Sustainability in transport: Transporeon acquires Tracks

Transporeon, a leading Transportation Management Platform, announced today the acquisition of Tracks, a Berlin-based start-up with the mission to decarbonise the transport industry. Founded in 2018, Tracks is a carbon visibility tool providing data solutions to monitor and manage carbon emissions across all transport modes. To do this, the company uses AI-based analytics and prediction tools to enable shippers, carriers and logistics service providers to collect and optimise emissions data at source.

Transporeon has made it its mission to lead the way in sustainability in the transport industry. The company has stepped up its investments over the past 12 months to pave the way to climate-neutral commercial transport. In early 2022, Transporeon launched its Carbon Visibility Solution as the tool of choice to precisely measure and report on CO2 emissions across the entire supply chain and all transport modalities.
In 2021 Transporeon entered into a partnership with EcoTransIT, a long-standing expert in the calculation of greenhouse gas emissions. EcoTransIT focus on a high-end, bottom-up calculation based on granular, science-driven industry default values. Adding Tracks’ expertise in the use of primary data to calculate emissions perfectly complements this existing partnership.

With Transporeon’s acquisition of Tracks coupled with its existing partnership with EcoTransIT, its customers will benefit from an enhanced offering that allows them to set realistic CO2 reduction targets, for themselves as well as their suppliers and customers, and define improvements against those targets. This combined carbon visibility capability is unique and offers the most accurate insight into emissions available on the market thus enabling customers access to an ever more detailed and actionable calculation. The combination of primary data with default calculations delivers insight into fuel or energy type and corresponding consumption which is critical to implementing measures to reducing one’s footprint.

“We are excited to welcome the Tracks team to Transporeon. Combining Tracks ‘know how’ about primary data and their AI based analytics capabilities with our existing carbon visibility solution will provide added value to all customers in our network”, says Stephan Sieber, CEO of Transporeon. “Tracks has built a strong product facilitating automated emissions management.”

“Transporeon’s acquisition of Tracks will have an immediate impact on the entire freight transport ecosystem,” said Tracks CEO, Jakob Muus. “Transporeon’s ‘move, manage and monitor’ dovetails perfectly with Tracks’ ‘measure, manage and mitigate,’ and the union will further empower companies worldwide to meet their sustainability targets by giving freight transport buyers and sellers the tools to become greener and more efficient. I am looking forward to Tracks becoming part of the Transporeon family.”

Digitisation of supply chain continues to be a driver to bring transportation in sync with the world. Sustainable initiatives such as carbon visibility calculation, tracking and reduction is a key factor in this ongoing quest. In this context, the acquisition of Tracks is a logical addition to Transporeon’s Carbon Visibility solution with the goal to benefit all parties in the network to Net Zero Logistics.

SSI Schaefer publishes first Sustainability Report

The SSI Schaefer Group, a Germany-based family-owned company established more than 85 years ago and a leading international solution provider of modular storage and logistics systems, today published its first Sustainability Report. The report was prepared on the basis of the internationally recognized standards of the Global Reporting Initiative (GRI). The company thus implements its 2023 SSI Strategy Roadmap, which defines sustainability as one of six focus topics.

Sustainability has two dimensions for SSI Schaefer, i.e. responsible operation along its own value chain and promoting the sustainability of its customers by offering them innovative and future-proof technologies.

“Our first Sustainability Report is intended to give our stakeholders an insight into the sustainable initiatives, projects and solutions we are pursuing already today, our major challenges in the relevant action areas in the coming years, and how we plan to master them,” says Steffen Bersch, CEO of the SSI Schaefer Group. “As the backbone of the globally growing e-commerce industry, we can help our customers make their material flow even more efficient and sustainable by offering them intelligent intralogistics solutions.”

Based on a comprehensive analysis of its business environment, which also involved the main stakeholders of the group of companies, SSI Schaefer has defined four action areas in accordance with its corporate strategy:
1. Value-oriented corporate culture as a foundation for the dealings with stakeholders and resources
2. Using intelligent processes to create innovative and sustainable solutions for customers
3. Responsible management by reducing impacts along the own value chain
4. Sustainability management as a strategic factor (process-oriented action area)

In each action area, SSI Schaefer has set itself specific goals based on measurable performance indicators or initiatives with clearly defined deadlines. This is to make the process as transparent as possible to all stakeholders. The report covers the entire basis of consolidation and, as a first step, records the performance indicators of the 18 largest entities, which represent more than 80% of revenues.

