Sustainability briefing given to members of Transport for London's Freight Operator Recognition Scheme.

1. Environmental best practice for FORS companies James Swanston, Carbon Voyage Web: www.carbonvoyage.com/freight Twitter: @carbonvoyage

3. Introduction to Sustainability

5. Brief history of climate change Source: BBC News

6. 1927 – Carbon emissions 1 billion tonnes per year 1989 – Carbon emissions 6 billion tonnes per year 2006 – Carbon emissions 8 billion tonnes per year Source: BBC News Source: An Inconvenient Truth

7. Early warnings Source: BBC News

9. The effect of Global Warming

15. Future of Climate Change What can we do?

17. FORS and sustainability

18. Where this fits into FORS benchmarking Silver and gold membership – fuel use/ CO2 and emissions What it is? Calculations based on per million vehicle km for each type of vehicle Fleet size/ type x Fuel Consumption What to do? Manage Reduce

19. FORS: The Bigger Picture Definition of sustainable freight distribution: ‘The balanced management and control of the economic, social and environmental issues affecting freight transport that: Complies with or exceeds environmental standards, regulations or targets aimed at reducing emissions of climate change gases, improving air quality and minimising impacts from accidents, spillages or wastes Ensures freight is run efficiently, reduces unnecessary journeys, minimises journey distances and maximises loads with effective planning Complies with labour, transport and human rights standards and regulations ensuring that employees and communities affected by freight can function in a healthy and safe environment Minimises the negative impacts of freight activities on local communities’

20. FORS: The Bigger Picture - Congestion Between 1980 and 2006, average journey speeds decreased by an approximately 14 % - more in rush hours TfL estimates that up to £17 is lost for every hour a vehicle is stuck in traffic. Estimates for the total cost of congestion to London range from £2 to £4 billion Freight, which makes up 17 per cent of all road traffic, is expected to grow by 25 per cent in 2031 Based on 2006 data, the estimated contribution from freight transport in London is 2.2m tonnes of GHG emissions, equalling 5.1 per cent of the Capital’s GHG production and energy use

22. FORS: The Bigger Picture – Potential Result

23. How to use sustainability to save money “ [M&S] said it had generated £50m in additional profits against its expectation that the plan would cost it £200m over five years.” (The Telegraph, June 2010)

24. Why sustainability is important for your business

25. Drivers for Sustainability Case study research has calculated that for every employee fully engaged in their organisation’s sustainability policies, the organisation can save £1,000 in operational costs each year Improved sustainability practise within large corporations can increase profits by 38% when the benefits are aggregated, similar savings in expenditure can be achieved in the public and not-for profit sector

26. Some of the problems Each transport user/ provider has different challenges, but are all negatively affected by inefficiencies

27. Some of the Problems Needless doubling up of vehicles Managing expenditure/ Acquitting receipts Congestion Stakeholder/ Reputation Management Lack of easy access to supply chain Carbon Emissions Pollutants Stove-piped transport modes Under-utilised transport assets Costs Regulatory Requirements Sustainability should be about efficiency, and thus equate to savings

28. Saving money and building profit requires a coherent strategy

29. Macro vs Micro Organisational vs Individual Drivers for Sustainability

30. Drivers for Change Cost Carbon Regulation Congestion Employees Customers Shareholders Organisational Behaviour

31. Drivers for Change Cost Carbon Regulation Congestion Employees Customers Shareholders Organisational Behaviour Drivers against Change Competing resources Inefficient procurement Lack of senior buy-in Lack of coherent and resourced strategy Employee Terms and Conditions

32. Drivers for Change Cost Carbon Health Individual Behaviour

33. Drivers for Change Cost Carbon Health Individual Behaviour Drivers against Change Opportunity Cost Convenience Unattractive or no incentives Trust Knowledge/ information

34. Drivers for Change Cost Carbon Health Individual Behaviour: Drivers for and against change Drivers against Change Opportunity Cost Convenience Unattractive or no incentives Trust Knowledge/ information Opportunities to affect change Information Trust - system Trust - other sharers Management Incentives

35. Generating efficiencies internally is good Generating efficiencies through the value chain is better Opening up collaboration opportunities is best Collaborative Consumption