Env Performance 2008
Environmental Performance 2008 SCHENKER AG
Delivered by Environmental Management Team Head Office, Essen July 1, 2008
Table of Content
0. Preface 1. Climate change as a challenge for logistics 2. Climate protection target from DB 3. Environmental performance of DB Schenker – general remarks 4. CO2 Reduction Targets and Measures 5. ISO 14001 Status 6. Carbon Footprint Calculation 7. a) CO2 reduction projects in the supply chain b) Vehicle Fleet c) Driver Training d) Environmental Training e) Evaluation of Subcontractors f ) Energy consumption and waste management 8. Country Environmental Targets 9. Best practice projects 10. a) Environmental Management Structure b) Central Audits c) Public presence d) Customer Demands e) Environmental engagement and perspectives 11. Abbreviations 12. Verification Statement for CO2 emission calculation ISO 14064
0. Preface
Dear Reader, efficient transportation and logistics services and environmental protection are not a contradiction in terms. For our business units, land transport, air and ocean freight and contract logistics under the umbrella of DB Schenker, the two already go hand in hand. For any company which transports large volumes of goods also has a great responsibility towards the environment. In a market in which the number of transport chains is steadily growing and logistics services are becoming ever more complex, we are fully aware of the enormous challenge facing us. Saving resources, using energy efficiently and reducing CO2 emissions are therefore cornerstones of our business strategy. And our customers are now also providing us with fresh ideas. Their sensitivity to climate protection issues has increased considerably in recent years. For many companies, our commitment to the environment is an important reason for choosing our company again and again. Furthermore, as part of Deutsche Bahn, we are bound by the Group’s climate protection programme. Commitment to the environment has been anchored in DB’s corporate policy for many years. It is DB’s declared target to reduce CO2 emissions by 20% throughout the Group by 2020 compared with 2006. This can only be achieved if all divisions and companies of DB pull together. We at DB Schenker are playing our part. This report describes in detail the current situation with regard to environmental protection, explains our targets and strategies to achieve the planned cuts in CO2 and also features some pioneering innovations. For example, our customers can see for the first time the CO2 footprint of our business units, land transport, air and ocean freight and contract logistics. This is also the basis for our future, comprehensive eco-controlling and environmental management system. Moreover, we demonstrate that environment-friendly action at DB Schenker is above all a question of the modal split. That means we plan the transport chain of our customers not only from an economic point of view but also from the ecological aspect. At the same time, it is the right mix of many individual climate-friendly measures which helps to reduce the impact on the environment and also improves our customers’ CO2 footprints – measures ranging from training courses for drivers on fuel-efficient driving and the gradual replacement of older vehicles to preventing empty runs through our worldwide hub system. We are offering this environmental performance report exclusively online. This not only increases its availability but also benefits the environment as large quantities of paper are saved. With just a few clicks you can find all the important information and can contact the DB Schenker environmental team by email. I hope you enjoy reading it. Dr. Thomas Lieb
1. Climate change as a challenge challenge for logistics
The provision of logistics services causes CO2 emissions. Transport is the second largest CO2 emitter after the energygenerating industry. Globalization is significantly increasing transport volumes. As one of the world’s leading logistics providers, Schenker is aware of its responsibility towards the environment and nature. DB Schenker has set up a climate-friendly programme and intends to step up its climate protection activities. DB Schenker has realized that its customers are also becoming increasingly sensitized to environmental issues. A company’s environmental behaviour is becoming more and more an image factor. As DB Schenker improves its own ecological balance, its customers also benefit (value added).
2. Climate protection target from DB
Climate protection has a long tradition in the corporate policy of DB, the holding company of DB Schenker. In 2002, DB launched its second climate protection programme with the aim of reducing the specific CO2 emissions (grams of CO2 per kilometres) by some 20% by 2020 compared with 2006. As part of DB, DB Schenker is committed to this programme and is making an active contribution to achieving this target.
3. Environmental performance of DB Schenker – general remarks
This environmental performance report is a comprehensive collection of data which documents the status quo, outlines improvements and identifies any need for action. This report forms the basis for developing strategies in the coming months so that DB Schenker can make its services increasingly environmentally friendly. With its worldwide activities, DB Schenker is participating in the 2020 climate protection programme of DB. The basis of DB Schenker’s success is its decentralized organization; DB Schenker lives by the principle “think global – act local”. All the information in this report was provided by DB Schenker’s country organizations all over the world. DB Schenker’s head office collects and processes these data.
4. CO2 Reduction Targets and Measures
As mentioned under item 2, Schenker AG participates in the reduction of the specific CO2 emission in accordance with the objectives of Deutsche Bahn. DB Schenker regards this target as a baseline on which it creates its own, additional projects and targets according to country-specific options and conditions. Based on the calculated figures, specific reduction targets will be set up which can be envisaged as follows: aa) Land Transport: Evaluation of potentials such as driver training and the inclusion of subcontractors, adoption and enhancement of telematic systems, internal freight exchange (“Schenker CargoNet” starting October 1, 2008) to reduce empty mileage, constant acquisition of state-of-the art tires, successive acquisition of Euro class 5+6 vehicles will be taken out thoroughly and concrete targets for the countries will be announced by the board, including costs involved, in the course of 2008. In addition, each country has its own targets to increase load factors of the vehicles, e.g., by the implementation of double stack swap bodies and trailers to realize a higher volume. ab) Air Transport: Constant contact and communication with preferred carriers shall open ways to increase emission efficiency on a long-term basis. As a first step a workshop shall take place in September 2008 together with environmental managers of preferred carriers and of the Schenker AG air freight product management to exchange experiences and company targets re. calculation methods and reduction potentials. ac) Ocean Transport: The Schenker AG PM Ocean has set up a speed reduction program together with Hapag Lloyd, one of its top preferred carriers (see item 7a). As a further step a workshop shall take place in September 2008 together with environmental managers of preferred carriers and of the Schenker AG ocean freight product management to further exchange experiences and company targets re. calculation methods and reduction potentials. b) Offices/Terminals: The focus is here on the reduction and/or substitution of fossil energy consumption per sqm, e.g., heat insulation, solar energy (photovoltaic) to be considered for each new facility, internal guidelines for energy saving behaviour etc. Also, the overall recycling rate shall be increased and contribute to a further improved waste management.
5. ISO 14001 Status
Certified Status end of 2008
As per June 2008, 30 European country organisations with 298 branch offices were certified and re-certified according to ISO 14001, two further country organisation (UK and Ireland) will be certified until the end of the year. As an essential target it is intended to certify all country organizations worldwide.
6. Carbon Footprint Calculation
In order to implement CO2 reduction measures to participate in the DB adopted target to reduce specific CO2 emissions by 20% until 2020 (reference year 2006), DB Schenker set up a comprehensive project to calculate its own carbon footprint including
transport activities of all modes of transports globally (including subcontractors) office/terminal operations globally
yet excluding employees’ travel activities and company cars rail activities of its subsidiaries (Hangartner, Fertrans, Railog) which shall be included in the future.
Project SetSet-up The project was set up in March 2008 with a scope of three months to calculate Schenker AG’s CO2 offset from transport and office/terminal operations. The central environmental management team formed a task force to collect and provide all necessary data to an external adviser, Oekoinstitut Berlin/Germany, who calculated the Schenker AG carbon footprint in compliance with the requirements of ISO 14064-1, validated by Deloitte Cert., Duesseldorf/Germany compliant to ISO 14064-1. a) Emissions from Transport Activities aa) Land Transport The focus of the calculation was on land transport as DB Schenker Logistics is operating a fleet of own and sub-contracted trucks (see item 7b) and therefore has a special responsibility to develop reduction measures in this section of road logistics services.
