Governance
Hellmann is committed to innovation and entrepreneurship, continuously improving its products and Industry Solutions while focusing on digitalization and sustainability.
Products and Innovation
Hellmann stands for innovation and entrepreneurship. True to its vision: "For the better. Together.", one of the company's key objectives is to continuously develop its products and industry solutions and to move forward courageously with a forward-looking error-management culture in order to think about and test new topics as a pioneer. This means that innovative products, processes and services are of vital importance for Hellmann and therefore also an essential topic for the organization’s further development. Whether organically or in collaboration with external partners, Hellmann is always on the lookout for new ideas and approaches to improve its position a little bit every day – and in particular with a focus on the topics of digitalization and sustainability.
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As such, Hellmann's innovation strategy is based on two elements. In principle, it is about the ability to develop successfully in the existing core business model ("Core"/"Exploitation") through improvement and increased efficiency, and at the same time to open up something new ("Exploration") through experimentation and flexible action. In 2023, the plan is to work out exactly how this can be achieved most effectively in the area of innovation. Close collaboration with partners and customers is a key element of this. The aim is to use co-creation in partnership to ensure that the company always initiates and establishes innovations with regard to the needs of its partners and customers.
In addition, innovations are also a "must" for a logistics service provider in terms of reducing the ecological footprint: To sustainably reduce the energy consumption of the existing range of services and the associated emissions, it is therefore an important concern for Hellmann to continuously review and adapt its products for potential emission reduction or prevention – whether via alternative drive models or with regard to the digitalization of processes. In the reporting year 2022, for example, Hellmann began to further develop its standard products, which were previously based primarily on fossil fuels, and launched the new "Cleaner Logistics" product. This refers to CO2-reduced products. For example, the use of Sustainable Aviation Fuel (SAF) has already been realized in the air freight sector. In addition, a cooperation agreement was concluded with AirFrance/KLM to further develop the purchase of SAF. In the LCL seafreight segment, CO2-neutral transport of goods is already being implemented through compensation measures (MyClimate). In addition, in the fourth quarter of the reporting year, all German rail shipments were switched to green electricity and are now also CO2 neutral. The aim for 2023 is both to further automate customer CO2 reporting and to further expand the range of environmentally friendly products.
In addition, partnership collaborations, referred to as co-creations, were successfully realized in the reporting year. They are briefly presented here as examples:
Co-creation with a partner: Dronamics
Hellmann plans to use drones to transport goods as part of a cooperation project with Dronamics, the leading developer and operator of middle-mile cargo drones. The drones have a range of up to 2,500 km, a transport volume of 3.5 m3 with a payload weight of 350 kg. These transport options are expected to increase flexibility as well as speed and reduce transport costs and emissions. Hellmann will launch the first test flights as a practice partner in 2023.
Co-creation with a customer: SmartAir!/SmartOcean
With SmartAir! Hellmann provides a real-time monitoring system that defines transparency beyond classic milestone tracking by enabling customers to query information on the performance of airlines, their documents or the emissions emitted per shipment stage. Through the detailed knowledge of which aircraft actually transported the goods and the identification of so-called "road feeder services," SmartAir! delivers significantly more accurate WTW (well-to-wheel) emissions than the usual market calculation with standard values. With the "Hellmann ECO-Score," which was developed in house, the system provides a better understanding of the emissions emitted and establishes comparability between individual shipments, regardless of the transport route and weight of the goods. The summarized emissions data of the customers can be analyzed in a compressed CO₂ performance report and a CO₂ trade lane report.
Hellmann plans to launch the same functions in its sister system "Smart Ocean" in 2023. In addition, the functions for calculating CO₂ emissions are to be expanded in SmartAir! by integrating primary data from the airlines and differentiating the fuel used, thus ensuring an even more accurate emissions calculation.
Tobias Heuser, Head of Digital Products
“Hellmann has stood for sustainability and innovation for more than 150 years. This was and is our basis for growing globally across all product areas: It is not enough to move with the times, we must always be one step ahead in order to think about and, if possible, map the logistics of tomorrow right now. To do this, we need to think creatively – in exchange with partners, with our diverse in-house experts, and directly with our customers. Because only together can we create sustainable solutions that will satisfy our customers over the long term.”
