternative fuels, electric vehicles, green offices and depots, and generally working cleaner.”

TNT and the Environment

2009 2010 2011

Target 87.0 84.5 73.0 Actual 84.69 74.05 72.03

FIGURE 4

TNTCO2Emissions(ktonnes)

Note:TNTreportscarbonemissionsinaccordancewiththeaccountingandreportingstandardsdefinedbytheGreenHouseGasProtocol(GHGProtocol)andisexternallyverifiedbyTNT’sauditorsPricewaterhouseCoopers.

2009 2010 2011Target 50% 85% 90%

Actual 53% 88% 89%

FIGURE 5

TNTElectricityConsumptionfromSustainableSources

2009 2010 2011Target 6,000 5,500 5,000

Actual 5,640 5,348 4,989

FIGURE 6

TNTWasteRecycled(tonnes)


4.

4.5Environmental ResultsTNT UK & Ireland’s environmental performance is illustrated in Figures 4 to 6 below;

4.4

Keeping a promise – TNT’s Customer Promise charter addresses the need for the company to minimise its impact on the environment

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Stirring achievement - TNT passed the £3m mark in money it has donated to principal charity Wooden Spoon and made the historic announcement during the culmination of the TNT Great British Bike Ride at Twickenham where TNT Managing Director Alistair Cochrane (right) presented a symbolic rugby ball to Wooden Spoon Chairman Steuart Howie

5.

Wooden SpoonTNT continues to be the largest single benefactor of the children’s charity, Wooden Spoon. Generous of thought and deed, the company’s employees have generated well in excess of £3million since 1997 and have had a profoundly positive impact on the lives of tens of thousands of youngsters.

Spoon is TNT’s principal charity with 98% of all funds going directly to frontline projects to benefit the disabled, sick and disadvantaged children. A volunteer-based charity with its origins entrenched in the sport of rugby, Spoon provides great networking and business development opportunities for TNT.

It is not just about raising cash. As well as fundraising, TNT employees are encouraged to witness how the money they raise is put to good use via the ‘Seeing is Believing’ (SiB) programme – an initiative where they take time out of their working day to visit children at Spoon-supported projects.

Voluntary Contributions to Society

TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | Voluntary Contributions to Society

“The communities in which TNT works are important to us both within the UK & Ireland and globally. Despite continued challenging times, TNT passed the astonishing £3million mark in donations to our principal charity Wooden Spoon.”

Launched in 2003, more than 2,600 employees have experienced a SiB visit, forging a stronger bond with the charity and ‘making it personal’. Where employees are unable to get to SiB projects because of geographical limitations, Spoon comes to them through the Spoon on Site visits.

Fund raising among TNT employees goes far beyond the usual efforts with TNT people participating in the Virgin London Marathon, End2End Challenge – a bicycle ride from John O’Groats to Land’s End, the River Deep Mountain High Challenge, wherein TNT and some of its customers are traversing the Lake District by bike, canoe and on foot – and the TNT Great British Bike Ride (which the company also sponsors).

In the past, the innovation and determination of TNT employees has come to the fore with an audacious attempt to swim the English Channel.areas around the globe.

hunger bringing it to the attention of Governments, leaders

5.1

Alistair Cochrane, Managing Director, TNT Services UK & Ireland

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5.

Making a difference – TNT’s partnership with the World Food Programme helps feed and educate thousands of malnourished children in Tanzania

World Food ProgrammeAs the largest humanitarian aid agency on the planet, the World Food Programme provides aid to an average of 90million people in over 80 countries. TNT, as a global service provider, immediately recognised the synergies with WFP and saw the rich potential of exploiting skills to help the worldwide community in which we operate.

The support the company offers comes in cash and logistics.

The remarkable partnership stretches back to 2002 when the company adopted the title ‘Moving the World’ – a very apt description given TNT’s knowledge, skills and resources which are used to help the work of the WFP, including the delivery of food and supplies to disaster areas around the globe.

