Green Supply Chain
Anna Deshko
1
We can help our customers in becoming “greener” to satisfy stakeholders’
requirements and reveal potential for increasing efficiency of their supply
chains
2
Carbon Emissions – a Global Challenge
With global warming being recognised as one of the largest challenges of this
century, carbon emissions are increasingly becoming the centre of attention
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
3
Some examples of the carbon footprints when transporting
goods
Transport of tuna from Spain to
Japan
Transport of 1 pair of shoes
450 kg
CO2
372 g
CO2
Spain
China
North
Europe
20 KM
0 KM
Japan
7500
kg CO2
3700 g
CO2
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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
Change in CO 2 emission in UE
EU (1990-2004)
26%
Transport
-3%
Energy industries
-4%
Residential
-5%
Average
-10%
Other (non-energy)
-11%
Services
-12%
Industrial processes
-13%
Agriculture
Industry (energy)
Waste
Fugitive emissions
-15%
-33%
-36%
-40%
-30%
-20%
-10%
Source: European Logistics Users Providers and Enablers Group ( ELUPEG)
0%
10%
20%
30%
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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 scope
The scope can cover supply chain activities from the pick-up at the vendor’s
factory until delivery to the point of sale
Factory
Truck/
Rail/
Barge
CFS
facilities
Load
port
Ocean/
Air





Discharge
port

Truck/
Rail/
Barge
DC
Truck
Point of
sale




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SupplyChain CarbonCheck™ - a standardised approach
4-step methodology based on internationally recognized emission standards
Implement
solutions
Simulate carbon footprint &
costs of alternative scenarios
2
4
3
Evaluate CO2 emission & cost
reduction potential
1
Estimate current supply
chain carbon footprint & costs
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Step 1: Estimate Current Carbon Footprint
As a first step, we map your current carbon emissions and provide you with a
snap-shot of the carbon footprint of your supply chain
1
Estimate
2
Simulate
Carbon Footprint Calculator
3
4
Evaluate
Implement
Carbon mapping of current supply chain
with Maersk Carbon Footprint Calculator
Global supply chain scope
Internationally recognised
emission standards &
calculation methodology
‘AS IS’
A
Result: Snap-shot of the supply chain’s
current carbon footprint – the ‘AS IS’ scenario
B
C
D
A
B
C
D
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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
1
Estimate
2
Simulate
TO BE 1
3
Evaluate
4
Implement
A
B
C
D
C
D
AS IS
Simulation of alternative supply chain setups – ‘TO BE’ scenarios
Calculation of carbon emissions and total
supply chain costs for each scenario
TO BE
2
A
B
C
D
A
Comparison of ‘TO BE’ scenario with
‘AS IS’ scenarios
B
TO BE 3
Identification of CO2 reduction potentials
A
B
C
D
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Step 3: Evaluate CO2 Reduction Potentials
Reduction potentials are evaluated under various aspects
1
2
Estimate
Simulate
3
4
Evaluate
Implement
Evaluate carbon reduction potentials based on:
Strategic fit
Impact on carbon footprint
?
Impact on total supply chain costs
Ease of implementation
Concrete recommendations for implementation
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Step 4: Implement Solutions
Maersk Logistics assists in implementing the agreed solutions, thus helping you tap
the full potential of carbon footprint reduction in your supply chain
1
Estimate
CO2 Reduction
3
2
Simulate
4
Evaluate
Implement
Preparation of roadmap for implementation
Solution C
Maersk Logistics assists in putting agreed
solutions into practice
Estimation of actual achievements in reducing
carbon emissions after implementation
phase
Solution B
Solution A
Time
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What have we done so far?
Case Studies
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What have we done so far? – case study 1
In this study, we have analyzed the environmental impact of alternative
transportation modes
The Project
> An electronics company exporting goods from Barcelona to Denmark
> Environmental impact analysis of two scenarios: Truck vs. Multimodal
Results
> The analysis reveals that trucking alternative represents more than 3 times
more CO2 emissions compared to multimodal transportation
Total CO2 (KGs)
Truck
Multimodal
Savings
197.120
65.224
131.896
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Alternative 1 – Truck
Total CO2 emissions: 197.120 KGs
Factory
(Barcelona)
Warehouse
(Denmark)
Alternative 2 – Multimodal
Total CO2 emissions: 65.244 KGs
Factory
(Barcelona)
Truck
DC
(Spain)
Rail
DC
(Copenhagen)
Truck
Warehouse
(Denmark)
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What have we done so far? – case study 2
The aim of the study was to identify main drivers of carbon emissions in the
supply chain and provide alternatives to reduce carbon footprint and costs
The project
> A leading health and beauty group – Alliance Boots
> Exports from Asia to United Kingdom
The Scope
Factory
Truck/
Rail/
Barge
CFS
facilities
Load
port
Ocean/
Air
Discharge
port
Truck/
Rail
DC
Truck
Point of
sale
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What have we done?
Estimated current carbon footprint & costs
 Simulated carbon footprint & costs for alternative scenarios
 Evaluated CO emission & cost reduction potentials with Boots
 Helped Boots to implement solutions
2
Results
29% reduction in CO2 emissions
21% reduction in supply chain costs
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Results – 29% CO2 reduction
The supply chain improvement initiatives led to 29% reduction in CO2
(per cubic metre)
80
70
Reduction
60
terminal handling
reduction
increased equipment
utilisation
improved weight
efficiency (air)
air shipment reduction
50
40
30
carbon emissions
(kg/cbm)
20
10
0
2004
2007
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Results – 21% cost reduction
Lower carbon emissions come along with lower logistics costs – a win-win
situation for you and the environment!
Reduction
terminal handling
reduction
increase in
container utilization
air shipment
reduction
USD / cubic meter
without initiatives
2007
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What have we done so far? – case study 3
In this study we have estimated the carbon footprint from supply chain
related activities
The project
> An American retailing brand
> Global supply chain with imports to USA
The Scope
Factory
Truck
CFS
facilities
Load
port
Ocean/
Air
Discharge
port
Truck/
Rail
DC
Truck
Point of
sale
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Results – 57,59 million CO2 for shipments in 2007
On average, each cubic meter shipped had a carbon footprint of 101 kg
What does this mean?*
Rail
Ocean
Truck
57,59 million KGs of CO2 is
equivalent to;
> 10,548 passenger cars
not driven for one year
> 133,939 barrels of oil
Air
* : http://www.epa.gov/cleanenergy/energy-resources/calculator.html
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Your guide to greener supply chains - SupplyChain CarbonCheck™
Transport
Carrier
Selection
Network
Distribution
Optimization
A
Greener
Supply
Chain
Transport
Mode
Optimization
Equipment
Utilization
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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Wal-Mart’s Green Ratings
WSJ article, July 17, 2009
“Wal-Mart to Assign New ‘Green’ Ratings”
http://www.saboxgreen.it/img/Wal%20Mart%20nuove%20etichette.pdf
Sustainability Consulting to Wal-Mart Suppliers
http://www.sustainabilityconsulting.com/walmart
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Additional Information
• How to Engage Suppliers in Sustainability
http://www.ethicalcorp.com/supplychain/docs/6th-annual-supply-chain-summit.pdf
• http://www.greenprof.org/?cat=42
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THANK YOU FOR YOUR TIME
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