ENVIRONMENTAL REPORT 2017
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1 ENVIRONMENTAL REPORT
2 INDHOLD 1. INTRODUCTION MILJØDATA ENVIRONMENTAL REPORT ENVIRONMENTAL POLICY ENVIRONMENTAL CONDITIONS ICT LOGISTICS INITIATIVES EFFORTS AND RESULTS (2017) PLANNED INITIATIVES FOR COMPANY DETAILS ACCOUNTING POLICIES GLOSSARY, ABBREVIATIONS AND EXPRESSIONS TRUCK EMISSION STANDARDS...15 About the preparation of the Environmental Report The environmental report and its associated data have been prepared by the undersigned at TransECO2. Compilation of emissions and energy consumption from the activities have been prepared in accordance with the guidelines in DS EN The environmental data have been prepared based on information from ICT Logistics and information collected by ICT Logistics from their suppliers and subcontractors. The data collected has been discussed with the management of ICT Logistics. On the basis of this it is my view that the figures in the report represents a true picture of the development in the company s most significant environmental aspects. Lars Dagnæs TransECO2 April
3 1. INTRODUCTION ICT Logistics is a logistics and transport solutions provider operating primarily in Scandinavia/Northern Germany/Benelux/UK, connecting them to Russia & CIS countries, the Baltics, Central and Eastern Europe and the Balkans. We aim for our clients to see ICT Logistics as their preferred partner in all our core activities & markets. We plan to achieve this by offering cost effective and innovative logistics solutions that optimise our customer s values through a flexible approach, tailored to meet the demands of each individual customer. ICT Logistics believes that we all have a shared responsibility for our environment and as a professional and responsible logistics provider, we are under an obligation to implement measures, proactively, that reduces the impact on the environment from our activities. We are open about our efforts to realise the improvements and the results we achieve. During 2012, we developed a framework for the environmental work and formulated our environmental policy. We measure the effect of our work through a number of KPI s and review and update our action plan annually. We have chosen 2012 as our base year, and this forms the basis for our improvement measurements. From 2013, we published our annual environmental report that documents our work in the environmental area and our eco-efficiency for the previous year. Our goal was to achieve a 15% reduction in CO 2 e emissions per tonne/km, from ICT Logistics combined transport activities, in relation to 2012, by the end of the year This report shows that, since 2012, our CO 2 e emissions per tonne/km has been reduced by 17%. This means we have reached, and even surpassed, our goal for the five-year period. The key to achieving environmental improvements have been: Employee training and awareness. Better utilisation of resources and fuel efficiency Technology. Modern trucks, trailers and use of IT. Improved energy efficiency from ship and rail transports Innovative use of ship and rail services in our logistics chain, protecting the environment and reducing CO 2 emissions Improved logistics. Better utilisation of capacity and reduction in empty mileage The Paris Climate Agreement from 2015 has secured global commitment to the reduction of greenhouse gas emissions. The framework has been set for international cooperation to keep the global temperature increases to below 2 C. With the Climate Agreement a path has been drawn towards 2050, where the global energy system must be converted to ensure substantial reductions in CO 2 emissions. The aim is a future independence from fossil fuels such as oil and coal. We acknowledge our responsibility to contribute towards the development of sustainable transport solutions within the framework set in the global 2015 Paris Agreement. The goals in the agreement can seem daunting and sometimes unrealistic but in our view there is no excuse for not acting. The track we take today and tomorrow will lead us towards the long-term goals. The success of our efforts to create a better environment and reduce the impact of our activities on the global climate depends entirely on the company s employees sharing our vision for a better environment and to obtain their buy-in to ensure our environmental objectives are achieved. Our annual environmental report is a key element in the ongoing communication and dialogue with our clients, employees, and business partners in general, on ways of reducing the environmental impact of our transport activities, which constitutes an ever increasing part of modern society. April 2018 Leif Pedersen 3
