Green Procurement Playbook 2025

Page 30 of 53 · WEF_Green_Procurement_Playbook_2025.pdf

Advancing decarbonization at DHL Case study 3 DHL has positioned green procurement as a core enabler of its climate strategy, committing over €370 million to decarbonization in 2023 alone. With sustainability targets in executive compensation and tracked monthly across business units, DHL is investing in next-generation solutions, from sustainable aviation fuels (SAF) to electric vehicle fleets. Despite limited customer willingness to absorb green premiums, the company funds long-term decarbonization, anchored in structured business cases and cross- functional governance. How? –Clear targets and performance-linked incentives: In 2021, DHL replaced its distant 2050 goals with concrete 2030 sustainability targets tied to executive bonuses. These are cascaded through the organization, with procurement progress tracked monthly to ensure visibility and accountability across business units. –Structured business case governance: Procurement is central to decarbonization investments, building business cases assessed by steering committees with the CEO and CFO. Decisions rely on abatement cost analysis and emphasize long-term impact. While procurement leads the case development, divisions own the budgets and approvals. –Strategic investments despite green premium gaps: DHL has made early, large- scale investments in green technologies, already reaching 3.5% SAF usage. It has electrified 41% of its fleet and targets 66% by 2030. With these investments, DHL relies on scale and long-term supplier deals to drive adoption. –Enabling commercial innovation through GoGreen Plus: To recoup some of its investment in decarbonization, DHL launched GoGreen Plus, where clients pay a premium for low-carbon services. Though uptake is gradual, the programme monetizes sustainability and aligns with growing customer demand for lower-emission supplies. Impact DHL’s green procurement model demonstrates how strategic investment, performance tracking and governance can enable climate leadership even when market signals lag. By focusing on abatement and by embedding sustainability into business planning and procurement operations, DHL has transformed its supply chain into a lever for decarbonization, supported by leadership, measured with rigour and built to scale up. Green Procurement Playbook: The CPO’s Guide to Delivering Value for Business and Planet 30
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