DHL Group to accelerate sustainable growth with Strategy 2030

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DHL Group, with Strategy 2030 - Accelerate Sustainable Growth, is striving for 50 percent revenue growth by 2030 compared to 2023.

DHL Group aims to unlock its full growth potential through divisional and Group growth initiatives, says an official release. "The Group's business divisions will continue to focus on their profitable core businesses stimulating growth through service excellence. The company will accelerate sustainable growth through its Group growth initiatives focusing on structural tailwinds in fast-growing geographies and industry sectors as well as the megatrend of e-commerce."

DHL Group will also improve customer experience at digital touchpoints. With Strategy 2030, DHL Group is reinforcing its commitment to decarbonisation and aims to align legal and management structures to ensure a lean divisional set-up.

"We are ideally positioned to seize growth opportunities in a rapidly changing world thanks to our well-balanced, diversified portfolio," says Tobias Meyer, CEO, DHL Group. "We want to grow faster and more profitably while decarbonising our business. We will fortify our market-leading position in global logistics with a strong focus on quality and on servicing the needs of fast-growing industry segments."

Strategy 2025 helps DHL
Over the past five years, Strategy 2025 - Delivering Excellence in a Digital World, has effectively navigated DHL Group through global challenges including the pandemic, supply chain disruptions and geopolitical tensions, the release added. DHL Group achieved major advancements along the three proven bottom lines employer, provider and investment of choice as well as in its ESG Roadmap goals introduced in 2021.

Integration of "Green Logistics of Choice"
With the goal of decarbonising its business by 2050, DHL Group integrates sustainability into its existing strategic "three bottom lines" framework as the fourth strategic bottom line named "Green Logistics of Choice," the release added. "The company aims to use its expertise to support customers in decarbonising their supply chains, thereby gaining shares in this evolving market. Corresponding initiatives include strategic partnerships and intensifying decarbonisation efforts to secure, among other things, a 30 percent blend of sustainable aviation fuel (SAF) by 2030."

Meyer adds: "We take pride in maintaining the largest fleet of electric vehicles in the logistics industry and in achieving the highest share of SAF among all airlines globally in 2023. Investing in low emission logistics, which anticipate future market demand, will materialise into a competitive advantage as these transport solutions are becoming increasingly important to our customers."

To reduce complexity and support its growth agenda, DHL Group aims to align its complex legal structure with its proven management structure, the release added. "While the company's management structure with its five divisions - Express, Global Forwarding/Freight, Supply Chain, eCommerce, and Post & Parcel Germany - is simple and clear, the underlying legal structure is much more complex and partially overlapping. The alignment intends to reduce complexity and create a more flexible and agile set-up."

The simplification includes establishing Post & Parcel Germany and eCommerce as standalone corporate entities comparable to all other entities. The name Deutsche Post will continue to be used for Post & Parcel Germany activities. "This technical measure is not intended to bring any changes in substance to the Group's portfolio, wage and protection agreements, management responsibilities, or other legal commitments. It will take about one to two years to be implemented."

Highlights of Strategy 2030
Mega trends: The following mega trends - global trade, e-commerce, climate change, digitalisation and evolving workforce - continue to have significant impact on the logistics industry. "Our Group’s capabilities and adaptability position us to seize these emerging opportunities and shape the future of logistics, accelerating sustainable growth."

Building on a strong foundation: "Even though the world around us may shift, our previous strategic framework will remain part of Strategy 2030: Our purpose, our values, our customer promise, and our bottom lines. These aspects of our company remain constant, deeply rooted in our understanding of who we are and how we operate."

Bottom lines: With Strategy 2030, DHL is introducing a new 4th bottom line to its original three. In addition to Employer of Choice, Provider of Choice and Investment of Choice, the Group also wants to be the Green Logistics of Choice.

Growth: "Our five business units with their diverse global logistics portfolio are the backbone of our business. The divisional growth strategies focus on solidifying our core business, stimulating top-line growth, and optimising quality, yield management, and efficiency."

With the strategies in place, DHL will invest in fast-growing sectors like life sciences & healthcare, new energy and e-commerce while delivering end-to-end digital customer experience.

"The biopharma, cell & gene and clinical trials market is expected to grow at a compound annual growth rate (CAGR) of >10 percent p.a. between 2023 and 2030 and thus significantly above global GDP.

"The transformation of the renewable energy and auto-mobility sectors requires dedicated logistics solutions, e.g., handling windmill blades or battery energy storage systems. An expected CAGR of >15 percent p.a. between 2023 and 2030 offers DHL Group significant growth potential."

DHL Group will enhance its footprint in the e-commerce market by using the combined strength of its divisions for integrated offerings such as combined fulfilment and last-mile delivery. The global e-commerce market is expected to grow at a CAGR of seven percent p.a. until 2030.