Enhanced Performance Benchmarking and Supply Chain Carbon Accounting - - PowerPoint PPT Presentation

Enhanced Performance Benchmarking and Supply Chain Carbon Accounting

Environmental Performance Metrics Workshop Sponsored by AAPA and EDF Virginia Port Authority, Norfolk Virginia October 10, 2012

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Today’s Discussion

• Transportation and Freight Sectors
• Environmental & Economic Impact
• Marketplace changes and challenges
• Corporate Citizenship and Carbon
• Environmental & Economic Drivers
• Business case for freight sustainability
• What is SmartWay?
• Carbon accounting system
• 2nd Generation program enhancements

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Transportation Sector: Environmental Impacts

Transportation

(1839 MMT) 27% Non- Transportation Mobile (204 MMT) 3%

Other Sources

(47789 MMT) 70%

2010 U.S. GHG Inventory Totals Transportation accounts for:

• Over 1/4 of total U.S. GHG

emissions;

• About 2/3 of U.S. petroleum-

based fuel use.

MMT = Million Metric Ton 2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA 2012)

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Freight Sector: Environmental Impacts

In Transport Sector:

• Freight accounts for
• ver 25% of all fuel

consumed and GHGs emitted.

• Freight is the fastest

growing source of GHGs.

2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA 2012)

19% 43% 22% 8% 2% 2% 4%

Transportation Greenhouse Gases

Light-Duty Trucks Passenger Cars Medium & Heavy-Duty Trucks Aviation Marine Rail Other

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Freight Sector: Economic Impacts

• Freight transportation is cornerstone of U.S. economy
• Trucking & rail deliver goods and materials that drive economic

growth and development

• Freight shipments value $11 trillion annually
• Domestic commodity shipments, domestic transport of exports,

imports

• Logistics economic activity creates $1.3 trillion in U.S.
• Represents 8.5% of GDP
• Trucking alone generates $629 billion in revenues
• Employs almost 9 million people

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Conventional Pollutants from U.S. Transportation

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NOX Emissions VOC Emissions PM2.5 Emissions NOX Mobile Source Emissions PM2.5 Mobile Source Emissions VOC Mobile Source Emissions

Projections for 2017

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Changing Needs of Industry

• Customer and Consumer awareness
• Demanding corporate citizenship and accountability
• Investor, Lender and Insurer requirements
• Assessing climate risk and business opportunities
• Rising and volatile energy prices
• Fuel and driver wages continue to be largest cost centers

for truck carriers: 62% of operating costs in 2011

• Globalization of supply chains
• Increasing global opportunities and global competition
• Other countries’ carbon reporting requirements

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Energy Challenges

Weekly on-highway diesel prices

Source: U.S. Energy Information Administration

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Shared Goals of Carbon Reduction

Operational Efficiency Risk Management Energy Security Economic Development Carbon Reduction

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How to Address Supply Chain Carbon

Measure Supply Chain Footprint Benchmark Performance Report Results Innovate Operations Improve Efficiency

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2nd Generation SmartWay

• Standardized tools and information needed to help

freight sector measure, benchmark and report supply chain environmental performance

• Performance based assessment
• Information to help industry innovate carrier, modal,

and technology choices that improve performance, save fuel and reduce costs

• Data on carrier, modal and operational efficiencies
• Technology verification program
• Market incentives and recognition for top performers
• Visibility, awards and logo qualification

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SmartWay = Continuous Improvement

• Public-private partnership with freight sector
• Market based, voluntary and free
• Industry standard carbon accounting system
• Standardized tools and metrics for collecting & reporting data
• Developed with extensive stakeholder input and peer reviewed

Goal: Move more freight, more miles with less emissions, and less energy How: Accelerate adoption of advanced technologies and

• perational practices in the freight supply chain

Measured by saving:

• gallons of fuel, barrels of oil, $
• CO2, NOx and PM emissions

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SmartWay Carrier Benchmarking

1 2 3 4 5 CO2 NOx PM10 PM2.5

SmartWay Carrier Rating

Pollutant Specific Performance Levels

g/mile g/ton- mile

15 Carrier Categories

• (TL, LTL, Refrigerated, Tanker, etc.)

8 Emission Metrics Quintile Rankings

(ex: Truckload CO2 g/mile)

• 1550 g/mile

Top 20% TL Dry Vans

• 1650 g/mile

Second 20% TL Dry Vans

• 1750 g/mile

Middle 20% TL Dry Vans

• 1850 g/mile

Fourth 20% TL Dry Vans

• 1950 g/mile

Bottom 20% TL Dry Vans

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SmartWay for Carbon Reporting

Step 1- Complete the Shipper Tool Step 2 - Generate SmartWay Data Reports Step 3 - Use results in:

• Benchmarking and Operations
• Environmental Reporting
• Carbon Disclosure Submittals
• Shareholder Response

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SmartWay for Carbon Optimization

Step 1- Complete Shipper Strategies analysis Step 2 - Generate SmartWay Data Reports Step 3 - Use results in:

• Performance tracking
• Progress reporting
• Case Studies

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SmartWay Value Proposition

• Established program and industry standard
• Adopted by industry leaders
• Advancing the freight sector
• Address marketplace needs and challenges
• Voluntary and market-based incentives
• Simple, no-cost participation process
• Credible, neutral data oversight
• EPA collects and processes data for industry
• Brand equity and public awareness
• Mark of cleaner, more efficient transportation

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2nd Generation Program Enhancements

• SmartWay program expansion in Canada
• Natural Resources Canada accepting new Partners
• Fuel Efficient Driver Training
• Online Driver training e-learning portal
• SmartWay Excellence Awards
• Based on performance indicators in new tools
• SmartWay Logo
• Enhanced logo qualification requirements
• Data Quality Program
• QA/QC guidelines in development
• Partner education
• Website enhancements, webinars, new bulletins

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SmartWay Snapshot

• Since 2004, SmartWay has grown to about 3,000

partners with broad freight industry support

• Top 100 U.S. truck carriers
• All Class 1 rail lines
• Fortune 500 shippers from every major business sector
• Major logistics firms
• Since 2004, SmartWay Partners saved:
• 23.6 million metric tons of CO2
• 478,000 tons NOx
• 55 million barrels of oil
• 22,000 tons PM
• $6.5 billion dollars in fuel costs
• Equivalent to taking over 3 million cars off the road for 1 year

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For more information:

www.epa.gov/smartway smartway_transport@epa.gov SmartWay Helpline 734-214-4767