Text/ editorial staff Connekt and Het Beyschrift Design SD Communicatie, Rotterdam Printed by Koninklijke De Swart, The Hague
2nd revised edition, June 2010
Disclaimer This publication is a result of the close collaboration with HST Group, InterfaceFLOR, CRH Roofing Materials BV, Den Hartog Logistics and TNT Express. This guide was developed through the Connekt Sustainable Logistics Programme. The copyrights of this publication are held by Connekt. No part of this publication may be reproduced or published without first obtaining written permission from Connekt. The opinions of the authors do not necessarily represent the opinions held by Connekt. No rights can be derived from any of the statements made in this publication.
Co2 in perspective a guide to calculating CO2 and other emissions of logistics
Foreword Sustainability, climate change, reducing CO2 emissions: these are terms we hear around us all the time in this â€˜greenâ€™ era we are living in. Governments and companies have set themselves ambitious goals for reducing pollutants and even at a European level there are very strict requirements. Sustainability is becoming increasingly important for companies. Shippers and hauliers cannot and should not fall behind. Transportation companies, logistics companies and shippers will include the emissions of a logistic process in their decision-making. However, the methods and data for calculating and monitoring emissions vary greatly. This makes it very difficult, if not impossible, to compare the relevant data and reports. Consequently there is a growing need for 4
standardisation of the calculation methods. To meet this need the Connekt Sustainable Logistics Programme has developed a â€˜Guide for the calculation of emissions regarding logistic activitiesâ€™, in the Netherlands. The aim of the guide is twofold: To offer a practical aid that supports companies in their decision-making by giving them a way to calculate the relevant emissions correctly; and to develop a uniform, widely-supported method for calculating emissions. In short: This guide should make it easier for companies to calculate their emissions, and thus to help them understand the emissions regarding logistic activities. What we would like to emphasize here is that this is a guide and not a standard. This guide is publicly accessible and the set-up is transparent. Furthermore, the guide has been set up in line with the international Greenhouse Gas Protocol and ties in with European initiatives of government, and businesses. This guide not only provides information on emissions, but it can be seen as an initiative for a standardized approach towards the calculation of emissions in the Netherlands. The calculation of emissions is a field that is still evolving, and in time we will have a lot more knowledge at our disposal. Also we can expect European agreements to be issued in this area. The 5
current guide will therefore, if necessary, be updated periodically. In this booklet the Connekt Sustainable Logistics Programme provides a concise reproduction of the guide. The first part gives a step-by-step explanation of all the aspects involved in calculating emissions and what considerations are important. This is followed by a number of case studies, which consist of interviews with companies that have already calculated their emissions or are busy doing so. How they have approached this issue, what challenges they faced and also: what are they going to do after their calculations? The aim of the Connekt Sustainable Logistics Programme is to bring together a group of 250 front runners in 2012, who all have achieved a 20 percent reduction of CO2 in their logistics and who have simultaneously managed to increase their profitability. See also www.sustainablelogistics.nl.
Contents Introduction 1 A step-by-step calculation of emissions 2 Practical experiences in calculating emissions
8 12 24
Introduction It is a well-known fact that the emission of greenhouse gasses contributes to climate change. On top of that the emission of air pollutants â€“ such as particulate matter and nitrogen oxides â€“ are harmful to the health of human beings. This is why more and more companies are eager to include sustainability in their activities. In all kinds of supply chains, companies are searching for ways to reduce the emission of pollutants. Apart from a positive contribution to the environment, a sustainable policy will also yield a competitive advantage. Within this context it is essential to calculate and report the emissions: only through calculations is it possible to chart the scale of the emissions and the effects of measures for improvement. Too often companies view the calculation of their emissions as a huge obstacle. At the moment there is 10
no standard for these calculations, and certainly not concerning logistical activities. So where would one start? Luckily there are several ‘front runners’, such as the companies that have committed themselves to the aims of the Sustainable Logistics Programme programme to reduce their CO2 emissions by at least 20 percent in 2012 and simultaneously increase their profitability. These companies can be found among the network of shippers, logistics companies, hauliers and municipalities in the Netherlands. Other companies will be able to learn from their efforts to achieve sustainable logistics and the way they calculate emissions. Hopefully, through the positive experiences of the front runners, these companies will also feel inspired to join in and make the effort. Measuring CO2 emissions is also something governments aspire to. They have set very ambitious aims for reducing the emission of pollutants. For example the European Commission wants to reduce the emission of CO2 by at least 20 percent between 1999 and 2020. Within the framework of the European emissions trading system for CO2 and the NEC1 ceilings for air pollutants, certain industries are already obliged to monitor their emissions. The requirements regarding the air quality and the emission of pollutants are also becoming increasingly strict.
