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Green Supply Chain
Anas Iftikhar
Farhan Arshad
Adnan Bari
Salman Ansari
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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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COMPARISION BETWEEN MEANS OF TRANSPORTATION
Source: International Maritime Organization (IMO)
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Mode selection has significant impact on a company’s carbon footprint
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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
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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. Evaluate the scenarios that have the highest impact and better fit strategy.
Strategic fit
Impact on carbon footprint
Impact on total supply chain costs
Ease of implementation
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Concrete recommendations for implementation
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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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Strategic Level of Environmental Performance for theA.P. Moller Maersk Group
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What have we done so far?
Case Studies
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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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THANK YOU FOR YOUR TIME