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Green Guide 2012

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Green Guide 2012


GREEN GUIDE

Three years ago, “Supply Chain Today” got together with CILTSA (Chartered Institute of Transport & Logistics SA) and the CGCSA (Consumer Goods Council of SA) to validate and recognise all those companies and individuals who have made an effort, big and small, to green their supply chain. In August 2009, the Green Supply Chain Awards were first held at the CGCSA offices in Hurlingham, Johannesburg followed by an equally successful cocktail party in 2010 and 2011 respectively. On pages 20 to 26 we recap the winners of 2011 and those of the previous years. As the only Awards dedicated to the green supply chain, this event has grown in stature and recognition and this year, we will be holding a mini-conference, followed by a silver service lunch on 21 August 2012 at the Sandton Sun Hotel. All three partners are committed to green buildings, cleaner transport, limited packaging, reducing waste, recycling and many of the other initiatives that drive an environmentally-friendly and efficient supply chain. The Green Supply Chain committee would like to thank all entrants and sponsors but particularly Scania, which has been our main sponsor from the get-go, as well as Barloworld Logistics and Trenstar. “Supply Chain Today” has compiled this “Green Guide” so that all players in the logistics and supply chain industry can remain up-to-date on green matters as it concerns our industry. Going Green is no longer a choice – it’s a business imperative! Warmest Regards Susan Custers Publisher

Also publishers of:

Contents Legislation 4

Negotiating the legislative environment

COP 17 8

Implications for the transport sector

Buildings

12 Tips for green warehousing

Reporting

15 An integrated report

Farming Practices

16 Fresh from the sea

Carbon Footprint 19 Logistics can reduce its carbon footprint Green Supply Chain Awards 20 A Green New World

Logistics Service Providers 27 Challenges for logistics

Corporates

29 A trillion dollor global sustainable economy

Fuel Alternatives

30 The case for bio-diesel

Surveys

32 Legislation, the driver 35 Perceptions on sustainibility 37 7th State of Logistics

“Supply Chain Today” is the only publication in southern Africa covering the entire supply chain. Published by Promech Publishing, it has the largest circulation of its kind and is endorsed by the who’s who of the industry. The monthly publication is supported by an invaluable annual buyers guide. Each issue is on our website in full as is the Buyers Guide. “Supply Chain Today” has also formed a partnership with CILTSA and the CGCSA to bring the first-ever, exclusive and dedicated Green Supply Chain Awards to those implementing green policies in their supply chain. Contact: Lelanie Diamond supplychain@promech.co.za, Tel: (011) 781-1401

Promech has a 168.75% BBE rating

Copyright

All rights reserved. No editorial matter published in the Green Guide may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure accurate reproduction, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Proprietor and Publisher PROMECH PUBLISHING Tel: (011) 781-1401 Fax: (011) 781-1403 E-mail: supplychain@promech.co.za Website: www.promech.co.za Managing Editor: Susan Custers Business Manager: Louise Taylor Advertising Sales:Lelanie Diamond

Production Manager: Zinobia Docrat DTP: Donovan Vadivalu Administration/Circulation Manager: Catherine Macdiva Printed by: Typo Colour Printing, Tel: (011) 402-3468 FSC (Forestry Stewardship Accreditation)

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LEGISLATION

Negotiating the Legislative Environment

“There are a number of pieces of legislation that have come into effect in South Africa in recent years that could potentially impact on the logistics, transport and other supply chain related companies,” says sustainability legal specialists Imbewu senior associate, Alistair Young. However, these APPA regulations are rarely seen to be enforced,” he admits.

Clean fuel

Similarly, NEM:AQA provides, in section 26, that the Minister may declare a substance or mixture of substances which, when used as a fuel in a combustion process, results in atmospheric emissions which, present a threat to health or the environment, to be a controlled fuel. “Other than this, the NEM:AQA does not give any specific definition of the concept of a ‘controlled fuel,’ however, it is believed that fuel used in vehicles could, in future, fall within the ambit of such concept,” he says.

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he National Environmental Management: Air Quality Act 39 of 2004 (NEM:AQA) provides, in section 23, that the Minister may declare any appliance or activity, or any appliance or activity falling within a specified category, as a controlled emitter if such appliance or activity results in atmospheric emissions which could present a threat to health or the environment. “Besides this, the NEM:AQA does not give any specific definition of the concept of a “controlled emitter, however, it is believed that vehicle emissions may, in future, fall within the ambit of such concept, says Alistair. “At this point in time no such declaration has been made, but when it is, the Minister will also have to introduce standards to regulate the permissible amount, volume, emission rate or concentration of any specified substance or mixture of substances that may be emitted from a controlled emitter. “Until such time that a declaration is made and standards are introduced, the regulations introduced under the Atmospheric Pollution Prevention Act 45 of 1965 (APPA) regarding diesel emissions from vehicles would appear to remain effective in the municipal areas in which they were made applicable; until they are specifically repealed.

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Alistair explains that when the Minister makes such a declaration, he or she will also have to introduce standards for the use of the controlled fuel in combustion processes, including standards for inter alia the manufacture or sale of the controlled fuel, establish specifications, including maximum or minimum levels or concentrations of the constituents of substances or mixtures of substances, for the composition of controlled fuels, prohibit the manufacture, sale or use of the controlled fuel and differentiate between different geographical areas.

Carbon tax

Local auditing firm Deloitte released the following report on carbon tax, based on its mention in the local 2012 budget speech. It is proposed that a carbon tax will be implemented in 2013/2014 at a rate of R120 per ton of carbon dioxide equivalent (CO2e) on direct emissions. This is in line with the Climate Change Response White Paper approved by Cabinet in 2011. The proposed carbon tax will have the following design features: • Percentage-based rather than absolute emissions thresholds, below which a carbon tax will not be payable; • A higher tax-free threshold for process emissions; additional relief for trade-exposed sectors; • The use of offsets by companies to reduce their carbon tax liability; • A phased implementation;


LEGISLATION

• The tax will increase by 10% per annum until 2020; • The revenues received from the tax will not be earmarked for climate change initiatives; and • The CO2e emissions will be calculated using agreed methods. A basic tax-free threshold of 60% will apply during the first period of the tax (2013-2019). Further relief for trade exposed industries and process emissions will be allowed. Companies will be encouraged to reduce the carbon intensity of their products. A comparison based on industry emissions will be used to either reduce or increase the tax-free threshold. Companies whose carbon intensity of products is higher than the industry standard will be penalised by reducing the 60% threshold. Likewise, companies whose carbon intensity of products is lower than the industry standard will receive a higher tax-free threshold, capped at 90%. A carbon tax at a rate of R120 per ton CO2e is seen as modest per the budget documents. It is hoped that a carbon tax will place a price on emissions, and will be incorporated into production cost and consumer prices. The tax seemingly will be passed on to consumers. A draft policy paper on carbon tax for public comment will be released later in the year. However, given the amount detail of the proposed carbon tax in the budget documents, it seems that decisions on the tax and the manner in which the tax will be levied have already been determined, reports Deloitte.

Green building requirements

The definition of a building in the National Building Regulations and Building Standards Act 103 of 1977 includes any structure, whether of a temporary or permanent nature and irrespective of the materials used in the erection thereof and

which building is erected or used for or in connection with inter alia the manufacture, processing, storage, display or sale of any goods or the rendering of any service. “Accordingly the definition of a building is fairly broad,” says Alistair. “Recent amendments and additions to regulations promulgated under the Act came into effect in mid-November 2011. Part X of the regulations was introduced in order to reduce greenhouse gas emissions. As such, certain requirements will now have to be taken into account during the design and construction phase of new buildings as well as extensions to existing buildings that require the submission of plans. “Such considerations will, subject to certain exceptions, have to ensure that new buildings or extensions to existing buildings are capable of using energy efficiently while fulfilling user needs in relation to vertical transport, if any, thermal comfort, lighting and hot water or have a building envelope and services which facilitate the efficient use of energy appropriate to their function and use, internal environment and geographical location,” he explains. Further, at least 50% (volume fraction) of the annual average hot water heating requirement shall be provided by means other than electrical resistance heating including, but not limited to, solar heating, heat pumps, heat recovery from other systems or processes and renewable combustible fuel. “In addition, the South African Bureau of Standards has published SANS 23045: 2009, which is a guideline to assess energy efficiency of new buildings. This code has not yet been incorporated into any new legislation and currently only serves as a guideline,” he reveals.

