Environmental Management and Energy Efficiency at DB

1DB Environment Centre, Henning Schwarz, Belgrade 30th September 2011

Environmental Management and Energy Efficiency at DB

September 2011

Deutsche Bahn AG

Bartlomiej Banaszak

Hartmut Reiche

Andrea Casper-KleinHeiner Müller-Elsner

DB Environment Centre

Max Lautenschläger


Contents

1. DB at a glance

2. Environmental Management System

3. Waste Management

4. From “Environment” to “Sustainability Management”

5. The climate and energy strategy of DB

Traction Energy Saving

Non-traction Energy Saving

Energy Mix

6. Conclusion


3Deutsche Bahn AG, Joachim Kettner, 9 Sept. 2011


4

DB has developed from a rail carrier into an international mobility and logistics provider

As of December 31, 2009 1 Gross metric tons

1.9 bn rail passengers a year 26,906 trains a day 800 mn bus passengers a

year Approximately 4 mn

BahnCards in circulation

1.9 bn rail passengers a year 26,906 trains a day 800 mn bus passengers a

year Approximately 4 mn

BahnCards in circulation

341 mn metric tons of transported goods a year1

4,739 freight trains a day 484 metric tons per train 70 mn shipments in

European land transport

341 mn metric tons of transported goods a year1

4,739 freight trains a day 484 metric tons per train 70 mn shipments in

European land transport

Largest rail network in Europe

33,723 km rail track network 5,707 passenger stations 7,754 km-long electricity

network 143.3 mn station stops per

year

Largest rail network in Europe

33,723 km rail track network 5,707 passenger stations 7,754 km-long electricity

network 143.3 mn station stops per

year

Transport market


DB Environment Centre is located within the Board Division “Rail Technology and Services”

DB Group Structure – as of 21.09.2011


6

DB Environment Centre: Strategy, Operational Support& Consulting - Concentrating Expert Knowledge on Group Level

For the Group:Development of

environmental strategies and guidelines together with the business units

For Operations: Supporting the

operating business units (e.g. environmental service support on-site, IT systems for environmental purposes)

For External Customers

Environmental Consultancy services

DB Environment CentreMr Kettner

Environmental Management

Dr. Mather

EnvironmentalServicesDr. Büge

Operational En-vironmental Protection

Ms Fleckenstein

Environmental Strategy

Ms Ahrens

Radiation Protection/ Hygiene

Mr Wilkens

Energy & Resource Efficiency

Mr Seifert

Laboratory

Ms Henkel

Measurements

Mr Möritz

Environmental Emergencies24/24-Service

Radiation Protection24/24-Service

Dangerous GoodsMr Eßling

ProcessesOstermayer

CommunicationWestenberger

Evaluations

Dr. Büge

Waste

Noise

Nature Protection

Climate Protection

Emissions

Water Protection

Environmentalmanagement

Sustainability

Radiation Protection

Sanitation/ HACCP


Contents

1. DB at a glance


3. Waste Management





Energy Mix

6. Conclusion


8

Competitors are Challenging the Performance of the Railways

Flight Achieving carbon-neutral growth by 2020 Improving fuel efficiency by ~1.5% p.a.

(2009-20)

Reducing CO2-emissions by 50% by 2050, relative to 2005

Trucks Reducing CO2-emissions by 30% by 2030,

relative to 2007

Electric cars Example Germany – Target 2050:

Almost no use of fossil fuels for inner city transport

Railways need answers to meet these developments. Otherwise they will loose their environmently friendly image and support in society.


9

9

Political priorities indicate a consequent transition towards low carbon solutions and stricter regulation

December 2008, EU Energy and Climate Package created a new target of a 20% reduction in greenhouse gas

emissions on 1990 levels by 2020

September 2009, EU Commission President Barroso stated that lowering carbon emissions and tackling those

from transport in particular as a key action for the new Commission

October 2009, EU Environment Council agreed on the need to set a long-term target for emissions

reduction at EU level, specifying a reduction target of 80-95% by 2050

March 2011, EU Commission published the new White Paper on Transport, setting a carbon

reduction target for transport of 60% by 2050 and a 50% shift of medium distance intercity passenger and freight journeys from road to rail and waterborne transport


85

7064

5247

52

corporateresponsability

cost reduction

competitorcustomerrequirement

imagelegalrequirements

10

Customers Expect Green Services

10

Driver of Green LogisticsSource: INVL Studie: Grüne Logistik, 03/2010sample of 108 carriers and logistic providers

Question: How would you continue to use rail if it no longer had an environmental advantage?