Specific goals defined with regard to a value-oriented corporate culture include, for instance, the development of a strategic EHS (environment, health and safety) management system or the definition of global KPIs for the Group’s safety performance. A strategic goal in the field of product development is to reduce the share of pneumatic products of selected product ranges, which are not very energy-efficient, to 5%. With regard to the value chain, SSI Schaefer wants to base its supplier management much more strongly on sustainability criteria; by 2023, at least 50% of the top 100 suppliers are to be subjected to sustainability audits.

As far as the Group’s carbon footprint is concerned, the calculation for the 18 largest entities is underway (Scope 1 & 2), with the aim of publishing a carbon/climate strategy for the SSI Schaefer Group by the end of 2022.

To implement the topics in the Group, SSI Schaefer has installed a Global Sustainability Council (GSC) led by Heiko Stötzel, Head of Group Social Responsibility & HSE, which coordinates control and target tracking across business units, regions and Group functions.

“Unlike large capital market-oriented corporations, our Group is not yet obliged to publish sustainability reports but does so voluntarily,” Steffen Bersch adds. “But to us, this is more than just complying with legal requirements. As a globally active group of companies, we want to show the way forward, live up to our social responsibility and continuously increase our contribution to achieving the climate targets as well as the Sustainable Development Goals of the United Nations. This is why we joined the ‘50 Sustainability & Climate Leaders’ initiative back in 2020 as the first member of the intralogistics industry.”

Co2 Emissions in Air Freight: Know your Aircraft

The accurate measurement of CO2 emissions in air freight is becoming increasingly important – but they differ strikingly depending on the aircraft type. With the BlueBox Systems platform, in addition to real-time tracking and analysis of air freight data, aircraft type-accurate CO2 emissions are now available. Consequently, supply chains can be compared and optimized not only on the basis of time and performance, but also with regard to their CO2 impact.

Next year, companies in Europe with sales of more than €40 million or 250 employees will have to disclose their carbon footprint annually. This also includes the extent to which their own goods were transported internationally. For this reason, it is important for these companies as well as for the contracted logistics company to be able to document exact values of CO2 emissions. However, these values vary enormously depending on the cargo aircraft. For example, a Boeing 737-400 with 1t of cargo produces a good 10t of CO2, whereas a Boeing 777 produces only 4t on a distance from Frankfurt to San Francisco.

So the choice of aircraft plays a key role in calculating CO2 values for air cargo. And since many airlines are now successively modernizing their fleets, companies now have the opportunity to have their freight shipped with optimized CO2 emissions. But BlueBox Systems takes it one step further: through its partnership with the non-profit organization myclimate, one of the quality leaders in voluntary CO2 offsetting measures worldwide, the CO2 emissions generated can be directly offset again.

“We have received extremely good feedback on our CO2 feature at conferences in San Francisco and Athens, among others. Currently, the calculation of CO2 emissions based on the freighter model used hardly takes place – but it is more than necessary,” emphasizes BlueBox Systems CEO Martin Schulze. “What makes BlueBox Systems so unique in this context is the integration into our Real-Time Visibility platform. This means that supply chains can now also be compared and selected in the context of the CO2 emissions produced in the process.”

BlueBox Systems makes it possible to monitor airfreight in real time. What was previously a black box, now becomes transparent. The individual stations of the air freight on its way to its destination can be tracked in real time. The shipper knows where the shipment is and can provide information about the estimated time of delivery at any time. The recipient can take care of further planning in advance and thus avoid costly delays and damage.

Sustainable Solutions: Cleaner Alternative to Red Diesel

In June 2019, the UK became the first major economy in the world to pass laws guaranteeing an end to its contribution to global warming by 2050, requiring the UK to bring all greenhouse gas emissions to net zero by this date. This will inevitably have an impact across industries and companies as they start to research and deploy new solutions to fall in line with government targets. To meet its ambitious goals, the government will introduce several initiatives over the coming years, so organisations must prepare now – not just to support global warming reduction efforts, but also reduce their costs and reap the resulting productivity benefits. Alexander Baal, Directors Sales Operations, Jungheinrich UK Ltd., explains how Lithium-Ion battery technology in the material handling industry will be an instrumental solution in supporting the government’s aggressive environmental targets, while also delivering valuable productivity gains.

