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Does Your Company Care About The Environment As Much As Consumers Do?

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Archives, Global Trade Daily, International Trade

Does Your Company Care About The Environment As Much As Consumers Do?

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It’s not just a product’s quality that compels consumers to purchase it. More people today care about how the item was manufactured and whether the company is harming the environment.

Studies show sustainability is a factor driving customers’ buying decisions. Recent research by IBM revealed that nearly six in 10 consumers surveyed are willing to change their shopping habits to reduce environmental impact, and nearly eight in 10 indicated sustainability is important to them.

That’s why companies can’t afford to pay only lip service to sustainability issues, says David Radlo (www.davidradlo.com), best-selling author of Principles of Cartel Disruption: Accelerate and Maximize Performance, and an internationally recognized expert on corporate innovation and leadership.

“Organizations are under increasing pressure from customers, investors, employees, banks, legislators and insurance companies to embrace social and environmental concerns,” Radlo says. “Studies increasingly show that the business benefits of sustainable strategies can be quantified and are real. There is a significant amount of money to be made and saved in the area of sustainability. It can give you a competitive advantage and improve your brand image, and it can also spur innovation.”

Radlo offers these points on how companies can prioritize and improve sustainability while turning it into a win-win for the environment and their business:

Assess your company’s sustainability level. “Most companies don’t know where to start,” Radlo says. “You start with a complete assessment. As it is conducted, link your sustainability efforts to the strategic plan and how it will impact your stakeholders. Determine your current status and what improvements you’d like to make.”

Identify ways to reduce waste and emissions. “Waste and pollution are indicators of inefficiencies, which tend to generate unneeded costs and environmental problems,” Radlo says. “The goal is to achieve breakthroughs that would lead to manufacturing without any form of waste and no carbon equivalent emissions. Waste elimination is achieved at the source through product design, producer responsibility, and waste reduction strategies down the supply chain. Some concepts to eliminate waste include cleaner production, product dismantling, recycling, reuse, and composting.”

Create an implementation plan and operationalize. “Develop your people for this important transition,” Radlo says. “Along the way, improve your processes and focus on the outcomes you wish to achieve. What measurement can you put into place concerning your customers, employees, stakeholders, and shareholder loyalty?”

Permeate the work culture, in addition to financial sustainability, with a go-green mentality. “The more that overall sustainability is ingrained and practiced in your culture, the stronger the company’s commitment is, and the message spreads organically and authentically,” Radlo says. “When your organization becomes a steward of the environment, and you fully integrate sustainability into your culture, the company now has a long-term vision and the processes in place to continue it.”

“Sustainability works for the greater good of any organization,” Rado says, “and it creates progress toward environmental and social improvement.”

_____________________________________________________________________

David Radlo (www.davidradlo.com), best-selling author of Principles of Cartel Disruption: Accelerate and Maximize Performance, is an internationally-recognized expert in leadership, innovation, and growth. He is a partner with RB Markets-Achievemost, a Masters professional outside director, a growth coach, and an International Fortune 500 speaker. He is experienced in the U.S. and globally, building sustainable consumer food brands such as Born Free, Farmer’s Best, and Egg-Land’s Best, and has personally negotiated agreements with Fidel Castro. He works with senior executives, venture firms, private, public, family, and college entities. His accomplishments in his 28 years as a CEO include delivering a six-fold increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), and a 30-fold increase in enterprise value. He is a graduate of Tufts University and NYU’s Stern School of Business.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

SUSTAINABILITY LOVES COMPANY AND THE AIR CARGO INDUSTRY LOVES SUSTAINABILITY, BASED ON RECENT DEVELOPMENTS

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On Dec. 10, the final day of its Digital Air Cargo Forum, The International Air Cargo Association (TIACA) presented the 2020 Air Cargo Sustainability Award to Pelican BioThermal. 

The Plymouth, Minnesota-based temperature-controlled packaging company was singled out for its work to improve sustainability through the manufacturing and use of Crēdo, a durable and reusable temperature-controlled shipping container, and similar packaging.

“Our efforts to improve sustainability in manufacturing and our products are far-reaching—helping us and the companies we work with to achieve sustainability goals,” says Pelican BioThermal President David Williams. “We are honored that an independent panel of judges recognized the work we are doing to protect our natural resources and the environment, as well as advance sustainability within air cargo.”

Runners-up to Pelican BioThermal in the corporate category were skypooling and VRR, which also presented solutions in the area of sustainable shipping containers.

Nepal Flying Labs won in the Start-up category for its Drone Optimized Therapy System, which flies humanitarian and medical cargo drones to remote and hard-to-reach locations in Nepal. 

A total of 23 companies applied to receive Air Cargo Sustainability Awards, which recognize those making positive change by supporting social welfare, economic development and environmental protection through innovation and partnerships, according to TIACA. 

