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Corporate Public Policy and Responsibility
Björn Hannappel6th Regional EST Forum in Asia, New Delhi, 5 December 2011
GoGreen ProgramBest Practices in Asia and Beyond
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 2
Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond
Agenda
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 3
Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond
Agenda
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 4
Increasing Importance of Green Logistics and Carbon Transparency
Interest in Green Logistics has significantly increased in recent years and demand for transparency of carbon emissions has expanded considerably
Customers, competition and business opportunities
Legislation
Availability of technologies
Population, public perception and
behaviour
Green Logistics
Carbon neutral transportation
Green Supply Chain Climate change
Melting polar ice caps
CO2 taxes
EU ETSTolls
Congestion charge
Source: DHL Express Asia Pacific
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011
• As a global logistics company, we move goods and information worldwide.
• With transport at the core of our business, we produce CO2 , the main cause of climate change.
• We initiated the GoGreen environmental protection program to accept responsibility for the environment by reducing our impact.
Climate Protection – A Special Responsibility
Deutsche Post DHL’s carbon footprint
Source: Corporate Responsibility Report 2010, Deutsche Post DHL
in milliontonnes of CO2
28.4
Subcontractor emissions (Scope 3)
Own emissions (Scopes 1 & 2)
23.4
5.0
2010
5
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 6
We aim to improve our CO2 efficiency including subcontractors by 30% by
the year 2020, compared to our 2007 baseline.
-10%
-30%
100 %
Source: GoGreen, Deutsche Post DHL
Reaching Goals through Efficiency
Deutsche Post DHL was the first globally operating logistics company to set itself a concrete CO2 efficiency target
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 7
Focus Areas
GoGreen improves our carbon efficiency and sets the standards for green logistics
Source: GoGreen, Deutsche Post DHL
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 8
Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond
Agenda
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 9
Source: GoGreen, Deutsche Post DHL
Measuring CO2 Emissions
Our Carbon Accounting & Controlling System ensures transparency on all relevant levels
CARBON ACCOUNTING
Energyconsumption
Reference base
Capture of CO2 emissions and reference base
Business Intelligence System
CARBON CONTROLLING
Sco
pe 1
& 2
Sco
pe 3
Calculation of CO2 emissions and carbon efficiency
Public reporting4
TRANSPARENCY
Management at the relevant level1
Transparency for the customer2
Product transparency3
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 10
Measuring CO2 Emissions
Our accounting systems were modified to record CO2 emissions for Scope 1 and Scope 2 emissions
: 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.
Source: GoGreen, Deutsche Post DHL
l
CO2l
≙
CO2lInvoice Accounting CO2
emissions
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 11
Measuring CO2 Emissions
The biggest challenge is determining the emissions of our 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.
82% of Deutsche Post DHL’s emissions are attributed to subcontractor transports (Scope 3)
Source: GoGreen, Deutsche Post DHL
18%
82%
Scope 3
Scopes 1 & 2
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 12
Standardization of Scope 3 Reporting
Deutsche Post DHL is actively pursuing the standardization of subcontractor emission tracking
Source: GoGreen, Deutsche Post DHL
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:
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 13
Standardization of Scope 3 Reporting
Deutsche Post DHL is actively engaged in SmartWay / Green Freight Programs around the globe
Source: GoGreen, Deutsche Post DHL
SmartWay US
Fleet Smart Canada
Transporte Limpio Mexico
SmartWay Australia
SmartWay Europe
Green Freight China Program
Green Freight India
Green Freight Japan
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 14
Deutsche Post DHL GoGreen Program Carbon Accounting and Controlling Going Green in Asia and Beyond
Agenda
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 15
Example: Fujitsu supply chain optimization in Japan
DSC Japan has developed a ‘Green Logistics Partnership Promotion Project’ with Fujitsu to reduce CO2 emission in logistics process
• Supply chain optimization (modal shift from road to rail)
• 3R: Reduce, Reuse, Recycle• Centralized dispatch control
system for vehicles in Tokio to reduce the number of required vehicles
• 45% carbon reduction compared to year 2000 baseline
• 2,000 tonnes of carbon emissions reduced in one year
• Improved load efficiency• Achieved Company Group
Environmental Protection Program
• Recognition from Japanese government (Green Logistics category, METI)
Source: DHL Supply Chain
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 16
Example: Blue Dart DHL SmartTruck in Bangalore / India
The SmartTruck pilot project brings a European solution to a challenging metropolitan area
Expected benefits:
• Shorter route duration• More stops per hour• Fuel savings• CO2 savings• Cost savings• Enhance service for
customers
Source: DHL Solutions & Innovations (DSI)
SmartTruck combines different technologies and information sources to optimize daily business
• Dynamic tour planning• Consideration of traffic data• Transition to flexible sorting process• Customer communication• Driver navigation support and
positioning
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 17
Example: Eco Driving Competition in India
DHL Express India started an Eco Driving Competition in 2010 to reduce fuel costs and improve carbon efficiency in road transport
• Average fuel savings of 5-10%
• Additional: cost savings and fewer accidents as well as reductions in local emissions and noise levels
Eco Driving Competition started mid 2010:• Driver trainings• Idea competitions• Tracking of fuel efficiency• Regular best practice sharing
Source: DHL Express Asia
Deutsche Post DHL | PageGoGreen | New Delhi, India | 5 December 2011 18
Thanks for your attention!
Deutsche Post DHLCorporate Public Policy and Responsibility GoGreen
Björn Hannappel+49 228 [email protected]