Digital postbox redefining communication solutions for modern postal challenges

Digital Postbox

It is with great excitement that I introduce you to this comprehensive discovery of postal digitalisation, through our whitepaper

Digital Postbox: Redefining Communication Solutions for Modern Postal Challenges.

As part of the process, we commissioned Triangle Management Services to survey 179 participants across 74 posts, where 72% came from the EMEA region, 17% from the Americas and 11% from Rest of the World. We further interviewed leaders within the postal industry, to provide qualitative perspectives as well.

e-Boks is a PostNord affiliated organisation, and globally leading provider of secure Digital Postboxes that enables efficient communication between public authorities, citizens and businesses

Dame Damevski Director, International Markets at e-Boks

Foreword Navigating the Landscape

In the ever-changing world of postal services, the industry faces significant challenges, from the decline in traditional letter volumes to the imperative shift towards digitalisation. “Digital Postbox: Redefining Communication Solutions for Modern Postal Challenges” embarks on an exploratory journey, setting the stage for a discussion on the evolving dynamics within the postal sector. This whitepaper aims to introduce the reader to the complexities and opportunities that lie ahead, paving the way for an examination of how tech & policy innovation and postal services can be combined to redefine the position of postal operators.

Key Findings: A Path to Innovation

The heart of this whitepaper lies in its revelations about the Digital Postbox, as an emerging channel within the postal ecosystem. We lay the groundwork for understanding the growing consensus on the value of digitalisation in mail services. We aim to highlight the Digital Postbox’s role within the digital public infrastructure, paving the way for a deeper dive into its impact on the future of postal services and positioning postal operators as omnichannel communication providers.

Sustainability and Societal Efficiency

We draw attention to the global emphasis on sustainability and institutional efficiency, particularly under the UN Sustainable Development Goals 12, 13 and 16, which focus on responsible consumption, combating climate change, and the realisation of effective institutions. Our discussions in this whitepaper centres on exploring the role of Digital Postboxes and its impact on the above-mentioned goals for postal operators.

Omnichannel Providers of the Future

It varies significantly how prepared postal operators across the world are to adopt digital solutions. Therefore, we delve into what a feasible timeframe for postal operators to consider integrating a Digital Postboxes looks like, and the impact it may have on postal operators to become fully functioning omnichannel providers catering to both physical and digital communication.

A Bridge Between Physical and Digital

Digital Postbox: Redefining Communication Solutions for Modern Postal Challenges envisions a future where the postal sector not only adapts to digital transformations but also emerges as a communication backbone, seamlessly bridging the gap between physical and digital realms. By addressing the imperatives of sustainability and societal efficiency, this whitepaper paves the way for a reimagined and more resilient postal sector.

Join us as we explore the transformative potential outlined in the whitepaper in front of us. Together, let us embark on a collaborative journey for strategic, tech and policy alignment towards a future where the postal sector not only endures but thrives in the face of unprecedented change.

CHAPTER I The Analysis

Introduction

The postal sector remains a core element within the global communication ecosystem, surpassing geopolitical boundaries enabling universal connectivity among individuals, businesses, and the governments.

In addition to its foundational function as a nationwide communication infrastructure, and postal network, the traditional postal operator serves as an increasingly important infrastructure for e-commerce and its evolving logistical demands. Nevertheless, the industry overall confronts a spectrum of challenges, ranging from enduring disruptions caused by global crises such as the COVID-19 pandemic, to the transformative mega-trend shifts in consumer behaviour instigated by the digitalisation.

Postal operators have since several years begun to predominantly orient their investment cycles towards parcel delivery, a transition influenced by several interrelated factors. This shift reflects alterations in consumer purchasing patterns, the evolving demands and expectations of customers concerning the delivery process, and the impact of the COVID-19 pandemic coupled with the surge in e-commerce activities. Additionally, this trend is partially attributed to the inevitable decline in traditional letter distribution, compelling postal services to seek alternative revenue streams and optimise their existing operations for maximum financial yield.

For more than a decade, the industry has further been facing a free fall decline in mail volumes. According to a study by Statista, the number of letters distributed worldwide decreased by close to a third (1/3) between 2011 and 2020, from 360 billion to 263 billion. The International Postal Corporation (IPC), in its Global Postal Industry 2023, observed an accelerated global downward spiral in domestic letter-post volumes, noting a staggering decrease of 14% in 2020, followed by drops in the area of 6% in 2021 and 2022.

Non-mail revenue, principally last mile parcel delivery and financial services, account for the significant part of both the growth and revenue margins. While mail remains an important part of the business, most postal operators are transforming their businesses into, diversified, hybrid postal organisations with a diversified portfolio of products and services – parcels, logistics, banking, insurance, eCommerce and digital activities. For many posts, parcels and logistics operations now represent the largest revenue share.

Trend Analysis 2019-2021

Parcels: +33.6%, Letter Post: -13.6%

Pre-pandemic parcel growth trend: +7.5%

Pre-pandemic letter post decline trend: -2.8%

YoY 2019-2020 Parcels Letter Post

17.60% -14.00%

Postal services have been compelled to adapt to this evolving trend by embracing new technologies and communication channels. A common example of this adaptation is the development of postal mobile applications, to digitally enhance customer engagement. Presently, the functionality of many such applications is primarily restricted to offering services like parcel and letter tracking updates, digital stamps, and sending/receiving image scans of incoming letter mail.

On the policy side, a rather conservative postal regulation framework remains in most countries, with the designated postal operators continuing in their commitment to fulfilling its traditional public service mandate with nationwide deliveries 5 to 6 days weekly, under a one price goes anywhere principle. This commitment encapsulated in the Universal Service Obligation (USO), pointing to obligation of delivery of an affordable, reliable, and ubiquitous postal service to all citizens. Not surprisingly, the sustainability, and the utility of the USO faces escalating challenges, primarily driven by the decline of the mail volume, the effects of market liberalisation, and changing consumer preferences. Ultimately, the effects of letter mail volume decline on delivery prices have been increasing significantly in recent years, while majority of the posts in developed markets experiencing operating deficits in their mail divisions. The recent UPU Global survey* reveals common concerns among policymakers, regulators, and designated postal operators, indicating that the services provided under the USO becoming financially unsustainable and services provided under the USO no longer meet the needs of citizens as top-ranking worries impacting the future of the Postal Sector.

These developments are prompting national governments and the designated postal operators to reconsider the frequency of mail delivery and adjusting prices. Notable examples include Denmark and Australia. Denmark, with its high digital post acceptance, has taken significant steps, initially, in 2014 shifting the government-to-citizen communication to digital channels, and finally, leading to

the historic, bold, policy decision of the abolishment of its Universal Service Obligation – effective from January 1, 2024. Similarly, Australia, and other markets are proposing amendments to its postal acts, suggesting that letters be delivered on alternate days, downsizing of postal networks, among other.