Waste management

The primary piece of legislation governing waste management in South Africa is the National Environmental Management; Waste Act 58 of 2009 (NEM:WA) which, apart from the provisions dealing with contaminated land, came into effect on 3 July 2009. “For the most part, the NEM:WA currently remains as framework legislation with few regulations having been promulgated to effectively enforce the content thereof. However, it does provide for a number of general compliance provisions including section 16. This states that a holder of waste must, within their power, take all reasonable measures to avoid the generation of waste and where such generation cannot be avoided: Green Guide 2012

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LEGISLATION

• to minimise the toxicity and amounts of waste that are generated;

the municipality for that purpose and in a location approved or authorised by the municipality.

• reduce, reuse, recycle and recover waste;

A final general requirement is contained in section 26 of NEM:WA which provides that no person may dispose of waste, or knowingly or negligently cause or permit waste to be disposed of, in or on any land, waterbody or at any facility unless the disposal of that waste is authorised by law, or dispose of waste in a manner that is likely to cause pollution of the environment or harm to health and well-being.

• where waste must be disposed of, ensure that the waste is treated and disposed of in an environmentally sound manner; • manage the waste in such a manner that it does not endanger health or the environment or cause a nuisance through noise, odour or visual impacts; • prevent any employee or any person under his or her supervision from contravening the NEM:WA; and • prevent the waste from being used for an unauthorised purpose. “Also, any person who sells a product that may be used by the public and that is likely to result in the generation of hazardous waste must take reasonable steps to inform the public of the impact of that waste on health and the environment,” says Alistair.

Waste

A further general compliance provision is set out in section 21 of NEM:WA. It states that any person who stores waste must, subject to certain exceptions, at least take steps to ensure that: • the containers in which any waste is stored, are intact and not corroded or in any other way rendered unfit for the safe storage of waste; • adequate measures are taken to prevent accidental spillage or leaking; • the waste cannot be blown away; • nuisances such as odour, visual impacts and breeding of vectors do not arise; and • pollution of the environment and harm to health are prevented. Additional general requirements are set out in section 22 of NEM:WA which states that any person who generates general waste that is collected by a municipality must place the waste in a container approved, designated or provided by

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Compliance strategies

“In order to comply with existing and new legislation, companies first need to assess the applicability of such legislation to their day-to-day activities, as well as any new activities that might be undertaken. Once the applicability of legislation has been established then companies need to take steps to comply therewith. If companies are unable to determine the applicability of legislation to existing and new activities or determine what steps must be taken to comply with applicable legislation then further legal advice should be sought,” advises Alistair.

Training

Although environmental legislative requirements may seem daunting, help is at hand. “Imbewu provides various environmental legal training courses throughout the year which focus on both specific environmental legislation as well as more general topics such as Environmental Law 101. In addition, the firm can custom-design training courses based on a client’s specific needs and requirements,” he concludes. Imbewu collaborates with the law firm Warburton Attorneys to provide specialist environmental litigation and other legal services, including commercial services and providing attorney client privilege, where appropriate. Imbewu Sustainability Legal Specialists Tel: (011) 214-0660, (011) 214-0661 Email: admin@imbewu.co.za www.imbewu.co.za


PROMOTION

On Every Bag

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n yet another pioneering step, AfriSam has developed a relative CO 2 footprint system which calculates the CO 2 associated with the production of every kg of cement of each

Emission calculations and summations are based on a “cradle to gate” approach

AfriSam has announced the introduction of a carbon footprint (CO 2) rating stamp which will appear on every bag of cement that it sells.

main AfriSam cement type from its various production facilities. This initiative is based on the Cement CO 2 Protocol which is closely aligned to the overarching Greenhouse Gas Protocol developed under a joint venture between the World Resources Institute and the World Business Council for Sustainable Development. Currently, the world average emission of CO 2 per kg of cement is 890g as per Cembureau.

All inclusive model

The model, developed by AfriSam, not only takes specific types of direct and indirect emissions into account, but also weighs up the effects of interplant transportation. Emission calculations and summations are based on a “cradle to gate” approach, where the “gate” is the factory gate. In the cement manufacturing process, about 60% of the emitted CO 2 is from the process (the de-carbonation of limestone) and 40% from fuels. Interplant transportation emissions come into play where cement is processed at more than one facility. “Although cement remains one of the top three commodities consumed in the world, we are well aware of the impact cement production has on the environment. We have made the reduction of carbon emissions a priority for AfriSam for more than a decade and will continue to strive to improve our efficiencies and lower our emissions by 2% every year,” says Stephan Olivier, Chief Operating Officer; AfriSam Cement Operations.

Cement CO 2 value

The actual value of CO2 associated with manufacturing and transporting each individual product is printed on all AfriSam cement bags, and is clearly visible to the end user. The bag carries a CO 2 barometer insignia indicating emissions in comparison to the world average of 890g/kg. Characteristics of low CO 2 cement could include low fuel consumption, high mineral component extension (fly ash and GGBS or a combination thereof within SABS standard requirements) and low clinker content. Commenting on the way forward, AfriSam’s Marketing Manager, Victor Bouguenon says, “We see the reduction of CO 2 as an urgent responsibility for industry in general. We believe that this initiative is a first in the world for the cement industry and encourage other producers to follow suit.” Examples of the CO2 rating stamps which will appear on every bag of cement sold by AfriSam

Victor Bouguenon, AfriSam, Tel: (011) 670-5520 www.afrisam.com

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COP17

Implications of COP17 for the transport sector

Carbon management consultancy Cleaner Climate South Africa director Kerry Wright discusses some of the major implications of the recent 17th Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change (UNFCCC) on the local transport sector.

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ummary of COP17 • The COP17 meeting resulted in nations committing to have an agreement in place by 2015 and to begin by 2020.

• There is a new accord to ensure that countries will be legally bound to carry out any pledges they make. It will take effect by 2020 at the latest.

• The Kyoto Protocol continues to apply to participating nations, although the European Union (EU) says an extension of its targets is conditional on major developing countries also accepting limits with the same legal accountability. The second commitment begins in 2013. • Mechanisms include emissions trading, the Clean Development Mechanism (CDM), and Joint Implementation. • A separate document obliges major developing nations like China and India, excluded under Kyoto, to accept legally binding emissions targets in the future. • Countries are to submit their emission reduction targets to the UNFCCC by May 1, 2012

Catastrophic

On the plus side, the plan going forward to reduce emissions is to include action by all major countries of the world (ie including China, US, India etc). On the negative side, it may be too little too late. Cuts are not sufficient to avoid the 2ºC raise in temperature warned by the UNFCCC as being “catastrophic”

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COP17

Impacts on local carbon market

The continuation of Kyoto averts SA falling out of the EU carbon market (which is the majority buyer of carbon credits). Early in 2011, when it was undecided whether Kyoto would survive, the EU had indicated it would stop carbon trade in all but the least-developed countries if no second commitment period was secured. This would have meant South Africa would have been largely excluded from the carbon credit market - as EU is the primary buyer. Nonetheless, the second commitment period is not expected to spark a noticeable increase in demand for carbon credits globally – so it is uncertain whether demand for South African credits will increase.

