International Distribution Services : GLS ESG Report 2024

2024ESG Report

Contents

ESG Report 2024

Reference key

• Reference within the report
  Reference to an external source

1. A message from our CEO
2. Highlights

• Company profile
  6 About GLS

1. Philosophy
2. GLS in numbers
3. Strategy
4. Materiality assessment
5. ESG framework
6. ESG governance structure
7. External assessment
8. Environment
9. Environmental strategy

1. Climate Protect measures

1. Corporate carbon footprint

1. Social commitment
2. Diversity, equity & inclusion

1. Health and safety

1. Community engagement

1. Governance
2. Compliance
3. Information security
4. Data protection
5. Supply chain governance
6. Appendix
7. About this report
8. Glossary
9. Reference to GRI

53 GLS entities

A message	To all members of
from	our GL S network and
our CEO	wider community,

The landscape of the parcel market is going through a remarkable transformation, driven by the rapid expansion of e-commerce and the evolving needs of our cus- tomers. As we continue to grow, it is essential that we do so responsibly, with a strong focus on Environmen- tal, Social, and Governance (ESG) principles. With this document, we aim to provide the transparency needed for you to be an active part of our ESG journey.

As a road-based transport service, GLS recognises the significant impact our operations can have on the environment. We want to continue our mission in connecting people around the world whilst protecting the environment for future generations. Therefore, we have taken decisive steps to reduce our carbon emissions and transition to sustainable practices.

Our fleet now includes more than 4,900 zero- and low-emission vehicles, representing a 48% increase from March 2023 to March 2024. We have also significantly expanded our charging infrastructure, with around 1,400 new charging points installed last year alone. These efforts are part of our wider strategy to embrace renewable energy sources, including electric heat pumps, photovoltaic systems, and battery storage technologies.

In December 2023, GLS Group made the important decision to align our carbon reduction targets with the

Science Based Targets initiative (SBTi), ensuring that our environmental goals are based on clear scientific principles. As we move forward, we are committed to setting both near- and long-term targets that reflect the urgency of the climate crisis.

At GLS, our success is intrinsically linked to the welfare of our employees, partners, and the communities we serve. With a diverse workforce of over 23,500 people in 21 countries, we understand how vital it is to nurture an environment of inclusivity, safety, and empower- ment.

On a global scale, the health and safety of our employees is one of our most important priorities. We recognise that their well-being is fundamental to our ability to thrive as an organisation. At a local level, we empower our national companies to lead social initiatives tailored to the specific needs of their com- munities. From free parcel delivery to disaster relief and youth projects, we aim to make a tangible positive impact wherever we operate.

By prioritising environmental responsibility and the health and safety of our employees, GLS Group is well-prepared to meet the upcoming requirements of the Corporate Sustainability Reporting Directive (CSRD). But our journey toward ESG best practices is a shared effort, and we rely on the support and dedication of our partners and communities. That's why, in closing, I would like to thank each and every one of you for your interest in our 2024 ESG report. Your feed- back, insights, and collaboration are invaluable as we continue to chart a course towards a more sustainable future.

Yours sincerely,

Dr. Karl Pfaff

ESG Report 2024	3

Highlights:

Approaching sustainability mile by mile

These were the key stops this year.

1 This means vehicles that during operation create either significantly lower emissions than diesel- and gasoline-powered vehicles (e.g. LPG, CNG or LNG vehicles) or no emissions (e.g. electric or hydrogen vehicles). Further, this includes parcel delivieries on foot. As of today, this is only relevant for GLS Spain.

4,000+

managers and supervisors assigned to the global OHS Awareness Training.

+81%

increase of self- generated electricity in calendar year 2023 in comparison to 2022, through the installation of photovoltaic systems on our buildings.

4,900

zero- and low-emission vehicles1 are operating in the GLS Group as of March 2024.

Local social initiatives

focused on crisis relief, free parcel delivery, youth projects and donation initiatives.

1,400

charging points have been installed during the financial year 2023/24, bringing the total number of charging points across GLS' network to more than 3,600.

Committed to set SBTs

GLS has committed to setting greenhouse gas emission reduction targets in line with the Science Based Targets initiative.

ESG Report 2024	4

Company profile

GLS Group is one of the largest self- reliant parcel services providers in Europe, with a strong local presence in almost all countries across the continent. It also operates through wholly owned subsidiaries in Canada and on the USA's West Coast, all within one GLS network. This allows GLS to seamlessly connect its customers and communities with millions of parcels and stories every day, bringing together global expertise and local insights.

1. About GLS
2. Philosophy
3. GLS in numbers
4. Strategy
5. Materiality assessment
6. ESG framework
7. ESG governance structure
8. External ratings

ESGCompanyReportprofile2024 5

About GLS

Company history

The company was founded in 1999 as General Logistics Systems B.V., stemming from the roots of German Parcel, which was established in 1989. Based on over 30 years of experience, GLS is characterised by its pro- active approach to network management. It dynamically and flexibly connects its markets to adapt to their ever-changing nature. Operating across approximately 40 countries, the company takes pride in providing its customers with high-quality services tailored to meet the unique needs of each of them.

Global presence

Headquartered in Amsterdam, GLS operates as a Besloten Vennootschap (B.V.) under the umbrella of the British firm International Distributions Services (IDS). Our direct operations span 21 countries, providing deliveries to 26 countries. Through our extensive network of strategic partnerships, we facilitate seamless connections and deliveries to 40 countries in total.

Products and services

Our comprehensive suite of services encompasses B2B, B2C, and C2X parcel delivery, freight, cou-

rier, and ­warehousing through a network ­spanning more than 120 national and regional hubs and over 1,600 depots.