As widely recognised, the structural decline in letter volumes is chiefly attributed to digitalisation and electronic substitutes, which as this white paper reveals, paradoxically is also the postal sector prospective rescuer and enabler of evolutionary relevance in its core domain as societal communication platform and infrastructure. This central theme of re-inventing the traditional postal operator as omnichannel networks, connecting the digital and physical communication is extensively explored throughout this white paper. Driven by factors such as convenience, new ways of customer engagements, time & cost efficiency, security, and finally environmental & sustainability awareness, all stakeholders – ranging from government institutions to large and small corporates –along with majority of citizens, are increasingly choosing to interact and correspond digitally. In a world where the greater part of population is principally native to electronic communication, the traditional postal operator’s role as nationwide communication platform is obsolete.

This fundamental trends and shifts raise pivotal questions about the postal industry’s readiness and capacity to combine this novel channels. Does the digital realm offer a supportive role, or is it perceived by postal operators as a threat, further contributing to the decline in traditional letter volumes and overall societal relevance? Are we approaching a global wave of postal regulatory reform, prompting the future role of the post? Is the future of the postal operator an integral part of the digital public infrastructure, as an omnichannel societal communication platform? This whitepaper aims to address these and other critical considerations, potentially marking a significant turning point for the industry.

*Outcomes of consultations for future strategy development, Global survey results June–December 2023, Universal Postal Union.

Perceptions of Digital Postal Services

The prioritisation of digitalisation and transformation in postal services is rapidly increasing, with a focus on service-diversification for new revenues & relevance and streamlining processes for greater efficiency.

Globally, postal operators are increasingly embracing new technologies to enable flexibility of their delivery methods and processes, aiming to diversify and align their offerings more closely with customer needs and expectations.

The Universal Postal Union (UPU) reports that over 93% of postal services globally offer some form of digital postal services, either independently or through collaborations and partnerships. Concurrently, 73% of these services have indicated an escalation in their investment towards digital postal services, a testament to the increasing significance and expansion of digitisation within the sector. Additionally, 70% of postal services are forging partnerships with private companies to enhance agility, share risks, and alleviate financial pressures. Frequently, it is wiser to outsource or depend on third-party providers and experts who can deliver a more competitive and distinctive array of solutions, rather than incurring high costs through lengthy internal development.

The array of digital postal services most frequently provided by postal operators encompasses online tracking and tracing, electronic post, and extends to electronic government and e-commerce services. These include digital identities, national marketplaces, electronic payments, and e-logistics. This range of offerings is a clear indication of the sustained pace of innovation & diversification within the postal sector.

In this whitepaper, we have queried postal professionals regarding which postal products they associate with digital postal services, seeking to gain deeper insights into their digital strategies.

When you think of digital postal services, which postal products do you know of?

Mail & parcel tracking

Electronic registered mail

Digital stamp

E-Payments

Distribution of digitised letters

E-Signature

E-Postcard

E-Vote

86%

It is unsurprising that the most prevalent and established digital services, such as tracking (chosen by 86% of respondents) and digital registered mail (64%), were the most frequently cited. In contrast, less commonly utilised or adopted services, such as electronic voting (26%) or more supplementary applications of digital technology like digital postcards (40%), did not feature as prominently in the responses. This disparity reflects the varying levels of adoption and integration of digital services within the postal sector.

The transformation of tracking from a premium option to a standard feature in most delivery services, widely utilised, accounts for its prominence in the minds of respondents. Conversely, services such as electronic voting and electronic signatures, being less frequently used compared to tracking, are not regarded as a high priority.

Honing down on the wider available digital services and how these can be applied to the postal sector, how aware are postal operators about what a Digital Postbox is and what services and benefits it offers?

How would you define a Digital Postbox?

Agree Highly disagree Highly agree

A Digital Postbox Platform that is owned by the postal operator, connecting government institutions, businesses & citizens in a secure, authenticated & compliant environment

A vital communication platform and integral part of the digital public infrastructure

A secure digital platform where end-users receive, access, take actions, respond, and manage their digital mail in a life-long secure digital archive of important information

The respondents could select one option for each definition given, ranking from highly disagree (1), to agree (3), to highly agree (5).

When inquired about their understanding of a Digital Postbox, 91% of the respondents agreed to highly agreed with the definition being ‘a Digital Postbox platform owned by the postal operator, facilitating a secure, authenticated, and compliant connection between government institutions, businesses, and citizens.’ This perception, however, overlooks the role of external suppliers, presupposing the postal operator as the sole proprietor of the service.

93% agreed to highly agreed with defining it as ‘a secure digital platform where end-users can receive, access, act upon, respond to, and manage their digital mail, maintaining a life-long, secure digital archive of significant information.’ Here, the emphasis is on security, highlighting the Digital Postbox’s role in safeguarding users against unsolicited mail, advertisements, phishing attempts, viruses, and spam.

The least agreed-upon definition of a Digital Postbox among respondents was that of ‘a free e-mail service’ akin to Gmail or other similar providers. In contrast to a webmail service, a Digital Postbox operates within a closed network. Owing to its secure electronic ID login process, access is restricted exclusively to verified and authenticated senders and receivers. A Digital Postbox provides each user comprehensive control over both the recipients of their communications and the incoming communications they receive. This distinct separation sets a Digital Postbox apart from a conventional e-mail account.

Given that this definition was the least favoured, it appears that respondents recognise that a Digital Postbox represents a more intricate, advanced, and secure solution compared to standard webmail services.

Digitisation Adoption

Utilising Digital Postbox proposition presents several advantages. While enabling the postal organisation to diversify its delivery methods and proposition, and generate new revenue streams, it is crucial to retain its position as a critical state infrastructure in an increasingly digital world.

There is also significant contribution to productivity by liberating resources previously dedicated to manual processes associated with handling physical letters and documents.

This transition also leads to a reduction in transaction and distribution costs. Moreover, the data security and GDPR compliance are sustained due to the closed and encrypted nature of a Digital Postbox’s network. Environmental benefits are also notable, as digitisation implies fewer vehicles on the roads, consequently reducing CO2 emissions and traffic congestion, in addition to curbing the necessity for paper usage. However, questions arise regarding the postal operators’ capacity to assimilate these benefits. Is the traditional postal operator prepared to adopt such technologies?

