Velma Baptiste-Destouche, DHL Exel Supply Chain
Velma Baptiste-Destouche, DHL Exel Supply Chain
Velma Baptiste-Destouche, DHL Exel Supply Chain
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Health, Safety and the Environment, Mainland Europe<br />
Logistics Ireland: Building Resilient and Sustainable <strong>Supply</strong> <strong>Chain</strong>s<br />
Key Note Speaker: <strong>Velma</strong> <strong>Baptiste</strong>-<strong>Destouche</strong>, Director of Health, Safety and the<br />
Environment, Mainland Europe, EMEA<br />
Date: 23 rd September 2008
Climate Change: The Hidden Opportunities<br />
‘ We sometimes emphasize the danger in crisis without focusing in the<br />
opportunities. We should feel a great sense of urgency because climate<br />
change is the most dangerous crisis we have ever faced, by far. But is<br />
also provide us with opportunities to do lots of things we ought to be<br />
doing for other reasons’<br />
Al Gore ‘ Inconvenient Truth’<br />
Page 2
Developing Resilience: Sustainability Agenda<br />
Sustainability as an integral part of the way you do business has clear benefits to the<br />
business, our customers, employees and suppliers, which include:<br />
■ Improving customer perception, allowing us to gain and retain customers by using the<br />
environment as unique selling point.<br />
■ Generating good public and investor relations<br />
■ Achieving cost savings and operational efficiency and consistency<br />
■ Allowing us to reduce our significant environmental impacts<br />
■ Ensuring legal and other regulatory compliance<br />
■ Vehicle to engage employees in relation to the environment<br />
■ Encourages innovation and innovative thinking in the way we do business<br />
■ Demonstrate good leadership in the supply chain sector<br />
Page 3
DPWN: Committed to Change<br />
Our vision<br />
We aim to be the leader in responsible and<br />
sustainable logistics with<br />
� leadership in new technologies<br />
� market-leading green products and services<br />
� raising industry, customer, supplier and employee<br />
awareness, asking them to support us in<br />
making a difference<br />
Our goal<br />
� DPWN is No.1 Logistics provider and will play a<br />
leading role in global strive to cut greenhouse gas<br />
emissions<br />
� We plan to improve our carbon efficiency by 2020<br />
by 30% in comparison to the base year 2006<br />
Page 4
<strong>Supply</strong> <strong>Chain</strong>: What are our Environmental Impacts?<br />
Manufacturing<br />
/production<br />
Distribution centres<br />
�Pollution risk from product and fuel spills<br />
�Noise, vibration and light<br />
�Waste<br />
�Packaging use<br />
Distribution<br />
centre<br />
�CO 2 emissions<br />
�Other emissions<br />
�Energy use<br />
Transport (all routes)<br />
�Fuel use<br />
�CO 2 emissions<br />
�Other emissions<br />
�Pollution risk from product and fuel spills<br />
�Noise and vibration<br />
�Congestion<br />
Home<br />
Regional<br />
distribution<br />
centre Retail<br />
Page 5
<strong>Supply</strong> <strong>Chain</strong> Environmental Opportunities<br />
Manufacturing<br />
/production<br />
Distribution centres<br />
�Energy reduction and conservation<br />
�Packaging and waste management<br />
� Sustainable procurement and sourcing<br />
of products<br />
Distribution<br />
centre<br />
�CO 2 emissions<br />
Reduction<br />
�Community<br />
projects<br />
Transport (all routes)<br />
�Reduce CO 2 emissions and costs from effective<br />
transport management<br />
� Reduce operational risk by visibility of supplier<br />
network<br />
Home<br />
Regional<br />
distribution<br />
centre Retail<br />
Page 6
Carbon Footprint: Measuring and Monitoring of Performance<br />
CH 4<br />
13%<br />
PURCHASED<br />
ELECTRICITY<br />
FOR OWN USE<br />
N 2O<br />
6%<br />
SCOPE 2<br />
INDIRECT<br />
FUEL<br />
COMBU<br />
STION<br />
