Freight Sustainability Strategies: How to Get the Most From Every Truck Move

It’s no secret that better trailer utilization reduces the number of required freight runs. Fewer trucks on the road means lower freight costs and reduced greenhouse gas emissions – an excellent freight sustainability strategy.

Despite the obvious benefits, recent research from Cnergistics has determined that 15 to 25 percent of the trailers on U.S. roads are empty. For the non-empty miles, these trailers are 36 percent under-utilized. Capturing just half of this underutilized capacity would cut emissions from freight trucks by 100 million tons per year – about 20 percent of all U.S. freight emissions – and reduce expenditures on diesel fuel by more than $30 billion a year.

Source: Homayoun Taherian, Cnergistics, LLC

Source: Homayoun Taherian, Cnergistics, LLC

If you’re serious about pursuing freight sustainability strategies, load optimization is a good place to start.

Following are just a few examples of load optimization strategies in action. More can be found in EDF’s Green Freight Handbook – a practical guide for developing freight sustainability strategies for business. Read more

Behind the Label: How Business Sees Opportunity in Safer Chemistry

Behind the Label_FTens of thousands of chemicals are used to make the numerous products we use every day, yet regulatory oversight of the health and safety of these chemicals is severely lacking. Research has detected a number of these chemicals in our environment, homes, and bodies. At the same time, research has also linked a number of chemicals to disorders and disease such as asthma[1] and cancer[2]. Consumer concern is growing. With major retailers like Walmart, Target and CVS making public commitments to reduce the use of hazardous chemicals, chemical manufacturers and consumer product companies are hearing loud and clear the need for stronger policy solutions and market demand for safer chemical innovation.

EDF developed these case studies to highlight examples of innovative chemistries developed in response to demands for safer chemical ingredients in consumer products. The efforts of a leading brand and a chemical manufacturer – two ends of the consumer product value chain – are provided here.  We explore the motivation behind their product innovations and reformulations, what the innovations allowed the companies to achieve, and the impact of these innovations on their business and sector. These are not endorsements but rather an exploration of how companies are approaching safer chemistry innovation.

What We Discovered

A number of interesting results emerge from these case studies:

  1. Products designed to better protect human health can be economically successful.
  2. There is more than one way to resolve the same problem.
  3. Getting innovations to the market requires cooperation across the supply chain. Sometimes it requires external forces to set the right marketplace conditions.
  4. Reformulations can be cost-neutral despite changing suppliers and/or processing facilities.

A Snapshot of Each Case Study

 

akzonobel

AkzoNobel

In this case study we look at chemical manufacturer AkzoNobel’s work to create ingredients that have improved human health and environmental profiles. We learn how regulatory developments aided in the commercialization of AkzoNobel’s Dissolvine as a phosphate-free chelate in automatic dishwashing detergent. AkzoNobel collaborated with its customers and sought input from regulators to develop testing methods to examine Dissolvine’s biodegradability and human health profile. For the full case study, click here.

7th genSeventh Generation

In this case study, we learn about Seventh Generation’s work to replace a common surfactant used in cleaning products, Sodium Laurel Ether Sulfate (SLES). Production of SLES generates the contaminant 1,4 dioxane, a probable human carcinogen[3], that is then transferred to products. Seventh Generation succeeded in replacing SLES with the non-ethoxylated surfactant Sodium Laurel Sulfate (SLS), which is not accompanied by the 1,4 dioxane contaminant. Seventh Generation’s efforts resulted in a better-performing product and maintained sales. After launch and continued public concern about 1,4 dioxane, competitors of Seventh Generation announced  their own plans to reduce 1,4 dioxane in their products. For the full case study, click here.

We will be updating our Behind the Label series of blogs and case studies in the coming months and we invite you to join in the conversation.

 

[1]Bornehag CG et al. 2004. The association between asthma and allergic symptoms in children and phthalates in house dust: a nested case–control study. Environ Health Perspect 112:1393–1397.
[2]Huff J (2007). "Benzene-induced cancers: abridged history and occupational health impact". Int J Occup Environ Health 13 (2): 213–21.
[3] See National Toxicology Program, International Agency for Research on Cancer, and U.S. Environmental Protection Agency

How to Use EDF's Green Freight Diagnostic Tool

There are many ways to reduce freight-related greenhouse gas (GHG) emissions. But which strategies make the most sense for you?

EDF’s Green Freight Handbook provides a framework to help you answer this question based on what initiatives will achieve the greatest environmental benefit in the least amount of time. The key is our Green Freight Diagnostic Tool.

Here’s how it works.  We focus on EDF’s five key principles for greener freight:

  1. Get the most out of every move
  2. Choose the most carbon-efficient mode
  3. Collaborate
  4. Redesign your logistics network
  5. Demand cleaner equipment and practices

For each key area of potential, we list a series of simple questions designed to help you determine which strategies are the low-effort, high-return opportunities. You’ll need some data in order to answer the questions, but it’s a pretty easy exercise to start moving down the path toward a cleaner, lower-cost freight program.

Here’s a small sample from just one of the green freight diagnostic sections, "Get the most out of every move." As you can see, it explains the opportunity and allows you to measure the potential impact at a high level.

