DHL Group will accelerate sustainable development with Strategy 2030

The DHL Group, implementing Strategy 2030 – Accelerating Sustainable Growth, aims for a 50% increase in revenues by 2030 compared to 2023.

According to the official statement, the DHL Group intends to unleash its full growth potential through initiatives related to the development of branches and the Group. “The Group’s business units will continue to focus on their profitable core businesses, driving growth through service excellence. The company will accelerate sustainable growth through Group development initiatives focusing on structural enablers of rapidly growing geographies and industries, as well as the e-commerce megatrend.”

DHL Group will also improve customer service across digital touchpoints. With Strategy 2030, DHL Group strengthens its commitment to decarbonization and seeks to adapt its legal and management structures to ensure a lean divisional structure.

“With our well-balanced, diversified portfolio, we are ideally positioned to seize growth opportunities in a rapidly changing world,” says Tobias Meyer, CEO of DHL Group. “We want to grow faster and more profitably while decarbonizing our business. We will strengthen our market leadership in global logistics with a strong focus on quality and serving the needs of rapidly growing industry segments.”

Strategy 2025 helps DHL
The release said that over the past five years, Strategy 2025 – Delivering Excellence in a Digital World has successfully guided the DHL Group through global challenges, including the pandemic, supply chain disruptions and geopolitical tensions. DHL Group achieved significant progress on three proven financial outcomes: employer, supplier and selected investment, as well as on the targets of the ESG action plan launched in 2021.

Integration of “green choice logistics”
With the goal of decarbonizing its operations by 2050, DHL Group is integrating sustainability into its existing “three outcomes” strategic framework as a fourth strategic outcome called “Green Logistics of Choice,” the release added. “The company intends to leverage its expertise to support customers in decarbonizing their supply chains, thereby gaining share in this growing market. Relevant initiatives include strategic partnerships and intensifying decarbonization efforts to, among others, deliver a 30 percent sustainable aviation fuel (SAF) blend by 2030.”

Meyer adds: “We are proud to maintain the largest fleet of electric vehicles in the logistics industry and achieve the highest SAF share of any airline in the world in 2023. Investments in low-carbon logistics that anticipate future market demand will materialize into competitive advantage as these transport solutions are becoming increasingly important for our customers.”

To reduce complexity and support its growth program, DHL Group aims to align its complex legal structure with a proven management structure, the release added. “While the management structure of the five-division company – Express, Global Forwarding/Freight, Supply Chain, eCommerce and Post & Parcel Germany – is simple and transparent, the underlying legal structure is much more complex and has some overlaps. The goal of customization is to reduce complexity and create a more flexible and agile configuration.

The simplification includes the creation of Post & Parcel Germany and eCommerce as stand-alone corporate entities, comparable to all other entities. The name Deutsche Post will continue to be used for the operations of Post & Parcel Germany. “This technical measure is not intended to introduce any substantive changes to the Group’s portfolio, remuneration and protection agreements, management responsibilities or other legal obligations. It will take approximately one to two years to implement.”

The most important points of the 2030 strategy
Megatrends: The following megatrends – global trade, e-commerce, climate change, digitalization and an evolving workforce – continue to have a significant impact on the logistics industry. “Our Group’s capabilities and adaptability enable us to seize emerging opportunities and shape the future of logistics, accelerating sustainable development.”

Building on solid foundations: “Even though the world around us may change, our previous strategic framework will remain part of Strategy 2030: our purpose, our values, our customer promise and our financial performance. These aspects of our company remain unchanged, deeply rooted in our understanding of who we are and how we operate.”

Bottom line: Thanks to Strategy 2030, DHL introduces a new, fourth financial result to its original three. In addition to the selected employer, selected supplier and selected investment, the Group also wants to be the selected ecological logistics company.

Growth: “Our five business units with their diverse global logistics portfolio form the backbone of our business. Divisional development strategies focus on strengthening our core business, driving revenue growth and optimizing quality, yield management and efficiency.”

By implementing the strategy, DHL will invest in fast-growing sectors such as life sciences and healthcare, new energy and e-commerce, while providing an end-to-end digital customer experience.

“The biopharmaceutical, cell and gene research and clinical trials market is expected to grow at a compound annual growth rate (CAGR) of > 10 percent per year between 2023 and 2030, well above global GDP.

“The transformation of the renewable energy and automotive sectors requires dedicated logistics solutions, e.g. servicing windmill blades or battery energy storage systems. “An expected CAGR of >15 percent per year from 2023 to 2030 offers the DHL Group significant growth potential.”

DHL Group will expand its presence in the e-commerce market by leveraging the combined strength of its divisions to create integrated offerings such as combined order fulfillment and last-mile delivery. The global e-commerce market is expected to grow at a CAGR of seven percent annually by 2030.