Sustainability Report 2016

Environment

 

Kuehne + Nagel’s 2020 environmental strategy is a global effort to reducing the company’s footprint, improving the environmental performance and supporting its stakeholders to achieve their targets. Therefore, we have implemented a rigorously enforced global environmental policy. The policy embraces the following initiatives:

 

  • Implement an effective carbon management programme throughout all Kuehne + Nagel operations.
  • Provide environmentally sensitive product alternatives to our customers.
  • Communicate policies and objectives to all employees and subcontractors.
  • Include environmental performance as key criteria in supplier selection and promote active participation in sustainability-focused industry groups.

 

To complement our environmental strategy and our international standard ISO 9001 Quality Management System, Kuehne + Nagel counts on an Environmental Management System (EMS). The EMS is built on a combination of ISO 14001 principles, customer requirements, legislation and industry regulations. Its focus is on reducing CO2 emissions, managing consumption, preventing pollution and recycling.

 

 

Highlights 2016

Low Carbon Energy Installation 

Photovoltaic panels installed in our facilities cover up to 700,000 m2 of warehouse and office space

 

 

Efficient Fleet Management

Extending the use of Telematics 
and FleetBoard for our own trucks, which decreases fuel consumption and optimises vehicle usage, among other benefits.

 

 

Environment Champions

Global network of more than 600 environment champions who next to their daily jobs volunteer to raise awareness of environmental issues, provide guidance to their colleagues and influence site activities to reduce energy, fuel, water and CO2 emissions

 

 

Behavioral Change

Environmental awareness trainings provided to all Environment Champions in four key areas: general induction, energy efficiency, fuel efficiency and waste management

 

 

Process Improvement

Managing idle capacities (space consolidation, motion-sensing lighting in common areas, timers on forklift battery chargers) in warehouse operations

 

 

Product Design

Over 1,000 CO2 reports from transport activities recorded in our operational systems, serving up to 937 customers worldwide

 

 

Performance Review 2016

Reducing environmental impact on air, water and land was our primary focus in 2016. We made significant improvements throughout our operations, at every stage of the supply chain, setting measurable goals for specific environmental fields to track our progress each year. 

 

 

  Metric Unit 2012 2013 2014 2015 2016
Carbon emissions
           
CO2 total* Million tons 229 215 201 204 208
CO2 per FTE Tons 4,287 3,808 3,584 3,394 3,134
CO2 per 100 m2 Tons 2,930 2,652 2,575 2,327 2,420
Energy
           
Electricity total Million kWh 449 431 419 436 455
Electricity per FTE kWh 8,405 7,634 7,456 7,291 6,816
Electricity per 100 m2 kWh 5,746 5,317 5,357 5,036 5,298
Natural gas total Million kWh 229 221 188 189 191
Natural gas per FTE kWh 4,296 3,917 3,344 3,159 2,875
Natural gas per 100 m2 kWh 2,937 2,729 2,403 2,166 2,234
Waste recycled
           
Waste total 000' Tons 352 329 364 397 492
Waste recycled 000' Tons 278 275 262 300 401
Waste recovered 000' Tons 15 11 51 73 59
Waste landfill 000' Tons 59 43 51 22 31
Recycling rate % 78 84 72 76 82
Water
           
Water total Cubic meters 1,068,038 957,366 902,825 988,943 1,033,137
Water per 100 m2 Cubic meters 13,750 11,196 12,140 11,248 11,998
Water per FTE Cubic meters 20,029 16,963 16,118 16,244 15,439
Water recycled Cubic meters 35,245 23,838 31,598 46,480 30,994
Ratio recycled % 3 2 4 5 3

As of December 31, 2016
* CO2 is for Scope 1 and 2 emissions (mainly fuel from owned trucks and electricity consumed in our premises)


 

CO2 Emissions 

Kuehne + Nagel is making progress on CO2 reduction activities by establishing a global network of experts in its organisational regions EMEA, Americas and Asia-Pacific. Their efforts have greatly contributed to establish and disseminate the 2020 environmental strategy, achieving significant improvements as demonstrated in the table above.

 

In 2016, the Kuehne + Nagel Group has reduced CO2 emissions per Full Time Equivalent (FTE) by 7 per cent but CO2 emissions per hundred square meter increased 3 per cent as the Group expanded due to business growth. Emissions from other greenhouse gas (GHG) sources have been negligible compared to overall GHG emissions (less than 0.005 per cent).

 

Kuehne + Nagel has developed tools that keep track of COemissions, both from company facilities and operational transport activities:

 

Global Transport Carbon Calculator (GTCC)

The GTCC is one of the most powerful tools in the forwarding industry for the measurement and reporting of CO2 emissions triggered by transport activities, whether sea, air or road. Over time, the GTCC will report our external carbon footprint per transaction, transport mode and customer, enabling us to respond to information demands from customers and other stakeholders.