According to our survey, 54% of respondents indicated that their organisation would consider, or is already considering, the adoption of a Digital Postbox. More notably, 30% of respondents disclosed that their organisations were already utilising a Digital Postbox solution. Only 17% were not contemplating the adoption of this technology, and interestingly, 37% of this latter group had previously identified a Digital Postbox as a free e-mail service, suggesting a potential disconnect in understanding the true potential and capabilities of a Digital Postbox.

From a geographical standpoint, Europe appears to be significantly ahead in the adoption or planning stages of implementing a Digital Postbox when compared to other global regions. Among the EMEA respondents, 40% confirmed the current usage of a Digital Postbox solution, a stark contrast to 0% in the Americas and 8% in ROW (rest of world). In terms of considering adoption, 63% of respondents from the Americas and 54% from ROW are intending this move, compared to 52% in Europe. This indicates both a gap and a potential for growth and development in the Americas and ROW.

Among the 17% of respondents disinclined to use Digital Postboxes, the distribution was 37% in the Americas, 37% in EMEA, and 26% in ROW.

53% of respondents planning to adopt a Digital Postbox indicated a timeline within the next 1-3 years, with an additional 21% expecting adoption within a maximum of five years. This demonstrates a clear commitment from postal operators towards a cleaner, more streamlined, and direct delivery process.

Would your organisation consider the adoption of Digital Postbox?

Already using a Digital Postbox solution

30%

Yes

54% No 16%

If yes, when are you planning to implement it?

Further in the future

26% 21%

53%

1-3 years from now 3-5 years from now

Of the respondents choosing Yes, a new question would be given to indicate a timeframe for when. Only one option could be selected.

74% of the respondents planning to adopt a Digital Postbox foresee doing so in the near future

What digital postbox features would you consider most useful from the point of view of a postal operator?

Most important

Least important

2.5

3.0

3.5

3.6

4.7

5.1

5.6

The respondents were asked to sort the features, with the most important feature being on top with a score of 1, and the least important feature being at the bottom with a score of 7.

Among those contemplating the adoption of Digital Postboxes in the more distant future, 62% were based in the EMEA region, predominantly in Africa, a trend likely linked to resource and infrastructure constraints.

In examining the benefits of Digital Postboxes, respondents were asked to sort and rank key features of such a service to illustrate which they deemed most advantageous (1 being most important, whilst 7 is least important). Delivery speed was identified as the foremost benefit, achieving an average rank of 2.5. The instantaneous distribution of letters mitigates numerous issues: it circumvents potential delivery failures, reduces fuel consumption and fleet maintenance costs, decreases road traffic and consequent CO2 emissions, and assures instant and consistent delivery.

Security and privacy were also highlighted as crucial, with an average rank of 3.0. As previously mentioned, a Digital Postbox not only guarantees legitimate correspondence but also ensures all communication occurs on an encrypted platform accessible solely to verified users, thereby eliminating spam, phishing attacks, or unsolicited commercial mail.

The immediacy of distribution is accompanied by the sender receiving notification upon the recipient’s reading of

the letter (3.5), addressing the issue of delivery failures, and confirming receipt.

Convenience is another significant factor. In an era where online banking prevails and physical bank branches are declining, the ability of a Digital Postbox to facilitate signatures and payments directly within digital correspondence (3.6) enhances the user experience. This feature enables not just receipt of bills or documents but also identity verification and online financial transactions.

Digital Postboxes can be tailored to suit the needs of most organisations. Their intuitive interfaces facilitate easy management and monitoring by organisations and allow for potential integration with other platforms, systems, or services (4.7).

Although the necessity to refer to old correspondence may not be pressing, having an archive of sensitive documents and bills accessible via a mobile device is a considerable improvement, precluding the need for physical letter accumulation (5.1).

Lastly, the visibility and accessibility provided by Digital Postboxes are advantageous, as users can easily view their mail online, access information, and take necessary actions if required (5.6).

The Role of Postal Operators

In a world increasingly characterised by digital interaction, the importance of security, privacy, and convenience in communication for citizens and consumers is undeniable. To maintain relevance and compliance, governments and businesses must evolve to align with changing communication and interaction preferences.

As highlighted in the previous section, a notable trend in many European countries is the embrace of digital post solutions for citizens. While most postal operators are not completely forsaking established systems, they are increasingly adopting a hybrid approach, thereby transitioning towards becoming “smarter” post offices. This model allows citizens the option of continuing to receive physical mail, yet a significant number have transitioned to omnichannel offering, including Digital Postbox for receiving critical and sensitive documents, like correspondence from banks, municipalities, doctors, employers etc.

Postal operators should aim to enhance connectivity and interaction with their customers. The benefits and features of digitalising mail delivery foster more direct, fluid, and open communication channels. The read receipt feature, where the sender is notified once the recipient has read the mail, exemplifies this enhanced interaction. Similarly, digital signatures and other forms of digital ID facilitate immediate responses and actions by recipients.

The strategic utilisation of data will be crucial in determining the role of postal operators and their journey towards digitisation. Leveraging delivery network data enables the postal industry to make more informed, customer-centric strategic decisions. Indeed, a survey conducted by Escher (in collaboration with Triangle) revealed that 94% of postal companies plan to employ data analytics to gain a deeper understanding of their customers.

In an increasingly digital world, security, privacy, and convenience are key for citizens and consumers as to how they communicate. To remain relevant, yet compliant, governments and businesses must adapt to meet the evolving communication and interaction preferences.

Highly disagree

Agree

Highly agree

2 3 4 5

The existing Universal Service Obligation (USO) scope is our guiding principle, and our relevance ends in the physical letter/parcel world

Postal operators should opt for a proactive approach in embracing digitisation, capitalising on the opportunities that the modern era can provide

Postal operators are the unique bridge of the physical and digital ecosystems (phygital) and omnichannel communication platform proposition sits at the core of the future of post

Policymakers, regulators, and industry groups will see the postal operator as a vital part of the digital communication infrastructure

A lack of coordination in digitisation efforts across government and industry, combined with the absence of a national Digital Postbox system, has resulted in a multitude of customer communication platforms in the public and private sectors. This has led to a cluttered digital landscape with low user engagement and heightened security concerns.

The respondents could select one option for each definition given, ranking from highly disagree (1), to agree (3), to highly agree (5).

