Part I - p. 1 Green Logistics Method Ecological assessment of logistics services Status: version 1.0, 31.03.2015 Part I - p. 2 Introduction The Green Logistics method for the ecological assessment of logistics services is the collaboration result of the project consortium »Green Logistics« as well as the specialist departments in the respective companies and has been discussed with the stakeholder group of the Green Logistics project. The project is part of the EffizienzCluster LogistikRuhr, sponsored by the German Federal Ministry of Education and Research (BMBF) (Funding code 01IC10L06, http://www.green-logistics-network.de/). In the following, the Green Logistics method’s procedure, formulas, assumptions and restrictions are summarized. An additional »Supplement« covers relevant parameters, emission and conversion factors, classifications etc., to facilitate the application of the method. Contact: Kerstin Dobers Fraunhofer Institute for Material Flow and Logistics (project manager Green Logistics) kerstin.dobers@iml.fraunhofer.de, tel. office: +49 231 9743 360 Joseph-von-Fraunhofer Str. 2-4, 44227 Dortmund, Germany, www.iml.fraunhofer.de Part I - p. 3 Content General framework Procedure Screening phase (step 1) Calculation of emissions Validation of scope Allocation of emissions Declaration Annex Supplement: Parameters of Green Logistics method Part I - p. 4 Abbreviations CH4 - Methane LS - Logistics service CL - Client LSP - Logistics service provider CO - Carbon monoxide MEP - Mechanical Electrical Plumbing CO2 - Carbon dioxide NF3 - Nitrogen Trifluoride CO2e - Carbon dioxide equivalent N2O - Nitrous oxide EI99 - eco-indicator 99 NOx - Nitrogen oxides EU - European Union OU - Organizational unit ETS - Emissions Trading System PFCs - Perfluorocarbons GCD - Great circle distance RFS - Road Feeder Service Geo - Geographical unit RORO - Roll-on Roll-of GHG - Greenhouse gas SF6 - Sulfur Hexafluoride GWP - Global warming potential SO2 - Sulfur dioxide HC - Hydro carbons TEU - Twenty-foot equivalent unit HFCs - Hydrofluorocarbons TTW - Tank-to-wheel IPCC - Intergovernmental Panel on Climate Change ULD - Unit load device ISO - International organization for standardization UNFCCC - United Nations Framework Convention on Climate Change LC - Life cycle WTW - Well-to-wheel LOLO - Lift-on Lift-off Part I - p. 5 Symbols Symbol Unit Explanation Erklärung Symbol Unit Explanation Erklärung π΄ [m²] Floor area Grundfläche π‘ππ [tkm] Transport performance Transportleistung π [-] Correction factor Korrekturfaktor π [d] Time Dauer π [km] Transport distance Transportentfernung π€π [-] Working days Arbeitstage π [kg/…], [MJ/…] Specific emissions or energy consumption spezifische Emissionen oder Energieverbrauch π£ [km/h] Speed Geschwindigkeit πΈ [kg, MJ] Emission or energy consumption Emission oder Energieverbrauch π [m3] Volume Volumen πΈπΉπ΄ [kg CO2e/...] Emission factor Emissionsfaktor % [-] Ratio Anteil ππ‘ππ [-] Service item Leistungsobjekt πΌ [-] Allocation factor refrigerated (storage) Allokationsfaktor gekühlter Lager π½ [-] Allocation factor order-picking (storage) Allokationsfaktor Kommissionierung πΎ [-] Allocation factor refrigerated transport Allokationsfaktor gekühlter Transport π [kg] Mass of goods Warenbruttogewicht πππ [pkm] Passenger kilometer Personenkilometer π [kg], [l], [m²], [m³], [kWh], ... Quantity Menge, Anzahl π [kg/km], [l/km],… Specific quantity spez. Menge π [1/d] Inventory turnover ratio Umschlaghäufigkeit π π‘πππ [-] Stock Bestand π π‘π [-] Average number of stop overs Durchschnittliche Anzahl an Zwischenlandungen Part I - p. 6 Indices (1) Index Explanation Erklärung Index Explanation Erklärung ππ πππππ πππ πππ ππ’π‘π ππ’π₯ πππππ π πππ πππππππππ ππππππ‘ πΆπ2 π Allokationsziel Verwaltung ungekühlt, trocken Lufttransport Automatisierungsgrad ZusatzBinnenschifffahrt Ladeeinheit Autoreise Papier, Pappe, Kartonage Kundenebene CO2-Äquivalente Distributionsstandort inkl. Kommissionieren Vorgabewert leer π Goods, cargo Ware, Transportgut πππππππ General Übergeordnet π&π Goods and passenger Fracht und Passagier β Hour Stunde π Variable i Variable i πππ Infrastructure Infrastruktur πππ‘ Internal process (Scope 1&2) interner Prozess (Scope 1&2) ππ‘ππ Service item Leistungsobjekt π Variable j Variable j π Variable k Variable k ππ Distance