TNT’s expertise and resources, aligned to the requirements of the WFP , enable the company to engage with its people in a programme that ultimately facilitates and encourages developing nations to become more self-sustaining. As well as practical support, TNT also work in tandem with the WFP in raising awareness of global hunger bringing it to the attention of Governments, leaders of industry and the public.

TNT’s annual fundraising focuses on a specifically themed ‘Fight Hunger Week’ – an initiative that encourages employees to participate, raise money for the WFP and boost awareness and understanding via media opportunities.

In 2011 the UK business donated £35,000 to WFP. It costs just 7p-per-day to feed and educate a child in Tanzania – that’s just £25-a-year to keep a malnourished youngster alive and receptive to new learning.

Activity around Fight Hunger week centred on a top UK chef preparing a less than typical meal using only the bare ingredients available to communities in Africa.

“I know how vital these funds can be and I am enormously proud that our people continue to show their never ending support for such a worthy cause.”

5.2

Simon Harper, Director of Operations, TNT Express UK

Other fundraising activities have included a ‘virtual’ bike ride spanning the length of Britain, charity pool tournaments, netball competitions, pyjama days, quizzes, mega raffles, a weight-lifting challenge, head and chest shaving, leg waxing, car washing, throwing wet sponges at the boss, swear boxes and sponsored hikes.

“We have a strong corporate responsibility ethos and our support for the WFP is a key element in what we do. Our employees never cease to amaze me with their generosity and willingness to help those most in need in society,” said Simon Harper, Director of Operations, who has visited Tanzania to see at first hand the WFP work in Africa. “I know how vital these funds can be and I am enormously proud that our people continue to show their never ending support for such a worthy cause.” W

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Other Charitable InitiativesIn addition to the Wooden Spoon and the World Food Programme, TNT people support other selected charities and in 2011 surpassed all previous efforts in its support of Children in Need.

Every year TNT transforms one of its customer contact centres into a Children in Need call centre where employees from throughout the country give up their time to man the phones. Last year, at TNT’s Lount centre, the company took a record £176,000 in donations and pledges for the BBC charity .

TNT staff dedicate at least one day every year to Wear it Pink Day in aid of Breast Cancer Campaign for whom, in 2011, we raised more than £17,000. Employees also heavily support Comic Relief, Sport Relief and numerous other local charities.

“It never ceases to amaze me the lengths our people will go to in order to help those less fortunate than themselves.”

5.3

5.

Alistair Cochrane, MD, TNT Express services UK & Ireland

Psychic evening – Pictured, from left, Tarot reader Terry Holloway, Nicola Sime, Gemma Meecham, Lorna Ellison, Samantha Hearns.

Wear it Pink Day - Grant Cochrane, Global Operations Director TNT Special Services, flanked by pretty in pink fund raisers from the UK Corporate Development team Johanne Whitehouse, Georgina McLeod-Morgan, Caroline Moy and Jackie Brown who raised money for Breast Cancer Campaign

Arresting sight – Michelle Banton, Project Manager TNT Business Solutions, on the phones during Children in Need Night

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TNT Express Services UK & Ireland Corporate Responsibility Report | 2011 | Summary

Summary

Corporate Responsibility is an integral part of the TNT way of life – the company sees its approach as a key differentiator, something that sets it apart from its competitors both here in the UK and on a global scale.

The 2011 Corporate Responsibility Report addresses the important CR issues of the day here in the UK and Ireland and facilitates appropriate management behaviour which underpins the company’s wider business strategy.

TNT’s objective is to continually improve its management of social, environmental and economic issues that affect or influence its business and supply network. It believes the management of CR is not only the right thing to do – it also makes economic and environmental sense.

It sees CR as a core business consideration which is fundamental in delivering strategic and reputational benefits.

CR is an imperative in the modern business world – even more so in these economically challenging times – when customers and other stakeholders are seeking more and more from a service provider.

CR is a key factor when it comes to winning hearts and minds and building that most important of commercial platforms – trust.

A conscientious and diligent approach to CR enhances the trust levels placed in TNT by its various stakeholders.

This, and a desire to put customers at the very heart of the business, is what will continue to drive TNT in its vision to become “the most admired express delivery company in the world.”

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