Emerging risks
Emerging risks are risks we do not expect to materially impact the company in the short term, but which do require prompt mitigation actions to prevent them from exceeding our risk appetite in the mid to long term. In 2023, we pinpointed two such risks: 'Labour shortage and ageing workforce' and 'Reliance on technological advancements for a sustainable energy transition'. These are seen as exacerbating our main operational strategic risks, namely 'Employee attraction, development, and retention' and 'Availability of energy resources', respectively.
Risk description | Response |
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Labour shortage and ageing workforceWe are facing a very tight labour market in the Netherlands, illustrated by low unemployment rates and a record number of open vacancies which we already identified as . This is compounded by an ageing population and increased demands for better working conditions and higher compensation. These market dynamics are driving up labour costs, potentially challenging the economic sustainability of our operating model and threatening our ability to attract, develop, and retain the skilled workforce essential for delivering high-quality service. | MitigationAddressing this requires focus on recruiting and retaining talent across our Parcels and Mail in the Netherlands operations. At the same time, we need to further develop customised HR solutions tailored to meet diverse employee needs for benefits and career advancement, utilising predictive analytics. We will also invest in automation and training initiatives to decrease reliance on manual labour, thereby enhancing operational resilience and our appeal to skilled professionals. |
Reliance on technological advancements for a sustainable energy transitionAt the end of 2023, we submitted updated ambitious emission reduction targets to the Science Based Targets initiative (SBTi), which include significant emission reduction levels across our value chain to a residual level in line with the 1.5C scenario by 2040. Key to achieving this is transitioning to a fleet of electric vehicles and using renewable energy sources. However, this transition introduces risks concerning the accessibility and reliability of renewable energy sources and limitations on grid infrastructure. This is further intensified by the shifting nature of the energy market and the rapid advancement in sustainable energy technologies. This risk poses the threat of extended transition periods, increased dependence on unstable energy markets, and potential delays in achieving our sustainability objectives. Financially, this could lead to higher operational costs and affect our reputation as a leader in sustainable logistics. | Mitigation
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