The latest annual TIACA Air Cargo Industry Sustainability Survey, organized in conjunction with consultancy Change Horizon, revealed that 55% of the 204 respondents said that the pressure to invest in sustainability had increased in 2021 compared with a year ago, although this is three percentage points down on the previous survey.

The drivers for being sustainable are also changing with its importance to customers, employees, business partners and local community decreasing slightly, while importance to shareholders and regulators was on the rise (see charts below).

Other key findings in the survey were that 85% of respondents felt that Covid-19 had a positive or neutral impact on the industry’s sustainability agenda and 73% declared they have a sustainability strategy in place.

However, “only” 52% (down nine percentage points compared to 2021) have at least one dedicated person in charge of delivering the sustainability agenda and just 37% (-6 percentage points v 2021) have a specific budget.

Also, 60% of the companies confirming they have a dedicated sustainability budget said this had increased on the previous year but “only” 50% of corporates in the air cargo industry share their sustainability performance externally, which TIACA said is well below the global trend of 80% of companies worldwide.

TIACA director general Glyn Hughes said: “The second TIACA Air Cargo Sustainability Report confirms the industry is ramping up its action to run business in a way that does not degrade the environment and brings benefits to society.

“However, while the leadership is now paying attention to the sustainability agenda, there is still a long way to go as the resources and budgets to push it forward are still very scarce.

“The pressures on this industry to prioritize sustainability are ever increasing as customers, employees, business partners, and increasingly, investors and regulators are asking air cargo businesses for their sustainability credentials.”

On sustainable aviation fuels (SAF), while less than a third of respondents are actively involved in SAF deployment, a “striking third feel it doesn’t apply to them”.

TIACA urges all air cargo businesses to set up concrete targets to accelerate their sustainability transformation; measure progress made by collecting data and facts regularly; communicate on achievements with transparency; and get recognized for the progress made by embarking on TIACA’s Sustainability Assessment, Validation and Verification Programme, currently under development.

Source: www.aircargonews.com

Image: www.pixibay.com

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Companies across industries are attempting to meet the moment and replace legacy supply chain practices with more dynamic tactics to prepare for the next wave of volatility. But few organizations know where to start.

To truly become resilient in the new normal, enterprises have to develop bold strategies that holistically identify gaps and prioritize intelligent supply chain solutions. In doing so, leaders can ensure their supply chains are reactive to sudden changes and proactive before a disruption even hits, saving both time and money.

Here are three tactics to get started on the road to supply chain resiliency.

Similarly, machine learning capabilities will be central to maintain agile supply chains, identifying data anomalies that trigger demand fluctuations and signals.

Although overhauling supply chains may seem like a monumental task, enterprises can begin to chip away at their digital transformation agendas if they are properly managed. To do so, organizations must implement short proofs of concept and strong organizational change management practices. By running the broader adoption program in incremental steps, companies can better launch each new offering and thus quickly gain value once it’s adopted at scale.

2. Join the shared-based economy. Many leaders are turning to contractual supply chain collaborations to bolster weakened supply chains. By utilizing web-based planning tools and sharing certain components of their infrastructures among an organized network of partners, companies can shoulder each other’s burdens and provide needed reprieve in their given issue areas—whether manufacturing, logistics, or transportation. This requires leaders to carefully identify core competencies and gaps before selecting partners.

Alternatively, leaders can look to mergers and acquisitions to expand their core competencies and fill their gaps. Unlike partnerships though, M&A deals are definitive and thus require a more detailed vetting process. Both partnerships and M&A deals allow companies to share capabilities and bolster supply chains.

3. Operationalize supply chain sustainability. In recent years, both the public and private sectors have increasingly prioritized sustainability initiatives. Consumer product goods companies have led the private sector’s adoption of greener practices, and the business world has taken note.

Organizations across industries would be wise to turn to environmental best practices to fortify their supply chains. By introducing green tactics into their supply chain strategies enterprises can become more resilient in the highly disruptive new normal.

Organizations should also revamp their overarching supply chain strategies to emphasize more agile, sustainable planning. For instance, supply chain planning measures that utilize algorithms to prioritize better transportation routes or manufacturing operations can help lower carbon emissions while also optimizing supply chain operations.