Scope 1 / 2 Data Unit Conversion factors KPIs<br />
Total electricity Translated to<br />
Green electricity kWH<br />
Natural Gas<br />
Fuel Oil<br />
Propane/LPG<br />
Diesel Litres<br />
Petrol<br />
Bio diesel (inc grade:<br />
5%, 30%, 100%, etc)<br />
Refrigerant gases<br />
(fugitive emissions)<br />
Kgs<br />
Translated to carbon<br />
through:<br />
� Fuel or material<br />
specific CO 2<br />
emission factors<br />
� Country factors<br />
(N.B. Conversion<br />
factors<br />
internationally<br />
recognised /<br />
agreed and<br />
available)<br />
CO 2<br />
76%<br />
SCOPE 1<br />
DIRECT<br />
COMPANY<br />
OWNED<br />
VEHICLES<br />
�CO 2(e) in absolute tonnes<br />
�CO 2(e) in tonnes / €mn<br />
revenue<br />
�CO 2(e) in tonnes / m 2<br />
N.B. Appropriate benchmarks<br />
applied to make KPIs<br />
meaningful, e.g. a chill site<br />
compared to similar chill sites<br />
SF 6<br />
HFCs<br />
SCOPE 3<br />
INDIRECT<br />
PRODUCT<br />
USE<br />
Scope 3 Data<br />
Subcontractor<br />
Transport<br />
Employee<br />
Business Travel<br />
5%<br />
PRODUCTION OF<br />
PURCHASED<br />
MATERIALS<br />
OUTSOURCED<br />
ACTIVITIES<br />
PFCs<br />
2009<br />
to<br />
2010<br />
CONTRACT<br />
OR OWNED<br />
VEHICLES<br />
KPIs<br />
EMPLOYEE BUSINESS<br />
TRAVEL<br />
WASTE<br />
DISPOSAL<br />
�CO 2(e) in absolute<br />
tonnes<br />
�CO 2(e) in tonnes / €mn<br />
revenue<br />
�CO 2(e) in tonnes / m 2<br />
Page 7
Building Resilience into the Management of an Effective Operation<br />
Definition<br />
Planning<br />
Implementation<br />
Control<br />
Project<br />
Management<br />
Metric Data<br />
Interactive<br />
system<br />
Standard outputs<br />
Performance<br />
Management<br />
Standard SOP’s<br />
Training<br />
Process<br />
Track & Audit<br />
Regular Review<br />
Management<br />
Review<br />
Quality<br />
Assurance<br />
Standard Review<br />
Dashboards<br />
Transparency<br />
Issue<br />
Identification<br />
Process<br />
Improvement<br />
Solutions<br />
Best Practices<br />
Knowledge<br />
sharing<br />
Innovation<br />
People<br />
Processes<br />
Consistency<br />
Engagement<br />
Retention<br />
High Performance<br />
Page 8
Building Resilience into the Management of an Effective<br />
Operation: Environmental Management System (EMS)<br />
ISO 14001 Framework<br />
EMS alignment and integrated with<br />
existing business processes.<br />
Environmental management treated<br />
as ‘business as usual’ and used to<br />
identify cost savings and new<br />
business opportunities<br />
Significant business benefits can be<br />
gained through effective<br />
environmental management. In<br />
short eco-efficiency will improve<br />
business efficiency.<br />
Act<br />
Management<br />
review<br />
Checking<br />
(e.g. audit,<br />
monitoring and<br />
measurement)<br />
Commitment<br />
Environmental<br />
Policy<br />
Planning<br />
• Legal compliance<br />
• Significant<br />
impacts<br />
• Environmental<br />
policy<br />
• Objectives and<br />
targets<br />
• Programme<br />
Implementation<br />
and operation<br />
• Development of<br />
procedures<br />
• Training<br />
• Communication<br />
Page 9
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
Building Resilience into the Management of an Effective Operation:<br />
Synergy with Existing Business Processes ( First Choice)<br />
Establishing baseline and<br />
program commitment<br />
Identifying & ensuring<br />
legal compliance<br />
Developing objectives,<br />
targets and programmes<br />
Implementing and<br />
operating an EMS<br />
Checking, audit and<br />
review<br />
EMS Accreditation<br />
<br />
Gain<br />
commitment<br />
Identify legal<br />
requirements<br />
Evaluate<br />
environmental<br />
aspects<br />
Finalise mgmt<br />
structure/<br />
responsibility<br />
Establish<br />
EMS audit<br />
programs<br />
Prepare for<br />
external<br />
assessment<br />
