The Role and Achievements of the Logistics Carbon Reduction Scheme

Transcription

1 The Role and Achievements of the Logistics Carbon Reduction Scheme A Submission to the Department for Transport s Freight Carbon Review 2012 LCRS is the only voluntary carbon emissions reduction scheme in the logistics sector LCRS provides a consistent and reliable means of recording and reporting emissions The scheme is free and open to all operators to join The scheme has 72 members operating over 60,000 commercial vehicles LCRS members are collectively committed to reducing the intensity of their carbon emissions by 8 per cent by 2015 (compared to 2010) and are on track to do so LCRS partner Administered by Freight Transport Association

2 This submission to the Department for Transport s Freight Carbon Review is made on behalf of the following members of the Logistics Carbon Reduction Scheme (LCRS) Aggregate UK Alan Firmin Ltd Alex Smiles Ltd and Waste Recycling Logistics Ltd Arla Foods Asda Bibby Distribution Biffa Municipal Boleyn Transport Ltd Boots UK Ltd Breezemount UK Ltd C & D Southwest Ltd C Brewer & Sons Ltd Caerphilly County Borough Council Canute UK Ltd Carlsberg UK Ltd Ceva Logistics Clipper Logistics Group Ltd Coca-Cola Enterprises Ltd Commercial Ltd Dairy Crest Ltd DHL Eddie Stobart Ltd Eurovia Group Ford Motor Company Transport Operations Frank Roberts & Sons G4S plc Hanson Cement Hi-Speed Services Ltd Howard Tenens John Lewis Partnership JW Suckling Transport Ltd Keystone Distribution Kuehne + Nagel Lenham Storage Co Ltd Maritime Transport Ltd Marshalls plc Menzies Distribution Ltd Nestle UK Newcastle City Council NFT Distribution Operations Ltd Norbert Dentressangle Logistics Ltd Norbert Dentressangle Transport Ltd OCS Group UK Ltd Owens (Road Services) Ltd P&O Ferrymasters Ltd Palmer & Harvey McLane Ltd Perth & Kinross Council Port Express Ltd Roy Bowles Transport Sainsbury s SITA UK Ltd South Tyneside Council Squadron Medical Ltd Stuart Lyons (Haulage) Ltd Superdrug Stores Ltd Tesco Distribution The Malcolm Group TNT UK Limited Turners (Soham) Ltd UK Power Networks UPS Veolia Environmental Services Viridor Warburtons Waverley TBS Wilton Transport Wincanton Wm Morrison Supermarkets plc Wolseley UK Yusen Logistics Zenith Hygiene The role of the Logistics Carbon Reduction Scheme Logistics carbon emissions The Logistics Carbon Reduction Scheme (LCRS) is providing a consistent and reliable framework for commercial vehicle fleet operators to record, report and reduce of carbon emissions from logistics activities. It is encouraging the collection and reporting of data in a consistent and statistically robust way that is allowing businesses to monitor their fuel usage and understand the greenhouse gas emissions this produces. It has established a tough but achievable reduction target and members of the scheme are on track to collectively achieve this by In reviewing the commitment and the progress of the logistics sector to achieving measurable reductions in emissions, the LCRS stands alone as a successful pioneer of business-led action in this sector. FTA seeks the continuing endorsement and support for the scheme by the Government as part of its climate change strategy. What is the Logistics Carbon Reduction Scheme? LCRS was set up three years ago. It is the only voluntary, industry-led approach to record, report and reduce carbon emissions from logistics. The scheme, which is administered by Freight Transport Association (FTA), is free to join and open to all commercial vehicle operators, not just FTA members. Aggregated fuel usage data from scheme participants has allowed the UK logistics sector to publicly report, for the first time, its contribution towards national targets to cut greenhouse gas emissions. So far, 72 commercial vehicle operators, including 3PLs, retailers, small hauliers, waste companies and local authorities, have joined the LCRS. This figure will continue to grow. They have committed to Figure 1 The overall carbon intensity of scheme participants emissions has decreased over time kilogrammes CO 2 e per km Source: Logistics Carbon Reduction Scheme Second Annual Report record, report and reduce their carbon emissions from road freight transport and to collectively reduce the carbon intensity of their freight operations by eight per cent by 2015, based on 2010 levels. By joining the scheme, operators demonstrate their green credentials and take part in a confidential, national carbon reporting scheme. Any size of operator is invited to join, whether they have five or 500 commercial vehicles. We work on the basis that if the operator purchases the fuel, then they own the emissions to avoid double counting. How the scheme works Scheme participants provide vehicle numbers, total fuel usage and activity data to FTA on a confidential basis, this is then converted into carbon dioxide equivalent (CO 2 e) emissions using Government approved conversion factors. FTA aggregates data from participants, reports totals and tracks improvements in emissions and fuel efficiency over time. FTA also visits each operator at least once to verify the company s data submission and to learn how the data provided to LCRS is relied upon within the rest of the business; this ensures that it is robust and credible. Why was the scheme set up? The LCRS was originally developed by 12 leading FTA members who recognised that industry was already striving to become more carbon efficient but that companies working in isolation could only make limited progress. The idea of a collective and voluntary scheme gave them the opportunity to develop an initiative that is workable for industry and provides consistent reporting. Since 2009, many others have made the same commitment. Figure 2 When compared to industry as a whole, scheme participants are making better progress in reducing emissions kilogrammes CO 2 e per vehicle km kg of CO 2 e per vehicle km by freight industry kg of CO 2 e per vehicle km by LCRS participants Source: Logistics Carbon Reduction Scheme Second Annual Report 2 LCRS: The Role and achievements of the Logistics Carbon Reduction Scheme