Judges who evaluated all the entries are: Chris McDermott, CEO, CHAMP Cargosystems, one of the leading industry IT solutions providers and a partner with TIACA in the Digital Air Cargo Forum; Deniz Kargaci, manager of Corporate Sustainability Management, Turkish Airlines; Eng Naif Al-Abri, CEO of TRANSOM; Steven Polmans, director of Cargo and Logistics, Brussels Airport; and Susy Schoneberg, head of Flexport. They looked at business solutions in carbon and waste reduction, drones, humanitarian aid, packaging, ULDs, process efficiencies, people focus and COVID-19 relief.

“Sustainability4Cargo” was among the topics of discussion during the first week of the forum, where it was concluded that sustainability does matter to the air cargo industry, having become a real strategic priority for cargo companies, many of which have concrete actions in place.

“Our industry remains committed to reducing its environmental footprint and many companies have implemented digital transformation, operational improvements and addressed reliability and quality of service issues putting us on track to being more sustainable,” states a TIACA follow-up report on Sustainability4Cargo. “The COVID crisis has added a new dimension to sustainability which our industry has rapidly adapted to–resiliency.”

Carriers Get in on the Sustainability Action

Among the Digital Air Cargo Forum sponsors was Polar Air Cargo Worldwide, which aims to be the world’s most sustainable cargo airline, according to Abilash Kurien, the company’s vice president of Marketing, Revenue Management & Network Planning.

“To achieve this goal, we are focused on digitizing our operations, fostering a culture of learning that makes our team best prepared for the future, and driving toward environmentally sustainable practices,” Kurien says. “These activities are critical for long-term success, not just for Polar but for the air cargo industry as a whole.”

Digitization will be key in achieving Polar’s sustainability ambitions, he adds. “Digitization will help drive sustainability by eliminating unnecessary steps and decreasing time, effort and materials used. E-air waybills, for example, will reduce paper. AI deployment will result in more efficient planning and reduced fuel consumption.”

Polar also encourages and incentivizes its employees “to raise ideas for more sustainable business practices so that we can minimize our impact on the world around us, and ultimately contribute to repairing environmental damage,” Kurien says.

“We are on the cusp of evolution in the air cargo industry; the key is embracing the change, and working with and listening to the employees who keep the business moving and deliver service for our customers that exceeds expectations. Industry participants that focus on digitization, culture and training, and environmental sustainability will be at the forefront of the future state of air cargo. With the right vision, and an openness to new ideas, the possibilities are limitless.”

The vision thing is also at play at United Airlines, which in December made a commitment to reduce its greenhouse emissions by 100 percent by 2050. How? Partly by continuing some of its existing initiatives—such as buying carbon offsets; using more Sustainable Aviation Fuel (SAF) than any airline globally; and investing in the development of SAF and other decarbonization technology—and partly by funding revolutionary “carbon-capture” technology that is expected to capture and store millions of metric tonnes of CO2 per year.

Chicago-based United is the world’s first airline to commit to investing in Direct Air Capture technology. Specifically, the carrier helping 1PointFive build the first industrial-sized Direct Air Capture plant in the country. A single plant is expected to capture and permanently remove 1 million tons of CO2 each year–the equivalent of the work of 40 million trees, but covering a land area about 3,000 times smaller.

“As the leader of one of the world’s largest airlines, I recognize our responsibility in contributing to fight climate change, as well as our responsibility to solve it,” says Scott Kirby, United’s CEO. “These game-changing technologies will significantly reduce our emissions, and measurably reduce the speed of climate change–because buying carbon offsets alone is just not enough.

“Perhaps most importantly, we’re not just doing it to meet our own sustainability goal; we’re doing it to drive the positive change our entire industry requires so that every airline can eventually join us and do the same.”

“We welcome United’s positive announcement to support the reduction of greenhouse gases,” says Patrick R. Gruber, CEO of Gevo, an Englewood, Colorado-based SAF company. “We wholeheartedly agree SAF is the fastest and most effective way United can reduce its emissions.” 

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Archives, Global Logistics Planning Guide, Global Trade Daily

GLOBAL TRADE’S ANNUAL LOGISTICS PLANNING GUIDE CAN PUT YOU IN THE POWER POSITION AGAIN

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For a supply chain to truly function well it needs to be flexible, operating under a ‘bend but don’t break’ principle that allows it to scale to needs and to be maneuverable enough to escape blockages and delays along the route. Much like a muscle, however, this is fairly unlikely to simply come naturally. It takes preparation, training, and stretching to build a muscle into something with the capacity and flexibility to go through rigorous moments of endurance or sprinting. 

This analogy begins a follow-up report on the Supply Chain USA Virtual Summit 2020 by Alex Hadwick, editor-in-chief for Supply Chains with Reuters Events, which presented the online event in partnership with ABBYY, a digital intelligence company.

Hadwick discovered that numerous experts from across the supply chain space agreed that critical lessons must be learned from the disruption of 2020 as well as broader industry trends.

“Visibility now underpins the capacity of a supply chain to react to change, strengthens its ability to provide strong customer service, and allows more flexible supply chains and the introduction of automation,” Hadwick writes.

