Postal Development Report 2022
Postal Development Report 2022
Postal Development Report 2022
DEVELOPMENT
REPORT
Postal journey towards
a sustainable future
Published by the Universal Postal Union (UPU)
Berne, Switzerland
ISBN: 978-92-95116-26-9
CONTACT: info@upu.int
2022 POSTAL
DEVELOPMENT
REPORT
Postal journey towards
a sustainable future
LIST OF FIGURES
Figure 1 Global 2IPD score distribution......................................................................................................................9
Figure 2 Growth trends and forecasts for domestic letter and parcel post 2019–2022.............................10
Figure 3 Statistical relationships between letter post and parcel post..........................................................12
Figure 4 2021 2IPD scores by region..........................................................................................................................21
Figure 5 Global postal development level distribution by region......................................................................22
Figure 6 Distribution of 2021 2IPD scores by region.............................................................................................26
Figure 7 2021 postal development catch-up countries...................................................................................... 30
Figure 8 Postal development and reliability catch-up........................................................................................ 30
Figure 9 Average delivery time per region over time...........................................................................................31
LIST OF TABLES
Table 1 UPU postal development levels..................................................................................................................15
Table 2 Postal development levels and their corresponding 2IPD scores....................................................15
Table 3 The 4Rs of the 2IPD........................................................................................................................................16
Table 4 Reliability catch-up stars............................................................................................................................32
Table of contents
Executive summary.................................................................................................................. 6
Introduction................................................................................................................................ 8
Latest trends in the global postal sector.........................................................................10
Global letter-post volume declines are easing.............................................................. 11
Letter-post losses from higher parcel-post gains are non-linear.............................. 11
Bibliography................................................................................................................................................. 58
Disclaimers.................................................................................................................................................. 58
Acknowledgements................................................................................................................................ 58
6 | 2022 Postal Development Report
EXECUTIVE
SUMMARY
The 2021 Integrated Index for Postal Development (2IPD) A majority of countries were able to
provides the most comprehensive view on current global make progress, at varying speeds,
postal development.
towards matching the performance of
Relying on a unique combination of postal big data and the best-in-class postal operators. Six
statistics made available by 172 countries, it paints a picture countries achieved the highest level
of an asymmetric state of postal development across the
of postal excellence – Austria, China
world.
(People’s Rep.), France, Germany, Japan
Based on the analysis of 2IPD scores, we have peer and Switzerland – with the highest 2IPD
grouped and categorized countries into 10 postal score going to Switzerland for the sixth
development levels. A clustering analysis reveals that a
consecutive year.
relatively large number of countries are classified in low
or lower-middle postal development groups, highlighting
significant postal service development gaps between
Some countries are progressing faster
nations.
than others. Armenia, Egypt and Estonia
The key takeaways of the 2022 Postal Development Report achieved record 2IPD score progressions
are as follows: in 2021. Other regional champions
such as Saudi Arabia, Cameroon and
2021 was a relatively positive year for Colombia made significant advances,
postal development worldwide. Quality and even leapfrogged, in terms of postal
of service has substantially improved development levels.
since postal services were hit by the
waves of the COVID-19 pandemic. Nevertheless, postal development
in terms of reliability, reach, relevance
Structural declines in domestic and resilience remains skewed towards
letter-post volumes are slowing lower postal development levels thereby
down for the first time in a decade generating challenges across the
and domestic parcel post is pursuing global postal network in the provision
its steady growth. Many designated of international postal services.
operators should benefit from This underscores the intuition that the
profitability increases in these postal network is only as strong as its
circumstances as well. weakest link.
Postal journey towards a sustainable future | 7
INTRODUCTION
Posts are some of the most essential engines for response to climate change. A data-driven strategy is
sustainable growth and inclusion in today’s global digital essential to substantially mitigate and ultimately eliminate
economies. Every day, more than five million postal the postal carbon footprint. The 2IPD can fill critical data
employees worldwide contribute to building a prosperous, gaps in measuring global postal emissions and contribute
inclusive and equitable future for all of us. to helping less advanced postal operators better measure
their carbon footprint and set ambitious emission reduction
In 2020 and 2021, the global postal infrastructure played goals.
a critical role by enabling governments to better respond
to COVID-19 pandemic challenges. Postal resilience – the As the global postal network is only as strong as its weakest
strongest component of the Integrated Index for Postal link, this year’s Postal Development Report represents a call
Development, or 2IPD – defined the postal network during for governments to renew their commitment to the global
this time and reinforced its role in enabling a modern, postal network and empower their designated operators
equitable society. (DOs) to become best-in-class providers of postal services.
