Climate protection

The goal of aligning our business activities with climate protection has been a focus for the Otto Group for decades. As an important step towards this, we have developed a near-term Science-Based Target (SBT) that addresses our entire value chain.

Near-term science-based target

We want to achieve that our goals and activities are aligned with the 1.5-degree target of the Paris Climate Agreement. Therefore, in 2022, we committed to developing a comprehensive Science-Based Target (SBT) that addresses our entire value chain. The SBT is a scientifically-based reduction target for greenhouse gas emissions that is in line with the 1.5-degree target of the Paris Agreement. We submitted our SBT for validation to the Science Based Target Initiative (SBTi) in spring 2023 and successfully completed the validation process at the end of February 2024. Our goal is to reduce our absolute greenhouse gas emissions across the entire corporate group by 42 percent compared to the fiscal year 2021/22 by the end of the fiscal year 2031/32.

Sub-target 1: Absolute scope 1 and 2 greenhouse gas emission reduction by 42 percent by the end of the financial year 2030/31 compared to the financial year 2021/22.
Sub-target 2 (Supplier engagement): At least 75 percent of third-party brands based on purchasing volume and at least 20 percent of marketplace partners based on Gross Merchandise Value (GMV) have set an own SBT, that was validated by the SBTi, by the end of the 2027/28 financial year.
Sub-target 3: Absolute reduction in Scope 3 greenhouse gas emission by 42 percent by the end of the financial year 2031/32 compared to the financial year 2021/22.

Reference SBTi: The official target formulation can be viewed on the SBTi website: https://sciencebasedtargets.org/target-dashboard

Emissions at our own locations

We aim to achieve our climate goals by consistently avoiding and reducing emissions. It is possible to reduce emissions. For instance, we have more than halved our CO₂ emissions in our own operations from 2006 to 2020, and by the end of 2023, we have further reduced them by an additional 30 percent compared to the base year of 2018 – completely without compensation.

In addition, we continue to work on gradually switching to electricity from renewable sources at our own locations. The share currently stands at 77 percent worldwide. The aim is to increase this share further. We are also leveraging the potential of our locations by installing solar systems (Frankonia), combined heat and power plants (Hermes Fulfilment), and geothermal energy (Hermes Einrichtungs Service). However, we see the largest levers for reducing our greenhouse gas emissions in our upstream and downstream supply chains.

Emissions in the supply chains

In our own business processes, we have already achieved a lot; however, a significant portion of greenhouse gas emissions in our supply chains occurs during the production of goods – known as Scope 3 emissions. Here, we pursue a collaborative approach to support factories in the upstream supply chains in improving their ecological performance, for example, through training and workshops. Even though these emissions are only indirectly caused by our business activities and are difficult to influence, we focus on reducing them.

The Otto Group is a member of Cascale (formerly the Sustainable Apparel Coalition), which provides the Wordly Higg Facility Environmental Module, a tool for the standardized collection of ecological metrics along supply chains. In the 2025/26 financial year, this made it possible to determine the environmental performance of over 600 factories. In addition, the Otto Group uses the digital platform Ren Energy to identify potentials for renewable energy at individual suppliers and to calculate the costs for the transition. Through Ren Energy, the Group can promote the use of renewable energies among its suppliers in order to achieve the near-term SBT.

A relevant part of our emissions is generated during the use phase by our customers, in the so-called downstream supply chain. We want to address these emissions, for example, through purchase incentives for energy-efficient appliances at OTTO.

Emissions in logistics

In the field of logistics, the Otto Group is working on various measures to reduce emissions. This includes, among other things, lower-emission drive systems and last-mile delivery solutions that produce no direct exhaust emissions during operation. The goal is to reduce air pollutant and greenhouse gas emissions in the delivery process.