6. Carbon Footprint Calculation
Methodology The Schenker AG Product Management Land Transport/Network Operations provided the total amount of shipment data for one representative week as a basis for extrapolation for the whole year. As DB Schenker’s business is basically nonseasonal, this method was approved by the validating auditor. The shipment data were individually broken up into their supply chain legs (collection, main haulages, distribution), each of them allocated to a relating vehicle size class and load factor, and finally multiplied with an emission factor applicable for such vehicle category (including consideration of the Euro class). Changes of mode of transport (esp. ferries) were also considered and measured separately. The results are as follows: With a total service of close to 43 billion tkm, land transport CO2 emissions amount to close to five million tons in absolute terms and, in relative terms, to 76-87 g/tkm (indirect vs. total) for long-haul traffic and 145-165 g/tkm (indirect vs. total) in collection and distribution traffic. Global CO2 emissions in million tons TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Land Transport worldwide
4.99 million tons
5.67 million tons
Land Transport Europe*) Europe*)
4.70 million tons
5.34 million tons
Land Transport U.S./BAX
0.29 million tons
0.33 million tons
*) including special transports (exhibitions, sport events, moves)
6. Carbon Footprint Calculation
Specific CO2 emissions in g/tkm (references to real weight) TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Total transport service Europe in tkm (including ferries)
42,810 million tkm
Average g/tkm Longhaul transports/Europe*) transports/Europe*)
76 g/tkm
87 g/tkm
Average g/tkm CoDi transports/Europe
145 g/tkm
165 g/tkm
*) without ferries
6. Carbon Footprint Calculation
ab) Air Transports The most emission-intense service is DB Schenker’s air freight business. However, DB Schenker does not own an aircraft fleet and depends wholly on subcontractors, i.e., preferred air carriers. Methodology Schenker AG Product Management Air provided the total amount of shipments for the whole year of 2007 on all major tradelanes and with the most frequented port-to-port relations. In addition, the fleet structure of the top four preferred carriers was examined, together with statistical air carrier fleet data, and related to average emission factors. Global and specific CO2 emissions: Air transports also amount to roughly five million tons CO2 in absolute terms, however, with a total transport service of 7.7 billion tkm. The average direct emission per tkm is 650 g CO2 and 741 g CO2 total emissions: TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Air Freight worldwide incl. prepre-/on/on-carriage road transport
5.03 million tons
5.73 million tons
Thereof Air Freight U.S. domestic (BAX) (without prepre-/on/oncarriage; = part of the U.S. land transport network)
0.22 million tons
0.26 million tons
Total transport service in tkm (without prepre-/on/oncarriage)
7,722 million tkm
Specific air freight emissions in g/tkm (without prepre-/on/oncarriage)
650 g/tkm
741 g/tkm
6. Carbon Footprint Calculation
ac) Ocean Transports The relatively smallest transport emission source (less than 20%) is DB Schenker’s ocean business. DB Schenker also does not own an ocean vessel fleet and depends wholly on subcontractors, i.e., preferred ocean carriers. Methodology Schenker AG Product Management Ocean provided the total amount of shipments for the whole year of 2007 on all major tradelanes and with the most frequented (400) port-to-port relations. In addition, the fleet structure of the top six preferred carriers was examined and related to average emission factors. Global and specific CO2 emissions: Ocean transports account for the biggest share of transport services in the amount of close to 200 billion tkm while at the same time only showing 2.26 million tons CO2 in absolute emissions and 10-12 g/tkm specific emissions:
TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Ocean Freight worldwide incl. prepre/on/on-carriage road+rail transport
2.26 million tons
2.53 million tons
Total transport service in tkm incl. project shipping (without pre/onpre/on-c.)
198,803 million tkm
Specific ocean freight emissions in average g t/km
10 g/tkm
12 g/tkm
Summary of DB Schenker’s transport carbon footprint (CO2 emissions in absolute terms):
6. Carbon Footprint Calculation
Global Transport CO2 Emissions
7 5.73
5.67
6
5.03
4.99 million tons CO2
5
Left columns: direct emissions
4 3
2.53
2.26
Right columns: total emissions
2 1 0 Land Transport
Air Freight
Ocean Freight
Mode of Transport
Comparison of transport service in tkm and average g/tkm CO2 emissions: For the sake of comparability between the modes of transport, one has to refer to the transport service in total tkm as well as to the average CO2 emission in g/tkm: Average CO2 emissions per mode of transport in g/tkm
Transport Service in mio. tkm 250,000
900 795
800 200,000
741
700 619 600
150,000
500 400
100,000
300 165
200
50,000
111 100
86 12
0
0 Land Transport
Air Freight Mode of Transport
Ocean Freight
Land Transport
Air Freight
Ocean Freight
Mode of Transport
The average g/tkm CO2 emissions per mode of transport highly depend on the size of the engine/vehicle, i.e., air inter-continental vs. domestic transport varies between 600 to 1,200 g/tkm (w:w) and road longhaul vs. collection & distribution transport varies between 85 and 160 g/tkm (w:w). The indicated average is a carefully calculated mix of the DB Schenker transports per mode.
6. Carbon Footprint Calculation
b) Office/Terminal Office/Terminal Operations As fossil energy consumption in the daily business contributes to CO2 emissions, respective parameters were set up to obtain the necessary data basis: electricity consumption, related to an average country electricity mix (fossil energy sources of power plants and the production process); district heating with recycled/secondary energy as its source; heating oil and gas consumption; diesel and gas consumption for fork lifts. Direct and total CO2 emissions*): Direct CO2 emissions
Total CO2 emissions (+ electricity + energy production)
Terminals/offices in Europe
29,700 tons
106,708 tons
Terminals/offices outside Europe
14,300 tons
56,600 tons
Terminals/offices worldwide
44,000 tons
163,308 tons
*) extrapolated from 50% actual figures
Schenker AG’ AG’s total carbon footprint within the limits set out in item 4 amounts to 12.3 million tons direct emissions and 14.1 million tons total emissions. SHARE OF WELLWELL-TOTO-WHEEL (INDIRECT) CO2 EMISSIIONS PER EMISSION SOURCE IN % Land Transport Europe Land Transport U.S. Air Freight global (without U.S. domestic) Air Freight U.S. Domestic (Bax) Ocean Freight incl. Break Bulk 0.4 17.9
Terminals Europe
0.8
Terminals non-Europe 37.9
1.8
38.9
2.4
7a) CO2 Reduction Projects in the Supply Chain
The following three examples shall give an overview of central projects already in place to contribute to an environmentally friendly supply chain management for DB Schenker’ Schenker’s customers: customers: * Speed Reduction Project with Hapag Lloyd In 2006 Schenker AG and Hapag Lloyd, a top preferred carrier of the ocean freight business, concluded an agreement to jointly promote a speed reduction project which offers a “green” tradelane on the Asia-Europe loop. By a speed reduction of 15% (23.5 knots instead of 20 knots per hour) a CO2 emission reduction of 30% per t/km is obtained while transport time is increased by roughly 15% (3-4 days). A leaflet was published which is offered as a template to the ocean freight country managers as well as to the global tender management to actively promote this product for the customers according to country-specific conditions. * Combining Air and Ocean Transport: DB SCHENKERskybridge DB SCHENKERskybridge offers a combination of air and ocean transports with central hubs in Dubai and Vancouver which reduces transport times by 30-50% compared to ocean transports and up to 50% of CO2 emissions compared to air transports. It may serve as an alternative mode of transport for “medium” time-sensitive goods. For more information please contact: Dennis Firzlaff in Dubai at [email protected] • Schenker AG is working together with a partner carrier, Containerships CSG GmbH, to promote short sea alternatives in the Baltic Sea. One of the most preferred tradelane is Hamburg – St. Petersburg.
7a) CO2 Reduction Projects in the Supply Chain
For more information please contact: Thorsten Diephaus at [email protected] • TransTrans-Siberian Railway: This product is promoted by DB Schenker to save up to 95% of CO2 emissions on the China – Europe tradelane (depending on the shifted mode of transport; i.e., the maximum emission reduction is to be achieved by transport shifts from air to rail). The lead times compare to sky-bridge (air/ocean) transports (14-17 days). The routes below show the alternative modes of air, air-ocean, ocean and rail transport. Costs
CO2 Lead Times emissions
AIR
SKYBRIDGE
TRAIN
OCEAN
For more information please contact: Hartmut Albers at [email protected]
7b) Vehicle Fleet
As mentioned above DB Schenker Logistics is operating a fleet of own and subcontracted trucks in Europe. Therefore, it constantly renews not only its own fleet but also takes care of the state-of-the-art condition of its sub-contractors’ fleets. One of the best practice fleet managements is run by Schenker Deutschland AG which supervises an own fleet of 843 linehaul trucks plus a fleet of 583 vehicles owned by subcontractors. Of the own fleet 246 are Euro class 5 vehicles (29%), and the subcontractors’ fleet include 83 Euro class 5 trucks (14%). As a comparison: The overall share of the 2.3 million trucks run in Germany with Euro class 5 currently amounts to 0.94% (21,000)*). DB Schenker Logistics is in the process to thoroughly analyse its fleets on a country by country basis which implies a sophisticated method to reflect all the varieties of fleet control (period of ownership, branding control of subcontractors, spot market etc.).