Figure 2: Growth trends and forecasts for domestic letter and parcel post 2019–2022
GLOBAL LETTER-POST
LETTER-POST LOSSES FROM HIGHER
VOLUME DECLINES PARCEL-POST GAINS
ARE EASING ARE NON-LINEAR
According to our most recent estimations, global postal After modelling and analyzing pre- and post-pandemic
revenues stemming from parcels and logistics have changes in domestic letter-post and parcel-post volumes
reached a tipping point where they are larger than letter- between 2019 and 2021, we find that there is a median loss
post revenues for the first time as recorded in 147 years of of 8.8 letters for each additional domestic parcel-post item
UPU postal statistics. sent during this period.
With steady e-commerce growth driven by COVID-19 This means that for each extra parcel delivered as a result
restrictions, global domestic parcel volumes increased by of the change in online shopping behaviours, 8.8 letters
33.6% between 2019 and 2021. The highest year-on-year are lost, or equivalently, a postal revenue loss can be
growth rate ever recorded for the domestic parcel-post expected if the average price for a domestic parcel-post
stream in UPU postal statistics was achieved in 2020, with item is not 8.8 times the average price for a domestic
a 17.6% increase globally; this growth continued into 2021, letter-post item at least.
with 13.6% year-on-year growth – well above the pre-
pandemic 7.5% yearly growth trend (See Figure 2). However, our analysis has identified a remarkable, new,
non-linear statistical relationship between letter-post
Unless macroeconomic conditions further worsen, we decline and parcel-post growth.
forecast domestic parcel-post volumes to reach high
single-digit annual growth rates in main markets in 2022, The non-linear trend begins with an inverse relationship,
consistent with a global forecasted parcel volume growth where the higher the number of additional parcels per
rate of approximately 7.5%. capita, the higher the loss in terms of letter volumes per
capita (see Figure 3). The reason for this was that gains
As expected with the huge economic slowdown, global in parcels per inhabitant also captured the acceleration
domestic letter-post volumes recorded an overall decline in digitalization of the economy and the resulting
of 13.6% between 2019 and 2021 – a record in mail e-commerce growth during the pandemic.
volume losses in the current century. However, the volume
increased marginally, by 0.5%, over 2021 compared with However, once a critical threshold value was reached in
the previous year – representing the single largest increase terms of lost letter items per parcel gained, the statistical
in the last 15 years. relationship between the two variables became negative –
after an estimated seven additional domestic parcel-post
We forecast a small single-digit decline for 2022, around items per inhabitant, the declines in domestic letters per
0.3% below the pre-pandemic 2.8% yearly decline trend. capita were decreasing.
From our analysis, direct marketing and advertising mail
seems to have started its recovery, signalled by 4% year- Almost no further loss in letter-post volumes occurred
on-year growth between 2020 and 2021, thus continuing once the increase in parcel-post items reached the
to help stem letter-post volume declines brought about by estimated threshold of 15 additional parcels per capita. In
the negative impacts of digital substitution on commercial 2021, we observed that the largest letter-post markets in
letter-post transactions. the world were close to this turning point and could soon
benefit from an easing of their letter volume declines.
MEASURING GLOBAL
POSTAL DEVELOPMENT:
(RE)INTRODUCING
THE 2IPD METHODOLOGY
CHALLENGES OF A
Fifth, postal executives and policymakers may have
different views about what really constitute postal progress
and success stories in their respective countries.
GLOBAL “LIKE FOR Sixth, postal sector boundaries may also change from
country to country, with governments framing their
INCREMENTAL,
PDLs are determined based on the 2IPD scoring method.
Scores result from the quantitative evaluation of each
postal operator’s performance in the key components of
Postal
development COHORT CHARACTERISTICS
level (PDL)
DOs of countries in this group are close to achieving their maximum potential.
