SUSTAINABLE TRANSPORTATION USFIA BRIEFING, SAN FRANCISCO LEE KINDBERG FEBRUARY 2017

Transcription

1 SUSTAINABLE TRANSPORTATION USFIA BRIEFING, SAN FRANCISCO LEE KINDBERG FEBRUARY 2017

2 A.P. MOLLER - MAERSK OVERVIEW 2016 TRANSPORT & LOGISTICS The Transport & Logistics division consists of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for our customers to trade globally. Diversity & inclusion Personal safety Enabling trade CO 2 emissions Ship recycling Anti-corruption Disaster response Revenue USD 35.5bn Result USD -1.9bn Personal safety - injuries and fatalities Process safety - major accident / oil spill / chemical spill Underlying Result USD 0.7bn SO x emissions Security services Employees 87,736 ENERGY The Energy division consists of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers. Our Energy businesses support and provide global oil and gas production as well as o shore marine services. Ballast water Examples of selected material issues and where they can occur across our businesses can be seen on the diagram.

3 Maersk Line Sustainability Roadmap 2020: Aligning commercial objectives and societal goals for shared value What the company does What customers & investors want What the world needs A systems approach to sustainability will center its thrust and engagement with stakeholders around the areas where societal and customer interests align the most with the company s core business objectives

4 Top Mega-trends with significance for Maersk Line GLOBAL POPULATION GROWTH HYPER-TRANSPARENCY ACCESS OVER OWNERSHIP THE END OF WASTE INVESTOR SCRUTINY 1.2 billion over the next 15 years. Up to 2050, half of the world s population growth will live in 9 countries (India, Nigeria, Pakistan, DRC, Ethiopia, Tanzania, the U.S., Indonesia and Uganda). The rapid increase in access to information and shifts in stakeholder expectations, is creating significant pressure for business transparency. The sharing economy could be worth $335bn annually by Each year around 80% of the $3.2 trillion worth of materials used in consumer goods are not recovered. The total worth of assets managed according to the UN Responsible Investment Principles is currently estimated at $45 trillion. 4

5 Managing risks and responsibility Anti-corruption Lifting supply chain sustainability Workplace Standards Community investments and disaster relief Health and Safety

6 PERFORMANCE HIGHLIGHTS 2016 Relative CO 2 reduction for A.P. Moller Maersk, 2010 baseline Employee engagement score (% positive) Representation of women in leadership (Board of Directors) Safety Fatalities 25% 76% 25% % Executives 13% Lost-time injury frequency (LTIf) -21% -23% -25% % 73% Senior Leaders Leaders Senior Managers 10% 18% 24% Total tax charge (mil USD) Hydrocarbon spills above 10m 3 Reduction in facilitation payments vessel-operating buinesses, 2015 baseline 1, % (USD million) ML 87% Result before tax 5,311 1, MT 43% Total tax charge 2, ,054 Tax as a percentage of profit before tax 56% 36% n/a MSS Damco 45% 82%

7 KEY PARTNERSHIPS CLEAN CARGO WORKING GROUP UN GLOBAL COMPAT LEAD SUSTAINABLE SHIPPING INITIATIVE CONTAINER SHIP SAFETY FORUM MARITIME ANTI- CORRUPTION NETWORK LOGISTICS EMERGENCY TEAMS UN HIGH LEVEL ADVISORY GROUP ON SUSTAINABLE TRANSPORT UNITED FOR WILDLIFE ASSOCIATION

8 Vessels are increasingly fuel efficient. This reduces fuel use, CO 2 and other air emissions in our customers supply chains. Ø New vessels Ø Eco-Retrofitting vessels Ø Network design Ø Smart steaming verified by: 2016 results: 42% less CO 2 per container per km vs goal: Reduce CO2 by 60% vs. 2007

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10 Energy efficiency is critical in supply chain transportation choices. Transport 1 pair of shoes from China to North Europe China 1800 g CO g CO 2 18x more North Europe 0 Km 20 Km Shipping emits <2% of the world s CO 2 emissions while transporting 90% of the worlds goods 10

11 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

12 Standard methods are available to report the environmental impacts of ocean shipping. The best-accepted are from the Clean Cargo Working Group. >85% of the global container capacity in 2015 membership Ø Annual Data Collection since 2005 Ø Standardized CO 2 methodologies Ø Verification protocol. 12

13 The Clean Cargo Working Group Progress Reports and How-To Guide provides resources for integrating sustainability into procurement processes. Calculate_Manage_Emissions_2015.pdf 13

14 Comparing routes for CO 2 emissions Example: Central America to Atlanta, Georgia Routing via Total Distance CO 2 per FFE Miami 2574 km 1.47 kg Savannah 2601 km 0.82 kg Difference 1% -44% 14

15 Sustainability is the right thing to do and also makes good business sense. 15 For more information contact Lee Kindberg