Heineken, Maersk Line & Clean Cargo Working Group. January 24, 2013
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1 Heineken, Maersk Line & Clean Cargo Working Group January 24, 2013
2 Today s Speakers Angie Farrag Manager Clean Cargo, BSR Willem Jan Beerthuis Global Category Buyer Logistics Heineken NV Mads Stensen Environmental Manager Maersk Line 2
3 Agenda 1. BSR and Clean Cargo Working Group Angie Farrag, BSR 1. Shipper s Perspective: How Heineken responds to B2C consumer pressures on CO2 reduction through Clean Cargo Willem Jan Beerthuis, Heineken 2. Carrier s Perspective: How Maersk Line improves its performance through Clean Cargo Mads Stensen, Maersk Line 3. Open Discussion / Q&A: Ask Willem and Mads how Clean Cargo may help you achieve your supply chain goals 4. Joining Clean Cargo 3
4 About BSR and Clean Cargo
5 BSR s Mission and Strategy Our mission: We work with business to create a just and sustainable world. Our strategy: We develop sustainable business strategies and solutions through consulting, research, and cross-sector collaboration with our global network of approximately 300 member companies. Alcatel-Lucent A.P Moller-Maersk Group Aramex AREVA Group Best Buy Bloomberg L.P. Boeing Cisco Systems Coca-Cola DONG Energy Duke Energy Electrolux Ford Motor Company GE Hitachi Hyatt Hotels IBM IKEA Kraft Foods Levis Strauss McDonald s Microsoft Nike Novo Nordisk A/S OIA Global Panasonic Pfizer Rio Tinto Royal Dutch Shell SAP Sodexo Group Toshiba Unilever United Airlines UPS Yahoo! Walmart Stores 5
6 BSR Transport & Logistics Practice Mission: BSR works with companies and stakeholders across the T&L supply chain to address sustainability expectations and integrate ethical, social, and environmental practices into the global logistics value chain Factory Rail/ Truck Warehouse Truck Port Air/ Ocean Port Rail/ Truck Warehouse Truck Point of sale Scope of work: Graphic credit: DAMCO Strategy and reporting helping T&L companies to integrate sustainability into their long term business model Collectively enabling supply chain measurement, evaluation and reporting for such companies and their customers - CCWG Collectively addressing systemic challenges facing the industry and helping them manage internal and external risks MACN Sustainable local benefits working on how T&L infrastructure nodes can imbed sustainability criteria into the lifecycle of projects to ensure maximum sustainable local benefits 6
7 Shippers are Already Setting Public Goals to Reduce Total Footprint Emissions - By 2020 CO 2 emissions from our global logistics network will be at or below 2010 levels despite significantly higher volumes. 7
8 Shippers are Challenged to Measure Total Logistics Footprint Make Strategic Logistic Choices to Reduce Impacts Map logistics flows from supplier to consumer Define Methodology for calculating footprint In order to understand where reductions within the logistics network can be made, it is necessary to understand the impacts across the value chain Essential factors for measurement include: standardized widely accepted methodologies comparable basis of reporting across modes good input data effective output information Assess Performance Collect Data The work of Clean Cargo is shaped by continually addressing these factors within the maritime segment and across the intermodal chain 8
9 Customer Expectations of Business Partner Sustainability Performance Are Rapidly Evolving Today Tomorrow Sustainability serves as a qualifier or as extra credit when all else is equal Specific standards and indices for sustainability are under development Environment, and carbon in particular, is the primary focus for most Increased weight of sustainability factors in procurement decisions Dramatically increased transparency, down to product-level and container-specific impacts Expanded focus to full range of environmental impacts, i.e., Sox & NOx, waste, water, ship building/ breaking/recycling, etc. Other key areas such as ethics, health & safety, and security are taken for granted as baseline requirements Primary focus on direct impact of carrier operations Human rights and labor issues will become more important for some Expanded focus to full supply chain impacts, i.e., chartered vessels, ports, trucking companies, etc 9
10 Clean Cargo Enables Companies to Address the Challenge
11 Clean Cargo Global Membership Clean Cargo (CCWG) Carriers NVOCCs A global B2B initiative made up of leading cargo carriers and their customers (33 companies), dedicated to environmental performance improvement in marine container transport through measurement, evaluation, and reporting. Goals: Shippers 1. Enable ocean freight carriers to track and benchmark their performance and easily report to customers in a standard format; 2. Enable cargo owners (shippers) review and compare carriers environmental performance when reporting and making informed buying decisions; 3. Drive collaborative effort to raise the bar on environmental performance of the maritime industry 4. Improve alignment & standardization 11
