TURNKEY GROUP. Applying the benefits of Electronic Measurement Systems as an environment friendly approach to Brand Enhancement and Savings

Transcription

1 TURNKEY GROUP Applying the benefits of Electronic Measurement Systems as an environment friendly approach to Brand Enhancement and Savings

2 AGENDA Green Forum Agenda: Environmental Reporting in the Asia based Supply Chain Pressure for Supply Chain reporting: B-to-B clients Local and International Regulation and Incentives Direct customer requests Challenges for Supply Chain Reporting Incorporation of Environment as a business process Marketing tool Cost Saving E-commerce Efficiencies Environmental Benefits

3 Environmental Reporting Pressure Points Green Supply Chain B-to-B clients Report and inform Local and international Regulators Customers in country of origin and abroad

4 Western and regional clients Have you measured your corporate greenhouse gas emissions? B-to-B clients Have you set publicly available solid waste reduction targets? If yes, what are those targets? Have you established sustainability purchasing guidelines EcoRanking Suppliers for your direct suppliers and stakeholders? Have you obtained 3rd party certifications for your sustainability programs?

5 Pressures from Global Clients Global Players

6 Pressures from Global Players Global Clients

7 Pressures from Overseas Clients B-to-B clients Global Reporting Initiative (GRI) Provides with a sustainability reporting framework The Reporting Framework includes guidelines per sector four key areas of sustainability : - economic, environmental, social and governance performance. Carbon Disclosure Project (CDP) provides a system to measure, disclose, manage and share environmental information of greenhouse gas emissions, climate change risk and water strategies by business and cities CDP Supply Chain helps supplier companies gather insight into their greenhouse gas emissions and climate change strategy Benchmark against their peer group and showcase successes

8 Client pressure B-to-B clients

9 Pressure on Publishing Environmental Data CONTACTS MS 2.0? B-to-B clients Marketing Multinationals asking their suppliers for Environmental data: Accenture Acer Inc Danone Dell EMC Corporation Ford Motor Company Google Hewlett-Packard IBM Johnson & Johnson L Oreal Nestle PepsiCo Royal Philips Electronics

10 LEADING REGIONS FOR ENVIRONMENTAL ISO CERTIFICATIONS ISO Certifications Japan China Spain Italy USA Korea Germany UK Sweden France Canada Brazil Australia Switzerland Taiwan India 224,981 Certifications Globally Very limited tools and metrics to support the process

11 TRIPLE BOTTOM LINE B-to-B clients

12 Regulators Regulators Regulation Taxes Tax exemptions Tradable permits Fees Bilateral agreements with government Sector agreements Green purchasing Programs Transport

13 Regulators Europe Regulators European Emission Trading Scheme EU Planning All flights (cargo & passengers) flying into the EU are part of EU ETS Airlines pay for emission in 2013 over Emission allowances for airlines based on previous years and reduce in the upcoming years. 85% of emissions still free in 2012 EU ETS Issues China s has restricted its airlines to pay and include taxes in its fares Trade war: reduced number of airbus orders from China EU prohibition act in the US 26 countries in the Coalition of the unwilling opposing tax Concerns from growing airlines in India, China, South America.

14 Regulators (China) Regulators China s 12 th 5 years-plan New energy & Carbon reduction has priority reduce GHG emissions 40-45% by 2020 from with 2005 levels Enforcing low-carbon regulations from encouraged to mandatory Increase the share of renewable to 15% of total mix Promoting green consumption Introducing new reduction targets for carbon dioxide, ammonia nitrogen and nitrogen oxide

15 Regulators (India) Regulators India s 12 th five-year plan on Energy & Environment Increased energy efficiency Standards and Labelling of Equipment & Appliances Efficiency in Buildings (Energy Conservation Building Code (ECBC)) Development in technology for Carbon Capture and Storage (CCS) Increase the share of new renewable energy of 15% by 2020 Management of waste water discharge from industrial and commercial establishments into major water bodies

16 Regulators (India) Regulators

17 Environmental Reporting Pressure Points Regulators Global / Regional clients Incentives Upcoming regulation Ahead of the game Direct customers Green supply chain Product carbon foot print Customer pressure Increased competition Attention product origin Scandals Environmental Reporting GRI & CDP EMS software Support from ISO standards