*)
Source: Kraftfahrzeugbundesamt Flensburg [Authority for Vehicles in Flensburg/Germany], see: http://www.kbashop.de/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10051&categoryId= 10014&storeId=10001&productId=10702&langId=-3&parent_category_rn=10014&top_category=10002
7c) Driver Training
As Schenker AG land transport delegates 85% of its services to subcontractors it is essential to successively include subcontractors’ drivers into the standardised driver training measures. For the time being 39% of the countries include subcontractors’ drivers, out of them the vast majority (92%) include up to 75% of subcontractors’ drivers and close to half of them (42%) even up to 100%. DB Schenker will continue to encourage especially those country organisations which highly depend on subcontractors to include them in their driver training programs.
7d) Environmental Training
94% of the European countries offer environmental training to their employees, 55% on a regular, mostly annual, basis. Country organisations with regular trainings are predominantly based in the former EU 15 countries whereas in the new EU countries they have to successively adopt environmental standards. Schenker AG country organisations highly reflect the economic and environmental legal and awareness status of the respective countries. On a central basis, guidelines for basic training issues will be developed to ensure a basic standard of regular training in the countries. Moreover, environmental and driver training, the qualification of Schenker AG staff and its subcontractors, will be a key target to contribute to DB Schenker’s overall environmental conduct and prestige. As a further milestone hereto an IQP was set up to research, by way of a SWOT analysis, potentials re. waste handling: the selling of waste; document management system (IT-related); combined transport (energy saving); Eco-driving (energy saving). The results will be presented by the end of the year 2008 and included in the Schenker AG environmental performance report 2009.
7e) Evaluation of Subcontractors
90% of the countries evaluate their subcontractors in land transport, further 19% evaluate air carriers and 23% ocean carriers. All countries check once a year on a standardised basis the vehicle fleet of their subcontractors in terms of Euro classes, 84% put express environmental demands on the subcontractor, 24% in the form of a signed contract (including explicit environmental demands). 19% explicitly demand Euro class 3-5 vehicles from their subcontractors. 23% of the countries give a detailed feedback to their subcontractors with the risk to be classified as a non-preferred carrier (explicitly: 57% of them). As a consequence, the country organisations which highly depend on subcontractors shall be encouraged to regularly check subcontractors by inspections or by evaluated questionnaires. With such kind of supervision DB Schenker assists its subcontractors to successively raise the standard of subcontractors’ environmental awareness and activities.
7f) Energy consumption and waste management
Primary energy calculation and reduction policies are set up on a country basis in compliance with the country’s legal requirements and, in addition, according to the country management’s targets to set standards in the market. Nevertheless, Schenker AG is seeking for more coordination and standardization also in the field of handling and reducing primary energy and therefore has set up a central survey in March 2008 to collect environmental parameters of energy and water consumption, waste management etc. from all European and nonEuropean DB Schenker country organisations. The data were checked in their quality and plausibility by an external advising company, Oekoinstitut Berlin, and the calculation methods have been validated by Deloitte Cert., Duesseldorf. Results: Region
Electricity in kWh/a
Heating oil in l/a
Heating gas in cbm/a cbm/a
District Heating in kWh/a
Water consumpconsump-tion in cbm/a cbm/a
Waste production in tons/a
Recycled waste in kg and %
Total Schenker AG worldwide*)
270,718,918
1,149,706
12,130,131
45,876,259
1,014,385
44,419
26,843 = 60%
*) 62 country organisations, ca. 3 million sqm
As the data have been partly extrapolated from actual figures, continuous data collection and comparison shall enable adjustments as well as more in-depth analyses.
8. Country environmental targets
Country targets and related environmental activities are set at the discretion of the country management and subject to local conditions and requirements. In a survey of European countries conducted by the central environmental management, several aspects of environmental targets and activities were quested to create an overview of DB Schenker’s environmental engagement. The poll included 31 DB Schenker European country organisations. Percentage figures below refer to these 31 respondents as 100%. Items 8-13 are dedicated to represent the variety of such engagement in some key data and exemplary cases. The figures (percentages) are based on self-disclosure statements and shall be read as indications and proportions. Nearly all respondents (94%) have environmental educational measures for their organisations in place. In addition, most of them (87%) have an explicit policy with general environmental targets, focussing on transport services, savings of fossil energy consumption and improvement of waste management. A variety of measures is implemented, such as energy saving illumination, decrease rates of water and fossil energy consumption per capita, increase of recycling rate of waste etc. Measures to reduce environmental impact are focussed in the following proportion: 71% have reported specific measures. Of all mentioned and specified indications which are included in this evaluation (49 entries = 100%)
52% refer to the improvement of environmental transport efficiency (load factor, reduction of empty mileage, speed reduction) and fleet management (improvement of Euro classes); 45% refer to the reduction of energy consumption (water, heating oil and gas); 29% refer to waste management (reduction of waste, increase the proportion of recycled waste); 29% refer to the training of staff and drivers on an environmentally friendly conduct (including the use of public transport systems or carpools).
Finally, already 23% of the respondents measure their CO2 emissions while two of them having very ambitious targets in place to reduce their CO2 emissions by 50% until 2020 (reference year 2005). Some of these measures and their constant review serve as a model and will therefore be referred to as “best practice” cases in more detail in item 13. The majority of the countries have specified their measures, most of them with a focus on their transport services. This focus will be supported and extended as the transport system causes the bulk of the emissions, especially CO2 (see item 4).
9. Best practice projects
Countries report on a great variety of future projects to use alternative energy sources (photovoltaic, geo-thermy), to reduce drinking water consumption by rainwater cisterns or secondary water circulation and to increase their recycling rate of waste. Below projects are portrayed as a non-exhaustive selection of highlights. a) First movers emission calculation, alternative engines and fuels Schenker A/S in Denmark is one of the first movers in pro-active environmental engagement and since 1998 advising its clients on emission calculation and reduction issues by a tool which was set up by the environmental pioneer staff in Gothenburg. For its environmental engagement the organisation has gained several rewards, also from customers. Schenker AS in Norway, also a first mover with respect to environmental issues and calculating emissions for its customers, has tested bio-fuels based on 100% of rapeseed. Today, 21 vehicles of their fleet are run with 100% bio-fuel and 35 further ones with a share of 30%. In cooperation with Statoil, DB Schenker in Norway offers 30% blended bio-fuels at gas stations and fuel tanks placed at strategic points in Norway. This “B30” bio-fuel consists of 30% based on biomass and 70% of diesel fuel. In addition, the organisation’s subcontractors are supposed to order two hybrid vehicles to be delivered in 2009. The aim of the Schenker AS in Norway is to reduce specific CO2 emissions by 50% until 2020 (reference year 2005).
9. Best practice projects
Schenker AB in Sweden has announced its target to also reduce CO2 emissions until 2020 in the amount of 50% and introduce reduction rates in a respective presentation on measures such as: fuel efficient driving reduced speed new vehicles, better fuels inter-modality and combined traffic longer vehicles for night traffic better utilization – filling level /less mileage smarter distribution within cities In 2006 Schenker AB initiated a cooperation in Sweden with the common goal of reducing climate impact from transportation on road. This network now represents all key players in the supply chain: truck manufactures, fuel producers, the infrastructure, providers of logistical services, research institutes as well as big purchasers of transport services. Schenker AB in Sweden has prepared pilot projects for testing hybrid trucks and different blended fuels as well as pure DME*) fuel, with a start scheduled in 2009 with the most advanced truck supplier(s). *) Dimethylether
GOAL 2020 To reduce the amount of CO2 discharge from fossil fuels by 50 percent per tkm (compared to 2005).
9. Best practice projects
Schenker N.V. in Belgium have implemented at the warehouse in Willebroek a “natural” cooling system, a night ventilation system, whereby at a temperature of 2°C lower outside compared to the warehouse inside temperature the ventilation starts, and it stops automatically as soon as an adjustable inside temperature is reached. Hereby a daily saving of 612 kWh electricity is achieved.
