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Green Freight India

Development Partnership with the Private Sector (DPP) between

Deutsche Post DHL and GIZ IGEP

GIZ SUTP

Vedant Goyal | [email protected] | +91 859 548 2093

mailto:[email protected]

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As a federal enterprise, we support the German Government

in achieving its objectives in the field of international

cooperation for sustainable development.

We offer demand-driven, tailor-made and effective services for

sustainable development.

The services delivered by the Deutsche Gesellschaft für

Internationale Zusammenarbeit (GIZ) GmbH draw on a wealth

of regional and technical expertise and tried and tested

management know-how.

GIZ - Broad-based expertise for sustainable development

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4

destinations worldwide

A true global player with worldwide presence

have a truly global operation, with

locations in

220

different countries and territories

employ about

470,000 employees, and are one of the top ten

biggest employers worldwide

1million customer interactions every hour

manage more than

1) status 2011, of scope 1 & 2 as defined in Greenhouse Gas Protocol 2) for buildings and facilities Source: CAC program / GoGreen, Deutsche Post DHL;

operate a network with

120,000

destinations worldwide

Strength in

numbers

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With fleet of over 80,000 vehicles, 155 jet aircraft and

facilities in 220 countries and regions they have a yearly

consumption1 of:

gasoline

diesel

kerosene

energy consumption2

37 Mio. l

435 Mio. l

1,019 Mio. kg

3,317 Mio. kWh

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Deutsche Post DHL was the first globally operating logistics

company to set itself a concrete CO2 efficiency target

DPDHL CO2 Efficiency Target

– DPDHL CO2 Index –

DPDHL CO2 Efficiency

CO2 from energy consumption

Service delivered

Aim is to improve CO2

efficiency including

subcontractors by 30%

by the year 2020,

compared to our 2007

baseline.

Source: GoGreen, Deutsche Post DHL 5

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Objectives of GoGreen => improves CO2 efficiency through...

IV GENERATE

VALUE

...in offering green solutions to our

customers and helping them to achieve

their environmental goals

V DEMONSTRATE

LEADERSHIP

... in fostering green technologies,

helping to shape political regulations and

engaging with their key stakeholders

I ACHIEVE

TRANSPARENCY

... of their environmental impact, with a

focus on carbon footprint including

subcontracted transportation

III MOBILIZE

EMPLOYEES

...in strengthening their environmental

knowledge and helping them to engage

in environmental protection

II IMPROVE

EFFICIENCY

... and minimize their environmental

impact with alternative technologies

across all modes and optimizing

networks


: fuel and energy consumption data relevant to CO2 (Scopes 1 and 2)

We’ve been tracking our own CO2 emissions (Scopes 1 & 2) through our

accounting systems since 2009.

l

CO2

CO2l

≙ CO2lInvoice Accounting CO2

emissions

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Initial Step: Accounting systems were modified to record CO2

emissions for Scope 1 and Scope 2 emissions

Source: CAC program / GoGreen, Deutsche Post DHL 7

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The biggest challenge is determining the emissions of their

subcontractors

Today: Subcontractors are surveyed in order to

determine Scope 3 emissions.

In the future: We are striving for the

establishment of standards for Scope 3

reporting in the logistics industry.

We are working with various international

organizations to achieve this.

81% of Deutsche Post DHL’s emissions are

attributed to subcontractor transports (Scope 3)

81%

19%

Scope 3

Scopes 1 & 2


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Deutsche Post DHL is actively pursuing the standardization of

subcontractor emission tracking

Creation of an independent organization responsible

for the collection, compilation and publication of this

data using standardized processes.

This is a required first step toward “green”

subcontractor management.

There is no standard process in place for the

capture and calculation of subcontractor

emissions.

Each individual logistics company must approach

carriers independently and data is often inexact.

Current Situation: Goal:


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Joining forces for success…

…greater impact through cooperation

DPDHL

resource

efficiency and

competitiveness

GIZ

less negative

environmental

impact of freight

sector in India

DPP

standardized

monitoring and

reporting of

carbon

emissions

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GREEN FREIGHT INDIA | Dec 5th, 2012

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Green Freight India – Vision and Objectives

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Facilitate Multi Stakeholder Dialogues (MSD) with Government, Private Sector and Civil Society

Promote knowledge transfer and share experiences from similar initiatives (US, EU, China, etc.)

Develop a road map for the implementation of the GHG reporting platform for the Indian Freight sector

Main Activities (2012-2013)

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GREEN FREIGHT INDIA | Dec 5th, 2012 15

Green Freight India – Value for Economy

Source: SSCCAP / CAI-Asia


Green Freight India – Issues and Challenges



Green Freight India – Stakeholders in India

Stakeholder Groups

Freight Carriers including 3 PL services

Freight Shippers (National + International)

National Policy Developers, Regulators and Enforcement Agencies,

Environmental Agencies

Truck Manufacturers and OEM’s

NGO’s, Research Agencies, Academia

City Government and LGU’s



Green Freight in India – The Focus Areas (1/6)


Awareness across the

Supply Chain

Skill Development

Policies – Governance - Compliance

Technologies Infrastructure

StandardsMethodologyTransparency

Awareness across the Supply Chain

Importance/ Priority Today’s Supply Chains are operated in a highly competitive environment and at the same time involve multiple levels of stakeholders:

The final consumer, the retailer, the logistics service provider as well as the manufacturer of the transported product along with his suppliers of raw- and intermediate materials that went into the product. In order to trigger change it needs conscious consumers requesting/ preferring sustainable products. In order to meet customer demands and retain business, Supply Chains will then – over time – adapt and change towards more sustainable operations.

