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CONTRACT LOGISTICS & THE ENVIRONMENT

CONTRACT LOGISTICS & THE ENVIRONMENT. The environment, an important factor of KNs business strategy. What do we focus on to reach our yearly targets? The tools we use to be more environmentally-friendly. Measure. Implement. Communicate. Ensure. Improve.

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CONTRACT LOGISTICS & THE ENVIRONMENT

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  1. CONTRACT LOGISTICS& THE ENVIRONMENT

  2. The environment, an important factor of KNs business strategy. • What do we focus on to reach our yearly targets? • The tools we use to be more environmentally-friendly Measure Implement Communicate Ensure Improve

  3. Measuring KN’s environmental impact! Yes, but how? • Environmental aspects • Carbon footprint & the GFCC • Targets for 2013

  4. Environmental aspects What are KN’s main focuses when setting yearly targets? • Electricity and Gas: • Usage for: • Lighting, heating, battery-charging, air conditioning, ventilation, computers, other office facilities (e.g printers, photocopiers, etc..) • Transport: • Fleet of vehicles with many environmental impacts: • Depletion of scarce resources, Co2 emissions & other emissions leading to smog and acid rain. • Water: Anything harmful that enters the surface water drains may pollute streams, rivers and kill wildlife. • Noise: • Noise can have a significant effect on local communities.

  5. WASTE MANAGEMENTHIERARCHYHow does it work? Prevention • Damage reduction • Stock control and rotation • Culture Awareness Minimization Reuse Return and refill schemes: Printer Cartridges, bottle/can deposit schemes, etc Recycling • - Source segregation of materials • Separation of waste types • required by law • (Animal by products, Liquids, • Hazardous Waste) • Mechanical or Biological • separation of waste Energy recovery Use of waste as an alternate source of fuel Disposal Only where all other alternatives have been exhausted

  6. Pollution ManagementPollution Risk assessment • What is Pollution? • It is the release of chemical, physical, biological or radioactive contaminants to the natural environment that causes instability, disorder, harm or discomfort to our ecosystem. The consequences of environmental breach are not just financial. A firm’s reputation is some of the highest risks and could be essential for the survival of a business. Therefore it is crucial to understand the environmental aspects on our sites.

  7. The center piece of KN‘s Environmental Management System • Establish an appropriate environmental policy, • Identify the environmental aspects in order to determine the environmental impacts of significance, • Identify applicable legal and other requirements to which the organization subscribes. • Identify appropriate environmental objectives and targets, • Establish a structure and a programme(s) to implement the policy and achieve objectives and meet targets, • Perform audits and take preventive and corrective actions to ensure both that the policy is complied with and that the environmental management system remains appropriate.

  8. Contract Logistics targets for 2013 ! K+N UK’s strategy is to deliver growth through innovation. By converting new and innovative ideas into win/win solutions for ourselves and our customers we create real value. Premises C02 emissions Fuel 1% improvement each year 15% reduction / FTE and 15% reduction / m2 ISO 14001 I Increase recycling by 40% Recycling • At least 30 new ISO14001 certified sites globally & 100% successful renewals of current certifications

  9. Carbon Intelligence • Kuehne + Nagel’s carbon management programme designed to : • Calculatecustomers’ carbon footprint, • Identifycarbon reduction potentials in their transport and logistics activities • Offsettheir remaining emissions.

  10. Definition & content • What ? • An inventory of all of the emission sources • From where? • An organisation, product, process or person. • Its role? • To measure, monitor and reduce Co2 emissions. • Site emissions include: • Office heating, cooling systems & Refrigeration • Lighting, computers and electronic appliances. • Additionally, in some countries Kuehne + Nagel operates fleets of trucks that necessarily need to be accounted for the company’s overall footprint. Direct & Indirect emissions  gas, electricity... Glossary: Fossil fuels  gas, oil, coal

  11. Weaim to be the forwarder leader inenvironmentalmeasures Global Strategic CarbonCalculator (GSCC) Global Facility Carbon Calculator (GFCC) Global Transport CarbonCalculator (GTCC) • Our Carbon Intelligence toolkitisbased on two main components : • The Global FacilityCarbonCalculator (GFCC):Asite-level report enabling to prioritise actions to reduceenergy, fuel and water consumption • The Global Transport CarbonCalculator (GTCC):One of the mostpowerfultools in the industry for the measurement and reporting of CO2 emissionscaused by sea, air and road transport activities. • The GTCC allows Kuehne + Nagel to provideits clients with reports on theircarbonfootprint by transportation mode. Carbon Intelligence

  12. Global facility carbon calculator • Highlights priorities for action, by identifying and measuring the larger sources of emissions on site • Enables comparison between similar sites through the use of the emex software. • Provides energy usage needed for Carbon Reduction Commitment [will be a tax] and fuel usage for Logistics Carbon Reduction Scheme • Tables and graphs give “green” notice-boards • Baseline set up and target achievements