Moreover, Schenker B.V. in the Netherlands have created an “environmental barometer” for its customers: The so-called "MKB-Milieubarometer" is an online tool to provide an indication of the environmental score and costs of a company. You fill in online all the data for energy, water, fuel, paper consumption etc., and the tool shows: the total environmental score in a diagram graphic of the environmental costs CO2 meter efficiency indicators
b) Telematics Oy Schenker AB in Finland which is running about a quarter of DB Schenker Logistics owned vehicles supervises its drivers with an automated system which observes the driving behaviour re. parameters such as speed, fuel consumption revolutions per minute etc. This allows an exact and continuous control of efficient and environmentally friendly driving:
9. Best practice projects
c) Modal Split Modal split are one of the key measures to reduce emissions in shifting transports to a more environmentally friendly mode of transport, especially from air to ocean and rail and from land transport to waterways. As an example, Schenker S.A. in France is using its country’s waterways for pre- and on-carriage of ocean shipping: In 2007, a total of 9,000 TEUs were shipped on the Seine from/to le Havre, Rouen et Paris on the Rhine between Anvers/Rotterdam and Strasbourg, Mulhouse : on the Rhône between Fos sur mer and Lyon on l‘Escault between Lille, Anvers and Rotterdam Schenker Deutschland AG, Schenker & Co AG in Austria, in cooperation with Hangartner AG, are in the process to shift more than 1,000 tons per week from truck to rail on the route from Rostock to Wels (ca. 1,000 km) thereby reducing CO2 emissions by two thirds. Schenker AG will successively focus on modal split products for its customers to reach considerable emission reductions (see also item 14).
9. Best practice projects
d) Small and beautiful Many Schenker AG subsidiaries contribute to environmental projects individually. In addition to energy saving and emission reduction measures they take part in social events or joint activities which may serve as a model for other organisations. Here just some examples:
PT Schenker Petrolog Utama in Indonesia has joined as one of the pioneering companies the EQUINOX Recycled Paper Solutions initiative "to stop using bleached, rainforest-destructive photocopy/laserprint paper and embrace 100% recycled alternative".
In Macedonia, Schenker DOOL is taking part in the annual “Day of the Tree” when two million trees are planted to re-forest the Macedonian tree population.
Schenker (Thai) Ltd. has participated in the 2007 "Care for Green"-Event initiated by Merck Thailand to reforest unproductive land in the Phra Phradaeng area / Samutprakarn province. A total of 4,144 trees have been donated by DB Schenker.
Schenker-Arkas Nakliyat ve Ticaret A.S. in Turkey, as a special reward to deserving employees, plants ten trees per year on behalf of the employee with the best practice proposal to improve service quality.
10 a) Environmental Management Structure
The Schenker AG environmental management in Europe has been implemented on a decentralized basis, i.e., country organizations have set up their own environmental management systems, mostly in an integrated form, together with quality management, occupational health and job safety, security and/or dangerous goods management. The national environmental managers are collecting and consolidating environmental parameters for their country-specific demands as well as for Schenker AG’s central demands and environmental supervision. They launch and supervise environmental projects. A further layer of environmental management is formed by regional managers, each of them supervising the countries of a geographically defined European region. The regional managers are regularly auditing the countries including site inspections. An approach towards a centralized system was pioneered by dedicated staff in Gothenburg/Sweden which paved the way for a new quality in Schenker AG’s environmental management. Such central management was set up in Essen in May 2007 and consists meanwhile of the following persons: Ulrich Puetz, Ernst-Otto Rau, Dr Norbert Mueller, Andrea Dorothea Schoen. The new environmental management in Essen started the co-operation with the colleagues from BahnUmweltZentrum (center for environment of Deutsche Bahn) in Berlin. It is intended to extend this model to the regions North America, Latin America, Asia Pacific and Near and Middle East Asia.
10 b) Central Audits
In 2007, an environmental questionnaire was developed by the central environmental management team and formed the basis of a series of internal audits, executed by the central environmental management team with start in 2007. By the end of the year 2008, one third of the European countries will have been inspected and reported on internally. The following review items have been focused on: Systematic examination of 55 questions on environment-related issues; further: reduction of CO2 emission: targets, actions; e-learning environment: contents, languages, control of learning success. In this connection, the basic central environmental policies and targets have been communicated: DB has fixed a specific CO2 emission reduction target for all activities (transport and non-transport) of 20 % until year 2020 on the basis of the year 2006; DB Schenker has to participate on a worldwide scale; DB Schenker has to quantify the total CO2 emissions resulting from its activities (transport and non-transport), on a worldwide scale; DB Schenker has to define CO2 emission reduction measures to receive the target mentioned above on a global scale. All country organisations have to contribute to achieve this target.
10 c) Public presence
DB Schenker has established and will further extend its Internet environmental presence as a forum not only to inform customers and interested readers on its services but also to share current available databases and environmental developments. You may have a look at http://www.dbschenker.com/site/logistics/dbschenker/com/en/about__dbschenke r/environment/sustainable__development.html
10 d) Customer Demands
a) Demands to country organisations 77% of the countries face environmental customer demands, 80% of them relating to ISO 14001 certificates and general environmental policies. A smaller amount of them (28%) is more specific, i.e., demand information on Euro classes/vehicle age, on eco driving/environmental training and demand a certain standard of waste management (recycling). 10% demand emission calculation data. Such demands are handled on a country organisation’s basis. To assess how DB Schenker Logistics organisations meet customer demands a so-called customer-compliance indicator was created to compare country-specific environmental targets and activities with country-specific demands. The overall index is 113% (87%:77%) indicating that in proportion slightly more Schenker AG country organisations have environmental policies and targets in place than explicitly demanded by the customer. The indicator re. vehicle and subcontractor evaluations is 391% (90%:23%) which means that subcontractors’ demands and evaluations are taken out on a considerably larger scale than demanded by the customer. The indicator on emission calculation is 100% (10%:10%) meaning that country organisations only calculate emissions on demand by the customer. However (!), as mentioned in item 8, 23% of the respondents already measure their own CO2 emissions being pro-active towards customer demands. Only a miniscule part of the customer demands refer to specific measures such as waste management (8%) or eco driving (8%) or staff environmental training (4%). With respect to them DB Schenker’s environmental measures reach an even higher degree of pro-activity
10 d) Customer Demands
b) Demands to Schenker AG/HO Customers increasingly gain awareness of the climate change risk and develop their own climate saving measures. In this connection they increasingly request from DB Schenker information on its environmental policies and targets (14.a) and equally need calculations and advice on their own footprint from DB Schenker Logistics. Especially in the first months of 2008 such demands increased considerabely and DB Schenker is doing its utmost to comply with these growing demands and expectations. Basically, Schenker AG is in a position to calculate all demanded emissions of all modes of transports globally and thus offer an additional asset to its clients. With the tool EcotransIT customers may calculate their shipment’s emissions on selected routes: http://www.ecotransit.org/greencargo/index.en.phtml
10 e) Environmental engageengagement and perspectives
DB Schenker’s engagement will increase continuously on the basis of the survey results and especially the carbon footprint calculation. Specific targets will be derived and set for the countries complementary to their own engagements to reduce emissions (including CO2) to comply with the ambitious targets set out by Deutsche Bahn. On a central level, Schenker AG is member of the environmental working group of the German Freight Forwarder Association (DSLV) and will approach specific national and international committees involved and engaged in footprint calculations and the creation of calculation standards. Schenker, Inc. USA has recently joined the EPA SmartWay program, a voluntary partnership between various freight industry sectors and EPA that establishes incentives for fuel efficiency improvements and greenhouse gas emissions reductions, including three primary components: creating partnerships, reducing all unnecessary engine idling, and increasing the efficiency and use of rail and intermodal operations. Schenker AB in Sweden is a member of The Network for Transport and Environment (NTM) which is a non profit organisation, initiated in 1993 and aiming at establishing a common database to calculate the environmental impact of various modes of transport. Schenker AG has in return set up its own database of average emission factors for all modes of transports globally and is eager to share such research results with its peers in the market and work on continuous updates.
