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GoGreen Program – Overview Carbon Measurement, Reduction & Offsetting. Location, Logistikk nettverk Buskerud. DEUTSCHE POST DHL IN NUMBERS. Our reach in numbers.
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GoGreen Program – Overview Carbon Measurement, Reduction & Offsetting Location, Logistikk nettverk Buskerud
DEUTSCHE POST DHL IN NUMBERS Our reach in numbers To operate our fleet of 120,000 vehicles and trailers, 136 aircraft and facilities in 220 countries and territories each year we consume1: gasoline diesel kerosene energy consumption 35 mn liters 481 mn liters 1,315 mn liters 3,481 mn kWh We are a leading logistics company with a worldwide presence • We have a truly global operation, with locations in • We operate a network with 120,000 220 different countries and territories destinations worldwide • We employ about • We manage more than 500,000 1million • employees, and are one of the top ten biggest employers worldwide • customer interactions every hour Source: DPDHL; 1) Status 2009 of scope 1 and 2 as defined in Greenhouse Gas Protocol
DP DHL’S COMMITMENT TO CLIMATE PROTECTION (2/2) We have committed to improving our CO2 efficiency by 30% by the year 2020 Our Industry Our Goals Our Program • The transport sector… • …has a share of 14 percent in global carbon emissions • …plays an important role in combating climate change • …is faced with high awareness of climate protection issues by policy makers and customers • Improving the carbon efficiency of DP DHL andits business partners • Intermediate step: improving own carbon efficiency • 30 % by 2020 • The Deutsche Post DHL climate protection program… • …is currently being rolled out in all business units worldwide • …focuses on fleet renewal, energy efficiency, new technologies, employee engagement and the involvement of our business partners and customers • 10 % by 2012 Source: DPDHL
OUR GREEN HOUSE Leveraging the potential of DPDHL, GoGreen improves CO2 efficiency and sets leading-edge standards in green logistics Providetransparency Improve efficiency Generate value Demonstrateleadership I II IV V • Enhance carbon accounting & controlling on Group, management, customer and product level1) • Measure environmental data (non-carbon) • Prepare external reporting (DPDHL CR Report) • Expedite Group wide carbon efficiency best practice sharing • Drive industry cooperation and investments on innovative green technologies • Coordinate environmental management systems • Support transfer of customer requirements into Group wide aligned, innovative and profitable products and services • Conduct carbon credit management for offsetting • Develop and conduct sales support measures • Position DPDHL as leader in CO2 efficient logistics through standard setting and external events • Monitor policy/regulations and competitors to derive action needs • Define positions on crucial environmental topics Mobilizeemployees • Raise awareness for GoGreen and make the change happen through employee engagement • Enforce integration of GoGreen into business decisions III Source: DPDHL
GOGREEN PROGRAM: MAIN LEVERS AND MEASURES Fleet Optimization • Gradually renew own air and ground fleet • Count on a partial shift from air to ocean and road Innovative Technology • Raise the efficiency of own fleet and offer resource-saving solutions to customers • Develop highly innovative products based on future logistics trends Changing Behavior • Raise awareness and involve employees • Support employees in leading an environmental-friendly life both at work and at home Energy Efficiency • Use of regenerative energy in buildings and facilities • Sustainable construction methods • Use of modern technology such as solar panels and combined heat and power Sharing Responsibility • Offer customers climate-friendly logistics solution • Request more transparency in regard to CO2 emissions from subcontractors • Encourage subcontractors to reduce their own emissions What sets us apart from others? DP DHL is the first logistics company to communicate specific CO2 targets DP DHL is the first logistics company that has bundled its innovation activities to develop sustainable solutions for the industry DP DHL is the first logistics company that offers green products and services and has set up a certified carbon management DP DHL is the first logistics company to set a concrete CO2 efficiency target Source: DPDHL
INCREASING CO2 EFFICIENCY Network Vehicles Real Estate Different abatement levers are under investigation to detect efficiency potentials • Biogas-/Biodiesel/ Fossil gas/Vegetable Oil vehicles • Hybrid Trucks • Refleeting aviation • Teardrop trailer • Environmental friendly company cars • Innovative energy concept • Efficient lighting and heating systems • Photovoltaic, solar panels, change of energy mix, etc. • Consolidation points such as Packstation • Network & route optimization • Modal shift, e.g. air to road • Load factor/ capacity optimization • Supplier Management Source: DPDHL
CO2 Costs INVOLVING OUR EMPLOYEES • 41 GoGreen Dialog Maps (brainstorming workshops) were run in all stations • Ongoing awareness and energy saving measures (e.g. Green Choice rulebook, monitoring consumption) • All 650 employees in 26 branches were involved • DGF Italy’s “Green Choice” initiative increased employee awareness, reduced resource consumption and saved costs Impact ~10.000 kg CO2 saved per month through energy and fuel saving measures ~10.000€ saved per month through reduced energy, paper and stationary 9% increase in green awareness to 2008 (EOS 2009: 75%; 2008: 66%)1) Awareness Source: DGFF Green Strategy; 1) EOS questions were slightly different in 2008 and 2009: 2008 “My company is making an honest effort to be a more environmentally-friendly company.” 2009: ”In my immediate team, every individual takes measures to save energy in their workplace (electricity, gas, fuel, travel, paper, etc).”