Baseline EMS<br />
assessment<br />
Identify other<br />
requirements<br />
Finalise<br />
Environment<br />
Policy<br />
Competence,<br />
training /<br />
awareness<br />
Correct nonconformance<br />
/ take action<br />
Preliminary<br />
assessment<br />
Project Management<br />
Develop<br />
Environment<br />
Policy<br />
Check<br />
compliance<br />
Develop<br />
objectives /<br />
targets<br />
Maintain<br />
formal<br />
comms<br />
Management<br />
review<br />
Document<br />
review<br />
assessment<br />
Develop<br />
Indicators<br />
Ensure<br />
ongoing<br />
compliance<br />
Establish<br />
environment<br />
KPIs<br />
Document<br />
and record<br />
keeping<br />
Improve<br />
performance<br />
and EMS<br />
Certification<br />
audit<br />
Training and<br />
awareness<br />
Develop<br />
compliance<br />
indicators<br />
Develop env<br />
management<br />
programs<br />
Review/test<br />
emergency<br />
prep&resp.<br />
Continuous<br />
improvement<br />
Develop ops<br />
control<br />
procedures<br />
Develop<br />
Indicators for<br />
EMS<br />
Page 10
Phase<br />
1 1<br />
1 2<br />
1 3<br />
1 4<br />
1 5<br />
Stage<br />
The Resilience Test: Sustainability Performance Review<br />
Report<br />
EMS Programme Activities<br />
Define and document scope of site's<br />
environmental management system (EMS)<br />
Gain and maintain management commitment<br />
Carry out baseline EMS assessment<br />
Develop a draft environmental policy<br />
Develop environmental indicators<br />
1 6<br />
Develop an initial environmental system<br />
implementation plan<br />
1 7<br />
Conduct training, awareness and initiation of<br />
culture change<br />
1 8<br />
Initiate continual improvement<br />
Integrated Business Plan CO2 Reduction Target<br />
2009 Mainland Europe Region Status<br />
2008 total CO2 tonnes<br />
2009 Target total CO2 tonnes<br />
2008 total CO2 tonnes / Revenue<br />
2009 Target total CO2 tonnes / Revenue<br />
Q1 total CO2 tonnes<br />
Q1 total CO2 tonnes / Revenue<br />
2009 Q2 total CO2 tonnes<br />
Q2 total CO2 tonnes / Revenue<br />
2009 Q3 total CO2 tonnes<br />
Q3 total CO2 tonnes / Revenue<br />
2009 Q4 total CO2 tonnes<br />
Q4 total CO2 tonnes / Revenue<br />
2009 YTD total CO2 tonnes<br />
2009 YTD total CO2 tonnes / Revenue<br />
2009 YTD CO2 tonnes - A to G Rating<br />
2009 YTD CO2 tonnes / Revenue - A to G Rating<br />
2009 - <strong>DHL</strong> <strong>Exel</strong> <strong>Supply</strong> <strong>Chain</strong> Environmental Management System Objectives, Targets and Programmes<br />
Our vision is to be the world's leading supply chain organisation, not only in terms of size but also in terms of environmental performance and sustainability. Within Mainland Europe, our objective is to ensure all our<br />
operations work to reduce their impact through consistently high standards of environmental management and will support the delivery of this vision through achievement of the documented programme activities.<br />
Jan<br />
Mainland<br />
5%<br />
Feb<br />
Mar<br />
Apr<br />
May<br />
Jun<br />
Schedule<br />
Jul<br />
A to G Rating for Mainland Europe CO2 Reduction Target 2009 Mainland Europe A - G Rating 2009 Mainland Europe A - G Rating<br />
total CO2 tonnes total CO2 tonnes / Revenue<br />
100% or better<br />
A<br />
90-99%<br />
80-89%<br />
70-79%<br />
61- 69%<br />
B<br />
C<br />
D<br />
E N/A N/A<br />
51- 59%<br />
F<br />
50% or less<br />
G<br />
Aug<br />
Sep<br />
Oct<br />
(1) Reduction of absolute total CO2 equivalent tonne emissions compared to 2008 baseline year and<br />
(2) Reduction of total CO2 equivalent tonne emissions / Revenue compared to 2008 baseline year<br />
Western<br />
Eastern<br />
Central<br />
Northern<br />
Nov<br />
Dec<br />
Target Completion<br />
Date<br />
Healthcare<br />
% Completion<br />
Industrial<br />
Costs<br />
Estimated<br />
(Euros)<br />
Savings<br />