Entfernung ππ Logistics service Logistikdienstleistung πππππ’ππ‘ π Allocation objective Administration Ambient Air transport Level of automation Auxiliary Barge, inland water transport Container Travel by car Cardboard Client level CO2 equivalents Distribution center incl. order-picking Default value Empty π Material Material ππππ Main Haupt- ππ Energy carrier Energieträger πππ₯ππ Mixed Gemischt ππ (βπππ‘πππ) Energy carriers for heating Heizenergieträger ππππ Transport mode Verkehrsträger ππ (ππ‘βππ) Energy carriers for others than heating Energieträger für Nichtheizzwecke ππ’ππ‘π-πππππ Multi-modal Multi-modal ππ ππ€ Material and waste Material und Abfall Environmental indicator Umweltindikator ππππ Electricity Strom π² Floor area Grundfläche ππππ − πππ₯ Electricity-mix Strommix π³ Volume Volumen ππππππ¦ππ Employee Mitarbeiter πππ‘πππ National national ππ₯π‘ External process (Scope 3) externer Prozess (Scope 3) ππ’π‘ Outgoing goods/freight Warenausgang ππ Part I - p. 7 Indices (2) Index Explanation Erklärung Index Explanation Erklärung π or πππ π πππππ Person/passengers (employees) Person/Passagier (Mitarbeiter) (π΄) Calculation approach A Berechnungsansatz A πππ (π΅) Calculation approach B Berechnungsansatz B Passenger kilometer Personenkilometer πππππ Travel by plane Flugreise (πΆ) Calculation approach C Berechnungsansatz C ππππ π‘ππ Plastics Kunststoff πΌ ππππ Rail transport Schienentransport Allocation factor refrigerated storage Allokationsfaktor gekühltes Lager refr Refrigerant, refrigerated Kältemittel, gekühlt ππππ Road transport Straßentransport ∗ Extended by the allocated general emissions π Storage Lagerung Um die allokierten übergeordneten Emissionen erhöht π ππ Hochsee-, NearshoreSchifffahrt Ø Average durchschnittlich Sea, maritime transport % Ratio anteilig π βπ’ππ‘ Shunting Rangieren 3.1 Allocation step 3.1 Allokationsschritt 3.1 π ππ‘π Logistics site (transshipment/storage) Logistikstandort (Umschlag/Lager) 40 π‘ Truck class 40 t LKW-Klasse 40 t π πππ Unternehmensspezifisch Transport 100% 100% full 100% gefüllt π‘ Company-specific Transport π‘ππ‘ππ Total, sum Gesamt, Summe π‘ππππ Travel by train Zugreise π‘πππ£ππ Travel Reise π‘π Transshipment Umschlag π£ Vehicle type, transport means Transportmittel π€ Waste Abfall Part I - p. 8 Content General framework Procedure Screening phase (step 1) Calculation of emissions Validation of scope Allocation of emissions Declaration Annex Supplement: Parameters of Green Logistics method Part I - p. 9 Objective of Green Logistics method The overall objective is the realization of a method that - - Allows the ecological comparison between logistics service providers and, if necessary, among modes of transport Is pragmatic and substantiated at the same time (effort vs. significance) Considers the demands of the market, users, society and policy Provides information on optimization opportunities to companies Covers all relevant emissions of logistics services Field of application (users) - Logistics service providers (LSP) for goods Organizers of logistics services Part I - p. 10 Basic principles of the ecological assessment Relevancy Appropriate reflection of environmental indicators(1), such as emissions of the considered logistics services Completeness Coverage of all sub-aspects relevant for logistics services Sub-aspects which are not included shall be disclosed and reasons shall be stated for their exclusion Consistency Consistent assessment allows meaningful performance tracking of emissions over time Changes in assessment scope, input data and other methodological issues are likewise transparently documented Transparency All relevant issues are addressed to ensure a subsequent inspection Relevant assumption procedures for data collection and data sources are disclosed Accuracy Quantification of emissions is neither systematically above nor below reality and uncertainties are reduced as far as practicable Balancing on different level of detail is possible: ο Main drivers of emissions are calculated as exact as possible ο Processes with minor share are considered at a simplified balancing level (1) The Green Logistics method offers an assessment framework for the following environmental indicators: energy consumption; GHG, SO2, NOx, CO, HC emissions. Part I - p. 11 Emissions type Direct