Greening of the Supply Chain - Case Itella

Size: px

Start display at page:

Download "Greening of the Supply Chain - Case Itella"

Spencer Tyler
7 years ago
Views:

1 Greening of the Supply Chain - Case Itella Sustainability in Supply Chains -Forum Hanken, Oct. 29, 2010 Hanna Kaustia, Director, Corporate Environment, Itella Oyj 1

2 Greening of the Supply Chain - Case Itella Itella in Brief Sustainable material and information flows Green Change 2

3 Itella in Brief Sophisticated solutions for product and information flows Itella Logistics road, sea & air freight, warehousing and other contract logistics Itella Information solutions for invoicing and financial management Itella Mail Communication delivery services and CRM solutions Track record of 370 years postal industry leadership of levering technology Operations in 15 countries All shares owned by the State of Finland Net sales MEUR 1.820, EBIT MEUR 47 (2009) employees 3

delivery services and CRM solutions Track record of 370 years postal industry leadership of levering technology Operations in

4 Itella s Service Offering Itella helps companies to sell, deliver and invoice consumers to buy, pay, use eservices and take care of other daily business Solutions of information and product flows for Digital Society Company Sales and Marketing CRM Supply Chain Management Invoicing Financials & Accounting Customer Consumers buy, pay, read, use eservices 4

information and product flows for Digital Society Company Sales and Marketing CRM Supply

5 Greening of the Supply Chain - Case Itella Itella in Brief Sustainable material and information flows Green Change 5

6 Global Transport and ICT Sector CO2 Emissions 2,8% 17,4% 25,9% 2% 13,5% 11,1% 7,9% 17,4% 2% Energy supply 25,9% Flights 2% Other transport 11,1% ICT 2% Residential and commercial buildings 7,9% Industry 17,4% Agriculture 13,5% Forestry 17,4% Waste and wastewater 2,8% 6 Source: IPCC

transport 11,1% ICT 2% Residential and commercial buildings 7,9%

7 Strong Growth Predicted in Transport Sector Energy Consumption 7 Source: EIA

8 Order of magnitude Life cycle assessment: Transportation The relative insignificance Agricultural production milk, meat, cotton etc Animal welfare, Fairtrade, Labour Standards, Forests Eg., transportation Illustrative Supply chain Operations Consumer - end use & disposal Washing clothes and disposal of waste food and packaging Impact on planet Consumer interest 8

9 Reducing Transport CO2 Emissions Service level Service level? Energy efficiency Renewable energy Modal shifts Price of CO2 9

10 Electronic services - Newspaper LCA Printed vs. web based vs. e-paper 10 Europe Sweden Source: KTH, Centre for Sustainable Communications, 2007

11 Electronic services - From Paper to Electronic Invoicing 11 /publications/reportfiles/sus_ 2008_3_moberg_et_al_repor t.pdf Source: KTH, Centre for Sustainable Communications, 2008

se/sustain /publications/reportfiles/sus_

12 Electronic services Itella ipost PRELIMINARY Biller laskuaineiston esikäsittely Itella Data warehouse laskun muodostu s tietovarast o Printing and delivery kuoritu s postitus Servers Conversions verkkolasku sähköinen jakelu Electronic delivery 12

muodostu s tietovarast o Printing and delivery kuoritu s

13 Greening of the Supply Chain - Case Itella Itella in Brief Sustainable material and information flows Green Change 13

14 B2B Customers Require Energy Efficiency 14 Source: IPC

15 Consumers Emphasize Recycled Paper and Electric Vehicles Attitude to environmental actions regarding mail delivery Absolutely Suhtautuminen ympäristövastuullisiin ratkaisuihin postinjakelussa ehdottomasti v älttämätön erittäin tärkeä melko tärkeä jonkin v erran tärkeä ei lainkaan tärkeä necessary Not at all important Kierrätyspaperi kuoriin ja painotöihin Recycled paper Sähköautojen lisääminen jakelussa More electric delivery cars Polkupyörien lisääminen jakelussa More delivery by bike Using biofuel Biopolttoaineen käyttö Using green electricity Ekologisesti tuotetun sähkön käyttö Carbon compensation Ympäristölahjoitukset haittakorvaukseksi Home delivery only every 2 Jakelu kotiin vain joka toinen päivä days 0% 20% 40% 60% 80% 100% 15 Itella Oy j - Kari Elkelä GallupKanav a (n=1291), Lokakuu 2008

Sähköautojen lisääminen jakelussa More electric delivery cars 17 33 27 18 5 Polkupyörien lisääminen jakelussa More delivery by bike 11 21 27 30 12 Using biofuel Biopolttoaineen käyttö 10 28 32 21 8

16 Itella s environmental program CO2 emissions -30%*, by 2020 Energy efficiency & renewable energy Vehicles: Economic driving, route optimization, combining transport Increase the share of alternative vehicles to 40% by 2020 Environmental requirements for transport subcontractors Facilities: Energy efficiency Adopt green electricity, in Finland by 2011 Development of ebusiness Voluntary compensation for emissions to encourage further emission reductions Providing customers with carbon neutral products -30 % 16 * compared to 2007, relative to turnover

subcontractors Facilities: Energy efficiency Adopt green electricity, in Finland by 2011 Development of ebusiness Voluntary compensation

17 Carbon Neutral Itella Green Services By using Itella Green services customers can effectively reduce the CO 2 emissions of their company s supply chain communicate environmental responsibility to their customers Achieving carbon neutrality 1. Reducing CO 2 emission through Itella s environmental program 2. Calculating remaining CO 2 emissions as part of Itella s environmental accounting 3. Compensation of remaining emissions by financing climate projects While delivering one letter emits 21 grams of CO 2 we ensure that an equal amount is reduced elsewhere Our selected climate projects are Gold Standard certified 17

Calculating remaining CO 2 emissions as part of Itella s environmental accounting 3.

18 Progress in Itella s Environmental Targets Carbon dioxide emissions relative to turnover (kg/eur) +0,8 % -6,9% -1,6% Electricity use in mailing centers, kwh/m2-1,2% Fuel efficiency in mail delivery, l/km (1734 vehicles)

Electricity use in mailing centers, kwh/m2-1,2% Fuel

19 Itella Environmental Program Communications and Employee Engagement (Project 1) Commercial opportunities, CO2 neutral products (Project 4) Supply Chain Management (Project 5) Fuel and transport (Project 6) Building energy (Project 7) Waste management (Project 8) Renewable energy / alternative fuels Energy efficiency KPI, Data, Reporting, Performance management (Project 2) Carbon Offsetting Corporate project ISO Certifications (Project 3 ) 19 BG/GF project

(Project 7) Waste management (Project 8) Renewable energy / alternative fuels Energy efficiency KPI, Data,

20 20

21 -30 % CO 2 Supply Chain Managemen t (Project 5) Building energy (Project 7) Fuel and transport (Project 6) Waste managemen t (Project 8) 21

22 Thank you! 22

Itella s principles of environmental accounting

1 (9) Itella s principles of environmental accounting 2 (9) Table of Contents 1 Introduction 3 2 Carbon dioxide emissions of owh vehicles, EN16 3 3 Direct and indirect energy consumption, EN3 and EN4 4