4 2. MILJØDATA 2017 As outlined in ICT Logistics environmental policy the indicators below form the basis of our environmental work. The report for 2017 is the sixth annual environmental report published by ICT Logistics. Base year against which improvements are measured is ICT Logistics environmental performance in 2017, 2016 and 2012 (base year), environmental indicators Note CIS/ Baltics Central-/ Eastern Europe CIS/ Baltics Central-/ Eastern Europe CIS/ Baltics Central-/ Eastern Europe Units/meassured (M) or calculated (C) (base year) CO 2 e emissions, well->wheel/ton km Own trucks 1 0,078 0,077 0,095 kg CO 2 e/ton km (M) Subcontractors trucks 2 0,084 0,056 0,085 0,057 0,095 0,079 kg CO 2 e/ton km (C) All trucks 0,083 0,056 0,084 0,057 0,095 0,079 kg CO 2 e/ton km Ship 3 0,064 0,084 0,090 0,105 0,100 kg CO 2 e/ton km (M) Rail 4 0,022 0,022 0,022 kg CO 2 e/ton km (C) Total 0,075 0,056 0,081 0,058 0,082 0,079 kg CO 2 e/ton km Modal split Share of transportation by Truck 76% 99% 76% 99% 68% 100% % (M) Ship 17% 1% 17% 1% 14% % (M) Rail 7% 7% 18% % (M) Share of empty km Own trucks 5 24% 24% 20% % (M) Subcontractors trucks 6 30% 5% 30% 5% 20% 5% % (M) Fuel consumption/km Own trucks 7 0,33 0,32 0,38 litres/km (M) Subcontractors trucks 8 0,33 0,30 0,33 0,31 0,38 0,38 litres/km (C) Trailer fleet Long lease units Curtain trailers Number Average age ,8 Average age months Trucks Own Distribution on euronorm 4,62 4,81 4,21 Average euro norm (M) Subcontractors trucks Distribution on euronorm 9 4,20 5,97 3,81 5,85 3,25 4,51 Average euro norm (M) 4 See the comments on the notes in section 5. Accounting policies
5 3. ENVIRONMENTAL REPORT The senior management at ICT Logistics believes that the environmental report for 2017 contains all the information necessary to assess the environmental issues that are most important for the company to deliver its environmental objectives. 3.1 ENVIRONMENTAL POLICY As a transport and logistics company, we have a responsibility for minimising the environmental impact of our activities. Our goal is to be the preferred transport and logistics partner in all our core markets, and for all customers who deem the environment as a key focus area. We are committed to reducing the environmental impact of our activities, through continuous improvements, and by complying with all statutory requirements. The focus of our environmental efforts is: Partner and employee involvement Employee conduct and training Modern and efficient fleet We are open to new ideas and initiatives which can lead to further streamlining Measurements of our eco-efficiency and openness about the progress we have made towards a better environment 5
6 3.2 ENVIRONMENTAL CONDITIONS The most important environmental impacts for the company are: Energy consumption for and CO 2 e emissions from the ICT Logistics transport activities in connection with the company s combined logistics system. This also includes subcontractors energy consumption and CO 2 e emissions. In addition the other emissions from our transport acitivites (NO x, SO 2 HC and particles) also constitute a significant environmental impact. We have decided to measure these emissions according to the Euronorm for our own vehicles and for the trucks that our subcontractors use to transport our customers goods. We have decided to measure the development in our eco-efficiency according to a number of indicators: CO 2 e emissions per tonne/km for our two land areas Central and Eastern Europa and the Baltics/CIS countries. We measure the development in CO 2 e per tonne/km from road, rail and sea. Development in modal split, i.e. the split on transport modes (road, sea and rail) Proportion of empty trips by truck Energy consumption measured as litres/km by truck Age of trailer fleet (trailers on long-term lease) Split of tractor units according to Euronorm 3.3 ICT LOGISTICS INITIATIVES At ICT, we have chosen the following focus areas for our environmental activities: Our drivers focus on eco-conscious driving Maintenance of the company s own vehicles and trailers Cooperation with our regular subcontractors on eco-conscious driving and environmental data concerning the activities they perform for ICT Logistics We aim to minimise the number of kilometres driven with empty trucks and reduce the environmental impact of each tonne of goods we carry by focusing on routes and return loads Our fleet of tilt trailers on long-term lease comprising of more than 130 units, must not be more than three years old before being replaced. As the figures show, the average age is currently 25 months, i.e. just over two years We use sea transport between Central Europe and the Baltics and between England and Denmark. This is a more direct route (thereby ensuring lower CO 2 e emissions), and we relieve the road network of heavy goods traffic. In 2017, transport by sea accounted for 11% of the total transport activities performed by ICT Logistics We use rail transport when possible and financially viable. Rail transport is widely used for regions in central Russia where it is often difficult to find return loads. Rail transport emits less CO 2 e per tonne/km. In 2017, rail transport accounted for 4% of the total transport activities performed by ICT Logistics In 2016, our management system in Denmark was certified to the ISO 14001:2015 standard. 1 In addition to tilt trailers, ICT Logistics also has approx. 60 specialist trailers at its disposal. These do less annual mileage and are replaced less frequently than the tilt trailers. 6