Transport sector

• The transport sector is currently responsible for approximately 15% of overall greenhouse gas (GHG) emissions • Global CO 2 emissions from transport have grown by 45% from 1990 to 2007

breakdown among freight vehicle classes varies among countries

• Road sector emissions dominate transport emissions with light-duty vehicles accounting for the bulk of emissions globally. In certain countries road freight accounts for up to 30% to 40% of road sector CO 2 emissions, though the

• The 7th Annual State of Logistics survey found that in South Africa, the transport sector – both freight and passenger – consumes 27% of the country’s total delivered energy, 78% of its liquid fuels and 1.6% of its electricity

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COP17

COP 17 and transport

• Logistics companies may need to consider diversifying into rail, which has lower emissions than for road transport.

o The Transport Flagship Programme – includes an enhanced public transport programme; an efficient vehicles programme; rail re-capitalisation programme to facilitate both passenger modal shifts and the shift of freight from road to rail.

• Transport/logistics companies should implement carbon management software that allows them to track emissions in real time, as opposed to retrospective annual carbon footprints.

Part of the national Green Economy Accord released just before COP 17 reveals:

• The National Energy Efficiency Strategy includes targets for 2015 of reducing energy intensity in the transport sector by 10% o By 2014, the state-owned commuter rail company, PRASA, will invest R20 billion in new trains. o Government will also review its rail investment programme in order to accelerate the shift of freight transport to rail from road. o Transnet will invest about R63 billion in the freight rail system over the next five years. • South Africa has indicated it favours a carbon tax vs trading scheme o The roadmap for this has yet to be finalised, but implications are that emission-intensive sectors will be targeted, most likely to include the transport sector – thereby influencing the logistics industry

o The cost implications of carbon tax encourages companies to be proactive not retrospective about emission management, as emissions now carry a financial liability. Acco2unt is a SAS enterprise carbon accounting programme that provides organisations with robust carbon management and accounting solutions. Carbon accounting software such as Acco2unt allows for tracking/managing emissions in real time against focused reduction targets. Cleaner Climate is Greenstone’s Acco2unt implementation partner in South Africa. Cleaner Climate and Greenstone recently implemented Acco2unt for leading logistics company, Super Group. Cleaner Climate South Africa Kerry Wright Tel: +27 82 804 5757 www.cleanerclimate.com kerry@cleanerclimate.com

o It is proposed that the country's industries will each be allocated a carbon budget. Each sector will have to “do its best and spend to reduce emissions.” o The proposed tax @ R120 per ton of carbon dioxide (equivalent) above certain suggested thresholds will take effect during the 2013/14 tax year, with annual increases of 10 percent until 2019/20. o The proposal includes “a basic tax-free threshold of 60 percent”, with additional concessions for “process emissions and trade-exposed sectors”. o Any reductions achieved will be measured against a base-year or industry benchmark

Implications

• Emissions will become taxable, so the motivation is to reduce carbon footprints and thereby reduce risk exposure to carbon tax • It is important for transport/logistics companies to meet or better industry benchmarks, as the benchmark will define “carbon budget” for the sector, thus the emission threshold and tax • Fuel use is the primary emission source in transport/logistics – so the challenge is to reduce fuel usage via efficiency measures such as driver behaviour modification, route planning and management software, effective vehicle maintenance, consideration of biofuels, energy efficient vehicles etc. Green Guide 2012

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BUILDINGS

Tips for Green Warehousing

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BUILDINGS

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he shear size and space of a warehouse building allows for innovative solutions. Green warehouses are built on the basic principal of proactive thought and design. Many, if not most, buildings can be retro-fitted to enhance their ecological footprint. However, to change a building’s ecological footprint in the most efficient way, it needs to be approached with an integrated mindset. Aspects of a green warehouse include: • External lighting position avoids light pollution. • Super air tight and insulated building envelope. • Recycled cement and aggregates. • Increase biodiversity through the use of indigenous plants. • Self generation of electricity can power 50% of office lighting. • Storm water collection reduces 50% of water usage. • Visually-appealing graded blue cladding to blend in with the environment. • Solar panels preheat hot water for offices.

• Ground source heat pump can provide 100% of heating and cooling systems for the offices. Through the greening of warehouses industries can drastically lower the ecological footprint of their brand and have a positive influence on the immediate area of the warehouse, a growing trend is for warehouse developers to not only look at the dynamics of the building but to also restore the surrounding areas. The typical setting of a warehouse includes brownfields and developers strive to develop these. In the context of evergrowing environmental consciousness, this is an indespensable market edge. Mr Green, Email: info@mrgreen.co.za www.mrgreen.co.za

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REPORTING

An Integrated Report

Mervyn King

The over 450 companies listed on the Johannesburg Stock Exchange (JSE) are required to produce an integrated report in place of their annual financial report and sustainability report for all year ends which commenced on or after 1 March 2010 or explain why they are not.

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n integrated report gives users an all-round view of the company by including social, environmental and economic performance along with the company’s financial performance. The issue companies face, however, is that there are no set standards on integrated reporting. So, it is for this reason that various organisations have come together to form the Integrated Reporting Committee (IRC). The IRC will issue guidelines on good practice in integrated reporting. It will be chaired by Professor Mervyn King.

The founding organisations

The Association for Savings and Investment SA (ASISA); Business Unity South Africa (BUSA); Institute of Directors SA (IoDSA); JSE Ltd; and The South African Institute of Chartered Accountants (SAICA).

Integrated reporting means a holistic and integrated representation of the company’s performance in terms of both its finances and sustainability “Integrated reporting is the evolution of financial reporting,” says Prof. King. “It’s important to note that integrated reporting is not replacing financial reporting, rather it reflects the evolution of reporting and the company’s role in society. “South Africa is among the first countries in the world to require integrated reporting of listed companies. This puts us way ahead of the game,” he says. King III states that sustainability reporting and disclosure should be integrated with the company’s financial reporting. The company’s board should ensure that the positive and negative impacts of the company’s operations, and its plans to improve the positives and eradicate or ameliorate the negatives in the financial year ahead, are conveyed in the integrated report. It states that integrated reporting means a holistic and integrated representation of the company’s performance in terms of both its finances and

sustainability. Leon Campher, Chief Executive Officer (CEO) of ASISA, says this project is considered a priority initiative given the volumes of annual reports generated by ASISA’s member companies. “We have 153 member companies managing in excess of R2.5-trillion of assets. Integrated reporting will facilitate more holistic and meaningful reporting of financial results, enabling shareholders and clients to gain a better understanding of a company’s triple bottom line. This initiative also ties in closely with other projects ASISA is currently involved with around socially responsible investing and the governance of companies that our members invest in.”

Holistic view

Freda Evans, JSE Ltd’s Chief Financial Officer, believes that the inclusion of sustainability reports in financial statements has greatly enriched financial reporting. “Reporting on the financials alone is no longer sufficient, as all aspects of the business – environmental, social and governance aspects – impact on the company’s bottom line. Integrated reporting gives potential investors and other stakeholders a holistic view of how the company is managing all of these factors and their potential impact of the company’s position.” Proponents of integrated reporting note that the comprehensive disclosures of integrated reporting will close the gap between a company’s reported performance and the legitimate interests as well as expectations of its stakeholders. Thando Pato, SAICA Tel: 011 621 6898, thandop@saica.co.za or Edward Makwana SAICA, Tel: 011 621 6713, edwardm@saica.co.za

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FARMING PRACTICES

Fresh from the Sea

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thical farming goes beyond simply ensuring that chickens get some sunshine every day. Food sources need to be protected for long-term sustainability, not just to keep animal activists happy, but to feed our rapidly burgeoning global population beyond this generation.

Seafood Initiative (SASSI) has implemented a colour-coding reference to indicate the means by which specific fish may be harvested, if at all.

Mary Lunde, General Manager at Lusitania, emphasises that the principle applies to both land and ocean sources. “Tracing fish back to source is as important, if not more so than with meat,” says Mary. “It’s important that fish is accurately labelled so that consumers can be assured that they’re not eating Mary Lunde, GM, Lusitania an endangered species.” Lusitania has addressed this issue with its new range of labelling, along with a new association with Fish On Line (FOL).