emissions Overview of the scopes (GHG Protocol)(1) Scope Definition Examples Scope 1 Emissions from operations that are owned or controlled by the reporting company Emissions from combustion in owned or controlled vehicles, assets, boilers etc.; emissions from loss of refrigerant Scope 2 Emissions from the generation of purchased or acquired electricity, steam, heating or cooling consumed by the reporting company Use of purchased electricity, steam, heating or cooling Scope 3 All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream(2) and downstream(3) emissions Sub-contracted transportation, production and transportation of purchased products Indirect emissions (1) [Scope 3 Standard, Table 5.1] (2) Related to purchased or acquired goods and services (3) Related to sold goods and services Part I - p. 12 Greenhouse gas (GHG) emissions Definition of GHG emissions and data(1) (1) In accordance with UNFCCC/ Kyoto Protocol/ GHG Protocol: CO2, CH4, N2O, HFCs, PFCs(2) Expressed by carbon dioxide equivalent (CO2e); aggregated and converted by using global warming potential (GWP) values (100 years) as published by IPCC see »Supplement« No additional radiative forcing is covered in case of air transport Activity Data Quantitative measurement on the level of activity that results in GHG emissions; e.g., liters of fuel consumed or kilograms of material purchased Emission factor Factor that converts activity data into GHG emissions data; e.g., kg CO2e emitted per liter of fuel consumed Use of life cycle emission factors, which include emissions that occur in the life cycle of the material / product / fuel (well-to-wheel (WTW) emission factors) (1) [Technical Guidance Scope 3, p. 14ff] (2) SF6 and NF3 are irrelevant for logistics services Part I - p. 13 Primary data Definition of GHG emissions and data(1) (2) Data from specific activities within a company’s value chain Including data provided by suppliers or others Collected by e.g. meter readings, purchase records, utility bills, direct monitoring, mass balance, or others including sampling Secondary data Data other than primary data including ο Industry-average-data (e.g., from published databases, statistics, literature studies and industry associations) ο Financial data ο Proxy data(2) (1) [Technical Guidance Scope 3, p. 14ff] (2) In certain cases, companies may use specific data from one activity in the value chain to estimate emissions for another activity in the value chain. This type of data is considered proxy data (secondary data). Part I - p. 14 Demarcation of assessment aspects in logistics services (1) Sub-aspect Characteristics/alternatives (examples) Transport carried out on roads (own vehicle fleet, subcontractors); consideration of drive, additives, provisioning of transportation means(1); upstream activities(2) for means of transport, infrastructure, operating power Tours between locations, collection/distribution tours, pre-/on-carriage of intermodal transport (e.g., road feeder service), (un-)refrigerated Rail transport Transport carried out by rail (own trains, sub-contractors); consideration of drive, additives, provisioning of transportation means(1); upstream activities(2) for means of transport, infrastructure, operating power Short/long-distance traffic, combined traffic (e.g. rolling road), (un-)refrigerated Inland navigation Transport carried out on inland water ways, (own ships, subcontractors); consideration of drive, additives, provisioning of transportation means(1); upstream activities(2) for means of transport, infrastructure, operating power Ferries, RORO or LOLO ships, (un-)refrigerated, containers, piece goods (e.g., wind turbines) Maritime navigation Maritime freight transport (own ships, sub-contractors); consideration of drive, additives, provisioning of transportation means(1); upstream activities(2) for means of transport, infrastructure, operating power High seas and short sea shipping, RORO or LOLO ships, (un-)refrigerated, containers, bulk goods Source Road transport (1) E.g. balance traffic (2) E.g. manufacturing of transportation means, supply of energy carriers Part I - p. 15 Demarcation of assessment aspects in logistics services (2) Characteristics/alternatives (examples) Source Sub-aspect Air transport Air freight transport (own aircrafts, sub-contractors); consideration