The Green Freight Journey: Create Momentum

The Green Freight Journey is a five-step framework for freight optimization projects. Leading up to our January 14th webinar, EDF is taking a brief look at each step of the Journey.

Once you have established a Green Freight goal and defined metrics for tracking your progress, it’s time to start putting the wheels in motion. Below are some tips for taking the next step, creating momentum, in your Green Freight Journey:

  • Choose a pilot project – Select pilot projects that can be scaled up and replicated elsewhere in the organization, if successful. See our Green Freight case studies for examples of replicable pilot projects.
  • Focus on what you control – Choose a pilot project where you have direct control over the outcome. Examples here are increasing load factors or moving to intermodal from truckload. Projects that rely on the actions of suppliers, such as alternative fuel use by your contract carrier, are more difficult to execute.
  • Track results – Be sure to capture good data and use the metrics you created in step one. The data you produce will be a powerful tool in communicating the results of your pilot to employees, customers, and key stakeholders. The data will also help you identify new opportunities.

Below is an example from our Green Freight Handbook, which can help you determine which pilot project would be most impactful for your organization.

Green Freight Diagnostic

Join me on January 14 at 12PM ET for a webinar that will introduce you to the full Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

Register here today for this informative webinar.

The Green Freight Journey: Take Your First Step

The Green Freight Journey is a five-step framework for freight optimization projects. Leading up to our January 14th webinar, EDF is taking a brief look at each of the steps along the Journey.

The first step, Getting Started, is about deciding where you want to go. To do this, companies:

  • Gather internal stakeholders  such as supply chain or transportation executives, sustainability officers or EHS professionals, and an executive sponsor.
  • Define their green freight objective  such as reducing climate warming emissions or cutting fossil fuel consumption.
  • Determine key metrics – by reaching each agreement on how to objectively measure progress. A metrics-driven approach helps to keep you focused on the actions that will deliver the biggest results for the best returns.

When determining your metrics, consider these examples from the EDF Green Freight Handbook:

Metrics

Join me on January 14 at 12PM ET for a webinar that will introduce you to the full Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

Register here today for this informative webinar.

Start Your Green Freight Journey with EDF

Many leading companies are creating business value today by cutting carbon emissions from freight moves. These companies, such as Walmart, Ikea, Unilever and Ocean Spray, are following a similar path, one we at EDF are calling the Green Freight Journey, a five-step framework for freight optimization projects.

Sign up to learn more about the Journey.

Define the path. Then take a step. Then take another.

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Companies start by taking the nebulous concept of sustainability and making it mean something specific and material to their company, for example, “we are going to use fuel more efficiently." They create specific metrics to track this objective, such as product moved per gallon of fuel consumed, or emissions per ton-mile.

Next, these companies develop pilot green freight projects to test out that objective, using the metrics they chose to evaluate the projects’ efficacy. The projects that deliver financial and environmental returns are scaled up and those that don't are redesigned or scrapped.

Leaders have a critical role to play in this process as well: they create long-term improvement goals for their company’s key metrics. This enables them to focus day-to-day on continuous improvement, and it inoculates them against the siren call of “big shiny object” projects – ones that might be good for a press release but won’t move the needle on their metrics.

By taking these steps, companies advance along their Green Freight Journey, and along the way, cut costs and emissions.

Now it’s your turn.

Every company that uses the freight system to move products to market has opportunities to reduce operating costs and greenhouse gas emissions by taking a Green Freight Journey. Join me on January 14 at 12PM ET for a webinar that will introduce you to the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

During the webinar, participants will:

  • Be introduced to the steps of a Green Freight Journey and receive tips for success on each;
  • Hear real-world examples of companies that have cut emissions and costs by optimizing freight moves;
  • Review existing tools, including a green freight benchmarking survey and the EDF Green Freight Handbook; and
  • Learn how an EDF Climate Corps fellow helped Ocean Spray Cranberries identify new green freight opportunities.

Register here today for this informative webinar.

Good News for America: Cleaner, More Efficient Trucks that Protect Our Environment and Strengthen Our Economy

jason_mathers2014 is shaping up to be a great year for truck equipment manufacturers. Sales through October are running 20% higher than their 2013 levels. It’s a banner year that continues to pick-up steam. 2015 is looking even stronger, with forecasts suggesting it will be the 3rd strongest year ever for truck sales. There are several factors driving this market. Higher fuel efficiency is top among them.

This point was brought home recently by the lead transportation analyst for investment firm Stifel, who noted that “the superior fuel efficiency of the newer engines” was a key in getting fleets to buy new trucks now.

