GoGreen Program & Services - Nieuwsblad Transport

Kathrin Brost, Vice President Green Strategy 

GoGreen Program & Services 

ECS Shipper Forum 

Brussels, 28 September 2011

Logistics impact on climate change 

Sources of man-made GHG emissions 

14% of the world`s 

CO 2 emissions stem 

from transportation 

Transport 

14% 

14% 

Agriculture 

Buildings 

8% 

14% 

Industry 

Other energy-related 5% 

Waste 

3% 

Power 

24% 

18% 

Land-use change 

Source: DGF/F Green Strategy Team 

100% = 42 Gt CO 2 

e, 2000 

WRI, World Resources Institute, Climate Analysis Indicators Tool 2000, CAIT 

DGF, Freight GoGreen | ECS Shipper Forum, Brussels | 28 September 2011 

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Climate Protection – A Special Responsibility 

Deutsche Post DHL’s carbon footprint 

• As a global logistics company, we move goods and 

information worldwide. 

• With transport at the core of our business, we produce 

CO 2 , the main cause of climate change. 

• We initiated the GoGreen environmental protection 

program to accept responsibility for the environment by 

reducing our impact. 

Source: Corporate Responsibility Report 2010, Deutsche Post DHL 

28.4 

23.4 

5.0 

2010 

in million 

tonnes of CO 2 

Subcontractor 

emissions 

(Scope 3) 

Own emissions 

(Scopes 1 & 2) 


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Reaching Goals through Efficiency 

Deutsche Post DHL was the first globally operating logistics company to 

set itself a concrete CO 2 

efficiency target 

100 % 

-10% 

-30% 

We aim to improve our CO 2 efficiency 

including subcontractors by 30 % by 

the year 2020, compared to our 2007 

baseline. 

Source: GoGreen, Deutsche Post DHL 

DGF, Freight GoGreen | ECS Shipper Forum, Brussels | 28 September 2011 DHL | Page 

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GoGreen – A joint effort 

Our GoGreen program closely involves our carriers and subcontractors 

Source: GoGreen, Deutsche Post DHL 

DGF, Freight GoGreen | ECS Shipper Forum, Brussels | 28 September 2011 DHL | Page 

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Principles of quantifying emissions 

For calculation of transport services, three tiers with an 

increasing level of accuracy are defined. 

Use of 

measured values 

Use of vehicle or 

route specific values 

Use of fleet 

specific values 

Use of default values 

Direct method 

Indirect method 

Use of fuel burn on 

individual transport 

use of vehicle 

class averages 

Use of fleet averages 

Use of generic 

values 

Level of accuracy 

Source: Draft CEN standard, DP DHL 


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Allocating Transport Emissions – What you need to ask 

Differences in allocation method may have great impact on 

shipment emissions 

ILLUSTRATIVE 

Customer 1 Customer 2 

High Weight 

High Volume 

50 % each? 

15 tons 2 tons 

What is a fair 

allocation key? 

• There are several guidelines and standards how to calculate the emissions of a vehicle… 

• …but there are yet no standards on how to allocated the vehicle emissions to a single shipment/customer 

• When receiving a CO 2 

report it is important to understand the calculation and allocation method 

Source: DGFF Green Strategy Team 


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DGF, Freight GOGREEN Portfolio 

DGF Green Services portfolio is geared to both, cover customer 

needs and provide us with up selling potentials 

Service 

Overview 

Benefits 

Carbon 

Report 

Basic 

Carbon 

Dashboard 

Advanced 

Green Scan 

Advanced 

Green 

Optimization 

Advanced 

• Static report highlighting the 

CO 2 

emissions per trade lane 

• Tool that maps CO 2 

generated 

throughout the full supply chain 

• Interpretation of “Carbon Hotspots” 

and high level assessment of 

CO 2 

reduction levers 

• Development of concrete carbon 

reduction solutions 

• Carbon calculation along 

transparent, public 

standards 

• Baseline to evaluate carbon 

reduction decisions 

• Full understanding of the 

carbon reduction levers 

• Concrete carbon reduction 

solutions to drive improved 

carbon efficiency 

Offsetting 

Basic 

• Offsetting of audited CO 2 

footprint 

• Certified offsetting with 

all-in-service 

Source: DGFF Green Strategy 


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Customer Carbon Footprint Report Format DGF 

Detailed Report 

illustrative 

Standard Report (Overview) 

illustrative 

Customer Carbon Footprint Report 



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The challenge to measure sustainable growth 1) 

The assessment of sustainable growth 1) requires more than 

absolute CO 2 

figures – the DHL approach ensures comparability 

FOR DISCUSSION 

NOT EXHAUSTIVE 

ILLUSTRATIVE 

Annual report 201x 

CO 2 Footprint Overview 

Emissions 

(in tonnes CO2) 

Revenue 

(in mn EUR) 

Jan – Dec. 201x 

100.000 

1.000 

Deviation prev. year 

+ 8% 

+ 10% 

Do figures reveal a 

sustainable growth? 

• CO 2 growth lower than 

revenue 

• Volume growth lower than 

CO 2- and revenue growth 

Volume 

(cbm) 

Weight 

(tons) 

20.000 

3.000 

+ 3% 

+ 2% 

Do effects come from... 

- Higher transport costs? 

- Higher product prices? 

- Longer transp. distances? 

- Changed mix of transport modes? 

Key take-aways 

• In order to assess sustainable business, CO 2 figures alone are not sufficient 

• CO 2 figures when only put into perspective with financial data might lead to wrong conclusion 

DHL CO 2 

Efficiency KPI puts CO 2 

into perspective with the transport performance (Revenued Ton Kilometre) which 

allows comparison over time, as well as by transport mode, country, product type 2) , etc. to draw solid conclusions for 

potential Supply Chain Optimization initiatives 

Source: DGFF Green Strategy, 1) in CO 2 terms 2) if transport data mapped to shipment level 


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DGF Carbon Dashboard – Web Access 



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Carbon Dashboard – Over viewing the supply chain end-to-end 

Capability to 

visualize 

customers’ 

supply chain 

end-to-end incl. 

3rd party 

transportation 



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Carbon Dashboard – Understanding the tradelanes 



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Carbon Dashboard – Getting the weak spots 



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Reducing CO 2 in the Supply Chain 

The customer has a variety of CO 2 

reduction levers at their 

disposal, each will have a distinct impact on the supply chain 

Optimization 

Strategic Supply 

& Demand Decisions 

Network Design 

Mode Choice 

Product/Lot/Container 

Management 

Facility Design 

product portfolio, service level requirements, 

sourcing location, channels to market, etc.) 

location, number, and size of facilities required to 

bring product from supply to customer (DC, hubs) 

way the goods are transported from the supply 

point to the customer (air, ocean, truck, rail, etc.) 

packaging, quantity and timing of product shipment 

optimize transport capacity utilization 

setup and layout of specific facilities in the network 

HIGH 

CO 2 impact 

Routing 

Carrier Selection & 

Management 

travelled route of the shipments for a given mode 

(route selection, direct vs. milk-runs, etc.) 

actual provider of transport; green practices/ 

capabilities, managing agreement with the supplier 

LOW 

Source: DGF/F Green Strategy Team; 1) Potential is highly variable to the company being analyzed, potential based on maximum application of the lever to maximize CO 2 efficiency 

without appropriate tradeoffs being made with cost and service level 


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Intermodal Transport: Efficient Combinations 

How many goods do 

DHL SEAIR 

you think really 

need to be at 

destination within a 

few days? 

EURO 

AFRICA 

Air 

DXB 

MAA 

ASPA 

BJS 

PVG 

Sea 

LAX 

AMNO 

Road 

MIA 

Air 

AMLA 

ASIA Westbound 

• Ocean freight to Dubai – cargo 

consolidated to Europe and/or Africa 

• 30%-40% faster than ocean freight 

• 30%-50% cheaper than air freight 

•CO 2 

savings absolute 1) : 23t CO 2 

•CO2 efficiency increase: ~42% 

ASIA Eastbound 

• Ocean freight to L.A. – trucking to 

Miami – consolidated to AMLA final 

destination 

• 30-50% faster than ocean freight 

• 30-50% cheaper than air freight 

•CO 2 

savings absolute 1) : 69t CO 2 

•CO 2 

efficiency increase: ~61% 

Source: DGFF Green Strategy Team; 1) example shipment of 10t 


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LCL Service: New Routing and Less CO 2 

How much CO 2 

do you imagine can 

be saved by using 

optimal routing? 