They positively impact societal development, leveraging their postal network
9 strengths while mitigating the effects of possible remaining weaknesses.
With an additional step towards reaching excellence, DOs of countries at this level
INCREASING POSTAL MATURITY
DOs of countries at this level have likely achieved new milestones in their postal
7 development journey. They play a prominent role in their respective markets.
DOs of countries in PDL 6 are taking steps to accelerate their development. They
intensively work on improving performance in critical areas to ensure consistent
6 performance.
The core requirements for postal success are in play and a brighter postal future
5 seems possible.
The DOs of PDL 1 countries are initiating their postal journey or are
underperforming in terms of their potential. They must overcome structural
1 challenges and modernize their postal infrastructure.
PDL 1 2 3 4 5 6 7 8 9 10
38.9–48.8
48.9–58.8
58.9–68.8
78.9–88.8
28.9–38.8
68.9–78.8
18.9–28.8
88.9–100
8.9–18.8
0.0–8.8
2IPD
score
16 | 2022 Postal Development Report
ITY RESI
BIL L
IEN
RELIA
Integrated CE
Index for Postal
Development
(2IPD) Score
NCE
AC
RE
E
VA
H R E L
Evaluates the level of postal connectivity Measures the relative success of different
of the country with the rest of the world postal business models and activities from
from an outbound perspective a demand perspective
Postal journey towards a sustainable future | 17
Prior UPU research on predicting delivery times and We assess, from a customer demand perspective, the
estimating the date of arrival of international postal relative success of the different postal business segments,
shipments shows the importance of these signals in such as the domestic letter-post, parcel post, logistics,
building more predictable delivery services and improving postal financial and international postal services, as well
the customer experience. as the provision of access to an extensive network of post
offices and service points for a wide range of purposes.
The 2IPD algorithm for postal reliability attributed a
maximum score of 100 to the country that was identified The strengths of each country’s postal business models
as the best performer in 2021, securing the highest level of are identified and compared with those of peers showing
quality of service for its customers. The least performing similar postal activity patterns in order to evaluate
countries with the lowest postal reliability level received a comparable postal business models. A score of 100 was
score of 0. The rest obtained intermediate scores according assigned to the most successful postal business model in
to their relative postal reliability achievements in 2021. terms of relative demand levels, and a score of 0 to the
most unsuccessful ones in 2021.
A score higher than 70 usually signals that a country is
meeting the conditions for postal development in terms of Given the extreme differences between the postal business
service reliability. achievements of the most successful postal operators and
their less successful peers, a score above 20 already sends
Postal reach is the second main component of the very positive signals in terms of short- and medium-run
2IPD scoring system. Millions of EDI messages related business prospects. A score below 5 should prompt the DO
to international postal dispatch information (PREDES) to critically assess its long-term business survival.
undergo a statistical process and treatment similar to
the one applied for the postal reliability component (as Finally, postal resilience is the fourth pillar of the 2IPD.
described above). Postal resilience is defined as the ability of the DO to
respond to unfavourable external economic, technological,
The purpose of this process is to measure the intensity societal and environmental shocks, and by so-doing,
of international postal connectivity, from an outbound benefit the country’s development as a whole. There
perspective. We achieve this by identifying the key nodes is strong evidence of the overall economic resilience
of the international postal network, the propensity of a DO benefits of protecting and providing opportunities to the
to maintain active international postal routes, and traffic most vulnerable parts of society through powerful postal
tonnage transported through these routes connecting the inclusion channels.
country to the rest of the world.
The recent COVID-19 health crisis has largely demonstrated
As previously highlighted in joint UPU and UN Global Pulse the postal value proposition in terms of resilience in a more
research (Hristova, Rutherford, Anson, Luengo-Oroz and volatile and uncertain world. The 2IPD postal resilience
Mascolo, 2016), the breadth and depth of the international algorithm evaluates how external economic risks could
postal network is closely related to a nation’s well-being, be better mitigated by diversifying one’s business, as well
thus underlining the importance of a global postal as by preserving economies of scale achieved through
infrastructure for international trade development. different postal activities.