3 How the scheme is recording, reporting and reducing carbon emissions The carbon reduction target The LCRS establishes a common methodology for the recording and reporting of greenhouse gas emissions from logistics but importantly also guides actions to reduce future emission levels. The scheme identifies and promotes the principal means of reducing carbon emissions available to commercial vehicle operators and these have been formalised as the five Logistics Efficiency Indicators (LEIs). By measuring and monitoring these five key indicators and by taking action to improve some or all of their performance over time, operators can expect fuel usage to reduce and carbon emissions to decline. Logistics Efficiency Indicators Freight modal split proportion of freight moved by low carbon transport modes (rail and water) Empty running proportion of lorry-kilometres run empty Average payload weight average weight of loads carried on laden trips Fuel efficiency ratio of fuel consumed to total distance travelled Carbon intensity proportion of low carbon fuels/energy sources used in the freight transport operation Involvement of the Department for Transport in development of LCRS The target for the scheme was first agreed in early 2011; before publication, FTA sought comments from the Department for Transport (DfT) as to the appropriateness of the methodology used in setting the target. Following this engagement with the DfT, Minister Mike Penning MP agreed to endorse the scheme and this formally took place in April At that time, the scheme had 47 members operating 39,357 vehicles. It now has 72 members, operating 62,587 vehicles. The Government s Carbon Plan, published in December 2011, recognises the contribution being made by the LCRS in reducing freight carbon emissions. Industry is leading the drive to reduce emissions from freight. The Logistics Carbon Reduction Scheme, for example, aims to reduce emissions by 8 per cent by 2015, through improved efficiency and some modal shift to rail. LCRS members were surveyed on how their companies carbon emissions would change between 2010 and 2015, based on the five LEIs. FTA also surveyed the wider industry on the likely level of carbon reduction from freight transport, giving a wider base of contributions for the target setting process. Analysis conducted by Heriot-Watt University revealed an anticipated eight per cent reduction from scheme members. Scheme participants are collectively committed to achieving this eight per cent reduction in the intensity of CO 2 e emissions by 2015, compared to Letter from Mike Penning, April 2011 FTA published its Second LCRS Annual Report earlier this year, showing that given the opportunity to take action voluntarily, industry can and is making reductions in carbon emission levels. Baseline emission levels established the Second Annual Report has established the baseline from which the target is measured Emission levels reducing the intensity of emissions per vehicle kilometre reduced by 2.6 per cent (figure 1) during When compared to the industry as a whole, scheme participants are making better progress in reducing emissions (figure 2) Reductions on course to meet target when reviewing the data results collated from 2005 to 2010, the scheme is on course to reach its target reduction The diversity of vehicle operators in the scheme continues to grow and includes third party logistics providers, small hauliers, retailers and local authorities. Carbon reduction strategies modelled During 2011, FTA commissioned a unique web application from Heriot-Watt University that allows fleet managers to prioritise the most effective carbon saving techniques for them to invest in. The Carbon for Money application quantifies the carbon savings available from nearly 40 different fuel-saving techniques, from driver training to a switch of traffic from road to rail or water. The interventions are based on the LEIs. LCRS: The Role and achievements of the Logistics Carbon Reduction Scheme 3