Answer: 3 per cent of customers would no longer travel by

train if rail were to lose its environmental advantage 24 per cent of customers would no longer use rail

so frequently

Relevance of Green MobilitySource: A. Rützel: Die Publizität von Umweltkommunikation der Deutschen Bahn AG anhand einer Trendumfrage bei Bahnkunden, 2005

Customer requirements concerning Sustainability and Green Logistics are increasing

Declaration of CO2 becomes a standard in call for tenders

Specific declaration of transport CO2-emissions needed

Sector requires a standardized methodology how to model CO2-emissions

just as muchlessnot at all


3. EMS-Documentation1. EMS-Documentation

Environmental Management at DB since 1994Development and Important Steps

DB’s Sustainability Management

1995 2006 2007 2008 2009 2010 2011

Annual Environmental Reviews & Programs

Highlights

Reviews & Programs

Committee

Group Committee Environment

Docu-mentation

Group Committee Environment

… 2000 2001 2002 2003 2004 2005

Energy Saving Program 2005

Climate Protection Program 2020

Environmental Mobility Check

2. EMS-Documentation

Environmental Reports (replaced by Sustainability Reports)

Steering Committee Environment

External Advisory Board


All instruments, standards and results of the DB Environmental Management System are approved by the Group Committee for

Environment.

Environmental Management System of DB GroupFour main instruments for joint action

Joint environmental strategy for the group and annual evaluations of opportunities and risks for each environmental issue.

Environmental Strategy and Review

Environmental Program Commitment to necessary joint and single projects and measures, agreements on their monitoring, link to the Corporate Strategic Process

Environmental Standards and Guidelines Basis for the group-wide cooperation and best practices for optimized procedures to achieve economic efficiency within legal requirements.

Environmental Key Performance Indicators

Annual Environmental Key Performance Indicators Report with evaluations for the KPIs of each environmental issue.

1

3

4

2


DB Group’s Environmental Management SystemOrganizational structure of the collaboration - bridging the gap together

Group Committee for Environment

Expert GroupClimat

e

Expert GroupNoise

Expert GroupNature

Expert GroupWaste

Expert GroupHACCP

Expert GroupWater

Expert Group

Management

to be implemented

DB

Gro

up

's S

trate

gy &

Ob

jecti

ves

DB

Bu

sin

ess U

nit

's S

trate

gy &

O

bje

cti

ves

Group Committee for Environment: Joint decisions and strategy development with one to two

representatives of each business division's environmental organizations and of the DB Environment Centre

Expert Groups: Composition of experts from all over the company (depending on

the issue), each group headed by the expert of DB Environment Centre

under progress


Standards & Best Practice

Guides

Standards & Best Practice

Guides2

Objectives & Joint

Programs

Objectives & Joint

Programs3

Monitoring

& KPIs

Monitoring

& KPIs4

Strategy& Review

Strategy& Review 1

Business units

Group together with business units

Connected loops for effective & efficient collaborationJoint strategies – specific implementation

Specific concepts,

projects & measures

Specific concepts,

projects & measures

Deutsche Bahn Group

AuditsAudits

Operations

Strategy


Contents

1. DB at a glance


3. Waste Management





Energy Mix

6. Conclusion


The DB disposal management system takes the rail modeas a whole into account in its design

34,000 kilometer network

69,000 switches

27,000 bridges

5,700 stations

2.7 billion passengers annually

108,000 freight cars

5 million metric tons of waste in 2009

- 12.6% of which hazardous waste

€61 million in disposal costs

€69 million in marketing revenue

Disposal figuresRail mode figures


Glass waste94%

Rate by type of wasterecent years*

Paper96%

Packaging96%

Plastic63%

Scrap timber97%

Construc-tion

waste94%

DB plays an important role in protecting the environment and resources through its disposal management system

*Source: UIS-DB

2004 2005 2006 2007 2008 2009

89.3%

83.2%

85.4%

72.5 %

75.5 %

85.9%

Waste recycling rates at Deutsche Bahn

DB recycles 84% of its waste on average.

Total rate 2004-2009


Source: IW Zukunftspanel, 2008

Opportunity

18.6%

Opportunityand risk

Risk Neither

8.1%

53.9%

19.4%

“Do you consider scarcity of resources an opportunity or risk for your company?”

