Climate Change Leadership

Packaging & Transportation

Pierre CORVISIER

New Services Director, JF Hillebrand Group Member of the UN Global Compact

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Agricultural

products

LANDSCAPE

Factors putting

the drinks

economy at risk

GHG* emissions, global

warming (fossil fuel)

Climatic hazards

Pollution

25% of worldwide

CO2

1) Transport emissions 25%

• Cars and trucks = 19% = 75% of transport

emissions

• Sea freight = 3 % = 10% of transport

emissions

2) Electricity and heat production 25%

3) Industry 21%

4) Buildings 18%

5) Other energy 10%

= 99% of worldwide CO2 emissions

* Greenhouse gases

Source: IPCC 2014 and IICT 2015

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LANDSCAPEGreenhouse Gas (GHG) Protocol

Greenhouse gases

Carbon dioxide (CO2)

Sulphur hexafluoride (SF6)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFC)

Perfluorocarbons (PFC)

CO2 SF6 CH4 N2O HFCS PFCS

SCOPE 2

Indirect

SCOPE 3

Indirect

SCOPE 1

Direct

Purchased electricity

for own use

Company owned vehicules

Fuel combustion

Employee business travel Outsourced activities

Waste disposal Product use

Contractor owned vehicules Production of purchased

materials

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The Paris

Agreement –

December 2015

195 countries adopted a global

climate deal to limit the increase

in average global temperature to

1.5ºC by 2100

LANDSCAPEGlobal warming

Sea freight could

be responsible for

17% of global

CO2 emissions in

2050

According to a scientific study

requested by the European

Parliament in 2015

Marine

Environment

Protection

Committee meeting

– April 2018

The International Maritime

Organization (IMO) aims at reducing

GHG emissions by 50% by 2050

(compared to 2008), globally

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Carbon dioxide and other greenhouse gases contribute to global warming

while air pollutants such as sulphur can be equally damaging to public health

and to the environment.

By 2020 IMO will implement a new sulphur cap worldwide.

It has been established that it will cost 60 billion USD to the industry, which would be

translated in an average cost of USD 160 per TEU.

Low sulphur fuels can generate slightly more CO2 than regular marine oils.

LANDSCAPEAir pollution

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COMMITMENT

Evidence-based

Based on studies

Ambitious but achievable

Significant reductions in the carbon intensity of vessels

Innovative

Shift to low-carbon economy can créate new opportunities for business

Leading by example

Pursue emissions reductions in their own operations

GLOBAL MARITIME FORUMVision by 2050

RECOMMENDATIONS

Ambitious

In line with the Paris agreement’s temperature goals

Predictable

Provide long-term certainty for all stakeholders

Market-oriented

Emissions reduction objectives should be met at the lowest possible cost

Technology-enabling

Accelerate the use of low-carbon technologies and fuels

Urgent

Some actions can be in place by 2023 and 2030

www.globalmaritimeforum.org

34 maritime CEO

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Clean Cargo Working Group (CCWG)

B2B collaboration held by NGO BSR, known for the calculation of emissions at sea

50 member companies

CCWG carriers = 85% of global container capacity

CCGW has developed and uses 2 primary tools to promote improvements in he

logistics and transport sector

Clean Shipping Index (CSI)

CLECAT

European association for forwarding, transport, logistics and customs services

EPA’s SmartWay

The program helps companies advance supply chain sustainability by measuring,

benchmarking, and improving freight transportation efficiency.

INDUSTRY INITIATIVES TO REDUCE EMISSIONS

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EMISSIONS CALCULATIONCCWG emissions per trade lane

Overall, trade lane emissions have decreased by 1.0% in 2017

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Airfreight, short haul flights

(785 to 3,700 km)

index 33,470

TRANSPORT MODES AND EMISSIONS (CO2)

Sea freight, deep sea, dry container

index 100

Sea freight, deep sea, reefer container

index 130Rail, intermodal

index 335

Sea freight, coastal, container

index 549Sea freight, Ro-Ro vessel

index 878

Road, truck with trailer

index 887

Airfreight, long haul flights

(more than 3,700 km)

index 18,960

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EXPECTED DECREASE OF EMISSIONS DUE TO USE OF LNG SHIPS

Global warming – Main contributor, Carbon dioxide (CO2)

Reduction by 25% compared to Heavy Fuel Oil (HFO)

Reduction by 35% compared to Marine Diesel Oil (MDO)

Public health / air quality

Sulphur (SOx): reduction by 99%

Particulate matters (PM): reduction by 99%

Nitrogen oxides (NOx): reduction by 85%

SOLUTION?Liquefied natural gas (LNG)

PENDING ISSUES

Deployment time / milestone development for the container shipping industry

Scope of deployment – fleets, ship sizes, routes…

Impact on ships rotation / speed of ships

Compatibility with port infrastructure

Extra cost vs currently used fuels

Unknown yet

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EQUIPMENT COMPARISON

BULK WINE

20’ dry container (9,900 litres of wine)

1,930 kg CO2 e

Insulated 20’ dry container (9,900 litres of wine)

1,930 kg CO2 e *

20’ reefer container (7,500 litres of wine)

2,510 kg CO2 e

Seafreight, rail rather than road

Flexitank (24,000 litres of wine)

2,400 kg CO2 e **

ISO tank (25,000 litres of wine)

3,775 kg CO2 e

Calculations based on a door-to-door transportation from Chile to the UK (20’)

Source of emissions calculation (shipping): JF Hillebrand emissions calculator

* Carbon footprint of insulation device 20’: 79 kg CO2 e. Source: Nuevomund carbon footprint

study – product lifecycle – for an insulated dry container

** Carbon footprint of Flexitank: 620 kg CO2 e. Source: Nuevomund carbon footprint study –

product lifecycle – for a Flexitank

Wide pallets in pallet-wide containers

to maximise the capacity

CASED GOODS

including shipping

Including empty shipping,

loaded shipping

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Avoid temperature

and humidity risks

Evaluate the maximum, minimum

and average temperature and

humidity data, when planning

shipments

Reveal the impact to wine, beer

or other beverage types on

planned shipping routes, to

reduce the risk of sensorial or

chemical changes within the

product

TECHNOLOGY IMPROVEMENTSQuick wins

Insulation liner

Protection against thermal

shocks, humidity and cross

contamination

Live data about

shipments

Monitor temperatures and

carbon emissions with a

complete overview of the

temperatures and emissions

associated to shipments whilst in

transit, at each stage of the

journey

THANK YOU

More information, please contact Bruno CORNAILLE

b.cornaille@jfhillebrand.comMember of the UN Global Compact