Chris Colla from Sharp Electronics; ‘Drive Social and Environmental Values: Deliver business through the green initiatives that sync with your business and customers' needs’

ENVIRONMENTAL SUPPLY CHAIN

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Chris Colla

Director - Supply Chain Process Management


THE RISK OF NOT BEING A “GREEN” COMPANY


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OVERVIEW OF SHARP ELECTRONICS CORPORATION

• Global Consumer Brand • Annual Revenue - $33B • Sharp Products

– AQUOS LCD TV – Microwave Ovens – Insight Oven Ranges – Copiers – Faxes – Monitors – Air Purifiers – Air Conditioners – Calculators – Solar Panels


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• Commercial Freight Truck and Rail: – Travel Over 200 Billion Miles

– Consume Over 40 Billion Gallons Of Fuel Today

– Produce Approximately 350 Million Metric Tons Of CO2

Background Data:

40 billion gallons of gasoline and diesel

U.S. EPA SMARTWAY TRANSPORT PARTNERSHIP


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Growing Concerns About Transportation & Climate Change

Personal Vehicles 40%

Other Transportation 27%

Other Sectors 33%

US Oil Consumption US Carbon Emissions *Includes all fuel sources

Other Sectors 68%

Personal Vehicles 19%

Other Transportation 13%

Transportation accounts for about: 2/3 of oil consumption and 1/3 of total CO2 emissions.



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Mobile Source Diesel Emissions Inventory by Sector

NOx (6.3 million tons)

PM (305,000 tons)

ports 4%

school bus 1% transit

1%

agriculture 8%

construction 11%

non-port marine 13%

other nonroad 4%

other highway 3%

transit 0%

school bus 2%

other highway 3%

ports 5%

other nonroad 9%

non-port marine 9%

agriculture 19%

construction 21%

Freight

56%

Freight

32%



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WORLD CO2 EMISSIONS BY TRANSPORT MODE


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The SmartWay Transport Partnership Is An Innovative And Voluntary Collaboration Between The U.S. EPA And The Freight Industry To Increase Energy Efficiency While Significantly Reducing Greenhouse Gases And Air Pollution

There Are Four Primary Components Of The Program:

• Creating Partnerships

• Reducing All Unnecessary Engine Idling

• Increasing The Efficiency And Use Of Rail And Intermodal Operations

• Saving Money on Fuel Cost


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• Joined The SmartWay Program In 2004

• 2006, 2007, 2008, & 2009 SmartWay Excellence Award Winner


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HOW DOES THE PARTNERSHIP WORK? Shippers:

– Top Of The Supply Chain, Drive Marketplace Demand

– Give Preferred Status To SmartWay Carrier Partners

– Get Better Data To Improve Their Own Shipping Operations

– Modify Logistics Operations To Improve Efficiency & Reduce Emissions, For Example:

• Inter-modal Shipping • Full Truck Loads • Warehouse Improvements • Idle-reduction At

Facilities – Get Recognition And PR Value

With SmartWay Brand

Carriers: – Gain Competitive

Advantage: • Preferred Status, Plus • Fuel Efficiency, Savings

– Reduce Emissions – Integrate Fuel Saving

Technologies And Strategies Into Fleets, Such As:

• Idle Reduction • Improved Aerodynamics • Efficient Tire Systems • Driver Training • Renewable Fuels • Advanced Lubricants

– Get Recognition And PR Value With SmartWay Brand


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• Carrier Notification

• Strict Pickup Times On LTL Shipments

• Implement A No Idling Policy

• SmartWay No Idling Sign Outside Logistics Centers

• Increase Intermodal Shipments

• Mexico/Canada C-TPAT Certification

• Implement Monthly PM Schedule On All Forklifts

• Reduce Light Emissions Using Motion Sensors

• Implement ISO14001

• Employee Training & Education

• Sharp USA CSR Committee

• Rental Car – Hybrids

• Use Recycled Paper in Copier, Printers, & Fax

• Use Corrugated Honeycomb Pallets

• CFL Lights to Logistics Group

• Test Drive a Hybrid Day

• $ 50 Idling Fine – To Charity

SMARTWAY – SHARP’S ACTION PLAN


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COMPACT FLUORESCENT BULB

2,000 Bulbs will: Save 900,000 kWh Electricity Over Life of Bulbs Save 1.4 Million Lbs of CO2 Over Life of Bulbs Equal to Pollution of 120 Cars for 1 Year


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• Savings – Using Intermodal & Enforced NO IDLE Policy

– CO2 – 40,057 Tons – PM – 2.6 Tons – NOx – 66.8 Tons – Diesel Fuel – 3.8 Million Gallons

SMARTWAY - PARTNERSHIPS: SHARP RESULTS


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SMARTWAY - PARTNERSHIPS: TOTAL RESULTS

• About 2,000 Partners Drive Approximately 650,000 Trucks (10% Of Industry) Travel Over 60 Billion Miles Per Year (30% Of Industry) Consume Over 12 Billion Gallons Of Fuel (32% Of Industry)

• Goals 2010: Reduce Greenhouse Gas And Pollutant Emissions By:

