BSR - Future of Fuels - Driving Toward Low-Carbon Future - 20160505

Driving Toward the Low-Carbon Future Future of Fuels Forum

2:00 PM – 4:00 PM

http://www.bsr.org/future-of-fuels

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Driving to the Low-Carbon Future

Questions for Discussion Today:

• How can companies signal interest in clean

energy through fleet planning and fuel buying?

• How can companies effectively plan for

sustainable low-carbon technologies?

Additionally:

Public launch of Fuel Sustainability Tool

Available for free at: http://www.bsr.org/fuel-tool

Agenda:

2:00 – 2:20 pm

Welcome

About Future of Fuels

2:20 – 3:00 pm

Introduce Fuel Tool

3:00 – 4:00 pm

Discussion

IntroductionWelcome and About BSR’s Future of Fuels

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San Francisco

New YorkParis

Guangzhou

Copenhagen

Shanghai

Hong Kong

Tokyo

8OFFICES

75PROJECT

LOCATIONS

100GLOBAL

STAFF

250MEMBER

COMPANIES

+ + +

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Global Nonprofit Business NetworkWe are a global nonprofit organization that works with our network of more

than 250 member companies to build a just and sustainable world. From

our offices in Asia, Europe, and North America, we develop sustainable

business strategies and solutions through consulting, research, and

cross-sector collaboration.

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More than 200 companies engage in our industry and cross-sector

Collaborative Initiatives, which are designed to help companies address

complex sustainability issues together:

BSR Collaborative Initiatives

• Create shared purpose and support

individual interests

• Drive commitment to best practices

• Leverage strengths of different participants

• Foster transparency and mutual learning

• Align incentives to integrate measureable

performance and support collective

progress

Mutual

Learning

Collective

Progress

Mutual

Learning

Shared

Purpose

Pressures Today, Uncertainty TomorrowDespite new regulatory and stakeholder pressures, the road forward for

low carbon commercial freight isn’t always clear.

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Rising regulation

Fuel price uncertainty

Limited availability of

alternatives

Competing clean fuel claims

Air and climate

concerns

Customer needs

Future of Fuels: A Clean Freight SolutionA vision of commercial road freight fueled by low-carbon sustainable technology.

Our Members

Our MissionOur mission is to drive a sustainable transition to low-carbon commercial road

freight as a business-to-business, cross value-chain, fuel-neutral group focused

on lifecycle energy sustainability.

7Website: http://www.bsr.org/en/collaboration/groups/future-of-fuels

Partnerships

Convenings

Tools / Research

Our Approach

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North America Fuels

The Focus of Future of Fuels

• Medium and Heavy

Duty Vehicles

• Diesel

• Renewable Diesel

• Biodiesel

• CNG

• LNG

• Electrification

• Hydrogen

Trucking

Business-to-business, cross value-chain, fuel-neutral group focused on

lifecycle energy sustainability.

Convenings Build Buy-in, Alignment

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Reports and Stakeholder Forums

Industry and Corporate Engagement

Report: Sustainability

Impacts of Fuel

Report: Fuel

Sustainability Briefs

California Forum 2015: Scaling Low-Carbon

Fuel Sustainably

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Thought Leadership Provides Direction

Transitioning to Low-Carbon Fuels

The Time for Action on Clean Fuels is Now. Here’s how. (Article)

Transforming Transportation Fuel for a Low-Carbon Future (Article)

A Business Guide for Sustainable Trucking in North America (Guide)

How Commercial Trucking Can Improve Fuel Sustainability (Article)

How to be a Smart Freight Leader (Article)

Understanding Sustainability Impacts of Fuels

New Briefs Outline Sustainability Impacts of Five Commercial Trucking Fuels (Article)

Fuel Sustainability Briefs (Issue Brief)

The Sustainability Impacts of Fuel (Article)

Addressing Climate Risks and Opportunities

Climate Change: Implications for Transportation (Guide)

The Most Important UN Climate Initiative for Business (Article)

Business Action for Climate-Resilient Supply Chains (Report)

Fuel Sustainability ToolLaunched Publicly Today at ACT Expo

11Available at: http://www.bsr.org/fuel-tool

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A Fuel Transition is UnderwayThe growth of multiple alternative fuels is expected to continue over the

next several decades. We see a poly-fuel future.