“Direct LCL Service” Way 

Shanghai to Hamburg 1.59 tCO 2 

Traditional Way 

Hamburg to Vienna 

0.22 tCO 2 

Shanghai to Koper 

Vienna to Ljubljana 

Savings (example shipment of 10t) 

• Transit time: 

2 days 

• CO 2 savings absolute: 0.7t CO 2 

• CO 2 efficiency increase: ~35% 

Koper to Ljubljana 

0.05 tCO 2 

Ljubljana 

Koper 

0.18 tCO 2 

Zagreb 

1.23 tCO 2 



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CO 2 Emissions – Comparison of Transport Modes 

AVERAGE FIGURES 

ILLUSTRATIVE 

Sea Transport: Penang – Bristol (~35 days) 

Distance Load Mode CO 2 

Penang 

Bristol 

14,435 km 20 tons Sea 3.6 tons 

TOTAL 14,435 km 20 tons 3.6 tons 

Bristol 

Sea 

London 

Sea + Air 

Dubai 

Air 

x 20 

SeAir Transport: Penang – Bristol (~ 15 days) 

Distance Load Mode CO 2 

Penang 5,813 km 20 tons Ocean 1.5 tons 

Dubai 5,492 km 20 tons Air 71.3 tons 

London 

169 km 20 tons Road 0.2 tons 

Bristol 

TOTAL 11,474 km 20 tons 73.0 tons 

Sea 

Penang 

Air Transport: Penang – Bristol(

DGF Green Supply Chain Consulting: HP 

Making the Difference: Hewlett Packard, Australia 

DHL Global Forwarding helped Hewlett Packard Australia cut CO 2 emissions by 41% by: 

• Moving the switching centre from Perth to Sydney thus avoiding the 4,000 km overland 

transport 

• Opening an additional switching center in Melbourne to directly offload containers for local 

wholesalers without additional reloading 

• Using trucks with higher load capacity reduced total number of trucks 

Original way 

GoGreen way 

ILLUSTRATIVE 

ILLUSTRATIVE 

Perth 

Perth 

Sydney 

Sydney 

Melbourne 

Melbourne 

CO 2 emissions [t] 6,341 

CO 2 emissions [t] 3,741 6,341 -41% 

Source: DGF/Freight Green Strategy 


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GoGreen can help customers to achieve their own carbon 

reduction goals 

By using inland waterways for its transports, Sanofi-Aventis reduced its carbon footprint by 

30% 

Making the difference 

• For Sanofi-Aventis, DGF changed the delivery of 

temperature-controlled goods for sea freight export 

from heavy good vehicles to inland vessels 

• Transporting sea freight containers by truck to 

European sea ports currently generates emissions of 

approximately 33kg of CO 2 

per tonne 

• By switching to inland waterways emissions can be 

reduced by around 1/3 to 22kg of CO 2 

per tonne 

• DGF transferred five container units each week from 

road to inland waterways network from Mainz to 

Antwerp or Rotterdam 

Voice of the customer 

"Sanofi-Aventis places great importance on acting responsibly with regard to all health & safety and 

environmental issues. We are delighted that DHL has developed a climate protection program and is 

able to help us become more CO 2 

efficient.“ 

Stefan Bender, Head of Distribution Platform at Sanofi-Aventis 

Source: DGFF Green Strategy; http://en.sanofi-aventis.com/ethics_responsibilities, 11 March 2010 


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Customer case: Bosch-Siemens, Germany 