Moreover, as shown by Anson, Arvis, Boffa, Helble and It also assesses the postal capacity to respond to disruptive
Shepherd (2020), international postal transit times can technologies with digital innovation, and looks at how the
represent a significant trade cost, impacting the evolution most vulnerable parts of a country’s population can be
of international exchanges and global supply chains. better protected and given new opportunities for greater
well-being with the inclusive provision of essential services
A score of 100 was attributed to the best in class in terms
such as financial services.
of international postal reach. The least connected networks
received a score of 0, with all other countries getting A wide variety of data sources, comprising hundreds of
intermediate scores depending on their level of relative thousands of records, are treated and analyzed, including
performance in terms of international postal connectivity the UPU postal statistics and key UPU surveys – such as
in 2021. the ones feeding the Global Panorama on Postal Financial
Inclusion (2011, 2016, and upcoming 2022) and the studies
A score higher than 50 can generally be interpreted as a
on innovation through digital postal services.
fairly good state of international connectivity for postal
development. Joint UPU and World Bank research (see Anson, Berthaud,
Klapper and Singer, 2013) has demonstrated the merits
Postal relevance is the third 2IPD component. To create
of postal networks in providing basic financial services to
this index, we combine the analysis from millions of EDI
the most vulnerable populations. Anson, Caron and Bosch
messages and thousands of UPU postal statistics records.
Gual (2008) have shown the positive local development
18 | 2022 Postal Development Report
impacts of postal financial inclusion and trade facilitation A 2IPD score equal to or above the final threshold value
policies in Brazil, with the provision of first development of 38.9 led to a classification of countries in the groups
opportunities for micro, small and medium-sized corresponding to postal development levels 5 to 10, which
enterprises from remote communities. This result was represent countries with upper-middle and high postal
confirmed by an Inter-American Development Bank study development achievements. Countries with scores below
in Peru (Carballo, Schaur and Volpe Martincus, 2016). 38.9 were classified in groups corresponding to postal
development levels 1 to 4, namely, those countries with low
A future iteration of the 2IPD will integrate data to lower-middle postal development performances.
from the UPU’s carbon accounting tool (OSCAR) and
social services development data in a single postal The general 2IPD scores then allowed us to peer-
resilience data repository. group countries according to their postal development
achievements into 10 groups corresponding to 10 different
For the 2IPD postal resilience score, the country with the levels of postal development. Through this approach,
most resilient Post in 2021 received a score of 100, while the countries have the opportunity to benchmark themselves
countries with the least resilient Post received a score of 0. with their peers in a meaningful way, and to set their next
Other countries obtained intermediate scores as a function postal development targets.
of their relative resilience performance.
This unique big data To conclude this section on the 2IPD methodology and
its application to the 172 relevant countries, it is worth
stressing that this unique big data approach to measure
also unifies, in a single artificial intelligence and machine learning to help shape
sensible and ambitious changes for the postal sector of the
theories resulting from the course of many years, can be used and shared with all
sector stakeholders to design a better postal future.
almost two decades of However, improved postal data sharing by UPU member
countries is critical for the success of this evidence-
POSTAL DEVELOPMENT
LEVELS ACROSS REGIONS
AND COUNTRIES
The 2021 2IPD scores show a clear divide in terms of postal
development between advanced economies and most of Almost half of UPU member countries
the developing regions. are in low postal development groups, i.e.
In the official UPU terminology, developed countries are PDLs 1, 2 and 3.
classified in the “industrialized countries” (IC) grouping.
The “Europe and CIS region” is made up of developing
countries from Eastern Europe and the CIS. The “Arab
region” comprises nations from North Africa and the As shown in Figure 4, high-income economies (grouped
Middle East. The “Africa region” corresponds to countries in the IC category in most cases) led global postal
in Sub-Saharan Africa. The “Asia-Pacific region” covers development with a median 2IPD score of 70.2. The
countries of Southern and South-East Asia as well as Pacific Europe and CIS region, with a median 2IPD score of 53.4,
islands. The “Latin America and Caribbean region” refers to was also well above the world median. The Arab region
South and Central America, Mexico and the Caribbean. score of 29.5 was the closest to the global median value,
followed by the Asia-Pacific region at 23.6.