Last mile: In the area of logistics, Hermes Germany is implementing various measures to reduce emissions and, since the end of the 2025/26 financial year, has been using delivery solutions on the last mile in more than 80 German city centres that produce no direct exhaust emissions during operation. In line with the Group-wide near-term SBT, Hermes Germany aims to carry out 85% of deliveries in this way by no later than the 2031/32 financial year. The expansion of the e-vehicle fleet, delivery by cargo bike, the use of ParcelShops, and the use of data-based route planning, among other things, contribute to this.
Data-based route planning: The data-based and dynamic optimization of delivery sequencing and routing supports a more efficient design of delivery processes. The goal is to improve driving sequences (less stop-and-go) and to use available transport capacities as efficiently as possible.
Low-emissions on the long haul: On longer transport routes, alternative drive technologies are currently not yet widely available. The Otto Group is therefore testing various approaches for the use of alternative drives. For instance, Hermes Germany is successively expanding its own fleet with alternative drive solutions such as e-trucks and hydrogen trucks, and is utilizing technological progress to make more and more transport kilometers emission-reduced. The continuous expansion of the charging infrastructure supports the electrification of the fleet and contributes significantly to the decarbonization of the industry. For transports from the port to the warehouse, OTTO is currently testing the use of electromobility on the long haul with three e-trucks. In addition, Bonprix has been using an e-truck in Germany since July 1, 2025. This saves around 46.5 tons of CO2 per year on its route between Hamburg and Haldensleben compared to a diesel truck.
ParcelShops and preferred delivery: ParcelShops and alternative delivery options can help make delivery processes more efficient. By expanding the ParcelShop network, shipments are bundled at central pickup points. In addition, solutions such as delivery to neighbors or preferred delivery offer additional opportunities to organize delivery processes in a more demand-oriented manner and to avoid multiple delivery attempts.
Shipping Transport: Maritime transport plays an important role in international trade. At the same time, the operation of ships generates greenhouse gas emissions as well as other air pollutant emissions. Therefore, the Otto Group is investigating different approaches to reduce emissions in maritime transport. Against this background, OTTO is cooperating with GoodShipping. Instead of heavy fuel oil, the company uses a biofuel mix from various waste streams (so-called "second generation"), such as used cooking oil and fats from food production, to refuel container ships. These fuels can be used as an alternative to conventional marine fuels. According to GoodShipping, the fuels used can be associated with lower greenhouse gas emissions compared to conventional heavy fuel oil. The exact level of savings depends, among other things, on the fuel type, the origin of the raw materials, and the respective calculation methods. In addition, the ships do not need to be retrofitted for this. According to the company, GoodShipping's biofuels are tested, among other things, according to international certification standards such as ISCC (International Sustainability & Carbon Certification) and RSB (Roundtable on Sustainable Biomaterials). The aim of these standards is, among other things, the traceability of the raw materials used and ensuring that existing waste streams are utilized and no competition with food production arises.

Peatland conservation project "toMOORow"

Peatlands store more carbon than any other ecosystem in the world – when they are intact. Together with OTTO, Bonprix, Hermes Germany, the Witt Group, and Systain Consulting, the Otto Group therefore supports the peatland conservation project "toMOORow" for the rewetting of peatlands in order to demonstrate concrete solutions for climate and nature protection.

toMOORow is implemented by the Environmental Foundation Michael Otto in partnership with the Michael Succow Foundation, partner in the Greifswald Mire Centre. The goal is to create functional peatland landscapes through systematic rewetting that can store carbon in the long term. Additionally, the peat areas are to be wet-managed (so-called paludiculture) to generate biomass for value chains in the future. The Otto Group and its subsidiaries OTTO, Bonprix, the Witt Group, Systain Consulting, and Hermes Germany support the restoration in the long term to make concrete contributions to climate and nature protection.

The symbolic groundbreaking ceremony in the Sernitz Moor near Angermünde in Brandenburg in early April 2025 marks the beginning of the concrete rewetting of peatlands.

The following video is only available in German.