Environmental Excellence / Changing the way we think about shipping

What gets measured gets done

With its vast volumes, rising growth rates and all-pervasive involvement in global commerce, the shipping industry will always be in the crosshairs of those targeting corporate environmental performance.
And rightly so.

Our overall impact on CO2 levels is bigger than some countries. The shipping industry's carbon footprint – like that of all large-scale transportation industries – is a contributor to rising global levels of CO2. The industry's total emissions comprise between three and four percent of global emissions – higher than the nation of Germany. Furthermore, the growth outlook indicated by the International Maritime Organization (IMO), where the industry is set to grow 400-800% towards 2050, poses an obvious challenge for both the industry and our customers.

Tapping into the needs of end consumers

A large proportion of consumers prefer sustainable products, and our customers have taken that to heart. Product recycling, sustainable packaging, energy efficient production, organic materials, etc., have been in focus for more than a decade. Our customers' customers, the end consumer, can today often afford to act solely by beliefs, but companies struggle to cut their emissions to an extent where it makes a visible difference in the end product.

Today there is no transparency and there exists no global regulatory scheme to address the shipping industry's emissions, and progress in developing such regulation is very slow. We owe our customers to start measuring and assessing, so they precisely can tell their customers about the carbon footprint of their products.

The shipping industry

Do you agree that the shipping
industry should have a clear
and transparent global
regulatory scheme of
its emissions?

Total number of votes: 480

93% Agrees

7% Disagrees

We can be much more

Shipping is the least polluting way to mass-move commercial goods around the planet. While worldwide commercial trade will continue to grow and put pressure on companies to find carbon efficient solutions, ocean transport holds huge potential to become an even more important player in global trade.

Examples

We have already proved that shipping can lead the way in solving the environmental challenges of the 21st century. Pound-for-pound, shipping is the least polluting mass transportation system available for consumer goods

▶ A cargo plane will emit 20-50 times more CO2 than a container ship over the same distance with the same weight of cargo. A truck will pollute three to five times more and a small car will emit 18 times more CO2 than a container vessel to travel only one-thousandth of the same distance.

▶ That means that, for the flat-screen TV in a consumer's living room, the carbon footprint of the car trip back from the store is almost certainly greater than that of a truck that drove it 100 miles from the port to the store. And the emissions resulting from shipping it several thousand miles from the factory to the port in the first place are miniscule in comparison to both.

Nestlé

“We are committed to environmentally sustainable business practices. Accordingly, it is not enough for Nestlé to focus on our own operations; we are also striving to improve the broader impacts across the entire value chain in order to give our consumers the peace of mind that our products are not only tastier and healthier, but also better for the environment and the people who are involved in supplying them.”

Claus Conzelmann
Head of Safety, Health & Environmental Sustainability Nestlé Group

▶ Nestlé's approach to sustainability is founded in the concept of Creating Shared Value (CSV), which is a fundamental part of its business strategy.

▶ Nestlé seeks to create value for the people in the countries where it is present – the entire value chain, including farmers, employees, consumers, and finally, the communities in which Nestlé operates.

JOIN THE DISCUSSION

Will environmental performance become a significant competitive factor in the coming years?

12

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sanjay | Jul 19th · 02.21 pm

"Not understand, at one hand we are more concern about CO2 and Environment which is much appreciated, but the same time we are PRINTED "MAERSK POST" every QTLY in thousands and distributed amoung us...which we can beread from Enable.

If its really time of "Need for change", then I personally believe we should stop those things which directly or indirectly connected with A) Environmnet B) Costing C) wastage of papers (as most of the colleagues just go through one time and then keep in dustbin).

So, for me every steps which helps to our organisation by monitory wise as well as environmental wise is need to be implemented.

"

Tracy | Jul 17th · 03.47 pm

"I feel so much happier now I unrdestand all this. Thanks!"

Jory | Jul 16th · 02.00 pm

"These topics are so confsunig but this helped me get the job done."

Borys Pawliw | Jun 20th · 03.25 pm

"I am seeing all this focus on CO2 - which may or may not be the huge issue it is being made out - but what of emissions which are truly harmful? Particulates, sulfur and marine contamination? And then, what of some of the cargos that are shipped? Are vessels made in the most efficient way using reycycled materials, which is both environmentally and socially responsible? And ultimately, what is the price to pay for all this? Where do you draw the line between a vessel costing $115 million built in a highly environmentallly and socially responsible way vs. one near identical but costing $95 million, that is built in a more 'evil' manner?"