In a second step, governmental frameworks are required to support these efforts, to give guidance and to ensure compliance.

Objective 1. Prepare Stakeholder Overview and –Mapping 2. Create and build the Green Freight India Brand to give public orientation on what’s considered ‘Green

Freight’ 3. Develop awareness campaign with the related tools and communication materials on Green Freight in

India geared towards key target groups: Consumer, Retailer, Manufacturer and Logistics and broaden the Green Freight India community

Awareness of the impact of fuel consumption in transportation on both, the economy as well as people’s health is little. Consciousness of the final consumer supported by legislations and a reliable label that helps consumers distinguish sustainable from unsustainable transport is key to trigger change along the supply chain, involving retail, logistics and manufacturing incl. their suppliers.

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Supply Chain

Skill Development




Policies – Governance – Compliance

Linking Green Freight to the governmental framework is substantial for the program in terms of guidance, compliance, relevance of the Green Freight Label with related benefits and broadening the awareness. Green Freight needs to engage policy makers to become a game changer.

Importance/ Priority

While awareness and customer consciousness help create market based incentives, a governmental framework would add strong guidance, help ensure and drive compliance and incentives from governmental side (e.g. tax benefit for Green Carrier, special interest rate for Green Carriers). This will help Green Freight to go beyond the initial phase with a few committed organizations driving Green Freight and legitimate efforts into a harmonized reporting scheme, involving standards, methodologies and a central database.

Objective 1. Analyze public stakeholder landscape and concepts to engage government stakeholders 2. Analyze current national and urban freight policies in terms of gaps and potentials to embed

sustainability aspects 3. Develop proposal to link with sustainable urban transport policies and Financing Mechanisms

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Supply Chain

Skill Development




Standards, Methodology, Transparency

No industry standard exists for Road Freight companies on how to report Fuel-\ Carbon Efficiency, nor are the data fed into central, verified database. Therefore little to no transparency is available, - companies that buy transportation services are not enabled to choose greener transportation and transportation companies that invest into green don’t seize the benefits for their business


Importance/ Priority

Standardized Carbon Calculation- and Fuel Efficiency rating methods that are commonly used and related profiles of companies that are openly shared are required to create benchmarks, analyze reasons for, learn from and reward best practices and enable ‘Sustainability’ as an additional decision criteria in the process of purchasing a transportation service. A standardized and central data collection process would also reduce the current complexity and efforts needed to collect data at company level and ensure comparability and consistency.

Objective

1. Define the Green Freight India Fuel Efficiency Index and how it translates into the Green Freight Brand 2. Create the scoring model and database concept 3. Develop the data collection concept including its evolution from basic to advanced

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Supply Chain

Skill Development




Technologies and Infrastructure

Although green technologies are on the rise, only a few of them are broadly applied while the majority ends up as supplementary products. Higher investment not compensated by savings, insufficient understanding of the technology and missing comparison on the various technology options might be main reasons, along with shortages in the infrastructure to operate the green technologies


Importance/ Priority Fuel- and Carbon Efficiency gains through operational efficiency, triggered by awareness and knowledge are successful drivers of greener Supply Chains. The next development curve is typically driven by technologies. In order to increase the adoption of Green Technologies, it is important to understand the main challenges companies face in the process of applying them to build and offer strategies that help companies, organizations and countries overcome these hurdles.

Objective

1. Research the key constraints in process of adopting Green Technologies 2. Develop overview on key strategies to overcome current constraints 3. Create transparency on the main infrastructural issue and challenges

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Supply Chain

Skill Development




Skill Development

A local expertise on fuel efficiency technologies helps build up capacities and sustain Green Freight Efforts in the local economy and exchange best practices with other markets.


Importance/ Priority Once awareness is created, national green freight policies are getting in place, reporting methods are harmonized and strategies to increase the adoption of Green Technologies are shaping up, the local market requires knowledge in experts and talents and capacities to support the development towards a fuel efficient economy. Besides capacities around educational services, also technology development, auditing service, consulting and finance are affected.

Objective 1. Develop overview on the skill profile needed to support the development of Green Freight India on

long term 2. Research currently existing programs and initiatives and to what extent they would cover the skill- and

capacity requirements 3. Create concept to develop the required skills and capacity requirements

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GREEN FREIGHT INDIA | Dec 5th, 2012 27 27

Green Freight Initiatives – around the world

Asia Established Green Freight Asia Network Network to promote and support national Green Freight efforts across Asia, give advice and share best practices, ensure consistency of Green Freight policies and programs within the region and compatibility with other global Green Freight programs

+ India Develop Green Freight India Program, pilot projects, studies + China China Green Freight Seminars and pilot projects, studies + Korea Korea Green & Smart Transport Partnership + Taiwan Green Freight Seminar

Selected activities, not exhaustive

Green Freight India

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Contact us

DPDHL

Björn Hannappel

[email protected]

+49 228 182 93024

GIZ IGEP

Enrico Rubertus

[email protected]

+91 844 730 22 20

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GIZ SUTP

Vedant Goyal

[email protected]

+91 859 548 2093







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