Low Carbon Logistics - Opportunities for Green Supply Chain” Role of Renewable energy (PV) and energy efficiency management Building on Science Dr. George C.Y. So KCSJ General Manager and Senior Consultant to DuPont Construction Industry Board Safety Sustainability Efficiency Technology Reliability CSR
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Low Carbon Logistics - Opportunities for Green Supply Chain”
Role of Renewable energy (PV) and energy efficiency management
Building on Science
Dr. George C.Y. So KCSJGeneral Manager and Senior Consultant to DuPont
Construction Industry Board
Safety
Sustainability
Efficiency
Technology
Reliability
CSR
“We do not inherit the earth from our ancestor, we borrow it from our children”Haida Proverb
2003: Artic ice free
by 2070
2008: Artic ice free
by 2013 ?
The Story begins with………… ..
- a Movie “ Inconvenient Truth”
-“ 6 degree”
- Story of stuffs
What’s Happening to Our Planet?地球發生甚麼事地球發生甚麼事地球發生甚麼事地球發生甚麼事?
Arctic circle ice is melting at an incredible rate (free fall);the landscape covered with iceis 40 % less in 2007 vs 1970北極海冰融化越來越快北極海冰融化越來越快北極海冰融化越來越快北極海冰融化越來越快, 其總面積在其總面積在其總面積在其總面積在2007年更插水式地減小年更插水式地減小年更插水式地減小年更插水式地減小, 比比比比1970年年年年少了少了少了少了 40%
The biggest Crisis Human Beings ever face人類面臨最大危機人類面臨最大危機人類面臨最大危機人類面臨最大危機
Global Warming全球暖化!!
CO2TARGET CURRENT IREVERSIBLE
350 ppm 387 ppm 450 ppm
-- Newsweek, March 23, 2009
�� By 2050By 2050, CO2 emissions will have to be 80 % below today’s to keep atmospheric levels no higher than 450 ppm (we’re now at 386 ppm, compared with 280 ppm before the Industrial Revoluti on)
� World used 14 trillion watts of power in 2006� Assuming minimal population growth (to 9 billion pe ople), slow
economic growth (1.6 %/yr – a recession level), and unprecedented energy efficiency ( ����500% worldwide), it will use 28 trillion watts by 2050
� To keep CO2 levels below 450 ppm, 26.5 trillion watts must be zerozero--carboncarbon
ChallengesChallenges
NuclearNuclear
� In 2006, it provided 0.9 trillion watts
� To get 10 trillion watts, less than half of what we ’ll need in 2050, we’d have to build 10,000 reactors, or one every ot her day starting now.
WindWind� If we’re able to put to use every
breeze that blows, we’ll get 10 to 15 trillion watts
� Yet, a more realistic figure is 3 trillion watts
� Or, 1 million state-of-the-art turbines, and even that requires storing the energy when the wind doesn’t blow-something we don’t know how to do in an efficient way
SolarSolar� To get 10 Trillion watts by 2050, we’d need to cove r 1 million
roofs with panels everyday from now until then
Eventual depletion of our energy resourcesEventual depletion of our energy resources世界能源世界能源世界能源世界能源开开开开始殆始殆始殆始殆尽尽尽尽世界能源世界能源世界能源世界能源开开开开始殆始殆始殆始殆尽尽尽尽
据位於巴黎的世界能源据位於巴黎的世界能源据位於巴黎的世界能源据位於巴黎的世界能源处处处处 (World Energy Council in Paris) 估估估估计计计计::::
世界的世界的世界的世界的石油石油石油石油将将将将於於於於 40 年年年年内开内开内开内开始殆始殆始殆始殆尽尽尽尽 Petroleum depletion in 40
years
天然气天然气天然气天然气在在在在 50 年年年年内内内内丶丶丶丶煤煤煤煤矿矿矿矿在在在在 120 年年年年内内内内将将将将被用完被用完被用完被用完 Natural gas in 50
years, and coal depletion in 120 years
全球全球全球全球 400 多座多座多座多座核能核能核能核能电电电电厂所需的厂所需的厂所需的厂所需的铀矿铀矿铀矿铀矿也也也也将将将将於於於於 60 年年年年内内内内耗耗耗耗尽尽尽尽In 60 years,
the uranium will be depleted.
能源供能源供能源供能源供应紧张丶应紧张丶应紧张丶应紧张丶成本提高成本提高成本提高成本提高,,,,导导导导致价格增致价格增致价格增致价格增长长长长 Energy demand driving
� Rapid Market Growth: Average CAGR ~ 24% to 2030市場快速增長
� For a sustainable business: Grid Parity与市電同價
Content
A Sustainable energy future- 450 ppm Scenario
Key challenges in Current environment
Market size and opportunity of renewable/clean ener gy
Policy to Prosperity- Grid Parity
The Birth of A Multinational Solar Company under HK /SZ innovation circle
Green Logistics to Green Living- low carbon economy path via energy efficiency
management
Conclusion
Policy to Prosperity
(PV as an example)
Key to success to Grid Parity: Subsidy is mid-term solution
cost reduction is a long term solution
Content
A Sustainable energy future- 450 ppm Scenario
Key challenges in Current environment
Market size and opportunity of renewable/clean ener gy
Policy to Prosperity- Grid Parity
The Birth of A Multinational Solar Company under HK /SZ innovation circle
Green Building to Green Living- low carbon economy p ath via energy efficiency
management
Conclusion
DuPont Apollo
(A wholly own subsidiary of DuPont China Limited)
Content
A Sustainable energy future- 450 ppm Scenario
Key challenges in Built environment
DuPont Vision and Mission
Market size and opportunity of renewable/clean ener gy
Policy to Prosperity- Grid Parity
The Birth of A Multinational Solar company under HK /SZ innovation circle
Green Building to Green Living- low carbon economy p ath via energy efficiency
management
Conclusion
Green Logistics to Green Living能源管理能源管理能源管理能源管理 –能源效率能源效率能源效率能源效率, 能源收集能源收集能源收集能源收集, 能源储存能源储存能源储存能源储存
Energy Management - Energy efficiency, energy generation, energy storage
优化设计优化设计优化设计优化设计 –创造舒适环境创造舒适环境创造舒适环境创造舒适环境Performance based design – comfortable environment
>40% CO2 Climate Change Emissions - from Buildings a nd Construction.