QuestionOpportunityPotential Benefit
Can your customers be flexible about arrival dates to enable freight consolidation?With a transportation management system or TMS, companies can identify opportunities to hold orders for consolidation. Where feasible, and with the right incentives, companies can then send one larger shipment to customers instead of sending two smaller ones.Reduction of product shipping volume by up to 30 percent.
Have you recently analyzed opportunities for balancing high density and low density products?If no, explore how you might be able to better balance weight and cube constraints. Options include matching internal freight or co-loading with a company with a similar need and transportation lanes.20-30 percent net reduction in process and resource costs.
Can you side load your pallets 90 degrees when loading them on the truck?Explore the feasibility of side loading pallets to enable the loading of more cargo per truck. This will be feasible only for fleets that cube out, but do not weigh-out. This approach will require changes to pallet construction and loading.8-15 percent increase in truck productivity.

That’s just a small sampling.  Each of the five sections provides a comprehensive diagnostic assessment tool. Download the Green Freight Handbook to access the tool.

GF-Handbook-CTA

Pioneering a Portfolio Approach to Water Management with Walmart

By Kellen Utecht, Director of Sustainability, Phigenics

“Nothing is more useful than water; but it will purchase scarce anything; scarce anything can be had in exchange for it.” — Adam Smith

With California facing its worst drought conditions in its history, toxic algae blooms in Lake Erie, and water costs rising 33% since 2010, water’s value – both its actual costs and our perception of it – has been transformed since Adam Smith’s time. Companies today have a vested business interest in managing their water consumption. Since 2011, businesses globally have invested $84 billion dollars in water management projects.

logo-walmartGiven that water for cooling makes up a significant portion of a building’s water use, adopting a portfolio approach to cooling water management program is one way companies can make meaningful impacts in reducing water consumption and improving energy efficiency.

Phigenics, an independent water management company, works with leading companies in diverse industries such as healthcare, universities, hospitality and retail to optimize water use in the built environment. In one powerful example, Walmart – with a portfolio of stores spread across the United States – made significant reductions in its water use and utility expense by implementing such a program. Read more

Where You'll Find Us in May (Conferences of Interest)

Where You'll Find Us in May/early June:

Look for us at these conferences – and let us know if you’ll be there so we can watch for you as well!

Why the Food Movement is Alive and Well

silverware 2 up closeMark Bittman’s recent New York Times op-ed, “Let’s Make Food Issues Real,” is a grim assessment of the current state of the food movement – in fact, he questions whether a food movement exists at all.

Bittman states that the lack of major change to government food policies means the food movement is not winning. “I’ll believe there’s a food movement when Hillary Clinton and Jeb Bush are forced to talk directly about food issues,” Bittman writes.

I’ll take that bet. With the drought in California threatening the nation’s produce and the other impacts climate change pose to our food supply, I think it’s likely that the next group of presidential candidates will discuss food issues on the campaign trail.

But even if politicians take up the banner of the food movement, new legislation should not be the sole indicator of success. Food companies are increasingly making changes to their products, practices, and sourcing in response to consumer demand. State policies and federal agency priorities are also shifting. Read more

How Institutional Commitment Translates to Safer Products

Behind the Label_FSuccessful business outcomes require strong and continuous commitment and support from company leaders. As with any change initiative, modifying how a manufacturer selects the ingredients it uses or how a retailer selects products requires time and resources, and infrastructural and behavioral adjustments. In our previous blog in this series, we identified five 'pillars' that are critical to attaining industry leadership on safer chemicals.

The first pillar, Institutional Commitment, is essential in ensuring leadership support for business transformation.

Institutional Commitment to safer chemicals frames a company’s journey, builds internal champions, and sets accountability for the journey at every level of the organization. In a committed company, action ripples throughout the organization; company executives set top-level goals that are reinforced by middle management in a way that empowers employees in every business function to make the transformation successful through their own daily operations. It’s about true integration of the new safer chemistry philosophy into everyday business. Read more

Bank of America Votes for Renewables with Its Very Large Wallet

bank-of-america-logoA company’s public statements matter– they can influence consumer choice, sway public policy decisions and demonstrate leadership on important issues. But in terms of actual change, it’s where a company puts its money that really matters. This week, Bank of America spoke with both its voice and wallet: At its shareholder meeting last week, the bank announced a new coal policy that continues the company's commitment to reducing its exposure to coal extraction companies and accelerating the transition from a high-carbon to a low-carbon economy.

According to BoA, its portfolio has grown to favor renewable energy over coal by a ratio of more than three-to-one. That’s an important step forward toward a clean, low-carbon energy future. And, it’s one that builds on moves by other institutions, like the recent news from Goldman Sachs about how the company is looking to divest some of its mining interests and Citi’s recent 10-year, $100-billion commitment towards investments in areas like energy efficiency, renewable energy, green affordable housing and climate change resiliency projects.

Tom Murray, VP Corporate Partnerships, EDFInvestors are seeing the terrain change beneath them – from upcoming regulations like the EPA’s Clean Power Plan and federal regulations on methane emissions from the oil and gas sector, to consistently lower natural gas prices, which undercut coal’s prior price advantage over other power sources – and beginning to bet on a future that’s powered by lower-carbon options.