CO2 INCREASING BUILDING EFFICIENCY Eco-friendly buildings are an important step to saving resources and emissions. One example is our new environmentally-friendly 35.000 m2 logistics facility in Pozzuolo-Martesan, Italy Features • Special isolation for the concrete panels for wall and roof • Special pane of glass for windows and doors • Intelligent light systems • Solar panels for hot water production • Intelligent heating system • Intelligent cooling system Impact 40% Reduction of emissions • Source: DGF/Freight Green Strategy; the logistics center is expected to be completed end of 2011 and operations to begin on January 1, 2012.
DHL GLOBAL FORWARDING’s GREEN PORTFOLIO Transparency reveals CO2 reduction potentials In addition, we offer a convenient way for customers to offset CO2 emissions • What we can offer… • Baseline for carbon emissions • CO2 Transparency and Visibility within supply chain triggers CO2 reduction initiatives • Carbon calculation along transparent, public standards gives confidence in figures • Customer can focus on core business while we are taking care of • purchasing • managing • certifying credits • DHL Global Forwarding calculates the transport related CO2 creates a customer individual report. • The calculation is based on the global GHG1)protocol as well as the WEF2) Guideline for Consignment Level Carbon Reporting CO2 Report • CO2 Offsetting is an all-inclusive service with an offsetting of CO2 emissions based on the emission figures as stated by the CO2 report. • The service includes: • - Issuance of annual certificate for public use • - Annual certification by third party – SGS CO2 Offsetting incl. certification Source: 1) Greenhouse Gas Protocol 2) World Economic Forum
CARBON FOOTPRINT CALCULATION Carbon calculation is a new science based on a defined data set • Each transportation is divided into legs ►Each leg of the transport is calculated • Carbon emissions are derived based on real production data • For each leg the transport mode is identified • Relevant emission parameters are applied for each leg • CO2 emissions from the handling activity between each leg are added to the leg Shipment Leg 1 Leg 2 Leg 3 Leg 4 • Vehicle 1 • Vehicle 3 Shipm. 2 Shipm. 3 Shipm. 1 Shipm. 1 • Vessel 1 • Aircraft 1 Shipm. 1 Shipm. 2 Shipm. 1 Shipm. 2 • Vehicle 4 • Vehicle 2 Shipm. 3 Shipm. 3 Shipm. 3 Shipm. 2 Pickup Van Vessel Aircraft Delivery Van Source: DPDHL Carbon Management
AVERAGE FIGURES EMISSION FACTORS How far can you go with a “carbon credit” of 1 ton CO2? CO2 Emissions Direct Emission Factors 390 – 1,800 g CO2/TKM 1 liter Kerosene: ~2.52 kg CO2 1 liter Diesel: ~2.68 kg CO2 32 – 380 g CO2/TKM 1 liter HFO1): ~2. 68 kg CO2 13 – 40 g CO2/TKM 0.1 – 60 g CO2/TKM 1 kwh Electricity:2) ~0.01 - 0.9 kg CO2 Transport Distance emitting 1 Ton of CO2: 10 tons 50 - 250 km 10 tons 1,200 - 2,000 km 10 tons 2,500 - 8,000 km 10 tons 1,600 - >10,000 km Source: DGF/Freight Green Strategy; 1) HFO = Heavy Fuel Oil; 2) Depending on the power mix of the country and the contract of the railway company
AVERAGE FIGURES Air Transport: Penang – Bristol (<5 days) Sea Transport: Penang – Bristol (~35 days) Distance Distance Load Load Mode Mode CO2 CO2 CO2 EMISSIONS – COMPARISON OF MODES ILLUSTRATIVE ILLUSTRATIVE Penang 14,435 km 20 tons Sea 3.6 tons Bristol 20 tons 3.6 tons TOTAL 14,435 km x 20 London Intermodal Transport: Penang – Bristol(~ 15 days) Bristol Distance Load Mode CO2 Air Sea Penang 5,813 km 20 tons Ocean 1.5 tons Dubai 5,492 km 20 tons Air 71.4 tons London Via Suez Canal 169 km 20 tons Road 0.2 tons Sea + Air Bristol Dubai 73.0 tons 20 tons TOTAL 11,474 km Sea Penang x 2.7 x 55 Penang 10,275 km 20 tons Air 198.5 tons London 169 km 20 tons Road 0.2 tons Bristol 198.7 tons 20 tons 10,444 km TOTAL Source: DGF/Freight Green Strategy