To adhere to all these ambitions and rules, it is necessary to be able to calculate the emissions. It is important for companies to develop a clear strategy to reduce and avoid hazardous emissions. And equally important is the fact that this strategy and the calculations are set up in the same way and are reciprocally comparable. This requires two things: • A guide and an initiative to come to common agreements on the calculation method of emissions in a logistical environment • Agreements to enable the communication concerning emissions between different partners in logistic chains. The national (Netherlands) government and trade and industry agreed on the following targets in the sector agreement ‘Mobility, logistics and infrastructure 2008-2020’: “…the development of an objective and broadly supported model, that makes it possible to quantify and report on the achieved reduction of CO2 emissions.” This guide not only includes CO2 but also other relevant emissions. Parallel to this guide, the CO2 yardstick and the Emission Scan Logistics Model have been developed. The CO2 yardstick provides hauliers and 12
logistics companies with the option to calculate the annual CO2 emissions produced by their modes of transport and to compare this data with colleague hauliers. The Emission Scan Logistics Model is a multi-purpose calculation model that allows shippers and hauliers to calculate the CO2 and other emissions caused by their logistical activities and flows of goods. The Emission Scan Logistics Model and the Guide for the calculation of emissions tie in with each other. An international working group is developing a European standard for the calculation and reporting of emissions from transportation and logistical activities. This is being carried out within the framework of the CEN (European Committee for Standardization). The Sustainable Logistics Programme is part of this study group. The standard is expected to be ready in 2013.
National Emission Ceilings. Guideline drawn up in 2001 by the European Parliament and the Council of Europe concerning national emission ceilings for trans-boundary air pollution. 1
A step-by-step calculation of emissions Step-by-step plan Before you are able to calculate the emissions of logistical activities, there are a number of choices that have to be made first. This booklet uses the steps below, as in the guide. You will find a concise description of the different steps opposite. For more detailed information please visit the website that has been specially set up for the guide: www.co2inperspective.nl.
Step 1: Aims of the calculation First of all it is important to determine the aim of the calculation of – and if required the report on – emissions. These aims determine the approach and the level of detail of the calculations. Companies may have very different reasons for calculating the emissions of their logistical activities: • They wish to report on their sustainability policy • They want to map the environmental effects of strategic and operational scenarios • They want to know what kind of environmental effects changes in the logistical activities have • They want insight into the eco-efficiency of environmental measures • They wish to issue data on emissions to customers and other parties. Companies can specify what their emission values are in annual reports, messages to customers or other reports. They can also describe the efforts they have made to reduce emissions. Reporting on emissions can have significant advantages for a company; such as a ‘green’ image, a commercially interesting positioning towards their investors, and motivated staff.
The future Voluntary or compulsory registration of emissions will become increasingly popular in the future. Submitting details of emissions to customers and suppliers will also grow exponentially. See the Green Order initiative. -Reasons? More and more companies want insight into their suppliers’ emissions. And some transportation companies offer their customers the option to transport their goods CO2 neutrally.
