Carbon management in the supply chain Mike Bernon

The scope….. Plan SourceMakeDeliver Return Design Disposal Consumer Product life cycle is important because……

The major impacts may be beyond our part of the supply chain… Reduced energy consumption during consumer washing (up to 75% of PLC energy can be in washing) 30-40% less energy in manufacturing (source P&G) Packaging reduction of 14 – 45% (source P&G) Half the number of vehicle movements needed (source P&G)

Industry sector……… Depending on the report, the global cement industry is responsible for between 5-9% of total CO2 The FAO report found that current production levels of meat contribute between 14 and 22 percent of the 36 billion tons of "CO2-equivalent" greenhouse gases the world produces every year. Source: United Nations Food and Agriculture Organization (FAO)

Carbon Management Scope – levels 1,2 & 3 CO2 or CO2e And how do we account for it

Tesco’s carbon footprint Source; Tesco.com accessed 28/1/08

Carbon footprint by product / unit

However considering logistics impacts….. –Transport accounts for 20 to 24% of UK carbon emissions –Aviation climate change effects worldwide could increase by % 1992 – 2050 –Vehicle trip distance lengthening –Modal switch away from train/sea to lorry and air –24% of all UK food vehicle kilometres run empty (Freight best practice) –And 74.8% deck utilisation

Some simple examples of abatement….

Transport Improved maintenance Energy efficient tyres 10% difference between best & worst performing Alternative fuels Advanced vehicle routing & scheduling Driver training & behaviour 7% fuel saving Aerodynamic design 16% more load 10% fuel saving 20% CO2 reduction Tyre pressure

Vehicle fill ISO packaging Shipping unit Vehicle unit

Warehousing Wind turbine 50% of lighting G.Park Blue Planet in Staffordshire delivers environmental benefits & reduce total energy and water cost in use savings of up to £300,000 per annum.” Recycled concrete aggregate Better insulation Solar pre-heating for water Photovoltaic panels Optimisation of roof lights Energy efficient lighting ‘Green roof’

Modal switch All variants of SkyCat consume as much as 70% less fuel per tonne kilometer than conventional aircraft

Advanced planning & collaborative networks - IGD

Thank you for listening Senior Lecturer Cranfield Centre for Logistics & Supply Chain Management Cranfield School of Management # xt2573 Mike Bernon

CO2 reduction BMW USA The recycled methane gas from a local landfill site that we get not only provides energy for 50% of the plant's total energy, but it also helps us reduce energy costs. Source: BMW website accessed Feb 2009