The CEO of Daimler Trucks, the leading producer of class 8 trucks for the U.S. market, acknowledged recently that their most efficient engine and transmission combination was “already sold out for 2014” and that the “demand is beyond their expectations.”

It’s not just Daimler that is having a good year.

2014 is a banner year for truck sales; and 2014 trucks are the most efficient ever.  2014 trucks are the most efficient ever because of smart, well-design federal policy.  This is the first year of the 2014-2018 heavy truck efficiency standards that will:

  • reduce CO2 emissions by about 270million metric tons,
  • save about 530 million barrels of oil over the life of vehicles built between 2014 – 2018,
  • provide $49 billion in net program benefits.

The 2014-2018 heavy truck fuel efficiency and greenhouse gas program demonstrates that climate policy benefits businesses, our economy, and human health, while also cutting harmful climate pollution.

Or, as Martin Daum, president and CEO of Daimler Trucks North America noted, these standards “are very good examples of regulations that work well.”

In its first year of existence, the 2014-2018 fuel efficiency and greenhouse gas program is boosting sales for manufacturers, reducing operating costs for fleets, and cutting climate pollution for all of us. It is clear that well-designed federal standards can foster the innovation necessary to bring more efficient and lower emitting trucks to market.   That is very good news, because we have an opportunity to further improve and strengthen these standards – creating more economic and environmental benefits in the process.  For this, we all can be thankful.

General Mills selects United Suppliers to increase fertilizer efficiency in the field

SUSTAIN-logo_circle_4c-300x300Isn’t it nice when somebody steps forward boldly to do the right thing and is rewarded for doing so? General Mills did just that for United Suppliers and the SUSTAIN platform, which will help farmers improve nitrogen use efficiency and productivity.
In July, General Mills put out a call for proposals to help the company meet increased production needs in ways that contribute to cleaner air and water.

It was almost like a future posting in sustainability want ads: “General Mills, a 17+ billion dollar food company, has the following need: Seeking best practices in nitrogen fertilization (nitrogen optimization) technologies for sustainable agriculture.”

The company recognized the pressing need to limit nutrient losses while also helping farmers produce more of the wheat, corn, soybeans and other crops it needs to make the products we buy.

And the winners are….

United Suppliers got the nod with its SUSTAIN platform. As I blogged earlier this fall, United Suppliers has really stepped out front with this platform, recognizing the growing  sustainability demands from retailers and food companies as a real business opportunity. They knew they were taking a risk when they reached out to Environmental Defense Fund last spring for help in developing a program to meet the changing needs of the supply chain.

If they built this program, would anyone care? Would their owner retailers sign up to implement the program? Would food companies want to use it?

Well, we still have a long way to go. But the signs are good, and this success with General Mills is a big step forward. General Mills saw the huge value in SUSTAIN, which includes nutrient use efficiency and soil health technologies, practices  and products, as well as the extensive training and implementation infrastructure needed to take it to scale.

The other winner of the General Mills competition was Adapt-N, a breakthrough nitrogen use efficiency platform that is also included in SUSTAIN.

Ramping up

This winter will be very busy with grower meetings and trainings for the agronomists and owners of participating ag retailers and cooperatives, as well as deployment of the robust data platform needed to maximize value back to the ag retailers and growers and aggregate data for supply chain reporting.

We are very excited to see SUSTAIN become part of General Mills’ work to meet its goal of being 100 percent sustainably sourced by 2020 for its 10 priority ingredients. These ingredients – corn, oats, wheat, dairy, fiber packaging, cocoa, vanilla, palm oil, sugar cane and sugar beets – represent half of the company’s total raw material purchases.

The commitment builds on the company’s sustainability mission to conserve and protect the resources upon which its business depends. Currently, General Mills has five regional sustainability engagements for commodity crops using the Field to Market continuous improvement framework , and it will deploy SUSTAIN and Adapt-N across these regions.  These programs will support General Mills’ primary purpose in advancing agriculture sustainability and grower profitability.

This post was originally published on EDF's Growing Returns blog.

The Supply Chain Word of 2014: Omnichannel

As we head into the last months of 2014 – and more importantly, the holiday season — I'm ready to make my nomination for the "word of the year." And no, it’s not “salmon cannon,” “bromance,” or others proposed by John Oliver or Stephen Colbert. The word supply chain and sustainability leaders should take away from 2014 is omnichannel.Omnichannel diagram

At its core, omnichannel is an approach to retail that aims to deliver a holistic shopping experience that integrates in-store and online platforms, combining the supply chain of brick-and-mortar stores and e-commerce. It recognizes the staying power of each, the expectation of the customer for consistent prices across platforms and the ability to choose how, when and where to receive his/her purchases.

