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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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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
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
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Some examples of the carbon footprints when transporting goods
Transport of tuna from Spain to Japan
Spain Japan
7500 kg CO2
Transport of 1 pair of shoes
China North Europe
372 g CO2
450 kg CO2
20 KM 0 KM
3700 g CO2
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Change in CO2 emission in UE (1990-2004)
- 36%
- 33%
- 15%
- 13%
- 12%
- 11%
- 10%
- 5%
- 4%
- 3%
26%
-40% -30% -20% -10% 0% 10% 20% 30%
Transport
Energy industries
Residential
Average
Other (non-energy)
Services
Industrial processes
Agriculture
Industry (energy)
Waste
Fugitive emissions
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
Source: European Logistics Users Providers and Enablers Group ( ELUPEG)
EU
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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
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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
Load port
CFS facilities
FactoryTruck/Rail/
Barge
Ocean/Air
Discharge port
Truck/Rail/
BargeDC
Point of sale
Truck
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1
2
3
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Estimate current supply chain carbon footprint & costs
Simulate carbon footprint & costs of alternative scenarios
Implement solutions
Evaluate CO2 emission & cost reduction potential
SupplyChain CarbonCheck™ - a standardised approach4-step methodology based on internationally recognized emission standards
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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
Carbon mapping of current supply chainwith Maersk Carbon Footprint Calculator
Result: Snap-shot of the supply chain’scurrent carbon footprint – the ‘AS IS’ scenario
Carbon Footprint Calculator
Global supply chain scope
Internationally recognised emission standards &calculation methodology
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Estimate Simulate Evaluate Implement
A B C D
A B C D
‘AS IS’
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A B C D
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
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
AS IS
A B C D
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TO BE 2
TO BE 1
TO BE 3
A B C D
A B C D
Estimate Simulate Evaluate Implement
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Evaluate carbon reduction potentials based on:
Step 3: Evaluate CO2 Reduction Potentials
Reduction potentials are evaluated under various aspects
Strategic fit
Impact on carbon footprint
Impact on total supply chain costs
Ease of implementation
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Concrete recommendations for implementation
?
Estimate Simulate Evaluate Implement
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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
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
CO2 Reduction
Time
Solution A
Solution B
Solution C
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4Estimate Simulate Evaluate Implement
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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
Total CO2 (KGs)
Truck 197.120
Multimodal 65.224
Savings 131.896
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Alternative 1 – TruckTotal CO2 emissions: 197.120 KGs
Factory (Barcelona)
Warehouse (Denmark)
Alternative 2 – MultimodalTotal CO2 emissions: 65.244 KGs
RailDC (Spain)
Truck DC (Copenhagen)
TruckFactory (Barcelona)
Warehouse (Denmark)
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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
Load port
CFS facilities
Truck/Rail/
Barge
Ocean/Air
Discharge port
Truck/Rail
DC Point of sale
Truck
The Scope
Factory
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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
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0
10
20
30
40
50
60
70
80
2004 2007
terminal handlingreductionincreased equipmentutilisationimproved weightefficiency (air)air shipment reduction
carbon emissions(kg/cbm)
Reduction
Results – 29% CO2 reductionThe supply chain improvement initiatives led to 29% reduction in CO2 (per cubic metre)
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without initiatives 2007
terminal handlingreduction
increase incontainer utilization
air shipmentreduction
USD / cubic meter
Reduction
Results – 21% cost reductionLower carbon emissions come along with lower logistics costs – a win-win situation for you and the environment!
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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
Load port
CFS facilities
Truck Ocean/Air
Discharge port
Truck/Rail DC Point of
saleTruckFactory
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Results – 57,59 million CO2 for shipments in 2007On average, each cubic meter shipped had a carbon footprint of 101 kg
Rail
Truck
Air
OceanPor
t/Whs
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
* : http://www.epa.gov/cleanenergy/energy-resources/calculator.html
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Your guide to greener supply chains - SupplyChain CarbonCheck™
AGreenerSupplyChain
AGreenerSupplyChain
NetworkDistributionOptimization
TransportMode
Optimization
TransportMode
Optimization
TransportCarrierSelection
TransportCarrierSelection
EquipmentUtilization
Improvement
EquipmentUtilization
Improvement
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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!
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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
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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