Net Zero Carbon Programme

Kuehne + Nagel will offer CO2-neutral transport from 2020 onwards

We promise to provide our customers with environmental friendly, sustainable and innovative supply chain solutions that will reduce our collective CO2 footprint and help stakeholders achieve their bold environmental targets.

Ocean acidification and global warming dramatically impact our natural ecosystems and without far reaching measures life on our planet is under threat; we need courageous and swift actions from companies to change that truth. The logistics industry contributes 7% to the global emission of CO2. As an industry leader we commit to reducing our contribution to that percentage through ambitious climate protection targets, to ensure a future for the generations to come.

Net Zero Carbon is our global programme to neutralise our CO2 footprint. Key elements include:

  • Carbon management: Maintain effective carbon management throughout all operations
  • Environmental products & services: Provide environmentally sensitive products to our customers
  • Supplier environmental performance: Environmental criteria to procure and select logistics services

Our targets

With "Net Zero Carbon" we address CO2 reduction in transport and logistics services worldwide. In addition to our own CO2 neutrality, we will offer our customers solutions for reducing their supply chain’s CO2 footprint, using big data and predictive analytics, as well as new digital platforms supporting the selection of transport routes and modes that emit substantially less CO2.

Carbon neutral for own emissions as of 2020

As of 2020, we will be fully carbon neutral worldwide for all emissions in our direct sphere of influence (Scopes 1 and 2 of the greenhouse gas emissions accounting set by the Greenhouse Gas Protocol Initiative - GHG Protocol). 

Carbon neutral including our suppliers’ and customers’ footprint by 2030

In Addition, we will target the emissions included in scope 3 of the GHG Protocol by addressing the CO2 footprint of our suppliers: airlines, shipping lines, and haulage companies – outlined in a roadmap for neutrality by 2030 together with our customers.

As a first step, all less-than-container-load (LCL) shipments will be CO2 neutral from 2020 onwards.

Dr. Detlef Trefzger

 

"We are all responsible for the environment, for our ecosystem, and above all for the people – in business and private life.
We as a company and all our colleagues act now with our Net Zero Carbon programme to fight CO2 emissions and offer sustainable and innovative supply chain solutions."

  

Dr. Detlef Trefzger, Chief Executive Officer
Kuehne + Nagel International AG

Our path to CO2 neutrality – visibility, reduction, offsetting

Our journey towards full carbon neutrality by 2030 has begun. Through state-of-the-art carbon calculators that work based on globally accepted calculation standards we are able to reduce carbon emission around the globe. By using our carbon emissions compensation services we neutralise the remains.

Explore our 2018 Sustainability Report and learn about our commitment towards sustainability. 

Visibility in logistics

VISIBILITY

Carbon Calculator

Making greener choices requires awareness of our CO2 footprint along each step of the supply chain. We have included the CCWG (Clean Cargo Working Group) methodology and emission factors in our Carbon Calculator and customer emission reports, enabling shippers to gather reliable information regarding the use of equipment and monitoring systems. This enables optimised routing, carrier and vessel selections, and reduces the carbon footprint caused by redundant inland movements.

SeaExplorer

Sea Explorer – Digital Sustainability Platform

Our online platform for sea liner services provides digitally enabled insights into the world’s largest sea freight service network. Among other features, Sea Explorer offers full visibility on realistic and accurate CO2 and sulphur emissions across services, which supports routing and planning activities when selecting services with lowest CO2 emissions. The platform also gives shippers insights into how every vessel carrying their goods will comply with the upcoming IMO 2020 regulation.

Learn more about Sea Explorer

Reduction

REDUCTION

Environmental issues are an integral part of our QSHE management system.              We hold ISO 14001 environmental certification for more than 200 locations worldwide.

Our company programme in respect of reduction of own direct and indirect emissions includes for example:

  • Implementation of advanced technologies, such as solar energy and waste disposal in all new logistics centres
  • Usage of renewable energy
  • Ongoing training programmes to maintain and expand the environmental awareness of employees
  • Video conferencing increasingly replaces business trips
  • Environmental Champions
Offsetting with Kuehne + Nagel

OFFSETTING

Technological progress is helping to reduce emissions, but as GDP growth causes an up to 2-fold increase of global transports, emission reduction activities are outpaced by economic growth. The time to act is now. Carbon offsetting is a recognised mechanism that allows to counterbalance CO2 emissions of a shipment that cannot be avoided. We will lessen our footprint by investing in certified nature based projects around the world that will offset our impact. This mechanism will be made available to our customers.

Learn more

Our nature based projects work towards the Sustainable Development Goals (SDGs). They were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty and protect the planet.

