Wednesday, June 3, 2020

Two Logistics Associated Groups Declare Their Ambitions for Improving Environmental Credentials

Cutting Fuel Use and Emission Production is at the Heart of Going Green
Shipping News Feature

DENMARK – NORWAY – WORLDWIDE – Going Green and being able to evidence one's environmental credentials is becoming ever more an essential part of an organisation's portfolio these days and now two major Scandinavian players in logistics associated sectors are letting it be known how they are coping with this.

Just months after freight forwarder Panalpina joined up with Danish trucking and logistics group DSV the reformed outfit has issued details of how it proposes to deal with the climate emergency. In November 2019, DSV Panalpina announced that it was committing to the Science Based Targets initiative (SBTi) and that the company would develop science-based targets for reducing its carbon footprint. Senior Director, Sustainability, Lindsay Zingg observed:

“When DSV and Panalpina joined forces in 2019, we decided to continue the commitment that Panalpina had to the Science Based Targets initiative. The fact that we, in less than 6 months, have been able to collect all the data from both companies in the middle of an integration process, develop ambitious targets and have them approved by the Science Based Targets initiative speaks volumes about our commitment to this initiative.”

DSV Panalpina has committed to reducing absolute scope 1 and 2 GHG emissions 40% by 2030 from a 2019 base year. DSV Panalpina also commits to reducing absolute scope 3 GHG emissions 30% over the same target period. Scope 1 and 2 refer to emissions from such areas as offices, warehouses and company cars, while scope 3 refers to emissions from subcontracted freight transports. CEO Jens Bjørn Andersen commented:

“With these ambitious targets we set a clear direction for our sustainability efforts for years to come. We intend to lead the way in our industry, and we know it will require a committed effort from the whole DSV Panalpina organisation to achieve our targets, but failure is not an option. We have a steadfast belief that sustainability and long-term business viability go hand in hand.”

In 2019, the Group’s total emissions amounted to 16 million tonnes CO2 of which the largest part was related to subcontracted freight transport. This means they must work closely with their subcontractors, shipping lines, airlines and trucking companies, in order to reach their targets.

The company already works closely with its suppliers and customers to implement smarter solutions and to choose greener options when economically feasible. Customers are offered services to optimise their supply chains in terms of cost and sustainability, including consolidating freight and optimising choices of transport modes, routes, and packaging.

Additionally, in a bid to drive down emissions, DSV Panalpina, alongside a bunch of its fellow nationals in associated trades and the energy sector, engages in initiatives such as the sustainable fuel partnership that was announced on 26 May 2020, which aims to develop industrial-scale production of sustainable fuels for road, maritime and air transport by 2030.

In Norway Aker BP which operates a fleet of advanced offshore charter vessels operating on the Norwegian Shelf, has signed a one year deal with Yxney Maritime for the use of its Maress software. The agreement, which has an option to extend is intended to give Aker BP insight into things such as fuel consumption and emissions thus providing data useful when aiming to decarbonise operations.

For a company such as Aker BP which is chartering vessels from a range of vessel owners, it can be a big task to gather and structure fuel and emission data. Maress solves this by connecting to available data streams from vessel hardware, and makes the data comparable across vessels, segments, or specific parts of the operations. Maress creates transparency and aligns the sustainability efforts of energy companies and vessel owners. Gunn Elin Hellegaard VP for Logistics & Marine in Aker BP commented:

“Aker BP is actively pursuing initiatives to optimise energy consumption and to reduce the carbon emission intensity from our operations. We have a close cooperation with some of the very best and most energy efficient vessel owners out there. Our ambition is that Maress will strengthen this collaboration even further and enable us to shave off several additional percentage points in the fuel consumption of the fleet that we charter.

”The environmental potential of this is significant. Energy efficient operations are in the interest of everyone involved, and core to Aker BP´s strategy. This will also be an important tool to drive improvement and enable full effect of the performance incentivised contacts with our Strategic Partners for Platform Supply Vessels.”

Aker BP will be able to use Maress to closely follow the efficiency development of single vessels and the chartered fleet as a whole. In addition to creating a solid foundation for deciding what fuel saving initiatives to deploy, it will also be possible to evaluate the direct savings from specific initiatives such as the installation of a battery system on a vessel. Yxney CEO Simen Sanna concluded:

“There is an incredible momentum in the industry now to reduce the emissions from operations. Having the right insight and willingness to act on it determines the winners of tomorrow. Aker BP has clearly demonstrated a capacity to use advanced data-driven solutions to get an edge. We look forward to cooperating with Aker BP in this spirit, and to create tangible emission reductions”.