 

Global Facility Carbon Calculator (GFCC)

The GFCC is a tool for prioritising actions to reduce CO2 emissions and usage for all company facilities. By enabling us to internally measure electricity, natural gas, propane/LPG and transport fuel usage at each facility, the GFCC keeps track of these movements and supports us to identify trends. We also measure water consumption, waste to landfill and recycling efforts where applicable. Targets for maintenance and/or reduction of our carbon footprint are set at global, regional as well as country levels and communicated annually.

 

 

Energy Consumption

A direct approach to CO2 emissions is to reduce energy and fuel consumption. From a global perspective, all of our organisational regions reckoned the importance of the 2020 environmental strategy. Through awareness programmes and true commitment to reducing consumption during seasonal peaks, our facilities improved energy and fuel efficiency.

 

Kuehne + Nagel has seen stable fuel consumption rates over the last five years with an improvement of 7 per cent litres/km consumption since the roll-out of the strategy in 2010. Note that fuel consumption accounted for in this report is solely from Kuehne + Nagel’s owned fleet. Fuel from subcontracted transport operations is not included.

 

As for electricity and natural gas, consumption in 2016 shows a significant improvement compared to 2015. The target to reduce 2 per cent per FTE in both parameters (electricity and natural gas) was exceeded by 6 and 9 per cent points respectively. However, the goal to reduce 2 per cent per hundred square meters for both electricity and natural gas was below the target and increased 6 and 3 per cent points accordingly.

 

Furthermore, continuing with our efforts to reduce CO2 emissions, Kuehne + Nagel is switching to renewable and low carbon energy. Its performance towards the global target of a 10 per cent increase in electricity consumed from renewable sources continues to improve. In 2016, the share of renewable energy in current electricity purchasing stood at 4 per cent from all energy consumed. This refers to a total consumption of 19 million kWh from low carbon energy sources.

 

Average Renewable Energy purchased

Increasing installation of solar power in our premises supplies energy to many of our warehouses and offices. Currently, our extended solar cells, modules and arrays surpass the 700,000 m2 surface, producing an equivalent to 7,500 kWp per year. Our distribution centre in Chapponay, France, is just one example of the advanced technology Kuehne + Nagel deploys to systematically run greener operations around the world.


Recycling and Waste

Waste (including hazardous and electronics) is disposed of in the most environmentally efficient way, including recycling and use of accredited, licensed suppliers who follow all applicable regulations. Certificates verify the correct disposal/recycling of all waste. Kuehne + Nagel recycling rates have consistently improved over the last five years, reaching 82 per cent in 2016.

 

 


Water

In our offices and warehouses, we actively seek and implement measures to minimise water wastage through improved management. Our Environment Champions on site review how water is used, and identify efficiencies, while ensuring that employee health and safety is not compromised. Water saving initiatives and products such as installation of water efficient devices in restrooms and canteens, use of water containers to harvest rainwater, setting water usage targets and raising awareness among our staff have been put in place. Despite these measures, overall water consumption can increase through business expansion and increased recruitment.

 

No industrial processes involving water take place at our locations. Water usage is 100 per cent for personal, domestic purposes, thus water is directly discharged at the local sewage effluent. Water recycling process includes water harvesting and water treatment.

 

 


Progress Review Towards 2020

Our annual sustainability targets help us to track progress. We plan ahead, with objectives set for the period up to 2020, ensuring we have clear medium to long-term goals.

 

Overall, Kuehne + Nagel has reached steady reductions of 25 per cent on CO2 emissions per FTE and 13 per cent per hundred square meters since the implementation of the strategy in 2010. Fuel efficiency progressively improved to reach a 7 per cent increase, while consumption of renewable electricity also increased 7 per cent in a period of 5 years. The Group’s effort to improve transport efficiency was successfully implemented in 2016. Regarding waste recycled, Kuehne + Nagel has already exceeded the proposed target with a remarkable progress of 82 per cent.

Environmental Issue 2020 Target 2016 Progress*
Site1 reduction of CO2 emissions 15% reduction CO2 per FTE; 15% reduction CO2 per 100 m2 25% per FTE reduced 13% per
100 m2 reduced
Improve the fuel efficiency
Kuehne + Nagel operated
road transport
10% improvement in litres/km where applicable 7% improvement
Increase the % of electricity
consumed that is sourced from
renewable sources
10% of total electricity consumption by 2020 7% increased
Increase the % of freight moved by low-carbon transport modes 2% increase in freight volume moved per year by rail or inland water (where these modes are commonly available) from 2016 onwards 2% increase
Increase the % of all waste that is recycled Increase % of all waste that is recycled by 5 percentage points per year to achieve 75% by 2020 82% achieved

*  This report reflects yearly performance progress from 2012 until 2016

1  Sites are defined as all Kuehne + Nagel operated facilities with > 15 employees and floor space > 800 m2