Reducing red diesel

Part of the government’s initiative to tackle climate change and improve the UK’s air quality involves changing laws around the use of red diesel. From April 2022, the government plans to remove business entitlement to use this type of fuel, except for agriculture, rail and non-commercial heating. At present, businesses gain a significant benefit from using red diesel, paying a duty of just over 11p per litre, compared to almost 58p per litre for using white diesel. At Budget 2020, the Chancellor, Rishi Sunak brought attention to the fact that the sectors using red diesel are some of the biggest contributors to polluting air quality and the red diesel scheme was essentially “a tax relief on nearly 14 million tons of carbon dioxide every year.”

Despite calls by a coalition of construction trade bodies for an extension on the abolishment of red diesel to at least 2023 to allow for time for economic recovery after the pandemic, the fact remains that red diesel has a detrimental impact on the environment. In order to achieve the UK’s climate change goals, businesses will inevitably need to adapt to using cleaner sources of energy. Many will therefore need to overhaul their diesel equipment and consider more energy efficient power alternatives, such as Lithium-Ion. Addressing these issues now will increase efficiency and sustainability in the long-term, preventing any damage to business operations and ensure continuity.

A cleaner alternative for MHE

Separate to the plans around red diesel, research by Calor found that 38% of forklift users are facing pressures to reduce their carbon emissions, and although 54% of those surveyed recognised that carbon reduction was a very important consideration, there were other priorities ahead of this. Above carbon concerns were cost, fuel efficiency, machinery downtime, security of supply and level of customer service from the fuel provider.

Lithium-ion batteries offer many operational and commercial benefits compared to diesel or gas-powered trucks or even lead-acid batteries. Increased efficiency and reliability is achieved as Lithium-ion delivers energy for multiple shift applications without the need for battery changes, due to its rapid charging times and the possibility of opportunity charging during short breaks. Additionally there is a very small drop in remaining capacity experienced over the entire lifecycle of the battery. Savings are made as no maintenance is required and no period of battery resting is needed after each charge. During the recharge process, less energy is wasted as heat, thus saving money, and during the truck’s operational shift, energy is harvested through direction changes and braking – resulting in lower energy costs.

An electric forklift may have a higher initial cost than its diesel or gas counterpart, however, it also benefits from lower maintenance costs as fewer service items are involved. This means the total cost of ownership can be significantly lower, especially when considering the stability of the price for electricity compared to red diesel.

Not only does Lithium-ion prove cost effective with the added benefit of having rapid return on investment (ROI), but it has the ability to support most 24×7 logistics operations with its fast charging capabilities, meaning operators won’t need to be concerned about machinery downtime.

Conscious compliance

Sustainability is key to the future of the industry and protecting the planet. The government will continue to introduce schemes, such as the impending red diesel initiative, to reduce carbon emissions in order to meet its targets and protect the environment – but the compliance of industry is essential to achieving this.

Organisations have the opportunity to proactively prepare for a sustainable future and not be caught off-guard. While it may seem like a significant undertaking to upgrade materials handling equipment, there are solutions available now that can support this shift in addition to delivering significant cost, efficiency and productivity benefits. Not only does the changing legislation around red diesel provide companies with the perfect opportunity to act, employing Lithium-Ion as an energy-efficient solution will also protect organisations against future legislative changes and work towards a more sustainable future, while ensuring business productivity and success.

IRU ‘Eco-truck’ Plan to Accelerate De-carbonisation

IRU has renewed calls to promote the use of Eco-trucks to boost transport de-carbonisation, including harmonising rules for cross-border operations. This simple and cost effective measure could cut CO2 emissions by more than 13 billion tonnes between now and 2050.

Eco-trucks, which carry more goods than standard vehicle combinations, offer a quick and workable solution to meet ambitious decarbonisation targets. Two Eco-trucks carry the cargo of three standard trucks, instantly cutting the number of trucks on the road. Fuel consumption per tkm is reduced by up to 35%, considerably improving the environmental and economic efficiency of goods road transport.1

“The benefits of Eco-trucks are clear, with significantly lower CO2 emissions as well as higher efficiency and reduced costs,” said IRU Secretary General Umberto de Pretto. “The clue is in the name – Eco-trucks are ecological and economic.”