92% of respondents in this whitepaper agree to highly agree that postal operators should adopt a proactive stance towards digitisation, leveraging the opportunities presented by the contemporary era. As previously mentioned, according to the Universal Postal Union, 73% of postal services have augmented their investment in digital postal services. The digital transformation within the postal industry is an incontrovertible reality, increasingly influencing various facets of delivery services, particularly in relation to letters. Despite a decrease in volume, letters remain a critical service for all postal operators. The debate is not about whether to cease letter delivery but rather about how it should be conducted. 32% of respondents highly agreed, whilst only 3% highly disagreed, that a lack of coordinated digitisation efforts between government and industry has led to an array of customer communication platforms across public and private sectors, resulting in a fragmented digital landscape characterised by low user engagement and elevated security concerns. Governments and postal operators should articulate their intentions, proposed uses, and benefits of digitisation and Digital Postboxes clearly to foster public adoption and interaction. The more transparent and coherent the strategy

Governments should clearly communicate digitisation benefits to enhance public acceptance of digital postboxes and foster interaction

Omnichannel communication platform is central to the future of post

and communication, the greater the likelihood of widespread acceptance of such technologies.

Postal operators need to evolve not only in their activities but in their methods. 87% of respondents agreed to highly agreed that postal operators serve as a unique conduit between the physical and digital ecosystems, with an omnichannel communication platform being central to the future of post. While a physical and tangible element of the delivery process will persist, a degree of transformation is imperative for postal services to maintain their relevance. Policymakers, regulators, and industry groups should clearly delineate the role of postal operators and the implementation of digital solutions, considering the postal operator as an integral component of the digital communication infrastructure.

The Importance of Mail and Digitalisation

88% of the respondents agree to highly agree that it is advantageous for governments to endorse a nationwide, secure Digital Postbox platform as a component of the digital public infrastructure.

National postal services predominantly operated or subsidised by governments, ought to have a definitive mandate (79% agree to highly agree) to deliver a consistent level of service to the public. In this context, digital services may represent the progressive direction for the provision of postal services.

In a sector wide pursuit to “Win the parcel business”, it appears that the traditional postal operator is not only underemphasizing the mail/letter proposition, but their essential societal role as a relevant communication infrastructure

Highly disagree Highly agree

Postal Operators undoubtedly struggle to re-adjust their society relevance as a citizen’s communication platform

A letter/mail omni-channel offer will reposition and enable the Postal Operator to be a relevant customer/citizen communication platform

There is a clear need for Postal Operator’s mandate of the role as a facilitator of digital communication

A Digital Postbox is a vital new channel and diversification proposition for the Postal Operator

It is in the interest of the government to support a nationwide secure Digital Postbox platform as part of the digital public infrastructure

The respondents could select one option for each definition given, ranking from highly disagree (1), to agree (3), to highly agree (5).

Respondents principally perceive the Digital Postbox as an essential new channel and diversification strategy for postal operators, with 83% of respondents agreeing to highly agreeing compared to 17% disagreeing to highly disagreeing. With customers increasingly demanding swifter delivery and enhanced security and privacy, many are turning to Digital Postboxes to bridge the gap between digital and physical delivery and to augment public interaction.

The survey also reveals a strong consensus among respondents that postal operators face considerable challenges in redefining their societal relevance as a communication platform for citizens, with 82% agreeing to highly agreeing. Some operators lack the necessary resources, foresight, motivation, or are entrenched in traditional methods, showing reluctance to deviate from established delivery models. This is also reflected regarding the belief that an omnichannel approach to letter/mail delivery would reposition postal operators as a relevant communication platform for customers and citizens (78% agreeing to highly agreeing).

Finally, with a wide consensus 88% of respondents believe, it is in government’s interest to educate the public on the advantages of digital communication and the benefits it offers, thus supporting the notion of nationwide Digital Postbox platform as part of the digital public infrastructure.

Respondents view digital postbox as crucial for postal diversification strategy, and relevance enhancement

Green Agenda

The environmental implications of transitioning from physical to digital mail delivery are markedly beneficial, ranging from reduced urban traffic and harmful emissions to diminished packaging and paper usage.

This transition is aligned with the growing global emphasis on environmental stewardship, as part of the UN Sustainable Development Goals (SDGs), and specific to Sustainable Development Goal 12, and 13.

In 2021, the Universal Postal Union (UPU) member countries ratified Resolution C/17, granting the organisation a mandate to establish achievable global emission reduction targets and bolster knowledge and capacity building. This initiative aims to enable postal operators to lower their emissions and develop climate-resilient strategies. Progressing to the 2023 Extraordinary Congress, members advanced this agenda by endorsing an integrated “Green Package”, encompassing:

• Voluntary UPU emission reduction targets, including a global objective of 85% carbon reduction by 2050, accompanied by corresponding implementation plans.

• Provision of financial support for climate-related projects, systemic institutional backing to facilitate comprehensive climate action, capacity building, and resource mobilisation.

• Encouragement of collaboration within the UPU network and the broader postal sector on climate action initiatives.

Climate change and heightened environmental consciousness have undoubtedly placed significant pressure on postal operators. However, this has concurrently acted as a catalyst for the adoption of greener, more efficient solutions and strategies utilising current technologies. From transitioning to electric vehicles and implementing emission-reducing out-of-home delivery solutions, route optimisation, to waste reduction and digitalising letter distribution, postal operators have made considerable strides in their corporate social responsibility (CSR) strategies over the past five years.

The UPU Extraordinary Congress recently approved a ‘green package’ setting voluntary climate action targets for the postal sector.

Highly disagree

Agree

Highly agree

2 3 4 5

The future of the Postal Operator will be increasingly influenced by the topic of environmental sustainability

3% 21%

Physical letter distribution considerably affects your organisation’s CO2 emissions, and resource used. 5%

Implementing an alternate-day Universal Service Obligation (USO) frequency will considerably reduce our CO2 emissions.

5%

Out of home parcel delivery is the future of economically and environmentally sustainable last mile parcel market

The respondents could select one option for each definition given, ranking from highly disagree (1), to agree (3), to highly agree (5).

96% of respondents in this whitepaper agreed to highly agreed that the future trajectory of postal operators will be increasingly shaped by environmental sustainability concerns. Driven by public opinion, competitive actions, UPU resolutions, or genuine environmental concern, a majority of postal operators are now developing more comprehensive and integrated CSR strategies.

The assertion, while perhaps self-evident, is substantiated by a significant proportion of respondents (85% agreeing or highly agreeing) who acknowledge that physical letter distribution markedly impacts an organisation’s CO2 emissions and resource usage. The process of delivering mail in its traditional paper form necessitates deploying vehicles and postal workers for physical delivery, inevitably

exerting an environmental toll and consuming time and resources. Nevertheless, transitioning to a paperless system may represent the least environmentally detrimental option available.

The respondents widely recognise that implementing an alternate-day USO frequency shall significantly reduce CO2 emissions (83% agreeing or highly agreeing), suggesting that less frequent mail delivery would be less environmentally damaging.