NEARLY HALF THE was well below the global median score. Likewise, Latin
America and the Caribbean had a median 2IPD score of
16.1, mostly driven by low postal development in many
2IPD SCORES
countries are in PDLs 7 and 8, and even fewer in PDLs
9 and 10.
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
POSTAL DEVELOPMENT
GAPS BETWEEN REGIONS
AND COUNTRIES: A
DISTRIBUTION ANALYSIS
We also analyzed the distribution of the 2IPD scores and Although the Europe and CIS region showed a similar
related PDLs to get a better picture of the development pattern of postal development among countries, a large
gaps between regions and countries. gap between the highest and lowest postal development
performers was also found. The Arab region showed a
The median scores, presented in the previous section, lower level of postal development heterogeneity across
often reflect only part of the postal development countries compared with the Asia-Pacific region or the IC
story across the world. group. Latin American and Caribbean countries as well as
African ones showed more homogeneous scores within
It is equally interesting to observe the variations in the
their regions of relatively low level of postal development.
different 2IPD component scores across regions since the
larger the variability of development scores, the higher the If global postal development were to follow a balanced
level of difficulty to provide global customers with a more state across the world, a “postal bell curve” distribution
homogenous portfolio of international postal services would be expected after classifying each country in one
throughout the UPU network, or to foster a greater of the 10 PDL groups. This would mean that while some
convergence in regulations of cross-border postal services. countries would show some very high levels in terms of
postal excellence at the one end of the distribution (on the
Similarly, the larger the postal development inequalities
right-hand side of the chart, Figure 5), on the lower end of
between countries, the more complex it becomes to
it would have been just a few countries (on the left-hand
optimally design future international postal exchange
side of the chart, Figure 5).
platforms integrating stakeholders at very different stages
in their postal development journey.
Instead, the PDL clustering for 2021
In Figure 6, the box-plot analysis shows the level of is clearly skewed towards the low or
dispersion of the 2021 2IPD scores around the most
representative regional score. For each region, most
very low levels of postal development
countries’ scores can be found in the range of values performance. This triggers huge postal
corresponding to the two blue “boxes”, with the remaining development imbalances between
exceptionally high or low values (i.e. the outliers) being
plotted out of the boxes.
countries.
The opportunity cost of these postal development
The Asia-Pacific region showed the largest dispersion of
imbalances can already be found in many past UPU
its postal development scores and is the only region in the
activities and projects through delayed implementation,
world with countries spread out across almost all levels of
or lack of dramatic improvements of the global postal
postal development.
network brought about by the lack of readiness of some
The next largest dispersion was in the IC group, countries to adopt critical operational and business model
which showed that, even for more advanced levels of changes.
postal development, a greater homogeneity in postal
development patterns is still to be secured.
26 | 2022 Postal Development Report
This fosters a vicious “lack of postal development” Postal relevance clearly shows that most DOs are yet
circle where all UPU countries remain trapped. to benefit from greater business development in terms
of transaction volumes and revenue diversification. Only
One can better understand the source of these global a minority of DOs are able to fully seize the exponential
development imbalances by further examining the growth opportunities related to the digital economy in
distribution of the postal reliability, reach, relevance and spite of the COVID-19-driven e-commerce surge.
resilience achievements across countries in 2021.
The postal resilience component is the strongest
Detailed figures in Annex 3 allow us to visualize the contributor to a more balanced postal development across
classification of countries in 10 levels of development for the world. This component features a more symmetric
each of the 4R components of the 2IPD. distribution of countries in the 10 different levels of
development and is thus closer to the ideal bell-curve
Postal reliability highlights the existence of two poles
shape that should be targeted for postal reliability, reach
of development in terms of quality of service. On the one
and relevance in a rebalancing process.
hand, a significant number of countries were shaping up
to be a group having very reliable providers of delivery However, even within this fragmented distribution we can
services, while at the other end of the distribution, an even clearly identify leaders both at a global level and within
larger group of countries remained stuck at low levels of their regional peer groups, as will be shown in the next
postal reliability. section.
For postal reach, the distribution of countries is even
more skewed towards the left-hand side, with a vast
majority of countries suffering from low to very low
international postal connectivity from an outbound
perspective.