18 The need for green strategy in the Supply Chain THE NEED FOR GREEN STRATEGY IN THE SUPPLY CHAIN External factors now affect the Logistics and supply chain process

19 Top 10 Environmental Strategies for Leading 3PLs and Logistics Providers(Top 50 by Revenue) TOP 10 ENVIRONMENTAL STRATEGIES FOR LEADING 3PLS (TOP 20 BY REVENUE)

20 Factors Top 10 Environmental for an Environmental Strategies for Programme Leading 3PLs (Top 50 by Revenue) FACTORS FOR AN ENVIRONMENTAL PROGRAMME TO 3PLS Determining factor in a bid Brand Image Potential to Increase business Client Pressure Retention and Differentiation Part of Culture Productivity and cost savings Source: Northwestern University Top 35 Sustainability Report

21 Measurement challenges Challenges measurement of Environmental impact No baseline calculation Manual processes Country/region specific does not fit into system Control 50+ suppliers in China, India and Bangladesh Search for standards (industry or international) Evolving requirements and needs make it difficult to compare previous years. Integrated approach, rather then one environmental manager IT/system integration/e-commerce Regulation / Accountants asking for printed documents Factory auditors by external parties Integration with sales and bidding processes Integration with accounting

22 Operational Alignment - The need to Maximize Productivity OPERATIONAL ALIGNMENT THE NEED TO MAXIMIZE PRODUCTIVITY

23 Savings through improved business capabilities SAVINGS THROUGH IMPROVED BUSINESS CAPABILITIES % of Global Container Trade Yr 2000 Yr 01 Yr 02 Yr 03 Yr 04 Yr 05 Yr 06 Yr 07 Yr 08 Yr 09 Yr 2010 Source: US Forestry commission

24 Roadmap for improved Efficiencies ROADMAP FOR IMPROVED EFFICIENCIES Electronic Airway Bills Electronic Shipping Instructions Exception Reporting Electronic Invoicing Presentation and Payment Customs Manifest Tender and RFQ Management Ocean Schedules Savings 900 Million Sheets of paper saved per year 20 minute per B/L improvement in processing 1.7bn dollars saved in erasing duplication, errors, rekeying, checking. One invoice consumes 3 pieces of paper Millions of trees can be saved including the production and waste of this paper when introducing E-invoicing Managing ocean shipment initiation electronically saves $5 billion a year by //estimation by Inttra

25 TurnGreen Software Tools Competitors - All located in the West - Fixed Costs - Fixed system, rigid in customisation - Office-based calculations whilst main emissions are due to factories, warehouses and transport. TurnGreen 2.0MS 2.0 Turngreen Solutions ltd. - Developed and Tested in Asia - Low initial costs, scalable solution - Quick customisation for local use - Flexible calculations for Logistics, Factories and Distribution centres

26 Environmental Software Tools EMS Software Capabilities

27 Reporting TURNGREEN PRODUCT FEATURES Set targets for Cost Reduction Download graphs in different formats for weekly updates or yearly sustainability reporting

28 Reporting: TURNGREEN Company PRODUCT Specific FEATURES Dashboard Software Dashboards that fit your targets and KPI s

29 EMS Emmission Tools for Logistics Reporting Industry Pressure Emission savings in Yield Planning

30 The need for green strategy in the Supply Chain THE NEED FOR GREEN STRATEGY IN THE SUPPLY CHAIN

31 Why Metrics are now Essential THE FUTURE THE NEW COMPETITIVE ROADMAP IN LOGISTICS ConclusionompetitivRoadmap in Logistics Sustainability becomes tool for both cost saving and differentiation Sustinability market is fast growing Current Worth estimated at 5 Trillion USD (Julia King, Government Advisor to UK Govt on Climate Change) Focus on long term sustainability goals and improvements Tax, Carbon trading and other legislation on the rise Requires Monitoring Environmental measures becomes compliant issue, requires monitoring, accuracy and verification Companies only work with those who meet their Environmental Strategy Competition increases through improved sustainability practices Greater potential to lose traditionally loyal clients through sustainable insensitivity. Transparency is becoming essential as CFO and Financial departments adopt sustainability reporting as a standard.

32 TURNKEY GROUP CONTACTS For more information on the services of Turnkey Group, please contact us: Turnkey Group Limited Room 1907, 19/F Prosperity Centre 25 Chong Yip Street, Kwun Tong Kowloon, Hong Kong Phone: Website: