Railsponsible

Railsponsible WebinarWhat Climate Actions can Suppliers Take? November 27, 2018

Welcome!

Agenda

• Introductions and housekeeping

• Railsponsible Climate Position Paper

• Intervention from UIC

• Intervention from a Railsponsible member (SBB)

• Q&A and Close

Notes

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Our Speakers

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Tara NortonBSR ManagingDirector – SupplyChaintnorton@bsr.org

Giulio BerrutiBSR Associate Directorgberruti@bsr.org

Carole EscolanZenoUIC Manager of Unit -SustainableDevelopment

Nadia Stillhart DialloSBB Project Manager

Introductions: About Railsponsible

Railsponsible: Our footprint

EUR 50bnTotal procurement spend of Railsponsible members

41%Of member procurement spend has been covered by CSR assessments

13Companies are part of Railsponsible, ranging from suppliers to system houses to railway operators

900Suppliers have participated in the Railsponsible assessment program.

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Vision Sustainable procurement is a key driver of value

for business and society.

A global railway industry where all suppliers have in place good ethical, social, environmental and business practices.

Mission To continuously improve the sustainability

practices of railway industry suppliers.

To share best practices and processes, driving a shared understanding across the industry.

To use and share common tools, creating efficiencies

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Railsponsible was founded in 2015 by Alstom, Bombardier Transportation, Deutsche Bahn, Knorr Bremse, Nederlandse Spoorwegen (NS) and SNCF.

Today Railsponsible has 13 members and is looking at

expanding globally

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Our members today

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BSR: Global Nonprofit Business NetworkWe are a global nonprofit organization that works with our network of more than 250 member companies and other partners to build a just and sustainable world. From our offices in Asia, Europe, and North America, we develop sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.

Copenhagen

Guangzhou

Hong Kong

New York

Paris

San Francisco

Shanghai

Tokyo

Railsponsible Climate Position Paper

Setting the scene

Climate change is becoming a growing concern

Paris Agreement (2015), GCAS, 1.5°C IPCC Report (2018), COP24

Businesses need to transition and drive actively solutions

Transport sector is one of the main sources of GHG emissions

24.7% of global energy related CO2 emissions in 2015

Rail is considered as the greenest mode of transportation

4.2% of global transport CO2 emissions in 2015 (vs. 72.6% for

road,10.9% for aviation and 10.2% for marine)

But the rail industry supply chain has significant climate

impacts

Energy intensive raw materials, infrastructure development,

manufacturing, maintenance/overhaul, as well as end of

life/recycling

Rail industry commitment to reduce its carbon footprint

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Railway operators, system houses, and organizations within the vast rail

supply chain need to contribute more towards climate change mitigation.

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Railsponsible Climate Position Paper

Build a climate strategy

Set climate targets

Ambitious Renewable Energy Target

Ambitious Energy Productivity Target

Transparency / Reporting on Climate Change Impacts

Develop Governance, Management & Procurement Processes to support a climate program

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Proposed commitments for companies working in the sector

Commit to ambitious targets in line with the Paris Agreement and develop corresponding improvement plans

Develop a governance and management structurearound the strategy

Develop products and change or improve raw material input

Focus on the most impactful actions

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How to build your climate strategy

Alstom has adopted a « Climate and energy transition strategy » along three lines: • placing energy-efficient electrical rail solutions at the heart of its portfolio;• enabling the transition to sustainable mobility solutions;• decarbonizing its operations.

Develop concrete and measurable targets.

Start setting targets for Scope 1&2 emissions and work towards including the more challenging Scope 3 emissions.