Scarcity of resources is consideredprimarily a risk in the German economy

Waste will become a resource as a result of megatrends

In line with megatrends, waste is becoming increasingly important as a resource

Its significance for the raw materials market, energy generation and climate protection is growing

Deutsche Bahn contributes to sustainability through its waste management system


Deutsche Bahn’s waste management strategy

Develop a material flow management system to reuse materials within DB and for third party business

Make waste available as secondary raw materials

Use secondary raw materials

Goal: Use resources as responsibly as possible

Bartlomiej Banaszak

Effects in 2009

344 kilometersof new track saved

210,000new concrete sleepers saved

1.8 million metric tonsof new ballast saved

Source: Deutsche Bahn AG


Contents

1. DB at a glance


3. Waste Management





Energy Mix

6. Conclusion


By shaping the transport of the future as sustainable transport, we support our long term business success

Attractive solutions for our customers

Intermodal door-to-door

mobility services

Integrated transport networks

Integrated logistics

services from gate to gate

Intelligent rail service link and

smooth transfer to other modes of transpor-

tation

Acceptabletransports for our society

Toward sustainability:Climate change, resource efficiency, answers to demographic change ...


Daniel Kurth

Rail operators

Intermodal mobility

managers

Sustainable mobility for passenger transport customers:easy and safe travel from door to door

Rail-related product

managers

cross-selling

Integrated


DB’s choice: Sustainability with an accord of social, environmental and economical requirements

Different levels of responsibility:

1. Social engagement (sponsorship, cultural and social projects)

2. Social responsibility (contributions to wealth, employment, education, climate protection etc. )

3. DB‘s choice: Sustainability: Integration of social and ecological aspects into the business as an advantage for the company as well as for the society.

1 2 3

DB’s Conception of Sustainability


Sustainability management of the DB GroupHarmonizing sustainability requirements with existing management

Review Identifying

relevant developments

Targets & measures Using opportunities and

minimize risks

StrategySetting the right

priorities together

Sustainability management

Sustainability Communication

DB Environment Centre

coordinates according to international

standards

Involved parties manage on their own

responsibility

Steeringcommitte

e

Legislation and agencies

Politicians

Customers

Trade unions

Public

Environmental NGOs

PressTransport

NGOs


New Steering Committee

Code of Conduct DBCommitment to UN GC

Sustainability Management at DB since 2005Development and Important Steps

DB’s Sustainability Management

2005 2006 2007 2008 2009 2010 2011

August 2007

1. Sustainability Report

TOP12 and sector leader in German ranking

July 2009


TOP5 and sector leader in German ranking

Sustainability Review DB Project Sustainability

Reports

Reviews

Committee

Evaluation

Steering Committee Sustianbility

Code of Conduct

2012

2012



Example: The Commitment of the Members of theInternational Union of Railways (UIC)

UIC Declaration on Sustainable Mobility and Transport

The declaration addresses all aspects of sustainability and contains commitments towards customers and society as well as to responsible leadership in the railway sector.

Over forty railways have signed the Declaration until now, representing more than 60% of the total rail market around the world.

Signed by DB in November 2010 (as one of the first signatories).

UIC Reporting Guideline Reporting on the progress of implementation is

one of the obligations of the declaration. The reporting guideline offers suitable

indicators for each statement of the declaration to choose from (“voluntary standard”).

Accepted by international stakeholders (UN DESA, UNEP, UN Habitat, GTZ, universities, GRI, IÖW) in 2010.

DB’s Sustainability KPIs


The DB sustainability report is an online report that contains all facts and figures about sustainability at DB (according to GRI).

Focus on core business: megatrends in the transport market (globalization, climate change/dwindling resources, liberalization and demographic change) are connected with a sustainable perspective for the future.

The second DB sustainability report was published in summer 2009.

The report was again ranked the best report in the sector-specific German ranking of sustainability reports in 2009 and was ranked 5th among all reports. (the first report, in 2007, was ranked 12th)Online at www.deutschebahn.com/sustainability-

report

Sustainability Report of the DB GroupTransparent and comprehensive reporting every 2 years


Do you have comments, questions?

What is your experience?


Contents

1. DB at a glance


3. Waste Management





Energy Mix

6. Conclusion


The Deutsche Bahn integrated climate and energy strategy provides concrete answers to climate change

The climate and energy strategy of DB

The DB Eco Program enables proactive and uniform communication of climate and environmental protection activities.

New green products relieve the burden on the environment.