Postal journey towards a sustainable future | 27
REGIONAL CHAMPIONS
Regional champions represent the best in class within their postal peer groups. While at varying levels in the PDL classification,
they are the leaders within their own regions.
2021 PDL
Region Country 2IPD score classification
POSTAL DEVELOPMENT
CONVERGENCE
WORLDWIDE: A CATCH-UP
ASSESSMENT
After considering the different levels of postal development
across the world and the asymmetries in DO achievements,
Armenia, Egypt and Estonia achieved
we also analyzed the postal “catch up” process between the highest positive progress in their
countries.
2021 2IPD scores.
Imbalances in postal development can only be addressed
through an ambitious convergence roadmap enabling the
global postal network to move to the next level of service A number of other countries were moving in a similar
excellence. positive direction. They were catching up with Switzerland,
the global leader, as well as with at least one of the four
In spite of remaining COVID-19 challenges, 2021 was a
countries with the highest 2IPD specific component scores.
year of convergence in postal development: 124 out of 172
The leaders per 4R component score are:
countries were catching up, to different degrees, with the
best in class in 2021, as visualized in Figure 7.
RESILIENCE: BELARUS
30 | 2022 Postal Development Report
We categorize countries that are catching up fast with As can be seen from the figures in Annex 4, the year-on-
their peers as “catch-up stars”. Postal services from these year changes in postal reach scores were mostly negative,
countries were usually able to combine their improvements with few countries in the “catch-up stars” category. The
in quality of service, international connectivity and reasons for this deterioration in international postal
resilience levels to move up the postal development ladder. connectivity must be studied in more depth so as to
The major source of global postal convergence in 2021 can understand how the international postal supply chain could
be found in the postal reliability dimension as shown in be better designed in the coming years.
Figure 8.
The catch-up process outcomes were very weak for the
Average delivery times were improving in almost all postal relevance dimension: only a small group of countries
regions, with the largest year-on-year decrease recorded could be categorized as “catch-up stars”, with Egypt’s and
in the Latin America and Caribbean region. Delivery speed Estonia’s stellar catch-up performance notable.
has even substantially increased in the Asia-Pacific, Arab
and Africa regions compared with their pre-pandemic As for postal resilience, a limited number of countries were
performances (Figure 9). Investments in quality of service able to further improve their relatively high score, as was
have started to pay off in many regions across the world. the case for China and Egypt.
Table 4 lists countries that were able to combine progress Some countries were confronted with negative changes
in terms of general postal development, as reflected to their 2021 2IPD component scores compared with the
by their 2IPD scores, with substantial advances in their previous year, and some lost gains achieved over previous
postal reliability scores. The higher quality of service levels years. This demonstrates once more that, in the postal
achieved in 2021 should eventually benefit the global sector, progress is never eternal and can be particularly
postal network provided that the worsening in postal reach volatile in developing regions.
convergence can be fixed.
Postal development efforts need to be It is clear that providing a stable change management
framework is paramount to meeting current and future
sustained over time to maintain consistent challenges. In this context, moving faster towards a
performance improvements in the medium decarbonized postal future will also matter for successful
postal development, as discussed in the next section.
and long run.
GREEN POSTAL
DEVELOPMENT: 2IPD
INSIGHTS FOR BETTER
POSTAL EMISSIONS
MEASUREMENT
DOs throughout the world are advancing an ambitious We have therefore explored the use of 2IPD scores to
carbon emission reduction agenda to fight against climate fill some of these gaps, and to provide the entire postal
change. community with a global perspective on postal greenhouse
gas emissions (expressed as CO2 equivalent).
The UPU is currently scaling up its ambition and actions to
support the transition to low-emission and climate-resilient The 2IPD methodology itself could become more
postal operations. This is reflected in the deliverables comprehensive in the way it integrates DOs’
associated with Abidjan Congress resolution C 17/2021, decarbonization efforts in its future assessment of the
which include voluntary target setting for global UPU postal resilience component (reflecting the benefits of
greenhouse gas emissions, and capacity building to reach increasing energy efficiency).
these targets.
