Annual report 2016

Green logistics and Posti Green

The vast majority, approximately 85 percent, of Posti’s carbon-dioxide emissions in Finland arise from transports and vehicle emissions. As the largest transport and delivery company in Finland, Posti plays a major role in the development of eco-friendly and energy efficient transportation systems. The environmental efficiency of transport operations is improved primarily by planning routes efficiently, ensuring a high utilization rate, combining deliveries, and driving in an environmentally responsible manner.

Posti’s fleet of nearly 3,900 commercial vehicles in Finland recorded a total of 114 million kilometers in 2016 (2015: 108 million km). Posti’s subcontractors logged in roughly 80 million kilometers (2015: 85 million km).

Posti is a pioneer, and participates actively in the trials of alternative fuels. Posti’s fleet includes some 40 biogas vehicles that run on the 100-percent renewable Finnish Gasum biogas. Its use does not generate fine particulate matters harmful to health, and the greenhouse gas emissions during the fuel’s life cycle are minor.

Mail is also delivered on bicycles and on foot. Every day, around 1,800 delivery routes – approximately 36 percent of all routes – are gone through with delivery bikes and delivery carts, on foot. The majority of these are e-assist bikes and carts.

Increasing the number of electric cars in delivery is challenging. Electric cars that are compatible with the winter conditions in Finland and meet the criteria set by every aspect of delivery have so far not been available on the market. The car must be able to transport enough load and to operate at least reasonable routes without recharging in between, also in winter conditions. The lack of extensive network is a challenge itself.

Significant cost benefits through the improvement of utilization rates

Significant changes in the operating model and the use of vehicles took place in 2015. The same strategy continued to be implemented in 2016. The same vehicles are used to carry mail, parcels and freight. The fleet is renewed continuously to respond to changing needs. The utilization rates of vehicles have improved considerably due to route optimization and the combining of transports. Posti engages in active development work to increase the fleet’s utilization rate.

The improved utilization rate has brought cost benefits through lower vehicle costs and the vehicles’ reduced fuel and servicing costs. In delivery vehicles, the average consumption of fuel has increased despite good driving habits and more advanced engine technology. The vehicles’ loading rates and the weights of the transported loads have increased. These have a direct impact on fuel consumption.

Economic and safe driving habits make a difference

Since 2015, every vehicle in Posti’s own use has been equipped with a system that monitors driving habits. The system is a daily tool in production activities, including supervisory work, planning, and operations management. In the spring of 2016, driving habit monitoring devices were fitted into more than 400 trailers. These collect data on the kilometers driven, as well as telematics and GPS data, which are used in periodic servicing and dispatching.

Since the roll-out of the system, Posti has successfully reduced fuel and servicing costs. It has also been successful in improving occupational safety. The number of traffic accidents has declined, particularly the number of accidents involving personal injuries. The trend in insurance statistics has been positive; the number of traffic accidents has reduced and the damage repair costs have fallen.

The scope of the monitoring now covers approximately 8,000 people. Every driver receives a regular report, or a link through which to print a report, on their own driving habits. The report allows drivers to monitor the development of their driving habits. A personal driving habit index helps drivers to develop a more economic way of driving (ecodriving) and promote safe driving habits. If necessary, driving habits are intervened in according to the process.

The data collected with the driving habit monitoring devices and the usage targets are developed actively. Development targets include the safety of production, efficiency, quality, customer experiences and new services.

Posti Green

Since 2011, Posti has provided its customers with carbon neutral mail delivery at no extra cost. In 2015, Posti expanded the Posti Green product portfolio to cover the parcel and logistics business in addition to postal services. Posti Green services are part of Posti’s environmental program.

Climate change is a global issue. Posti’s industry is very large, and the company wants to contribute to mitigating climate change while serving as an example of sustainability to others. Using Posti Green products allows customers to reduce the carbon dioxide emissions of their supply chain processes and communicate the environmental responsibility of their operations to their customers.

Arranging zero-carbon transport services is practically impossible. Emissions are necessarily created in spite of Posti’s continuous efforts to reduce CO2 emissions from transport; for example, by optimizing routes, combining transports and ensuring economical driving.

Certified climate projects

Transporting a letter generates around 28 grams of carbon dioxide and transporting a parcel generates approximately 700 grams. Posti offsets its emissions balance by participating in certified climate projects. The projects ensure that a corresponding amount is cut from carbon dioxide emissions somewhere else.

The projects Posti is involved in include wind power projects in India and Turkey. The renewable energy generated by the farms reduces emissions by replacing fossil fuels. The projects also have a regional job creation effect.

Posti Green service model

All of Posti’s services in Finland are carbon neutral Posti Green services that generate no emissions for customers. The product-specific Posti Green calculation process and customer reporting was verified by a third party in summer 2016.