4 Scheme members emission reduction strategies FTA has developed an annual survey to monitor uptake of carbon emission reduction interventions in logistics. This is designed to support the datasets aggregated from scheme members and provide core examples of how operators are cutting their emissions by measures such as eco-driver training, reducing engine idling and making greater use of double-deck vehicles. The results of the 2011 low carbon intervention survey were published in the Second Annual Report; this revealed the measures that LCRS members are using to cut emissions and the most popular carbon saving interventions being trialled. The survey revealed that interventions that improve fuel efficiency are already widely adopted by scheme participants. However, other forms of intervention, such as use of alternative fuels, are less mature in terms of take-up and offer further carbon saving potential. Highlights from the survey include the following. The increase in rail use by LCRS participants has saved 4.7 million hgv road miles LCRS participants have reduced hgv miles by 19.7 million since 2010, as a result of reducing empty running 37 per cent of LCRS participants have introduced additional doubledeck trailers onto their fleet since ,875 hgvs operated by LCRS participants are checked for items that affect fuel efficiency alongside mandatory safety-related inspections 74 per cent of LCRS participants regularly monitor the fuel performance of their hgv drivers and have an eco-driver training programme in place 29,415 hgv drivers have their fuel performance monitored by companies in LCRS 50 per cent of LCRS participants have increased the proportion of off-peak, evening and night-time deliveries in order to minimise the use of roads by hgvs during congested periods The survey will be repeated for the Third LCRS Annual Report to be published in early Pursuing sustainable principles means more trucks operating at full capacity, improving fuel efficiency and using fuels with lower carbon intensity, as well as use of less polluting modes. With the rising cost of conventional fuels, these measures make sense in terms of the environment as well as sound financial management. Stewart Oades FTA President Figure 3 What interventions have achieved the greatest saving in hgv mileage? Number of miles saved 20,000,000 17,500,000 15,000,000 12,500,000 10,000,000 7,500,000 5,000,000 2,500,000 0 Reduction in empty running Use telematics to optimise vehicle routeing Relocate distribution centres Accelerate turnaround times at collection and delivery points Increase the proportion of off-peak, evening and night-time deliveries Introduce computerised vehicle routeing and scheduling Zone deliveries on a nominated day basis Mode transfer Redraw/flex delivery boundaries around distribution centres Figure 4 What carbon saving interventions have had the most widespread take-up since 2010? 80 Percentage of respondents who have introduced interventions Driver fuel performance Eco-driver training Adopt vehicles with automated manual transmission Reduce engine idling Improve vehicle fill on laden trips (by weight and/or volume) Increase the proportion of off-peak, evening and night-time deliveries Mode transfer Make greater use Accelerate of double-deck vehicles turnaround (or high cube vehicles) times at collection and delivery points Introduce computerised vehicle routeing and scheduling 4 LCRS: The Role and achievements of the Logistics Carbon Reduction Scheme