New Regulations 2010, 2016, 2018, 2020…..-Very costly to do nothing.
-PV Feeder tariffs
-Code for Sustainable Homes etc
-Life Cycle Analysis/Environmental Profiles
Passivhaus, Germany
Green Build
Council
A Driving Force
Low carbon supply chain
� 1.Focus on efficiency gain across their end-to-end supply chain.
� 2. Environmental expectations� 3. Emergence of New legislation� 4. Consumers’ spending decisions are
increasingly based on value in the current economics circumstances
Three principles for a low carbon supply chain
� 1. Look at the end-to-end chain as a joined up process
� 2. Implementing more a granular carbon processes across the supply chain.
� 3. Insert the ‘cost’ of carbon as a factor in KPI design and business case arrangement.
Five supply chain decarbonizationopportunities
� 1. Understanding the carbon impact of production locations and raw material origins-and implementing alternatives sourcing options where needed
� 2. Reduce speed requirements� 3. Reducing packaging use
� 4.Increase the use of recycling and reverse logistics
� 5. Revisiting distribution channels
Fundamental Changes
Sourcing strategies
� 1. “nearsourcing” to counter the rising transportation cost
� 2. Multiple sourcing to counter the volatile climate conditions to ensure business continuity
� 3. Energy efficiency is one of the distinguishing factors to select individual suppliers
Buyer-supplier relationship
� 1. Partnerships for collaborative innovation will find new opportunity to drive new efficiency
� 2. IT solutions will play an important role in providing insights and data in managing the value chain.
� 3. A new commercial relationships which will call for transparency and traceability between buyers and suppliers.
Solutions Outside the B2B relationships
� 1.Lifecycle analysis� 2.Consumer interface to reduce climate
impacts arising from product use, maintenance and disposals
� 3. Carbon accounting and product carbon labeling
� 4.Policy compliance and regulatory issues.
Examples
Wal-mart / Retail industry
– 60,000 suppliers, indirect emissions to be 72 % of the company total in 2006
– “Sustainable Value Networks”-renewable energy, zero waste and sustainable products-incent carbon emission reductions through partnerships that extend beyond Wal-marts walls to include collaborations from non-profits, suppliers, and other environmental stakeholders spanning from Government officials to academics.
Clean Cargo Working Group/ Industry: Cross-Industry
� Corporate Social Responsibility� Collaboration between 20 ocean going and other
freight service providers (e.g. Maersk Line, Hapag-Lloyd), leading multinational manufacturers (e.g. Toyota, Chiquita). Carriers involved in clean cargo in 20098 accounted for ~68% global containers shipped worldwide. Transportation providers in the group help cargo owners to manage their transportation emissions by reporting emission date for better decision making
Nike/ Industry: Apparel/Footwear
� Estimate the embedded caron in its products to be equal to 2.5 times the carbon emiteed by the footwear factories marking the products
� Need to consider alternative materials in the design process-remval of “F-gases” from its shoe lines reduced 80% of Nike’s footprints between 1997-2006.
DHL/ Industry” Loigistics
� Target: 30 % improvement in group carbon efficiency by 2020
� Key performance levers include optimizing air and ground fleets, improving energy efficiency, developing innovative technology, enhancing employees incentives and involving subcontractors.
� Examples: “Smart Truck” project where “intelligent” vehicle processes dynamics route planning abnd live traffic data to enable pick-up and deliveries to become more efficiency in terms of time, cost and emissions.
Cadbury/ Industry: Food and Agriculture
� Measured GHG emissions “From Farm to Plate”
� The company deduced that over 60 % of its carbon footprints comes from dairy in its milk chocolate products. Cadbury shared the data with its customers and suppliers in UK and engaging the suppliers to teach them sustainable practices for reducing emissions
Electronics Industry Citizenship Coalition (EICC)/ Industry: Technology
� A 40 member coalition of Consumer electronics brand and their suppliers (including HP, IBM, Intel) to develop a standardized industry accounting tool for GHG that enables a streamline, objectives process for measuring emission in the supply chain.
� This group utilize shared data to promotes operational efficiency and share understanding of allocation and responsibility issues with respect to suppliers GHG.
� Through this work, EICC is working to illuminate key legislative priority areas for the governments and other policy makers
Levi Strauss & Co. (Levi’s)/ Industry: Retail
� Levi is a member of Business for innovative Climate and energy policy (BICEP).
� Levis undertook “ Cradle to Grave” Lifecycle analysis (LCA) on selecting high volume products, including its 501 jeans and Dockers Khakis lines, which revealed that the largest carbon impact was in washing and drying (consumer use) Taking ownership for indirect emissions, the company chose to engage its consumers through products labeling. Clothing labels on these products were altered to encouraged consumers to reduce emission by washing the product in cold water versus hot water
Content
A Sustainable energy future- 450 ppm Scenario
Key challenges in Current environment
Market size and opportunity of renewable/clean ener gy
Policy to Prosperity- Grid Parity
The Birth of A Mulitnational Solar Company under HK /SZ innovation circle
Green Logistics to Green Living- low carbon economy path via energy efficiency