Report on Green Logistics Presentation at the Working Party on Intermodal Transport and Logistics Fifty-ninth session Geneva, 31 October-1 November 2016 Jean-Marc M. Kilolo Transport Networks & Logistics Section Sustainable Transport Division

Why Green logistics ? Recent years have witnessed an increasing concern for the environment by the public and governments at a global level. As a result, national and international regulations have been passed to mitigate the ecological impacts of economic activities, including Logistics. Thus, companies have come under growing pressure to minimize their carbon footprints.

2. What is Green logistics ? It encompasses all measures taken to assess and reduce the environmental footprint of logistic activities. These measures fall into various categories.

2.1. Distribution strategies and transportation Use of alternative fuels (e.g. Biodiesel, Liquefied Natural Gas, Electricity) Shipment consolidation and full vehicle loading Telematic systems to minimize travel distances Intermodal transport

2.2. Warehousing and green building Eco-friendly building design (e.g. eco-efficient lighting systems, thermal insulation) Energy-efficient material handling equipment Water systems (e.g. minimize water waste, use of “grey water” systems) Use of alternative energy sources (e.g. solar panels, wind) Grey water: reuse of water for flushing toilets, laundery, etc

2.3. Other policies Reverse logistics (Waste reduction, transport and disposal, Materials recycle, Materials reuse ) Packaging management (e.g. recycle or reuse) Internal management (e.g. Environmental performance measurement and monitoring) Collaboration with customers and other bodies Grey water: reuse of water for flushing toilets, laundery, etc

3. Green logistics in practice Distribution strategies and transportation Warehousing and green building Reverse logistics Packaging management Internal management Collaboration with customers and others DHL Electric/ hybrid vehicles, al. fuels * Carbon report * Online Carbon Dashboard “Go green program” with customers DB Schenker Logistics Intermodal (Δ+train capacity), route planning, efficient vehicles, eco-driving, e-freight, consignments consolidation Hydroelectricity, wind energy, solar power Discarded office equipment (computers, fax) EcoTransitIT (calculator) Procurement based on eco-efficiency GEODIS Ecofriendly vehicles, multimodal transport Energy-saving buildings * Geodis Mag * Teaching green practices UPS Use of alternative fuels (CNG, LNG, electric) Packsize On Demand Packaging ORION (GPS) Assist customers DB uses smart lightning systems, natural light systems

4. Green logistics, useful? DHL Renewable energy allows a reduction of 450,000 tonnes of GHG gas emissions and allows a 2.4 % reduction in total energy consumption in its buildings and facilities. DB Schenker Logistics The introduction of 835 m long trains cuts carbon emissions from rail freight transportation by 350 tonnes of CO₂ per annum. GEODIS Transportation by train results in 7,031 fewer tonnes of CO2 than were released by trucks on parallel routes. UPS The replacement of 32 kg pilot flight bags with iPads reduces fuel consumption by 473,000 litres, reduces CO2 emissions by 1,200 tonnes, and cuts paper usage by 5.7 million pages per annum. Problem: no standard measure

5. Conclusion The green initiatives mentioned above, through the use of environment calculators, allow companies to quantify the ecological impact of their interventions on environment sustainability. Given the amount of environmental initiatives deployed by firms, green logistics seems to be more than just a fashion. However, customers may not be willing to spend more for more sustainable logistics services. This constitutes a barrier to long-term environmental initiatives. Green logistics also imposes a financial burden on firms, particularly for small enterprises. Governmental support in the form of subsidies or tax breaks has proven to be helpful in this regard. Carrying out green logistics initiatives becomes harder with heterogeneous environmental regulations between and within countries.

Thank you for your attention Jean-Marc M Thank you for your attention Jean-Marc M. Kilolo Transport Networks & Logistics jean-marc.kilolo@unece.org 10