Environmental best practice for FORS companies

James Swanston, Carbon Voyage  

Web: www.carbonvoyage.com/freight Twitter: @carbonvoyage

• The basics of sustainability

• FORS and sustainability

• How to use sustainability to save money

• Environmental Audits and Policies

• Carbon/ Greenhouse Gas Accounting for you and your customers

Outline

Introduction to Sustainability

What is Climate Change?

• The increase in the Earth’s average temperature over a long period of time

• Caused by greenhouse gases from:

Source: EU European Commission on Climate Change

Natural reasons Human activities

Brief history of climate change

Source: BBC News

1927 – Carbon emissions 1 billion tonnes per year1989 – Carbon emissions 6 billion tonnes per year2006 – Carbon emissions 8 billion tonnes per year

Source: BBC News

Source: An Inconvenient Truth

Early warnings

Source: BBC News

The effect of Global Warming

  

• Rising global temperatures

• The Polar ice cap is melting at 9% per decade

• Over the past 3 decades, more than a million squares miles of sea ice disappeared

• If this continues, Arctic summers could be ice-free by 2040

• Glaciers in Glacier National Park will be gone by 2070

Effects: Melting Glaciers

Picture Source: NASA

• Sea expansion due to rising temperature

• Melting Glaciers

• Global sea level rises by 4-8 inches in the past century

• Sea level rising appears to be accelerating

• Sea level could rise 10-23 inches by 2100

• Small islands like Maldives, Marshall islands will be gone by 2100

• Soon 70,000 people will become homeless

Effects: Rising Sea Levels

Effects: Weather

• Powerful and dangerous Hurricanes

• Increased Volcano Activities

• More Floods

• Drought and Wildfire

• Intense Rainstorms

• Heat Waves

• Spread of Deadly Disease

Effect: Health

• Drought and Flooding • Less available water, less food, damaged shelters, less dwindling

resources• Migration, conflict and wars will become unavoidable• Countries may seek those resource in order to survive at the cost of

others

Effects: Migration, Conflict and Wars

Future of Climate ChangeWhat can we do?

Future of Climate Change

One of the main questions that people have about climate change is, can it be stopped?

FORS and sustainability

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

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’

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

FORS: The Bigger Picture - Solutions

Delivering freight sustainably through:

•Freight Operator Recognition Scheme (FORS)•Delivery and Servicing Plans (DSP)•Construction Logistics Plans (CLP)•Freight Information Portal (FIP)

FORS: The Bigger Picture – Potential Result

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)

Why sustainability is importantfor your business

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

Some of the problems

Each transport user/ provider has different challenges, but are all negatively affected by inefficiencies

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

Saving money and building profit requires

a coherent strategy

Macro vs Micro

Organisational vs Individual

Drivers for Sustainability

Drivers for ChangeCostCarbon RegulationCongestionEmployeesCustomersShareholders

Organisational Behaviour

Drivers for ChangeCostCarbon RegulationCongestionEmployeesCustomersShareholders

Organisational Behaviour

Drivers against ChangeCompeting resourcesInefficient procurementLack of senior buy-inLack of coherent and resourced strategyEmployee Terms and Conditions

Drivers for ChangeCostCarbon Health

Individual Behaviour

Drivers for ChangeCostCarbon Health

Individual Behaviour

Drivers against ChangeOpportunity Cost ConvenienceUnattractive or no incentivesTrustKnowledge/ information

Drivers for ChangeCostCarbon Health

Individual Behaviour: Driversfor and against change

Drivers against ChangeOpportunity Cost ConvenienceUnattractive or no incentivesTrustKnowledge/ information

Opportunities to affect changeInformationTrust - systemTrust - other sharersManagementIncentives

Generating efficiencies internally is good

Generating efficiencies through the value chain is better

Opening up collaboration opportunities is best

Collaborative Consumption