Therefore, for the first time, the UPU is assessing
Data is central to the success of this work. First, the UPU the statistical relationship between each of the 2IPD
International Bureau (IB) needs to establish a baseline for components and the level of postal carbon emissions per
the total combined emissions of the DOs of UPU member capita.
countries. It is essential that all DOs engage with carbon
accounting, ideally through the UPU’s OSCAR (Online Leveraging the latest Scope 1, 2 and 3, anonymized, postal
Solution for Carbon Analysis and Reporting) tool. carbon emissions data (combining the direct and indirect
emissions generated by a given designated operator for
Secondly, the IB needs to clarify what levels of emission 2020), a multivariate regression analysis was conducted to
reduction are feasible for DOs to achieve, at different levels test the impact that developing greater postal reliability,
of postal development. Finally, annual updates on emission reach and relevance has on the postal carbon emissions
data will be needed to track global progress in emission in a given country.
reduction over time.
As it can also be intuitively expected, moving to a
Currently, the UPU does not have comprehensive higher PDL also leads to a higher level of carbon
carbon emission data for all DOs. This is a barrier to the emissions.
target-setting work of the IB. This also presents a missed
opportunity for DOs, as the process of carbon accounting Together, the postal reliability, reach and relevance scores
generates valuable summary information for DOs on their explained almost 80% of the variance in postal carbon
energy use and infrastructure performance. emissions per capita (R2 of 0.77 in a multiple regression
estimated with heteroskedasticity-consistent standard
errors).
34 | 2022 Postal Development Report
relevance scores and the level of postal CO2 As for postal reach, a 10% increase in the postal reach
emissions per capita in a country. score of a country is associated with an 11% increase in
its postal CO2 emissions per capita. This indicates a need
for greater efforts to decouple any growth in postal reach
from increasing emissions, for example, through smarter
Broadly speaking, it would appear that for postal multimodal transportation systems and greater use of low-
operators to achieve high reliability, relevance and emission freight options (e.g. rail).
reach, they currently need to emit high levels of
A greener postal reach could therefore be achieved
greenhouse gases.
through innovation and intense collaboration between all
This simply reflects the importance of implementing a high postal sector stakeholders.
density of post offices and a broad and active delivery
The correlation between the 2IPD relevance score and
network, in order to offer postal services at an adequate
the postal CO2 emissions per capita is the strongest of
standard throughout the territory. However, the key insight
all. Interestingly, a 10% rise in a country’s postal relevance
to be gained from this analysis is related to the range of
score only generates a 7.7% increase in postal carbon
emission values for any specific 2IPD value.
emissions, that is, a less than proportional increase in terms
As shown by the figures in Annex 5, a 2IPD reliability score of negative externalities related to business development.
of (log) 3.5 has been achieved by a number of DOs.
This reveals the environmental benefits from increasing the
Critically, some of them achieved this score with low variety of services offered by post offices. In many cases, it
emissions per capita (-7.5), and others with much higher is possible to offer new over-the-counter services using the
emissions per capita (-4.0). This demonstrates that the existing physical and digital infrastructure; growth in the
correlation between emissions and 2IPD scores is not relevance score can thus be achieved with relatively little
deterministic – it is not precise or set in stone. increase in environmental cost.
Some countries are working to decouple this relationship Finally, the very strong statistical relationships revealed in
by adopting greener delivery fleets and securing their this analysis could be used to support the broader UPU
electricity from renewable sources. goal of establishing a reliable estimation of its global
baseline emissions, helping to fill gaps in carbon emission
The graphs in Annex 5 can be used to visualize this data collection.
principle; those DOs found below the regression line can
be allocated to the low emissions category – achieving For now, the 2IPD analysis only considers CO2 emissions
their 2IPD score at a low environmental cost. In contrast, to assess a country’s “postal carbon emissions footprint”.
those above the regression line have achieved their 2IPD A broader inclusion of greenhouse gases will be done in
score in an environmentally inefficient way. upcoming iterations, to address the demand from member
countries as outlined in Abidjan Congress resolution C
A second insight concerns the proportional growth in 17/2021.
carbon emissions related to 2IPD scores.
