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Going green

4th November 2010
Page 46
Page 47
Page 46, 4th November 2010 — Going green
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Which of the following most accurately describes the problem?

Customers are increasingly demanding environmental declarations and KPIs from their suppliers. CM asks how you can turn yourself green

Words: Louise Cole It may once have been just a buzzword, but environmental sustainability is now a clear customer requirement across large swathes of the transport industry. Retailers, car-makers, builders and farmers supplying supermarkets are all having to conform to either government legislation on the energy impact of their products or to the specific requirements of their customer. It is now frequently a non-negotiable element of transport contracts, and fulfilment requires continuous monitoring.

Even if your company seems too small to be affected by Tesco's fresh green leaf, you need to consider these issues now. Management control and harmonisation of methods and operational practices between the bigger players and their subcontractors is increasing. In many cases, where 3PLs and even mid-sized regional firms have to show good environmental performance to their clients, your firm will not be able to subcontract on the account unless you can demonstrate this too.

There arc key things you can do to boost your environmental performance. but allow a sensible amount of time to carry these out. Be methodical. The staging commonly used for achieving standards can be useful: • Assess current situation; measure energy usage and other outputs • Policy and organisation — what are you trying to achieve and how?

• Planning — action plans • Implementation and operation • Compliance and corrective action • Management review • Continuous improvement Top tips • Credibility as a company that takes environmental sustainability seriously depends upon being able to measure, prove and document the amount of natural resources you consume and the damaging by-products you may produce in doing so. In the past, statements of intent and some stats on improvement cut a lot of ice. Now the focus is on continuous, planned reduction in environmental impact.

• Carbon footprint is the aspect of environmental preservation that most companies focus on. Its mantras are reduce, re-use, recycle, and emphasise minimising all processes and products that emit carbon dioxide in their creation or use. Once minimised, offsetting can compensate for the unavoidable emissions.

• Explain to your workforce that you want to change the culture of the company to one that respects the environment and why, both morally and commercially. This kind of change only works if it is embraced from the very top to the very bottom of the organisation.

• There are many different ways of auditing your carbon footprint, but your methodology must be sound, so external accreditation is best. Environmental standard ISO 14001 is a significant investment in time and money. It can cost about £5,000-£6,000 for a 200-strong company between application and assessment (perhaps half that for a 40-strong company). It costs half as much again for your annual compliance check. You will also need to make someone with sufficient access and control across the business responsible for identifying and managing areas of change. ISO 14001 will usually take at least six months to work through, although some do it faster. There is also often a three-month wait for certification, so apply ahead of time. You can self-certify, but this is unlikely to carry the same kudos with customers.

• 1S014001 is a broad assessment of proper management procedures.The Carbon Trust (Cr) takes a more specific and detailed look at your actual carbon output and holds companies to standards of continuous improvement of 2.5% a year for ongoing certification.There is a self-certification programme for SIviEs, based online, but this is only suitable for those with overall energy bills under £50,000, which rules out most transport firms. However, the CT will formally assess your firm for a fee — between £1,000 and £15,000 depending upon the size of the company. The initial conversation discovers whether you have accurate data on all carbon generation; good management practices; and can achieve as well as maintain improvements. The CT will ask for three years' worth d data typically to prove your progress. Re-certification is necessary every two years, at a similar assessment cost. If your company is growing and so absolute energy usage increases despite greater efficiencies, the CT will assess on the basis of CO2 output compared with each million of turnover.

• Continuous improvement is worth some thought. Increasing numbers of corporate customers are demanding higher percentages of a shrinking amount of pollutant cut every year and so the pressure on your firm will not let up. At the moment these gains are largely to be found from tactical measures; fuel (see below); routeing; loading; collaboration; and consolidation. Within three years though you may require more aggressive strategies; keep an eye on the supermarkets' trials with alternative fuels and drivelines because the pressure to maintain improvement may leave you with little choice but to invest in alternative technology The government's carbon reduction targets are an absolute cut of 34% by 2020 and 80% by 2050— and it will make industry responsible.

• Most customer declarations about environmental sustainability will require KPIs around fuel usage, and carbon produced per load or case, etc, depending upon the product. To demonstrate this you need accurate data. Dr Michael Coyle, fuel expert at Hull University, says that in all fuel reduction schemes, data is king — and yet most companies do not have reliable data to start with. Careful and consistent measurement is vital, tracked against the kind of vehicle, load and journey. Once you have accurate data, implementing Freight Best Practice guidelines will lower your fuel consumption, a clear commercial as well as environmental benefit.

• So far, so good, but remember, carbon isn't the only environmental pollutant nor is it the only one with which you can demonstrate your sensitivity to your customers, your community or your staff Noise; detergents and other chemicals washing into the waterways; safety; your involvement with your local community; and even enhancing your depot with natural screening, foilage and wildlife enhancements can help. •

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Organisations: Hull University

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