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

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 • 2 nd Generation program enhancements 2

Transportation Sector: Environmental Impacts 2010 U.S. GHG Inventory Totals Transportation accounts for:  Over 1/4 of total U.S. GHG T ransportation emissions; (1839 MMT) 27%  About 2/3 of U.S. petroleum- based fuel use. O ther Sources (47789 MMT) 70% Non- Transportation Mobile (204 MMT) 3% MMT = Million Metric Ton 2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA 2012) 3

Freight Sector: Environmental Impacts Transportation Greenhouse Gases 2% 2% 4% Light-Duty Trucks 8% In Transport Sector: 19% Passenger Cars • Freight accounts for Medium & Heavy-Duty over 25% of all fuel Trucks consumed and GHGs Aviation 22% emitted. Marine 43% • Freight is the fastest Rail growing source of Other GHGs. 2010 Data - Inventory of U.S. Greenhouse Gas Emissions and Sinks (EPA 2012) 4

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 5

Conventional Pollutants from U.S. Transportation Projections for 2017 NO X Emissions VOC Emissions PM 2.5 Emissions NO X Mobile Source VOC Mobile Source PM 2.5 Mobile Source Emissions Emissions Emissions 6 6

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 7

Energy Challenges Weekly on-highway diesel prices Source: U.S. Energy Information Administration 8

Shared Goals of Carbon Reduction Operational Risk Management Efficiency Carbon Reduction Economic Energy Security Development 9

How to Address Supply Chain Carbon Measure Supply Chain Footprint Improve Benchmark Efficiency Performance Report Innovate Operations Results 10

2 nd 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 11

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 operational practices in the freight supply chain Measured by saving: • gallons of fuel, barrels of oil, $ • CO 2 , NOx and PM emissions 12

SmartWay Carrier Benchmarking 15 Carrier Categories Quintile Rankings - (TL, LTL, Refrigerated, Tanker, etc.) (ex: Truckload CO 2 g/mile) 8 Emission Metrics Top 20% • 1550 g/mile TL Dry Vans SmartWay Carrier Rating Second Pollutant Specific Performance Levels • 1650 g/mile 20% TL Dry Vans 5 Middle 4 • 1750 g/mile 20% TL Dry Vans 3 Fourth 2 • 1850 g/mile 20% TL 1 Dry Vans g/mile 0 Bottom CO2 • 1950 g/mile 20% TL NOx g/ton- PM10 Dry Vans mile PM2.5 13

SmartWay for Carbon Reporting Step 1- Complete Step 2 - Generate the Shipper Tool SmartWay Data Reports Step 3 - Use results in: • Benchmarking and Operations • Environmental Reporting • Carbon Disclosure Submittals • Shareholder Response 14

SmartWay for Carbon Optimization Step 1- Complete Shipper Step 2 - Generate Strategies analysis SmartWay Data Reports Step 3 - Use results in: • Performance tracking • Progress reporting • Case Studies 15

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 16

2 nd 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 17

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 18

For more information: www.epa.gov/smartway smartway_transport@epa.gov SmartWay Helpline 734-214-4767 19