However, this raises a pertinent question: if governments and postal operators are contemplating such a change, why not embrace a digital approach as part of a balanced omnichannel delivery proposition.

Conclusion

In summary, the whitepaper compellingly advocates for the Digital Postbox as a critical component for the future of postal services. It calls for a collaborative, forward-thinking approach to turn challenges into growth opportunities, ensuring sustainability and enduring societal relevance of the postal operator in the digital age.

As the industry grapples with existential challenges of future relevance, the whitepaper offers a timely guidance for the postal sector to re-imagine its societal role as an omnichannel communication platform. It emphasises the Digital Postbox’s potential benefits, from efficiency gains to environmental impact reduction, positioning it as a comprehensive solution for modern demands.

The willingness of postal operators for this transition is evident, with a substantial percentage already considering or adopting Digital Postbox solutions. The whitepaper defines a new role for postal operators, extending beyond its traditional mandate to become enablers in the convergence of physical and digital realms, as a vital part of the digital public infrastructure. An omnichannel

communication platform emerges as essential for sustained relevance, where governments, regulators, and industry stakeholders must align policy & strategies for a continuous transition to a digital future.

In this journey toward postal digitalisation, partnering with accomplished industry leaders, such as e-Boks, is of strategic importance. Such collaboration empowers the sector to harness market expertise and technologies, ensuring timely delivery of proven, secure, efficient, and compliant digital communication platforms. By aligning with seasoned partners, postal operators position themselves to avoid delays, navigate talent shortages, and overcome budget constraints, inherent challenges of the postal sector.

CHAPTER II The Interviews

Introduction

Triangle has had the distinctive pleasure to interview a number of postal industry leaders from their network on behalf of e-Boks, to further enquire about how their unique organisation view and are preparing and strategising towards postal digitisation.

The opinions and views expressed below come directly from the source and e-Boks and Triangle have been given consent to share these thoughts with the wider audience.

e-Boks and Triangle wants to thank the experts for their time and for giving us permission to share their thoughts with you.

Charles Brewer Group CEO Pos Malaysia

1. In an era where the physical letter industry is under immense pressure due to alternative means of digital communication, which initiatives is your company undertaking to preserve its relevance as a public communication actor between government and businesses, and the citizens?

Established in the early 1800s, Pos Malaysia has been connecting Malaysians for more than 200 years. As Malaysia’s trusted mail and parcel service provider, Pos Malaysia delivers more than 325 million letters and 27.5 million parcels per annum, delivering to more than 11 million addresses across the nation. Our focus on our amazing employees, our customers, fostering a culture of innovation and agility has ensure Pos Malaysia continues to adapt to the ever-changing needs and environment it operates in.

At Pos Malaysia, we are guided by our Purpose: we are passionate about building trust to connect lives and businesses for a better tomorrow, and under-pining our transformation we focus on three key strategic pillars:

1) Having Highly Motivated, Engaged and Safe Employees

We do this by focusing on our Leaders and their skills to drive Employee Engagement, Transformational Talent Development, embracing Diversity, Equity & Inclusion, and Safety, both physical and mental wellness.

2) Delivering A Great Service and Delighting Our Customers

We put the customer at the heart of all that we do –delivering an amazing experience. And the result speak for themselves:

• Net Promoter Score (NPS) of 94 for Retail

• Parcel next day delivery at ≥94%

• Mail Service Level at ≥96%

sustainability, and whilst we still have a way to go, we

Consistently reducing costs, optimizing the network, focusing on the right customer segments, has all led to continued fiscal improvement

• Our strategy includes addressing the core business, but also accelerating Margin-led Businesses: Pos Malaysia is prioritising businesses with higher margins such as: Pos DiSini, Pos Shop, Pos Fulfill, Redly Express, and Scintila.

• Pos DiSini: Capitalising on our real estate by leasing out significant space to various brands.

• Pos Shop: Increasing our retail footprint significantly over the next two years.

• Pos Fulfill: Utilising our spaces for fulfillment services and capitalizing on our in-house delivery capabilities for efficient last-mile solutions.

• Redly Express: Expanding our presence in key global e-commerce markets.

• Scintila: Offering cutting-edge technology consultancy services to drive product and service innovation.

• This strategy involves optimising product offerings, streamlining operations, and leveraging technology to improve efficiency and drive revenue growth.

• Further Integration of Mail and Parcel Network: By integrating these networks more closely, Pos Malaysia can achieve economies of scale, reduce operational costs, and enhance the overall customer experience.

• Additional Cost Control Measures: Pos Malaysia is implementing stringent cost control measures to manage expenses effectively and improve profitability.

Charles Brewer Group CEO Pos Malaysia

Embracing Denmark’s model of digital postal services could indeed be a progressive step for many postal operators

4) Brand

Pos Malaysia aims to be #1 for brand equity and brand preference

5) Culture Transformation

Pos Malaysia is rolling out a ‘top to bottom’ culture transformation program called Wira – from the Board member to the CEO, to the State General Manager to the Security guard, we can all #BeBetter

6) Digital

A holistic and end to end digital transformation, including modernising all of our customer facing systems, moving the majority of our applications to the cloud, to a complete overhaul of the customer journey, Malaysia is rebuilding its tech stack to be ‘fit for tomorrow’.

7) Sustainability Initiatives and CSR

• In April of 2023, Pos Malaysia launched its sustainability roadmap with a commitment to be net-zero by 2050 – the first Logistics company to do so in Malaysia and a lighthouse example for the entire country. The road map focuses on 6 workstreams, including delivery methods, waste management, energy production through to digital learning and to date, we have deployed 105 eBikes & 143 eVans, installed solar panels at 3 sites & added telematics, established 6 ChargEV stations, and much, much more are to come.

• Pos Malaysia is not only respecting and paying homage to its amazing history, but also paving the way for a future where digital and traditional post and parcel services coexist and complement each other, focusing on delivering on our purpose which is ‘We are passionate about building trust to connect lives and businesses for a better tomorrow’.

a) How would you accommodate the Millennials and GenZ?

At Pos Malaysia, we are committed to effectively connecting with Millennials and Gen Z both as customers and future employees through innovative strategies:

• Technological Accessibility: We provide accessibility by leveraging technology to create user-friendly applications and websites. This ensures seamless interaction and ease of access to our services, meeting the digital expectations of Millennials and Gen Z.

• Sustainability Initiatives: Demonstrating our dedication to environmental responsibility, we showcase our sustainability initiatives and eco-friendly practices. By aligning with the values of younger generations who prioritise sustainability, we not only attract them as customers but also as employees who seek purposedriven organisations.