Products 1

Energy efficiency reduces CO2 emissions and saves costs

Reducing dependency on fossil fuels

Energyprocurement

3

Communicated through the DB Eco Program4

Operations & production

2


Climate protection: DB has defined ambitious targets, the new Climate Protection Program is well established and on track

1990-2006: 36% lower CO2-specific emissions (rail only)

-36%

20061990

CO

2-s

pecifi

c e

mis

sio

ns

-20%

20202006

By 2020: 20% lower CO2-specific emissions (all Group

activities)

DB AG has reduced CO2-specific emissions by 8% in 2010 compared to 2006C

O2-s

pecifi

c e

mis

sio

ns

Target


Source: DB AG

New Climate Protection Program 2020 – modules for reducing CO2 on land, on water and in the air

-20%

20202006

By 2020: 20% lower CO2-specific emissions

C

O2-s

pecifi

c e

mis

sio

ns

Measures

20% CO2

reduction by 2020

Modern vehicle fleet

Electrifying rail

operations

Energy-efficient

Operations

Optimizing capacity

utilization

Modal networking and modal

shift

Increasing use of

renewable energy


Traction Current Mix of DB in 2010*

Natural Gas 10,5 %

Renewables 19,8%

Others 2,4%

Nuclear 22,2%

Hard Coal 32,1%

Lignite 13,0%

Source: DB* prelimenary value with regard to final reporting according to Federal German Law (§42 EnWG)

Additional purchase of 235 GWh traction current from renewable sources in 2010 by DB Business Units via CO2-free offers

CO2 avoidance of DB customers of 140.000 t

The traction current mix is the lever for environmentally friendly rail transport

DB goal by 2020: a share of Renewables of at least 35%


Source: DB AG

Energy-saving experts without losing time: DB’s train drivers

Chri

stop

h B

uss

e

Ralf

Kra

nert

Energy-saving training Program energy saving driving in operation since

2002

Technical driver support on board (ESF EBuLa*) and in depots (EIS**)

General potential of 3 – 8% savings relating to baseline

Train drivers use physics: Once a train has reached its scheduled highest speed, it can roll for long distances while barely losing speed.

A trained ICE train driver can save enough energy on the Hamburg-Munich route to satisfy the annual energy requirements of a four-person family.

Combined with the savings of DB Schenker, the pollution in the atmosphere has been reduced by about 310,000 metric tons of CO2 since 2002.* energy saving driving electronic working timetable; ** Energy Information System


Developement of a billing system based on metered datawas a pre-condition for driver‘s training

1997 2003 2006

Start of Project

objectives:

systematic and transparent billing of mobile 16,7-Hz- units

standardization

fullfilling of calibration and DIN-norms

economic efficiency

launching of energy billing system based on metered data

launching of MIS System EIS II (Energy Information System with purpose of energy savings)

100% traction units (5600 units) equipped with TEMA-Box

2009

6300 traction units (900 with external customers) equipped with TEMA-Box

Billing system and estimation system approved by german calibration authorities

TEMA = Traction Energy Measuring and Billing (Abrechnung)


By using new and enhanced vehicle generations, rail energy consumption decreases and thus CO2 emissions as well

E-locomotive class 146 (replacement of class 111)

- 56% - 23%

S-Bahn class 423(replacement of class 420)

Source: DB

Cla

us

Web

er

Wolf

gang

Kle

e

Energy savings


Source: DB AG

Regenerative braking generates current, thus saving energy

Max L

aute

nsc

hlä

ger

H

ein

er

Mülle

r-Els

ner

Modern electric engines can transform the train’s kinetic energy into current when braking.

The current generated flows back into the electricity grid and can be used by other trains.

About 850 gigawatt-hours (GWh) of current were generated in this way in 2009, or almost 9% of the total traction current consumption.


The initial focus was on emissions from transport services, now focus on stationary energy consumption

Stationary Energy

Consumption****

Traction Energy & CO2-Emissions

-20%

20202006

By 2020: 20% lower CO2-specific emissions

C

O2-s

pecifi

c e

mis

sio

ns

DB Schenker Logistics** DB Schenker Rail*** DB Bahn Regional*** DB Bahn Long Distance***

all Business Units

* estimation, excluding DB Arriva** transport services worldwide; specific CO2-emission reduction targets*** transport services in Germany; energy efficiency targets**** consumption in Germany; abolute reduction targets and additionally specific reduction targets for data processing centres and Business Unit rolling stock maintenance

Share of totalCO2-Emissions*

98%

2% maintenance real properties points heating lightning track operations others

DB Climate Protection Program


Contents

1. DB at a glance


3. Waste Management





Energy Mix

6. Conclusion


DB

AG

/Ch

rist

ian

Bed

esc

hin

ski:

DB AG/Günter Jazbec:

DB

AG

And

rea C

asp

er-

Kle

in

Conclusion

Environmental issues have become increasingly relevant for the business development of DB

With the implementation of Environment & Sustainability Management Systems DB has taken up the challenge

The climate strategy 2020 and subsequent actions are essential for the long-term business development prospects of DB

Measuring instruments and related inidcators are key to monitor and control your environmental performance

Bartlomiej Banaszak

Hartmut Reiche

Andrea Casper-KleinHeiner Müller-Elsner

Max Lautenschläger


Deutsche Bahn AGDB Environment CenterHenning SchwarzWeilburger Str. 22, 60326 Frankfurt/ Main Tel.: +49 69 265-14786Mobile: +49 170 339 69 72Fax: +49 69 265-14786

[email protected] www.deutschebahn.com/environment www.deutschebahn.com/sustainability

DB

AG

/Bart

olo

mie

j B

an

asz

ak

Thank you very much for your kind attention!

Contact


Do you have comments, questions?

What is your experience?


Back up


DB

AG

/Ch

rist

ian

Bed

esc

hin

ski:

DB AG/Günter Jazbec:

DB

AG

And

rea C

asp

er-

Kle

in

The DB Environment Center – Guiding principle and objectives

The further development and active use of environmentally compatible products and services enhance corporate value and provide competitive advantages.

This in turn promotes the public appeal of the company as an environmentally friendly mobility service provider.

The DB Environment Center develops environmental concepts and programs and sees through their implementation for the benefit of their internal and external customers

Back-up


DB offers entirely CO2-free travel and transports through its new climate-friendly products and services

DB Energy purchases the required electricity from renewable energy sources in advance and feeds it into the traction current network

Purchasing electricity

Ste

fan W

art

er

DB calculates the electricity the customer’s journeys consume and bills the additional cost (<1% of the ticket price)

Calculation

The customer receives an attestation from TÜV SÜD on the origin of the electricity and CO2 savings

Attestation


CO2-free travel and transport – Umwelt-Plus products at a glance

Destination Nature

School trips with DB

Umwelt-Plus: Deutsche Bahn corp. customers

Event ticket

Foreseen expansion to other groups of customers

S-Bahn Hamburg

Günter Jazbec

Eco Plus for rail freight transport

Rüdiger NehmzowDestination Nature

UICDB AG DB AG

S-Bahn Saarland

Rainer Schedler


DB corporate customers have shown a keen interest in bahn.corporate Umwelt-Plus products

DB Vertrieb GmbH has offered business travel to its corporate customers in accounts and key accounts through bahn.corporate Umwelt-Plus since April 2009.

Business travel by rail for DB employees has also been entirely CO2-free since October 1, 2009, which improved the CO2 footprints of the roughly 20 corporate customers and DB by around 10,000 metric tons in all in 2009.

Corporate customers and DB are expected to improve their ecological footprint by 34,000 metric tons of CO2 in all in 2010 through the program.

(DB business travel)


1) Average CO2 emissions of a 1,000 metric ton transport

20

60

40

CO2-specific emissions in metric tons

Rail Eco PlusTruck

- 35 t CO2

- 20 t CO2

By opting for the product Eco Plus, rail freight will run completely CO2-free

Example: transport from Hamburg to Munich1)

Eco Plus: CO2-free rail freight transport in Germany

Eco Plus offers its rail freight customers CO2-free transports

Substantial contribution to our customers’ climate goals because the product prevents CO2 emissions instead of compensating for them

Eco Plus and Umwelt-Plus won the 2nd UIC Sustainability Award 2010

* Compared to general rail transport

100%

reduction

*

0


49

DB Schenker uses EcoTransIT World to calculate carbon footprints

Source: www.ecotransit.org

Train

Ocean vessel

Airplane

Train Ocean vessel

Airplane

Train Ocean vessel

Airplane

Calculation example: 100 metric tons of average goods from Hamburg (Germany) to Beijing (China); comparison of train, maritime and air transportThe presentation of the results can be selected according to individual needs

Ecological Transport Information Tool


Eco Plus creates a win-win situation for customers and the environment

Customers can eliminate all CO2 emissions generated during transport

No compensation with simple certificates or carbon offsetting

By using DB Schenker’s Eco Plus, the production of carbon emissions will be avoided completely

Eco Plus contributes to a direct effect for customers’ climate targets – TÜV SÜD ensures high credibility

Existing or new transports can easily be switched to become CO2-free

New production capacities for renewable energy sources will be financed by 10% of revenues

Documents

Environmental Management and Energy Efficiency at DB