15 DSV Panalpina Corporate Responsibility Report 2020 Environment Sustainable logistics services Many of our customers are seeking lower-carbon logistics services. Because of our asset-light business model, and the fact that much of the greenhouse gas impact of our services is due to the actions of our subcontractors, their engagement is essential. We have started several initiatives to lower the greenhouse gas emissions from our subcontracted transports (scope 3). 2. Reduce: Implement the right mix of technologies and services to reduce CO2 emissions. Options include alternative fuels, carbon offsetting, and supply chain optimisation projects that explore possibilities of mode shift, optimal loading factors, routing, carrier selection, and innovation. 3. Collaborate: Explore collaboration projects with carriers on new technology and fuel providers. This important offering requires all components of the value chain to work together, including: • Procurement and product teams: To build awareness and capability to understand the environmental performance of our carriers. Green service offerings To improve our range of sustainable offerings, we are currently developing a set of green transport and logistics solutions, supported by several different aspects of our services. The package of services has three pillars: • Information technology: In order to be able to model and calculate the benefit of these improvements. • Commercial teams and customers: To implement and adopt the new procurement process. 1. Report: Provide accurate and timely CO2 emission reports through EcoTransIT, our Customer CO2 reporting tool which will replace our existing solution in 2021. An important component of the programme is focused on alternative fuels. We are committed to helping our customers find the right mix of fuel solutions, such as second-generation biofuels, LNG, hydrogen, and others. Three sustainability pillars: 1. Report 2. Reduce 3. Collaborate Green collaboration in action In one example of green collaboration in action, we have partnered with a major customer to provide a range of transport and logistics services and to significantly reduce the customer’s CO2 impact at the same time. Together, we have established a 2030 green logistics roadmap and prioritised initiatives based on where the most significant reductions are possible. This collaboration has four workstreams: • Optimise transport within current network setup through mode selection, consolidation, port rationalism, and packaging. • Improve logistics emission standards through carrier selection, vehicle specification and fuel type. • Optimise logistics network segmentation and performance alignment. • Challenge remaining supply chain elements through sourcing and manufacturing decisions.
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