Green Supply Chain

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Green Supply Chain Anna Deshko
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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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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

• 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

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Some examples of the carbon footprints when
transporting goods

• Transport of tuna from Spain to Japan

• Transport of 1 pair of shoes

372 g CO2
450 kg CO2
North Europe
China
Spain
Japan
20 KM
0 KM
3700 g CO2
7500 kg 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
EU
Transport
Energy industries
Residential
Average
Other (non-energy)
Services
Industrial processes
Agriculture
Industry (energy)
Waste
Fugitive emissions
Source European Logistics Users Providers and
Enablers Group ( ELUPEG)
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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 vendors factory until
delivery to the point of sale
Truck/Rail/Barge
Truck/Rail/Barge
Load port
CFS facilities
Ocean/Air
Discharge port
Point of sale
Factory
DC
Truck
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SupplyChain CarbonCheck - a standardised
approach4-step methodology based on
internationally recognized emission standards
Implement solutions
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Simulate carbon footprint costs of alternative
scenarios
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Evaluate CO2 emission cost reduction potential
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Estimate current supply chain carbon footprint
costs
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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
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1
2
4
Estimate
Simulate
Evaluate
Implement

• Carbon mapping of current supply chainwith
  Maersk Carbon Footprint Calculator
• Result Snap-shot of the supply chainscurrent
  carbon footprint the AS IS scenario

AS IS
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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
TO BE 1
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1
2
4
Estimate
Simulate
Evaluate
Implement
AS IS

• 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 withAS IS
  scenarios
• Identification of CO2 reduction potentials

TO BE 2
TO BE 3
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Step 3 Evaluate CO2 Reduction PotentialsReductio
n potentials are evaluated under various aspects
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1
2
4
Estimate
Simulate
Evaluate
Implement

• Evaluate carbon reduction potentials based on

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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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
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1
2
4
Estimate
Simulate
Evaluate
Implement
Solution C

• 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

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 1In 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 197.120
Multimodal 65.224
Savings 131.896
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Alternative 1 TruckTotal CO2 emissions
197.120 KGs
Factory (Barcelona)
Warehouse (Denmark)
Alternative 2 MultimodalTotal CO2 emissions
65.244 KGs
Factory (Barcelona)
DC (Spain)
DC (Copenhagen)
Rail
Truck
Truck
Warehouse (Denmark)
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What have we done so far? case study 2The 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
Truck/Rail/Barge
Load port
CFS facilities
Ocean/Air
Discharge port
Point of sale
Truck/Rail
DC
Truck
Factory
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• What have we done?
• Estimated current carbon footprint costs
• Simulated carbon footprint costs for
  alternative scenarios
• Evaluated CO2 emission cost reduction
  potentials with Boots
• Helped Boots to implement solutions

Results
29 reduction in CO2 emissions 21 reduction in
supply chain costs
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Results 29 CO2 reductionThe supply chain
improvement initiatives led to 29 reduction in
CO2 (per cubic metre)
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Results 21 cost reductionLower carbon
emissions come along with lower logistics costs
a win-win situation for you and the environment!
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What have we done so far? case study 3In 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
Truck/Rail
Factory
Load port
CFS facilities
Truck
Ocean/Air
Discharge port
Point of sale
DC
Truck
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Results 57,59 million CO2 for shipments in
2007On average, each cubic meter shipped had a
carbon footprint of 101 kg

• What does this mean?
  
• 57,59 million KGs of CO2 is equivalent to
• 10,548 passenger cars not driven for one
  year
• 133,939 barrels of oil

Port/Whs
Rail
Ocean
Truck
Air
http//www.epa.gov/cleanenergy/energy-resource
s/calculator.html
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Your guide to greener supply chains - SupplyChain
CarbonCheck
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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-Marts Green Ratings
WSJ article, July 17, 2009 Wal-Mart to Assign
New Green Ratings http//www.saboxgreen.it/img/
Wal20Mart20nuove20etichette.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-an
  nual-supply-chain-summit.pdf
• http//www.greenprof.org/?cat42

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THANK YOU FOR YOUR TIME