Replacing just 30% of the global truck fleet involved in regional and long haul operations with Eco-trucks would immediately cut CO2 emissions by 237 million tonnes annually.2 With goods road transport set to triple by 2050, this increases to 700 million tonnes annually by 2050. Over the next three decades, this would cut total CO2 emissions by up to 13.5 billion tonnes. By comparison, current total global man-made emissions stand at 36 billion tonnes annually.4 Although goods road transport emits only 2% of global emissions, the widespread use of Eco-trucks would have an enormous impact on the sector’s drive to decarbonise.

Greener multi-modal logistics

Ever greater volumes of goods are being moved by air, sea and rail, and every multi-modal operation involves road transport at some point. Given the continuously increasing capacity of container ships, cargo planes and freight trains, Eco-trucks are crucial to increase the efficiency and sustainability of multi-modal logistics as a whole. Modal shift will not do this.

Eco-trucks have only been operated in 18 countries so far, including Australia, Argentina, China, Mexico, South Africa, the USA and some EU countries – in all cases successfully. Their use worldwide however remains hampered by a lack of harmonised regulations and hence cross-border operations with Eco-trucks remain rare. With many governments yet to recognise their potential, IRU is calling on policymakers to unlock the full environmental and economic benefits of Eco-trucks by permitting and promoting their use for national and international operations.

“Governments are missing an opportunity to accelerate decarbonisation and support economic growth. The time to act is now,” concluded Umberto de Pretto.

IRU members adopted an Eco-truck position in November last year, as part of the industry’s efforts to drive decarbonisation, with a clear call to governments. An IRU Eco-trucks flyer is also available.

New Zero Targets Drive RTP Demand

RTP is in increasing demand, driven by brands and retailers needing to meet Net Zero carbon targets, reports Paul Hamblin.

Schoeller Allibert says it has seen an upsurge in demand for its returnable transit packaging (RTP) as brands and retailers face increasing pressure to meet Net Zero carbon targets and drive sustainability within their markets and supply chains. As efforts to become carbon neutral accelerate, those in the FMCG sector are scrutinising every aspect of their operations and processes, from product innovation to logistics, to reduce their environmental impact while maintaining efficiency and security of supply.

Schoeller Allibert is a European market leader in the production of recyclable, reusable and returnable transit packaging. It has used this upward momentum to shape its product range, including the recently launched Maxinest E-tail and Maxinest Evo family of products, which includes new and upgraded versions of its pioneering Maxinest container for the grocery and supermarket retail sector. The new range of products includes the addition of features to enhance performance in automated warehouses, Click & Collect and home delivery environments.

Jon Walkington, Retail and Systems Integrator Sales Director at Schoeller Allibert UK, comments: “As part of the UK’s commitment to reducing the impact of climate change and making British industry carbon neutral, the Net Zero drive is shaping how day to day operations are carried out. With ‘Net Zero’ Targets Drive RTP Demand the current target to achieve Net Zero being 2050, and many calling for action sooner, it is likely to be a key industry driver for some time to come.

“Very early on, brands, packaging and retailers understood that reaching carbon neutrality couldn’t be done purely by changing products, ingredients and components – global supply chains are too complex for that. Instead, we look further up the process to find additional sustainability gains in terms of efficiency and reduction of waste.

“We have seen the drive first-hand from our position as the leading RTP supplier in Europe. When sustainability needs to be demonstrated at every single level of the manufacturing and supply process, brands look to tighten how they move, handle and store goods and ingredients. Naturally, plastic RTP is perhaps the RTP is in increasing demand, driven by brands and retailers needing to meet Net Zero carbon targets. most robust way of reducing waste through handling, which I believe is why we are seeing such a strong upturn in use.”

Guided by the needs of the market, Schoeller Allibert has strengthened its core range of RTP solutions to equip customers with the tools they need to create sustainability and efficiency at each stage of the manufacturing and supply process. Walkington concludes: “It’s clear that as brands prepare to adopt and implement Net Zero principles, supply chains will continue to see major
operational shifts. After a challenging few months, sustainability is very much back in focus. It’s now a question of finding new areas for efficiency, and for many businesses, the answer lies in efficient goods handling and streamlined logistics.