Mary explains that Lusitania’s informal partnership with FOL reflects the international trend for seafood suppliers to go through accreditation processes. FOL is a local fish and seafood supplier with Marine Stewardship Council (MSC) Chain of Custody Certification as well as being a SASSI partner. The partnership assures buyers that fish can be traced back to a sustainable, ethical fishery, with the intention of educating seafood lovers about marine conservation issues.

Fish can be traced back to a sustainable, ethical fishery Colour coding

Apart from the moral aspect, depleting fish stock would have a catastrophic effect on marine ecology, potentially affecting our seafood resources permanently. The South African Sustainable

Various species fall into green, orange or red databases, each with varying degrees of control applied, ranging from readily available green codes, vulnerable orange and finally red coded fish, which consumers should not purchase.

Overseas trend

“Our branded products are marketed in varied sectors, so certification is crucial,” adds Mary. With all prawn and salmon stock now being farmed rather than sourced in the wild, labels include information such as batch and spawn dates, with FOL following up farming practices of suppliers.

Sea sick

She goes on to explain that this protects buyers for health issues, such as Red Tide, for instance. “Bacteria in the seafood industry is a major problem which can result in poisoning of fish and subsequently customers,” Mary warns. “Labelling laws have become necessary since people don’t often know what they’re getting,” she says. “Tiger Prawns are a good example of this. We decided that our labelling should be clear and explain exactly what’s in the box.” Lusitania’s new packaging for prawns, blanched prawn meat and smoked salmon clearly indicates country of origin, processor, exporter, importer and exact ingredients. In addition to expiry date, information also includes recommended storage instructions.

Barcoding

She goes on to say that identification is further facilitated by barcoded packaging. “All new branded products are barcoded for retail purposes,” she explains. Barcodes are currently printed by Fish On Line on freezer labels, although ultimately these will be printed at source onto the packaging.

SASSI advises consumers on which fish are viable to buy. The Soupfin Shark and Tuna (or Albecore) are both on SASSI’s Red List

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The company has been allocated unique numbers for either the inner or outer cartons which can be universally read by any barcode scanner at a retail outlet. “This is done for every single item so that the retailer knows exactly what is inside,”


FARMING PRACTICES NOT ON THE LIST?

KEY TO SYMBOLS

The MSC eco-label indicates that a product is certified to be from a well-managed and sustainable fishery. For more information, visit: www.msc.org

LOOK OUT FOR THE MSC LOGO

Species in the RED list with a black background are illegal to sell in South Africa. Either specially protected or recreational “no sale” species. Never buy these.

Specially protected species Fishery Improvement Projects underway fish

Species are regularly being added to our database, which is available through FishMS, our mobi site and website.

ALWAYS ASK THE FOLLOWING QUESTIONS What is it? Where is it from? How was it caught? Research has shown that the consumer who asks questions drives positive change more rapidly than those who make eco-friendly choices, but don’t inform the restaurant or retailer. brought to you by

Lusitania itself is governed by these regulations and the company adheres to strict rules regarding temperature management, among other issues. The transport fleet is equipped with reliable refrigeration units to ensure optimum temperature controls at all times during travel.

FishMS

Poor storage

Obviously labelling can’t circumvent poor storage practices however when it comes to retailers and restaurants, correct management usually resolves this. “Top chains require audits by independent food auditors to maintain best practices in supply chain management,” she tells us. “Care should be taken to prohibit stock from standing outside, while correct disposal of waste is monitored. This is further enforced by annual Health Department checks of sanitation, etc.”

GREEN - BEST CHOICE Alaskan Salmon Kob (land based farms)* Albacore Tuna (pole caught)* Mussels (farmed & wild)* Albacore Tuna Oysters (farmed & wild)* Anchovy Panga (line caught)* Angelfish Portuguese Atlantic Mackerel Sardines Calamari (Squid) Queen Mackerel Canned Tuna (selected Santer sources)* South African Sardines South African Snoek West Coast Rock Lobster Yellowfin Tuna (pole caught)* Yellowtail Dorado Gurnard (offshore trawl)* Hake Herring Horse Mackerel/ Maasbanker

ORANGE - THINK TWICE

Yellowtail (locally farmed)*

(line caught)*

Abalone (farmed)* Kob (farmed at sea or line caught)* Atlantic Bigeye Tuna Atlantic Yellowfin Tuna Monk Atlantic/Norwegian Salmon New Zealand Kingklip/ (farmed)* Ling Cape Dory Pangasius/Basa (farmed)* Carpenter (line caught)* Prawns Catface Rockcod Red Roman African Sharptooth Catfish Sharks (line caught)* (farmed)* Skates and Rays* Englishman Slinger Geelbek/Cape Salmon Sole (East Coast) Swordfish White Stumpnose (line caught)*

Hake (longline)* Hottentot Jacopever (offshore trawl)* King Mackerel Kingklip

NO SALE SPECIES

RED - DON’T BUY

Black Musselcracker/ Poenskop Bluefin Tuna Dageraad Indian Ocean Bigeye Tuna Indian Ocean Yellowfin Tuna Kob (trawl caught)* Red Steenbras Red Stumpnose/ Miss Lucy Scotsman Sharks (trawl caught)* White-edge Rockcod Yellowbelly Rockcod

Baardman/Belman Blacktail/Dassie Brindle Bass Bronze Bream Cape Stumpnose Galjoen Garrick King Fish Knife Jaw Natal Stumpnose Natal Wrasse Potato Bass River Snapper Seventy-four Spotted Grunter West Coast Steenbras White Musselcracker White Steenbras

*See www.wwf.org.za/sassi for details

Mary Lunde, Lusitania, Tel. 031 466 1545 Fax. 031 466 1808 Email. maryl@lusitania.co.za Website. www.lusitania.co.za

*See www.wwf.org.za/sassi for details

According to Mary, with advances in freezing technology, many of the issues that previously affected seafood supply to restaurants are no longer a problem. “Fish aren’t just offloaded from boats and dumped at restaurants,” she chuckles. “And few restaurants buy fresh fish anymore. The freezing and processing of fish is now so sophisticated that it’s actually preferable to source fish frozen on board.” Hopefully with a splash of good management and a soupçon of good conscience, our oceans will be able to feed our grandchildren.

Remember the product must carry the MSC logo to be sure it comes from a MSC certified fishery.

The Marine Stewardship Council (MSC) works with partners to promote sustainable fishing practices

*See www.wwf.org.za/sassi for details

Fish aren’t just offloaded from boats and dumped at restaurants

Simply text the name of the fish to the number 079 499 8795 and you will immediately get a message telling you whether to tuck in, think twice or avoid completely! Normal network rates apply.

Mary explains. “The barcode will provide detailed information of contents, for example ’16 tiger prawns’, which will then have a price allocated.”

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Green Guide 2012


Enter your product or project now! Deadline: 29 June 2012 The prestigious Green Supply Chain Awards recognises people, projects and products that have gone above and beyond the call of duty to enhance the environment in which they operate.

The inaugural awards in 2009, followed by those in 2010 and 2011, enjoyed a wonderful response from the supply chain community and everything is on track to make the 2012 event one of the industry’s most prestigious accolades.

Sponsors: Entry forms are available from: Louise Taylor on Tel: (011) 781-1401 or Email: supplychain@promech.co.za www.promech.co.za

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Green Guide Supply Chain 2012 Today

May 2012


CARBON FOOTPRINT

How Logistics can Reduce its Carbon Footprint How can the logistics industry contribute to reducing greenhouse gas emissions? The EU Logistics Hub has potential solutions.