7 3.4 EFFORTS AND RESULTS (2017) 17 percent reduction in CO 2 e per tonne/km since 2012 In 2017, the average emission of CO 2 e per tonne/km was 67,5 g CO 2 e - compared to 81,5 g CO 2 e per tonne/km in 2012 (base year) and 71,5 g CO 2 e per tonne/km in In ICT Logistics we have seen a reduction in CO 2 e emissions per tonne/km of approx. 17% compared to our base year. Had the emissions per tonne/km in 2017 remained the same as in 2012, it would have meant increased emissions of approx tonnes of CO 2 e. CO 2 e emissions per tonne/km in 2012 (base year), 2016 and (base year) The improvements in emissions per tonne/km for the combined transports, we have seen since 2012, are a result of: Employee conduct and training Improved logistics (less empty mileage and better utilization within our transport system) A 35% reduction in CO 2 e emissions per tonne/km on the four DFDS routes utilized by ICT Logistics Changed split in no. of tonne/km on truck, by ship and rail Points elaborated on the following page. 7
8 Emissions of g CO 2 e per tonne/km in 2017, 2016 and 2012 (base year) average ICT rail ship subcontractors trucks own trucks (base year) CIS/Baltic States region own trucks ICT Logistics Since 2012, the emission of CO 2 e per tonne/km has dropped by 18%, for ICTs own trucks, in the CIS/Baltic States region. The improvement is the result of better utilization of trailers (improved filling degree) and fuel (distance per litre). CIS/Baltic States region subcontractors Since 2012, the emission of CO 2 e per tonne/km has dropped by 13%, for subcontracted trucks, in the CIS/Baltic States region. Our subcontractors have improved their performance through focusing on eco-conscious driving and through better utilization of trailers. ICT Logistics cooperates with a number of regular subcontractors in the region where we share and analyse the diesel consumption per km with them. The results are used as a base of this environmental report. Central Eastern Europe Subcontractors trucks Since 2012, the emission of CO 2 e per tonne/km has dropped by 28%, for subcontracted trucks, in the Central Eastern European region. The improvement is the result of better utilization of trailers (improved filling degree) and fuel (distance per litre). As is the case in the CIS/Baltic States region ICT Logistics cooperate with a number of regular subcontractors in the region where we share data on eco-conscious driving and analyse the diesel consumption per km with them. Ship ICT Logistics use RO-RO vessels on a number of routes between Denmark, Germany, Sweden and Lithuania - as well as routes between Denmark and the UK. As can be seen, the CO2 e emissions from the vessels, per tonne/km, is the same as for trucks. However, as the RO-RO routes mean a more direct line of transport, CO 2 e emissions are reduced when going by sea. Compared to 2012, the CO 2 e emission per tonne/km has been reduced by 35%. 8
9 Rail ICT Logistics use rail transport to a number of destinations in the Russian/CIS market. CO 2 e emissions per tonne/km are lower for rail transports than for truck and ship. CO 2 e per tonne/km for rail transports are calculated. The use of rail has declined by 14% in 2012 to 4% in The decrease in rail transport is due, partly to a reduction in the activities where rail transport is financially viable, due to a changed pricing structure from the rail companies. Transport activities distributed between modes of transport 85% of the combined transport activities measured in tonne/km through 2017 were carried by truck, 11% by ship, and 4% by rail. Note that, while rail accounted for 4% of the transport work, it only contributed 1% of the total CO 2 e emissions. Compared to 2012, the share of the collective transport work by truck has risen from 75% to 85%. Ship transport has remained at 11% and goods by train from 14% to 4%. The background for this is the shift in our market situation where Central Eastern Europe has overtaken our CIS/Baltic States traffics. Rail transport is mainly relevant in relation to the CIS/Baltic States market and dependant on the goods carried. Development in transport activities in percent in 2017 & 2016 from 2012 (base year) (base year) Own trucks Subcontractors trucks Ship Rail 9
10 TRUCK FLEET - EMISSION STANDARDS In 2017, the average Euronorm for ICT Logistics own tractor units was 4,6, while the average Euronorm for subcontractors tractor units driving for ICT Logistics in 2017 was 4,4 for tractor units driving in CIS/the Baltic and 6 for tractor units driving in Central and Eastern Europe. As shown in the figures below, since 2012, there have been positive developments in all categories of vehicles, used by the subcontractors commissioned, with an increase in the average Euronorm. Average emission standard for tractor units used for transport activities in 2012 (base year), 2016 and (base year) CIS/BALTICS Trucks (own) CEO CIS/BALTICS CEO Trucks (subcontractors) AGE OF TRAILER FLEET In 2017, the average age of tilt trailers on long-term leases was 25 months. Age, in months, of tilt trailers on long-term leases in 2017, 2016 and 2012 (base year) (base year)