• Engaging Social Media Presence: Our active presence on social media platforms is enhanced through authentic and engaging communication. We collaborate with influencers and celebrities to create compelling content that resonates with Millennials and Gen Z, fostering meaningful connections and driving brand engagement.

Charles Brewer Group CEO Pos Malaysia

2. Taking Denmark as an example (refer to image on page 35), the postal operator uses an omnichannel approach to distributing both digital and physical letters from governments and businesses to the citizens. This has undoubtedly positioned the post as a vital part of the Danish digital public infrastructure, as roughly 75% of all letters are distributed digitally. In your opinion, do you think other postal operators should follow the Danish postal transformation in pursuing a digital distribution branch, and what would it require for your country to accommodate such a change?

Embracing Denmark’s model of digital postal services could indeed be a progressive step for many postal operators; however, it is crucial to recognise that each country has its unique set of challenges and opportunities, particularly in the ASEAN region where digitalisation trends have leapfrogged traditional stages. For these countries, directly adopting a digitalfirst approach, akin to Denmark’s, may not just be about following but innovating and adapting to their own digital trajectories.

In the context of our transformation plan, we have established a 3-year plan, anchored in modernising ICT infrastructure, enhancing the customer journey through digitisation, fortifying security measures, and leveraging cloud technology and advanced analytics, among others. It is essential to emphasise that our initiatives in our transformation journey and strategy house remain dynamic. We dynamically adjust to market trends, risks, and opportunities.

3. The UPU Congress recently approved a “green package” setting voluntary climate action targets for the postal sector. The future of the post will inevitably be influenced by the topic of environmental sustainability. Looking at Denmark, the CO2 emission for the postal sector has been dropping immensely since 2013 largely due to an omnichannel communication service provided by the postal operator (refer to image on page 24). Is this a clear quick win path to follow in your case? Please explain.

Every country has its own unique situation, so what works for Denmark might not work the same way elsewhere. For ASEAN, some of them have skipped ahead in digital technology, jumping straight to digital methods for communication. However, it’s not as simple as just copying what Denmark is doing. Each country needs to figure out what makes sense for them and their people. While it’s good to learn from others, each country has to come up with its own plan based on its own needs and circumstances.

For Pos Malaysia, we introduced our Sustainability Roadmap in March 2023 with

The aim to achieve net-zero by 2050. We are the first logistics company to commit. We stand as a ‘lighthouse’, championing sustainability for both Malaysia and the logistics sector.

There are 6 key workstreams introduced to significantly reduce environmental footprint and achieve net-zero carbon emissions by 2050:

1.Delivery methods

2.Fleet optimisation

3.Green buildings

4.Waste management

5.Sustainable packaging

6.Digital learning

Electric Vehicles

• 2023: We deployed 200 e-Bikes, 143 e-Vans

• 2025: We are targeting 28% Green Last-mile Vehicles

• 2030: We are targeting 100% Green Last-mile Vehicles

Solar Panels

• 3 solar panels installed currently

• By 2024- we are targeting 17 units

• By 2025-we are targeting 150 units

João Bento Presidente Executivo CEO CTT Portugal Post

1. In an era where the physical letter industry is under immense pressure due to alternative means of digital communication, which initiatives is your company undertaking to preserve its relevance as a public communication actor between government and businesses, and the citizens?

a) How would you accommodate the Millennials and GenZ?

We have abandoned the separation of physical and digital to the point of combining them in our purpose and vision – “To be the companies reference partner, developing e-commerce and simplifying their physical and digital presence”.

One of our core values is to be a customer-centric company, relentlessly pursuing opportunities to serve our customers most conveniently. Hence, an omni-channel approach became a key pillar of our strategy both for retail and B2B.

Two key growth areas have been elected – e-commerce and financial and banking services – both embodying the need for a combined physical and digital customer experience.

In a nutshell, how are we doing that?

Firstly, by implementing single touchpoints for both segments – one for business (B2B SuperPortal) and one for consumers (B2C SuperApp), that will progressively concentrate all customer journeys in a simplified and convenient way.

Secondly, by rolling out an ambitious self-service strategy, both in service usage and customer service (e.g. we have recently launched Helena, our Gen AI-powered customer assistant) and are deploying 24x7 locker-based self-service points in all major retail stores (a few hundred, so far).

And finally, by spreading the digital transformation inside the organisation, simplifying our processes through the intense usage of technology (SW and HW), thus helping our people and our operations perform with higher efficiency and quality.

This technology-based transformation raises tremendous challenges regarding change management for a traditional postal company, but we deem it crucial for success. Being the older company in Portugal, now 503 years old, we have developed strong brand connections with the public at large. However, past results do not ensure future success, which is the reason why we need to keep investing in brand and customer satisfaction.

For the young generations, we believe our focus on e-commerce and a simple and digital customer interaction are vital to establishing strong bonds with our brand.

João Bento Presidente Executivo CEO CTT Portugal Post

2. Taking Denmark as an example (refer to image on page 35), the postal operator uses an omnichannel approach to distributing both digital and physical letters from governments and businesses to the citizens. This has undoubtedly positioned the post as a vital part of the Danish digital public infrastructure, as roughly 75% of all letters are distributed digitally. In your opinion, do you think other postal operators should follow the Danish postal transformation in pursuing a digital distribution branch, and what would it require for your country to accommodate such a change?

Embarking in digital is not an option for postal operators. In our view, it is an absolutely compulsory transformation lever for success in how companies, institutions and people communicate.

It is apparent that physical mail will continue to decline steadily and strongly (probably not disappear), the same way that fixed phones were replaced by mobile phones because they were much better at satisfying customer needs. And, as it happened in the telephony transformation, the postal transformation needs to be based on technology – primarily digital – providing customer satisfaction and fulfilling customer needs. The very same fact that promotes mail demand decline –digitalisation of the economy – encourages the growth of new forms of retail – e-commerce at large – that emerged as the new raison d’être for postal operators.

Nevertheless, we believe there will always be some room for physical communication, as research indicates that, for particular market segments, combined digitalphysical communication produces more impact than digital alone. So, physical mail will likely become a product for specific segments or niches.

“

We have abandoned the separation of physical and digital to the point of combining them in our purpose and vision

However, mail will have to upgrade some features, particularly information given to sender and receiver. Digital has the power of impact measurement, whereas physical mail still struggles to prove its higher effectiveness. In fact, we believe that for some segments, blending physical and digital will provide the winning solution for postal.

