Circularity

At PostNL, we prioritise the careful use of resources. Minimising waste and maximising the lifespan of materials are key principles guiding our operations. We actively recycle our waste streams and have introduced reusable materials where possible, which helps lower our environmental footprint and foster a circular economy.

In a circular economy, materials are used for as long as possible or repurposed, following the 10R circularity ladder: R0 Refuse, R1 Rethink, R2 Reduce, R3 Reuse, R4 Repair, R5 Refurbish, R6 Remanufacture, R7 Repurpose, R8 Recycle and R9 Recover. We set a target to achieve zero waste by 2040, meaning no more than 10% residual waste. We aim to process all waste streams through repair, reuse, or recycling in a fully circular way. This is crucial, as incinerating waste generates significant CO₂e emissions.

While this is an ambitious goal, we are making progress annually. We are working to reduce our resource inflows of non-renewable or high-waste materials, which will help us lessen our environmental impact and improve efficiency.

Reducing the impact of our purchased goods and services

We want to purchase our goods and services with as little impact on the environment as possible, following the rules of the circular economy and the 10R circularity ladder. Consequently, we adhere to a number of principles:

• The longest possible lifespan of products
• The fewest (types of) waste possible at the end of a product or service's lifespan
• The reuse of products and materials.

To gain better insight into the circularity of our materials, we began asking our suppliers in 2024 to provide information on the environmental impact of the products and services we purchase. More information can be found in our procurement policy on our website.

Company clothing

Every day, thousands of our delivery people go out in our recognisable orange uniforms. However, producing these uniforms consumes significant resources and generates carbon emissions. As part of our commitment to reducing our environmental impact, we are transitioning to more sustainable company clothing. Our orange polo shirts are now made entirely from more sustainable materials, including organic cotton and recycled polyester, and come in packaging made from recycled paper. Additionally, our new outerwear collection is fully designed from more sustainable materials, eliminating the need for separate packaging.

For our technical operators and process experts, who wear dark blue polo shirts, we have adopted a circular approach. Old PostNL polo shirts are recycled and blended with BCI cotton (Better Cotton Initiative) and recycled polyester. This recycled material is then dyed and used to produce new dark blue polo shirts. Around 15% of the material in each new shirt consists of recycled fabric, sourced from worn-out PostNL orange and blue polo shirts, helping us work towards closing the loop. This initiative supports our sustainability goals and reinforces our responsibility to contribute to a circular economy.

Reusable pallet boxes

In 2024, we continued our commitment to sustainability by expanding the use of our innovative orange pallet boxes at Spring, which is a key step in replacing single-use materials within our operations. Over the course of the year, the number of reusable pallet boxes increased to 3,546, with 2,346 already in circulation and an additional order of 1,200 pending delivery.

These pallet boxes are designed to last for 7 to 10 years and can be returned to the supplier for reuse after each cycle, contributing to a fully circular system. The pallet boxes are also made from 100% recyclable materials, supporting our zero-waste ambitions.

Contributing to a circular economy together

The transition towards circularity plays a crucial role in achieving climate objectives and is expected to have a profound effect on the e-commerce sector. As the economy shifts towards more sustainable models, the move to circular business practices presents both challenges and significant opportunities. At PostNL, we recognise the importance of partnering with the market to ensure we are collectively prepared to navigate the impacts, risks, and opportunities that lie ahead.

Collaborating with waste partners to optimise waste management

In line with our commitment to sustainability, we are focused on minimising residual waste through a structured roadmap and close collaboration with our waste partners. By conducting comprehensive waste scans, we aim to improve waste separation, reduce carbon emissions in our scope 3 emissions from waste, and promote sustainable practices across our operations. In 2023, our residual waste was 38%. By the close of 2024, we had reduced this to 27% through improved waste separation and reduced residual waste volumes. In 2024, this involved the following initiatives.

