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Next steps in environmental sustainability

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Ecofys senior consultant Edgar van de Brug presents best practices for postal companies on environmental sustainability strategies. He touches on the importance of the COP21 and consequences for postal operators, science-based target setting, the potential of biofuels and other opportunities to mitigate climate change risks, adaptive climate action and the broader scope of our planetary boundaries and Sustainable Development Goals. Ecofys supported the International Post Corporation (IPC) in 2015 to set science-based targets for the IPC member collective, which have been formally approved by the Science Based Target Initiative. The current presentation shows what’s next after setting science-based targets.

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Next steps in environmental sustainability

  1. 1. Next steps in environmental sustainability – beyond SBT Presentation at IPC Workshop on Sustainability, Brussels, 2 June 2016 DRAFT Next steps in environmental sustainability
  2. 2. © ECOFYS | | COP21: broad consensus to drastically cut GHG emissions > For first time in history international consensus about need to drastically cut emissions; > Businesses are faced with a significantly shortened timeline to enable a global low-carbon future than ever before; > Next to a 2°C future, also a 1.5°C pathway is being discussed: 02/06/2016 Next steps in environmental sustainability2 The 1.5 °C pathway requires steeper reductions, reaching net zero annual GHG emissions before 2050 and negative annual GHG emissions from then onwards Source: Rogelj et al.: Energy system transformations for limiting end-of-century warming to below 1.5 °C, Nature Climate Change, 2015
  3. 3. © ECOFYS | | COP21 will have major impacts, also for the postal sector > International and member state action, in line with the submitted Intended Nationally Determined Contributions, will impact the policy and market conditions at different levels, for example: – Internationally: ● Introduction of carbon-pricing in aviation globally; ● New schemes addressing sustainability of bio-fuels. – Nationally: ● Energy efficiency and renewable energy schemes. – City-level: ● Congestion taxes or cities banning diesel vehicles in their centers. > For the postal sector, these developments will become an extra driver for innovation and strategy development. 02/06/2016 Next steps in environmental sustainability3
  4. 4. © ECOFYS | | Next steps in environmental sustainability > In 2015 IPC and its members collectively set science-based target as one of the first organisations in the world; > Based on the outcomes of the science-based target exercise, IPC member CEOs adopted collectively a carbon emission reduction intensity target of 20% per parcel and per letter in 2025 compared to 2013 (which is lower than the science-based target) What’s next? 02/06/2016 Next steps in environmental sustainability4 ©fotolia.com/ikalinin
  5. 5. © ECOFYS | | Next steps in environmental sustainability 1) Set specific science-based targets at company level > Setting individual science-based targets at company level provides valuable insights into levers for action to drive down carbon emissions sufficiently; > It is recommended to calculate targets in line with company specific business requirements and KPIs; > Being a frontrunner has communication and marketing benefits. 02/06/2016 Next steps in environmental sustainability5 © Science Based Targets. All Rights Reserved
  6. 6. © ECOFYS | | Next steps in environmental sustainability 2) Focus GHG emission reduction also on your supply chain (1/3) > Most postal companies are already very active to reduce carbon emissions in own operations. Many inspiring examples exist. > Still more can be done to drive down emissions in the full supply chain: – Setting up supplier engagement programs in collaboration with their key suppliers that stimulate innovation and lead to win-win situations throughout the value chain; ● To introduce higher fractions of alternative fuels in long distance road transport, cooperation between logistical service providers and other supply chain partners will be required; ● Collaborating with goods and services suppliers (for example for packaging and wrapping) can enhance the development of low carbon and recyclable products, in line with the circular economy thinking. – The client perspective offers opportunities too (delivery frequency, etc.) 02/06/2016 Next steps in environmental sustainability6
  7. 7. © ECOFYS | | Next steps in environmental sustainability 2) Focus GHG emission reduction also on your supply chain (2/3) 02/06/2016 Next steps in environmental sustainability7 > Develop a supplier engagement program to reduce carbon emissions together and set (science based) targets. Win-win is possible, depending on the set-up and innovative solutions may be created. The Home Depot Intertek ProRail BASF IKEA SKF Walmart
  8. 8. © ECOFYS | | Next steps in environmental sustainability 2) Focus GHG emission reduction also on your supply chain (3/3) > Significant energy efficiency improvements are still possible in airplanes but to achieve deep decarbonisation in commercial aviation, biofuels are currently the only viable option. > Biokerosene can be produced sustainably. It is safe, many airlines successfully tested it. > However, biokerosene is currently more expensive than fossil kerosene: how to create a business case?  Ideas: 02/06/2016 Next steps in environmental sustainability8 – Develop a ‘green parcel scheme’ in which customers pay for their parcels to be transported, using sustainable biofuel. – An additional driver for the business case could be the global market based measure, being developed by ICAO, that would run from 2020 onwards to reduce aviation carbon emissions, providing a price incentive to use biokerosene. © fotolia.com/MOS:ES
  9. 9. © ECOFYS | | Next steps in environmental sustainability 3) Take adaptive action > Regardless of global efforts to reduce GHG emissions, the IPPC reports state with high confidence that we are facing some inevitable impacts of a changing climate through more frequent extreme weather events as well as longer terms climate change; this brings with it disruption to logistics, supply chains, ability to deliver just-in-time services and changes in market conditions. > All solutions therefore also need to take an integrated response to climate change: be both low carbon but also resilient to today's weather and tomorrow's climate. Companies in the postal sector need to understand how resilient it is to today’s weather and how that vulnerability changes over time given the climate projections for the future. 02/06/2016 Next steps in environmental sustainability9 © thinkstockphotos/Solymosis Tamás
  10. 10. © ECOFYS | | Next steps in environmental sustainability 4) Join global low-carbon initiatives to increase your positive impact > It pays off to join key initiatives that aim at driving down emissions together with other frontrunners. It helps to share experiences with peers, engage with influential NGOs and use the initiatives as platforms for internal and external communication. Companies can magnify their positive impact through these initiatives by influencing policy makers, sector peers and supply chain partners. 02/06/2016 Next steps in environmental sustainability10 EP 100
  11. 11. © ECOFYS | | Next steps in environmental sustainability 5) Identify hot spots for action in your environmental impacts beyond climate > Next to climate change, more and more companies are working on the reduction of other key environmental impacts as well, to stay within the environmental boundaries of our planet. Therewith the environmental challenges as part of the UN Sustainable Development Goals are being addressed. > Important environmental impacts to focus on for most of the postal companies would next to climate change most likely be resource depletion (triggered by the use of packaging materials) and local air pollutants (as a result of fossil fuel combustion). 02/06/2016 Next steps in environmental sustainability11
  12. 12. © ECOFYS | | Contact details > Edgar van de Brug > Ecofys Netherlands B.V. > E.vandebrug@ecofys.com > +31(0)6 2501 4916 02/06/2016 Next steps in environmental sustainability12
  13. 13. © ECOFYS | | sustainable energy for everyone 02/06/2016 Next steps in environmental sustainability13

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