Signe Bruun Jensen, Env. Partnership & Policy Manager, Maersk Line

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1 CPMR Workshop: Developing maritime transport, an obligation for a sustainable EU Maersk Line s Route 2 Sustainability Signe Bruun Jensen, Env. Partnership & Policy Manager, Maersk Line

2 Maersk Line is an enabler of global trade, a purveyor of the products and services that connect the world s populations and economies. Shipping affects the lives of billions of people, with 90% of the world s international trade travelling by sea.

3 Current Market Situation An Industry in Transition? Fuel costs used to be low and predictable CO2 and climate change used to be a non-issue for shipping We used to think A to B rather than think entire customer value chains Supply chain risks and impacts used to be limited to securing supply at the right price

4 As a starting point, container shipping is already quite energy efficient

5 The energy efficiency lies in the size and scale of operation: tons of goods per km

6 Maersk Line Environmental Impacts 1. CO 2 emissions: 33,8 million tonnes in SO X and NO X emissions : 597,000 tonnes SO X and 854,000 NO X in Finite resources: 400,000 metric tonnes of steel for 18 ships 4. Ballast water, risk of discharges and spills to water and waste 5. Use of paint and chemicals

7 Key environmental targets 25% reduction in relative CO2 emissions by 2020 Drive own and industry SOx emissions to zero Drive negative impacts on the marine environment to zero

8 Our customers are beginning to demand greater transparency and better CO2 performance Our expectation is that our providers are permanently looking into improved ways of shipping our goods with less carbon emission but by maintaining or improving the service levels. It s not about meeting, but exceeding and setting new industry standards. - Volker Daut Head of Dest. Transport & Logistics, Adidas Group

9 And we re rising to the challenge Source: Clean Cargo Working Group (2011)

10 A small step ahead of the industry on CO2 10% 15% 25% 50% Lower on CO2 than industry average CO2 per TEU reduced since 2007 CO2 per TEU will be reduced before 2020 if not more! 20 Triple-E vessels will produce 50% less CO2 than the industry average on the Asia- Europe trade lane

11 To help our customers reach their targets! Supply chain collaboration plays a crucial role to become faster, more cost efficient and more sustainable in our end to end operation. We are looking to others outside our industry to help us improve this. Our partnership with Maersk Line is a great example. - Simon Smith Vice President, Logistics Maersk Line as a global leader in sustainability enables us to differentiate service providers by their carbon emission intensity and integrate that into our future cargo allocation plans. - Neil McKenna, Vice President, Transportation Our expectations for Maersk Line are that we together go as far as we can with the well know factors of environmental logistics. We also need to focus on innovation to secure that next generation logistics can start to reduce the major impact that transportations has on emissions globally. -Robert Ingvarsson Group Transport Manager

12 Innovating for the future: New Groundbreaking Product: Triple-E Energy efficiency Economy of scale Environmentally improved

13 The world s largest ship will fit into a cradle All new Triple-E vessels will come with a Cradle to Cradle passport The most comprehensive material documentation system in shipping This will help us cut down on resource use, pollution and waste

14 Improving on the best equipment out there Cooling & Refrigerants: Environmentally friendly refrigerants Insulation: Improved energy efficiency Ventilation & Airflow: Improved cargo care and hygiene Materials & Construction: Environmentally friendly and recyclable Power: Reduced energy consumption and emissions

15 Enabling sustainable growth of high-potential industries <1% 28% 22-30% 190,000 96,000 Percentage of Indian bananas exported India s share of world banana production Of the bananas are wasted due to the absence of effective cold chains Containers could be exported if India was to realise its growth potential Represents the full job creation potential of increasing Indian banana exports

16 Everyone talks about CO 2. We also act on SO x Maersk Line first to switch to low sulphur fuel 7800 ton SO x reduction YTD 80-95% sulphur reduction in 17 ports Zero SO x programme and 10 fuel switch implementations before 2015

17 Creating sustainable value chains together: The Sustainable Shipping Initiative (SSI) brings together leading companies from across the industry to plan how shipping can contribute to - and thrive in a sustainable future

18 Invited to join a group of the 50 highest companies performing on sustainability

19 Join us on Route 2 At Maersk Line we are continuously looking at ways to improve supply chain efficiency. We do so best by looking into better ways of shipping goods with less carbon emissions while continually improving our service levels. It s not about meeting, but exceeding industry standards. Thanks for joining us on our route 2 sustainability.

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