Available at: http://www.bsr.org/fuel-tool

Source: US Energy Information Administration, 2014

Notes: “E85 vehicles” includes only fleet-based vehicles and excludes vehicles with E85 fueling capability owned by individuals

Alternative Fuel Vehicles in Use (US)

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Climate Change

• Aggressive

emissions

reductions

needed to avoid

the

unmanageable

Freight Growth

• Freight is growing

faster than most

energy sectors

that create

emissions

Fleet Regulation

• Regulation – from

California to

China – is tipping;

global accord

expected in

December

Low-carbon fuel supply is limited, and technological barriers to their

adoption are daunting. There are mixed claims on fuel sustainability.

Elements of the Transition

Solutions

• Technology

• Commercial

• Sustainability

Available at: http://www.bsr.org/fuel-tool

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Climate Emissions Regulation RisingTransportation is increasingly in the crosshairs for regulation as an area of

concern related to health and climate impacts.

Source: http://nationallcfsproject.ucdavis.edu/map/

176 176 countries signed a global climate agreement in Paris

last December. As many as 96 countries have initiated

climate policies at the national and subnational levels,

and 188 countries have national targets (INDC’s).COUNTRIES

Available at: http://www.bsr.org/fuel-tool

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Sustainability Impacts of FuelImpacts related to production, refining, distribution, and use of

transportation fuel are very broad including water, human rights, health.

Available at: http://www.bsr.org/fuel-tool

Water Ecosystems and Biodiversity Community Health

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Petroleum BiofuelsNatural Gas

Each fuel type has its own set of specific sustainability challenges and

many are unique to the specific fuel source (pathway).

Challenges to Sustainable Fuel

• Climate impacts from

diesel transportation

• Oil field carbon

intensity that varies by

up to 80%

• Human rights in non-

OECD oil states

• Worker exposure to

exhaust

• Methane leakage of 1-

3%

• Seismicity around

hydraulic fracturing

• Groundwater

contamination from

improper wellbore

• Direct and indirect

land-use (ILUC), esp.

in non-OECD

• Agriculture water use

and runoff

• Commodity

competition

• Agriculture labor

practices

Available at: http://www.bsr.org/fuel-tool

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The Fuel Tool provides credible, comparable data to commercial freight

fleet owners for fleet planning and fuel purchasing.

Simplifying Sustainability: The Fuel Tool

32 fuels by fuel source

Climate emissions metrics

Social and environmental

impacts

Best practices

Data and uncertainty

The Fuel Tool Answers:

What are the sustainability benefits and impacts of the fuels I’m using and

considering? How can I use best possible versions of each fuel type?

A. Measure Emissions

B. Understand Impacts

C. PromoteBest Practice

F U E L T O O L

Available at: http://www.bsr.org/fuel-tool

Actions that can drive to low-

carbon technology sustainably

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Setting Direction to Low-Carbon Fleets

Available at: http://www.bsr.org/fuel-tool

Fleet questions

• How do I measure climate

impacts of fuels?

• What are the other social or

environmental impacts or

risks?

• How do I use the best,

most sustainable version of

each fuel?

A. Measure emissions

B. Understand other impacts

C. Promote best practices

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Setting Direction to Low-Carbon Fleets

Available at: http://www.bsr.org/fuel-tool

Vehicle purchasing

1. Identify truck models

that meet needs

2. Compare

performance and

price against spec

3. Compare climate

and other benefits

and impacts

Fleet Target-Setting

1. Assess current fleet

operation and climate

performance

2. Review business plans

3. Generate options for

fleet climate targets

Set supply-chain criteria

1. Determine fuel type

(Diesel, CNG, etc.)

2. Understand

sustainability

impacts and best

practices

3. Discuss options and

availability with

suppliers

A. Measure emissions

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Setting Direction for Low-Carbon Fleets

Available at: http://www.bsr.org/fuel-tool

Vehicle purchasing

example

• Evaluating purchase of

vehicles: Natural gas in

Texas

• What are the per-gallon

climate benefits

compared to existing

vehicles?