• Developing greener vehicles eg, by using stronger particulate filters, better achieving truck motors etc. • Slowing down the supply chain to reduce emissions. • Optimising supply chain networks, eg, reducing the number of trucks that drive without load or are only partially loaded • Building energy efficient warehouses, eg, using solar panels or LED lights • Using energy friendly packaging: recycle, use cardboard instead of plastic and don’t use too much packaging

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ogistics is responsible for 6% of global CO 2 emissions. Humans are responsible for greenhouse gas emissions of 50 000 mega-tonnes of CO 2e (a measure of carbon dioxide emissions), while the logistics industry contributes around 2 800 mega-tonnes of CO 2e – 6% of total emissions. Logistics industry emissions are not only caused by fuel, but also by packaging, and the energy used in warehouses for example.

60000.00 50000.00 40000.00 30000.00 20000.00 10000.00 0.00

• Intermodal logistics: combining different types of transport and choose rail or shipping where possible, as those ways of transport don’t emit that much greenhouse gases

2012 trends

We can see many trends getting stronger in 2012, green logistics being a key one. Why? Because customers require companies to meet the environmental standards of the more and more demanding consumer. This brings us to the how. By means of innovation in energy saving devices, Reducing footprints by analysing and reducing waste production and by Many experts consider that the following measures teaming up with logistics service providers who are will help to make logistic services more sustainable: fully conscious of what going green means and act in consequence. Fortunately, we must not forget that the logistics industry is quickly adapting to those new challenges, to offer their customers with best-in-class Logistics industry solutions. Partnering with them will definitely be a key enabler Other to drive up performance. Greenhouse gas emissions

Global greenhouse gas emissions in mega-tonnes of Co2e

European Logistics Hub Tel: +31 43 328-0280 Email: info@eulogisticshub.com www.eulogisticshub.com

Green Guide 2012

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GREEN SUPPLY CHAIN AWARDS

A Green New World Distinguishing between which companies have truly embraced environmental sustainability from the great pretenders is challenging when ‘green’ is the latest buzzword. The annual Green Supply Chain Awards aims to sieve out the gems in the sector and recognise their efforts. The Green Supply Chain Awards are a joint initiative of the CGCSA (Consumer Goods Council SA), CILTSA (Chartered Institute of Logistics & Transport) and “Supply Chain Today” the only South African magazine covering the entire supply chain and logistics arena.

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n 2011 six award winners and two ‘highly commended’ entrants were chosen, and honoured at the green Supply Chain Awards function held in August 2011.

Best Product – Highly Commended: City Power Johannesburg

Product/Project: Recycling Promotion Project, launched in April 2011, valued at R85 000 Description and innovations: Distributing colour coded bins and stainless steel bins for recycling, awareness posters and internal recycling boxes forms the first phase of this project, which is being rolled out to all ten City Power depots. Vehicle emissions, gas turbines and oil recycling plants are also monitored to mitigate/reduce carbon emissions. Results/principles: • The revenue collected from this project will be used for environmental sustainability initiatives

• Waste is being reused and reduced to save landfill space • The Clean Development Mechanism is being applied to reduce the global warming effects of landfill gas and minimise the waste stream to landfill sites by properly disposing of biodegradable waste Green effect: recycling, sustainability and transport

Best Product - Under R1 million: Stab-aLoad

Product/Project: Solar powered system for docking equipment, launched in December 2010. Pneumatic dock levellers and 8 motorised sectional doors valued at R109 5000 excl VAT Description and innovations: The solar-powered system operates single or multiple Stab-a-load pneumatic dock levellers, Star 4 truck restraints, LED dock lights and motorised sectional doors, incorporating deep cycle AGM batteries. It includes 185 W mono crystalline solar collectors sealed, valve-regulated, non-spill, gel deep cycle batteries, 24 V AC to 120 V DC inverters, as well as a Phocos maximum power point tracker. Stab-a-Load claims to be the first company in SA to offer a solar-powered system for materials handling equipment. The product can be retrofitted and operate in ‘black out’ conditions like power cuts and low UV light penetration. Results/principles: • Reduces electrical reticulation and running costs • 40-50% reserve from deep cycle AGM batteries enable the equipment to be operational for up to 5 days in unavailable UV light • Testing configuration has shown capability to run without sunlight for up to 5 days, at a rate of 87 to 10 cycles per day Green effect: energy efficiency, finance, sustainability, transport and warehousing

Best Product - Over R1 million: TrenStar SA Babalwa Mbobo and Thabiso Letaoana of City Power

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Green Guide 2012

Product/Project: TrenStar Returnable Interlayer, launched in August 2008, investment of R3.3 million


GREEN SUPPLY CHAIN AWARDS

Gariella Alberoni (Brandguru) and Irvan Damon of Sustainable Energy Society of Southern Africa (SESSA), a Green Supply Chain judge

Description and innovations: Custom-designed returnable packaging ensures the protection of components during transport and processing in a more environmentally-friendly, cost-effective way versus conventional one-way disposable dunnage. Used either in a standard pool of returnable containers/cages or specifically produced for purpose-designed equipment, replacing traditional one-way dunnage. Every unit is barcoded or fitted with barcoding and RFID to facilitate tracking and tracing through the supply chain. Results/principles: • Made of black high density polyethylene, it has a life span of more than 5 years, after which it’s 100% recyclable • Interlayers fit into a returnable, collapsible container occupying minimal space for return transport

Mark Hunter and Annalie Lombard from Eskom

data contract – providing required software, hardware, data, support and services. Creating a live field data platform that links customers and staff to always-on, electronic data from the field. Results/principles: • Increases efficiency and productivity, creating paperless processes and reducing waste • Allows drivers and other field workers to work directly on line-of-business applications in the field instead of working on paper Green effect: energy efficiency, people/HR, sustainability, transport, warehousing and waste

Best Project - Under R1 million: Hoogheimstra Logistics Services

Product/Project: Green Fleet Management Project,

• Measureable impact on the industry and environment through waste reduction. Eg. During a two-year, 8-month sample period, one client eliminated the use of 528 578 m2 cardboard interlayer inserts and boxes, a waste saving of 132 144,72 t Green effect: energy efficiency, finance, inventory, management, manufacturing, packaging, people/ HR, production, recycling, sustainability, transport, warehousing and waste

Best Project - Highly Commended: MTN

Product/Project: Enterprise Mobility Platform, implemented July 2010, valued at R5 million Description and innovations: Increase efficiency and productivity in logistics businesses and reduce costs and wastage through live, alwayson, electronic field data from MTN Business Transport & Logistics. Enterprise mobility solutions bundled cost-effectively with business’ cellular

Guest Speaker, Simon Gear with Liesl de Wet of Barolworld Logistics

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“A better perspective of the Supply Chain function” - Caitlin Hilditch, Senior Manager: Service Parts Supply Chain Integration, Toyota -

LIMITLESS POSSIBILITIES Imagine discovering a supply chain resource with unending capabilities for growth. At SAPICS, a professional membership-based association, our aim is to advance individuals and organisations in the fields of supply chain and operations, through participation in our educational programmes, events and our annual conference. SAPICS’ wide range of courses also include the world renowned certifications from APICS, The Association for Operations Management in the USA. As an educational resource SAPICS caters for the full spectrum of experience levels in any organisation - from people who are just embarking on a career to seasoned professionals with years of experience. As a best practice resource, SAPICS exposes members to knowledge gained through experience, and processes that are proven and effective. As an organisation, SAPICS really does set the benchmark for Supply Chain, Operations and Logistics management in South Africa.

FOR THE FULL REPORT

Visit www.whysapics.co.za for more information about what SAPICS can do for you.

www.whysapics.co.za

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Green Guide 2012

& WHAT SAPICS

CAN DO FOR YOU LOGON TO:


GREEN SUPPLY CHAIN AWARDS

Clinton van Vuuren, Lelanie Ferreira, Shaun Boucher and Chirene Landman, all from Eqstra Industrial Equipment”

Ashal Hunsras, Shaun Oosthuizen and Marnus van der Merwe from MTN

Andrea du Toit, Gideon de Swardt and Steven McClurg from Scania

Catherine Larkin (CILTSA) and Gjalt Hooghiemstra (Hooghiemstra Logistical Services (HLS))

implemented January 2011, valued at R96 000

optimal vehicle operation

Description and innovations: Containment of fleet costs to ensure client’s fuel consumption and fleet operating costs stay in desired parameters. This also maintains their carbon footprint and fleet costs.

