Greening Supply Chains TPM Nate Springer, BSR Blair Chikasuye, HP Sarah Flagg, DAMCO Lee Kindberg, Maersk

Transcription

1 Greening Supply Chains TPM 2015 Nate Springer, BSR Blair Chikasuye, HP Sarah Flagg, DAMCO Lee Kindberg, Maersk

2 BSR (Business for Social Responsibility) A global nonprofit organization that works with its network of more than 250 member companies to build a just and sustainable world. BSR develops sustainable business strategies and solutions through consulting, research and cross-sector collaboration.

3 Clean Cargo Working Group A leading global carrier-shipper initiative dedicated to environmental performance improvement in marine container transport through measurement, evaluation and reporting

4 CCWG Our Mission Create practical tools for measuring, evaluating and reporting the environmental impacts of global goods transportation Help ocean freight carriers track and benchmark their performance and easily report to customers in a standard format Allow shipping customers to review and compare carriers environmental performance when reporting and making informed buying decisions

5 HP Global Logistics Environment Program Blair Chikasuye HP Global Logistics Environment Program 5 Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

6 HP s Greenhouse Gas Reduction Goals Every 60 Seconds HP ships 105 PCs 88 Printers 880 Ink/Toner Cartridges 7 Servers 20% 20% 40% 6 Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

7 HP Logistics Environmental Opportunities Cost Savings CO2 Reductions Network Enhancement and Optimization Programs Drive CO2 Reductions Weight/Distance/Mode of Transport CO2 Factor Environmental Criteria Utilize environmental factors in the LSP selection process Logistics CO2 Reduction Programs Increase the efficiency of our product transportation network Minimize size/weight of shipments Decrease distance products travel - consolidate shipments Shift toward environmentally friendly transport modes - Air to Ocean, Truck to Rail, etc. Influence our logistics services providers (LSPs) to decrease emissions Redesign product packaging to optimize product transportation Total Cost of Business 7 Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

8 Industry Leadership - Logistics Environment Associations Clean Cargo Working Group International Air Transport Assoc. Global Logistics Emissions Council Climate and Clean Air Coalition (UN) Green Freight Europe US EPA SmartWay Green Freight India ** China Green Freight Initiative Green Freight Asia Green Freight Latin America ** Trucking Air Freight Ocean Freight Industry Leadership GreenHouse Gas Protocol (World Resource Institute) 8 Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. ** In development

9 Damco Sustainable Logistics MIT-validated Carbon Methodology End-to-End Visibility Tools Strategy and KPI Development Logistics Efficiency Improvements 9 February 27, 2015

10 Carbon Impacts of Logistics Operations Network Optimisation Equipment Utilisation Transport Mode Carrier Selection Packaging CO 2 per Transport Mode (g/ton-km) Air 560 Truck 47 Barge 25 Rail 16 Ocean 6

11 Logistics Sustainability = Efficiency Improved Container Utilization Modal Shift: Air to Sea-Air As-Is 37% 12% 28% 23% To-Be Air Ocean 20 Dry 40 Dry 40 High 45 High 35% 30% 10% 25% Operational Impact: 15% reduction in container volume Cost Impact: 14% savings potential identified Carbon impact: 16% reduction in CO 2 Operational Impact: modal shift from 100% air to 50% air, 50% ocean Cost Impact: 50% savings potential identified Carbon impact: 69% reduction in CO 2

12 Sustainability - Maersk Line

13 Maersk Line is an enabler of global trade, connecting goods and services to people and economies around the globe Shipping affects the lives of billions of people, with 90% of the world s international trade travelling by sea With our global presence, we create local employment and stimulate business activity in more than 125 countries

14 It Starts With Transparency Container shipping is the most energy-efficient means to move high volumes of goods across long distances. However, in absolute terms, the environmental impacts of the industry are significant : Our environmental impacts, end 2013: 1. CO2 emissions: 27.7 million tonnes ,000 tonnes SOx emissions 702,000 tonnes NOx emissions ,000 tonnes of waste 4. Ballast water, risk of discharges or spills 5. Use of paint and chemicals

15 The CCWG methods strengthen our internal metrics Goal 2012 Result New Goal Reduce CO2 25% per TEU km by 2020 vs Goal achieved 8 years early 40% reduction by Result 40% reduction CO2 New Goal 60% reduction by 2020! CO2 is measured in grams per TEU-kilometer using the Clean Cargo Working Group Methodology, and independently verified by Lloyd s Register.

16 Big impact, big responsibility, big progress Since 2007, Maersk Line has managed to grow our business and at the same time reduce the impacts on the environment Decoupling growth from resource consumption Maersk Line reduced CO2 emissions by 8% per container during 2014 alone Since 2007, we have reduced CO2 emissions by 40% per container transported (g CO2/TEU km) Maersk Line s new goal is to reduce our CO2 emissions by 60% per container transported by 2020.