“By building a strong and systemic approach to the view over the supply chain then we can begin to train to become more effective in handling the new environment. That environment is changing rapidly and e-commerce growth is causing supply chains to move faster, but they have to balance the demands with sustainability goals, both of which require the right reporting capabilities in order to succeed.”

Catch-up mode

Interestingly, among the notions presented at the summit was that while the global pandemic ushered in new, strengthened e-commerce normal, the industry is still catching up to global demand. 

“Even before COVID, we’ve had significant disruption over the last few years that I think is going to continue to change the way we do business for the future,” mentioned summit participant Robert Sanchez, Chairman & CEO of Ryder System. “It’s the three suspects that you all probably know: e-commerce, driven by Amazon; it’s asset sharing, driven by Uber; and it’s the next generation vehicle – the electric and autonomous vehicle, that is really driven by, I would say, Tesla.”

The silver lining may be that industry players now have their radars up for disruption. The days of, say, a Crown Books pooh-poohing a threat by an upstart like Amazon may be as over as … well, Crown Books.

As Ravi Dosanjh, head of Strategic Programs at Intel said to bring us full circle to Hadwick’s opening: “The muscles we build in supply chains during the numerous disruptions come into play now, and I think it sounds obvious, but you need to enable the right muscle, the right capability at the right time. That’s something that doesn’t happen by accident.” 

Ed Barriball, a partner with McKinsey & Company, continued the flex fest by first noting, “You need to bring together a mosaic of data,” from external providers, and from within that is merged “to start to get an idea of who I’m actually buying from, or my suppliers are buying from. 

“Once you have all that information, understand where your vulnerabilities and risks are in the supply chain. And for a lot of folks, I think that’s a new muscle to be working.” 

Visibility is key 

Another area of agreement among the experts, according to Hadwick’s report, was the need to institute real-time visibility in the supply chain.

“I think it’s critical when you think about supply chain visibility technology, that it’s providing visibility across all nodes. That enables network collaboration and exception management,” said Dave Belter, VP & GM of Global Transportation Management, Ryder System.

However, more must be done, added Russell Felker, CTO of GlobalTranz: “I feel like in some ways, we’re at the point that electronic medical record systems or electronic health record systems were at toward the end of the 1990s and into the early 2000s, where they were standing up all these things to capture data, but had no formality of how they talk to each other.

“Both of your doctors might have a way of keeping your data electronically, and they had no way to get it to each other, and so they would print it and fax it. We’re kind of at that point where we have these systems that exist and that capture pieces of information, but they don’t have a clear method of handing information off, maintaining chain of custody, and maintaining that visibility [and] the sanctity of the information, as it traverses.” 

That is why Belter finds it critical that supply chain visibility technology must be provided “across all nodes. That enables network collaboration and exception management.”

Taking a hard look at your entire move through the supply chain will uncover areas for improvement—and ultimately greater market share, according to the experts.

“Where we see a significant demand is around what’s called process mining and discovery, where you actually analyze event logs from various disparate systems of record and visualize process behaviors as they occur,” said Andrew Pery, a process intelligence expert at ABBYY.

Such examinations can help you identify areas where, for instance, more automation would be beneficial or risks and potential legal entanglements can be avoided, Pery noted.

Which brings us to the last mile

 “The last mile is the most complex piece of the puzzle in the supply chain—because it’s the end part, everything has to work upstream for that delivery to go perfect,” said summit participant Erik Caldwell, president of the Last Mile at XPO Logistics.

One thing that is becoming obvious, according to Tom Galluzzo, founder, and CEO of IAM Robotics, is that there will not be enough flesh-and-blood workers to maintain a flawless last-mile experience. 

“The reality is that it’s going to continue to evolve toward more automation, more force multipliers being used,” Galluzzo says in the summit follow-up report. “Whether that’s warehouse execution systems continuing to get smarter and optimizing the way internal operations are run within supply chain buildings, or actually leveraging robotics to do some of the physical moving material, that’s all going to continue pretty strongly over the next five to 10 years.”

Please sustain me

Hadwick goes on to cover sustainability in the supply chain, which, given the pressures of last-mile, micro-fulfillment, and a customer base that seems to expect goods ordered today yesterday, one helluva challenge. 

Among the ideas presented at the summit that could offer a solution is moving supply chain facilities closer to the customers. As Michael Murphy, executive vice president of Development at industrial real estate developer CenterPoint pointed out, the giant e-commerce facilities are less often feeding stores directly and more often shipping goods to smaller distribution outlets.

“Moving the supply chain closer to the consumer is a huge priority right now for a lot of organizations,” noted IAM Robotics’ Galluzzo. 

In conclusion …

Pery, the process intelligence expert at ABBYY, contributes the summit follow-up’s conclusion: “It’s evident no matter which stage of the supply chain logistics providers serve, having good process workflow and visibility into the specific events, activities, and people involved with each step is critical to successfully completing the last mile and delivering a positive customer experience.”