  13. Global facility carbon calculator • Scope 1: All direct emissions (company owned fleet) • Scope 2: Indirect emissions (consumption of purchased electricity) • Scope 3: Other indirect emissions (waste generated in operations)

  14. Environment champions • Who are they? Kuehne + Nagel employees who volunteer to become Site Environment Champions.They act as a 2-way channel for advice and information, conducttrials, be an advocate for change, prepare and publish the GFCCmonthly performance report. • What do they do? Raise awareness on environmental issues. Provide guidance to staff and influence site activities to reduce CO2 emissions and costs arising from fuel, energy and water usage and the disposal of waste.

  15. Glossary – Environmental Law • Duty of care: A person is responsible for avoiding acts or omissions that could be likely to cause harm to the environment. • “Polluter pays” principle : Those who pollute should bear the costs of damaging the environment. • Producer responsibility: Making sure businesses that manufactureand sell certain products are responsible for those products once they become waste.

  16. Water Resources Act 1991 Regime set up to conserve, manage and control pollution of water resources and abstraction. “A little guidance” :Only put rain water down the surface water drain! Water Industry Act 1991 Set up private water authorities. “A little guidance”: Don’t put anything into a fowl drain but sewage without the permission of the water authorities!

  17. Classifies waste management according to their desirability. The 3Rs (Reduce, Use & Recycle) are meant to be a hierarchy, in order of importance.

  18. CO2 reporting • Scheme designed to reduce carbon emissions • How does it reduce them? Charges public and private sector organizations that consume large amounts of electricity and gas.

  19. Pollution prevention Guidelines Their objective: Prevent pollution entering watercourses and groundwater by means of guidance, rather than legislation. Hazardous Waste regulations Sets out a regime for the control and tracking of the movement of hazardous waste.

  20. WHAT HAVE WE DONE? Plastic re-processing - over 15,000 tonnes of plastic reprocessed per annum Cardboard re-processing  - over 200,000 tonnes of cardboard reprocessed per annum Bio degradable cleaning agents Hygiene - in house and independent  bacterial swab testing Repairs and maintenance of RTP Water recycling Over 800 million "units" handled through recycling units per annum Latest technology in low energy consumption Recycling of steam energy

  21. Kuehne + Nagel commitment to the environment • Kuehne + Nagel UK has been awarded the Carbon Trust Standard, a mark of excellence awarded to organisations in recognition of their measurement, management and reduction of carbon emissions.

  22. WHAT HAS BEEN SET UP WITHIN CONTRACT LOGISTICS ? CONTRACT LOGISTICS, THE EXTENSION TO YOUR BUSINESS !! The extension? • KN has set up supply chain and environmental solutions: • Reverse Logistics (Returned-goods management, inventory repair/ return, testing & billing) • Services include  container/ returns management, re-working/ re-packing / re-labeling , testing, repair data integration for repair services vendor, shelf-life management, billing and receivables. • Packaging solutions: The Packaging Solution Centre (PSC) is our expert organisation for the design and development of professional packaging solutions according to highest industry standards and governmental regulations.

  23. How CAN YOU BE MORE SUSTAINABLE AT HOME? On average every person in the UK throws away their own body weight in rubbish every three months. Housing in the UK accounts for 30% of total fuel use and energy-related CO2 emissions. Over a third of all UK energy use, and 38% of its carbon emissions, are accounted for by transport - mostly road traffic.

  24. How can you help at KN? · Heated or cooled air is lost Unnecessarily leaving warehouse doors, office windows or cold stores open when they no longer need to be causes excess air to be lost unnecessarily. Controls are set incorrectly In some cases timers and thermostats are set to switch equipment or light on when it is not needed. Energy efficient floodlighting and street lighting  50-75% reduction in energy use. LED lighting  high efficacy Properly engineered LED has a comparatively long life – in the order of 50,000 hours thus reducing maintenance costs LEDs reach full light output instantly≠ SON or SOX lamps Equipment is not switched off All equipment including lights, computers, heaters and catering equipment should only be switched on when needed. Equipment is damaged or faulty When equipment

  25. Various ways of saving energy in KN buildings

  26. Increased productivity and reduced overheads The benefits of environmental improvements Company reputation Enhance employee satisfaction More attractive to outside investors

  27. Why change? • For our future as individuals, families and communities • Global warming will be a direct threat to the business, in terms of reductions in trade due to natural disasters and increased poverty • Our existing customers demand environmental improvement and our potential customers regard it as a key criterion when selecting a partner • To ensure KN’s environmental targets are reached, and that the company remains as competitive as possible in a greener environment

  28. THANK YOU FOR YOUR TIME AND ATTENTION  !

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