Though it may mean more time or money spent in the short term, organizations will reap the rewards of resilient supply chain management in the long term.

Source: www.inboundlogistics.com

Author: Pierre Erasmus, Integrated Business Planning Lead, Capgemini Americas

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The COVID-19 pandemic shined a spotlight on the frailty of the global supply chain. As a result, business leaders have spent the better part of two years pursuing solutions and strategies that can help build more resilient supply chain operations. This enhanced focus on agility and resiliency has also driven increased interest in supply chain sustainability efforts—and for a good reason.

Companies that already had robust sustainability programs in place before 2020 learned that supply chain resiliency was an inevitable side effect of those initiatives. As a result, advocates of environmental, social, and governance (ESG) programs may now find it easier to get support from the boardroom as the world moves beyond the pandemic.

WHY DOES SUSTAINABILITY CREATE RESILIENCY?

In a Stanford Graduate School of Business study, 63% of buyers and 73% of suppliers said their sustainable procurement practices helped them endure the pandemic. The same study showed 70% of procurement leaders saw supply chain resilience as the desired outcome for their sustainability efforts. In addition, MIT’s State of Supply Chain Sustainability report showed many companies maintained or increased their sustainability investments throughout the pandemic.

• Responsible partnerships. When suppliers, carriers, logistics partners, and other stakeholders willingly share data about their operational practices, it becomes easier to identify risky partnerships. Building a sustainable operation requires eliminating contracts with businesses that behave in risky ways. When markets become volatile, the company can then rely on a more robust partner network to help it weather the storm.
• Established visibility. Sustainable companies already have visibility in their supply chains, and visibility is a cornerstone of resiliency. With transparency between supply chain partners, all parties can identify mutual risks and implement measures to mitigate them. As a result, sustainable companies communicated with partners and reacted more quickly to disruptions caused by COVID-19.
• Climate change. The effects of climate change have already begun showing themselves in the form of more frequent storms, flooding, wildfires, droughts, and more. These events have a disruptive effect on the supply chain, meaning decarbonization efforts tie directly into future supply chain resiliency.

DOES YOUR LOGISTICS PARTNER SUPPORT YOUR ESG EFFORTS?

Third-party logistics (3PL) companies play a crucial part in supporting broader corporate sustainability initiatives. Your 3PL can support your ESG efforts in the following ways:

• Transportation. Logistics providers can optimize routes to use less fuel, locate inventory nearer to your customers to minimize delivery distances, and consolidate shipments to reduce the number of trucks on the road.
• Packaging. A 3PL can help you identify greener packaging options for your shipments to reduce landfill waste.
• Energy-efficient warehouses. Simple adjustments such as climate control, LED lighting, and solar panels optimize energy usage in the warehouse.
• Reverse logistics. Your 3PL can optimize your reverse logistics practices, keeping usable inventory out of landfills and allowing you to resell or dispose of returns responsibly.
• Fair labor practices. When it provides a good work/life balance, fair wages, and responsible labor practices, your 3PL functions as an extension of your ESG initiatives.
• Data transparency. Sharing data allows you to work with your 3PL to identify risks and areas for improvement.

If you want to have a sustainable supply chain, choosing a logistics partner that can align with your company values and practices is essential.

Source: www.inboundlogistics.com

Author: Robert Kriewaldt, Senior Vice President, Phoenix Logistics

Image: www.pixibay.com

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Both institutions have drawn up a common roadmap to work in a coordinated manner in key areas for the port system such as the fight against climate change and decarbonisation, the use of renewable energy, digital transformation, mobility and equality plans.

Jens Meier, who has travelled expressly to Valencia to get to know the activity and projects of Valenciaport, and Aurelio Martínez have shown their mutual commitment to work together on the present and future challenges of maritime transport and the logistics sector. A firm objective between two complementary ports such as the main ports in the North and South of Europe to carry out initiatives aimed at positioning their respective enclosures as benchmarks in sustainability and digitisation, advancing in the 2030 commitments of the European agenda.