SELECTION OF NATURE BASED PROJECTS THAT WE INVEST IN:

Cordillera Azul National Park REDD Project

Project Video

This REDD (Reducing Emissions from Deforestation and Degradation) project supports a rich ecosystem of indigenous biodiversity, high carbon stock forests and a multicultural population of more than 250,000 people organised in 400 communities living in the buffer zone around the Park boundaries. The project protects this unique biodiversity and restores degraded lands with agroforestry systems (cocoa and coffee) in the buffer zone, which are relied upon by small farmers and local communities for their livelihoods. Link to the project

Impact targets for 2021:

  • 1.6 million hectares of threatened forest protected
  • 28 High Conservation Value Species protected
  • 716 jobs supported, 30% held by women
  • 24 sustainable enterprises created or supported producing sustainable commodities including Fair Trade and organic cocoa and coffee
  • Improved schools for 6 communities

DEVELOPED BY ALTHELIA FUNDS - 2.5 MILLION TONNES OF CARBON CREDITS GENERATED ANNUALLY.

All data is supplied by The Cordillera Azul National Park REDD Project.

The project helps to achieve the following UN Sustainability Development Goals  

Cordillera Azul National REDD Park Project

REDD Katingan Mentaya Project

The Katingan Mentaya Project protects peatland habitats in Central Kalimantan, Indonesia. It prevents forest clearance  which would have led to the draining of underlying peat. The threatened land is home to several critically-endangered species, including up to 10% of the surviving Bornean orangutans, southern Bornean gibbons and proboscis Monkeys. Link to the project

Project Highlights:

  • 149,800 hectares intact peat swamp forest protected
  • Protection of vital habitats for 5 critically endangered species
  • 8 endangered species and 31 vulnerable species
  • Collaboration with 34 villages in the project zone
  • Over 500 people are directly employed by the project

DEVELOPED BY PERMIAN GLOBAL - 7.5 MILLION TONNES OF CO2 CREDITS GENERATED ANNUALLY.

All data is supplied by The Katingan Mentaya Project.

The Project helps to achieve the following UN Sustainability Development Goals

REDD Katingan Mentaya Project

TIST East Africa: A community-led tree planting project

The Tree Planting East Africa project supports farmers in addressing poverty, land degradation and climate change through planting trees. It aims to improve the lives of some of the poorest people in the world through capacity building, leadership development, information sharing and work towards gender equality. This is achieved through a community driven approach to tree planting and reforestation, ensuring that local farmers are the architects and managers of the project on the ground, which creates benefits for themselves and their families and for the land. Link to the project

Impact targets for 2021:

  • 46,994 hectares of land restored including 206 hectares of riparian areas
  • Over 18 million trees planted
  • As much as 400-600% increases in crop yields through training in improved agricultural practices
  • Over 87,000 farmers receiving high quality vocational training
  • 50 of leadership are women, and 41% of participants are women

DEVELOPED BY THE INTERNATIONAL SMALL GROUP TREE PLANTING PROGRAM (TIST) - 6.1 MILLION TONNES OF CO2 CREDITS GENERATED BY 2021.

All data is supplied by TIST East Africa.

The project helps to achieve the following UN Sustainability Development Goals

TIST East Africa

Questions and answers on CO2 neutrality at Kuehne + Nagel

How exactly does Kuehne + Nagel intend to reach its ambitious climate targets?

We will achieve it through a combination of CO2 reduction and offsetting based on enabling advanced CO2 visibility – all in line with our overarching programme to protect the environment including decrease on electricity, reduced water consumption and recycling of waste. We work hand-in-hand with airlines, shipping lines and haulage companies to provide sustainable operations and state-of-the-art technology. The core element to make greener choices is to be aware and to track the CO2 footprint at each step of the value chain. Therefore, the shipping-related emissions are fully visible for our clients in our Sea Explorer and CO2 calculator platforms. But in spite of all efforts at reduction through technological innovations and energy savings, CO2 emissions still cannot be 100% avoided. Voluntary CO2 offsetting is a recognised mechanism which allows individuals and companies to compensate for CO2 emissions of a shipment that cannot be avoided through savings. This can be done through investing in environmental projects which contribute to a CO2 footprint reduction of the transport.

Is CO2 neutrality the only ambition Kuehne + Nagel is aiming for?

To achieve CO2 neutrality is not enough to increase ecological value. Therefore, our more comprehensive environmental programme includes carbon emission reductions as well as a range of other emission reduction methods for our overall environmental effect. While installing solar panels on the rooftop may help reduce emissions, what really matters is the overall sustainability of a company, its processes, its sourcing standards, and the quality and efficiency of its products. With energy efficient and innovative solutions we can assist customers in decreasing their own CO2 footprint and measure and communicate this effectiveness as a positive handprint.

Will Kuehne + Nagel no longer be emitting CO2 from 2020?

As logistics provider we will continue to produce CO2. This is unavoidable. But: By 2020, we will neutralise our direct CO2 emissions which cannot be avoided by via CO2 reductions and carbon compensations.

What is the Greenhouse Gas Protocol?

The Greenhouse Gas (GHG) Protocol, developed by the World Resources Institute (WRI) and the World Business Council on Sustainable Development (WBCSD), is the most internationally accepted and commonly applied standard for emissions accounting. The protocol sets a global standard for firms on how to measure, manage and report greenhouse gas emissions in a way that double counting of emissions is avoided.