Cascade targets tailored to different areas within your business (including procurement)

Railsponsible Member Examples:

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How to set climate targets

Zero emissions for mobility and

buildings by 2020

– NederlandseSpoorwegen

100% renewable energy by 2050

– Deutsche Bahn

Reduce energy intensity by 10%

in 2020 compared to

2014 - Alstom

GHG Assessment

clause introduced into

all transport and logistics

contracts - SKF

Engage the critical parts of your business

Focus on where you can create impact

Assess your energy and climate impact to get a benchmark

Incorporate climate into procurement and supply chain management

Encourage your suppliers

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Tips to go forward

Some practical tools for companies starting the climate journey:

• Setting targets: Science Based Targets Initiative• Understanding climate legislation: WMB Climate Policy Tracker• Calculating emissions : GHG Protocol or ADEME Carbon Footprint• Estimating freight emissions: EcoTransIT World

UICThe worldwide

railway organisation

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5 UIC global cooperation issues

serving the entire railway community

Environment &Sustainable Development

Safety & Security

Freight / Intercontinental corridors

Railway Signalling& Control Command

Standardisation UIC leaflets, IRS

UIC Members all around the world

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Coonabarabran,

Australia, 2018

Hanoi, Vietnam, 2018

Dortmund,

Germany, 2018

19UIC TARGETS

• Contribute to the UIC “LOW CARBON RAIL

TRANSPORT CHALLENGE”,

• Stimulate MODAL SHIFT TO RAIL in

national and international markets,

• Actively communicate to RAISE

AWARENESS,

• REPORT DATA on one’s company’s

indicators above on a regular basis in

order to promote and demonstrate the

continuous improvements at an

international level.

LOW CARBON RAIL TRANSPORT CHALLENGE

RAILWAY CLIMATE RESPONSIBILITY PLEDGE

• Final ENERGY CONSUMPTION from train

operations:

- 50% by 2030 (1990) and - 60% by 2050

• Average CO2 EMISSIONS from train operations:

- 50% by 2030 (1990) and 75% by 2050

• Railway SHARE OF PASSENGER transport (pkm)

by 2030: + 50% (2010) and +100% by 2050

• Railway SHARE OF FREIGHT land transport

(tkm): equal to road by 2030 and 50% greater

than road by 2050

Nadia Stillhart, Bern, 27 November 2018

Railsponsible Climate webinar.

SBB’s sustainability strategy.

SBB • Division • Department or Unit • DD.MM.YY 21

Responsiblevalue chain

Environmentally friendly rail travel

The four relevant areas for action.

SBB • Division • Department or Unit • DD.MM.YY 22

Sustainable procurement

Waste and recyclables management Energy Optimising

commuter flows

Sustainable traffic and service planning and spatial development

Green innovations

Conservation

Operationalsecurity

Combined mobility

Accessibility

Responsibility towards a circular economy

Responsibility towards the environment

Responsibility as an employer

Responsibility towards customers

Climate protection

Responsibility towards society

Attractive employment conditions

Occupational safety

Healthy employees

Lifecycle approach

Noise protection

Safe rail access

Ensuring a responsible and efficient value chain

Ensuring environmental advantage of passenger and freight services over

roads

Being a responsible employer

Making mobility and logistics services

sustainable and easy to access and use

Contributing to providing sustainable transport services and

real estate in Switzerland

Climate and energy targets.

SBB • Division • Department or Unit • DD.MM.YY 23

Sustainable procurement

Waste and recyclables management Energy Optimising

commuter flows

Sustainable traffic and service planning and spatial development

Green innovations

Conservation

Operationalsecurity

Combined mobility

Accessibility

Responsibility towards a circular economy

Responsibility towards the environment

Responsibility as an employer

Responsibility towards customers

Climate protection

Responsibility towards society

Attractive employment conditions

Occupational safety

Healthy employees

Lifecycle approach

Noise protection

Safe rail access

Ensuring a responsible and efficient value chain

Ensuring environmental advantage of passenger and freight services over

roads

Being a responsible employer

Making mobility and logistics services

sustainable and easy to access and use

Contributing to providing sustainable transport services and

real estate in Switzerland

-50% CO2 compared to 1990

-20% energy consumption from the bases case (or save 600GWh)

100% renewable energy for buildings (by 2019) and trains

30 GWh domestic energy with solar panels

95 GWh heating with new renewable energy

Specific climate targets

2030

2025

Great potential in the supply chain.

