next steps in environmental sustainability

Next steps in environmental sustainability – beyond SBT

Presentation at IPC Workshop on

Sustainability, Brussels, 2 June 2016

DRAFT

Next steps in environmental sustainability

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COP21: broad consensus to drastically cut GHG emissions

> For first time in history international consensus about need to

drastically cut emissions;

> Businesses are faced with a significantly shortened timeline to enable a

global low-carbon future than ever before;

> Next to a 2°C future, also a 1.5°C pathway is being discussed:

02/06/2016 Next steps in environmental sustainability2

The 1.5 °C pathway

requires steeper reductions, reaching net zero annual GHG emissions before 2050 and negative annual GHG emissions from then onwards

Source: Rogelj et al.: Energy system transformations for limiting end-of-century warming to below 1.5 °C, Nature Climate

Change, 2015

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COP21 will have major impacts, also for the postal sector

> International and member state action, in line with the submitted Intended

Nationally Determined Contributions, will impact the policy and

market conditions at different levels, for example:

– Internationally:

● Introduction of carbon-pricing in aviation globally;

● New schemes addressing sustainability of bio-fuels.

– Nationally:

● Energy efficiency and renewable energy schemes.

– City-level:

● Congestion taxes or cities banning diesel vehicles in their centers.

> For the postal sector, these developments will become an extra driver for

innovation and strategy development.


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Next steps in environmental sustainability

> In 2015 IPC and its members collectively set science-based target as one of

the first organisations in the world;

> Based on the outcomes of the science-based target exercise, IPC member

CEOs adopted collectively a carbon emission reduction intensity target

of 20% per parcel and per letter in 2025 compared to 2013 (which is

lower than the science-based target)

What’s next?


© f

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lia.c

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/ikalinin

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Next steps in environmental sustainability1) Set specific science-based targets at company level

> Setting individual science-based targets at company level provides

valuable insights into levers for action to drive down carbon emissions

sufficiently;

> It is recommended to calculate targets in line with company specific

business requirements and KPIs;

> Being a frontrunner has communication and marketing benefits.


© Science Based Targets. All Rights Reserved

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Next steps in environmental sustainability2) Focus GHG emission reduction also on your supply chain (1/3)

> Most postal companies are already very active to reduce carbon emissions

in own operations. Many inspiring examples exist.

> Still more can be done to drive down emissions in the full supply chain:

– Setting up supplier engagement programs in collaboration with their

key suppliers that stimulate innovation and lead to win-win situations

throughout the value chain;

● To introduce higher fractions of alternative fuels in long distance

road transport, cooperation between logistical service providers and

other supply chain partners will be required;

● Collaborating with goods and services suppliers (for example for

packaging and wrapping) can enhance the development of low carbon

and recyclable products, in line with the circular economy thinking.

– The client perspective offers opportunities too (delivery frequency, etc.)


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> Develop a supplier engagement program to reduce carbon emissions

together and set (science based) targets. Win-win is possible, depending

on the set-up and innovative solutions may be created.

TheHomeDepot

Intertek

ProRail

BASF

IKEA

SKF

Walmart

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> Significant energy efficiency improvements are

still possible in airplanes but to achieve deep

decarbonisation in commercial aviation,

biofuels are currently the only viable

option.

> Biokerosene can be produced sustainably.

It is safe, many airlines successfully tested it.

> However, biokerosene is currently more

expensive than fossil kerosene: how to create

a business case? Ideas:


– Develop a ‘green parcel scheme’ in which customers pay for their

parcels to be transported, using sustainable biofuel.

– An additional driver for the business case could be the global market

based measure, being developed by ICAO, that would run from 2020

onwards to reduce aviation carbon emissions, providing a price incentive

to use biokerosene.

© fotolia.com/MOS:ES

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Next steps in environmental sustainability3) Take adaptive action

> Regardless of global efforts to reduce GHG

emissions, the IPPC reports state with high

confidence that we are facing some inevitable

impacts of a changing climate through more

frequent extreme weather events as well as

longer terms climate change; this brings with it

disruption to logistics, supply chains, ability

to deliver just-in-time services and changes in

market conditions.

> All solutions therefore also need to take an

integrated response to climate change: be

both low carbon but also resilient to today's

weather and tomorrow's climate. Companies in

the postal sector need to understand how

resilient it is to today’s weather and how that

vulnerability changes over time given the

climate projections for the future.


© thinkstockphotos/Solymosis Tamás

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Next steps in environmental sustainability4) Join global low-carbon initiatives to increase your positive impact

> It pays off to join key initiatives that aim at driving down emissions together

with other frontrunners. It helps to share experiences with peers, engage

with influential NGOs and use the initiatives as platforms for internal and

external communication. Companies can magnify their positive impact

through these initiatives by influencing policy makers, sector peers and

supply chain partners.


EP 100

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Next steps in environmental sustainability5) Identify hot spots for action in your environmental impacts beyond climate

> Next to climate change, more and

more companies are working on

the reduction of other key

environmental impacts as well,

to stay within the environmental

boundaries of our planet.

Therewith the environmental

challenges as part of the UN

Sustainable Development Goals

are being addressed.

> Important environmental impacts

to focus on for most of the postal

companies would next to climate

change most likely be resource

depletion (triggered by the use of

packaging materials) and local air

pollutants (as a result of fossil

fuel combustion).


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Contact details

> Edgar van de Brug

> Ecofys Netherlands B.V.

> [email protected]

> +31(0)6 2501 4916


mailto:[email protected]

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