Texas: CNG Compared to Diesel (per-gallon)

Per-gallon lifecycle climate emissions benefit of different types of CNG:

Fuel type Fuel source % Benefit

Diesel Midwest Diesel Baseline

CNG North American Conventional Natural Gas 21.0%

CNG North American Shale Natural Gas 20.9%

RCNG Landfill CNG 83.3%

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Setting Direction for Low-Carbon Fleets

Available at: http://www.bsr.org/fuel-tool

Vehicle purchasing

example

• Evaluating purchase of

vehicles: Natural gas in

Texas

• What are the primary

social and

environmental impacts

you would need to

consider?

B. Understand other impacts

Texas: CNG Compared to Diesel (per-gallon)

Sample social and environmental impacts of baseline and different types of CNG:

Fuel type Fuel source Social Environmental

Diesel Midwest Diesel Worker health Groundwater impacts

CNG North American Conventional Natural Gas Community health Methane “leakage”

CNG North American Shale Natural Gas Community health Methane “leakage”

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Setting Direction for Low-Carbon Fleets

Available at: http://www.bsr.org/fuel-tool

Vehicle purchasing

example

• Evaluating purchase of

vehicles: Natural gas in

Texas

• Are there any fleet and

supply practices you

would need to consider

to manage those

impacts?

Texas: CNG Compared to Diesel (per-gallon)

Sample social and environmental impacts of baseline and different types of CNG:

Fuel type Fuel source Sustainable Fleets Sustainable Supply

All All EHS systems Global certifications

Diesel Midwest Diesel Efficiency training IFC Standards/E100

CNG North American Conventional Natural Gas Methane detection IFC Standards/E100

RCNG Landfill CNG Methane detection ID source location

C. Promote best practices

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Fuel Tool Developers and Contributors

Available at: http://www.bsr.org/fuel-tool

BSR’s Future of Fuels Member

Organizations

• PepsiCo, Inc.

• Royal Dutch Shell

• Suncor Energy (through 2015)

• The Coca-Cola Company

• United Parcel Service, Inc. (UPS)

• Volvo North America (through 2015)

• Wal-Mart Stores, Inc.

• Westport Innovations

Technical Working Group

• Adam Brandt, Stanford University

• Frank Bio, Volvo North America

• Rosa Dominguez-Faus, U.C. Davis Institute

of Transportation Studies

• Karen Hamberg, Westport Innovations

• Caley Johnson, National Renewable Energy

Laboratory

• Graham Williams, G.P. Williams Consulting

• Ben Ratner, EDF

• Andrew Ritchie, Royal Dutch Shell

• Paul McWhirter, Royal Dutch Shell

• Matthew Rudolf, Roundtable on Sustainable

Biomaterials (formerly)

• Stephanie Searle, The International Council

on Clean Transportation

• Emmanuel Varenne, Volvo North America

DiscussionDiscussion on Driving to a Low-Carbon Future

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Discussion 1How can companies signal interest in clean energy through fleet

planning and fuel buying?

• Who are the needed partners to enable progress toward low-carbon,

sustainable commercial freight?

• What more is needed for business to signal to these partners?

• What would it take to bring all the right people to the table?

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Discussion 2How can companies effectively plan for sustainable low-carbon

technologies?

• What are the missing pieces, data, signals for low-carbon fleet planning?

• How do we take advantage of other initiatives and activities?

• What new or increased expectations are stakeholders placing on

companies throughout the commercial freight value chain?

• What will it take to drastically accelerate progress?

• What will the corporate fleet of 2030 look like? 2050?

Moving ForwardLive Demonstration of the Fuel Sustainability Tool

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Driving to the low-carbon futureWe invite you to use the tool, submit feedback, or even join us as a

member to determine the next phase for our work.

Future of Fuels Activities

• Fuel Tool orientation and demonstration

webinars

• Convening: fuel supplier engagements

• Engagement & integration (e.g.

SmartWay, CALSTART, NACFE)

• Fleet use and feedback

• Fuel Tool development options 2017:

• Add new metrics (e.g. water)

• Add electricity, hydrogen, etc.

Events:

Fuel Tool Webinar: June 15, 1pm ETContact [email protected] for more information

Future of Fuels ForumNovember 1, New York City

www.bsr.org