• A reduction in harsh braking incidents resulted in no additional brake replacements needed

Results/principles:

Green effect: transport, carbon footprint

• Given the average distance travelled by the fleet per month is 23 333 km, average fleet carbon saving ~ 5920 kg CO2/yr

Best Project – R1 to R10 million: Distell

• Monitor fuel consumption, fleet routing and distance, kilometre against budget and reduced carbon footprint • A change in driver behaviour resulted in no major accidents in fleet for six months and

• Vehicle costs are maintained through controlled fuel costs and no major or unplanned maintenance costs

Product/Project: “Give Back Get Back” glass recycling campaign, implemented May 2010, valued at R1 million Description and innovations: Accelerating glass bottle returns from the public and liquor outlets in Mpumalanga, Gauteng, North West and Limpopo Green Guide 2012

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GREEN SUPPLY CHAIN AWARDS

Helena Marais, Cynthia Nkosi, Reetsang Mothibi of Imperial Distribution pictured with Reiner Biewenga of Masterdrive

through marketing material, trade visits and in-store marketing campaigns. Reusing bottles, reducing waste, greenhouse gas emissions and electricity use and reducing manufacturing impact on the environment

Martin Bailey (ILS) and Kirk Nash (Adcock Ingram)

the northern and central region vs. 31.4 million in 2009/10. Amounted to more than R5 million in cost savings.

Results/principles:

• Nationwide, Distell re-used 125,5 million glass bottles, saving a total of 68 500 t glass, and 103 440 t in CO2 equivalent emissions

• 35.2 million bottles returned in 2010/11 in

• 413 jobs (Distell bottle merchants) created Green effect: energy efficiency, packaging, recycling, waste

Best Project – Over R10 million: Adcock Ingram

Product/Project: Halving the energy consumption in its New Road distribution centre in Midrand, Gauteng Description and innovations: Halved the expected power requirements by re-engineering the proposed management systems, operational processes, building, incoming power supply infrastructure, lighting, air-conditioning, charging and related systems. Results/principles: • Original power investment: 1600 KVA; actual achieved 785 KVA. Projected R2 million+ saving in electrical usage over the next five years (R0.80/ KWH) • Installed a Daiken variable refrigerant volume (VRV) system with direct air expansion for air-conditioning, allowing the air-conditioning demand to reduce from 800KVA to 350KVA (coupled to insulation improvements) • 100mm rock wool insulation was inserted under the warehouse roof, allowing a reduction in air-conditioning power of 20% • Metal halide lights were replaced with T5 type florescent lights and connected to passive infrared sensors which turn off the lights if there’s no movement in the area under them Moses Moshe and Poppy Moshe from the State Security Agency

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Green Guide 2012

• Changing to high frequency battery chargers allowed a power reduction of 15%


Green Supply Chain Awards: a joint venture

GREEN SUPPLY CHAIN AWARDS

between CILTSA, the CGCSA and “Supply Chain Today”

From left: Annelize Kniep (Barloworld Logistics), Susan Custers (Supply Chain Today) and Carli Venter (Barloworld Logistics)

Tjaart van der Walt and Netta van der Walt from Magnet Group

Green effect: Energy efficiency, finance, sustainability, warehousing

Industry Leader: Abrie de Swardt - Imperial Logistics marketing director The Award was presented to Abrie due to his farreaching work on bringing ‘green’ to the supply chain within Imperial Logistics and spreading the message broadly throughout the supply chain and business communities. On receipt of the Industry Leader Award Abrie said, “We need to develop a sophisticated view of the impact that we have on the environment. We need to change our paradigm, our behaviour and the way in which we look at ‘green’.” Imperial Logistics is on a sustainability focused growth path that balances people, planet and profit. He said that within the company, there are many inspiring, collaborative examples of greening operations and customer supply chains. “Best practice formulation and application has been pioneered through introducing South Africa’s first Euro 5 specification vehicles, innovative water management system development specifically for the needs of transport companies, ‘extra distance’ analysis, network redesign for cutting carbon emissions and cost simultaneously, as well as an investment in zero emission vehicle refrigeration that operates in complete silence – no moving parts, no harmful emissions and absolutely no noise,” he added.

Sponsors

Christoffer Ljungner from Scania, lead sponsor of the event

partner in ensuring the event’s success. Barloworld Logistics and Trenstar remained on as valued sponsors who have been on board from the get-go. Futher sponsors were Improvon and MasterDrive who sponsored the prize of two Defensive Driving courses for the lucky winner. To enter the Green Supply Chain Awards or to be a sponsor of the event, please contact Lelanie Diamond on Tel: (011) 781-1401 or Email: supplychain@promech.co.za www.promech.co.za

Scania was the lead sponsor and an intergral Green Guide 2012

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GREEN SUPPLY CHAIN AWARDS

Left to right: Dawn Dodds from TrenStar (sponsor), Gjalt Hooghiemstra from Hooghiemstra Logistical Services, Leonard Wallace from Stab-A-Load, Kirk Nash from Adcock Ingram, Mapule Ncanywa from CGCSA, Abrie de Swardt from Imperial Logistics, Thabiso Letaoana from City Power, Susan Custers from Promech Publishing, Eugene Herbert from MasterDrive (sponsor), Simon Gear (guest speaker) and Irvan Damon (one of the judges)

David Logan from the South African Association of Freight Forwarders Euphodia Netshakhuma and Thendo Netshiavha from Transnet

Previous Winners 2010 Industry Leader - Winston Muir - Scania Best Project (over 10 million) - Unitrans / Pick n Pay Best Project (1 to 10 million) - Foschini Best Project (under 1 million) - Chemical & Allied Industries Best Product (1 to 10 million) - Magnet Engineering Best Product (under 1 million) - Barloworld

Dave Walton from Chep with Jacoleen Richards from the CGCSA

For Green Supply Chain Award quieries Contact: Louise Taylor on Tel: (011) 781-1401 or supplychain@promech.co.za www.promech.co.za

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Green Guide 2012

2009 Industry Leader - Eugene v/d Lith - Gautrain Best Project (over 10 million) - CT Utility Services Best Project (1 to 10 million) - TNT Best Project (under 1 million) - No Award Best Product (1 to 10 million) - PM Systems Best Product (under 1 million) - CX Pallets Best Product (inder 1 million) - Apex


LOGISTICS SERVICE PROVIDERS

Challenges for Logistics In warehousing and distribution, energy costs are reduced in a number of simple ways such as using motion sensors to only illuminate areas in use and charging forklift trucks in off-peak hours when energy costs are lower.

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ome companies are looking at introducing solar panels on warehouse roofs and intelligent electrical systems to take advantage of off-peak power. LED lighting in a warehouse can decrease the light-related energy consumption up to 80% versus the traditional light bulb. The saving can be counted in thousands of Rands for a single warehouse, besides the positive impact to its carbon footprint.

Location

The location where a warehousing and distribution centre will be set up will be a real key decision factor, as the EU Logistics Hub sees fuel prices steadily increasing and directly impacting distribution costs. Nevertheless, many LED lighting in a warehouse can decrease the lightother factors have to related energy consumption up to 80% be considered, such

The location where a warehousing and distribution centre will be set up will be a real key decision factor as a skilled workforce, tax benefits, investment friendliness and quality of infrastructure. Several questions should be asked, such as: how close to the market does it need to be? Which country offers the best situation tax-wise? How do you ensure that deliveries to customers occur within 24 hours? Selecting a best-in-class logistics provider is one of the surest way to help solve the time-to-market equation, as being the first one present on the market is often a matter of

success or failure for fast-paced companies. It’s of no use to design a perfect and innovative product if the competition can do the same and meet the market first. That’s why the time-tomarket concept needs to be backed by an efficient logistics partner strategically established close to the target market. In many cases, the integration between logistics service and trading companies is pushed ahead and results, for example, in sharing a common IT platform, to ensure realtime data transmission.