PICK-UP AT

CLOSE PROXIMITY

Network with more than 33,000 ParcelShops all across Europe and North America

SENDING PARCELS

Solutions to any parcel delivery needs (B2B, B2C, C2X).

Wide portfolio of products and services

Local and

regional operations

Through our national affiliates and regional centres, we deliver localised service solutions tailored to the unique needs of each market we serve. This infrastructure supports a wide array of services ensuring we meet the diverse needs of our senders and recipients with efficiency and reliability.

Value chain

GLS is dedicated to ensuring that all steps, from pickup to delivery, are handled with speed, care, and attention to detail. The infographic displayed on this page illustrates this process, offering a transparent look into the journey each parcel undergoes within our network.

NATIONAL AND

INTERNATIONAL

INFRASTRUCTURE

Network with about 120 national and regional hubs, and over 1,600 locations in 21 GLS countries

SHIPPING

ACROSS THE

ENTIRE WORLD

Regular connections for national and international parcel distribution

CONSIGNEES

RECEIVING PARCELS

Omni channel mix (home delivery, Parcel Shop, Parcel Lockers) to offer satisfying, efficient and sustainable experiences

ESG Report 2024	6

Philosophy

At GLS, our philosophy is central to our operational ethos. It shapes our identity, anchors our culture, guides our actions, and directs us to positively impact our communities and the planet.

What do we stand for?

• GLS Group's success is built on our focus on quality.
• Every day, GLS Group strives to provide our customers with a high quality of services.
• We are locally present, we continuously improve our network, we provide high standards in technology and security, we aim to protect our environment, and we respect differences among our employees, providing them with secure jobs.

Your shipment will arrive on time.

Reliability A stable European network with uniform quality control.

Your shipment will arrive in good condition.

Security High security standards and continuous monitoring.

Transparency	Your shipment can always be tracked.
Modern IT systems, control of every
	process step.

We will find the right solution for you.

Flexibility Local knowledge and advice on European

services.

We act responsibly and are committed

Sustainability to our employees, society and the environment.

ESG Report 2024	7

GLS in numbers

			Countries where GLS
	Employees		operates entities
2022/23	More than 22,000	2022/23	20
2023/24	More than 23,500	2023/24	21
	Parcels		Countries served by
		GLS network
2022/23	862 million	2022/23	About 40
2023/24	905 million	2023/24	About 40
	Revenue		National and regional hubs
2022/23	5.4 billion €	2022/23	About 120
2023/24	5.6 billion €	2023/24	About 120
	Customers		Depots
2022/23	More than 230,000	2022/23	More than 1,600
2023/24	More than 250,000	2023/24	More than 1,600

Parcel shops

2022/23 More than 42,000

2023/24 About 47,000

Vans and light vehicles2

2022/23 More than 35,000 2023/24 More than 36,600

Trucks

2022/23 5,800 2023/24 6,500

2 This also includes deliveries by foot, which is currently only relevant in Spain (approximately 200).

ESG Report 2024	8

Strategy

For over 35 years, we've harnessed the strength of our flexible and resilient road-based network and market- specific approach to deliver exceptional services to our customers. In response to rapidly evolving market demands, we've developed a focused strategy that propels our continuous growth and resonates with the evolving needs of our customers. This strategy centres on three key areas:

Growing our core business

We are committed to reinforcing our core operations by upscaling our network capabilities, boosting productivity, and ensuring exceptional service quality. Our strategic focus has been on expanding and modernising our hubs and depots, directly supporting our growth in the Business to Customer (B2C) sector, nurturing our Business to Business (B2B) services, and developing a value proposition in Consumer -to-Any Other Party (C2X). Integral to our network's evolution is our commitment to sustainability; we've embraced eco-friendly upgrades and invested in renewable energy solutions, such as electric heat pumps and photovoltaic systems. But most importantly, we are expanding our fleet with zero- and low-emission vehicles, from delivery vans to electric shunters, and are piloting hydrogen and electric long-haul trucks.

Revolutionising last-mile delivery

We're transforming last-mile delivery by utilising and expanding our extensive 'Out of Home' network of parcel shops and lockers, increasing convenience for customers, cutting costs, and lowering our carbon footprint. Moving forward, we are committed to expanding this successful model by investing in partnerships and acquisitions where we see promising opportunities.

Building digital solutions

We're committed to enhancing our customer relationships by expanding our digital offerings and service portfolio. This commitment is key to strengthening GLS' position in the market, offering digital and value -added services that meet our customers' needs. Our focus on digital solutions, especially our leading live-tracking technology, is transforming our operations. This technology has optimised our delivery routes, reduced stops, and improved transparency, resulting in shorter driver routes and a more sustaina- ble, efficient last-mile delivery process. Moreover, it enhances the customer's digital experience, reinforcing our commitment to providing exceptional service.

ESG Report 2024	9

Materiality assessment

At GLS, we're taking a proactive stance in enhancing our sustainability efforts through regular materiality analyses.

This essential process, conducted at the Group level, allows us to identify and pinpoint areas where we can make meaningful improvements while refining our ESG practices.

Our approach

Our approach to assessing significant ESG topics involves engaging comprehensively with stakeholders. In 2022, we completed a materiality analysis, reaching out to all relevant stakeholders to gather input on the importance of ESG topics.

This survey, conducted in accordance with the GRI reporting principles, validated our current strategies and shed light on critical issues such as employee experience and the importance of strong governance structures. It also emphasised the significance of environmental consid- erations, aligning closely with our ongoing initiatives. The insights we gained have been pivotal in crafting the following ESG Framework and structuring our 2024 Report. As we prepare for reporting under the EU Corporate Sustainability Reporting Directive (CSRD), we are performing a new double materiality assessment to ensure that our ESG approach aligns with EU standards.

Parcelshop

partners

Employees

Customers

Transport	Consignees
partners

ESG Report 2024

10