MASHINIi

Royal Mail PLC.

RMG.LSE | Postal activities

Royal Mail PLC is a British multinational postal service and courier company. It provides postal and delivery services throughout the United Kingdom and internationally. The company collects, sorts, and delivers letters, parcels, and other items. Royal Mail also offers logistics and express delivery...Show More

Ethical Profile

Mixed.

Royal Mail's ethical profile is mixed. In 2023, significant strikes led to a 10% pay rise and £500 lump sum with the CWU, though reports suggest a 'toxic' work environment persists, with eCourier couriers striking in Oct 2024 for employee status. The company also suffered a LockBit ransomware attack in early 2023, resulting in data exposure. Positively, Royal Mail operates the UK's largest electric van fleet (around 5,000 vehicles) and targets net zero by 2040. They've also funded 141 community defibrillators and partnered with the British Heart Foundation to raise £2 million for CPR training.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect40
-100100
Fair Trade & Ethical Sourcing-30
-100100
Honest & Fair Business0
-100100
Kind to Animals0
-100100
No War, No Weapons-30
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech20
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

Royal Mail demonstrates a strong commitment to mental health, evidenced by its "Because Healthy Minds Matter" strategy, launched in 2017.

1
This strategy received the "Best Mental Health in the Workplace Strategy: Large Company" and "Grand Prix" awards in 2020.
2
The company has trained 1,000 mental health first aiders, with plans to expand to 1,500,
3
and increased mental health ambassadors from 160 to nearly 500 by 2020.
4
It provides unlimited mental health consultations for employees, their partners, and children,
5
and launched an enhanced Wellbeing Hub in 2023.
6
Royal Mail also partnered with Mental Health UK from 2017-2020,
7
donating £50,000,
8
funding community support groups,
9
and producing a film viewed over 86,000 times.
10
In healthcare education, Royal Mail's partnership with the British Heart Foundation aims to support CPR training for 1 million young people by 2026 and provide accessible heart health information.
11
The company's core business activities, such as postal and courier services, do not have direct health impacts, either positive or negative, nor do they carry addiction potential or require clinical trials. Similarly, the company does not produce food or pharmaceutical products. Workplace safety incidents are not considered under this value.

Fair Money & Economic Opportunity

0

Royal Mail PLC is a postal service and courier company and does not offer financial services such as loans, banking products, or consumer credit.

1
The 'Fair Money & Economic Opportunity' value and its associated KPIs are specifically designed to assess financial institutions on their provision of fair financial services. Therefore, all KPIs related to lending, deposit services, APRs, loan books, financial data portability, lending compliance, credit outcomes, community finance reinvestment, financial literacy programs, debt burden ratios, banking access points, and financial product simplicity are not applicable to Royal Mail's core business model as defined by the rubric's 0-tier thresholds. While Royal Mail's services are utilized by underserved populations for general financial management, this indirect support does not constitute the direct financial service provision measured by these KPIs.
2

Fair Pay & Worker Respect

40

Royal Mail's compensation plan ensures the London Living Wage for all employees, complemented by a profit-sharing scheme tied to company profitability until 2024-25.

1
The company has not had any substantiated labour-law or human-rights violations reported in the past three years (2023-2026). Historically, there was an age discrimination penalty in 2020
2
and several health and safety fines between 2003 and 2017.
3
The Communication Workers Union (CWU) represents approximately 140,000 non-managerial staff.
4
Royal Mail and the CWU agreed to a three-year pay deal in April 2023, which included a 10% salary increase over three years
5
and a £500 lump sum,
6
resolving significant industrial action.
7
A further three-year pay deal was agreed in 2025, providing a 4.2% basic pay increase in 2025,
8
an inflation-linked increase in 2026,
9
and a 2% increase in 2027.
10

Fair Trade & Ethical Sourcing

-30

Royal Mail requires all its suppliers to comply with a Responsible Procurement Code of Conduct, based on UN Global Compact principles, and includes standard contract clauses prohibiting modern slavery in its Master Purchase Agreements and Purchase Order terms.

1
The company reported no material risks related to modern slavery in FY 2024-25.
2
, and one report in FY 2021-22 was not upheld.
3
Existing suppliers are reviewed at least every three years as part of the GLS Business Partner Approval Process.
4
For traceability, 100% of Royal Mail's high-risk suppliers are monitored daily by GAN Integrity.
5
As of FY 2024-25, 42 high-risk tier one and tier two suppliers are registered on SEDEX, out of over 4,000 total suppliers.
6

Honest & Fair Business

0

Royal Mail promotes sustainability and ethical practices across its supply chain, requiring compliance with its Responsible Procurement Code.

1
This aligns with UN Global Compact Principles.
2
In FY 2020-21, the company conducted on-site audits with 16 subcontractors, reporting results via the Sedex platform.
3
This platform monitors supplier ESG performance and conducts third-party audits for disclosure accuracy.
4
Non-compliant suppliers are removed from the chain.
5
Royal Mail's Executive Board oversees ESG activities, including whistleblowing and compliance strategies, supported by an ESG team.
6
The company refreshed its Business Standards booklet, categorizing standards into customer care, colleague relations, and business ethics.
7
New UK legislation, the Economic Crime and Corporate Transparency Act 2023, introduces a 'failure to prevent fraud' offense for large organizations, with potential unlimited fines, emphasizing robust fraud prevention.
8

Kind to Animals

0

Royal Mail actively engages in public policy related to animal welfare, specifically concerning responsible dog ownership to protect its delivery workers. In the past year (ending June 30, 2025), there were 2,197 dog attacks on staff, resulting in 74 significant injuries and 2,700 days of absence.