Sustainable Investments
As part of the materiality analysis at Hellmann, the topic of "sustainable investments," which is already firmly established in the corporate culture, was identified as another key area for action. As also defined in the overarching corporate vision, the focus here is on long-term, sustainable corporate development. At the same time, the aim is to protect people, society and the environment in all areas in which the company operates. This must be taken into account in all investment decisions. One example of this is Hellmann Germany’s switch to green electricity. Furthermore, as part of the EU taxonomy*, from 2025 there will be a legal obligation to record data demonstrating sustainable investments and to publish it in the following year. The issue of taxonomy is of central strategic importance for Hellmann. Accordingly, the company will engage intensively with this topic in 2023, identify necessary adjustments and begin implementation. The first data, which will be compiled as part of an automated data collection process, will be collected in 2024.
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In the context of sustainable investments, in addition to ongoing investments in sustainable and energy-saving buildings, various projects from 2022 are worth highlighting. On the one hand, for the first time in the second half of 2022, all LCL transports in the main leg in seafreight were offset, so that these were offered to customers in a completely CO2-neutral manner. In addition, Hellmann participates in sustainable start-ups via the venture capital fund "Rethink Ventures" and plans to enter into strategic partnerships in this area. In addition, the planning of photovoltaic systems at the Bremen site was completed, with installation scheduled for 2023. The charging infrastructure for e-vehicles in Germany was also successfully expanded. Looking to the future, activities in the area of sustainable investments are to be significantly expanded, particularly also in cooperation with customers.
* The European Commission defines the EU Taxonomy as a system that establishes a classification for environmentally sustainable economic activities. It will play an important role in helping the EU expand sustainable investment and implement the European Green Deal. The EU Taxonomy will provide businesses, investors and policy makers with appropriate definitions of which economic activities can be considered environmentally sustainable. In this way, it will not only provide certainty for investors and protect private investors from greenwashing, but also help companies operate in a more climate-friendly way, mitigate market fragmentation, and help direct investment to where it is most needed.
Compliance
Fighting corruption and preventing anti-competitive behavior
For Hellmann, the principle of fair business conduct and competition with integrity is paramount. This approach is an integral part of Hellmann's self-conception and thus an unshakeable claim the company makes on itself. Compliance has therefore been defined as a key issue.
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Hellmann pursues a zero-tolerance strategy in the area of anti-corruption by complying with relevant national and international anti-corruption laws and ensuring this through defined measures that correspond to the risk profile of an internationally active logistics company. Furthermore, the company pursues a consistent fair business strategy towards market competitors, customers and other business partners.
Hellmann therefore operates a comprehensive compliance management system (CMS) based on the "three-pillar model" ("prevent, detect, respond"). Responsibility for this issue lies with the compliance officer appointed by the Management Board. The compliance officer is responsible for managing both a centralized and a decentralized team. A compliance officer has been appointed in each Hellmann region. These teams implement defined measures (e.g. policies, training, etc.), which are continuously monitored in terms of their effectiveness by means of reviews and analyses to identify any need for improvement or supplementation.
Extensive processes have been implemented as part of the CMS, such as:
- Internal control system,
- Anti-bribery and anti-corruption policies,
- Guidelines on gifts and hospitality
- Supplier Code of Conduct,
- Fair competition policy,
- Whistleblower policy and
- Limits of authority policy.
Any indications of possible compliance violations are consistently investigated according to professional standards and – in the event of confirmation – the identified misconduct is effectively stopped and punished. At the same time, appropriate measures are taken to prevent recurrences or similar violations.