Technology<br />
Mainland<br />
Western<br />
RAG Status<br />
Automotive<br />
Eastern<br />
Central<br />
Retail /<br />
Consumer<br />
Northern<br />
Multi - Sector<br />
EMS Implementation<br />
RAG<br />
Completed<br />
Part Completed<br />
Not Started<br />
Other<br />
Page 11
What does Good Look Like?<br />
Making better use of DPWN’s in-house expertise & likely to require some capital<br />
investment<br />
Fleet optimization<br />
� Optimise planning to reduce /<br />
eliminate unnecessary journeys<br />
� Identify shared-user platforms<br />
(EFX enabler)<br />
� Consider fleet design (double-<br />
deck trailer)<br />
Procurement practice<br />
� Source ‘Green’ Utility providers<br />
� Bio-fuels, blends (B30) & additives<br />
� Retro-installations on longer term<br />
fleet assets<br />
� Stationary provisions<br />
� Operational consumables<br />
� Better quality (winter) uniforms<br />
Property<br />
� Invest in a Building Management<br />
System<br />
� Grey water capture for fleet washing,<br />
WC flushing<br />
� Intelligent lighting<br />
� Remote sensing taps, flow restrictors,<br />
spray taps, low flush WC’s<br />
Other Actions<br />
� Packaging design with customized<br />
customer solutions, (expendable .v.<br />
durable)<br />
� Waste management – revenue<br />
generation through sorting,<br />
compacting, baling, recycling<br />
� Changing behaviour!<br />
Page 12
Transport Solutions: Teardrop Trailer<br />
The DON-BUR "Teardrop" sets the standard for a new generation of trailer designed and<br />
manufactured to save fuel and reduce carbon footprint, increase internal load space and<br />
utilise lighter, more recyclable materials; three key factors to reducing the impact on the<br />
environment and maximising profitability.<br />
By better understanding "whole vehicle" aerodynamics, the trailer shape has been radically<br />
altered to fit natures perfect aerodynamic shape: the teardrop. The smooth, aesthetically<br />
pleasing lines maintain superb linear air flow whilst the streamline shaping reduces turbulence<br />
and drag and therefore fuel consumption. As a result, internal volume has increased,<br />
resulting in more payload per trailer and proportionally less vehicle trips.<br />
Page 13
Transport Environmental Solutions<br />
Road<br />
Good vehicle design and driver training leads to<br />
low emission delivery. Reverse logistics<br />
opportunities.<br />
Alternatives to road: Movement to bulk transport<br />
means e.g. sea and rail where possible to reduce<br />
CO2 emissions.<br />
Sea: Innovative mode of ocean cargo transport<br />
using a new wind propulsion system using a huge<br />
towing kite<br />
Page 14
Resilience: Innovation, Sharing Best Practice and<br />
Empowerment Through Education and Awareness
ECS Waste Management - Case Study - Mothercare<br />
� System required to dispose of cardboard & plastic waste, across 24/7 operation<br />
� Environmental Compliance Solutions (ECS) recommended installation of a chute fed horizontal<br />
automatic baler for cardboard plus a vertical Mill sized baler for plastics.<br />
� Led to a 75% reduction in disposal costs (From £100K budget to c. £25K)<br />
� Reduced labour and usage of goods lifts for transporting waste<br />
� 1000T of general waste avoided per annum<br />
� Total benefit to site including reduced landfill and labour c. £145K per annum<br />
� Capacity to undertake processing of retail store recyclate (Mothercare spend c. £2M per year on back<br />
of store waste management)<br />
� Recycling creates revenue for sites rather than a cost to landfill<br />
Page 16
Environmental Solutions: Long term<br />
Likely to require external expertise and considerable investment capital<br />
Strategic thrust Key initiatives<br />
Design it in!<br />
�<br />
�<br />
�<br />
�<br />
�<br />
� Wind turbines<br />
� Dragon energy<br />
� Solar panels<br />