Step 2: Determining the activities Shippers often (part of) their logistics to other outsource parties. Even transportation companies outsource some of their activities. This is why more and more companies want insight into their own emissions and the emissions of other parties as well. So in this second step the choice of emission calculation is not only about one’s own logistical activities, but also about third party activities. In the following situations it is advisable to include the emissions of third parties in the calculations, if: • The aim of the calculation is to obtain insight into the options for reducing emissions in logistic chains • Emissions are attributed to products • The aim of the calculation is to make a comparison between the options of a company carrying out its own activities or outsourcing them. 17
Corporate Standard Sometimes it is not clear whether an activity is to be considered one’s own activity, or the activity of a third party. For example in the case of ‘joint ventures’ or with partially outsourced logistical operations. The Corporate Standard by Greenhouse Gas protocols may offer some clarity in these instances. Please visit www.ghgprotocol.org/standards/corporate-standard.
Step 3: Defining the activities In the third step a company decides which logistical activities are to be included in the calculation. Are all the emissions of all logistical activities included, or only the most important emission sources? The answer to this question depends on the aim of the calculation. Issues such as empty trips, detours and round trips must always be included in the calculation. To be able to compare the emissions of logistical activities with each other, it would be advisable to make a clear distinction between logistically related and supporting activities. The supporting activities – such as maintenance, administration and commuter traffic – are not included in the calculation of emissions of logistical activities. Note: companies often choose to map all the emissions involved.
Once it has been decided that third party emissions are also relevant, the next choice is to decide up to what level within the supply chain the company intends on mapping the activities and associated emissions. For example: • The calculation can be limited to the company’s direct suppliers • Some companies take it a step further and want insight into the emissions of the suppliers of their suppliers. • ‘Total life cycle’ emissions of products are calculations from the source to the end user, including return flows, waste processing and recycling.
Logistical activities • Transportation is about all goods movements. • Trans-shipments refer to activities where goods are transferred from one mode of transportation to another, for example the cranes in a dock. • Handling refers to movements and internal transportation of goods in a certain location, such as distribution centres and transfer terminals. An example of this is the internal movement of goods in a distribution centre. • Warehousing refers to stocks and emissions caused by storage (for example the use of energy for temperature controlled storage of cooled or frozen goods). 19
Step 4: Choice of emissions After it has been decided which activities are going to be included in the calculation, step 4 deals with the decision of which emissions are going to be calculated. The most important distinction here is between greenhouse gasses (for transportation, especially CO2) and polluting emissions (NOx, SO2, PM10). The emission of CO2 depends in a one-to-one ratio of the fuel consumption and on the carbon content of the fuel type (petrol, diesel, LPG, kerosene, etc.). Reducing the use of energy and the fuel consumption goes hand in hand with reducing the CO2 emissions. Because CO2 has a longer life span â€“ more than sixty years! â€“ it disperses over the entire atmosphere. So the climate effects are not necessarily related to the area where the emissions take place. As opposed to greenhouse gases, the pollutants have a localised effect: the closer the emission is to human beings, the more hazardous the effect. The most important effects that occur are those related to health (such as respiratory diseases, cardiovascular diseases and cancer) and damage to agriculture, nature and buildings. Step 5: Specifying the emissions Make it clear as a company which parts you are including in the calculation of your emissions! 20
The emissions belonging to scope 3E and scope 3P must always be included in the calculation of emissions. The inchision of scope 3E enables a satisfactory comparison between the effects of the different fuels. The production of biofuels result in different emission quantities than the production of diesel oil. Scope 3P must be included because the emissions from subcontractors sometimes constitute a substantial part of the total emissions as a result of transportation and logistics. The total emissions of the business operations, is the sum of the different parts:
PM10 PFC PFC CS
Direct emissions Indirect emissionss Generang purchased electricity (scope 2)
Companyâ€™s own operaons (scope 1)
Indirect irect emissions Extracon, producon and transportaon of fuel (scope 3E)
Emissions from acvies carried out by third pares (scope 3P)
Step 6: Calculating emissions In Step 6 you have reached the actual calculation of the emissions from logistical activities. This step explains the calculation methodology for the different modes of transportation: for scopes 1, 2 and 3 and oneâ€™s own and outsourced transportation. Each combination of these aspects needs its own specific approach. For more detailed information about the calculations for outsourced transportation and for the different modes of transportation, please visit: www.co2inperspective.nl.