DGF GREEN SUPPLY CHAIN CONSULTING: HP Making the Difference: Hewlett Packard, Australia • DHL Global Forwarding helped Hewlett Packard Australia cut CO2 emissions by 41% by: • Moving the switching centre from Perth to Sydney thus avoiding the 4,000 km overland transport • Opening an additional switching center in Melbourne to directly offload containers for local wholesalers without additional reloading • Using trucks with higher load capacity reduced total number of trucks Original way GoGreen way ILLUSTRATIVE ILLUSTRATIVE Perth Perth Sydney Sydney Melbourne Melbourne 6,341 CO2 emissions [t] CO2 emissions [t] 3,741 - 41% 6,341 Source: DGF/Freight Green Strategy
DELIVERING TOMORROW – TOP 10 TRENDS In the DPDHL study “Delivering Tomorrow − Customer Needs in 2020 and Beyond“ 3 of 10 megatrends are related to climate change & environment GLOBAL DEVELOPMENTS: THE WORLD ECONOMY GROWS 2. The economic gap will grow larger worldwide – the potential for social conflicts will increase, and could lead to increased expenditures on security. 1. Climate change will become the big issue and unleash a “green” revolution of products and services – sustainable energy production is on the threshold of a breakthrough. 3. China will be the undisputed winner of economic growth and join the ranks of the world’s technological leaders. THE “NEW” CUSTOMER: NEW NEEDS, EXPECTATIONS, BEHAVIORS 7. Person-to-person communication will remain a priority. 6. Convenience, comfort, and simplicity will be the central requirements. 4. The web will transform customer expectations and behavior – with a focus on individualization, transparency, availability & speed. 5. Eco-friendliness and conscientious consumption will increasingly determine purchasing behavior. ALTERED LOGISTICS: THE NEW MODEL INDUSTRY 8. The logistics industry will become a trendsetter and establish new standards for cooperative efforts and “green” business. 9. Offshoring and outsourcing will create new possibilities – the value chain will expand in all directions for services relating to logistics. 10. Logistics providers will increasingly develop into consulting companies; their complementary services will offer added value. Source: DPDHL Delphi Study, 2009
NOT EXHAUSTIVE OUR ENGAGEMENT FOR SUSTAINABLE DEVELOPMENT Sustainability Rankings & Ratings Dow Jones Sustainability Index: Score in the Environment dimension: 99, the best score overall (Sept 2009) Carbon Disclosure 500 Leadership Index: Our performance for climate strategy and reporting: 97 out of 100 German Sustainability Award 2009: Winner for most sustainable CR & environmental strategy FTSE4Good Europe & Global Indices: Listed since 2004. Advanced Sustainable Performance Indices: Green sector leader in 2009 International Networks for Sustainable Development World Business Council for Sustainable Development: Member since 2009 UN Global Compact: Signatory since 2006 UNEP Climate Neutral Working Group: First logistics provider that joined Clean Cargo Working Group: Member since 2009 International Partnerships United Nations Development Program: Strategic partner since 2006 United Nations Office for the Coordination of Humanitarian Affairs: Strategic partner since 2006 United Nations Children’s Fund: Strategic partner since 2007 Source: DGF/Freight Green Strategy
MORE INFORMATION ON GOGREEN Information on our climate protection initiatives is also available online • More on the GoGreen Program – Deutsche Post DHL’s carbon efficiency program website • http://www.dp-dhl.com/en/responsibility-online_report_2010/environment.html • Explore carbon emission & assess your own CO2 footprint with our DisCO2ver Station • www.dpdhl-gogreen.de/go/ • More on Deutsche Post DHL’s overall sustainability approach (environmental & social) • www.dp-dhl.com/responsibility Source: DPDHL