5 Development and achievements of LCRS July December Launch of DfT Low Carbon Supply Chain Steering Group, of which FTA was a member, to identify how freight can reduce carbon emissions FTA President writes to Government outlining the industry s proposal to set up a scheme, supported by 12 founding businesses 2010 April July September October Logistics Carbon Working Group agrees the scheme rules Scheme is officially launched with 37 members operating 37,278 commercial vehicles Initial start-up review developed to check data from scheme members Parliamentary Under Secretary of State, Mike Penning MP, opts to back industry-led measures, such as the LCRS, to reduce carbon emissions from freight rather than making eco-driver training mandatory December The Department for Transport commences examination of initial start-up reviews. By the end of 2010, the scheme had 43 members, covering in excess of 39,000 commercial vehicles 2011 March April May June November December Carbon reduction target published in LCRS First Annual Report Parliamentary Under Secretary of State, Mike Penning MP, gives formal endorsement of the Logistics Carbon Reduction Scheme Meetings with the European Commission, DG Climate Change and DG Move to present on the LCRS Number of LCRS participants reached 50, representing over 45,000 vehicles Scottish Transport Minister, Keith Brown, voices his public support for LCRS Government s Carbon Plan published refers to LCRS and the actions taken by the logistics industry to reduce carbon emissions At the close of 2011, LCRS had 59 participants, operating 56,713 vehicles 2012 January May October Publication of Second Annual Report at DfT Listening to Industry event Bridgestone Tyres becomes first LCRS partner LCRS Awards launched Scheme has 72 participants, operating 62,587 commercial vehicles LCRS objectives The headline results from the Second LCRS Annual Report show that the scheme is on track to achieve its target of an eight per cent reduction in emissions intensity by The scheme objectives for 2013 are to: increase the number of companies in the scheme to more than 100 continue to make the scheme more attractive to smaller haulage companies and so include Scope 3 emissions for companies who use sub-contractors for distribution work with fuel purchase card and fuel retailing companies to offer carbon reporting services as part of the management information they supply to their clients provide industry leadership on the adoption of alternative fuels following the announcement of funding for low carbon hgvs in DfT s Logistics Growth Review support the trials of longer semi-trailers and defend the current flexibility of trailer heights for single-deck vehicles to maximise vehicle payloads and reduce the number of journeys develop a benchmarking service for scheme participants present the inaugural LCRS Awards LCRS: The Role and achievements of the Logistics Carbon Reduction Scheme 5

6 Scheme participants Members of the LCRS include: 6 LCRS: The Role and achievements of the Logistics Carbon Reduction Scheme

7 LCRS: The Role and achievements of the Logistics Carbon Reduction Scheme 7

8 LCRS in brief The challenge What is the LCRS? Why was it set up? What is its objective? How does it achieve that objective? Who does it cover? What does it cost? Transport emissions make up a quarter of greenhouse gas emissions, freight contributes 30 per cent Voluntary initiative to record, report and reduce carbon emissions from freight transport (scheme members have collectively committed to reduce the carbon intensity of their freight operations by 8 per cent by 2015 compared to 2015) Established by 12 founding FTA members in December 2009 as a response to the climate change challenge (Climate Change Act and DfT Low Carbon Strategy) To demonstrate to Government that the industry is contributing to climate change targets without the need for regulation or additional taxation Collectively tracks carbon reduction progress by industry and provides a platform to share best practice Businesses which purchase fuel for commercial vehicles, if you purchase the fuel, you own the emissions Membership is free Data required should be from standard operational datasets used by most companies Based on Defra voluntary greenhouse gas reporting framework What is its current size? Who are the scheme members? 72 members, accounting for 62,587 commercial vehicles (hgvs and vans) Members include: hauliers retailers local authorities 3PLs For Howard Tenens the Logistics Carbon Reduction Scheme is important on a number of levels. It enables companies to share experiences and best practice, from those who are just starting to reduce emissions with those who have experience of operating lower carbon transport. It also demonstrates to Government through credible data that the industry is working together to reduce emissions, and that it is proactive efforts throughout the supply chain, rather than increased taxation or regulation, that will yield carbon savings. Catherine Crouch Group Environment Director, Howard Tenens Associates Ltd Reducing fuel costs as a means of improving profitability and increasing our efficiency is a key priority for Owens (Road Services) Ltd. The Logistics Carbon Reduction Scheme is helping us to understand and deal with our transport operations and carbon footprint, and through this reduce our fuel use and our impact on the environment. The insights provided by the scheme have made us consider our purchasing policy for new trucks and supported us in reducing our fuel bill 10 per cent since the beginning of Ian Jarman Environmental & Legislation Manager, Owens (Road Services) Ltd The Logistics Carbon Reduction Scheme, managed by FTA, is the only freight sector-based initiative that records, reports and helps reduce carbon emissions from logistics. The scheme is free of charge, confidential and easy to take part in. Freight Transport Association Limited Hermes House St John s Road Tunbridge Wells Kent TN4 9UZ Telephone: Fax: Website: Registered in England Number /SW