12 Clean Cargo Annual Data Collection Process 1. Clean Cargo Carrier Environmental Performance Metrics (EPM): Standardized set of metrics for assessing ocean carriers environmental performance vessel by vessel incl. CO2 using an industry std. methodology Verification of carrier information Shippers receive individual Carrier Scorecards 2. Carrier Environmental Performance Survey (EPS): Gathers qualitative information on carriers environmental management and performance annually Regular review of alignment with standard shipper questionnaires Shippers receive carrier specific EPS A Verified Process: Verification protocol drafted in 2010 with Lloyds Register and others, in collaboration with all members to define scope and depth Assessing Key Areas of Performance: CO 2, SOx and NOx Waste management, water effluents, chemical use EMS, transparency 12
13 Annual Aggregated Industry Performance Data CCWG gathered CO2, SOX, NOx emissions data from 10+ carriers for 7 years reflecting one of the largest environmental data sets in the shipping industry Aggregated environmental performance data is released to membership annually, highlighting industry-wide performance: % % Circle = intra-regional emissions factor % % % % % % % % % % % % % % % Data can be used to benchmark individual carriers against industry performance % % % % % 17 of 25 trade lanes dry performance improved vs Between 1%-17% Carriers represent over 60% of global ocean container capacity Clean Cargo gathers environmental data for over 2,000 container vessels 13
14 Clean Cargo Improves Transparency and Availability of Information for the Industry Clean Cargo has released reports for the past 3 years on industry-leading aggregate emissions factors by trade lane, in the interest of public disclosure and to share credible industry wide data for stakeholders to use and analyze: Beyond the Factory Gates CCWG_Report_Mar_2011_ FINAL.pdf 2012 Trade Lane Emissions Brief BSR_CCWG_TradeLaneE missionsfactorsreport.pdf CO2 emissions rates among Clean Cargo carriers showed an average 6.1% decrease from 2010 to 2011 and an average 7.1% decrease from 2009 to
15 Clean Cargo Collaborates to Enable Better Industry Standardization and Alignment CCWG CO2 methodology is the ocean container segment standard influencing entire maritime segment & other modes CCWG tools and methods are informed by: WRI GHG Protocol Global Reporting Initiative (GRI) World Economic Forum (WEF) International Maritime Organization (IMO) World Shipping Council (WSC) U.S. EPA SmartWay Clean Shipping Project WPCI Environmental Ship Index (ESI) CCWG discusses alignment of intermodal tools with: World Economic Forum (WEF) EcoTransIT, NTM Software providers U.S. EPA SmartWay Green Freight Europe COFRET CCWG is advisory panel to: COFRET European Commission ICCT World Shipping Efficiency project 15
16 Heineken s Perspective Willem Jan Beerthuis
17 HEINEKEN is Unique 70,000 EMPLOYEES 214 MIL HL 1,43 BILLION 17,1 BILLION TEU >140 BREWERIES IN 71 COUNTRIES 17
18 A CHANGING WORLD! 18
19 WITH CARBON LABELLING ON THE RISE 19
20 CLEAN CARGO PROVIDES RESULTS 1. Understand own footprint 2. CO2 on lane level 3. Steer on CO2 emissions 4. Decision driver 20
21 Maersk Line s Perspective - Mads Stensen
22 Maersk Line is an integral part of global trade: World largest container shipping company with 600+ vessels Moves goods around the world in millions of containers Present in more than 125 countries & have 25,000 employees
23
24 Maersk Line s ambitions We want to be the shipping line with the best environmental performance We want to compete on environmental performance We want to help our customers reduce their environmental impacts
25 How does Clean Cargo Working Group benefit Maersk Line? & A sustainability leadership initiative that aligns with Maersk Lines sustainability ambitions A platform for dialogue and alignment of objectives btw container lines and customers, which enable us to meet customer requirements and needs Develops and establishes industry standards for container shipping e.g. the development of ONE standard methodology for CO2 enables: Credible and comparable CO2 calculations Internal benchmarking for container lines Informed decision making for our customers Integration of sustainability into the supplier selection process Clean Cargo Working Group takes proactive part of harmonising CO2 methodologies across the supply chain (across modes). This will make it possible to compare CO2 performance across the supply chain
26 Open Discussion / Q&A
27 CCWG Membership 2013 Membership and Costs Open to all shippers (cargo owners), carriers (vessel owners) and NVOCC s (non vessel owning ocean cargo carriers e.g. 3pl s) BSR Members: $5,900 BSR non-members: $8,800 Governance Steering Committee made up of 4 companies voted in every 3 years BSR facilitates the working group with dedicated staff across the world Data protection and exchange of information governed by anti-trust policy and operating principles Benefits Immediate access to CCWG tools and shared resources that enable companies to measure impacts for reporting and procurement decision making Twice annual full group meetings, regional convenings and regular team calls focused on group objectives, to engage with peers and influence continuous improvements Access speaking opportunities and discounted entry to global industry conferences to learn more and drive leadership 27
28 Thank You! For more information or to join Clean Cargo contact: Angie Farrag Lead, BSR Transport & Logistics Practice Project Manager, Clean Cargo Visit the Clean Cargo website:
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