He and Hadwick before him take deeper dives into each of the sections presented above. If you would like to read their full report (for free!), visit https://1.reutersevents.com/LP=29531.

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Archives, Global Trade Daily, News, Trucking

DHL Goes Green with BYD Electric Trucks

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Build-Your-Dreams continues to make headlines by adding more options in sustainable fleet solutions for the global and domestic transportation arenas. The world’s leading electric vehicle company announced this week that DHL added four of its Class 8 battery-electric trucks to support operations in Los Angeles.

The four trucks will undergo piloting in the Los Angeles region before hauling goods to and from the DHL LAX Gateway and other facilities. The BYD-manufactured transportation solutions are in addition to DHL’s robust order of 72 total all-electric battery-powered vans with other various vendors, according to information released.

“As a global leader in logistics and express services, DHL has proved that they’re serious about their commitment to transition to zero-emission trucking,” said John Gerra, Sr. Director of Business Development at BYD Motors. “DHL is doing more than just talking about it; they’re actually putting BYD electric trucks into commercial service, today.”

DHL currently utilizes environmentally-conscious fleet options including fully electric, hybrid-electric, and clean diesel, and low-power electric-assist e-Cargo Cycles. As part of the Strategy 2025 initiative, the Deutsche Post DHL Group continues making significant progress in sustainable operations after announcing the goal of net-zero logistics-related emissions by 2050.

“The introduction of these efficient electric trucks is a huge step forward, not only toward achieving our own clean transport goals, but also California’s ambitious goals on the adoption of zero-emission vehicles,” said Greg Hewitt, CEO of DHL Express U.S. “By implementing these electric trucks, we will prevent more than 300 metric tons of greenhouse gas emissions from entering the atmosphere per year, as we continue to grow and enhance our clean pick-up and delivery solutions.”

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Old Dominion Confirmed for the 2020 EPA SmartWay Excellence Award

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Old Dominion takes leading sustainability efforts in the trucking industry to a new level. Thanks to its role within the SmartWay Transport Partnership, the LTL carrier has contributed to the savings of 279.7 million oil barrels, $37.5 billion in fuel costs, and 134 million tons of air pollutants, according to information released. These successes in addition to consistent efforts in sustainable operations have earned Old Dominion the EPA SmartWay Excellence Award award for the sixth year in a row.

“Sustainability is a critical component of Old Dominion’s operational strategy. We’re committed to being a good corporate citizen and our partnership with the SmartWay Transportation program helps us move towards being a more sustainable carrier,” said Greg Gantt, president and CEO, Old Dominion Freight Line.

The award and 11-year partnership with SmartWay support Old Dominion’s position as a leader in sustainable operations within the freight supply chain arena. Old Dominion represents one of roughly 3,670 companies in partnership with SmartWay. SmartWay partners range from freight shippers to manufacturers, cargo owners, retailers, and more.

Sam Faucette, Old Dominion’s vice president of safety and compliance, received the award on behalf of the company on November 5th during the EPA SmartWay Excellence virtual conference.

“We will continue to look for ways to improve our sustainability practices and ultimately reduce our carbon footprint. We are humbled by this recognition and thrilled to receive this award for the sixth consecutive year,” Gantt concluded.

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Archives, Commentary, Global Trade Daily, Special Reports

How to Make Quality and Environmentally-Friendly Electric Cables & Wires

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Sustainability: The Need of the Hour

It is no secret that the world is facing an environmental threat. Various industries are trying to control the carbon emission generated by them. The electronic sector also rose to the cause. Particularly the wire and cable industry is taking numerous initiatives. They are trying to use biocomposite plastic. They also increased the focus on the recycling of non-renewable resources. But, there are merits and demerits attached to every effort towards sustainability. Let’s look at the initiatives taken by the industry and the challenges they are facing.

Green Cables

Modern manufacturing techniques enabled the production of “Green Cables” and wires. So how can we transform regular electric cables into green cables? There are two ways to do it. One is to focus on its material, and the other one is its manufacturing process. The demand for green manufacturing materials is increased due to the increase in the number of green buildings. Thus, the green cable is the rising trend in the electronic manufacturing industry.

Eco-friendly Material

The materials which are used for manufacturing are usually climate-friendly materials. They are biodegradable and modern materials such as halogen-free jacketing. They are not made up of the ingredients labeled as hazardous towards the authorities’ environment. The European Commission for the Environment and U.S. Environmental Protection Agency is generally referred to as identifying its sustainability.

Are they helpful?

These materials also help in getting the U.S. listing of LHSF. As they create minimum smoke being halogen-free. However, it affects the life span and quality of the cables. This ultimately increases the need for more replacement and reinstallation in comparison to the traditional PVC cable. So is ita completely sustainable option? Well, not really!

Manufacturing Process

Another way in which you can identify a green cable is through its manufacturing process. It is energy efficient and environmental friendly. Such manufacturing prioritizes the least carbon emission, maximum recycling, and harmless disposal of waste materials.

Is it Green?