11 COMBINED CO 2 E EMISSIONS The total transport activities carried through ICT Logistics collective transport system in 2017 accounted for a total emission of approx tonnes carbon dioxide equivalents (CO 2 e). 89% of the total emissions came from road transport while transport by ship accounted for 10% and rail for 1%. In 2017, ICT Logistics collective transport activities, measured in tonne/km was 10% lower than As we have seen efficiency improvements in CO 2 e per tonne/km of 17% since 2012, the total CO 2 e emissions have been reduced by approx. 25% when comparing 2017 to ICTs combined CO2 e emissions in 2012 (base year), 2016 and 2017 by means of transport. (Tonnes CO2 e) Rail Ship Subcontractors trucks Own trucks (base year)
12 3.5 PLANNED INITIATIVES FOR 2018 As documented ICT Logistics have reduced the CO 2 e emissions per tonne/km by 17% in the five-year period from 2012 to At ICT Logistics we will work towards a new goal of reducing CO 2 e emissions per tonne/km by 8% in 2022 compared to A reduction of this proportion over the next five years will require deployment of products and technology that are not mature for market. We have chosen to group our efforts as follows: I. Follow-up on efforts already implemented in the first five-year period Key areas: Energy consumption (litres/km) on ICT Logistics own trucks as well as trucks run by our subcontractors Use of rail transport to destinations when possible and financially viable where goods are suited to this mode of transport Improvement in energy efficiency of vessels on the routes we use Optimised logistics, in cooperation with customers, where efficiency can be improved (better utilisation of equipment and reduced empty running) through the introduction of hubs in the traffics Over the next five-year period we see limited potential for improvements in these areas. It is, however, important that we continue to monitor our performance to ensure that the improvements we have achieved are, as a minimum, maintained. II. Areas to be explored short-term In the short-term the following areas could have potential for further improvements: Better utilisation of the combined transport capacity, through reduced empty mileage, where developments in the markets may make it possible Development of innovative solutions based on ship and rail Improvement in energy efficiency from vessels New technology in trucks, such as regenerative brakes and more energy efficient engines We will regularly scan the market and assess the possibilities of implementing innovative solutions. III. New areas, not yet mature for market Examples of areas in this category could be New second generation bio fuels, for example HVO Solar cells on trucks or increased electrification through use of grid charging Further improvement in trucks through weight reduction and improved driveline We will be following the technological advances and are open for participation in demonstration- and market development projects.. 12
13 4. COMPANY DETAILS Company ICT Logistics A/S Transportbuen Herning CVR: Hjemmeside: Management and Signatory CEO Leif Midtgaard Pedersen Tlf: lmp@ict-as.dk Industry designation Main activity Other transport-related services DB03: International freight, logistics and shipping Environmental data period Januar 1 st 2017 December 31 st
14 5. ACCOUNTING POLICIES ICT Logistics A/S s environmental report is prepared with a view to providing our customers and other stakeholders with an overview of the company s environmental performance. The notes below explain how the data in the environmental report are procured. Note 1. The development in energy consumption for trucks based on the total number of vehicle-kilometres (measured) and the diesel consumed when operating the company s own vehicles. Energy consumption and CO e emissions are calculated based on diesel consumption. Calculations of energy consumption and CO e, uses key figures from the DS EN standard, Methodology for calculation and declaration of energy consumption and GHG emissions of transport services (freight and passengers). Transported freight volumes are calculated from a representative sample of all transport assignments performed by ICT Logistics. Note 2. ICT Logistics have collect actual diesel consumption figures (per km.) from a number of regular subcontractors for our calculations. For 2012 (base year) it is assumed that the fuel consumption per kilometre of subcontractors vehicles is approximately the same as that of ICT Logistics own trucks. Vehicle-kilometres are calculated on the basis of the invoices submitted by subcontractors. Transported freight volume per trailer has been calculated using a representative sample of all transport jobs performed by ICT Logistics. Note 3. CO 2 e emissions from ships have been calculated on the basis of data supplied by the shipping lines used by ICT Logistics. From 2017 DFDS have calculated the energy consumption on their vessels according to EU s MRV regulation (EU 2015/757). DFDS infoms that they have chosen the area allocation method to distribute energy consumption