In CTT, I would highlight some of such solutions we have been developing and deploying: e-letter services (digital to physical; digital to digital), certified email communications – for instance, for communication and document exchange between public services, companies and individuals through a certified secure digital mailbox (Via CTT). Also, in the path of increasing the perceived value of physical mail, we are developing and about to start deploying a smart mail product, which will provide digital information to customers for untracked letters.

3. The UPU Congress recently approved a “green package” setting voluntary climate action targets for the postal sector. The future of the post will inevitably be influenced by the topic of environmental sustainability. Looking at Denmark, the CO2 emission for the postal sector has been dropping immensely since 2013 largely due to an omnichannel communication service provided by the postal operator (refer to image on page 24). Is this a clear quick win path to follow in your case? Please explain.

João Bento Presidente Executivo CEO CTT Portugal Post

CTT’s stated corporate purpose is “Delivering the future by connecting people and business in a sustainable way”. Moreover, sustainability is one of our five core values (customer focus, proximity, trust, sustainability, and commitment).The pledge to sustainability is, thus, not only evident in our corporate statements but publicly disclosed in the form of objective ESG goals, with a particular emphasis on the environment, particularly on decarbonisation.

I would concur that it is inevitable to pinpoint environmental concerns as a critical issue to be addressed by the postal industry. Postal services have centuries of legacy, in which they have been able to transform themselves to remain useful for future generations. It is only natural that we do our share in leaving a sustainable world to the ones coming after us.

Despite sustainability concerns being part of a structural long-term approach to success, more than a short-term view, we must move fast. Indeed, the increasing growth in e-commerce and the consequent growth of air, sea, or land transportation imply an ever-increasing energy and carbon efficiency in our treatment but, mainly, distribution operations.

In this respect, CTT has stated clear and demanding targets:

• Zero emissions in the last mile by 2030 and a 50% reduction by 2025;

• 100% green products and services by 2030 and 30% by 2025;

• 100% of recycled or reusable packaging by 2030 and 80% by 2025.

As a preliminary result of this agenda, we have been amongst the top performers in IPC’s Sustainability Index and have consistently achieved an A status in the CDP rating, which stands as recognition of the whole organisation’s commitment to facing this challenge.

4. Given the challenges posed by uncoordinated and siloed digitisation efforts across government and industry, which have created a cluttered digital landscape and a multitude of communication platforms in both public and private sectors, how do you see the postal operator’s potential in becoming the central omnichannel distributor of both digital and physical letters?

We see the challenge of the postal industry as one of diversification and transformation, moving to areas where it can leverage its core advantages to maintain postal operators relevant to society.

For that reason, CTT is undergoing a massive transformation process, having e-commerce as its key pillar of development in the logistic and delivery business and diversifying the services we offer to people, businesses and institutions, namely by transforming the postal retail network in a trustworthy platform for services provided to the citizen and small companies.

Postal operators do have distinctive aspects, such as proximity and trust, that we believe, if correctly leveraged, are vital in guaranteeing the industry’s success. But operators that will thrive in the future will have to be less postal stricto sensu

A leading role will only be possible if postal operators embark on a transformation journey with customers as the focal point of all their actions. We are competing in an open market, but I see no reason for postal operators not to leverage their installed base of assets, people, and customer knowledge to win in becoming the central omnichannel distributor of both digital and physical letters.

But for that, we need to keep transforming ourselves at a high rate!

1. In an era where the physical letter industry is under immense pressure due to alternative means of digital communication, which initiatives is your company undertaking to preserve its relevance as a public communication actor between government and businesses, and the citizens?

First of all, we don’t think that written communication is going to disappear altogether, at least in the medium term, and we’re doing everything we can to ensure that it remains attractive to our customers.

It is becoming a qualitative means of communication that will retain its relevance in a more digital world.

In addition, La Poste Groupe has resolutely developed digital services as part of its transformation. For example, its subsidiary Docaposte offers services derived from our traditional businesses, such as electronic registered mail, or adapted to the digital world, such as digital identity or the digital safe, basing its offering on La Poste’s values of trust and proximity.

a) How would you accommodate the Millennials and GenZ?

Our services are designed to suit all categories of customer (young people, adults, the elderly, etc.), including the younger generations.

Jean-Paul Forceville

Directeur des relations européennes et internationales

La Poste Group

2. Taking Denmark as an example (refer to image on page 35), the postal operator uses an omnichannel approach to distributing both digital and physical letters from governments and businesses to the citizens. This has undoubtedly positioned the post as a vital part of the Danish digital public infrastructure, as roughly 75% of all letters are distributed digitally. In your opinion, do you think other postal operators should follow the Danish postal transformation in pursuing a digital distribution branch, and what would it require for your country to accommodate such a change?

In this area, Denmark appears to be a laboratory. Very early on, the government decided to stop communicating with its citizens in writing, which profoundly changed the national postal landscape.

Few other governments, to my knowledge, have made the same choice, even though digital communication is progressing day by day.

La Poste also wants to play a role in supporting French people who are not very comfortable with digital technology, because it is close to its fellow citizens.

For more than 20 years, it has offered the public a free messaging service: laposte.net.

It has taken part in the dematerialisation of pay slips or has developed an application that enables parents and teachers in schools and colleges to talk to each other.

Jean-Paul Forceville

Directeur des relations européennes et internationales La Poste Group

The shift to digital is inevitable, but how quickly will depend on the culture and political decisions taken by governments but the Posts absolutely must get involved because they are totally legitimate to do so.

3. The UPU Congress recently approved a “green package” setting voluntary climate action targets for the postal sector. The future of the post will inevitably be influenced by the topic of environmental sustainability. Looking at Denmark, the CO2 emission for the postal sector has been dropping immensely since 2013 largely due to an omnichannel communication service provided by the postal operator (refer to image on page 35). Is this a clear quick win path to follow in your case? Please explain.

Postal services have made significant, but under-recognised, efforts to reduce (or compensate) their greenhouse gas emissions.

They will continue and even step up their efforts in this area.

As far as digital transmission is concerned, it is too often considered to be a non-emitter.

This is clearly not the case.

And we know that if the letter is printed by the recipient on their printer, the carbon footprint is unfavourable.

Here again, the transition must be made in a reasoned and differentiated way from one country to another.

The shift to digital is inevitable, but how quickly will depend on the culture and political decisions taken by governments but the Posts absolutely must get involved because they are totally legitimate to do so

4. Given the challenges posed by uncoordinated and siloed digitisation efforts across government and industry, which have created a cluttered digital landscape and a multitude of communication platforms in both public and private sectors, how do you see the postal operator’s potential in becoming the central omnichannel distributor of both digital and physical letters?

As mentioned above, there is a potential and an opportunity for postal operators to become a central player but countries have different cultures and levels of digital maturity.