Maersk Line Campaign Office | Jun 24th · 11.25 am

"Maersk Line and shipping in general emit a lot of CO2 and we believe we need to do what we can to mitigate that. You are right that burning bunker fuels also result on other emissions - most significantly sulphur oxide, nitrous oxide and particulates, which can lead to respiratory diseases. Maersk Line is particularly focused on reducing our sulphur emissions - we shift voluntarily to cleaner fuels in selected ports to drive down emissions and raise the bar in the industry. With regards to recycled materials, there is also a lot that can be done. We recently ordered 10 large Triple-E vessels and for those we will produce a so-called Cradle-to-Cradle passport, that will list all the materials used to build the ship. This, we believe, will enable better and more profitable recycling and reuse of materials at the end of life of the vessel. Our new Triple-E vessels are fitted with a host of environmental improvements overall. The total cost of each vessel is USD 190 million. The investments in environmental improvements on each ship make up USD 30 million. "

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What if the shipping industry was known for beating environmental expectations
– not struggling to meet them?

Customers are increasingly expecting transparency on environmental impact. They want uniform environmental standards and independently verified environmental data such as the A-G energy rating that has existed for electrical appliances for years or the US Energy Star guiding consumers on energy efficiency of the products they buy.

If we take proactive action we will have an opportunity to help set the standards ...
... then customers will be able to make decisions with open eyes between the carbon footprints caused by carriers in their supply chains.

If customers brand their end product with the product's energy efficiency and thereby meet the buying criteria of the end consumer ...
... then we will be awarded more business because ocean transportation is the most energy efficient mode of transporting goods.

If we become better at making it obvious that we are the cleanest transport industry ...
… then we will not only strengthen our own image, but also the image of our customers.

JOIN THE DISCUSSION

Will we be able to deliver the environmental transparency the customers want?

6

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Rodrigo Caicedo | Jul 7th · 05.48 am

"I believe one of the fundamental changes in the shipping industry should be the replacement of steel containers. First of all, iron ore is becoming scarce, and coal (metallurgic and energetic) adds to carbon emissions. Second, although steel is strong, it gets damaged easily by forklifts and other containers, which means more resources spent into repairing them. And third, steel is quite heavy, and this adds to fuel consumption at ships and trucks. I think a good idea could be to try containers of some sort of plastic or synthetic material, lighter, more flecible and fully recyclable."

Gary Kubit | Jun 27th · 04.00 pm

"World Cargo tonnage by ship accounts for about 99% of tonnage moved with only a small percentage moved by air lines. Conversely the value of the cargo shipped is roughly a 50/60 split, i.e. higher value cargos fly, this is an area where small things possibly deliver large possibilities if the shipper can entrust the shipper and the items can be shipped with some delay at cost savings. The carbon impact is a big issue as customers demand to know the impact thier product on the envioronment. "

Maersk Line Campaign Office | Jun 8th · 09.37 pm

"We in Maersk Line acknowledge that shipping is part of the equation and that we can do our part by improving our environmental performance to the extent possible. And at the same time you are completely right that it is ultimately customer demand that drives consumption.

Our vision for the shipping industry is to ensure that in the total CO2 footprint of a product, the transportation part - and especially the shipping part - should take up as little space as possible. This will allow our customers to produce their products where it can be done most efficiently and then transport it to the end-consumer in fashion that emits very little CO2. "

Steffen | Jun 8th · 03.44 pm

"Although all 3 focus areas will lead to higher efficiency and lower cost, it is key that productivity isnt forgetten in this debate. In my view continuous cost reductions has been a key reason for the growth success of the past and it will remain so for the future."

Maersk Line Campaign Office | Jun 8th · 09.35 pm

"@ Steffen

We in Maersk Line agree that cost should be kept down, certainly. And very often environment and cost goes hand in hand. The more energy efficient the shipping industry becomes, the more competitive it can be in terms of cost. "

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The TOC
Conference 2011

Maersk Line CEO, Eivind Kolding, addressed the
container shipping and logistics industry as
the keynote speaker at the TOC conference
in Antwerp, Belgium on June 7th 2011.

See pictures