Schenker AG’ AG’s concrete undertaking for the next 3 to 5 years Educate all drivers about energy efficient driving Phase out all older trucks with Euro 1 & 2 engines Use the most climate friendly diesel in the trucks
11. Abbreviations
HO
Head Office (Essen)
IQP
International Qualifying Project for young Schenker professionals (career building measure)
ISO 14001 (2004)
Environmental management systems – Requirements with guidance for use
ISO 14064-1 (2006)
Greenhouse gases – part 1: Specification with guidance at the organization level for qualification and reporting of greenhouse gas emissions and removals
ISO 14064-3 (2006)
Greenhouse gases – part 3: Specification with guidance for the validation and verification of greenhouse gas emissions
PM
Product Management
SWOT
Strength weakness opportunities threats
12. Verification statement for CO2 emission calculation ISO 14064
Delivered by Environmental Management Team Head Office, Essen July 1, 2008
Table of Content
0. Preface 1. Climate change as a challenge for logistics 2. Climate protection target from DB 3. Environmental performance of DB Schenker – general remarks 4. CO2 Reduction Targets and Measures 5. ISO 14001 Status 6. Carbon Footprint Calculation 7. a) CO2 reduction projects in the supply chain b) Vehicle Fleet c) Driver Training d) Environmental Training e) Evaluation of Subcontractors f ) Energy consumption and waste management 8. Country Environmental Targets 9. Best practice projects 10. a) Environmental Management Structure b) Central Audits c) Public presence d) Customer Demands e) Environmental engagement and perspectives 11. Abbreviations 12. Verification Statement for CO2 emission calculation ISO 14064
0. Preface
Dear Reader, efficient transportation and logistics services and environmental protection are not a contradiction in terms. For our business units, land transport, air and ocean freight and contract logistics under the umbrella of DB Schenker, the two already go hand in hand. For any company which transports large volumes of goods also has a great responsibility towards the environment. In a market in which the number of transport chains is steadily growing and logistics services are becoming ever more complex, we are fully aware of the enormous challenge facing us. Saving resources, using energy efficiently and reducing CO2 emissions are therefore cornerstones of our business strategy. And our customers are now also providing us with fresh ideas. Their sensitivity to climate protection issues has increased considerably in recent years. For many companies, our commitment to the environment is an important reason for choosing our company again and again. Furthermore, as part of Deutsche Bahn, we are bound by the Group’s climate protection programme. Commitment to the environment has been anchored in DB’s corporate policy for many years. It is DB’s declared target to reduce CO2 emissions by 20% throughout the Group by 2020 compared with 2006. This can only be achieved if all divisions and companies of DB pull together. We at DB Schenker are playing our part. This report describes in detail the current situation with regard to environmental protection, explains our targets and strategies to achieve the planned cuts in CO2 and also features some pioneering innovations. For example, our customers can see for the first time the CO2 footprint of our business units, land transport, air and ocean freight and contract logistics. This is also the basis for our future, comprehensive eco-controlling and environmental management system. Moreover, we demonstrate that environment-friendly action at DB Schenker is above all a question of the modal split. That means we plan the transport chain of our customers not only from an economic point of view but also from the ecological aspect. At the same time, it is the right mix of many individual climate-friendly measures which helps to reduce the impact on the environment and also improves our customers’ CO2 footprints – measures ranging from training courses for drivers on fuel-efficient driving and the gradual replacement of older vehicles to preventing empty runs through our worldwide hub system. We are offering this environmental performance report exclusively online. This not only increases its availability but also benefits the environment as large quantities of paper are saved. With just a few clicks you can find all the important information and can contact the DB Schenker environmental team by email. I hope you enjoy reading it. Dr. Thomas Lieb
1. Climate change as a challenge challenge for logistics
The provision of logistics services causes CO2 emissions. Transport is the second largest CO2 emitter after the energygenerating industry. Globalization is significantly increasing transport volumes. As one of the world’s leading logistics providers, Schenker is aware of its responsibility towards the environment and nature. DB Schenker has set up a climate-friendly programme and intends to step up its climate protection activities. DB Schenker has realized that its customers are also becoming increasingly sensitized to environmental issues. A company’s environmental behaviour is becoming more and more an image factor. As DB Schenker improves its own ecological balance, its customers also benefit (value added).
2. Climate protection target from DB
Climate protection has a long tradition in the corporate policy of DB, the holding company of DB Schenker. In 2002, DB launched its second climate protection programme with the aim of reducing the specific CO2 emissions (grams of CO2 per kilometres) by some 20% by 2020 compared with 2006. As part of DB, DB Schenker is committed to this programme and is making an active contribution to achieving this target.
3. Environmental performance of DB Schenker – general remarks
This environmental performance report is a comprehensive collection of data which documents the status quo, outlines improvements and identifies any need for action. This report forms the basis for developing strategies in the coming months so that DB Schenker can make its services increasingly environmentally friendly. With its worldwide activities, DB Schenker is participating in the 2020 climate protection programme of DB. The basis of DB Schenker’s success is its decentralized organization; DB Schenker lives by the principle “think global – act local”. All the information in this report was provided by DB Schenker’s country organizations all over the world. DB Schenker’s head office collects and processes these data.
4. CO2 Reduction Targets and Measures
As mentioned under item 2, Schenker AG participates in the reduction of the specific CO2 emission in accordance with the objectives of Deutsche Bahn. DB Schenker regards this target as a baseline on which it creates its own, additional projects and targets according to country-specific options and conditions. Based on the calculated figures, specific reduction targets will be set up which can be envisaged as follows: aa) Land Transport: Evaluation of potentials such as driver training and the inclusion of subcontractors, adoption and enhancement of telematic systems, internal freight exchange (“Schenker CargoNet” starting October 1, 2008) to reduce empty mileage, constant acquisition of state-of-the art tires, successive acquisition of Euro class 5+6 vehicles will be taken out thoroughly and concrete targets for the countries will be announced by the board, including costs involved, in the course of 2008. In addition, each country has its own targets to increase load factors of the vehicles, e.g., by the implementation of double stack swap bodies and trailers to realize a higher volume. ab) Air Transport: Constant contact and communication with preferred carriers shall open ways to increase emission efficiency on a long-term basis. As a first step a workshop shall take place in September 2008 together with environmental managers of preferred carriers and of the Schenker AG air freight product management to exchange experiences and company targets re. calculation methods and reduction potentials. ac) Ocean Transport: The Schenker AG PM Ocean has set up a speed reduction program together with Hapag Lloyd, one of its top preferred carriers (see item 7a). As a further step a workshop shall take place in September 2008 together with environmental managers of preferred carriers and of the Schenker AG ocean freight product management to further exchange experiences and company targets re. calculation methods and reduction potentials. b) Offices/Terminals: The focus is here on the reduction and/or substitution of fossil energy consumption per sqm, e.g., heat insulation, solar energy (photovoltaic) to be considered for each new facility, internal guidelines for energy saving behaviour etc. Also, the overall recycling rate shall be increased and contribute to a further improved waste management.
5. ISO 14001 Status
Certified Status end of 2008
As per June 2008, 30 European country organisations with 298 branch offices were certified and re-certified according to ISO 14001, two further country organisation (UK and Ireland) will be certified until the end of the year. As an essential target it is intended to certify all country organizations worldwide.
6. Carbon Footprint Calculation
In order to implement CO2 reduction measures to participate in the DB adopted target to reduce specific CO2 emissions by 20% until 2020 (reference year 2006), DB Schenker set up a comprehensive project to calculate its own carbon footprint including
transport activities of all modes of transports globally (including subcontractors) office/terminal operations globally
yet excluding employees’ travel activities and company cars rail activities of its subsidiaries (Hangartner, Fertrans, Railog) which shall be included in the future.
Project SetSet-up The project was set up in March 2008 with a scope of three months to calculate Schenker AG’s CO2 offset from transport and office/terminal operations. The central environmental management team formed a task force to collect and provide all necessary data to an external adviser, Oekoinstitut Berlin/Germany, who calculated the Schenker AG carbon footprint in compliance with the requirements of ISO 14064-1, validated by Deloitte Cert., Duesseldorf/Germany compliant to ISO 14064-1. a) Emissions from Transport Activities aa) Land Transport The focus of the calculation was on land transport as DB Schenker Logistics is operating a fleet of own and sub-contracted trucks (see item 7b) and therefore has a special responsibility to develop reduction measures in this section of road logistics services.
