GoGreen Program. Best Practices in Asia and Beyond. Corporate Public Policy and Responsibility

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1 Corporate Public Policy and Responsibility GoGreen Program Best Practices in Asia and Beyond Björn Hannappel 6 th Regional EST Forum in Asia, New Delhi, 5 December 2011

2 Agenda Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 2

3 Agenda Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 3

4 Increasing Importance of Green Logistics and Carbon Transparency Interest in Green Logistics has significantly increased in recent years and demand for transparency of carbon emissions has expanded considerably Carbon neutral transportation Customers, competition and business opportunities Melting polar ice caps Green Supply Chain Availability of technologies Green Logistics Climate change Population, public perception and behaviour Congestion charge Legislation Tolls CO 2 taxes EU ETS Source: DHL Express Asia Pacific GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 4

5 Climate Protection A Special Responsibility Deutsche Post DHL s carbon footprint As a global logistics company, we move goods and information worldwide. With transport at the core of our business, we produce CO 2, the main cause of climate change. We initiated the GoGreen environmental protection program to accept responsibility for the environment by reducing our impact. Source: Corporate Responsibility Report 2010, Deutsche Post DHL in million tonnes of CO 2 Subcontractor emissions (Scope 3) Own emissions (Scopes 1 & 2) GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 5

6 Reaching Goals through Efficiency Deutsche Post DHL was the first globally operating logistics company to set itself a concrete CO 2 efficiency target 100 % -10% -30% We aim to improve our CO 2 efficiency including subcontractors by 30% by the year 2020, compared to our 2007 baseline. Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 6

7 Focus Areas GoGreen improves our carbon efficiency and sets the standards for green logistics Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 7

8 Agenda Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 8

9 Measuring CO 2 Emissions Our Carbon Accounting & Controlling System ensures transparency on all relevant levels CARBON ACCOUNTING CARBON CONTROLLING TRANSPARENCY Capture of CO 2 emissions and reference base Calculation of CO 2 emissions and carbon efficiency 1 Management at the relevant level 2 Transparency for the customer Energy consumption Reference base Scope 1 & 2 Scope 3 Business Intelligence System 3 4 Product transparency Public reporting Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 9

10 Measuring CO 2 Emissions Our accounting systems were modified to record CO 2 emissions for Scope 1 and Scope 2 emissions We ve been tracking our own CO 2 emissions (Scopes 1 & 2) through our accounting systems since Invoice Accounting CO 2 emissions CO 2 l l CO 2 l : fuel and energy consumption data relevant to CO 2 (Scopes 1 and 2) Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 10

11 Measuring CO 2 Emissions The biggest challenge is determining the emissions of our subcontractors 18% 82% 82% of Deutsche Post DHL s emissions are attributed to subcontractor transports (Scope 3) Scopes 1 & 2 Scope 3 Today: Subcontractors are surveyed in order to determine Scope 3 emissions. In the future: We are striving for the establishment of standards for Scope 3 reporting in the logistics industry. We are working with various international organizations to achieve this. Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 11

12 Standardization of Scope 3 Reporting Deutsche Post DHL is actively pursuing the standardization of subcontractor emission tracking Current Situation: There is no standard process in place for the capture and calculation of subcontractor emissions. Each individual logistics company must approach carriers independently and data is often inexact. Goal: Creation of an independent organization responsible for the collection, compilation and publication of this data using standardized processes. This is a required first step toward green subcontractor management. Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 12

13 Standardization of Scope 3 Reporting Deutsche Post DHL is actively engaged in SmartWay / Green Freight Programs around the globe SmartWay US Fleet Smart Canada Transporte Limpio Mexico SmartWay Australia SmartWay Europe Green Freight China Program Green Freight India Green Freight Japan Source: GoGreen, Deutsche Post DHL GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 13

14 Agenda Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 14

15 Example: Fujitsu supply chain optimization in Japan DSC Japan has developed a Green Logistics Partnership Promotion Project with Fujitsu to reduce CO 2 emission in logistics process Supply chain optimization (modal shift from road to rail) 3R: Reduce, Reuse, Recycle Centralized dispatch control system for vehicles in Tokio to reduce the number of required vehicles 45% carbon reduction compared to year 2000 baseline 2,000 tonnes of carbon emissions reduced in one year Improved load efficiency Achieved Company Group Environmental Protection Program Recognition from Japanese government (Green Logistics category, METI) Source: DHL Supply Chain GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 15

16 Example: Blue Dart DHL SmartTruck in Bangalore / India The SmartTruck pilot project brings a European solution to a challenging metropolitan area Expected benefits: SmartTruck combines different technologies and information sources to optimize daily business Dynamic tour planning Consideration of traffic data Transition to flexible sorting process Customer communication Driver navigation support and positioning Shorter route duration More stops per hour Fuel savings CO 2 savings Cost savings Enhance service for customers Source: DHL Solutions & Innovations (DSI) GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 16

17 Example: Eco Driving Competition in India DHL Express India started an Eco Driving Competition in 2010 to reduce fuel costs and improve carbon efficiency in road transport Average fuel savings of 5-10% Eco Driving Competition started mid 2010: Driver trainings Idea competitions Tracking of fuel efficiency Regular best practice sharing Additional: cost savings and fewer accidents as well as reductions in local emissions and noise levels Source: DHL Express Asia GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 17

18 Thanks for your attention! Deutsche Post DHL Corporate Public Policy and Responsibility GoGreen Björn Hannappel GoGreen New Delhi, India 5 December 2011 Deutsche Post DHL Page 18