between goods and passengers. Transported trailers have been calculated on the basis of settlements with the shipping line. Freight volume per trailer and proportion of empty trailers have been calculated using representative samples. Note 4. CO 2 e emissions from rail transport are calculated on the basis of the goods transport module in the Danish Business Authority s Climate Compass. The calculations are based on the freight that has been carried by rail, and on the assumption that all shipments have been carried out using trains pulled by diesel engines in Russia. Note 5. The proportion of empty trips by the company s own vehicles has been calculated using data from ICT Logistics Logistics Management system. Note 6. The proportion of empty trips by subcontractors vehicles in the Baltics and the CIS countries have been calculated using data from ICT Logistics Logistics Management System. Note 7. Energy consumption (km per litre diesel) by ICT Logistics own trucks is measured on the basis of vehicle-kilometres travelled and the volume of diesel used. Note 8. ICT Logistics collect diesel consumption data from a number of regular subcontractors as a base for our calculations. See note 2. Note 9. The distribution of subcontractor tractor units by Euronorm has been calculated on the basis of reports submitted by subcontractors. 14
15 6. GLOSSARY, ABBREVIATIONS AND EXPRESSIONS CO 2 e (carbon dioxide equivalents). Carbon dioxide (CO 2 ) is emitted when fossil fuels are combusted. Carbon dioxide is the most important greenhouse gas. In Europe, the transport sector accounts for approx. 32% of total CO 2 emissions. The Kyoto Protocol, the international treaty to reduce greenhouse gas emissions, lists in addition to CO 2 the greenhouse gasses as being: methane (CH 4 ), nitrous oxide (N 2 O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF 6 ) Emissions of the six greenhouse gases are often calculated as a total value, CO 2 e (carbon dioxide equivalents), where the shares of the six gases are combined according to their relative global warming potential (GWP). The CO 2 e values are calculated as well-to-wheel, i.e. total emissions including those from the processes of extracting, refining and transporting the fuel to the fuel tanks of the means of transport, and tank-to-wheel, which only comprises emissions from combustion in the engine of the respective means of transport. NO x (nitrous oxides) is a generic term for compounds of nitrogen (N) and oxygen (O). Produced during combustion, nitrous oxides lead to acidification of subsoil and groundwater and may irritate the airways. HC (hydrocarbons) are formed through the incomplete combustion of fossil fuels. Hydrocarbons is a generic term for methane and non-methane hydrocarbons (NMHC). Some hydrocarbons are carcinogenic. In addition, hydrocarbons contribute to the formation of ozone and greenhouse gases. Partikler from diesel engines constitute a significant health risk in the local environment and increase the risk of cancer. New engine technology (particle filters) is contributing to reducing particle emissions in exhaust gases. SO 2 (sulphur dioxide) is formed through the combustion of sulphur in diesel. Today, the amount of sulphur in truck diesel fuels is very limited. Sulphur dioxide is the main cause of deforestation and acidification of the subsoil and groundwater. Sulphur dioxide also causes breathing difficulties. From 2015 ships, sailing in the Baltic Sea must use sulphur-free fuel. Alternatively, the SO must be removed from the exhaust passing through the ship s funnel. HVO (Hydrotreated vegetable oils) is a synthetic diesel product produced from plant oils (or animal fat). HVOs have the same properties as diesel, which means it can be used in all diesel engines and compared to FAME (1st generation diesel). They do not have the negative properties such as higher congealing point or the need for extra purification of the smoke fumes from combustion. The use of HVO can potentially mean a reduction in the CO 2 e emissions of up to 90%. Today there is a very limited production, globally, of HVO. 6.1 TRUCK EMISSION STANDARDS Since the early 1990s, it has been a requirement within the EU (and before it the UN) that heavy diesel vehicles weighing more than 3.5 tonnes must, on being registered for the first time, meet limits for emissions of air polluting substances the so-called European emissions standards (Euronorm). Over the years, these norms have been raised several times. The implementation dates and threshold limits are stated below. Limits for emissions of NO x, HC, CO and particles (PM) from heavy diesel vehicles (g/kwh) for EURO 3, 4, 5 and 6 trucks, as well as the dates for introducing the engine technology. NO X HC CO PM EURO 3 - Type approval 1/ , new vehicles 1/ ,0 0,66 2,1 0,10 EURO 4 - Type approval 1/ , new vehicles 1/ ,5 0,46 1,5 0,02 EURO 5 - Type approval 1/ , new vehicles 1/ ,0 0,46 1,5 0,02 EURO 6 - Type approval 31/ , new vehicles 31/ ,4 0,13 1,5 0,01 15
16 ICT Logistics A/S Transportbuen 6 DK-7400 Herning CVR nr.:
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