Green road to rail solution - Together with Bosch Siemens Household Appliances DGF 

developed an award-winning logistics solution 

Making the difference 

• Over 13,000 containers had been transported by 120 

trucks between the BSH factory in Giengen and the rail 

terminal in Dornstadt, South Germany, per year 

• With a new rail terminal, including two new 359-meter 

tracks, BSH’s factory in Giengen was directly 

connected to existing rail connections 

• By moving freight from road to rail for the feeder 

transport CO 2 

emissions are cut by about 60% with the 

same runtime as before 

Rail 

Dornstadt 

Hamburg 

Truck 

Giengen 

Voice of the customer 

New route 

Original route 

”With the rail service of DHL we are able to ship our products with a much smaller environmental 

impact compared to transport by truck in the same time. Also, the good arrival and departure times 

give us more flexibility for planning and consolidation." 

Hans-Gerd Bauerfeind, Logistics Director BSH. 

Source: DGFF Green Strategy;2010; Deutsche Verkehrszeitung December 2009 


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Holistic Supply Chain Optimization 

Lever assessment must consider the complete supply chain in 

order to optimize emissions in line with business objectives 

ILLUSTRATIVE 

• Lever applicability highly variable across companies, dependant on the 

supply chain setup and service level requirements of the business 

• As such, lever assessment must be done with full supply chain in mind 

with all emission, cost, and service level tradeoffs considered 

… 

Plant A 

(CN) 

Port 

(SHA) 

Port 

(SEA) 

Warehouse 

(Portland) 

Plant B 

(Portland) 

End-to-end view 

… 

Airport Airport Plant C 

(SEA) (Toronto) (Toronto) 

Leg Leg Leg Leg Leg Leg Leg 

Restricted focus on specific components 

of the supply chain limits options for carbon 

reduction, and does not consider all cost 

and service level tradeoffs 

Focusing on the end to end view of the 

supply chain significantly broadens the 

solution scope, and enables the holistic 

evaluation of emissions with broader supply 

chain and business objectives in mind 



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CO 2 Reduction Potential Warehouse Lighting 

Lighting consumes up to 80% of the electricity required to operate a 

warehouses. More than half of this can be saved through new technologies 

CO 2 reduction levers 

CO 2 reduction potential Facility Design/ Layout 

The customer faces many 

challenges in trying to “Green” 

their supply chain 

… 

1 

Mode Choice 

• 2 Network Design 

3 

4 

Product /Lot/ 

Container Mgmt 

Facility 

Design/Layout 

• 5 Routing 

6 

Carrier Selection 

and Management 

Conservative Lighting 

#of units 

1,400 

Energy p. unit 66 W 

Operating hrs p.a. 8,400 

CO 2 

p.a. 

TOTAL 776,000 kWh 400 to 

#of units 

TOTAL 

LED Lighting 

1,400 

Energy p. unit 28 W 

Operating hrs p.a. 8,400 

ILLUSTRATIVE 

CO 2 

p.a. 

330,000 kWh 170 to 

CO 2 Reduction of 

~60% 

Source: DGF/Freight Green Strategy 


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Balancing Service Levels, Costs, and Emissions 

Supply chain optimization involves managing the conflicting 

forces of costs, emissions, and service levels 

Goal is to minimize the costs and 

emissions in the supply chain… 

Cost elements: 

• Production / purchasing 

• Direct costs 

– Transportation costs 

– Facility costs 

– IT & Admin 

– Taxation 

• Indirect costs 

– Inventory carrying costs 

– Lost sales 

– Obsolescence 

Emissions: 

• Transportation 

• Facilities 

…While maintaining the service level 

requirements of the business 

• Speed 

(total supply chain 

cycle time) 

• Reliability 

(achievement of 

the defined 

requirements, on 

time delivery, etc) 

• Flexibility 

(ability to adapt to 

sudden changes, 

or demand spikes) 



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Thank you for your attention 

Kathrin Brost 

Vice President Green Strategy 

Phone +49 (0) 228 182-21844 

Mobile +49 (0) 160 880 48 81 

Kathrin.Brost@dhl.com 

DHL Global Forwarding 

Johanniterstrasse 1 

53113 Bonn 

Germany 


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GoGreen Program & Services - Nieuwsblad Transport

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