6. Carbon Footprint Calculation
Methodology The Schenker AG Product Management Land Transport/Network Operations provided the total amount of shipment data for one representative week as a basis for extrapolation for the whole year. As DB Schenker’s business is basically nonseasonal, this method was approved by the validating auditor. The shipment data were individually broken up into their supply chain legs (collection, main haulages, distribution), each of them allocated to a relating vehicle size class and load factor, and finally multiplied with an emission factor applicable for such vehicle category (including consideration of the Euro class). Changes of mode of transport (esp. ferries) were also considered and measured separately. The results are as follows: With a total service of close to 43 billion tkm, land transport CO2 emissions amount to close to five million tons in absolute terms and, in relative terms, to 76-87 g/tkm (indirect vs. total) for long-haul traffic and 145-165 g/tkm (indirect vs. total) in collection and distribution traffic. Global CO2 emissions in million tons TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Land Transport worldwide
4.99 million tons
5.67 million tons
Land Transport Europe*) Europe*)
4.70 million tons
5.34 million tons
Land Transport U.S./BAX
0.29 million tons
0.33 million tons
*) including special transports (exhibitions, sport events, moves)
6. Carbon Footprint Calculation
Specific CO2 emissions in g/tkm (references to real weight) TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Total transport service Europe in tkm (including ferries)
42,810 million tkm
Average g/tkm Longhaul transports/Europe*) transports/Europe*)
76 g/tkm
87 g/tkm
Average g/tkm CoDi transports/Europe
145 g/tkm
165 g/tkm
*) without ferries
6. Carbon Footprint Calculation
ab) Air Transports The most emission-intense service is DB Schenker’s air freight business. However, DB Schenker does not own an aircraft fleet and depends wholly on subcontractors, i.e., preferred air carriers. Methodology Schenker AG Product Management Air provided the total amount of shipments for the whole year of 2007 on all major tradelanes and with the most frequented port-to-port relations. In addition, the fleet structure of the top four preferred carriers was examined, together with statistical air carrier fleet data, and related to average emission factors. Global and specific CO2 emissions: Air transports also amount to roughly five million tons CO2 in absolute terms, however, with a total transport service of 7.7 billion tkm. The average direct emission per tkm is 650 g CO2 and 741 g CO2 total emissions: TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Air Freight worldwide incl. prepre-/on/on-carriage road transport
5.03 million tons
5.73 million tons
Thereof Air Freight U.S. domestic (BAX) (without prepre-/on/oncarriage; = part of the U.S. land transport network)
0.22 million tons
0.26 million tons
Total transport service in tkm (without prepre-/on/oncarriage)
7,722 million tkm
Specific air freight emissions in g/tkm (without prepre-/on/oncarriage)
650 g/tkm
741 g/tkm
6. Carbon Footprint Calculation
ac) Ocean Transports The relatively smallest transport emission source (less than 20%) is DB Schenker’s ocean business. DB Schenker also does not own an ocean vessel fleet and depends wholly on subcontractors, i.e., preferred ocean carriers. Methodology Schenker AG Product Management Ocean provided the total amount of shipments for the whole year of 2007 on all major tradelanes and with the most frequented (400) port-to-port relations. In addition, the fleet structure of the top six preferred carriers was examined and related to average emission factors. Global and specific CO2 emissions: Ocean transports account for the biggest share of transport services in the amount of close to 200 billion tkm while at the same time only showing 2.26 million tons CO2 in absolute emissions and 10-12 g/tkm specific emissions:
TankTank-toto-wheel (direct) CO2
WellWell-toto-wheel (total (total) total) CO2
Ocean Freight worldwide incl. prepre/on/on-carriage road+rail transport
2.26 million tons
2.53 million tons
Total transport service in tkm incl. project shipping (without pre/onpre/on-c.)
198,803 million tkm
Specific ocean freight emissions in average g t/km
10 g/tkm
12 g/tkm
Summary of DB Schenker’s transport carbon footprint (CO2 emissions in absolute terms):
6. Carbon Footprint Calculation
Global Transport CO2 Emissions
7 5.73
5.67
6
5.03
4.99 million tons CO2
5
Left columns: direct emissions
4 3
2.53
2.26
Right columns: total emissions
2 1 0 Land Transport
Air Freight
Ocean Freight
Mode of Transport
Comparison of transport service in tkm and average g/tkm CO2 emissions: For the sake of comparability between the modes of transport, one has to refer to the transport service in total tkm as well as to the average CO2 emission in g/tkm: Average CO2 emissions per mode of transport in g/tkm
Transport Service in mio. tkm 250,000
900 795
800 200,000
741
700 619 600
150,000
500 400
100,000
300 165
200
50,000
111 100
86 12
0
0 Land Transport
Air Freight Mode of Transport
Ocean Freight
Land Transport
Air Freight
Ocean Freight
Mode of Transport
The average g/tkm CO2 emissions per mode of transport highly depend on the size of the engine/vehicle, i.e., air inter-continental vs. domestic transport varies between 600 to 1,200 g/tkm (w:w) and road longhaul vs. collection & distribution transport varies between 85 and 160 g/tkm (w:w). The indicated average is a carefully calculated mix of the DB Schenker transports per mode.
6. Carbon Footprint Calculation
b) Office/Terminal Office/Terminal Operations As fossil energy consumption in the daily business contributes to CO2 emissions, respective parameters were set up to obtain the necessary data basis: electricity consumption, related to an average country electricity mix (fossil energy sources of power plants and the production process); district heating with recycled/secondary energy as its source; heating oil and gas consumption; diesel and gas consumption for fork lifts. Direct and total CO2 emissions*): Direct CO2 emissions
Total CO2 emissions (+ electricity + energy production)
Terminals/offices in Europe
29,700 tons
106,708 tons
Terminals/offices outside Europe
14,300 tons
56,600 tons
Terminals/offices worldwide
44,000 tons
163,308 tons
*) extrapolated from 50% actual figures
Schenker AG’ AG’s total carbon footprint within the limits set out in item 4 amounts to 12.3 million tons direct emissions and 14.1 million tons total emissions. SHARE OF WELLWELL-TOTO-WHEEL (INDIRECT) CO2 EMISSIIONS PER EMISSION SOURCE IN % Land Transport Europe Land Transport U.S. Air Freight global (without U.S. domestic) Air Freight U.S. Domestic (Bax) Ocean Freight incl. Break Bulk 0.4 17.9
Terminals Europe
0.8
Terminals non-Europe 37.9
1.8
38.9
2.4
7a) CO2 Reduction Projects in the Supply Chain
The following three examples shall give an overview of central projects already in place to contribute to an environmentally friendly supply chain management for DB Schenker’ Schenker’s customers: customers: * Speed Reduction Project with Hapag Lloyd In 2006 Schenker AG and Hapag Lloyd, a top preferred carrier of the ocean freight business, concluded an agreement to jointly promote a speed reduction project which offers a “green” tradelane on the Asia-Europe loop. By a speed reduction of 15% (23.5 knots instead of 20 knots per hour) a CO2 emission reduction of 30% per t/km is obtained while transport time is increased by roughly 15% (3-4 days). A leaflet was published which is offered as a template to the ocean freight country managers as well as to the global tender management to actively promote this product for the customers according to country-specific conditions. * Combining Air and Ocean Transport: DB SCHENKERskybridge DB SCHENKERskybridge offers a combination of air and ocean transports with central hubs in Dubai and Vancouver which reduces transport times by 30-50% compared to ocean transports and up to 50% of CO2 emissions compared to air transports. It may serve as an alternative mode of transport for “medium” time-sensitive goods. For more information please contact: Dennis Firzlaff in Dubai at [email protected] • Schenker AG is working together with a partner carrier, Containerships CSG GmbH, to promote short sea alternatives in the Baltic Sea. One of the most preferred tradelane is Hamburg – St. Petersburg.
7a) CO2 Reduction Projects in the Supply Chain
For more information please contact: Thorsten Diephaus at [email protected] • TransTrans-Siberian Railway: This product is promoted by DB Schenker to save up to 95% of CO2 emissions on the China – Europe tradelane (depending on the shifted mode of transport; i.e., the maximum emission reduction is to be achieved by transport shifts from air to rail). The lead times compare to sky-bridge (air/ocean) transports (14-17 days). The routes below show the alternative modes of air, air-ocean, ocean and rail transport. Costs
CO2 Lead Times emissions
AIR
SKYBRIDGE
TRAIN
OCEAN
For more information please contact: Hartmut Albers at [email protected]
7b) Vehicle Fleet
As mentioned above DB Schenker Logistics is operating a fleet of own and subcontracted trucks in Europe. Therefore, it constantly renews not only its own fleet but also takes care of the state-of-the-art condition of its sub-contractors’ fleets. One of the best practice fleet managements is run by Schenker Deutschland AG which supervises an own fleet of 843 linehaul trucks plus a fleet of 583 vehicles owned by subcontractors. Of the own fleet 246 are Euro class 5 vehicles (29%), and the subcontractors’ fleet include 83 Euro class 5 trucks (14%). As a comparison: The overall share of the 2.3 million trucks run in Germany with Euro class 5 currently amounts to 0.94% (21,000)*). DB Schenker Logistics is in the process to thoroughly analyse its fleets on a country by country basis which implies a sophisticated method to reflect all the varieties of fleet control (period of ownership, branding control of subcontractors, spot market etc.).
