Global Compact International Yearbook Ausgabe 2011

Best Practice
Environment
Otto Group
Climate
Protection in
the Otto Group:
Efficiency First
By Andreas Streubig and Daniel Hußmann
The Otto Group has set its own climate
protection targets independently of political
objectives. The multichannel retail
group’s Climate Protection Strategy goes
clearly beyond the current climate goals
established by political bodies and industry’s
own commitments. The Group’s
Strategy targets a much-needed, drastic
reduction in greenhouse gas emissions,
while also providing a key tool in establishing
sustainable competitiveness and
maximizing independence from future
energy-cost increases.
The Otto Group’s Climate Protection
Strategy
Climate protection at facilities: Hermes’
main site at Hanover-Langenhagen
is certified as a sustainable building.
The increasing number of hurricanes, forest fires, and severe floods are just some of the
examples of devastating natural events that can be attributed to climate change. Cooperating
to mitigate climate change has never been more urgent. Economic considerations in
the effort to cut greenhouse gas emissions are becoming ever-more important: In the Otto
Group’s Climate Protection Strategy too, economic aspects play a key role.
The Group’s declared target is a reduction
in relative freight, facility, and mobilityrelated
CO 2
emissions by 50 percent by
2020 and 70 percent by 2040. All Otto
Group companies with an annual turnover
of €50 million or more are included
in this commitment.
The Group began to implement its
Strategy at the end of 2007. Eighteen
German companies were initially included
and the financial year 2006/07
was agreed as the benchmark year for
emission reduction targets. In that period,
German Group companies emitted
some 308,000 tons of CO 2
– 62 percent
through freight activities, 35 percent
by facilities, and 3 percent through
employee mobility. From financial year
2011/12 onwards, international Otto
Group companies will also be integrated
in the Group’s Climate Strategy, with a
total of over 40 Otto Group companies
from 10 countries in Europe, the United
States, and Japan committing.
In the implementation of the
Group’s climate protection targets, increasing
energy efficiency is a priority,
as it is currently the most effective
approach. In addition, renewable energy
sources are also being harnessed,
and thirdly, CO 2
emissions are being
compensated through certified climateprotection
measures.
Implementation in freight, facilities,
and mobility
The Group is implementing its Strategy
through a wide variety of measures. For
instance, large quantities of CO 2
emissions
are to be eliminated in its freight
activities by an intelligent shifting of air
to sea cargo. On the roads, the Group’s
new, more fuel-efficient vehicles and
alternative power plants are also helping
reduce CO 2
output.
Group companies’ facilities also offer
great potential for increased energy
efficiency. With the aid of a benchmark-
ing system, we are pinpointing and implementing
the most efficient measures
for our buildings. Complementing such
increases in energy efficiency, Group
companies are intensifying their use of
renewable energies at facilities, for example
solar power and renewable fuels.
Despite its lower share of overall
CO 2
emissions, the area of employee
mobility plays a key role in employees’
awareness of climate protection. Our
Company Car Guideline in effect from
January 1, 2010, set an emissions ceiling
of 200 g CO 2
/km and was a hot discussion
topic among Group staff from the
very beginning. What is more, we will
progressively lower this ceiling in the
future.
Where do we currently stand?
Since the beginning in 2007, the Group
has lowered its emissions by some percentage
points. Some CO 2
reduction
measures will first show benefits in the
medium term, for example following
building refits. At the same time, challenges
repeatedly crop up that demand
a rapid business reaction – for instance,
a sharp turnover increase meant a high
quantity of repeat orders placed with our
Asian suppliers, and thus an increased
need for freight.
Some measures are already showing
a positive effect on our CO 2
balance: According
to our forecasts, in the 2009/10
financial year, we already cut around
5,000 tons of CO 2
in our warehouse-based
distribution. This is largely attributable
to Hermes, the freight-forwarder wholly
owned by the Otto Group. Among others,
Hermes provides OTTO, bonprix, Baur,
and SportScheck with parcel distribution
services. With its WE DO! climate
and environmental protection strategy,
Hermes makes a significant contribution
toward the Otto Group’s climate
protection targets.
Climate protection at Hermes –
WE DO!
Hermes has a long history of working
toward climate protection. Thanks to
the company’s continuous efforts, it
has already reduced its CO 2
emissions
by 40 percent per delivery, based on
1994 figures. Since 2010, Hermes’ WE
DO! strategy has encompassed all the
company’s climate, environmental, and
nature protection measures. The core of
WE DO! is a CO 2
master plan targeting an
annual 3.5 percent reduction at facilities
and 2 percent in freight activities. To
implement the plan in its freight operations,
the company operates a modern
fleet with vehicles that meet the stringent
Euro 4 and Euro 5 emissions norms
and that have an average age of just 18
months. Besides increasing its energy
efficiency, Hermes also participates in
research projects on alternative automotive
systems: For instance, as part of its research
cooperation with Mercedes-Benz,
Hermes currently operates 10 electric
Vito E-CELL Transporters in its everyday
parcel distribution activities.
Hermes also includes its business
partners in its WE DO! strategy. A fundamental
element of this is a CO 2
controlling
system that is unique in the sector.
This tool gives customers a cost-free
indication of the CO 2
emissions that
their delivery will create, thus enabling
them to improve their own CO 2
balance.
What is more, they are also able to have
their parcels delivered bearing the WE
DO! label at no extra charge.
Dr. Philip Nölling, Commercial
Managing Director at Hermes Logistics
Group Germany, emphasizes the group’s
commitment to sustainability through its
WE DO! strategy: “In line with the Principles
of the UN Global Compact, Hermes
has always stood for a sustainable logistics
model that conserves resources and
keeps its impact on people and nature
firmly in focus. WE DO! adds value for
our customers and makes a substantial
contribution to climate protection.”
Electrical Vito E-CELL Transporter
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