1
The company runs an annual Dog Awareness Week, partners with Blue Cross for Responsible Dog Ownership Courses and a "Protect Your Postie" webinar, and has conducted over 30 private prosecutions against dog owners.
2
Royal Mail also successfully pursued two High Court actions, leading to a 2020 ruling that allows prosecution of dog owners if their pets cause injury through letterboxes.
3
For all other animal welfare KPIs, including cruelty-free certification, animal testing, humane operations, ethical input substitution, supplier audits, cage-free sourcing, animal agriculture ethics, and animal-free R&D collaboration, the company's service-oriented business model means these are not applicable. No measurable biodiversity impact of conservation initiatives was evidenced.

No War, No Weapons

-30

Royal Mail PLC has no direct arms revenue. It provides minor defense-adjacent services, including an £11 million agreement in 2016 for mail services to overseas military personnel

1
and logistical support for military operations via virtual postcodes.
2
A 2004 purchase order from the U.S. Department of Defense was for $2,148.
3
In 2009, the UK Ministry of Defence contracted Royal Mail for mail services, which were solely postal-related.
4
Royal Mail Group has been a signatory of the United Nations Global Compact since 2005.
5
Its Responsible Procurement Code is based on the ten principles of the UN Global Compact,
6
and its Corporate Responsibility policy details its support of the UN Global Compact, the UN Universal Declaration of Human Rights, and the International Labour Organisation’s Fundamental Conventions.
7

Planet-Friendly Business

-30

Royal Mail's total market-based emissions were 1.173 million tCO₂e in 2024-25, representing an overall reduction of 25% since its 2020-21 base year.

1
The company's Net-Zero 2040 targets, including interim 2030 targets for Scope 1, 2, and 3 emissions, have been externally validated by the Science-Based Targets Initiative (SBTi)
2
and align with a 1.5°C decarbonisation pathway. Royal Mail purchases 100% renewable electricity across its entire estate.
3
Furthermore, 97% of its waste is diverted from landfill.
4
In 2024, the company incurred one water pollution violation, resulting in a £150,000 penalty for discharging diesel into Billing Marina and the River Nene.
5
Biodiversity efforts include planting 17 wildflower meadows, installing 47 bird boxes, and participating in the No Mow May initiative across 60 sites.
6
The company has deployed approximately 7,000 electric vans
7
and utilized over 27 million litres of Hydrotreated Vegetable Oil (HVO) biofuel
8
, contributing to an average carbon footprint of 165g CO2e per parcel.
9

Respect for Cultures & Communities

0

Royal Mail collaborates with Historic England to preserve the character and heritage of post boxes across the UK

1
, actively maintaining, repairing, and conserving these local landmarks
2
. The company has established 8 formal partnerships with various organizations
3
, including Mersey Trust, a veterans organization
4
, British Heart Foundation
5
, Action for Children
6
, The Stroke Association
7
, Prostate Cancer UK
8
, Missing People Charity
9
, and Historic England
10
.

Safe & Smart Tech

20

Royal Mail achieved a 98.7% completion rate for its 2024-2025 annual e-learning data protection and information security training, which is required for all employees

1
. The company has embedded Privacy by Design and By Default into its Change Management Lifecycle, requiring all projects to complete a Privacy Impact Assessment
2
. Royal Mail also has an AI Governance Framework supported by six principles, policy, and processes for safe AI use
3
. The company meets UK GDPR regulatory requirements, complies with postal services legislation, and adheres to the Mail Integrity Code of Practice
4
. However, Royal Mail experienced two unauthorized data use incidents within the past three years. A January 2023 LockBit ransomware attack led to the leak of approximately 44GB of data and caused severe disruption to international deliveries
5
. In March 2024, a breach at its supplier Spectos resulted in the alleged leak of 144GB of Royal Mail customer personal information and internal communications
6
. Following these incidents, Royal Mail invested £10 million in remediation and systems resilience
7
.

Zero Waste & Sustainable Products

0

Royal Mail achieved a 98% waste diversion rate, with waste being recycled, reused, or diverted.

1
The company exceeded its 2030 target of a 25% waste reduction by achieving a 27% reduction against its 2020/21 base year, seven years ahead of schedule, saving 2,000 tonnes of waste annually.
2
Multiple waste reduction initiatives are in place, including the removal of 4.4 million plastic drinking cups, their replacement with biodegradable paper cups, and promoting the reuse of cups and bottles.
3
Other initiatives include a reuse program for pallets, substituting single-use plastic cable ties with reusable straps, and replacing single-use cardboard trolley sleeves with durable, reusable versions.
4
These reusable trolley sleeves are made from fully recyclable corrugated plastic, contain 30% recycled material, last up to four years, and can be used up to 3,000 times.
5
The company also introduced returnable e-commerce packaging made from recycled plastic, designed for reuse up to 20 times, which consumers can return via postboxes.
6
Royal Mail is also reviewing all packaging and single-use items, including using tertiary packaging with over 85% recycled content and exploring reductions in elastic bands.
7

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.