17 Comparing Routes for CO 2 Emissions Example: Central America to Atlanta Routing via Total Distance CO 2 per FFE Miami 2574 km 1.47 kg Savannah 2601 km 0.82 kg Difference 1% -44%

18 CCWG Thank You! Nate Springer BSR Advisory Services Blair Chikasuye HP Global Logistics Environment Program Sarah Flagg DAMCO Sustainable Logistics Lee Kindberg Maersk Line Environment and Sustainability 18

19 Annex 19

20 CCWG Our Resources CCWG Tools, Blogs, Reports Guide: How to Calculate and Manage CO2 Emissions from Ocean Transport Report: Global Maritime Trade Lane Emissions Factors 2014 Report: CCWG Progress Report 2013 Guide: How CCWG Shippers Use, Integrate, and Benefit from Ocean Transport Emissions Data Blog: How BSR s CCWG Helps Shippers Improve Environmental Performance *Changes in carrier representation or global trade conditions likely explain a portion of these results

21 CCWG 2015 Activities Continue delivering best practice sharing, tool development and cross-modal harmonization efforts that enhances shipper capacity for performance improvement leadership. Continue to drive market clarity and enhanced capacity for impact on our goals via the creation of one global maritime initiative with CSI.

22 CCWG Our Members Cargo Carriers Cargo Owners (Shippers) and LSP s

23 CCWG Our Accomplishments We provide reliable year-on-year emissions performance data from 23 of the world's leading ocean carriers that represent over 85% of global ocean container capacity 95% cargo transport buyers in CCWG use CCWG data and tools in procurement decisions and in supplier relationships with cargo carriers CCWG s annual emissions factors report indicates carriers have reduced CO2 emissions per TEU-km by nearly 8% from 2011 to 2012 and by over 22% since 2009* *Changes in carrier representation or global trade conditions likely explain a portion of these results

24 HP Global Logistics Environment Program GHG Reductions Decrease CO2 emissions by reducing the size/weight of our shipments, minimizing the distance travelled and converting to more environmental friendly modes of transport CO2 Footprint Partner with our Logistics Service Providers to calculate the CO2 emissions for the shipments they transport on behalf of HP. Industry Leadership Drive CO2 standards and methodologies by modes of transport on a global basis 20% Goal: Reduction in transport-related GHG emissions by 2020 using 2010 as a baseline (Tracking our product transportation GHG reductions on an annual basis) 1.6M FY13 Product Transport CO2 Footprint (in metric tones) 9 Worldwide number of Logistics enviornmental associations / initiatives HP is engaged (EPA SmartWay, Green Freight Asia, Green Freight Europe, Green Freight Latin America, Clean Cargo, International Air Transportation Association, Global Logistics Emissions Council, UN Climate & Clean Air Coalition, China Green Freight Initiative) Alternative fuels Awards / Communications Living Progress Convert shipments to more environmental friendly vehicles / fuel types (CNG / LNG, hybrid, dual fuel, etc.) >1.5K Global Movements converted since Jan 2014 (CNG/LNG, Dual Fuel, etc.) #1 External Awards and Accolades SmartWay Excellence Award winner 2014, 2012, and 2008 Green Freight Asia Green Supply Chain Award for st High Tech company to announce Product Transportation GHG reduction goal 1 st High Tech Company to maintain GHG Reduction Goals for all phases of our Value Chain 6/2/15 Living Annual report highlighting HP s commitment to global citizenship, including Product Transport programs and initiatives Progress Release Date Leadership Innovation Communication 24 Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

25 Green Label Programs Asia Pacific/EMEA Leverage US EPA SmartWay methodologies Different criteria for Shippers / Carriers Shippers: - Commitment, Data, Use in RFQs, Transparency in CO2 emissions / goals Carriers: - Commitment, Data, Vehicle technologies, Transparency in CO2 emissions / goals Leaf 1 for both Green Freight Asia* / Green Freight Europe * HP on Board of Directors Commitment Visibility Improvement Validation/Enforcement 25 Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

26 HP s New Logistics Gateways Trans-Eurasian Rail -Chongqing, China to Western Europe Port of Piraeus (Greece) -Asia to Europe, Middle East and Africa Panama Canal -Expansion program completed by end of 2015 Benefits: Simplify Global Network Improve End to End Transit Times Reduce Inventory Costs Decrease CO2 emissions 26 Mode Conversion Decrease Distance Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

27 Better energy efficiency cuts CO2 and makes great business sense. We optimise our network and vessels operation Our new vessels such as Triple- E set new standards on energy efficiency Our existing fleet is being retrofitted with new technologies We partner with charter owners to improve energy efficiency including vessel retrofits We are involved in the development of potential alternative energy for shipping

28 FEASIBILITY INDEX Opportunities for supply chain impact reduction: Energy Efficient Buildings (<5%) Reverse Logistics (9%) Modal Switches (12%) Packaging Reduction (14%) Low Carbon Sourcing & Manufacturing (16%) Near Shoring (?%) Clean Vehicle Technologies (18%) De-speeding the Supply Chain (18%) Optimized Networks (13%) ABATEMENT POTENTIAL Source: World Economic Forum Supply Chain Decarbonization the Role of Logistics and Transport in Reducing Supply Chain Carbon Emissions 28

29 Transportation Emissions can be reduced. Part of supply chain Driver of emissions Ways to reduce emissions (examples) Ocean transportation Air transportation Port moves Domestic distribution Warehousing Volume moved km covered kg moved km covered Number of containers Transportation mode (truck vs. rail) km covered Volume moved Number of days in warehouse Number of CBM Higher container utilisation Use of more eco-friendly carriers Air to Sea-Air conversion Higher container utilisation 20 to 40 conversion CFS-CY conversion Higher utilisation of delivery trucks/vans Double-decker trailers Increased use of rail Use of bio-fuel Reduce safety stock DC bypassing

30 What we ve learned about supply chain calculations: 1. Consistent calculator 2. Celebrate successes 3. See the big picture 4. Focus on improvements 5. Opportunity: work together