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Green Supply Chain Anna Deshko

Green Supply Chain Anna Deshko. We can help our customers in becoming “greener” to satisfy stakeholders’ requirements and reveal potential for increasing efficiency of their supply chains.

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Green Supply Chain Anna Deshko

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  1. Green Supply Chain Anna Deshko

  2. We can help our customers in becoming “greener” to satisfy stakeholders’ requirements and reveal potential for increasing efficiency of their supply chains

  3. Carbon Emissions – a Global ChallengeWith global warming being recognised as one of the largest challenges of this century, carbon emissions are increasingly becoming the centre of attention • Global warming is the result of increasing CO2 concentration in the atmosphere • Global warming is and will be one of the largest challenges of this century • Transportation activities are one of the main contributors to global warming

  4. Transport of tuna from Spain to Japan Transport of 1 pair of shoes Some examples of the carbon footprints when transporting goods 450 kg CO2 372 g CO2 North Europe China Spain Japan 20 KM 0 KM 3700 g CO2 7500 kg CO2

  5. Transportation - An important source of CO2 Due to globalization and increased outsourced trends, transportation is the only sector that has increased CO2 emissions in the last two decades EU Source: European Logistics Users Providers and Enablers Group ( ELUPEG)

  6. Our response – SupplyChain CarbonCheck™ Maersk Logistics’ consulting service aimed at identifying carbon reduction potentials in supply chains mounting pressure from stakeholders ambitious CO2 reduction targets untapped potentials in global supply chains

  7. SupplyChain CarbonCheck™ - comprehensive scopeThe scope can cover supply chain activities from the pick-up at the vendor’s factory until delivery to the point of sale Truck/Rail/Barge Truck/Rail/Barge CFS facilities Load port Ocean/Air Discharge port Point of sale Factory DC Truck          

  8. SupplyChain CarbonCheck™ - a standardised approach4-step methodology based on internationally recognized emission standards Implement solutions 4 Simulate carbon footprint & costs of alternative scenarios 3 2 Evaluate CO2 emission & cost reduction potential 1 Estimate current supply chain carbon footprint & costs

  9. Carbon Footprint Calculator Global supply chain scope Internationally recognised emission standards &calculation methodology Step 1: Estimate Current Carbon FootprintAs a first step, we map your current carbon emissions and provide you with a snap-shot of the carbon footprint of your supply chain 3 Carbon mapping of current supply chainwith Maersk Carbon Footprint Calculator Result: Snap-shot of the supply chain’scurrent carbon footprint – the ‘AS IS’ scenario 1 2 4 Estimate Simulate Evaluate Implement ‘AS IS’

  10. Step 2: Simulate Alternative Scenarios We then estimate carbon emissions for alternative configurations of the supply chain and compare the results with the current footprint TO BE 1 3 Simulation of alternative supply chain set-ups – ‘TO BE’ scenarios Calculation of carbon emissions and total supply chain costs for each scenario Comparison of ‘TO BE’ scenario with‘AS IS’ scenarios Identification of CO2 reduction potentials 1 4 2 Estimate Simulate Evaluate Implement AS IS TO BE 2 TO BE 3

  11. CO 2 Step 3: Evaluate CO2 Reduction PotentialsReduction potentials are evaluated under various aspects 3 1 2 4 Evaluate carbon reduction potentials based on: Estimate Simulate Evaluate Implement Strategic fit Impact on carbon footprint Impact on total supply chain costs Ease of implementation $ ? Concrete recommendations for implementation

  12. Step 4: Implement SolutionsMaersk Logistics assists in implementing the agreed solutions, thus helping you tap the full potential of carbon footprint reduction in your supply chain Preparation of roadmap for implementation Maersk Logistics assists in putting agreed solutions into practice Estimation of actual achievements in reducing carbon emissions after implementation phase CO2 Reduction 3 1 2 4 Estimate Simulate Evaluate Implement Solution C Solution B Solution A Time

  13. What have we done so far? Case Studies

  14. What have we done so far? – case study 1In this study, we have analyzed the environmental impact of alternative transportation modes The Project • An electronics company exporting goods from Barcelona to Denmark • Environmental impact analysis of two scenarios: Truck vs. Multimodal Results • The analysis reveals that trucking alternative represents more than 3 times more CO2 emissions compared to multimodal transportation

  15. Alternative 1 – TruckTotal CO2 emissions: 197.120 KGs Factory (Barcelona) Warehouse (Denmark) Alternative 2 – MultimodalTotal CO2 emissions: 65.244 KGs Factory (Barcelona) DC (Spain) DC (Copenhagen) Truck Rail Truck Warehouse (Denmark)

  16. What have we done so far? – case study 2The aim of the study was to identify main drivers of carbon emissions in the supply chain and provide alternatives to reduce carbon footprint and costs • The project • A leading health and beauty group – Alliance Boots • Exports from Asia to United Kingdom The Scope Truck/Rail/Barge CFS facilities Load port Ocean/Air Discharge port Point of sale Truck/Rail Factory DC Truck

  17. What have we done? • Estimated current carbon footprint & costs • Simulated carbon footprint & costs for alternative scenarios • Evaluated CO2 emission & cost reduction potentials with Boots • Helped Boots to implement solutions Results 29% reduction in CO2 emissions 21% reduction in supply chain costs

  18. Results – 29% CO2 reductionThe supply chain improvement initiatives led to 29% reduction in CO2 (per cubic metre)

  19. Results – 21% cost reductionLower carbon emissions come along with lower logistics costs – a win-win situation for you and the environment!

  20. What have we done so far? – case study 3In this study we have estimated the carbon footprint from supply chain related activities • The project • An American retailing brand • Global supply chain with imports to USA The Scope Truck/Rail Factory CFS facilities Load port Ocean/Air Discharge port Point of sale Truck DC Truck

  21. Results – 57,59 million CO2 for shipments in 2007On average, each cubic meter shipped had a carbon footprint of 101 kg • What does this mean?* • 57,59 million KGs of CO2 is equivalent to; • 10,548 passenger cars not driven for one year • 133,939 barrels of oil Port/Whs Rail Ocean Truck Air * : http://www.epa.gov/cleanenergy/energy-resources/calculator.html

  22. Your guide to greener supply chains - SupplyChain CarbonCheck™

  23. Typically, lower carbon emissions come along with lower overall logistics costs and maintained or improved service levels – a win-win situation for our clients and the environment!

  24. Wal-Mart’s Green Ratings WSJ article, July 17, 2009 “Wal-Mart to Assign New ‘Green’ Ratings” http://www.saboxgreen.it/img/Wal%20Mart%20nuove%20etichette.pdf Sustainability Consulting to Wal-Mart Suppliers http://www.sustainabilityconsulting.com/walmart

  25. Additional Information • How to Engage Suppliers in Sustainability http://www.ethicalcorp.com/supplychain/docs/6th-annual-supply-chain-summit.pdf • http://www.greenprof.org/?cat=42

  26. THANK YOU FOR YOUR TIME

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