SBB • Division • Department or Unit • DD.MM.YY 24

Sustainable procurement

Waste and recyclables management Energy Optimising

commuter flows

Sustainable traffic and service planning and spatial development

Green innovations

Conservation

Operationalsecurity

Combined mobility

Accessibility

Responsibility towards a circular economy

Responsibility towards the environment

Responsibility as an employer

Responsibility towards customers

Climate protection

Responsibility towards society

Attractive employment conditions

Occupational safety

Healthy employees

Lifecycle approach

Noise protection

Safe rail access

Ensuring a responsible and efficient value chain

Ensuring environmental advantage of

passenger and freight services over roads

Being a responsible employer

Making mobility and logistics services

sustainable and easy to access and use

Contributing to providing sustainable transport services and

real estate in Switzerland

Potential

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Diesel for traction

Non-traction fuel

Electricity for buildings and facilities

Thermal energy for buildings and facilities

Traction current

Greenhouse gases

Employee mobility

Waste disposal

Material purchase

Supply chain

Partial amount

CO2eq. emissionsin the supply chain

CO2eq. emissionswithin SBB

Equivalent to tonnes of CO2

Extraction of raw materials Processing Completion(dir

ect suppliers) Electricity

Percentage of ext. emissions inthe supply chain

12% 36% 37% 16% 100%

GREEN HOUSE GASES (GHG) 52%

AIR POLLUTANTS 37%

WATER POLLUTANTS 2%

WATER CONSUMPTION 4%

LAND USE 5%

Almost 90% of the environmental impact in the supply chain is a result of the GHG and air pollutants, which are largely generated by direct suppliers.

25SBB • Group • KOM-SMN-NH • 1.5.2017

Example: new technology

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After thermal energy for buildings, diesel for traction is SBB’s biggest producer of CO2 emissions. Three Prima H3 hybrid locomotives have already been in use for test purposes at SBB Cargo in Wildegg and in enclosed areas of the Basel-Kleinhüningen port since mid-2017.

On 25 October following the successful test, SBB Cargo signeda contract procuring another 12 Prima H3 locomotives. This resulted in: Savings of 865,000 litres of Diesel or 2 400 tonnes of

CO2 every year (-50%) Other pollutant emissions reduced by up to 70%. Fewer noise emissions for residents The possibility of emission-free rail traffic in urban areas

or inside production halls

SBB • Group • K-SMN-NH

Background

Solution process

IssueNew forms of technology can replace fuels that damage the environment and are often more

energy efficient.

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Various types of sleepers are installed for the permanent way (wood, steel, concrete). Which is the most environmentally friendly sleeper, when observed throughout its life cycle?

To get to the bottom of the issue, an ecological assessment was commissioned for wooden, steel and concrete sleepers. The results showed that, in most scenarios, theconcrete sleepers are not onlythe most environmentally friendly, but also the most cost efficientthroughout their life cycle.

Depending on the scenario the greenhouse gas emissions produced using the concrete sleepers were 3 to 46% lowerthan when using the wooden sleepers

For concrete and steel sleepers, there is only one scenario observed in which concrete sleepers produce, in comparison, 5% lower greenhouse gas emissions.

SBB • Group • K-SMN-NH

Background

Solution process

IssueResources are limited and therefore need to be

used as efficiently as possible throughout the life cycle. This includes the choice of materials, ease

of repair and the possibility of upgrading and recycling the materials.

Example: resource efficiency and circular economy.

Example: packaging material.

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Rail fastenings used to be packaged and shipped in disposable frames. This resulted in a huge amount of waste, which needed to be disposed of for a fee. The wood and plastic were only used once.

In consultation with the suppliers, the problem was analysed and a solution using reusable frames was devised. By foregoing disposable methods of transportation, SBB can:

save 5 – 10% CO2 emissions. The financial savings amount to CHF 18,000 CHF per

year for rail fastenings.

Call for tenders: Minimum requirement in the logistics specification: Mandatory use of reusable containers

SBB • Group • K-SMN-NH

Solution process

BackgroundIssue

Packaging material can incur indirect costs. Reusable packaging or another sustainable choice

of material reduces costs and eliminates CO2emissions and waste.

Thank you.

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Q&A

Thank you.