6 Million Tons Of CO2 (Carbon Dioxide); 800 Tons Of PM (Particulate Matter); 30,000 Tons Of NOx (Oxides Of Nitrogen);

Save Over 540 Million Gallons Of Diesel Fuel Save The Freight Industry $2 B In Fuel & Maintenance Costs


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• Number of SmartWay Carriers – 2004-05 – 24 Out Of 85 Total Carriers (28%) – 2005-06 – 39 Out Of 85 Total Carriers (46%) – 2006-07 – 72 Out Of 80 Total Carriers (90%) – 2007-08 – 39 Out Of 47 Total Carriers (83%) – 2008-09 – 39 Out Of 40 Total Carriers (98%) – 2009-10 – 32 Out Of 32 Total Carriers (100%)

• Tons Shipped With SmartWay Carriers – 2004-05 – 41,808 Out Of 127,841 Total Tons (33%) – 2005-06 – 81,499 Out Of 102,808 Total Tons (79%) – 2006-07 – 113,546 Out Of 115,468 Total Tons (98%) – 2007-08 – 104,415 Out Of 108,313 Total Tons (97%) – 2008-09 - 107,265 Out Of 107,269 Total Tons (100%) – 2009-10 – 73,836 Out Of 73,836 Total Tons (100%)

• Sharp Also Had The First Mexican Boarder Carrier Join & Two Canadian Carriers

SMARTWAY - PARTNERSHIPS: SHARP RESULTS


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SMARTWAY PROGRAM SUPPLY CHAIN STRATEGIES

• Many Companies, Countries, Trade Groups, NGOs And Other Stakeholders Looking For Ways To Reduce GHG Emissions From The Supply Chain.

• World Economic Forum Estimates Potential Mt CO2e Savings From:

– Clean Vehicle Strategies 175

– De-speeding Supply Chain 171

– Optimized Networks 124

– Packaging Improvements 132

– Low Carbon Sourcing 152

– Modal Switches 115

– Reverse Logistics 84

– Near-shoring 5

= 958 Mt CO2e

Emissions reductions potential


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SmartWay Fleet Model 1.0 SmartWay Fleet Model 2.0

CARBON BASED CARRIER SCORING SYSTEMS

SmartWay 1.0: - Simplistic Scoring - Non Meaningful

SmartWay 2.0: - Objective Scoring - Carbon Footprint Measurement


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COMPARISON SMARTWAY SHIPPER SCORING

The current system provides a non-dimensioned environmental score

The new system will provide multiple efficiency metrics and total inventories for CO2, NOx, and PM: •g/mile

•g/avg payload ton-mile

•g/avg cubic foot volume

•g/truckload


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• Encourage Ocean Carriers To Commit To: – Low Sulfur Bunker Fuels, And Other Fuel Improvements – Engine Improvements Such As Slide Valves, Fuel Injection,

EGR And Other New Technologies – Scrubbers, Catalysts, Bonnets And Other After-treatments – Innovations Such As Cold-ironing, Speed Reduction, Hull

Coatings, Supplemental Wind And Solar Energy Sources – Long Term Solutions And More Sustainable Operations – PM, NOx, and CO2 Reductions Goals

SMARTWAY - CREATING PARTNERSHIPS: NEXT STEPS


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• Europe – Climate TransAct

– Project To Harmonize Existing Public Private Transport Programs And To Develop A Common European Approach Based On Best Practices, Is Creating A Coalition To Achieve Its Objectives

– SmartWay Is Among The Models It Is Considering To Help Create Incentives For Carriers And Shipper To Improve The Energy And Environmental Performance Of Freight Transport Throughout The Continent

– Participants In The New Coalition Include Public Authorities And The Industry Represented By Transport Companies, Shippers, European And National Associations

• Website - Http://WWW.Climatetransact.EU/

SMARTWAY - PARTNERSHIPS: GLOBAL NEXT STEPS


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RISKS OF NOT “GETTING INTO THE GAME”

In Addition To The Environmental And Global Warming Risk, There Are Immediate Risks That Your Organization Will Need To Mitigate

• Changing Political And Economic Forces Causing Government Mandates

• Local Mandates (Higher Risk, More Immediate)

• Competition (“Your Competition Is Getting Into The Game”)

• Customer Response And Image to Consumers


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QUESTION

1000 1000 1000 1000 40 30 20 10


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PARADIGM

1000 10 1000 20 1000 30 1000 40 4100


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• Environmental Issues Are Not Just Left Up To Environmental

Managers – Everyone Must Step Up

• Its Not About Whether You Believe In Global Warming

– CO2, NOx, PM Are In The Air And Bad To Breathe – We Must Reduce Emissions

• The SmartWay Program:

– Its Easy – Its Good For The Environment – It Makes You Feel Good – Competitive Advantage

CLOSING


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WE ARE IN THIS TOGETHER

AND CAN ALL BENEFIT TOGETHER

For Information on SmartWay Contact:

Buddy Polovick US Environmental Protection Agency

Office of Transportation and Air Quality SmartWay Transport Partnership 2000

Traverwood Drive Ann Arbor, MI 48105 (734) 214-4928 phone

[email protected]

Chris Colla from Sharp Electronics; ‘Drive Social and Environmental Values: Deliver business through the green initiatives that sync with your business and customers' needs’

Business

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