Companyâ€™s own logisc acvies es
or Logisc acvies by third pares
Logisc services for one customer (dedicated)
Ca Calculaon C of emissions based on o an inventory of logisc means and the associated m emissions
or Logisc services for several pares
Allocaon A on of emis emissions to the different pares according to a specific formula
or Calculaon of emissions based on average emissions per tonne-kilometre
Figuur 8.1 Hoe dit hoofdstuk te gebruiken
Step 7: Applying the results The results of the emission calculation can be applied to a wide range of purposes. It can be part of the
companyâ€™s policy to report on the emissions, for example in the annual report or in the CSR policy plan. Then there is also the option to compare emissions over time. And also, emissions can be specifically assigned to certain customers. The results can influence the decision-making in a company. Often it is advisable to first carry out a so-called zero measurement. Then the improvement measures are drawn up and carried out. These may comprise of what particular mode to choose, the choice of suppliers and the choice of a particular fuel. After a year there can be an assessment as to whether the improvement actions have actually led to a reduction in the emissions. When a company applies and reports the results, it is of great importance that it is clearly stated which choices were made when calculating the emissions (see scopes 1, 2, 3E and 3P). Be transparant and declare and explain the choices you have made.
Practical experiences in calculating emissions Changing customer behaviour Henk Pieffers (operations manager) and Willard Harbers (project manager ICT) both work for the HST Group. Sustainability of the logistical processes has been an important theme for HST for some time now. The company considers it to be very important that these are concrete solutions that contribute to sustainability. One of these solutions is the Environmental Performance Indicator.
Direct cause and aims “We have a ‘booking portal’ where customers can book online transportation orders. It was time for a new version of the portal, and we wanted to include the calculation of emissions in new the development: a socalled Environmental Performance Indicator. We wanted that anyone booking an order could see immediately on the portal what the environmental consequences were of that booking. We had previously already taken several measures to reduce the CO2 emissions, but those measures were initially internally oriented: measuring the fuel consumption of our drivers, training courses in driving and a test with LPG diesel installations. Because intermodal transport is becoming increasingly popular, we had also started experimenting with this. But in the end the customer decides what you do. It’s the customer who says: I want you to deliver it early tomorrow morning at such and such a location. This is how we decided to involve the customer further down the chain. We wanted to hone our customers’ awareness in these matters. It is important for a customer to see immediately on the portal what CO2 values are linked to their choices. For example what a time limit does to the values, or a required lead time. 25
Because we want to bring about a change in their behaviour, we have focused solely on CO2. The effect of CO2 on greenhouse gases is well known to the general public and does not need any further explanation.” Scope “HST TransMission – one of our business units – is part of the TransMission network. This is an elaborate network for distribution within the Benelux. In the Netherlands we are one of twelve partners of this network. Each partner has their own delivery area. The delivery of shipments outside our own depot is done by one of our partners or else we deploy our own vehicles. We choose our own vehicles in the event of large shipments, time slots or fragile goods. We have mapped all our routes: only that way were we able to say something about the emissions.” Challenges “When you start making this kind of calculation, initially you will keep on seeing problems. There is such an enormous jumble of data. In the end we did manage to sort out the jumble. One important thing we learned was to start where you can make most profits. For us as hauliers, most emissions are a result of the quantities of diesel we are burning. This is why we wanted to start by focusing on that, before dealing with issues such as gas and electricity consumption.
