How we create value
Our value creation model illustrates our process of achieving long-term value for our customers and investors, our people, society and the company
Our value creation model
Our value creation model
Our value creation model illustrates our process of achieving long-term value for our customers, our people, society and investors by providing e-commerce and postal services.
We make use of a range of resources to carry out our business model and convert these into outputs, creating value for the company and our stakeholders. The capital categories are aligned with the International Integrated Reporting Framework of the IIRC1. All capitals are interrelated and business activities often require the use of a mix of capital. We aim to allocate our resources based on these capitals effectively by maximising their potential value and minimising their negative impacts as part of our continuous drive to improve. We connect our long-term value creation with the UN Sustainable Development Goals to optimise the impact we have across society.
Social & relationship capital
We have deep roots in society, and through our operations connect with millions of people and organisations on a daily basis. The relationship we have with our stakeholders, especially customers (consumers and business customers), our employees, society, partners, governments, our investors and trade unions, influence our ability to create value over time. We strive to build strong relationships by engaging on relevant topics and collaboration based on stakeholder needs.
Human capital
Effective collaboration with our logistics partners is crucial for our success and we continually look for ways to improve our labour practices, particularly in the area of social laws and regulations.
By operating and developing an inclusive organisation, we aim to help our people to grow, while providing favourable labour conditions, including a safe and healthy work environment. The collective knowledge and experience of PostNL, our intellectual capital, has been built over the course of more than two centuries and is one of our greatest assets. As part of our digital transformation, we are investing in the digital DNA and expertise of our people.
Manufactured capital
Manufactured capital are those goods and assets that enable us to carry out our role as a logistics and postal service provider, such as vehicles, buildings and machinery. We select these goods and assets based on our specific needs and available sustainable options.
Intellectual capital
The assets that drive digitalisation, the use of data, automation and robotisation, are our intellectual capital. They play an increasingly important role in our business, such as the process and information-related technologies that we use to improve the value of our business activities. Another example is the growing use of automation, such as the use of robots, to boost logistics and productivity while supporting 24-hour processes. Automation will perform complementary roles, assisting workers with planning, fulfilment and last-mile deliveries, while reducing the burden of physically heavy work. As a logistics expert we have created state-of-the-art networks, smart processes and management systems that have enabled us to become a front-runner in our rapidly changing markets. These are continually refined to help PostNL deliver high-quality services, optimise our operations and develop new value-adding operations.
PostNL is a people company. Our human capital refers to the expertise of our people, which is used to provide customer, social, environmental, and financial value. Intellectual capital is the knowledge and skills that are present within PostNL that we use to create value across society. Our people execute our strategy and ensure the delivery of our services. This includes our own employees and people working for us through collaboration with logistics partners.
Natural capital
Natural capital is the energy we use to provide our services. We are switching to renewable fuels and e-vehicles to reduce our environmental impact, and phasing out fossil fuels as quickly as is feasible. We use solar energy to generate electricity and natural gas to operate our buildings. Fossil fuels produce greenhouse gases (GHG) and air-polluting emissions that contribute to climate change and impact air quality.
Financial capital
Shareholders and other relevant players in capital markets, such as bondholders and banks, provide PostNL with funds used to invest in our assets and operations. We use this financial capital to operate and grow our business and generate sustainable growth and cash flow, thereby creating long-term value for us and our stakeholders.