DPDHL’S COMMITMENT TO CLIMATE PROTECTION We strive to reduce carbon emissions for every letter we mail, every package we ship and every square meter we use “Sustainability – with an emphasis on reducing carbon emissions – is in fact already a central aspect of how we do business. Under our GoGreen label, Deutsche Post DHL was the first logistics company to offer carbon-neutral shipping services, and to publicly commit to a clear-cut carbon efficiency goal. (DP DHL Delphi Study “Towards Sustainable Logistics”, Oct 2010) Dr. Frank Appel CEO DP DHL Source: Delivering Tomorrow - Towards Sustainable Logistics: How Business Innovation and Green Demand Drive a Carbon-Efficient Industry, Oct 2010
LESSONS LEARNED • Carbon accounting is a new ‘science’ – no best practice or ‘how to’ manual exists that has been a proven success as a benchmark • 75% of our carbon footprint is subcontracted – gathering the data and transparency needed is a challenge • Accurate data collection and report is a challenge across a global network: varied IT infrastructure; accuracy levels across the organization • Energy efficiency = CO2 efficiency: demonstrate the Euro value of CO2 to gain business buy-in • Energy efficiency is driven by employee behaviour (e.g. eco-driving): Sustainable engagement in CO2 efficiency is critical • Convincing business managers to invest in longer pay back opportunity assets when short term value creation is top of mind • Less load capacity on aircraft due to the economic crisis means gained CO2 efficiencies through our aviation strategy could be lost Continuous Improvement Source: DPDHL
- + DP DHL CARBON MANAGEMENT The DHL Innovation Center, a unique place for research and development concerning future logistics, designed our Carbon Management • Compensation • Carbon savings from • internal and • external • CO2 compensation are generated Products and services By purchasing GOGREEN products customers reduce CO2 emissions Carbon Management Controls the certified process and internally trades CO2 CO2 emissions: 600 kg CO2 reduction 600 kg ISO 14064-I (2006) Source: DPDHL
GOGREEN OFFSETTING PRODUCT • GOGREEN is offered as an voluntary action to decrease the negative impact on the environment from the customers transportation activities • DHL GOGREEN is an all-inclusive service which includes: • Calculation of CO2 on shipment level • Offsetting the CO2 amount • Issuance of annual certificate for public use • The process of the GOGREEN is annually certified by third party – SGS • DHL patent pending for the whole process and the emission calculation • GOGREEN facilitates CO2 reduction within the transport sector – no “green-washing” • External CO2 reduction projects fulfill additionally criteria following the Kyoto protocol Source: DPDHL
PROJECT EXAMPLE – BIOMASS POWER GENERATION Malavalli PowerPlant – Biomass Project type: Biomass based power generation Project standard: CER, Gold Standard Location: Karnataka, India Goal: To reduce emissions by using biomass waste for power generation. External partners: South Pole Carbon Ltd. Source: DPDHL
PROJECT EXAMPLE – HYDRO POWER PLANT Santa Lúcia II Plant - Small hydro power plant Project type: Renewable energy projects Project standard: CER (CDM registered project 0663; Vintages 2003-2006) Location: Brazil Goal: Displacement of fossil fuels by renewable energy sources in the generation of electricity in isolated systems. External partner: First Climate Group Source: DPDHL
FURTHER PROJECT EXAMPLES Further Project examples you will find at the DPDHL website: http://www.dp-dhl.com/en/responsibility-online_report_2010/environment/green_solutions/gogreen_climate_protectionprojects.html Source: DPDHL
Making the difference Impact $ ~US$ 100,000 saved per year Costs A STATION COMPLETELY GREEN • DGF L.A. wins the annual green “Seed” Award • The DGF Redondo Beach facility, Los Angeles, received the Annual “SoCAL Environmental Excellence And Development Award” in 2009 from the South Bay Business Environmental Coalition for its comprehensive GoGreen program • Recycling & waste reduction • Usage of recycled copy paper and provision of recycle bins and employees got thermo coffee mugs to Styrofoam • Switch to electric forklifts • A switch from propane to electric forklifts saves about US$ 60,000 annually and air quality in the warehouse improved significantly • Set up of centralized print rooms • All desk top printers were removed and centralized printing rooms were created saving about US$ 50,000 p.a. • Lighting retrofit • Installation of energy efficient lights and motion sensors Mayor of El Segundo, Kelly McDowell and Peter Jorgensen, DM DGF Los Angeles Source: DGF/Freight Green Strategy