More of this type of corporate leadership, including metrics and timelines, is what's needed to help make the leap from today’s polluting energy system to tomorrow’s thriving, clean energy future.

Further reading:

Walmart, General Mills and Anheuser-Busch Make Greening Freight a Priority

green freightSpring is high season for corporate responsibility reports, with some of the world’s most recognizable brands — including Kellogg’s, Walmart, Anheuser-Busch, Apple, Adidas, General Mills, H&M, Lowes, CVS and Hershey’s — releasing their latest updates. While each company has its own unique sustainability challenges and priorities, every one of them has a global supply chain that requires an extensive logistics network to move goods from manufacturing facilities to end customers.

What reading these reports told me is that greening freight operations is becoming a key priority for these companies, with three trends in particular standing out to me:

1. Tracking logistics emissions is a standard practice. Seven out of the ten recently released reports included data on fuel use or greenhouse gas emissions associated with freight transportation. Several companies were tracking only emissions from outbound freight transportation, presumably because of a lack of visibility into inbound moves. Adidas, one of the three that did not include information on emissions or fuel use from freight movement, did include a detailed breakdown of moves by transport modes and emissions from distribution centers and other facilities.

2. Setting performance goals is a well-accepted practice. Four of the ten companies have performance-based goals to improve environmental impact associated with freight transportation. For example:

  • Walmart is seeking to double its fleet efficiency compared to 2005, and is currently 87% of the way to meeting this impressive goal.
  • General Mills has a goal to reduce fuel use for its outbound moves by 35% compared to its 2005 consumption. The company has made considerable progress too, reducing fuel use by 22% compared to 2005.
  • Anheuser-Busch set a goal in 2014 to reduce greenhouse gases from its global logistics operations by 15% per hectoliter sold. Its goal has a broad scope too, including inbound and outbound transportation as well as warehousing.

3. Seeking to shape external factors is a leadership practice. Much of the impact of moving freight is beyond the operational control of these companies. They have limited influence on the availability of low-impact fuels, the efficiency of freight equipment or the capacity of intermodal systems. In addition to focusing on the factors freight shippers can control, leading companies are trying to shape the overall system to provide more low-impact choices. Read more

3 Climate Leadership Openings Corporate America Can't Afford to Miss

Too much ink has been spilled on the anti-climate furor of the Koch brothers. If we lose on climate, it won’t be because of the Koch brothers or those like them.

It will be because too many potential climate champions from the business community stood quietly on the sidelines at a time when America has attractive policy opportunities to drive down economy-endangering greenhouse gas emissions.

Corporate executives have the savvy to understand the climate change problem and opportunity. They have the incentive to tackle it through smart policy, and the clout to influence politicians and policy makers. Perhaps most importantly, they can inspire each other.

And today, they have a chance to do what they do best: lead. Corporate climate leadership has nothing to do with partisanship – it’s ultimately about business acumen.

For starters, here are three immediate opportunities smart companies won’t want to miss.

1. Clean Power Plan: Will spur new jobs and investments.

The Obama administration’s plan will cut emissions from coal plants by 30 percent by 2030. This is expected to trigger a wave of clean energy investment and job creation. It will also seize energy efficiency opportunities and take advantage of America’s abundant and economic supply of natural gas.

Every company with an energy-related greenhouse gas footprint has something to gain from a cleaner power mix. Each one of those companies therefore has a stake in the Clean Power Plan.

Google and Starbucks – two large and profitable American companies by any standard – are among more than 200 businesses that have already stepped up to voice their support.

Who will follow them?

2. First-ever methane rules: Will make industry more efficient.

The U.S. Environmental Protection Agency’s upcoming methane emission rules are another opportunity for business leaders to weigh in.

The rules are part of a White House plan that seeks to reducemethane emissions – a major contributor to global warming and resource waste – by almost half in the oil and gas industry.

Globally, an estimated 3.6 billion cubic feet of natural gas leaks from the sector each year. This wasted resource would be worth about $30 billion in new revenue if sold on the energy market.

Some oil and gas companies that have already taken positive steps include Anadarko, Noble and Encana, which helped develop the nation’s first sensible methane rules in Colorado.

Engaging to support strong and sensible national standards isa good next step for companies in this space. And for others with a stake in cleaning up natural gas, such as chemical companies, and manufacturers and users of natural gas vehicles.

Climate solutions with a big impact

3. New truck standards: Can help companies cut expenses and emissions.

New clean truck standards are scheduled for release this summer. Consumer goods companies and other manufacturers stand to see significant dollar and emissionsavings as they move their goods to market.

Cummins, Wabash, Fed Ex, Con-Way, Eaton and Waste Management are among those that applauded the decision to move forward with new standards.

Putting capitalism to work

American business leadership is still the global standard and will remain so if it adds climate policy to its to-do list. While it will take time to build the bi-partisan momentum for comprehensive national climate legislation, there are immediate opportunities to move the needle.

Which companies will take the field?

This post originally appeared on EDF Voices.

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