The second lesson we learned was not to get bogged down by too many details. It would only result in even more complications, so you hardly dare even start. It is very important to decide on where you draw the line: it is not really exciting to decide whether a digit should be rounded to three decimal places. You can keep on refining your calculations to achieve an even purer number, but the question is: does it really add value? We thought it would be more important to show customers what the effect is of a particular action. It was an enormous job and all in all it took us almost two years to complete. Quite an investment, but what we have now is brilliant. We have developed something that is really useful and our customers are very excited about it, which makes us very happy.â€? What next? â€œWe first ran a pilot on the web portal. The pilot has now been favourably completed and the web portal will be rolled out to our other customers. The portal also has a simulation option, so that customers can see what the results are for the CO2 emissions of other choices they make. The good thing is that costs and CO2 emissions go hand in hand: if a customer changes the booking of their 16x1 pallet into 8x2 pallets, then both the CO2 emissions and the costs are reduced; a clear case of a win-win situation as far as we can see. Also the data is 27
processed into our regular management reports, which then shows the trends.”
Performance above price Mark Haverlach is the European distribution manager for InterfaceFLOR. This company is a world leader in modular floor covering, otherwise known as carpet tiles. Since 1994 InterfaceFLOR has been actively aware of sustainability. On the logistics side, the company works hard on sustainable relationships with hauliers. A lot of attention is paid to explaining to hauliers about the how and why of a sustainable strategy.
Direct cause and aims “The direct cause for our emission calculations can be traced to our corporate objective of ‘Mission Zero’: the aim is for our operations to be fully sustainable by 2020 and better still, to make a contribution toward environmental recovery. Ultimately in 2020 we do not want to produce any more emissions. To achieve this goal we have defined several fronts. One is to have our goods transported as efficiently as possible – emission free. This means that you have to start measuring your emissions: how high are they now and what can we do to reduce them?” 28
Scope “We don’t have our own vehicles, so our calculations are always about the emissions of our partners. We did some research in collaboration with CE Delft. CE Delft is an independent research and consultancy organisation in The Netherlands, specialised in developing innovative solutions for environmental problems. On the one hand our research focused on ‘tank-to-wheel’ and on the other on ‘well-to-tank’. So we calculated the total of emissions from ‘well-to-wheel’, of CO2 and NOx, SO2 and particulate matter.” Challenges “We don’t have our own vehicles and our products are transported via groupage. The question you must ask yourself is then: how are you going to calculate the transport-related emissions for InterfaceFLOR? Or: how can a haulier calculate one vehicle’s emissions for each of the customers he is transporting for? This is a very complex matter, and one the transportation market has hardly studied. For our calculations we depended completely on the data the hauliers were supplying us with. We compiled a questionnaire in collaboration with CE Delft and sent it to our hauliers. In order to complete the questionnaire they had to chart their entire fleet. We wanted the details by vehicle class, and the European standards 29
by class. We wanted to know the load factor and the ‘detouring’, everything you can think of. It was a very laborious process. Very often the required knowledge was either not present or not available. Especially for companies that outsource a lot of their haulage, this proved very difficult, if not impossible. However, we did attach consequences: companies that were not able to submit the required data would not be considered as a partner for InterfaceFLOR in the future. We even had to let several parties go. But for us this data is essential: the moment we are not able to calculate the emissions, we will never become a sustainable organisation and we will never be able to realise our ‘Mission Zero’.” What next? “We completed our calculations at the beginning of the year. We are going to use the emission data to achieve our ‘Mission Zero’. On top of that we are going to integrate the data into contracts. In the meantime we have selected a number of haulage companies in Europe that do meet our requirements. We will be drawing up ‘performance contracts’ with these companies. One of the KPIs in these contracts concerns the transportation related emissions. This is a KPI we will also be measuring. Together with these parties we will work towards year-on-year improvements. 30
At the moment we are busy implementing a system that submits the emission details on a daily basis. To us it is important that you can see the KPI score at any time of the day. The system will be operational in the third quarter of this year; after that we are planning to link improvement programmes to the system. Also we want to share the emission data and the knowledge we have acquired with other parties. Many companies are busy calculating their emissions, but they all have their personal approach. We are looking to share knowledge and set a standard. In the end that is best for everyone, and InterfaceFLOR would like to be part of that.”