What are Scope 1, 2 and 3?

The GHG Protocol has subdivided emissions of greenhouse gases into three categories:

Scope 1, 2, and 3.

Scope 1 - Direct emissions produced by sources that are owned or controlled by the company, e.g. manufacturing, company cars

Scope 2 - Indirect emissions produced by activities of the company that occur at sources owned or controlled by another company, e.g. purchase of electricity  

Scope 3 - Encompasses emissions from other indirect, non-company controlled sources, e.g. supplier's activities   

What is the GLEC Framework?

Led by Smart Freight Centre (SFC), the Global Logistics Emissions Council (GLEC) was established in 2014 by stakeholders from industry initiatives, associations and leading multinationals involved in freight movement. The objective is to create one universal and transparent way of calculating logistics emissions across the global multi-modal supply chain. The GLEC Framework will enable a company to understand its carbon footprint alongside cost and time to decide the best way to transport its goods and to choose the most efficient freight carriers. 

The GLEC Framework builds on existing methodologies such as CEN 16258, Clean Cargo Working Group, IATA RP 1678 and SmartWay, as well as outputs from the EU funded project COFRET and the US National Cooperative Freight Research Programme.

What is the scientific backing for Kuehne + Nagel’s Net Zero Emissions Programme?

Our Carbon Management Programme has been externally verified and certified under the ISO 14064-3 Norm. In addition and in accordance with the Paris Agreement (COP21), we are currently in the process to Elaborate our Science Based Targets and CO2 calculation methods and have them approved and in place in the following months.

How are, for example, the CO2 emission for Seafreight transport calculated?

Currently, we make use of the data provided by the SeaExplorer and the Carbon Calculator, which is based on the accounting standards of the Clean Cargo Working Group (CCWG).

Going forward, we will make use of an advanced approach using Vessel Master Data. The emissions of ships are currently being reported on an aggregated level, e.g. on a trade lane level, by different bodies (e.g. CCWG). Our Logindex implements a data based model to approximate the CO2 emissions on vessel level based on vessel properties (engine efficiency, capacity). Emissions are reported on an emission / distance / TEU basis.

Basis and Methodology Vessel Emission Score

The emission value for each vessel is calculated with an adapted version of the Energy Efficiency Design Index EEDI by IMO. The model estimates the fuel consumption of the ship’s main engines and assumes all the fuel consumed is converted into CO2. For the estimation of the fuel consumption, the model relies on data from providers such as Clarksons for the engine power, specific fuel consumption (how much fuel is required for unit of power), the vessel design, speed and nominal capacity. For a CO2 emission per container level, the model assumes capacity utilisation common for all vessels. The emission is reported on a per km basis, thus multiplying this number with distance travelled for a ship will result in an estimation of CO2 emitted on a specific route per TEU.

How does offsetting exactly work?

Still, CO2 emissions of shipments cannot be 100% avoided. Until they can be technologically reduced to zero they can be offset via us by investing in nature-based projects around the world that help reduce greenhouse gas emissions. CO2 credits are generated to prove that a certain amount of CO2 emissions has been offset and that the shipment has been CO2 neutralised. We have started our own nature projects in Myanmar and New Zealand and we buy credits from a global portfolio of environmental projects, including Cordillera Azul National Park Project in Peru and the Katingan Peatland Restoration and Conservation Project in Indonesia. Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of one tonne of CO2.

What projects does Kuehne + Nagel invest in to offset my supply chain? Selection below:

We partnered up with various NGO's and developers in order to support our customers to create their own carbon neutrality path. We work with nature-based projects around the world that help reduce greenhouse gas emissions while improving the livelihoods of local communities and preserving biodiversity and wildlife. These projects – verified by independent organisations with the highest internationally recognised standards and based on the UN Sustainable Development Goals (SDGs) – generate carbon credits which can be used to compensate for the emissions of a shipment.

Isn’t offsetting comparable to selling of indulgences?

Certainly, avoiding CO2 is better than offsetting it. However, CO2 offsetting is definitely not a sale of indulgences. It enables the offsetting of emissions which are difficult to avoid, leading to more climate protection overall.

What is the role of afforestation for saving CO2 emissions?

One hectare of forest filters up to 50 tonnes of soot and dust from the air, generates around 100,000 cubic metres of new groundwater, releases 15-30 tonnes of oxygen per year, and binds to 10.6 tonnes of CO2. But it is not enough to stop this reservoir from being plundered in order to limit the rise in our atmosphere‘s temperature.

This living CO2 reservoir must be protected and afforested as nature has the potential to provide more than one third of the climate solution by 2030. Nature based solutions comprise all activities
related to the protection, or redevelopment, of natural ecosystems such as forests, grasslands, and wetland systems to lower concentration of CO2 in the atmosphere. Each of these activities results in the
biological capture and storage of CO2 - typically through the process of photosysthesis.

We commit to supporting this effort through our offsetting programmes.

[Source: American Association for the Advancement of Science; The Nature Conservancy]