Environment Global Presentation 2012 Environment A Transport - - PowerPoint PPT Presentation

Global Presentation 2012

Environment

2 | Environment, 07.03.2012

Environment – A Transport Challenge

Economic growth and transport are closely related. Globalisation has been driven forward by increased trade, and business competitiveness highly depends on reliable and efficient transport. Transport is therefore necessary for the industrialised society and today's living standards. However, the increase in transport affects the environment and represents an important challenge to the transport industry. As one of the largest suppliers of transport and logistics services, DSV feels obliged to take on its part

• f the responsibility to reduce the environmental impact of the transport industry.

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DSV's Environmental Work

• DSV ensures a minimum environmental impact measured per unit carried
• DSV has worked with environmental management for several years
• DSV has an environmental policy
• DSV has calculated a carbon footprint for all transport activities
• DSV can provide specified environmental reports and data
• A number of DSV subsidiaries are certified according to the environmental management standard

ISO 14001

• DSV has developed various flexible trailer types to reduce empty running and the environmental

impact

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Objectives for DSV’s environmental work

• DSV have set requirements for subcontractors to reduce their emission of
• CO2. This is so that DSV can improve its energy efficiency per transport

activity by 15% before 2015 compared to 2010 Group figures.

• Road Division’s use of vehicles (own and subcontractors) with Euro 5

engine or better must include at least 50% in 2012.

• 75% of DSV's buildings shall have automatic energy control systems or be

screened for potential energy savings in 2015.

• 75% of all DSV locations must recycle paper in offices and paper, plastic

and cardboard in terminals and warehouses by the end of 2012. The Supervisory Board of DSV have approved a total of 12 objectives for the Groups CSR work and a series of activities to ensure that we work towards a fulfilment of these. Following objectives for the area of environment is adopted:

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Activities for DSV’s environmental work

• Introduce environmental demands to subcontractors via DSV’s Supplier

Code of Conduct.

• All companies in Road division and companies in other divisions that
• perates own vehicles or hire subcontractors for road transports, must work
• n achieving the objective that at least 50% of subcontractors and/or own

vehicles must meet the engine standard of Euro norm 5 by the end of 2012.

• Companies that have not yet started up projects on collecting paper, plastic

and/or cardboard in offices, terminals and warehouses for recycling will begin this during 2012. For every objective there is also an activity that have been initiated by all DSV companies in order to begin the process of reaching the various objectives for DSV’s CSR work. Following activities must be implemented to meet the earlier mentioned objectives:

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Carbon Footprint

DSV has analysed all transport activities since 2008 to determine the carbon footprint from the transport and other energy consuming activities of the Group. The total environmental impact

• f DSV's activities in 2011 is estimated at 3.34 million tonnes of CO2.

The total transport performance of DSV increased more than 50% in 2011 compared with 2008 due to acquisitions and increased activities. But the total environmental impact only grew by approx. 33% due to an increasing proportion of transport services being performed by container ships, which are less polluting compared with other transport modes. The improved fuel consumption of the Road Division and subcontractor vehicles is also a contributing factor.

Total emission of CO2 - per activity

200 400 600 800 1.000 1.200 1.400 1.600 1.800 Road transport Sea transport Air transport Buildings

Tonne (1.000)

2008 2009 2010 2011

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Energy Efficiency

Energy efficiency varies considerably among the different means of transport used by DSV's subcontractors for transporting customers' goods. As illustrated, a container ship is one of the most energy-efficient means of cargo transport. From 2008 to 2011, the energy efficiency of DSV improved by nearly 13%, mainly due to the increasing proportion of all transport services being performed by container ships and the improved fuel consumption of the Road division's own and subcontractors' vehicles, as previously mentioned.

Energy efficiency - per transport activity

67,9 8,4 762,3 65,2 9,0 775,4 74,1 9,0 745,0 9,2 762,0 82,2 1 10 100 1000 Road transport Sea transport Air transport

CO2 (g/tonne-km) 2008 2009 2010 2011

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Euro Norm Regulations

Emissions from heavy-duty diesel engines have been subject to EU regulation since the beginning of the 1990s. The EU regulations on emission standards for trucks, the Euro norms, will gradually become stricter. As an example, all new trucks sold in the EU after October 2009 must meet the emission standards defined in the Euro V norm. A Euro VI norm is expected to become effective by the end of 2012.

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Overview – European Emission Standards for Trucks

NOx – Nitrogen oxide HC – Hydrocarbon CO – Carbon monoxide

Type of Euro norm

• Registration year determines the Euro norm

NOx (g/KWh) HC (g/KWh) CO (g/KWh) Particles (g/KWh) Euro 0 - Type app. 1/7 1988, new vehicles 1/10 1990 14.40 2.40 11.20 N/A Euro I - Type app. 1/7 1992, new vehicles 1/10 1993 8.00 1.10 4.50 0.36 Euro II - Type app. 1/10 1995, new vehicles 1/10 1996 7.00 1.10 4.00 0.15 Euro III - Type app. 1/10 2000, new vehicles 1/10 2001 5.00 0.66 2.10 0.10 Euro IV - Type app. 1/10 2005, new vehicles 1/10 2006 3.50 0.46 1.50 0.02 Euro V - Type app. 1/10 2008, new vehicles 1/10 2009 2.00 0.46 1.50 0.02 Euro VI - Type app. 31/12 2012, new vehicles 31/12 2013 0.40 0.13 1.50 0.01

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DSV Observance of Euro Norms

The chart shows the proportion of DSV’s own vehicles and subcontractor vehicles that comply with the different Euro norm standards. As illustrated, the proportion of vehicles that comply with the latest and most restrictive Euro norms has increased year by year. In 2010, an accumulated ratio of more than 60% of the vehicles complied with the Euro IV norm or Euro V norm.

Engine type by Euro Standard - Own and subcontractors vehicles

0% 20% 40% 60% 80% 100%

2009 2010 2011

Euro VI Euro V Euro IV Euro III Euro II or older

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DSV Fuel Consumption

CO2 emissions from vehicles are directly related to fuel consumption; equivalent to approx. 2.65 kilograms of CO2 per litre of diesel fuel. Factors influencing fuel consumption

• Engine technology
• Drivers driving technique
• Traffic congestion
• Terrain
• Weather

Average fuel consumption – own and subcontractors' vehicles

0,28 0,30 0,32 0,34

2007 2008 2009 2010 2011 Litres/km

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As a result of our ongoing efforts to reduce our environmental footprint, we have succeeded in reducing our CO2 emissions from road transports by more than 8% measured in g/km since 2007.

DSV Reduces CO2 Emissions

Development in CO2 emissions

780 830 880 2007 2008 2009 2010 2011

g/km

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DSV Reduces NOx Emissions

NOx is a toxic gas that may cause bronchial irritations and asthmatic reactions in humans in addition to

• ther harmful effects.

As a result of the renewal of our own and our subcontractors' fleets of vehicles, we have succeeded in reducing our emissions of NOx from road transports by nearly 33% measured in g/km since 2007.

Development in NOx emissions

7,52 6,69 6,03 5,37 5,05 4 5 6 7 8 2007 2008 2009 2010 2011

g/km

www.dsv.com

For further information, please contact Group CSR Manager Name: Thomas Susé E-mail: thsu@dsv.com Direct tel.: +45 43 20 33 74