*)
Source: Kraftfahrzeugbundesamt Flensburg [Authority for Vehicles in Flensburg/Germany], see: http://www.kbashop.de/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10051&categoryId= 10014&storeId=10001&productId=10702&langId=-3&parent_category_rn=10014&top_category=10002
7c) Driver Training
As Schenker AG land transport delegates 85% of its services to subcontractors it is essential to successively include subcontractors’ drivers into the standardised driver training measures. For the time being 39% of the countries include subcontractors’ drivers, out of them the vast majority (92%) include up to 75% of subcontractors’ drivers and close to half of them (42%) even up to 100%. DB Schenker will continue to encourage especially those country organisations which highly depend on subcontractors to include them in their driver training programs.
7d) Environmental Training
94% of the European countries offer environmental training to their employees, 55% on a regular, mostly annual, basis. Country organisations with regular trainings are predominantly based in the former EU 15 countries whereas in the new EU countries they have to successively adopt environmental standards. Schenker AG country organisations highly reflect the economic and environmental legal and awareness status of the respective countries. On a central basis, guidelines for basic training issues will be developed to ensure a basic standard of regular training in the countries. Moreover, environmental and driver training, the qualification of Schenker AG staff and its subcontractors, will be a key target to contribute to DB Schenker’s overall environmental conduct and prestige. As a further milestone hereto an IQP was set up to research, by way of a SWOT analysis, potentials re. waste handling: the selling of waste; document management system (IT-related); combined transport (energy saving); Eco-driving (energy saving). The results will be presented by the end of the year 2008 and included in the Schenker AG environmental performance report 2009.
7e) Evaluation of Subcontractors
90% of the countries evaluate their subcontractors in land transport, further 19% evaluate air carriers and 23% ocean carriers. All countries check once a year on a standardised basis the vehicle fleet of their subcontractors in terms of Euro classes, 84% put express environmental demands on the subcontractor, 24% in the form of a signed contract (including explicit environmental demands). 19% explicitly demand Euro class 3-5 vehicles from their subcontractors. 23% of the countries give a detailed feedback to their subcontractors with the risk to be classified as a non-preferred carrier (explicitly: 57% of them). As a consequence, the country organisations which highly depend on subcontractors shall be encouraged to regularly check subcontractors by inspections or by evaluated questionnaires. With such kind of supervision DB Schenker assists its subcontractors to successively raise the standard of subcontractors’ environmental awareness and activities.
7f) Energy consumption and waste management
Primary energy calculation and reduction policies are set up on a country basis in compliance with the country’s legal requirements and, in addition, according to the country management’s targets to set standards in the market. Nevertheless, Schenker AG is seeking for more coordination and standardization also in the field of handling and reducing primary energy and therefore has set up a central survey in March 2008 to collect environmental parameters of energy and water consumption, waste management etc. from all European and nonEuropean DB Schenker country organisations. The data were checked in their quality and plausibility by an external advising company, Oekoinstitut Berlin, and the calculation methods have been validated by Deloitte Cert., Duesseldorf. Results: Region
Electricity in kWh/a
Heating oil in l/a
Heating gas in cbm/a cbm/a
District Heating in kWh/a
Water consumpconsump-tion in cbm/a cbm/a
Waste production in tons/a
Recycled waste in kg and %
Total Schenker AG worldwide*)
270,718,918
1,149,706
12,130,131
45,876,259
1,014,385
44,419
26,843 = 60%
*) 62 country organisations, ca. 3 million sqm
As the data have been partly extrapolated from actual figures, continuous data collection and comparison shall enable adjustments as well as more in-depth analyses.
8. Country environmental targets
Country targets and related environmental activities are set at the discretion of the country management and subject to local conditions and requirements. In a survey of European countries conducted by the central environmental management, several aspects of environmental targets and activities were quested to create an overview of DB Schenker’s environmental engagement. The poll included 31 DB Schenker European country organisations. Percentage figures below refer to these 31 respondents as 100%. Items 8-13 are dedicated to represent the variety of such engagement in some key data and exemplary cases. The figures (percentages) are based on self-disclosure statements and shall be read as indications and proportions. Nearly all respondents (94%) have environmental educational measures for their organisations in place. In addition, most of them (87%) have an explicit policy with general environmental targets, focussing on transport services, savings of fossil energy consumption and improvement of waste management. A variety of measures is implemented, such as energy saving illumination, decrease rates of water and fossil energy consumption per capita, increase of recycling rate of waste etc. Measures to reduce environmental impact are focussed in the following proportion: 71% have reported specific measures. Of all mentioned and specified indications which are included in this evaluation (49 entries = 100%)
52% refer to the improvement of environmental transport efficiency (load factor, reduction of empty mileage, speed reduction) and fleet management (improvement of Euro classes); 45% refer to the reduction of energy consumption (water, heating oil and gas); 29% refer to waste management (reduction of waste, increase the proportion of recycled waste); 29% refer to the training of staff and drivers on an environmentally friendly conduct (including the use of public transport systems or carpools).
Finally, already 23% of the respondents measure their CO2 emissions while two of them having very ambitious targets in place to reduce their CO2 emissions by 50% until 2020 (reference year 2005). Some of these measures and their constant review serve as a model and will therefore be referred to as “best practice” cases in more detail in item 13. The majority of the countries have specified their measures, most of them with a focus on their transport services. This focus will be supported and extended as the transport system causes the bulk of the emissions, especially CO2 (see item 4).
9. Best practice projects
Countries report on a great variety of future projects to use alternative energy sources (photovoltaic, geo-thermy), to reduce drinking water consumption by rainwater cisterns or secondary water circulation and to increase their recycling rate of waste. Below projects are portrayed as a non-exhaustive selection of highlights. a) First movers emission calculation, alternative engines and fuels Schenker A/S in Denmark is one of the first movers in pro-active environmental engagement and since 1998 advising its clients on emission calculation and reduction issues by a tool which was set up by the environmental pioneer staff in Gothenburg. For its environmental engagement the organisation has gained several rewards, also from customers. Schenker AS in Norway, also a first mover with respect to environmental issues and calculating emissions for its customers, has tested bio-fuels based on 100% of rapeseed. Today, 21 vehicles of their fleet are run with 100% bio-fuel and 35 further ones with a share of 30%. In cooperation with Statoil, DB Schenker in Norway offers 30% blended bio-fuels at gas stations and fuel tanks placed at strategic points in Norway. This “B30” bio-fuel consists of 30% based on biomass and 70% of diesel fuel. In addition, the organisation’s subcontractors are supposed to order two hybrid vehicles to be delivered in 2009. The aim of the Schenker AS in Norway is to reduce specific CO2 emissions by 50% until 2020 (reference year 2005).
9. Best practice projects
Schenker AB in Sweden has announced its target to also reduce CO2 emissions until 2020 in the amount of 50% and introduce reduction rates in a respective presentation on measures such as: fuel efficient driving reduced speed new vehicles, better fuels inter-modality and combined traffic longer vehicles for night traffic better utilization – filling level /less mileage smarter distribution within cities In 2006 Schenker AB initiated a cooperation in Sweden with the common goal of reducing climate impact from transportation on road. This network now represents all key players in the supply chain: truck manufactures, fuel producers, the infrastructure, providers of logistical services, research institutes as well as big purchasers of transport services. Schenker AB in Sweden has prepared pilot projects for testing hybrid trucks and different blended fuels as well as pure DME*) fuel, with a start scheduled in 2009 with the most advanced truck supplier(s). *) Dimethylether
GOAL 2020 To reduce the amount of CO2 discharge from fossil fuels by 50 percent per tkm (compared to 2005).
9. Best practice projects
Schenker N.V. in Belgium have implemented at the warehouse in Willebroek a “natural” cooling system, a night ventilation system, whereby at a temperature of 2°C lower outside compared to the warehouse inside temperature the ventilation starts, and it stops automatically as soon as an adjustable inside temperature is reached. Hereby a daily saving of 612 kWh electricity is achieved.