The CO2 emission data that car manufacturers publish in grams per kilometre always refers to the so-called ‘tank-to-wheel’ figures, or the emissions the car actually produces. The emissions from the preceding process, which is the phase in which the production of fossil fuels takes place, is not included. This so-called ‘well-to-tank’ part is just as much responsible for CO2 emissions. With this part omitted, you are not given an honest picture of the emissions throughout the chain, from ‘well-to-wheel’. And a comparison with alternative fuels. Well-to-Wheel = Well-to-Tank + Tank-to-Wheel. 31
Measuring is knowing Peter Stitselaar is supply chain manager at CRH Roofing Materials BV, a wholesale in construction materials. He is responsible for the complete flow of goods from supplier to customer from the three distribution centres in the country. He is also responsible for stock management, planning and purchasing processes. Why did this shipping company decide to start calculating emissions?
Direct cause and aims “First of all as a company we feel we have a social responsibility for the generations that come after us. We try to implement this through our Climate Development Programme (Klimaat Ontwikkel Programma). This programme specifies the course for a strategic switch which will turn our company into a genuinely sustainable company, and for our company to put products on the market such as our ‘Royal Groendaken’. There is a clear emphasis on the sustainable distribution in the chain from supplier to customer. On top of that there is a business advantage to sustainable enterprising. This refers mostly to the new government policy that has been introduced in 2010: sustainable purchasing. As a wholesale in construction materials – 32
especially roofing – this policy directly affects us. Our concrete aim is to realise a twenty percent reduction in CO2 emissions compared to 2009 by the end of 2012. This percentage refers specifically to the outgoing flow of goods to our customers. On the incoming side of the flow of goods we want a twenty percent reduction in emissions in 2015. The calculation of the emissions is part of our policy plan which we wrote for the Sustainable Logistics Programme.” Scope “We are a shipping company ourselves and as such we measure our hauliers’ emissions. Naturally we share the results of our calculations with them. The calculation of our emissions comprises the total chain from supplier up to the customer. We measure the emissions from our suppliers to our distribution centres. We also calculate the emissions in the outgoing distribution flows, from our distribution centres to our customers. Our calculations are not limited to CO2, but we also measure NOx, PM, CO and HC. On the one hand it was reasonably simple to include the other four substances in our calculations, together with the CO2 emissions. By including the other substances, we feel we are anticipating future developments. We expect that the relatively unilateral attention for CO2 will change in the 33
future and that the emphasis will be on the emission of other hazardous substances. We have constructed our model in such a way that we are still one step ahead.” Challenges “We needed to do some research before we could know what would be the best measuring model for our organisation. Not a lot is known about calculating emissions, and it has not yet been standardised. So where would one start? In the end we decided to contact DAF Nederland. Our hauliers mostly use this make of truck. We asked DAF Nederland what information was already available about the vehicles we have in our fleet. We used these details as a starting point and compared them to the Emission Scan of the Sustainable Logistics programme. The models appeared to match op beautifully, which confirmed that we were looking in the right direction. To develop the model and carry out the zero measurement took us four months. The advantage was that we were able to collaborate with a graduate, who was able to work on the project full time. But there is a lot to research and it is a good thing that there are ‘experts’ to help you on your way. I would advise companies that want to calculate their emissions but do not know where to start, to take a look at the Connekt Sustainable Logistics programme. By now this programme has all the necessary experience from many different companies.” 34
What next? â€œIn 2009 we completed our measuring model and the zero measurement. Starting from the zero measurement we will continue to achieve our objectives. We have drawn improvement plans, such as for example driving courses for drivers. We have agreed compelling requirements in the transportation agreements we have made with our hauliers to deploy the cleanest vehicles in the future. This means the fleet will be replaced. At the moment we are also looking to further reduce our unloaded kilometres. By applying the KPIs we have decided on, we can check whether the improvement plans we have drawn up actually lead to improvements. Naturally we want to know if we are on course to reach the twenty percent reduction. I am convinced that we will succeed.â€?