Although the process seems sustainable, it doesn’t have much control over the materials being used. Secondly, the manufacturing process cannot control carbon emission completely. It requires a lot of planning, proper implementation, and investments. If anything amongst these factors is misplaced, the process automatically becomes less effective.

Something Is Better Than Nothing

The above information states that we cannot call a cable completely environment friendly. Yet, it makes a lot of difference. These efforts make a cable more or less sustainable or green, as we may call them.

Another Key to Be Environment Friendly: Insulation Material

The insulation material is one more factor that helps in producing more sustainable electric wires. Insulation materials separate the electrical conductors from the conductive materials. It is vital to protect the sparks and short circuits. The most common type of insulation is PVC. It is low cost and durable. But it presents a lot of environmental and health hazards because it emits toxic gas and acid in large quantities.

Many companies are now involved in producing eco-friendly insulation and jacketing material. Some of them are entirely recyclable. Phthalate-free plasticizers and bio-based plasticizers are known to omit 40% less greenhouse gas.

Every Act Counts!

The electronic industry can altogether avoid environmental hazards. Therefore, it must be appreciated that they are at least trying to contribute to sustainability. Every little effort matters! Every alteration that can do some damage control is precious. It’s high time for all the industrial sectors to work towards climate change seriously.

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Jeson Pitt works with the marketing department of D&F Liquidators and regularly writes to share his knowledge while enlightening people about electrical products and solving their electrical dilemmas. He’s got the industry insights that you can count on along with years of experience in the field. 

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BYD Brings Sustainable Transportation to Florida

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The City of Ocala, Florida represents the first in the state to add Build Your Dreams-branded innovative trucking solutions to its fleet.

The Ocala City Council confirmed the approval of five Class 8 battery-electric refuse trucks to replace the currently used internal combustion-powered trucks. The addition of the trucks will begin through the pre-approved 2021 three “quiet, clean-electric” refuse trucks with the addition of two more trucks to follow in 2022.

“The community of Ocala has taken a leadership role in Florida with the purchase of these BYD electric trucks,” said John Gerra, Sr. GerrDirector of Business Development with BYD Motors.

Officials confirmed these will bring an estimated fuel cost savings of nearly 78 percent. The refuse trucks offer impressive maintenance cost savings as well, with officials stating upwards of 75 percent expected in savings. The addition of the refuse trucks equals a total life cycle savings of approximately $270,000 and a return on the taxpayers’ investment in under 5 years for the City of Ocala. BYD confirmed union labor in the U.S. will be responsible for assembly.

“All BYD trucks are purpose-built and utilize our proprietary safe battery technology that exceeds the requirements for some of the most rigorous safety-testing programs around the world,” Gerra concluded.

Build Your Dreams (BYD) is an LA-based innovative manufacturing company that boasts the title of the largest manufacturer of electric vehicles globally in addition to pioneering battery-electric transportation solutions across the globe. Known for being the “Official sponsor for Mother Nature,” the company is also heavily involved in sustainable development, workforce diversity, and community service.

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3pls, Air Cargo, Archives, Global Logistics, Global Trade Daily, Ocean Carriers, Trucking, Warehousing

Are Your Favorite Companies Eco-Friendly? Even They May Not Know.

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Corporations around the world love to promote their environmental bona fides, touting their at-times Herculean efforts to minimize their carbon footprint.

But desiring to be environmentally friendly and truly accomplishing that goal are two different things, as illustrated recently by Amazon’s acknowledgment that its carbon footprint grew 15% last year despite efforts to curb its impact on climate change.

As it turns out, the details about many companies’ eco-friendly accomplishments are often enveloped in mystery, in some cases even for the businesses themselves.

“The Amazon situation is just an example of the bigger problem surrounding corporate claims of environmental responsibility,” says Rajat Panwar, Ph.D. (www.rajatpanwar.com), an associate professor of Sustainable Business Management at Appalachian State University.

“Most global corporations now make such claims, but the reality is that half of the carbon emissions since the industrial revolution have happened within the last 30 to 35 years. It seems that corporate environmental disclosures hide more than they reveal.”

Why is it so difficult for many companies to achieve their goals of reducing their carbon emissions or otherwise limit the damage they do to the environment? Panwar says one problem is corporations often outsource much of their work, which not only reduces their control over the environmental impact they have, but also their very knowledge of that impact.

Panwar says one study analyzed reports that 1,300 firms submitted to the Securities and Exchange Commission. That study revealed 80 percent of those firms could not even determine the country of origin of their products, much less any information about their carbon footprint.

“My research has found that firms that are more socially and environmentally responsible tend to perform their functions themselves rather than outsource those functions to third-party vendors,” he says.

For companies that truly desire to have a positive impact, Panwar says three issues are critical:

How companies measure emissions makes a difference. Companies’ carbon commitments and pledges should be about absolute emissions, not emissions per unit of revenue or sales, Panwar says. But too often companies link their emission-reduction goals to how much money they are bringing in, at least partially negating what should be the ultimate goals.

