Posti’s emissions

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As a logistics company, it is our task to transport goods. Therefore, our operations also produce a lot of emissions. We aim to get rid of these emissions.

We exist so that things meaningful to the recipient are transported to where they are needed, whether it is a parcel from an online store or massive machines transported within a company. All of this produces a large amount of emissions. In Finland alone, we travel a distance equal to six times around the world on every delivery day.

Our emission totaled approximately 293,000 tonnes of carbon dioxide equivalent (CO2e) in 2020. In accordance with the GHG Protocol, we divided them into three scopes.

Scope 1 emissions are those that we can directly influence through our own operations – such as emissions from our vehicles. Scope 2 emissions are indirect emissions from operations, such as the production of electricity and heat elsewhere. Scope 3 emissions are indirect, and they are divided into 15 different categories. Last year, we conducted a materiality assessment, based on which we chose the essential Scope 3 categories for reporting.

Our own emissions – i.e. those bound by our goal of zero emissions by 2030
– are divided between transport and premises, with the former accounting for two-thirds of the total. In all, our own emissions account for 24 percent of all emissions.

In 2020, our own emissions from vehicles were 48,173 tonnes of carbon dioxide equivalent, down approximately 13 percent year-on-year. For properties, the figure is 23,594, for electricity 7,612, and for heating 15,982. In all, our own emissions (Scope 1 & 2) amounted to 71,767 tonnes in 2020, which is approximately 14 percent less than the previous year (83,600 tonnes). We include all of our countries of operation in the emission figures.

The rest, 76 percent of all emissions, are produced as part of the value chain. Approximately one-half of this is comprised

of transport and delivery emissions by subcontractors. More than one-third (37%) is caused by the procurement of products and services, ICT services and hardware, and other personnel-related services. Eight percent is attributed to fuels in their non-use phase – meaning in their production, for example – and eight percent to commuting and business travel.

The emissions of sourcing, commuting, and others have been estimated through calculations using established factors. For example, the impact of increased teleworking during the COV- ID-19 pandemic on emissions from commuting is not visible in these figures. Of Posti’s approximately 21,000 employees, some 1,500 have mainly been working remotely in 2020.

Because transports and properties cause by far the majority of emissions, it is natural that attention is mainly paid to them in reducing emissions. During the year, Posti’s fleet covered around 102 million kilometers, and subcontractors approximately 119 million kilometers.

The two essential factors with impacts on emissions in transports are vehicles and how they are powered. Significant investments were made regarding both during 2020. Subcontractors are influenced through cooperation. One key challenge is the limited investment capability of small transport companies: small companies might not be able to obtain new lower-emission vehicles without subsidies or other assistance.

Using vehicles that run on renewable sources of energy instead of fossil fuels where possible can reduce emissions quickly. This is exactly what happened when we began to use renewable diesel in the vans we used for e-commerce de- liveries. This reduced their in-use carbon footprint by up to 90%, and we avoid emissions of 3.8 million kg CO2e each year. This is the equivalent of removing nearly 1,300 cars from traffic. Our own fleet covers roughly 40 percent of parcel deliveries.

Diesel vans can use renewable diesel almost as is, but in heavy good vehicles, for instance, investment in new fleet is a better solution. In the fall, we purchased the first LBG trucks that run on liquefied biogas. The ten LBG trucks will reduce the annual carbon dioxide emissions by 1,620 tonnes, which is the equivalent of driving approximately 8.6 million kilometers in a passenger car. This corresponds to driving around the world 215 times. The aim is to obtain more LBG trucks in the years to come. However, the fact that the refueling network is not yet nationwide places limitations on their use.

The share of all renewable fuels increased during last year from almost zero to close to 10 percent, and the share is expected to increase further because many of last year’s decisions only took effect in the second half of the year.

We have been using electricity extensively already for a long time; in mail delivery, 39 percent of all deliveries to private customers already use electricity: electric bi- cycles, electric scooters, electric delivery carts, and, of course, electric cars. Electric scooters covered almost 850,000 kilometers during 2020.

Two new big eCrafter electric vans and eight smaller Jumpy vans were obtained for parcel deliveries in late 2020, and the aim is to increase their procurement to a significant extent. For the time being, however, the bottleneck has been the availability and overall costs including charging infrastructure, for instance.

However, a kilometer that is never driven produces the least emissions. Therefore, we continuously develop route optimization, driving styles, and packaging – transporting air also causes unnecessary emissions.

Our properties from warehouses to distribution-fulfillment centers and service points – 480 units in all – consumed 95.5 GWh of electricity and 59 GWh of heat in all of our countries of operation combined last year. In 2020, the energy consumption of our properties in Finland had been reduced by 25 percent with regard to electricity and by 33 percent with regard to heating, using 2010 as the baseline.

All of the electricity we consume in Fin- land is renewable, and we also transitioned to using renewable electricity in the Aditro Logistics premises in Sweden starting from November 2020. We also produce some with solar power our- selves, but we are conducting a survey into using in-house production of electricity or heat more extensively. Some of the properties are ones in which we are lessees and cannot directly influence the use of energy in the premises.

Toward Zero Emissions

The goal of zero emissions by 2030 is ambitious, but we believe that it is achievable. Because, as was described in the previous chapter, the majority of these emissions are caused by transport, reducing these emissions also plays a major role in the available toolbox.

Changes in the fleet and source of propulsion provide the biggest leverage. If all ≥26tn trucks started using liquefied biogas (LBG) and all ≤3.5tn vans were changed into electric ones, this would reduce our own emissions by one-half. In practice, such a big change cannot be done quickly – due to the availability of vehicles and refueling network, among other factors.

Subcontractors’ emissions are reduced indirectly through support and cooperation. In addition, even though all of the electric energy we use is already renewable, we are investigating opportunities for in-house production or sourcing of electricity and heat.