Moreover, Schenker B.V. in the Netherlands have created an “environmental barometer” for its customers: The so-called "MKB-Milieubarometer" is an online tool to provide an indication of the environmental score and costs of a company. You fill in online all the data for energy, water, fuel, paper consumption etc., and the tool shows: the total environmental score in a diagram graphic of the environmental costs CO2 meter efficiency indicators
b) Telematics Oy Schenker AB in Finland which is running about a quarter of DB Schenker Logistics owned vehicles supervises its drivers with an automated system which observes the driving behaviour re. parameters such as speed, fuel consumption revolutions per minute etc. This allows an exact and continuous control of efficient and environmentally friendly driving:
9. Best practice projects
c) Modal Split Modal split are one of the key measures to reduce emissions in shifting transports to a more environmentally friendly mode of transport, especially from air to ocean and rail and from land transport to waterways. As an example, Schenker S.A. in France is using its country’s waterways for pre- and on-carriage of ocean shipping: In 2007, a total of 9,000 TEUs were shipped on the Seine from/to le Havre, Rouen et Paris on the Rhine between Anvers/Rotterdam and Strasbourg, Mulhouse : on the Rhône between Fos sur mer and Lyon on l‘Escault between Lille, Anvers and Rotterdam Schenker Deutschland AG, Schenker & Co AG in Austria, in cooperation with Hangartner AG, are in the process to shift more than 1,000 tons per week from truck to rail on the route from Rostock to Wels (ca. 1,000 km) thereby reducing CO2 emissions by two thirds. Schenker AG will successively focus on modal split products for its customers to reach considerable emission reductions (see also item 14).
9. Best practice projects
d) Small and beautiful Many Schenker AG subsidiaries contribute to environmental projects individually. In addition to energy saving and emission reduction measures they take part in social events or joint activities which may serve as a model for other organisations. Here just some examples:
PT Schenker Petrolog Utama in Indonesia has joined as one of the pioneering companies the EQUINOX Recycled Paper Solutions initiative "to stop using bleached, rainforest-destructive photocopy/laserprint paper and embrace 100% recycled alternative".
In Macedonia, Schenker DOOL is taking part in the annual “Day of the Tree” when two million trees are planted to re-forest the Macedonian tree population.
Schenker (Thai) Ltd. has participated in the 2007 "Care for Green"-Event initiated by Merck Thailand to reforest unproductive land in the Phra Phradaeng area / Samutprakarn province. A total of 4,144 trees have been donated by DB Schenker.
Schenker-Arkas Nakliyat ve Ticaret A.S. in Turkey, as a special reward to deserving employees, plants ten trees per year on behalf of the employee with the best practice proposal to improve service quality.
10 a) Environmental Management Structure
The Schenker AG environmental management in Europe has been implemented on a decentralized basis, i.e., country organizations have set up their own environmental management systems, mostly in an integrated form, together with quality management, occupational health and job safety, security and/or dangerous goods management. The national environmental managers are collecting and consolidating environmental parameters for their country-specific demands as well as for Schenker AG’s central demands and environmental supervision. They launch and supervise environmental projects. A further layer of environmental management is formed by regional managers, each of them supervising the countries of a geographically defined European region. The regional managers are regularly auditing the countries including site inspections. An approach towards a centralized system was pioneered by dedicated staff in Gothenburg/Sweden which paved the way for a new quality in Schenker AG’s environmental management. Such central management was set up in Essen in May 2007 and consists meanwhile of the following persons: Ulrich Puetz, Ernst-Otto Rau, Dr Norbert Mueller, Andrea Dorothea Schoen. The new environmental management in Essen started the co-operation with the colleagues from BahnUmweltZentrum (center for environment of Deutsche Bahn) in Berlin. It is intended to extend this model to the regions North America, Latin America, Asia Pacific and Near and Middle East Asia.
10 b) Central Audits
In 2007, an environmental questionnaire was developed by the central environmental management team and formed the basis of a series of internal audits, executed by the central environmental management team with start in 2007. By the end of the year 2008, one third of the European countries will have been inspected and reported on internally. The following review items have been focused on: Systematic examination of 55 questions on environment-related issues; further: reduction of CO2 emission: targets, actions; e-learning environment: contents, languages, control of learning success. In this connection, the basic central environmental policies and targets have been communicated: DB has fixed a specific CO2 emission reduction target for all activities (transport and non-transport) of 20 % until year 2020 on the basis of the year 2006; DB Schenker has to participate on a worldwide scale; DB Schenker has to quantify the total CO2 emissions resulting from its activities (transport and non-transport), on a worldwide scale; DB Schenker has to define CO2 emission reduction measures to receive the target mentioned above on a global scale. All country organisations have to contribute to achieve this target.
10 c) Public presence
DB Schenker has established and will further extend its Internet environmental presence as a forum not only to inform customers and interested readers on its services but also to share current available databases and environmental developments. You may have a look at http://www.dbschenker.com/site/logistics/dbschenker/com/en/about__dbschenke r/environment/sustainable__development.html
10 d) Customer Demands
a) Demands to country organisations 77% of the countries face environmental customer demands, 80% of them relating to ISO 14001 certificates and general environmental policies. A smaller amount of them (28%) is more specific, i.e., demand information on Euro classes/vehicle age, on eco driving/environmental training and demand a certain standard of waste management (recycling). 10% demand emission calculation data. Such demands are handled on a country organisation’s basis. To assess how DB Schenker Logistics organisations meet customer demands a so-called customer-compliance indicator was created to compare country-specific environmental targets and activities with country-specific demands. The overall index is 113% (87%:77%) indicating that in proportion slightly more Schenker AG country organisations have environmental policies and targets in place than explicitly demanded by the customer. The indicator re. vehicle and subcontractor evaluations is 391% (90%:23%) which means that subcontractors’ demands and evaluations are taken out on a considerably larger scale than demanded by the customer. The indicator on emission calculation is 100% (10%:10%) meaning that country organisations only calculate emissions on demand by the customer. However (!), as mentioned in item 8, 23% of the respondents already measure their own CO2 emissions being pro-active towards customer demands. Only a miniscule part of the customer demands refer to specific measures such as waste management (8%) or eco driving (8%) or staff environmental training (4%). With respect to them DB Schenker’s environmental measures reach an even higher degree of pro-activity
10 d) Customer Demands
b) Demands to Schenker AG/HO Customers increasingly gain awareness of the climate change risk and develop their own climate saving measures. In this connection they increasingly request from DB Schenker information on its environmental policies and targets (14.a) and equally need calculations and advice on their own footprint from DB Schenker Logistics. Especially in the first months of 2008 such demands increased considerabely and DB Schenker is doing its utmost to comply with these growing demands and expectations. Basically, Schenker AG is in a position to calculate all demanded emissions of all modes of transports globally and thus offer an additional asset to its clients. With the tool EcotransIT customers may calculate their shipment’s emissions on selected routes: http://www.ecotransit.org/greencargo/index.en.phtml
10 e) Environmental engageengagement and perspectives
DB Schenker’s engagement will increase continuously on the basis of the survey results and especially the carbon footprint calculation. Specific targets will be derived and set for the countries complementary to their own engagements to reduce emissions (including CO2) to comply with the ambitious targets set out by Deutsche Bahn. On a central level, Schenker AG is member of the environmental working group of the German Freight Forwarder Association (DSLV) and will approach specific national and international committees involved and engaged in footprint calculations and the creation of calculation standards. Schenker, Inc. USA has recently joined the EPA SmartWay program, a voluntary partnership between various freight industry sectors and EPA that establishes incentives for fuel efficiency improvements and greenhouse gas emissions reductions, including three primary components: creating partnerships, reducing all unnecessary engine idling, and increasing the efficiency and use of rail and intermodal operations. Schenker AB in Sweden is a member of The Network for Transport and Environment (NTM) which is a non profit organisation, initiated in 1993 and aiming at establishing a common database to calculate the environmental impact of various modes of transport. Schenker AG has in return set up its own database of average emission factors for all modes of transports globally and is eager to share such research results with its peers in the market and work on continuous updates.
Schenker AG’ AG’s concrete undertaking for the next 3 to 5 years Educate all drivers about energy efficient driving Phase out all older trucks with Euro 1 & 2 engines Use the most climate friendly diesel in the trucks
11. Abbreviations
HO
Head Office (Essen)
IQP
International Qualifying Project for young Schenker professionals (career building measure)
ISO 14001 (2004)
Environmental management systems – Requirements with guidance for use
ISO 14064-1 (2006)
Greenhouse gases – part 1: Specification with guidance at the organization level for qualification and reporting of greenhouse gas emissions and removals
ISO 14064-3 (2006)
Greenhouse gases – part 3: Specification with guidance for the validation and verification of greenhouse gas emissions
PM
Product Management
SWOT
Strength weakness opportunities threats
12. Verification statement for CO2 emission calculation ISO 14064