Just grab that profit! Maayke van Noort is a SHEQ manager at Den Hartog Logistics, a large logistics company. The company is very interested in sustainability. Thus the calculation of emissions was a logical step within her operational duties.
Direct cause and aims “Of course the transport sector is one of the branches responsible for the CO2 emissions. We are a logistics company that takes the environmental aspects seriously. For example we actively cooperate with the ‘Rotterdam Climate Initiative’ project. This is a climate programme for the Rotterdam region, with the aim to achieve a fifty percent reduction of CO2 emissions by 2025, compared to 1990. Because the environment is so high on our agenda, we have drawn up a number of points for improvement and implemented these points to reduce emissions. We then wanted an objective measurement of our emissions, so that we could check if our actions for improvement actually resulted in a reduction of hazardous substances.” Scope “The calculation of our emissions consists of two parts. On the one hand we have calculated our own fleet’s emissions. And then we have tracked what the emis sions of intermodal transport are. From a practical point of view we focused on our direct suppliers. Initially we only calculated the CO2 emissions using the CO2 yardstick for hauliers from KNV, TLN, EVO (Dutch haulier associations) and the Sustainable Logistics Programme. This data has also been included in the annual report. This 36
year we have started with the Emission Scan Logistics Model from the Sustainable Logistics Programme. For our own internal measurements we have laid the foundations for measuring NOx, SO2 and PM10.â€? Challenges â€œThe calculations for our own fleet were fairly easy. This is because there was already so much data available. For example, we have a fairly powerful ICT system and we have board computers that allow us to accumulate enormous quantities of data, so that process was already up and running. However, when we purchase transportation it is a completely different story and it becomes a lot more complicated. For example, it is difficult to determine the exact number of transported kilometres, or the CO2 emissions of a ferry. Some companies are able to supply the data, others are not. Based on the data that is available to us, we have made some estimates. But it still is a difficult issue. So far we have not attached any consequences to this state of affairs. This year we intend to focus more on our suppliers submitting emission data. What we have learned most from this entire process is that the collection of data from transportation we have purchased is a complex, albeit important, component. As a result we have modified our ICT 37
system so it has become easier to enter the data. In all, the following questions are very important: What are your process steps, what is your consumption for those steps, what exactly are the biggest energy guzzlers and how best to deal with it?” What next? “We are taking several measures to reduce our emissions, especially within our own fleet. Examples are fuel consumption and tyre pressure. Also we have invested heavily in more economical trucks. Thanks to the results of our calculations we can now measure whether these improvement actions are actually effective and to what extent they contribute to a reduction of CO2 emissions. On top of that the measurement data provides us with the opportunity to make a comparison between road transport and intermodal transport. If you are talking about CO2 emissions then in many cases intermodal transport will prove to be much more favourable. We want to measure and know more about the exact ratios and results of this. My advice to companies that want to start calculating their emissions? Make sure that you start somewhere that yields most advantages. For road transport – which we have a lot of experience with – there is a lot to be gained from changing driving behaviour. Investing in 38
board computers for example is money well spent. These computers measure a wide range of information and allow for in-depth analyses.”
Investing in behaviour Maurits Thijssen is SHE & Audits Benelux manager for TNT Express. TNT’s premise is: ‘if we are part of the CO2 problem, then we should also contribute to the solution.’ According to Thijssen this solution lies for a large part in staff behaviour.