Eco-friendliness can’t stop at the corporate door. Carbon commitments should encompass all operations across supply-chains. In the case of companies such as Amazon, the majority of emissions actually happen offsite and can be reduced only through concrete steps taken at the supply chain level. “This is a serious issue because many companies don’t even know who their downstream suppliers are.” Panwar says. “Companies like Amazon can gather applause for their pledges, but the actual impacts are hidden in the supply chains.” Consumers who want a true reckoning of how well a company is reducing emissions need to ask companies to provide those numbers,

Supply networks should not be far-flung. In late June, Amazon announced creation of a $2 billion Climate Pledge Fund to invest in companies that make products and technology that help protect the Earth. But the details of how such a plan will play out are important, Panwar says. A good approach, he says, is to promote local supply networks so that emissions are minimal, visible and monitorable.

“I am glad that we are beginning to see through the discrepancy between corporate pledges and corporate environmental impact,” Panwar says. “When it comes to emissions and especially the effects of a global supply chain, I believe we are entering a new era in which transparency has to be made more transparent.”

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Rajat Panwar, Ph.D. (www.rajatpanwar.com), is an associate professor of Sustainable Business Management at Appalachian State University. He previously was an assistant professor at the University of British Columbia. He also has been an Affiliate Faculty member in the College of Forestry at Oregon State University, and with the Governance, Environment, and Markets program at the School of Forestry and Environmental Studies at Yale University. Panwar holds two doctorate degrees, one in Corporate Sustainability from Grenoble École de Management in France, and one in Forestry from Oregon State University.

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Archives, Features, Global Trade Daily, Stories

LEADERS BY EXAMPLE: 10 INDUSTRY EXECUTIVES USHERING IN THE GREEN REVOLUTION

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A Nielsen survey found that 81 percent of global consumers feel companies should help improve the environment. “Business strategies must include sustainability in their core beliefs and practices,” says Hitendra Chaturvedi, a professor at the Supply Chain Department of W.P. Carey School of Business at Arizona State University and an expert on global supply chain sustainability and strategy.

Fortunately, there are forward-looking leaders like the executives who follow that prove you can go green and succeed in business.

Simon Paris – CEO, Finastra; Chairman, World Trade Board

As the chief executive of one of the world’s largest fintech companies, while also chairing the World Trade Board, Simon Paris is in a unique position to talk about protecting the global trade system. Heading into the 2020 World Trade Symposium in his company’s hometown of London, Paris wrote about countering today’s protectionist narrative with “our reinforcement of the pro-trade narrative,” and he also called for ideas to reduce the small and medium-sized enterprises’ (SME) funding gap, currently estimated at $1.5 trillion. But he ended with a plea to “examine how open technology can act as the enabler for inclusive, sustainable trade.

As global supply chains become increasingly complex, our goal should not be measured on a binary figure of turnover or profit, but on the ethical and sustainable impact of our technological innovation; our technological social responsibility. How can we use technology, collectively, to ascertain the provenance of materials, improve the health and wellbeing of workers in remote locations, reduce the cause and effects on environment pollution of long-distance transportation or minimize the impact of waste and disposal? How can we use open finance technologies–and by this, I include open systems, open software, open APIs, open standards and open partner networks–to transform supply chains and encourage the formulation of more relevant and inclusive trade models, in support of ethical trade?”

Detlef Trefzger – CEO, Kuehne + Nagel International AG

This year, all less-than-container-load (LCL) shipments by Kuehne + Nagel began being CO2 neutral, which is part of the Swiss global logistics and transportation company’s goal of being totally CO2 neutral by 2030. “As one of the leading logistics companies worldwide, we acknowledge the responsibility we have for the environment, for our ecosystem and essentially for the people,” explains K+N CEO Detlef Trefzger, who along with his company supports the aim of the Paris agreement on climate. To that end, the company has also begun carbon-swapping nature projects in Myanmar, New Zealand and elsewhere.

Ongoing training programs maintain and expand the environmental awareness of employees, who have increasingly relied on video conferencing over business trips. In December, K+N announced its accession to the Development and Climate Alliance, which was launched in 2018 to simultaneously promote the development and environmental protection. “As a globally operating company, we are convinced that the private sector must also make its contribution to environmental protection,” says Otto Schacht, a member of K+N’s management board responsible for Seafreight.

Uwe Brinks – CEO, DHL Freight

DHL is a leader in piloting alternative drivetrains and fuels for its vehicles, which fits into the San Francisco-born, Germany-based global logistics giant’s target to reduce all its transportation emissions to zero by 2050. “Our sustainability goal is not just a vision, but a clear statement,” says Uwe Brinks, CEO of DHL Freight. “In the future, we will give preference to transportation solutions that contribute to achieving our environmental goals.”