“What will prove absolutely crucial is momentum – how we can continue to create change in increasingly complex global supply chains. Plastic RTP is one of the ways that this is being accomplished, but we expect to see continued innovation to further support these changes.”

Property Companies Team-up to Raise Net Zero Carbon Understanding

Two of the UK’s leading logistics property companies, Prologis and Tritax Big Box , have joined forces to share best practice for net zero carbon development in the sector and highlight the important role it can play in minimising the impacts of climate change.

Both companies have developed their own pathways to net zero carbon over more than a decade and have come together to share their learnings in a new report, entitled ‘Net zero building in action’. As well as challenging other property developers and logistics companies to take action to reduce and mitigate ‘embodied carbon’ when designing and constructing new buildings, the report shares distinct methodologies for achieving net zero carbon, in line with the UK Green Building Council’s (UKGBC) Net Zero Carbon Buildings Framework Definition.

Simon Cox, UK sustainability officer for Prologis in the UK believes that key to achieving net zero is understanding that while steps can be taken to reduce ‘embodied carbon’ prior to and during construction, it can’t be eliminated from new buildings altogether. It must, therefore, be mitigated, either through an accredited carbon offset scheme or an alternative carbon mitigation scheme. The pathway to net zero carbon devised by Prologis in the UK has seen the property company work with sustainability certification programme, The Planet Mark, for the past 12 years to measure, reduce and mitigate the whole-life embodied carbon footprint of each new building, based on robust Carbon Lifecycle Assessments. Prologis then goes over and above the Planet Mark Certification Scheme to mitigate five times the unavoidable carbon emissions in its buildings by working with climate change charity, Cool Earth, to protect rainforest. Over the past 12 years, this initiative has protected over 12,500 acres of rainforest, locking in 3.7 tonnes of co2 and protecting over 3.4 million trees.

The pathway to net zero carbon devised by Tritax Big Box , along with its dedicated logistics developer, Tritax Symmetry, is similarly robust. Together they have developed a unique analytical model to measure the embodied carbon of each of the materials and products used during construction, in order to identify the building’s lifecycle carbon impact. This innovative carbon model is currently being piloted on two ongoing developments – a new distribution facility for DPD at Bicester and another for the Co-op Group at Symmetry Park, Biggleswade. On completion, each building will be independently verified as net zero carbon in accordance with UKGBC’s Framework Definition. Carbon offset arrangements will be undertaken at this stage to address any residual embodied carbon using one of the UKGBC’s recognized schemes.

The pathways to net zero carbon followed by both Prologis and Tritax Big Box are aligned with UKGBC’s Framework Definition. The report describes the construction of two specific developments by Prologis and Tritax Symmetry – Internet Fusion’s new HQ at Prologis Park Kettering and DPD’s new UK distribution centre at Bicester, respectively.

Simon Cox, First Vice President and UK Sustainability Officer at Prologis, said: “The carbon mitigation scheme we have developed at Prologis provides clear metrics to our customers, so they know that the buildings they are using are certified as net zero carbon and support their own sustainability credentials. Working with The Planet Mark and Cool Earth, our activities are helping to fund rainforest restoration programmes and protect the planet against the ravaging effects of climate change. Crucially, we don’t just aim for net zero, our carbon mitigation scheme is deliberately weighted to over-compensate for the residual embodied carbon of any new building, delivering a net environmental benefit.”

Helen Drury (pictured), Sustainability Lead at Tritax Big Box, said: “The logistics buildings we develop today will be here in 2050 and, therefore, we have a responsibility to ensure they are net zero carbon when we hand them over to our customers. The model we have developed is an important sustainability asset and we will continue to refine it to take account of new building products and methods.”

Karl Desai, Senior Advisor – Advancing Net Zero at UKGBC, added: “These companies have come together to share their knowledge and experience in a transparent way and this is exactly the kind of initiative that is needed to increase the pace of change across the wider construction sector. Embodied carbon in the built environment accounts for around 11% of global greenhouse gas emissions and this must be tackled now.”

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