of drive, additives, provisioning of transportation means(1); upstream activities(2) for means of transport, infrastructure, operating power Transport at a logistics site (e.g. yard logistics, tug drives in the port, shunting); conveying, sorting, warehousing; consideration of drive, energy, transport safety measures, waste; upstream activities for operating power, materials (own and external sites) Logistics sites Freight only, belly freight, mail transportation in passenger aircrafts With/without building shell, (un-)refrigerated; warehouse, distribution/trans-shipment hub/center, mail/parcel center, (intermodal) terminal, port Administration Energy demand for e.g. lighting, IT, heating/cooling Employee commuting Transport of employees between home and work by company-owned and employee-owned transportation means, by public passenger transport Business trips Passenger transport carried out via road, rail, air, water ways (company-owned, sub-contracted) De-/centralized administration Company car, private car, public (train, bus, subway, tramway), pedestrian, bike Flight, company/rental car, private car, public (train, bus, subway, tramway), pedestrian, bike (1) E.g. balance traffic (2) E.g. manufacturing of transportation means, supply of energy carriers Part I - p. 16 Exclusion of sub-aspects with no relevant environmental impact for logistics services(1) Demarcation of assessment aspects in logistics services (3) Production of refrigerants, as well as, provision of dry ice Cleaning processes of transportation means Manufacturing and demolition of the building shell at logistics sites or administration sites Manufacturing processes of intralogistics systems (e.g., conveyor technology) Transport of airplanes by tow tractors Sewage treatment at logistics sites Home office activities of employees Hotel accommodations on business trips Further to be specified (optional) (1) [Green Logistics system definition 2012] Part I - p. 17 Approach A Consumption based approach Approach B Distance based approach Approach C Key figure based approach Basic calculation approaches and their level of detail Company-specific consumption data (e.g., fuel in liter, packing foil in kg, electricity in kWh) is used for the calculation of emissions. This is a detailed approach that requires the highest degree of data collection and data analysis (primary data). ο Approach A is to be used by all company processes (scope 1/2), external transportation and processes at external logistics sites (scope 3) in the long-term. Complementary approach for the area of transportation: Use of company-specific data (e.g., composition of the fleet in use and degrees of utilization) for the description of transport performance in combination with database values. ο This approach is allowed for processes relating to scope 3. Company-specific key figures are used for process description, e.g., transport performance on the road. These key figures are converted by means of average emission factors, whereas industry averages for the logistics services (e.g., used technology, average effectiveness of the process) are taken as a basis. ο Approach C is used in the first step of Green Logistics method to estimate the relevance of the emission sources. ο Approach C may only be applied in the actual assessment (step 2) for less relevant sub-processes, scope 3 business trips and employee commuting. Part I - p. 18 Step 1 Background of selected level of detail of ecological assessment Screening phase Industry average Step 2 Is it a scope 1/2 or a relevant scope 3 process? Approach C no yes no Is activity data on-hand? no Transport: Is data on fleet composition(1) on-hand? yes yes Approach B Approach A Green Logistics method defines a minimum standard, higher levels of detail are optional. Company-specific Reasons for a more detailed approach (i.e. more company-specific) e.g., - Detailed objectives of assessment results, allocation of emissions and reporting (e.g., customer-specific) - Expected impact of sub-aspects on overall results - Options of influencing emissions of specific sub-aspects, monitoring of improvements - Change in sub-contracted services/processes - Requirements of stakeholders or shareholders - Expected general business risks (1) E.g. vehicle classes, load factors