Direct cause and aims “We are a haulier company and research has shown that haulier companies are responsible for 18 percent of the world’s CO2 emissions. We feel we need to take responsibility for the world we live in. On top of that we expect that hauliers that do not meet certain environmental requirements in the future will not be able to continue working. Not only because they have lost out through competition, but above all because they will not be allowed to work according to the government’s rules. Just think of the environmental zones. If we wish to maintain our position as a leading transportation company, we will need to do something 39
about our CO2 emissions. And in that case the following applies: You can only improve if you first measure. Only if you know exactly where you stand, can you formulate an objective and at the end of the process you can determine whether you have improved.” Scope “We measure our own CO2 emissions, both from our buildings and from our entire fleet. Furthermore, we feel that we are also responsible for the emissions from our subcontractors. Calculating those emissions is complicated, if not impossible. Not all subcontractors are able to supply the necessary data. Also it is often very hard to make a distinction: what exactly is the subcontractor doing for us and what is being done for other customers? So we make estimates, based on the kilometres driven and an estimated consumption per kilometre. One very important point that needs mentioning in this context is the reliability of the data. That is as important as the precision of the data. We participate in the United Nations ‘Global Reporting Initiative’. This means that all CO2 values that we submit must be verifiably reliable. So our estimates are not totally unfounded. For a transportation company CO2 is the most important negative influence the company has on our world. If 40
we can include other substances while improving our environmental performance, we will certainly do so. But the calculations are only for CO2.” Challenges “Essentially it is very easy to calculate the absolute CO2 values. It only becomes complicated if you also want to measure the relative values, measured in a certain unit. For vehicles you could think of the emissions per kilometre travelled. It is important to determine in a reliable manner exactly how many kilometres your vehicles have travelled. Of course you could always find this data on the mileage counter, but we have almost 700 vehicles in the Benelux. It would be quite a job to check all the mileage counters. We found it very difficult to locate one good source for determining the number of kilometres travelled. And the ultimate solution lay in a fuel card. All our vehicles have been leased and have a fuel card. When filling up with fuel the last four digits of the mileage counter have to be entered. We have explicitly emphasised a correct input of those digits.” What next? “We have invested in calculations and techniques. Now we need to look at our people: they will have to start changing their behaviour. I am convinced that in the end 41
you will gain most from a change of behaviour. You can endlessly invest in techniques, but what determines the outcome in the end is how your people use these techniques. Changing behaviour is a process that requires a lot of endurance and patience. People must realise you mean business. This means that we need to keep bringing it to peopleâ€™s attention, which is what we do through among other things the TNT-wide Planet Me programme.â€?
Planet Me A few years ago Peter Bakker, general manager of TNT, set himself a bold ambition: he wanted TNT to be the first listed CO2 neutral transportation company in the world. The organisation committed itself to this ambition and translated it into the Planet Me programme. TNT has also set itself a goal to reduce theCO2 emissions by 45% in 2020 compared to 2007. Planet Me consists of three areas of special interest: • Count Carbon – measuring and monitoring the CO2 performance • Code Orange – improving the CO2 efficiency in operational activities • Choose Orange – encouraging staff to work and live sustainably, both at work and at home. For more information about Planet Me, visit http://planetme.tnt.com.
The Sustainable Logistics Programme wants to make a concrete and pragmatic contribution to supporting sustainability in the logistics chain. We endeavour to achieve this through cost-effectiveness and reducing CO2 emissions, in equal measure. The programme supports 250 leading companies. These market leaders are companies that are willing to subscribe to the aims as set out in this programme; i.e. to reduce their CO2 emissions with 20% by 2012 compared to 2007 and to increase profitability. In achieving this goal they will be presented with the Lean and Green award. The programme connects companies and supports them in formulating and integrating sustainability objectives for their logistic operations. For further information on the calculation of CO2 in logistics please visit our website: www.sustainablelogistics.nl or mail to email@example.com.
Connekt Kluyverweg 6 2629 HT Delft, The Netherlands PO Box 48 2600 AA Delft, The Netherlands T +31 15 251 65 65 F +31 15 251 65 99 firstname.lastname@example.org www.connekt.nl
CO2 in perspective