DSV is a publicly listed company headquartered in Denmark. Founded by ten truckers in 1976, DSV became the world’s third-largest freight transport company. In 2021 its revenue was USD 27.87 billion. DSV is a global freight forwarder, offering road, rail, air and sea transport and logistics solutions. It was one of the first transport companies with targets validated by the Science Based Targets initiative (SBTi).
DSV has only set near-term absolute emissions reduction targets. The company aims to reduce its scope 3 emissions by 30% by 2030 compared to 2019, but the targets do not cover the average expected lifetime of vehicles in its subcontracted fleet . Although the company’s 2030 targets are validated by the SBTi, the company lacks long-term decarbonisation targets and has not committed to a net-zero target. To demonstrate commitment to the low-carbon transition, the company should set long-term as well as regularly spaced intermediate targets aligned with its 1.5°C pathway.
DSV has several programmes to influence customer behaviour to reduce customers’ greenhouse gas (GHG ) emissions. The company developed its Green Logistics initiative in 2020 and launched it in 2021. This is a supply chain diagnostics and optimisation service to help reduce costs and CO2 emissions, design sustainable supply chains and offers sustainable fuel solutions and carbon offsetting. Moreover, DSV uses the EcoTransIT external software tool for GHG impact calculation and logistics optimisation since 2020. This tool also allows customers to see the impact of modal changes on their logistics’ carbon footprint. DSV aims to get 100% of its clients to use its EcoTransIT tool.
Research and development (R&D) expenditure on low-carbon vehicles and energies will be essential for the company to support the development of a low-carbon subcontractor fleet and to meet its scope 3 targets. DSV is involved in the R&D of technical solutions, such as sustainable aviation fuel (SAF) and drop-in alternative fuels (e.g. biofuels, HVO, hydrogen). DSV also invests in projects that aim to reduce heavy goods traffic on roads using a combination of tunnels and small electric vehicles. However, the company does not disclose what proportion of its R&D expenditure is invested in low-carbon vehicles and energies.
Except for about 1% of its road transport, DSV subcontracts most of its operations. The company tracks and calculates scope 3 emissions related to subcontracted operations. The emissions produced by vehicles operated by DSV’s subcontractors exceeded the company’s total 1.5°C carbon budget for the period between 2016 and 2021 by nearly 8%. Although the company relies on contractors for emissions reductions, financial information about alternative fuel development (e.g., SAF, biofuels) was not available, only some detail about future alternative fuel purchases. Future projections of the uptake of new low-carbon technologies are scarcely mentioned.
DSV receives a trend score of =. If the company were reassessed in the near future, its score would likely remain the same. Based on its current owned and subcontracted fleet , DSV is projected to greatly exceed its carbon budget between 2022-2036 but the size of the company’s own road fleet is negligible. Its subcontracted fleet exceeded its carbon budget by 8% between 2016 and 2021. The company has not committed to a net-zero target. However, the company has developed its logistics optimisation and CO2 calculation and management tools and it is rolling them out to all of its customers and suppliers.
The company has set a near-term target to reduce its absolute scope 3 emissions by 30% by 2030, compared to 2019. The company has not set a net-zero target. The company launched several services and initiatives in 2020 to help with its 2030 mitigation target.
DSV relies on its subcontractors to meet its targets. It is aiming to use its EcoTransIT emissions calculation tool, load optimisation, sustainable fuels and supplier engagement to meet its targets. In 2021, the company launched an executive incentive programme linked to climate change.
In 2021 DSV launched its Green Logistics service to help reduce customer costs and CO2 emissions and design sustainable supply chains. The EcoTransIT tool the company uses allows customers to reduce their impact via modal changes.
DSV’s emissions intensity increased between 2016 and 2018, then in 2019 its intensity dropped significantly. Since 2020 DSV’s emissions intensity is increasing which is likely due to the impact of COVID-19 and the increase in the share of air mode from just under 1.5% in 2016 to just under 5% in 2021. Between 2016 and 2021 the company failed to make the required reductions to align with its 1.5°C pathway.
DSV’s ambition to meet its 2030 emissions reduction targets are supported by its supplier engagement efforts and IT solutions. However, the company’s decarbonisation strategy lacks a detailed plan to increase the proportion of low-carbon vehicles in its subcontracted fleet at the scale and speed required to align with its 1.5°C pathway.
No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.
No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.
The company commits to respecting human rights and the ILO fundamental rights at work. It also expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to report human rights concerns.
The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours globally. The company discloses that 38% of its board members are female, and it discloses the age and gender of its workforce by employee category. However, no evidence was found of the company committing to women’s empowerment at a broader level. The company can also strengthen its disclosure on living wage practices.
The company discloses its global tax strategy and board responsibility for the strategy. However, evidence that the company reports the amount of corporate income tax paid was not found for each relevant jurisdiction. Furthermore, no evidence was found of the company having a commitment to protect personal data of employees and customers, nor of a privacy statement regarding the collection, sharing and access to personal data. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. The company also discloses that it does not make political contributions. However, it can increase disclosure on its lobbying approach and expenditures.