Folks that make a living thinking about how to allocate and where to place inventory have been using the word for a few years. In 2014, though, omnichannel crossed the chasm from being wonky, industry-speak to being a mainstream business concept – covered recently in USA Today – and a core aspect of competing in the digital age.

Which brings us to an important question: what are the environmental implications of omnichannel retailing?

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Leadership on Sustainability Must Include Helping Shape Smart Policy

This past year, we’ve seen some bold action by companies in what we’ve dubbed the business-policy nexus, and it’s taking several different forms. Some have been calling for state or federal action on environmental impacts, while others are taking far-reaching voluntary efforts that could help support policy advocacy in the future.

Whether you view engagement on public policy as risk mitigation, providing market certainty, supporting corporate sustainability goals or securing competitive advantage, leading businesses are increasingly stepping up their efforts to support smart policy reform that will benefit the environment and economy.

Keeping toxic chemicals out of supply chains

Walmart shopper

Walmart and Target are moving to proactively get harmful chemicals out of their supply chains, even though the nation’s main chemical safety law, the Toxic Substances Control Act (TSCA), is outdated and hasn’t been reformed in nearly two decades.

Earlier this year, our long-term partner in this area, Walmart, took a big step forward by announcing a new sustainable chemicals policy focused on cutting 10 chemicals of concern from home and personal care products it sells. Chemicals of concern – for example, formaldehyde, a known carcinogen – have been found in about 40% of the formulated products on Walmart shelves, including things like household cleaners, lotions and cosmetics. Read more

New Report Supports Jurisdictional Approaches to Ending Deforestation in the Amazon

Andrew Hutson EDFThe world’s attention has been on Brazil lately.  With an exciting World Cup this past summer, an election season full of drama (including a plane crash), and the coming Summer Olympics in 2016, it has been easy to overlook the piece of news that has the greatest impact on all of our lives: the remarkable decreases in rates of deforestation in the Amazon.  With little fanfare (at least from the general public), deforestation decreased 70% since 2005 and Brazil has become the world leader in reducing greenhouse gas pollution.

But while this progress impressive, it is important to note that we’re still losing over 5,000 square kilometers of forest a year in the Amazon. More importantly, we’ve seen a slight uptick in the rate of deforestation over the past two years, with an increase of 29% from 2012-2013. That number looks likely to increase again this year.

As the number of companies, governments, NGOs, and indigenous peoples who signed the New York Declaration on Forests last month demonstrated, there is an eagerness to address this issue across all sectors of society. Among other goals, signatories to the Declaration seek to halve the rate of loss of forests globally by 2020 and end natural forest loss by 2030. To get there, we need a scalable and systematic approach to meet this ambitious, yet achievable goal. EDF believes one solution is the creation of Zero Deforestation Zones (also referred to as jurisdictional approaches) – nations or states that are able to demonstrate reductions in deforestation within their borders as the most effective way to save forests the scale of entire landscapes, rather than individual parcels of land.

A new report by Datu Research, Deforestation in the Brazilian Beef Value Chain, supports this notion.

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Gaining Momentum for Optimized Fertilizer Use in Agriculture

Jenny AhlenIn 2013, Walmart launched an initiative with the potential to optimize fertilizer use on 14 million acres of U.S. farmland by 2020. This was a great step in the right direction for reducing greenhouse gas emissions and water pollution by improving nitrogen fertilizer use. Momentum on this work grew in April when Walmart suppliers including Cargill and General Mills stepped up and made joint agricultural commitments at Walmart’s Sustainable Product Expo.

Now, a little over a year since this work kicked off, it’s great to see another major boost of momentum. On Monday, Walmart hosted their fall Milestone meeting, which included an announcement from United Suppliers to join the fertilizer optimization work – committing to enroll 10 million acres by 2020.

This is a big deal for two reasons. First, this commitment is significantly larger – more acres – than any other we’ve seen so far. Second, this is the first time a major agricultural retailer has joined this initiative.

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Quiet But Admirable Commitments to End Deforestation

Andrew Hutson EDFIf you saw the news that there was a UN Climate Summit this week, but haven’t followed it closely, you might well assume that nothing substantive happened.  You can certainly be forgiven for thinking so – there was a lot of pomp and lofty talk (this is the UN after all), and no global treaty was signed (although none was expected). Below the surface, however, quiet momentum for key policy actions was built. And even quieter, but yet potentially more exciting, commitments were made. Chief among these was news that global agriculture giant Cargill committed to ending deforestation across all commodities in its supply chain as part of the New York Declaration on Forests.

This is a big deal.

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