Compensation of carbon emissions

What carbon emissions do we offset?
GLS Italy offsets carbon emissions generated by:
• Transport of parcels and shipments
• Buildings and business trips

How do we offset GLS Italy's emissions?
The GLS Group collaborates with ClimatePartner GmbH, Munich ("ClimatePartner"), to offset its emissions through investments in climate protection and environmental conservation projects aimed at avoiding (or preventing) CO₂ emissions.

How does compensation actually work?
The climate protection projects supported by GLS aim to avoid (or prevent) greenhouse gas emissions, e.g. by protecting rainforests from deforestation or by installing renewable energy plants that can gradually supplement and replace fossil energy production. The climate protection projects supported by GLS (through Climate Partner) are certified according to the highest available international standards, such as the Verified Carbon Standard (VCS) or the Gold Standard (GS) and are regularly verified by independent third parties. See below: "What does the certification standard for carbon offset projects mean?"

ClimatePartner purchases Verified Emission Reductions (VERs) generated by climate protection projects in the amount of emissions determined by GLS and related to parcel shipments and building and business trips. The amount of emissions attributable to GLS is calculated annually.

Based on these VERs, ClimatePartner in turn issues its own certificates for GLS Italy customers participating in the offset programme. The ClimatePartner offset certificate certifies that the emissions attributable to individual customers, calculated by GLS Group, have been offset.

How does GLS calculate the transport emissions to be offset for Italian customers?
The basis for the calculation of emissions attributable to individual customers is the GLS Corporate Carbon Footprint*, i.e. the total amount of greenhouse gas emissions generated by GLS activities in Italy, which is calculated according to the GreenHouse Gas Protocol and and externally verified by certified public accountants each year. Emissions from parcel transport are calculated compliant to the requirements of European Standard EN 16258 for calculating and reporting greenhouse gas emissions from transport.

The calculation of emissions attributable to individual customers is based on a mechanism whereby the total amount of CO₂ emissions from GLS's activities in Italy is divided by the number of parcels shipped in total. This mathematical operation results in the value CO₂/parcel shipped by GLS in Italy. To calculate the emissions covered by the nominal certificate issued to individual customers, the number of parcels shipped by each customer is multiplied by the CO₂/package value. For parcels sent abroad, the CO₂/package value of the receiving country is also considered, as well as emissions from international transport.

*The Carbon Footprint refers to the total amount of greenhouse gas emissions, in particular carbon dioxide (CO₂), produced by GLS operations.

In which climate protection projects does GLS invest to compensate its emissions?

What does the certification standard for carbon offset projects mean?
Supported projects are certified according to the Gold Standard (GS) or the Verified Carbon Standard (VCS) together with the Climate, Community and Biodiversity Standard (CCBS). See table in previous sections.

The GS (developed by WWF and other environmental organizations) and the VCS (developed by the non-governmental organization VERRA) are standards for the voluntary trading of Verified Emissions Reductions. Climate protection projects can be verified and certified by the VCS and GS according to their respective criteria and requirements (e.g. the additionality criterion).

The Verified Carbon Standard (VCS) is a widely recognized global standard for certifying greenhouse gas emissions reduction and removal projects. It provides a framework to ensure the accuracy, transparency and credibility of carbon offset projects, which generate carbon credits or reductions (VERs) that can be traded in carbon markets. The VCS can be combined with the Climate, Community and Biodiversity Standard (CCBS), which is an additional standard and focuses on social and environmental aspects.

The Gold Standard (GS) is another internationally recognized standard for the certification of carbon offset projects. What sets it apart is its strong focus on sustainability and co-benefits, such as social and environmental impacts in addition to emissions reductions. Projects certified according to the Gold Standard meet strict criteria and contribute positively to sustainable development and environmental protection.

What obligations and benefits do the customer have if he joins the Climate Protect Programme? How will the Climate Protect contribution be used?
The customer of the GLS network in Italy, who joins the programme, undertakes to pay the Climate Protect contribution, the amount of which is defined on the basis of the weight and volume of parcels shipped on his behalf by GLS.

Upon payment of the contribution, the customer acquires the right to receive a certificate, issued by Climate Partner, certifying the offsetting of CO₂ emissions attributable to shipments entrusted to GLS, which are calculated by dividing the total amount of CO₂ emissions attributable to GLS's shipping activities in Italy among GLS's individual customers. The customer may, where possible/appropriate, use this certificate for its own purposes.

In addition to the offsetting of CO₂ emissions attributable to shipments entrusted to GLS by the customer participating in the programme, the contribution paid by customers will also be used to finance GLS's interventions aimed at reducing CO₂ emissions related to GLS's activities and logistics chain in Italy, e.g. the gradual replacement of delivery vehicles powered by fossil fuels with electric vehicles or vehicles powered by LPG, CNG or LNG, the installation of photovoltaic systems in the hubs and GLS offices for the production of energy from renewable sources (for further information and updates on the CO₂ reduction initiatives that will be progressively implemented, see the section ‘Measures to reduce the impact of GLS Italy’ accessible here ).