IBM and the U.S. EPA s SmartWay SM Transport Partnership
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1 IBM and the U.S. EPA s SmartWay SM Transport Partnership Steven Wysmuller, Corporate Environmental Affairs July 9, 2008 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
2 A Longstanding Commitment IBM has been publicly committed to environmental leadership for decades CEO T.J. Watson, Jr. established first corporate environmental policy 37 years ago (in 1971) Current policy commits IBM to environmental leadership in all its business activities IBM's Global Environmental Management System covers all intersections between IBM and the environment First company in the world to earn a single global registration to ISO nearly 11 years ago (December 1997) IBM has publicly disclosed its environmental performance each year for 18 years in a row (since 1990) through a voluntary corporate environmental report Made possible by IBM's longstanding management system 2 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
3 IBM s Comprehensive Energy Efficiency and Climate Protection Program Reducing GHG emissions associated with the company s operations: Conserving energy Using renewable energy Supporting alternate employee commute options Reducing perfluorocompound (PFC) emissions Increasing the efficiency of its logistics Developing energy efficient products and providing diverse solutions for energy efficient data centers Collaborating with our clients and others on innovations that help protect the world s climate, consistent with IBM s values: dedication to every client s success, innovation that matters - for our company and the world, and trust and personal responsibility in all relationships. 3 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
4 Increasing the Efficiency of its Logistics Operations One Example IBM joined the U.S. EPA s SmartWay Transport Partnership in Benefits of participation: Improve business efficiency and environmental performance by: Identifying opportunities for continual improvement both internally and through supply chain Reducing logistics cost Reducing logistics related GHG emissions Sharing best practices with peers and suppliers Gain recognized environmental and operational leadership 4 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
5 Highlights of IBM s SmartWay Leadership Key SmartWay Results Implemented SmartWay Signage Incorporated SmartWay Language in to Contract Language Study of Outbound Logistics Transport Related Carbon Dioxide Emissions IBM and the Environment Report 5 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
6 Key SmartWay Results To-date, IBM has increased its percentage of U.S. transport spending with SmartWay carriers by nearly 30% since joining SmartWay two years ago. Over 85% of our U.S.-based transport spend is with SmartWay transport carriers Engaged our transportation and logistics carriers, resulting in their joining the SmartWay Transport Partnership Voluntarily extended IBM's commitments under SmartWay to Global Logistics operations outside of U.S. 6 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
7 Implemented SmartWay Signage A recent example of a SmartWay sign posted at the IBM Poughkeepsie, NY facility. In total, eight IBM dock locations in the United States plan to have SmartWay signs posted. All IBM dock locations have No Idling signage and policies in place. 7 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
8 Incorporated SmartWay Language in Contract Language IBM is committed to be an environmental leader in its business operations and values participation in the EPA SmartWay Transport Partnership (STP). This is a program in which transporters commit to reduce greenhouse gas emissions and air pollution and to improve fuel efficiency of ground freight transportation. IBM views participation in STP as a potential qualitative differentiator. Please identify if you are currently a member of STP. If you have plans to participate in the near future, please indicate the proposed target date. 8 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
9 Incorporated SmartWay Language in Global Contract Language (Spanish) IBM está comprometida a ser un líder ambientalista en sus operaciones y valores empresariales y participa en programas apoyando este esfuerzo. Por ende, anticipamos que los proveedores de logística a IBM se comprometerán y participarán en los programas que reducen la emisión de gases del efecto invernadero y la contaminación atmosférica mejorando así la eficacia en el uso de combustible en todos los aspectos de transporte de carga. IBM considera la participación en programas ambientales como un diferenciador cualitativo y continuará influenciando nuestra base de proveedores para que sea activa en este esfuerzo. Resuma por favor cualquier programa que usted tenga implementado para reducir las emisiones de gases de efecto invernadero y contaminación atmosférica o programas para mejorar la eficacia en el uso de combustible. Si usted tiene planes para crear tales programas en un futuro cercano, indique por favor la fecha propuesta para la implementación." 9 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
10 IBM Study of Carbon Dioxide Emissions Related to Outbound Logistics Transport Using IBM s Carbon Trade-off Modeler Approximately 250,000 shipment records from 2006 were studied for North American Routings. Six product families were represented in the sample ALK Technology s PC*MILER Streets was used to capture the mileage over truck-specific routes. Air distances were computed as a geometry function of latitude and longitude coordinates and the earth s circumference. Carbon Dioxide Emission Factors were taken from National Renewable Energy Laboratory (NREL). Mode Description Average Shipment Milage Courier 20 Expedite Truck 518 Air 869 LTL 887 LTL - Expedite 1,742 Padded Van 905 Parcel Post 948 Truckload 375 All Truck 918 Average distance traveled by a shipment for each transportation mode Transportation M ode Diesel Barge 41 Diesel Truck (com bination) 117 Diesel Truck (single) 250 Locom otive 28 Air 1270 Carbon Dioxide Emission Factors for various modes (source NREL) 10 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
11 IBM Study Summary - Total carbon dioxide emissions from approximately 250,000 shipments was close to 28 thousand tons. Total weight traveled (kg) Carbon dioxide emissions per mile-ton (kg) Average mile per shipment Total Travel (ton-miles) Total carbon dioxide emissions (tons) Carbon dioxide emissions price ($/ton) Market value of carbon dioxide emissions($) Courier 3, Expedited Truck 486, , ,085 LTL 12,231, ,849,565 1, ,663 LTL - Expedite 14,239, ,804,662 2, ,683 Padded Van 23,319, ,103,903 2, ,766 Parcel 5,224, ,952, ,300 Truckload 19,852, ,444, ,020 All Truck 75,357, ,178,312 8, ,530 Air 17,945, ,594,500 19, ,032 Total 93,302,978 85,002,152 27, ,026,549 Note: Carbon dioxide emissions price based on data from European Climate Exchange on May 1, Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
12 Air shipments accounted for only 18% of total mile-tons traveled by IBM outbound finished goods and they contributed 71% to the related carbon dioxide emissions (based on this 2006 data set) Total travel (ton-miles) Total carbon dioxide emissions (tons) Air 18% All Truck 29% All Truck 82% Air 71% 12 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
13 Highlighted SmartWay in IBM and the Environment Report 13 Faster Freight Cleaner Air (New York, NY) July 8-10, 2008
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