Mainfreight Annual Report 2022

54 55
PEOPLE AND COMMUNITIES Environmental, Social and Governance
For the 2021 year, we have seen reductions across all five
of our tracked emissions intensity measures. With the
significant business and volume growth across our global
business over this period, we have recorded a gross
increase in carbon dioxide equivalents of 211,053 tonnes
representing a 14.37% increase in gross greenhouse gas
emissions.
This increase is reflective of the ongoing reverberations
across global supply chain. In particular, a shift in
customer preference to airfreight due to congestion,
price increases and poor reliability in ocean-based
alternatives, and the return of belly freight capacity in
passenger aviation.
Emissions for customer airfreight alone rose 237,098
tonnes in 2021, almost 30,000 tonnes more than the
increase in our global inventory year on year.
This represents a mixed result; an increase is
disappointing, however excluding the impacts of
airfreight, Mainfreight would have seen a second year
of reductions in gross emissions. This comes despite
significant business growth and market share gains over
these last two years.
Unfortunately we do not foresee a normalisation of
global supply chain in 2022, although the dynamics may
shift somewhat. We continue to target reductions in
emissions intensity year-on-year while aiming to reduce
gross emissions wherever possible.
We do expect and strive to continuously reduce the
emissions intensity of our operations globally.
With this disclosure to ISO 14064-1:2018, Mainfreight
intends to demonstrate best practice in emissions
reporting and reinforce its commitment to better
understanding and, ultimately, improving our operational
carbon emissions performance. Our inventories are
independently verified by Toitū Envirocare and follow the
six categories structure of the new standard rather than
the closely aligned Scopes 1-3.
A significant feature of this carbon disclosure is the
inclusion of emissions on the basis of operational control
(not financial control). It is our belief that if we can
exercise reasonable influence over an emissions source
then we must include it. As a result, we incorporate
emissions from vehicles operated by owner drivers and
agents, rail providers, shipping lines and airlines that
support our service offering to customers. For full details
and wider explanation of our emissions inventories,
please refer to our Greenhouse Gas Inventory Reports:
available at https://www.mainfreight.com/global/en-nz/
investor/reports-library
Other Environmental Initiatives
We began recycling office and depot waste in
New Zealand 34 years ago, and we continue to invest and
explore new opportunities and innovations that support
more sustainable business across our global business.
Some of our existing initiatives include:
> Major solar installations on sites across New Zealand,
Australia and Europe total some 2,855 kW generation
from a total of 9,830 panels (enough to power over
700 households).
> Rain and greywater recycling for truck wash, ablutions
and irrigation as a standard feature in our branch
designs.
> Moving capacity from road to rail and coastal shipping.
> GPS and route planning software to bring efficiencies to
freight deliveries and pick ups.
> Continuing programme of modernising owner driver
fleets, so that more environmentally efficient vehicles
replace older and less efficient vehicles.
> Utilising EV and hybrid vehicles for our sales team;
currently over 315 vehicles in Australasia and Europe (last
year 243 vehicles). New Zealand and Australia now both
above 40% hybrid and electric.
> Conversion of gas and diesel powered forklifts to electric
and supplementing with manual pallet trucks.
> Branch vegetable gardens and ‘hungry bins’ for food
scrap composting.
> Waste exchange arrangement for shrink-wrap, pallet
waste repurposing, and polystyrene recycling.
> Progressing trials and explorations of electric truck
opportunities.
> We continue to develop our GHG emissions reporting
tools for customers. Along with Mainfreight’s own peerreviewed
emission factors, customers can get an accurate
inventory of their supply chain emissions from local
deliveries through to international shipments.
INTENSITY FACTORS
CO2-e per Mainfreight Team Member # 161.97
tonnes
CO2-e per million dollars in Revenue # 329.43
tonnes
2021 2020
164.69
tonnes
436.89
tonnes
CO2-e per tonne Domestic Freight* 49.65 kg 58.46 kg
CO2-e per tonne of Air Freight* 1.20 tonnes 1.21 tonnes
CO2-e per TEU of Seafreight* 0.09 tonnes 0.12 tonnes
#
Total CO2-e
* Category 1 & 3 CO2-e
Airfreight and Seafreight intensity measures have been updated to use
T-KM/TEU-KM rather than weight alone
MAINFREIGHT EMISSIONS (TONNES CO2-E)
CATEGORY CATEGORY DESCRIPTION 2021 2020
Category 1 Direct GHG emissions and
removals in tonnes CO2-e
278,964 263,759
(Road freight: Owner Driver
vehicles & owned/leased
vehicles)*
Category 2 Indirect GHG emissions from
imported energy
14,865 15,414
(Electricity, LPG, etc)
Category 3 Indirect GHG Emissions from
Transportation
1,309,744 1,115,134
(Third party road, rail, air, sea
transport)*
Indirect GHG emissions
Category 4 associated with the use of
76,389 74,678
products by the organisation
Category 5
Indirect GHG emissions
associated with the use
of products from the
- -
organisation
Category 6
Other indirect GHG
emissions sources
137 61
TOTAL 1,680,099 1,469,046
2021 2020 CHANGE
Road 464,327 460,063 0.93%
Rail 9,603 7,038 36.45%
Air 943,337 706,239 33.57%
Sea 226,769 261,739 -13.36%
TOTAL CUSTOMER
FREIGHT EMISSIONS
(Total of Road,
Rail, Air, Sea)
Direct Mainfreight
Emissions
EMISSIONS SOURCES
1,644,036 1,435,079 14.56%
36,063 33,967 6.17%
TOTAL EMISSIONS 1,680,099 1,469,046 14.37%
* 2020 figures have been updated and republished to account for a change in road freight calculations that affected categories 1 and 3.
For more details please see section 4.2.1 of our 2021 GHG Report.
KIKI COGH, BORN, THE NETHERLANDS