CONCLUSION
Postal development is a complex journey that requires Reaching significantly higher postal development levels
accurate data, continuous measurement and consistent remains the main goal for most DOs in the world though.
analysis. While the best roadmap for this purpose can vary from
country to country, sustainable success is more likely
The 2IPD intends to build such a framework for global through greater and greener collaboration among all
postal progress given the impact of well-functioning postal postal stakeholders.
services for citizens’ well-being and prosperity.
Ultimately, global sustainability for the sector will only
Encouragingly, 2021 can be seen as a positive year for be reached by scaling up collective data intelligence for
postal development across the world in a number of all. UPU member countries hold the keys to unleash the
areas. The reliability of postal services increased in many collective power of their postal data to ensure an enabling
countries: quality of service was higher than before the policy and operational environment that delivers best-in-
pandemic, and DOs were innovating in their way of class sustainable postal services to their citizens.
delivering items and communicating with their customers.
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
Postal journey towards a sustainable future | 41
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
Postal journey towards a sustainable future | 43
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
Latin America and Caribbean Region
Postal journey towards a sustainable future | 45
Africa Region
Arab Region
Asia Pacific Region
Latin America and Caribbean Region
46 | 2022 Postal Development Report
Africa Region
Arab Region
Asia Pacific Region
Latin America and Caribbean Region
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
50 | 2022 Postal Development Report
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
Postal journey towards a sustainable future | 51
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
52 | 2022 Postal Development Report
Africa Region
Arab Region
Asia Pacific Region
Europe and CIS Region
IC Group
Latin America and Caribbean Region
Postal journey towards a sustainable future | 53
2IPD + Reliability
Region Country Scores Changes PDL
Uganda 12.89 2
Mauritius 12.19 4
Kenya 11.09 5
Gabon 10.99 2
Nigeria 10.00 5
Mexico 14.96 5
54 | 2022 Postal Development Report
Belarus 14.34 8
Belgium 11.11 8
Togo 22.89 4
Eswatini 20.28 2
Mauritania 24.77 2
Sudan 12.67 3
Montenegro 12.12 4
Belarus 12.06 8
Bahamas 15.02 2
Postal journey towards a sustainable future | 55
BIBLIOGRAPHY ACKNOWLEDGEMENTS
Anson J., Arvis J.-F., Boffa M., Helble M., and Shepherd B. The Postal Development Report and the Integrated Index
“Time, uncertainty and trade flows”. The World Economy, for Postal Development are the result of teamwork across
vol. 43(9), pages 2375–2392, 2020. various units of expertise at the UPU International Bureau.
Anson J., Berthaud A., Klapper L., and Singer D. “Financial The 2022 Postal Development Report was prepared by
inclusion and the role of the post office”. World Bank Policy Dr José Anson, UPU Economist, under the guidance and
Research Working Paper 6630, 2013. supervision of Saleh Khan, Programme Manager, and Siva
Somasundram, Director of Policy, Regulation and Markets.
Anson J., Bosch Gual L., and Caron J. “Financial and trade
inclusion through postal networks” in “Postal economics for This report is possible thanks to the work conducted by
developing countries”. Ed. Joëlle Toledano, UPU, 2008. the International Bureau’s postal statistics team. We are
particularly grateful to Lukasz Piotrowski and Jessika Brena
Carballo J., Schaur G., and Volpe Martincus C. “Posts as in this respect. The authors also wish to thank Mauro Boffa
trade facilitators”. IDB Working Paper Series 701, 2016. and Fernao De Borba for their invaluable contribution
in the production process of the 2021 2IPD scores and
Hristova D., Rutherford A., Anson J., Luengo-Oroz M., and
analyses.
Mascolo C. “The international postal network and other
global flows as proxies for national wellbeing”. PloS ONE Section IX on postal carbon emissions was prepared with
11(6), e0155976, 2016. input and guidance from James Hale, UPU Sustainability
Expert. We would like to thank him for his time and
availability.
DISCLAIMERS Coron; as well as Sonja Denovski for a giving the 2022 PDR
a new look. Finally, we thank the International Bureau’s
editing and translation services for their work in ensuring
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Authorization to reproduce such third-party materials must
be obtained from the copyright holders concerned.
CE
Integrated
Index for Postal
Development
(2IPD) Score
NCE
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Design – Universal Postal Union
SWITZERLAND