Size matters too. A medium-sized country can make faster progress than a large one.

So there will be front runners. And international postal organisations need to enable the exchange of information and the sharing of best practice.

Another point will also be decisive. Will postal shareholders, whether public or private, give their postal companies the resources to make this digital transition?

1. In an era where the physical letter industry is under immense pressure due to alternative means of digital communication, which initiatives is your company undertaking to preserve its relevance as a public communication actor between government and businesses, and the citizens?

a) How would you accommodate the Millennials and GenZ?

Firstly, it must be mentioned that although we acknowledge and realize the importance of both generations (and their relevant and importance in the local economy) and we have implemented products and features to accommodate them & comply to their unique requirement, we also realized that we have not yet fully accommodated them and thus achieved what we wanted to. We mainly concentrate on technology and technological improvement of our existing and new products and services to incorporate these customers. As you know the Millennial generations grew up with the technology and thus feel confident within it, but the Generation Z are the first true digital native generation. Based on this, NamPost has implemented various products (e.g. digital mail) and solutions (E-statement for Saving Bank customers) while also working on the appropriate app to make life easier, safer, and more convenient. As data security is also a main requirement of these generations, we are conscious about this and have included this requirement with us. To enable us to offer some requirements (e.g. global shopping), NamPost is actively pursuing international partnerships to offer this. We are proud of what we have achieved already but are also looking forward to new products & services which we soon can offer for these customers.

Michael Feldmann

Executive: Mail & Logistics

NamPost, Namibia

2. Taking Denmark as an example (refer to image on page 35), the postal operator uses an omnichannel approach to distributing both digital and physical letters from governments and businesses to the citizens. This has undoubtedly positioned the post as a vital part of the Danish digital public infrastructure, as roughly 75%of all letters are distributed digitally. In your opinion, do you think other postal operators should follow the Danish postal transformation in pursuing a digital distribution branch, and what would it require for your country to accommodate such a change?

In Summary YES, however, the products, procedures and options must be adapted to the specifics of the country (which includes demographic, geographics and income levels) and most importantly to the requirement and needs of the people. In the developed countries this can be accomplished quite easily as the infrastructure and education standards to accommodate this. In the less developed countries, this is more challenging, and a fine balance needs to be found between all levels to ensure that the services are available and convenient. Namibia is quite unique in that we have a very developed (nearly 1st world) setup in selected towns but also an underdeveloped rural area. The products offered must thus cater for all citizens and for all requirements. We thus believe in offering the services through a range of offerings to ensure that the customer can choose which option of service is best suitable for the customer. In the end the customer will determine the way. NamPost is currently engaging with various Ministries to expand our current service offering to incorporate more options.

Michael

Feldmann

Executive: Mail & Logistics

NamPost, Namibia

3. The UPU Congress recently approved a “green package” setting voluntary climate action targets for the postal sector. The future of the post will inevitably be influenced by the topic of environmental sustainability. Looking at Denmark, the CO2 emission for the postal sector has been dropping immensely since 2013 largely due to an omnichannel communication service provided by the postal operator (refer to image on page 24). Is this a clear quick win path to follow in your case? Please explain.

Again, and referring to the above question, the answer is not that simple and easily formulated. Yes, things work for Denmark, but each country is unique and requires specific implementations. The Environment and “Green Aspects” are immensely important for Namibia and at NamPost and we are actively doing our part – e.g. solar power for selected buildings and offering E-Statement to reduce paper. To further emphasise our commitment to this, I can also confirm the NamPost is looking at various new options and products both in Retail and Mail & Logistics to further increase our product offerings in the omnichannel. It must, however, also be emphasises that this is a continuous process as with the advancement in technology and the changes in customer requirements, new products and services will be offered to ensure that NamPost meets customer requirements and expectations.

“

As you know the Millennial generations grew up with the technology and thus feel confident within it, but the Generation Z are the first true digital native generation

4. Given the challenges posed by uncoordinated and siloed digitisation efforts across government and industry, which have created a cluttered digital landscape and a multitude of communication platforms in both public and private sectors, how do you see the postal operator’s potential in becoming the central omnichannel distributor of both digital and physical letters?

I do believe that the above falls into the same category as the above questions. In the end for me the starting point is the combination of customer requirement, technological availability, and country specifications. I can confirm to you that a silo approach will result in resource waste or at best resource allocation inefficiency. For me the postal companies around the world are in a unique position to solve this problem. The footprint of the postal companies (through their various branches and thus country-wide coverage) puts them in a unique position to act as both a mediator and connection between the industries. Also, postal operators are (in my opinion) both parastatals / government and private section – private sector due to availability and options of private competitors. Lastly, through the UPU (Universal Postal Union) there is also a significant degree of internationalism and international connectively included. All of them make the postal operators ideal to fulfill this function. The issue in my opinion is, however, that the digital section of the business is not yet fully developed and thus the postal operations are lagging behind their private competitors. In summary, thus the postal operators are ideally situation to became to the central contributor, but their digital capabilities must be strengthened and further developed.

As support to question 2, addressing the subject digitisation adoption, we are using the example established by Denmark where the postal operator uses an omnichannel approach to distributing both digital and physical letters from governments and businesses to the citizens. The below chart shows how the distribution of physical letters has fallen by 70% from 2013 to 2021 whilst digital documents have risen by 245%.

e-Boks users, physical letters sent and digital documents sent (2013-2021)

As support to question 3, addressing CO2 emissions, we again use the example of Denmark which clearly shows the parallelism of the decline of C02 emissions with the adoption of digital documents.

Total CO2 emission for digital documents and physical letters (2013-2021)

As support to question 3, addressing CO2 emissions, we again use the example of Denmark which clearly shows the parallelism of the decline of C02 emissions with the adoption of digital documents.

Methodology

e-Boks is a PostNord affiliated organisation, and globally leading provider of secure platforms and Digital Postboxes that enables efficient communication between public authorities, citizens and businesses

Between November 2023 and January 2024, our research partners, Triangle Management Services, conducted an online survey and interviews of postal leaders, worldwide. Responses from 179 participants across 74 posts, where 72% of all participants were from the EMEA region, followed by 17% from the Americas and 11% from the Rest of the World (ROW), were analysed to provide e-Boks with a current point of view as to where national posts stand on the subject of postal digitalisation, primarily to do with the shift from the physical to the digital delivery of mail, and the adoption of a unique and centralised Digital Postbox solution.

To enrich the quantitative analysis, interviews with postal industry leaders were conducted to provide unique perspectives and inputs for the whitepaper on the behalf of e-Boks.