To that end, DHL launched “Terminal for the Future,” which tests and implements solutions and technologies such as automated volume measurement, intelligent yard management, and partially autonomous transfer vehicles. “All these developments are based on a clear approach: We want to make life easier and more efficient for our customers and employees,” Brinks says. “Technology should support our employees in their everyday work, not replace them.” Globally, DHL has changed vehicles in certain delivery fleets to use alternative fuels, including electricity and compressed natural gas, to meet the goals of its GoGreen project to reduce emissions of greenhouse gases and local air pollutants by 2025.

David Abney – CEO, UPS

 As leader of one of the largest logistics companies in the world, UPS CEO David Abney sums up sustainability success best when he says: “The greenest mile we ever drive is the one we don’t drive.” Better route-planning software and developments have been key to the UPS green transport system—as well as its bottom line: The company claims to have saved $400 million since overhauling the routing system.

But UPS has not stopped there, having switched out dozens of diesel trucks, which get about 10 miles per gallon, for electric vehicles that can squeeze out the equivalent of 52 MPG. Abney and UPS recognize they are an important part of the global supply chain and that their customers expect solutions that help reduce emissions. To that end, UPS has dedicated itself to building the smart logistics network of the future.

Ben McLean- CEO, Ruan

When Des Moines, Iowa-based Ruan was announced in October as a 2019 SmartWay Excellence Award recipient from the U.S. Environmental Protection Agency, CEO Ben McLean would have been forgiven if he’d reacted by saying, “Meh.” After all, this is the fourth time the green 3PL provider has received the EPA’s highest recognition for demonstrated leadership in freight, supply chain, energy and environmental performance. Of course, McLean—like everyone else at Ruan—was honored to again receive the honor. “This distinction from the EPA validates all the efforts and investments we have made to ensure we are operating as sustainably and environmentally friendly as possible,” said James Cade, vice president, Fleet Services. “To us, sustainability is more than a business practice—it’s our moral commitment. We live in the communities we serve, and it is our responsibility to provide leadership toward a cleaner future.”

Recognition is understandable given that Ruan is one of only three for-hire transportation companies selected for the National Clean Fleets Partnership membership and participation in its annual Clean Cities study. The company’s fleet has green specifications including auxiliary power units that reduce engine idle time, efficient progressive shifting, auto-inflation trailer tire systems, and onboard recorders that monitor MPG, over-RPM, idle time, hard breaking and over-speed driving. Ruan also utilizes alternative fuel types including biodiesel, compressed natural gas, renewable natural gas and renewable hydrocarbon diesel. McLean, part of the third generation of the Ruan family, was out in front of his office to check out a prototype electric truck from Tesla, which has five orders from the company.

Simon Cox – Head of Sustainability, Prologis

At the World Economic Forum in Davos, Switzerland, in January, San Francisco-based global logistics real estate firm Prologis was revealed to be No. 6 in the U.S. and No. 26 overall on the 2020 Global 100 Most Sustainable Corporations in the World List. Those that make the list represent the top 1 percent in the world on sustainability performance, according to the Global 100 administrator, Toronto-based Corporate Knights. Prologis leases modern logistics facilities to about 5,100 customers principally across two major categories: business-to-business and retail/online fulfillment. It was among 7,395 companies worldwide that Corporate Knights analyzed.

“Sustainability has moved beyond simply a commercial advantage; it is now essential—business-critical,” Simon Cox, Prologis’ head of Sustainability, recently told Eye for Transport (EFT) by Reuters Events. “… We build warehouses that are ready for the next generation, who want to work for companies that do the right thing. Globally, we are seeing a move towards purpose-based products. It’s no longer enough to simply make something that cleans the kitchen, for example, it’s got to have a broader purpose. It’s got to be environmentally responsible. It’s the same for us as a business that develops and owns sustainable buildings.”

JJ Ruest – President and CEO, CN (Canadian National Railway)

Landing a spot for the first time on the 2020 Global 100 Most Sustainable Corporations in the World List is CN, at No. 54. That recognition comes exactly 12 months after the Canadian National Railway marked its 10th straight year as a global leader on corporate climate action on the CDP Climate Change A list. Produced at the request of 650 investors with assets of over $87 trillion and/or 115 major purchasing organizations with $3.3 trillion in purchasing power, the A list is culled from thousands of companies that submit annual climate disclosures for independent assessments from CDP, an international nonprofit that seeks public and private sector reductions in greenhouse gas emissions as well as the safeguarding of forests and water resources.

CN transports more than $250 billion (Canadian) worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network of approximately 20,000 route-miles spanning Canada and U.S. cities such as New Orleans, and Mobile, Alabama as well as the Chicago, Memphis, Detroit, Duluth, Minnesota/Superior, Wisconsin and Jackson, Mississippi metropolitan areas. “Our commitment is to help our customers deliver responsibly by providing a safe, efficient and environmentally friendly way to move goods,” says CN President and CEO JJ Ruest. “To that effect, we have improved our fuel efficiency by 39 percent over the past 25 years.”