Identifying improvement opportunities

At our larger locations, we collaborate with waste partners to conduct waste scans, pinpointing areas for better waste separation. One key discovery was the potential to introduce a polystyrene press at our Extra@Home locations, halving polystyrene waste transport loads. We also adapt waste collection methods to suit the specific types and volumes of waste at each location. For instance, we prioritise the efficient collection of materials such as paper, cardboard, transparent foil, and polystyrene. Press containers are installed at sites with high waste volumes, enabling us to streamline and optimise collection processes.

Promoting waste separation

Whenever we implement significant changes to our waste collection processes, we engage our employees with an informative kick-off event at the location. Additionally, we appoint waste ambassadors to raise awareness and emphasise the importance of proper waste separation. Clear labelling on waste containers helps simplify the process for employees.

Continuous monitoring and evaluation

We regularly monitor the effectiveness of waste separation practices at our locations. Process managers can oversee the separation process and discuss the results during location work meetings. We review performance together and determine if any adjustments are needed to improve the process or employee behaviour.

Dedicated waste collection

To tackle high levels of residual waste and improve waste separation, we introduced a new approach to waste management at our mail sorting facilities. Key measures were:

• Dedicated collection points: In collaboration with our waste partner, we installed 140 specialised collection devices across our mail sorting locations
• Clear instructions: The new collection points are complemented by clear and efficient waste sorting guidelines, simplifying the process for employees
• Enhanced employee engagement: These changes empower employees to make more sustainable choices in waste disposal, aligning daily practices with broader environmental goals.

This initiative has contributed to a reduction in residual waste, cost savings, and lower CO₂e emissions, reflecting our commitment to responsible waste management and sustainability. Looking ahead to 2025, we aim to further lower our residual waste percentage.

Circular Shopping 2030 programme

As a founding partner and sponsor of Thuiswinkel’s Shopping Tomorrow programme, we were proud to have co-hosted the Circular Shopping 2030 expert group in 2024 for the second consecutive year. This initiative is designed to support consumers in making the shift from a consumption-focused mindset to a usage-based approach by 2030, ensuring that products and materials retain their value for longer, fostering a more sustainable future. PostNL plays an active role in advancing this vision, working closely with industry stakeholders to drive meaningful progress and contribute to a circular economy.

Right to Repair

As part of the program, our focus in 2024 also extended to the Right to Repair initiative, which is a new consumer right adopted by the European Union, aimed at making it easier and more attractive for consumers to have their goods repaired both within and beyond the legal guarantee term. This is a significant trend influencing the e-commerce sector, and we engaged with partners to address its implications and opportunities.

Collecting for recycling

A circular economy requires everyone's participation, and every contribution matters. Which is why we aim to make it easy for people to join us. Our delivery staff help by collecting clothing and electronics for recycling. Through partnerships with Dobbi and the Salvation Army, customers can donate clothing or hand it in to have it repaired at over 800 PostNL locations, advancing our shared goal of a circular economy.

Reusable packaging

Additionally, our efforts in reusable packaging are progressing. With market input, we are defining scaling requirements. In 2025, we will launch a pilot at our fulfilment centre with a business customer and packaging supplier to explore scalable circular solutions.

Returns

Our advanced returns policy aligns with our commitment to circularity and decarbonisation, delivering both convenience and sustainability through an optimised returns platform. This platform not only streamlines the returns process for consumers but also provides valuable insights, such as identifying frequently returned items due to sizing issues. These insights enable our business customers to make data-driven adjustments, effectively reducing product waste.

Furthermore, our returns logistics are seamlessly integrated into our dense distribution network, avoiding unnecessary kilometres driven and thereby minimising fuel consumption and CO₂e emissions. This integration allows us to contribute directly to lowering our overall climate impact, while maintaining a smooth and efficient returns experience for our customers. Additionally, the inclusion of a combined shipping and return label further enhances convenience, eliminating the need for separate printed labels and reducing material usage.

We aim to enhance collaboration across the value chain, recognising the EU’s ambition to achieve 50% circularity by 2030. To meet evolving demands, both consumers and producers must adopt circular principles. We believe we are well-positioned to lead in this transition, offering reverse logistics solutions that support circular business models. Our efforts focus on customers and beyond, with medium- and long-term actions integrated into our strategy.

“We are focused on minimising residual waste through a structured roadmap”