How to reduce the carbon footprint of road freight on supply chains? Anicia Jaegler, professor BEM-Kedge business school Natacha Gondran, professor assistant UMR CNRS 5600 Environnement Ville Société Ecole Nationale Supérieure des Mines de Saint-Etienne Institut Henri Fayol

KEDGE BS – Blog Research and Expertise / février 2013 Summary State of the art about the environmental impacts of supply chains Approach Method Results Conclusion 2

KEDGE BS – Blog Research and Expertise / février 2013 Environmental impacts At European scale – Transport : 19,7% of greenhouse gas emissions (EEA, 2012) – Road transport : 2/3 of transportation emissions – Increase of kilometers covered by trucks and on road, since 1990 At supply chains’ scale – transport and storage generate about 50% of Co 2 emissions (Rizet, 2005 ; Cholette, 2009) of supply chains

KEDGE BS – Blog Research and Expertise / février 2013 Solutions proposed to reduce these environmental impacts Direct solutions : technological advances – Increasing truck loading rates (Rizet, 2012) – Designing lighter trucks (Jacques, 2004) – Setting up telematics applications Indirect solutions : – Logistical strategy and planning Structure of distribution (Tarançon, 2007) Public initiatives: prohibiting city center, rail, riverboat – Taxes and prices: little impacts (Greening, 1999)

Acting at the scale of a company How to reduce the carbon footprint of road freight on supply chains? – A study of a French transportation company – 1 headquarter and 15 agencies in France – About 1500 vehicles

KEDGE BS – Blog Research and Expertise / février 2013 Study approach

KEDGE BS – Blog Research and Expertise / février 2013 Choice of methodology Bilan carbone® To estimate carbon equivalent emissions To evaluate the fossil energy dependence Direct and indirect emissions for which the firm is responsible Emissions of water vapor, organic carbon and tropospheric ozone are excluded

Scopes Scopes taken into account: – Scope 1: All direct GHG emissions. – Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat or steam. – Scope 3: Other indirect emissions, such as the extraction and production of purchased materials and fuels, emissions generated by the construction of trucks and buildings, transport-related activities in vehicles not owned by the reporting entity, etc.

KEDGE BS – Blog Research and Expertise / février 2013 Emissions sources General flows Product flows

Data collection Fixed assets (buildings, parking, mechanical handling equipment, trucks, furniture, computer equipment) Raw materials (Office supplies, telephone, insurance, supplies maintenance, packaging, meals, inherent waste) Energy (heating, electricity, air conditioning) Transport (diesel, tires, maintenance) Travel (personal, professional, visitors)

Calculation Emission factors from a database published by the French Environmental Agency (ADEME) Specific emission factors – Tires – Clothes – Transport consumables

KEDGE BS – Blog Research and Expertise / février 2013 Results By type of trucks By emission sources Focus on fixed assets Focus on road freight

Trucks National tendancy

Classification of all the emission sources >80% Data are expressed in % of total emissions of the company for confidentiality reasons

Focus on fixed assets Data are expressed in % of the total fixed assts emissions for confidentiality reasons

Measuring before acting Direct solutions to reduce emissions that are due to the manufacturing of vehicles – Designing lighter vehicles – Finding other raw materials – Extending the lifetime of vehicles

Measuring before acting Focus on road freight (direct solutions) Euro 5 to Euro 6 – May decrease 8% of the consumption – For the company: may decrease 5% of the total emissions Tires – Company: retreading (double life), regrooving (extension of 25% of lifetime) – New choices: eco-tires that may decrease 10% of fuel consumption – At the company scale, it may decrease 6% of the total emissions

KEDGE BS – Blog Research and Expertise / février 2013 Conclusion Carbon emissions due to road freight in supply chains are mainly caused by diesel consumption and the company’s fixed assets. The results may provide a guide to the logistic partners in their choices for a greener supply chain transportation provider.

KEDGE BS – Blog Research and Expertise / février 2013 Future research Some direct solutions are presented in this study The indirect solutions require a more in-depth study (for example, simulation of policies) Some questions are arising: – What are the global environmental impacts of the use and implementation of light commercial vehicles in urban areas? – What impact eco-taxes could generate on the road freight?