Advanced logistics

Lastly, advanced logistics has to be considered as a key success factor. Advanced logistics can be defined as a set of added-value operations performed before the products leave the warehouse distribution centre for customer delivery. In all cases, it is about product customisation (customerspecific labeling for example), in other cases about bundling two different products (for promotional sales for instance). Advanced logistics can make the difference, not only by fulfilling customer needs, but by bringing added value and therefore a competitive advantage against the competition (repackaging, assembly operations, late differentiation etc). The marketplace is changing, the chain has to be more agile and responsive. The time of the one-distribution-channel is over and logistics companies have now to reply to multi-channeldistributions schemes (traditional, e-business, small retail). Therefore, the selection of a logistics service provider or an air freight forwarding company is a crucial decision towards meeting a business’ time-to-the-market.

Trends

Many trends are getting stronger, green logistics being key. Why? Because customers require companies to meet the environmental standards of the more and more demanding consumer. How? By the means of innovation in energy saving devices, by analysing and reducing waste production and by teaming up with logistics service providers who are fully conscious of what going green means and act in consequence. Fortunately, the logistics industry is quickly adapting to these new challenges, to offer their customers best-in-class solutions. Partnering with them will definitely be a key enabler to drive performance up. The EU Logistics Hub Email: info@eulogisticshub.com www.eulogisticshub.com

Green Guide 2012

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Buyers Guide

Green Guide 2012

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Buyers Guide

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CORPORATES

Trends Creating a Trillion-dollar Global Sustainable Economy

Corporations, not governments, are now driving the push toward sustainability as they harvest increasingly significant profit growth through design and process innovations that cut production, delivery, packaging and disposal costs while also reducing a company’s/product’s environmental footprint.

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his is a global trend led by international companies like Walmart, GE and Coca Cola. Its commercial impact is now evident in the increasing scale of request for proposal bid questions on sustainability metrics and performance results documentation.

The combined impacts of the greening of the supply chain have now made this process the economic engine of the global sustainable economy.

This global mega-trend is creating new revenue growth opportunities for smaller businesses that can offer price competitive lower environmental footprint products and solutions. It is also decentralising decision-making as large corporations gain success using Green Teams to find and implement ideas that reduce costs and a company’s environmental footprint.

CSR importance

Where CFOs once questioned the ROI of producing a corporate social responsibility (CSR) report, the importance of these documents is now clear. CSR reports have an increasingly important role as a source document used by third parties that communicate to consumers and equity investors on the sustainability of a company and its products, which has an implicit impact on the bottom line.

Earth 2017 Bill Roth Email: bill.roth@earth2017.com www.earth2017.com

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FUEL ALTERNATIVES

A Case for Biodiesel Biodiesel is a renewable fuel that can be manufactured from vegetable oils, animal fats, or recycled restaurant grease. It is a cleaner-burning replacement for petroleum diesel fuel, non-toxic and biodegradable, according to the US Department of Energy.

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ike petroleum diesel, biodiesel is used to fuel compression-ignition engines, which run on petroleum diesel.

The cold-flow properties of biodiesel blends vary depending on the amount of biodiesel in the blend. The smaller the percentage of biodiesel in the blend, the better it performs in cold temperatures. Regular No. 2 diesel and B5 perform about the same in cold weather. Both biodiesel and No. 2 diesel have some compounds that crystallise in very cold temperatures. In winter weather, manufacturers combat crystallisation in No. 2 diesel by adding flow improvers. For the best cold weather performance, drivers should use B20 made with No. 2 diesel manufactured for cold weather.

Biodiesel Benefits and Considerations

Percent Change in Emissions

Using biodiesel as a vehicle fuel increases energy security, improves public health and the environment, and provides safety benefits, states the US Department of Energy.

Percent Biodiesel Average Emissions Impact of Biodiesel for Heavy-Duty Highway Engines Source: EPA 2002

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Green Guide 2012

Biodiesel has an excellent energy balance: it contains 3.2 times the amount of energy it takes to produce it. This value includes energy used in diesel farm equipment and transportation equipment, such as trucks and locomotives; fossil fuels used to produce fertilisers, pesticides, steam, and electricity; and methanol used in the manufacturing process. Because it is an energyefficient fuel, it can extend petroleum supplies. However, as biodiesel blend levels increase significantly beyond B20, the energy content per gallon decreases. It contains about 8% less energy per gallon than petroleum diesel. For B20, this could mean a 1% to 2% difference, but most B20 users report no noticeable difference in performance or fuel economy.

Air Quality

Compared with using petroleum diesel, using biodiesel in a conventional petroleum diesel engine substantially reduces tailpipe emissions of unburned hydrocarbons (HC), carbon monoxide (CO), sulphates, polycyclic aromatic hydrocarbons, nitrated polycyclic aromatic hydrocarbons, and particulate matter (PM). The reductions increase as the amount of biodiesel blended into diesel fuel increases. B100 provides the best emission reductions, but lower-level blends also provide benefits. B20 has been shown to reduce PM emissions 10%, CO 11%, and unburned HC 21% (see graph). Using biodiesel reduces greenhouse gas emissions because carbon dioxide released from its combustion is offset by the carbon dioxide sequestered while growing the soybeans or other feedstock. B100 use reduces carbon dioxide emissions by more than 75% compared with petroleum diesel. Using B20 reduces carbon dioxide emissions by 15%. Greenhouse gas and air-quality benefits of biodiesel are roughly commensurate with the blend. B20


FUEL ALTERNATIVES

engines that previously used petroleum diesel.

Safety

Biodiesel is non-toxic. It causes far less damage than petroleum diesel if spilled or released to the environment. It is safer than petroleum diesel because it is less combustible. The flashpoint for biodiesel is higher than 150°C, compared with about 52°C for petroleum diesel. The fuel is safe to handle, store, and transport. South African-based biodiesel equipment company Biotech reports that tail pipe emissions from biodiesel are far more people-friendly than those from petrodiesel. They are neither carcinogenic nor mutagenic and cause far less bronchial irritation. EPA confirms that.

use provides about 20% of the benefit of B100 use. B100 use could increase nitrogen oxides emissions, although it greatly reduces other toxic emissions.

Engine Operation

Biodiesel improves fuel lubricity and raises the cetane number of the fuel. Diesel engines depend on the lubricity of the fuel to keep moving parts from wearing prematurely. One unintended side effect of the federal regulations, which have gradually reduced allowable fuel sulphur to only 15 ppm and lowered aromatics content, has been to reduce the lubricity of petroleum diesel. To address this, the ASTM D975 diesel fuel specification was modified to add a lubricity requirement (a maximum wear scar diameter on the high-frequency reciprocating rig [HFRR] test of 520 microns). Biodiesel can impart adequate lubricity to diesel fuels at blend levels as low as 1%. Before using biodiesel, be sure to check your engine warranty to ensure that higher-level blends of this alternative fuel don’t void or affect it. High-level biodiesel blends can also have a solvency effect in

Biodiesel is an ideal fuel for the transportation industry in our country as it can be used in any diesel engine. Everything from food at the supermarket to the computer that you are using is transport using diesel. According to the U.S. Environmental Protection Agency, using pure biodiesel (B100) instead of conventional diesel reduces these emissions: • Hydrocarbons by more than 60 percent • Carbon monoxide by more than 40 percent • Particulates by more than 40 percent EPA studies also suggest that using biodiesel reduces the numerous toxic substances present in diesel exhaust (including many cancer-causing compounds). Biodiesel also presents fewer health risks during storage and handling. The fuel is 100 percent biodegradable if spilled and has roughly the same toxicity as table salt, making it especially attractive for use in sensitive natural environments. Fact: South Africa consumes about 25-billion litres of fuel a year, of which about 40% or 10-billion litres is diesel. Green Guide 2012

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SURVEY

Legislation, the Driver

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he report’s focus on sustainability and governance for 2011 was not only about carbon emission reduction and environmental awareness. Making the business more sustainable means creating a context in which risk to the successful continuity of the organisation is constantly monitored and mitigated, and that this is done ethically.

