Green Supply Chain Maersk Logistics

Green Supply Chain Anas Iftikhar Farhan Arshad Adnan Bari Salman Ansari

We can help our customers in becoming “greener” to satisfy stakeholders’ requirements and reveal potential for increasing efficiency of their supply chains

Global warming is the result of increasing CO 2 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
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

COMPARISION BETWEEN MEANS OF TRANSPORTATION Source: International Maritime Organization (IMO)

Mode selection has significant impact on a company’s carbon footprint

Transportation - An important source of CO 2 Due to globalization and increased outsourced trends, transportation is the only sector that has increased CO 2 emissions in the last two decades Source: European Logistics Users Providers and Enablers Group ( ELUPEG) EU Transport Energy industries Residential Average Other (non-energy) Services Industrial processes Agriculture Industry (energy) Waste Fugitive emissions

Our response – SupplyChain CarbonCheck™ Maersk Logistics’ consulting service aimed at identifying carbon reduction potentials in supply chains
mounting pressure from stakeholders
ambitious CO 2 reduction targets untapped potentials in global supply chains

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

SupplyChain CarbonCheck™ - a standardised approach 4-step methodology based on internationally recognized emission standards 1 2 3 4 Estimate current supply chain carbon footprint & costs Simulate carbon footprint & costs of alternative scenarios Implement solutions Evaluate CO 2 emission & cost reduction potential

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
Carbon mapping of current supply chain with Maersk Carbon Footprint Calculator
Result: Snap-shot of the supply chain’s current carbon footprint – the ‘AS IS’ scenario
1 2 3 4 Estimate Simulate Evaluate Implement ‘ AS IS’ Carbon Footprint Calculator Global supply chain scope Internationally recognised emission standards & calculation methodology

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 with ‘AS IS’ scenarios
Identification of CO 2 reduction potentials
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 AS IS 1 2 3 4 TO BE 2 TO BE 1 TO BE 3 Estimate Simulate Evaluate Implement

Evaluate carbon reduction potentials based on:
$ Step 3: Evaluate CO 2 Reduction Potentials Reduction potentials are evaluated under various aspects. Evaluate the scenarios that have the highest impact and better fit strategy. Strategic fit Impact on carbon footprint Impact on total supply chain costs Ease of implementation 1 2 3 4 Concrete recommendations for implementation ? Estimate Simulate Evaluate Implement CO 2

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
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 CO 2 Reduction Time Solution A Solution B Solution C 1 2 3 4 Estimate Simulate Evaluate Implement

Strategic Level of Environmental Performance for the A.P. Moller Maersk Group

What have we done so far? Case Studies

Your guide to greener supply chains - SupplyChain CarbonCheck™

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!

THANK YOU FOR YOUR TIME

Green Supply Chain Maersk Logistics

by Anas Ifti on Feb 08, 2010

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