Kai Nowosel – Chief Procurement Officer, Accenture

Also landing on the 2020 Global 100 Most Sustainable Corporations in the World List (at No. 20, up from No. 93 the year before), as well as making the CDP Climate Change A list is Accenture PLC, an Irish multinational that provides strategy, consulting, digital, technology and operations services. From offices around the world—including 10 U.S. cities from Boston in the east to Irvine, California, in the west, and Seattle in the north to Houston in the south—Accenture uses “purchasing power to drive positive change on a global scale, creating more sustainable supply chains,” according to Chief Procurement Officer Kai Nowosel. “It also allows us to advance our key priorities, including environmental action, respect for human rights, inclusion, diversity and social innovation.”

Accenture has committed to using 100 percent renewable energy across its global portfolio by 2023. “We will be encouraging similar ambition from our value chain, and ideally reporting progress through established platforms such as CDP supply chain,” Nowosel says. “… We will actively seek partnerships and suppliers that are even more closely aligned to our corporate values so that, together, we will improve the way the world works and lives.”

Alexander Saverys – CEO, CMB (Compagnie Maritime Belge)

CMB’s bold CO2 pledge is “Net Zero as from 2020–ZERO in 2050.” The strategy involves having all carbon emissions from CMB operations completely offset (or net-zero) from this year, while the investment in new technologies will create a completely zero-carbon fleet by 2050. CMB started by supporting certified climate projects in developing countries and acquiring high-quality Voluntary Carbon Units (VCUs) in Zambia, Guatemala, and India. Back at CMB’s home base, the Port of Antwerp in Belgium, the company’s “Hydroville,” the world’s first sea-faring vessel to burn hydrogen in a diesel engine, shuttles up to 16 passengers while producing zero pollution. That won the company the second-ever Sustainability Award from Antwerp Port Authority, Alfaport-Voka and the Scheldt Left Bank Corp. in November 2018.

CMB is now hard at work on “HydroTug,” a tugboat that will hit the water later this year or next using the same hybrid hydrogen/diesel technology as Hydroville. Hybrid barges would soon follow, and the company hopes to launch the world’s first hydrogen-powered container ships in the next decade. “Green hydrogen-based fuels are the only zero-emission solution in the long run,” according to CMB CEO Alexander Saverys. “… We are convinced of the potential of hydrogen as the key to sustainable shipping and making the energy transition of a reality.”

Thibaut de Lataillade – Global Vice President and General Manager, GetApp

Founded in 2010, the Barcelona, Spain-based Gartner company GetApp is an online resource for software buyers to compare products side-by-side with free interactive tools, detailed product data and user reviews. GetApp also serves as an online lead generation channel for SaaS. And the company also provides customers with sustainability advice. “Our main focus is on helping businesses become more efficient through technology and software,” says Thibaut de Lataillade, GetApp’s global vice president and general manager. “As consumers become more conscious of sustainability, businesses must adapt their supply chain processes. This means mapping their supply chain, setting goals and measuring supplier performance when it comes to sustainability. Using the right software to analyze and leverage data captured through this process will help business leaders make the right decisions and ensure sustainability in the future.”

GetApp doesn’t stop there. “We’ve also tried to highlight the many other benefits that come from becoming a socially responsible business. For instance, corporate social responsibility (CSR) can also lead to improved brand awareness and improved customer trust, loyalty and engagement,” de Lataillade says. “As a digital business, we have a duty to spread the message when it comes to creating a social impact strategy, and doing so for the right reasons.”

Wando Welch Terminal
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SCPA’s Wando Welch Terminal Confirmed for Sustainable Crane Upgrades

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RTG cranes at South Carolina Ports Authority’s Wando Welch Terminal will soon operate on sustainable and eco-friendly engines thanks to a $2 million grant from the U.S. Environmental Protection Agency.

“Through a great partnership with DHEC, we have secured EPA funding to upgrade our 12 least efficient RTG cranes with high performing, environmentally friendly battery/genset hybrids,” said Stephen Brisben, Mechanical Technical Specialist for SCPA’s Heavy Lift Maintenance Department. “This aligns with our efforts to upgrade equipment to both improve air quality standards in the Lowcountry and enhance terminal operations.”

The grant was issued as part of the  Diesel Emissions Reduction Act (DERA) program supporting the upgrading of various fleets from school buses, transit airport buses, long and short-haul trucks, marine engines, locomotive replacements, and more for cleaner environments and an overall reduction in harmful emissions.

“For the past 10 years, the DERA program has played an important role in helping to reduce harmful emissions from diesel engines while simultaneously creating opportunities for economic growth and development in South Carolina,” DHEC’s Bureau of Air Quality Chief Rhonda Thompson said. “We are excited about this new opportunity to work alongside the South Carolina Ports Authority — an entity whose work is crucially important in supporting both our state and regional economies.”

SCPA’s Chief Operating Officer Barbara Melvin confirmed the 12 rubber-tired gantry cranes (RTG) upgrades are part of the overall vision to implement sustainable and efficient equipment solutions. Additionally, the upgrades were reported to support reducing fuel consumption while cutting up to 96 percent of particulate matter, air toxins, and nitrogen oxides.