Sustainability: The green supply chain

Sustainability: Triple bottom line

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Green Guide 2012

One of the most authoritative annual surveys around is the supplychainforesight survey, commissioned by Barloworld Logistics. In 2012, the survey primarily covered South Africa’s position in Africa, while a dominant theme in 2011 was on sustainability. The survey focuses on benchmarking South Africa’s supply chain performance against international measures and providing a knowledge base for companies to measure and compare their supply chain performance against emerging economy competitors.


SURVEY

Ultimately, sustainability means ensuring the business is successful and profitable in a way that sustains communities that make it up – employees, shareholders, and the wider society in which it operates. The report’s focus is on triple bottom line (TBL, or ‘people, planet, profit’) reporting and is intended to gauge this commitment to sustainability.

Major sustainability governance issues

The extent to which labour legislation drives sustainability is clear, with health and safety as well as community develop- Sustainability: Reduction targets ment and ethics management topping the list of initiatives already implemented. There is reporting, even given it is driven by legislation, strong agreement that legislation is a driver of there is still little awareness and commitment change in the carbon reduction effort, and that to the environmental pillar of the three bottom there is a fair degree of adoption of ‘world class’ lines. Fully 25% of respondents are unaware of green initiatives. Almost half of companies now their company’s reduction targets, and another expect their suppliers to monitor and report on 25% say their company has no set target. their carbon emissions. Barloworld Logistics, Tel: (011) 445-1600/(011) 445-1637 Despite the strong focus on TBL and sustainability

Website: www.barloworld-logistics.com

Sustainability: Governance issues

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Green Guide 2012

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SURVEY

Perceptions on Sustainability The Association for Operations Management, APICS invited more than 9 000 professionals to participate in a survey, which took place from August to September 2011.

A

ccording to the APICS Operations Management Body of Knowledge (OMBOK) Framework, sustainability in operations and supply chain management helps ensure that markets, commerce, technology, and finance advance in ways that benefit economies, societies, ecosystems, and stakeholders in general—or, at a minimum, does no harm—and contributes to a more maintainable and inclusive global economy.

(73 percent), channel partners (34 percent), customers (50 percent), employees (59 percent), or the industry at large (26 percent).

Respondent profile

Respondents indicated that the following roles best describe their jobs titles: senior management (c-level executive vice president, or general manager) (6 percent), department or division management (manager or director) (31 percent), functional management (for example, scheduler, or engineer) (33 percent), owner or president (1 percent), consultant (18 percent), and academic professional (4 percent). Sixty-five percent of respondents said that their organisations have sustainability policies or practices in place, while thirtyfive percent said that there was no sustainability policy or they weren’t sure if such a policy was in place. Approximately 67 percent of respondents indicated that their organisations’ sustainability policies or strategy address people (labour, community, and related stakeholders), while approximately 60 percent of respondents indicated sustainability policies that address the planet (natural capital, raw materials, and ecological processes). Respondents indicated that their primar y sustainability stakeholders are senior management

Sustainability and innvation

Sustainability is becoming an expectation among a wide variety of stakeholders, such as customers, shareholders, and public officials: Sustainability is increasingly a domain of innovation that is reducing cost by reducing demands on resources, while increasing the reuse of existing assets; this innovation impacts planning, processes, capital investing, and strategies, such as lean. At the strategy and tactical level, sustainability helps integrate and align strategic execution decisions, activities, and goals across multiple departments, partners, or supply chains where sustainability has a clear or obvious interest. Where sustainability is par t of corporate philanthropy, it helps develop market awareness and goodwill, showcases product features and benefits in sales and marketing campaigns, and leverages local and global advantages in partner and customer relationship building. APICS, Tel: 1-800-444-2742 or +1-773-867-1777 Email: service@apics.org, www.apics.org

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Green Guide 2012


SURVEY

7th State of Logistics Survey

The 7th State of Logistics survey released last year by the Council for Scientific and Industrial Research (CSIR), Imperial Logistics and Stellenbosch University centred on ‘green’ logistics. This included ‘extra distance’ measurement); deteriorating road quality and benefit-cost analysis; supply chain risk management; the skills issue; and rural logistics. Dr Jan Havenga of Stellenbosch University says, “This amounts to 49% of transport emissions and just under 5% of total emissions for the country. Road freight contributed 20.3 million tons and rail 2.7 million, which translates into R4.6 billion and R0.6 billion in costs to the environment.”

CO2 emissions and carbon tax

Freight transport is estimated to contribute roughly 8% of energy-related CO 2 emissions worldwide. South Africa is the largest CO 2 emitter from fuel combustion in Africa. Making logistics ‘sustainable’ in the longer term will, however, involve more than just cutting carbon emissions, states the survey.

Presenters at the 7th State of Logistics survey launch: David King (scientific editor and events programme director, CSIR Built Environment); Dr Jan Havenga (Stellenbosch University); Hans Ittmann (CSIR Built Environment)

T

otalling R22.7 billion, the majority of the country’s externality costs were caused by road transport. At R10.9 billion, accidents comprised the largest cost component, followed by the impact of emissions at R5.2 billion and that of congestion at R4.5 billion. Notably, 23 million tons of greenhouse gases were emitted due to land freight transport activities.

The transport sector (freight and passenger movement) consumes 27% of South Africa’s total final energy, 78% of its liquid fuels and 1.6% of its electricity. In 2009, 23 million tons of greenhouse gases were emitted in South Africa due to land freight transport activities. This amounts to 49% of transport emissions and just over 5% of total emissions for the country. Road freight contributed 20.3 million tons and rail 2.7 million tons, which translates to R4.6 billion and R0.6 billion in costs to the environment.

Greening

To balance economic growth and social development, taking climate change into account, business has to follow the concept of the triple bottom line, states the survey. This concept advocates a simultaneous concern for economic, ecological and social sustainability in organisational decisionmaking.

Extra distance

‘Extra distance’ is the difference between the distance that vehicles actually ran and the distance that they would have needed to have run under ‘normal, controlled’ circumstances (eg, no changes in volumes of stock to be moved, no excessive congestion or delays).

Total logistics costs as a percentage of GDP for selected countries

The ‘extra distance’ Green Guide 2012

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SURVEY

Fuel costs for logistics given various scenarios

concept is a way of assessing the efficiency or inefficiency of a distribution network, the root causes of blockages within the transportation system and the potential costs and CO 2 emission savings that can be made. ‘Extra distance’ provides the facts and forecasts for supply chain management teams who are willing to achieve consistent improvement. CSIR, Hans Ittmann, Tel: (012) 841-3051 Email: hittmann@csir.co.za

Stop press: The 8th survey will be unveiled 23rd May 2012

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Green Guide 2012


TrenStar

TM

Integrated Logistics Solutions TrenStar offers:

Does your current service provider?

Returnable packaging pool ..............................

Specialised packaging .....................................

Uniquely numbered fleet ..................................

Visibility on usage ...........................................

Delivery on RfID ..............................................

Integration with your current systems ............

Complete history trace per asset number ........

Ageing by site, by area, by location .................

Invoice by unique number throughout supply chain

?

“We are able to track and trace any container under our management from cradle to grave and we have removed all non-recyclable materials from our pool of rental containers. Doing this not only ensures better management of the product and its ultimate disposal, but also allows us to better understand and manage our own, and our clients’ carbon footprint and general impact on the environment.” Tap du Plessis, CEO Trenstar

Head Office (+27 12) 676-3300

www.trenstar.co.za

e-mail: info@trenstar.co.za Green Guide 2012

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Green Guide 2012