� Ground source heat pump<br />
� Building management system<br />
� Grey water harvesting<br />
� Natural roof lighting<br />
� Intelligent Lighting<br />
� Air tight construction (can reduce leakage by 60%)<br />
� Automated loading docks<br />
Tilburg<br />
� Electronic notice boards in reception area relaying information<br />
http://www.gazeley.co.uk/our-product.asp<br />
Page 17
Warehouse Environmental Solutions<br />
Light Optimisation<br />
Use of natural light as much as possible e.g. roof<br />
lights. Use of low energy consuming lighting and<br />
installation of movement and photoelectric sensors<br />
(e.g. Rosersberg, Sweden)<br />
Air tight construction<br />
Use of automatic closing doors (draught proofed):<br />
buffer zones, plastic strip curtains to reduce<br />
temperature losses<br />
Rainwater harvesting<br />
Use of rainwater from roofs for equipment / fleet<br />
and flushing toilets<br />
Grey water harvesting<br />
Reuse of water from showers and wash basins for<br />
toilet flushing, equipment /fleet washing and<br />
irrigation of landscaped areas.<br />
Page 18
Supporting the Customer: Reducing Cost by Reducing Carbon<br />
<strong>DHL</strong> Neutral Services is a carbon consultancy practice<br />
established to accelerate the reduction of carbon<br />
footprint.<br />
Our mission is to create and execute greenhouse gas<br />
reduction strategies exclusively for <strong>DHL</strong> and <strong>DHL</strong><br />
customers by assessing, reducing, replacing, and in some<br />
cases neutralizing direct and indirect carbon emissions.<br />
We achieve this by means of projects that provide<br />
short term financial return or are financed with<br />
minimal operational impact.<br />
We offer a range of services and solutions including<br />
carbon supply chain consulting, emission reduction<br />
plans and carbon emission implementation<br />
programmes.<br />
Page 19
Carbon Consulting: Sharing our expertise<br />
Carbon Consulting: <strong>DHL</strong> Neutral Services works with <strong>DHL</strong> and its customers to<br />
reduce their carbon footprint<br />
Packaged<br />
Solutions<br />
� Carbon<br />
Footprint<br />
Assessment<br />
- Property<br />
- Transportation<br />
- Operations<br />
� Carbon Action<br />
Plan<br />
Research<br />
� <strong>DHL</strong> internal status<br />
� <strong>DHL</strong> needs analysis<br />
� Customer needs<br />
analysis<br />
� External market<br />
status<br />
Managed Services<br />
� Carbon Reduction<br />
Implementation<br />
Services<br />
- Property<br />
- Transportation<br />
- Operations<br />
� Carbon Abatement<br />
awareness training<br />
Customer focused<br />
services<br />
� Pure consultancy<br />
for <strong>DHL</strong> Customers<br />
� <strong>Supply</strong> <strong>Chain</strong><br />
carbon calculations<br />
� RFQ assistance<br />
Contact us: +44 90) 1344 428128 email: enquiries@theneutralgroup.com<br />
See us: www.theneutralgroup.com<br />
Page 20
Building Resilient and Sustainable <strong>Supply</strong> <strong>Chain</strong>s<br />
1. Commitment<br />
2. Organisation and planning: Integrated as part of the way you do<br />
business and they you think about doing business. Plan for change – as<br />
change happens!<br />
3. Identify: the opportunities from the data provided by environmental<br />
reporting.<br />
4. Integrate sustainability into the existing business practice, so that the<br />
environment becomes and integral part of the way operate your business<br />
with little effort but with large rewards.<br />
5. Budget: for change and monitor the cost saving.<br />
6. Continuous improvement and innovation.<br />
7. Communicate and market your achievements internally and externally –<br />
wins hearts and minds and motivates.<br />
8. Partnerships<br />
Lead or be led<br />
Page 21
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