In the reporting year 2022, a total of 7,154 training sessions were held and a "Digital Gift & Hospitality Tool" was introduced for the standardized assessment of gifts (receipt and granting). In addition, awareness trainings were conducted. The table shows the total number of trainings. While these have decreased in comparison to 2021, they can still be considered very good in relation to the total number of employees. In the future, the training units will continue to be adapted to the target group, as this approach has proven successful in the past.
| KPI | 2021 | 2022 | Explanation |
|---|---|---|---|
| Compliance ratings | 8,220 | 7,154 | Mixed learning variants (attendance and electronic learning units) |
In addition to the standardized CMS reporting system for the management levels, a monthly reporting system has also been established. In the future, compliance indicators will also be included in the general sustainability reporting system for management on a monthly basis. The declared aim for 2023 is also to maintain the high compliance standards and continuously develop them in line with requirements.
In the reporting year 2022, there were no legal proceedings or convictions relating to anti-competitive behavior, monopoly or cartel formation.
Dominik Waszczynski, Head of Global Compliance:
”Hellmann is a global player with almost 14,000 employees who work for our company worldwide – interacting with customers, partners, suppliers and many other stakeholders. Every interaction offers various opportunities for the sustainable further development of our organization. At the same time, however, these interactions also harbor risks. That's why it's important to think about our vibrant compliance culture in everything we do and to act accordingly. The fact that Hellmann also considered the topic of compliance to be particularly relevant in the materiality analysis reflects the high value that our company and its people place on it. We want to maintain this and to continue to actively strengthen it.“
Supplier evaluations and human rights
Actively shaping the integration of sustainability efforts starts within the company itself and extends throughout the supply chain. This is because companies also have an impact on the environment and society along the supply chain. At the beginning of 2023, the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG) came into force, which provides for defined structures and, in the future, a detailed report on human rights and environmental issues. In this way, human rights are to be sustainably protected in global supply chains, while simultaneously preventing negative impacts on people and the environment caused by economic activity.
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Hellmann buys additional transport capacity in all product areas and purchases related services from carriers and other logistics companies. Against this backdrop the company had already introduced a third-party due diligence policy in 2019. In it, Hellmann commits to conducting business with a high level of ethics, integrity and compliance with all applicable laws. As part of this commitment, it is essential to be aware of the third-party companies with which a business relationship is entered into so that only reputable and trustworthy third-party companies that share these values are engaged. The policy provides the guidelines for the careful evaluation of all third-party companies and sets out the requirements for the selection and management of third-party companies. Furthermore, suppliers are also evaluated on environmental criteria on a regular basis and in accordance with the requirements of ISO 9001. In addition, the Management Board adopted a policy statement on human rights in December of the reporting year and expanded the existing compliance whistleblower hotline. Supervision of the topic was assigned to the management of the finance department. In the reporting year 2022, a total of six complaints regarding human rights violations were received via the hotline. These were processed and resolved accordingly by the Compliance Officer and the HR department.
The overall process resulting from the policy statement will be fully implemented for the first time in 2023 and, in addition to a risk analysis, also provides for the implementation of preventive and remedial measures. As part of this, targets will also be defined and integrated into the regular management reporting. In addition, one of the company's goals is to enable and motivate its suppliers in the future to continuously increase their climate protection activities in order to prevent or minimize any resulting human rights violations. The overall process will be rounded off by regular effectiveness monitoring in the future and annual reporting starting in fiscal 2023.
The business relationship with suppliers begins with the initiation of business and the placing of orders. Sustainability criteria have already played an important role in the past, both in the company's own employee code of conduct and in the code of conduct for suppliers. For 2023, Hellmann has planned to integrate further sustainability criteria into its purchasing policy, so that even more emphasis will be placed on the ambition of harmonizing environmental, social and governance issues. In addition, there will be an examination of which options for sustainability assessment can be implemented by all major suppliers and can be looked at in more detail if necessary.
Sven Jansen, Human Rights Officer:
”Sustainability and, in this context, fair and resilient supply chains have always been important to us at Hellmann and are part of our corporate principles. With the entry into force of the Supply Chain Act in Germany and the accompanying legal anchoring, the protection of human rights in global supply chains will be improved. As a company that has always valued the individuality of each person, one of our key concerns is to ensure that our global supply chains also respect and protect human rights.“
