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Green Supply Chain

Anas Iftikhar

Farhan Arshad

Adnan Bari

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We can help our customers in becoming “greener” to satisfy stakeholders’ requirements and reveal potential for increasing efficiency of their supply chains

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Global warming is the result of increasing CO2

concentration in the atmosphere

Global warming is and will be one of the largest challenges of this century

Transportation activities are one of the main contributors to global warming

Carbon Emissions – a Global ChallengeWith global warming being recognised as one of the largest challenges of this century, carbon emissions are increasingly becoming the centre of attention

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COMPARISION BETWEEN MEANS OF TRANSPORTATION

Source: International Maritime Organization (IMO)

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Mode selection has significant impact on a company’s carbon footprint

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Change in CO2 emission in UE (1990-2004)

- 36%

- 33%

- 15%

- 13%

- 12%

- 11%

- 10%

- 5%

- 4%

- 3%

26%

-40% -30% -20% -10% 0% 10% 20% 30%

Transport

Energy industries

Residential

Average

Other (non-energy)

Services

Industrial processes

Agriculture

Industry (energy)

Waste

Fugitive emissions

Transportation - An important source of CO2 Due to

globalization and increased outsourced trends, transportation is the only sector that has increased CO2 emissions in the last two decades

Source: European Logistics Users Providers and Enablers Group ( ELUPEG)

EU

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Our response – SupplyChain CarbonCheck™ Maersk Logistics’ consulting service aimed at identifying carbon reduction potentials in supply chains

mounting pressure from stakeholders

ambitious CO2 reduction targets

untapped potentials in global supply chains

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SupplyChain CarbonCheck™ - comprehensive scopeThe scope can cover supply chain activities from the pick-up at the vendor’s factory until delivery to the point of sale

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Estimate current supply chain carbon footprint & costs

Simulate carbon footprint & costs of alternative scenarios

Implement solutions

Evaluate CO2 emission & cost reduction potential

SupplyChain CarbonCheck™ - a standardised approach4-step methodology based on internationally recognized emission standards

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Step 1: Estimate Current Carbon FootprintAs a first step, we map your current carbon emissions and provide you with a snap-shot of the carbon footprint of your supply chain

Carbon mapping of current supply chainwith Maersk Carbon Footprint Calculator

Result: Snap-shot of the supply chain’scurrent carbon footprint – the ‘AS IS’ scenario

Carbon Footprint Calculator

Global supply chain scope

Internationally recognised emission standards &calculation methodology

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Estimate Simulate Evaluate Implement

A B C D

A B C D

‘AS IS’

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A B C D

Simulation of alternative supply chain set-ups – ‘TO BE’ scenarios

Calculation of carbon emissions and total supply chain costs for each scenario

Comparison of ‘TO BE’ scenario with‘AS IS’ scenarios

Identification of CO2 reduction potentials

Step 2: Simulate Alternative Scenarios We then estimate carbon emissions for alternative configurations of the supply chain and compare the results with the current footprint

AS IS

A B C D

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TO BE 2

TO BE 1

TO BE 3

A B C D

A B C D

Estimate Simulate Evaluate Implement

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Evaluate carbon reduction potentials based on:

Step 3: Evaluate CO2 Reduction Potentials

Reduction potentials are evaluated under various aspects

Strategic fit

Impact on carbon footprint

Impact on total supply chain costs

Ease of implementation

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Concrete recommendations for implementation

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Estimate Simulate Evaluate Implement

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Preparation of roadmap for implementation

Maersk Logistics assists in putting agreed solutions into practice

Estimation of actual achievements in reducing carbon emissions after implementation phase

Step 4: Implement SolutionsMaersk Logistics assists in implementing the agreed solutions, thus helping you tap the full potential of carbon footprint reduction in your supply chain

CO2 Reduction

Time

Solution A

Solution B

Solution C

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4Estimate Simulate Evaluate Implement

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Strategic Level of Environmental Performance for theA.P. Moller Maersk Group

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What have we done so far?

Case Studies

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Your guide to greener supply chains - SupplyChain CarbonCheck™

AGreenerSupplyChain

AGreenerSupplyChain

NetworkDistributionOptimization

TransportMode

Optimization

TransportMode

Optimization

TransportCarrierSelection

TransportCarrierSelection

EquipmentUtilization

Improvement

EquipmentUtilization

Improvement

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Typically, lower carbon emissions come along with lower overall logistics costs and maintained or improved service levels – a win-win situation for our clients and the environment!

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THANK YOU FOR YOUR TIME