Making the difference Impact $ ~US$ 15,000€ per year Costs EFFICIENT WASTE MANGEMENT • By monitoring their waste consumption and improved recycling efforts two DGF station on average saved US$15,000 per year • DGF Vienna, Austria, and DGF Houston, U.S., introduced waste management and recycling schemes: • In each warehouse part „recycling islands“ were installed with big cartons for each kind of waste • It was monitored that waste was recycled correctly • The different waste emergence were analyzed in order to use the right capacity of dumpsters • Metal cargo banding is collected for a local scrap dealer • DGF Houston, U.S., saves nearly US$15.000 p.a. • DGF Vienna, Austria, saved about €22.000 p.a. Source: DGF/Freight Green Strategy
Features GREEN BUILDINGS DGF Facility in Auckland, New Zealand • Roof area utilized for collecting rain water • Waste water filtered on site and reused • High performance glass used for better thermal efficiency • Electrical devices are zero-ozone depleting and highly energy efficient • Low energy lighting and “Occupancy Sensing” installed • Bicycle racks for staff set up Green Impact Improvement of CO2 footprint per m² by 20% Source: DGF/Freight Green Strategy
INCREASING FLEET AND BUILDING EFFICIENCY – GOING GREEN WORLD-WIDE Biogas vehicles for Express (Sweden since 2002, Switzerland since 2004) Aerodynamics (200 DON-BUR Teardrop trailers, starting 2007) Air capacity utilization program (Asia rollout in 2007) Sweden Underground warehouse for food retail customer UK Germany Switzerland Solar power at the European Express Hub (since 2008) NExBTL (10 Mercedes Benz trucks, test 2008 -2011) Japan Missouri Fuel cell vehicle (test 2006 - 2009) SmartTruck for dynamic tour planning (pilot started in 2009) Hybrid (10 Mercedes Benz & Mitsubishi trucks, tests started 2008) Source: DPDHL
FUELS 2nd generation 4th generation 3rd generation …….. AERODYNAMICS HYBRID DRIVE NEW / RETROFIT ELECTRONICS ELECTRIC DRIVE NEW / RETROFIT Eco Chip Tuning Battery electric vehicle Series hybrid Range extender Driver assisstance/ education Parallel hybrid INCREASE CO2 EFFICIENCY OF OUR FLEET To identify the optimal tailored solution for the DPDHL fleet a mix of efficient market or future solutions needs to be tested BURN CLEAN V A N S T R U C K S BURN LESS Source: DPDHL
INCREASE CO2 EFFICIENCY IN AVIATION AeroLogic – ready for take-off with low-emission aircraft • Joint Venture between DHL Express and Lufthansa Cargo • Most efficient air cargo and express link between Europe and Asia • Home base at DHL’s new central air hub in Leipzig, Germany • First scheduled flight on June 29th 2009 • First Boeing 777 low-consumption wide-body freighter operating out of Germany: • Most environmentally friendly freighter of its class • maximum payload capacity of 103 tons • distances of over 9000km • operating very fuel efficient at low noise levels Source: DPDHL
INCREASE CO2 EFFICIENCY WITH CITY LOGISTICS Knowledge Input • Bristol Consolidation Center in partnership with DSC since May 2004 reduces urban retail traffic of over 73% • Heathrow Retail Consolidation Center managed by DSC since May 2001 reduced airport retail mileage by 75% Solution Idea Generation • Identify potential opportunities for ‘City Logistics’ • Estimate potential 1 Solution Development • Develop concept for (a) large/ congested metro areas, (b) Greenfield city developments, and (c) airports • Refine the business case • Verify concept with potential customers 2 Solution Implementation 3 • Start pilot with a group of customers Source: DPDHL
LOGISTICS IMPACT ON THE ENVIRONMENT Climate change Congestion CO2 NOx SOx Soot Solid waste Waterusage Local pollution / noise Energy use Source: DPDHL
ACTIONS FOR GREENING LOGISTICS Co-modal transport City logistics Smart solutions Renewable energy Clean fleets Green services Source: DPDHL
TACKLING CONGESTION ON TRANSPORT CORRIDORS Coined by the European Commission in 2006, the concept of co-modality refers to the use of different transport modes - on their own and in combination - in the aim to obtain an optimal and sustainable utilisation of resources. Co-modal transport Unaccompanied traffic Examples • Land freight and container hinterland transport with classical rail and intermodal solutions • Fast and high-speed freight trains for overnight transit between major population centers • Intercontinental train and intermodal transport, e.g. SeAir and EU-China rail landbridge • Short-sea shipping: "Motorways of the Sea" as maritime alternative to overland transport Climate Change Energy/fuel efficiency Noise NOx Soot Congestion Source: DPDHL
City logistics TACKLING URBAN CONGESTION Urban logistics schemes bundle unorganised deliveries in collective distribution networks around an urban consolidation centre. Pilot projects have proven that delivery traffic can thus be reduced by up to more than 70%. Examples • Consolidation of retail goods for cities and airports, e.g. City of Bristol and London Heathrow • Rail trunking of commercial goods through suburban peripheries, e.g. supermarkets in Paris • Consolidation of construction materials for major developments, e.g. Berlin Potsdamer Platz • Conveyance of bulk materials on inland waterways to jetties in urban centres, e.g. London Climate Change Energy/fuel efficiency Noise NOx Soot Congestion Source: DPDHL
Smart solutions TACKLING LAST MILE Direct deliveries – the so-called last mile – are a particular challenge in urban areas with their high density of residents, retailers and offices. Innovative solutions have successfully been piloted to address this particular aspect. Examples • PackStation 7/24 automated lockerbox solution with 1 million registered users in Germany • Microdistribution in city centres with limited traffic or pedestrian zones using electric carriers • Distribution by boat in cities with comprehensive canal network, e.g. Amsterdam or Venice • Smart Truck dynamic navigation for express deliveries with floating car data from taxis Climate Change Energy/fuel efficiency Noise NOx Soot Congestion Source: DPDHL
Renewable energy TACKLING DEPENDENCY ON FOSSIL FUELS Dependency on fossil fuels is an achilles heel of transport and logistics. Renewable energy from sustainable sources is looked upon to gradually replace diminishing fossile supplies, and eventually satisfy rationalised demands. Examples • Participation in pilot research for next generation aircraft and road fuels from biomass (BtL) • Investment in wind farms in Yinyi/Ningxia (45 MW) and Liuao/Fujian (50 MW), PR China • Investment in river hydroelectric power plant (9.9 MW) in Mato Grosso district, Brazil • Investment in solar energy, e.g. photovoltaics at new DHL air hub in Leipzig, Germany Climate Change Energy/fuel efficiency Noise NOx Soot Congestion Source: DPDHL
Clean fleets TACKING LOCAL POLLUTION Climate change is but one aspect of emissions from transport. Local pollution including noise is a correlated concern that has considerable health impacts in many cities. Smart logistics with modern vehicles can address both issues. Examples • Experimental pilots with hybrid and full electric drivetrains in commercial road vehicles • Deployment of natural gas vehicles in various cities with high levels of local air pollution • Integration of teardrop trailers and other aerodynamic features to improve fuel efficiency • Introduction of efficient new freighter aircraft, i.e. Boeing 777 and Boeing 767 with winglets Climate Change Energy/fuel efficiency Noise NOx Soot Congestion Source: DPDHL