In this sense, the president of the Hamburg Port Authority has known first-hand key projects of Valenciaport for the coming years to consolidate its position as a strategic hub of the Mediterranean as the north container terminal, the new multipurpose terminal of Sagunto or the public passenger terminal of the Port of Valencia. In addition, the initiatives being developed by Valenciaport in its 2030 objective, zero emissions, such as the installation of photovoltaic or wind energy, the construction of the electrical substation or the hydrogen projects, among others, were explained to him.

The Port of Hamburg is one of the most important ports in Northern Europe which has handled more than 4.3 million containers in the first six months of the year, 5% more than in 2020. It is the third European port in terms of container movement, while València is in fifth position, two complementary ports with great potential for developing joint actions.

Source: www.maritimejournal.com

Image: www.pexels.com

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Conceived to help shipowners navigate the technologies and fuels needed to meet global greenhouse gas (GHG) targets, the report features an updated carbon risk management framework, including a new ‘decarbonization stairway’ model to help owners map a path to sustainability.

The 80-page report aims to assist an industry facing the dual challenge of increasingly stringent climate change targets and regulations coupled with uncertainty over future fuel choices, technology, and supply.

It is, according to DNV Maritime CEO Knut Ørbeck-Nilssen, “the grand challenge of our time.”

“Choosing the right fuel today for operations tomorrow is a daunting task that all owners must face up to,” said Ørbeck-Nilssen. “The business environment is changing in line with the natural one, leading not just to increased regulatory requirements, but also to new cargo-owner and consumer expectations and more rigorous demands from capital investors and institutions.

“A misstep today in newbuild fuel strategies can have damaging consequences for businesses and assets in the future. So, owners need practical, expert advice and smart solutions to ensure vessels stay competitive, compliant and commercially attractive over their lifetimes. This is where the Maritime Forecast to 2050 can help turn strategic uncertainty into confident decision-making.”

The report maps the shifting regulatory landscape, provides a status update on technology and alternative fuels, and views the energy transition from a wider perspective – investigating the financing of green onboard investments, as well as the need for rapid development of supply-side capacity for new fuels.

To support shipowners, DNV provides an updated framework for managing carbon risk in newbuilding designs, a techno-economic evaluation of fuel strategies, and the vessel design implications of those chosen approaches. The ‘decarbonization stairway’ is introduced to show how individual owners can adapt to stay below the required GHG emission trajectories.

The new Maritime Forecast to 2050 – the fifth edition of its kind – features detailed case studies to help evaluate fuel and technology scenarios and compare competing solutions. The report finds that the maritime energy transition is already gaining momentum, with around 12% of newbuilds currently ordered with alternative fuel systems. This is double the 6% revealed by DNV’s 2019 Maritime Forecast report. However, less than 1% of ships currently in operation use alternative fuels, with the huge majority plying short-sea routes.

Source: www.maritimejournal.com

Image: www.pexels.com

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The report from Trelleborg’s marine and infrastructure operation covers key business drivers for sustainability and what actions are having the most immediate impact. The report also details the pivotal role partnerships are playing in creating a more sustainable value chain.

Comprising quantitative and qualitative research across more than 90 organizations around the globe, respondents ranged from various maritime roles and businesses, including port owners and operators, engineers, tug operators, maritime pilots, and consultants.

Richard Hepworth, President of Trelleborg’s marine and infrastructure operation, says: “Climate change presents the single biggest threat to sustainable development in the marine and infrastructure industries. Action is needed. However, with increasing stakeholder expectations and regulations – such as the International Maritime Organization (IMO) Greenhouse Gas Strategy 2050 – the maritime industry finds itself at a pivotal point in the debate around sustainability.”

Guided by the UN’s SDG’s and a firm belief that prioritizing sustainability above everything is the right thing to do, Trelleborg Group has pledged a long-term commitment to enhancing sustainability by design, a commitment to create more sustainable products, technology, and operational processes to the benefit of both the planet and its customers. In support of the United Nation’s goals, the commitment of Trelleborg’s marine and infrastructure operation spans three key focus areas. These include responsible supply chains from sourcing to end-of-life, decarbonizing the maritime and infrastructure sector through the development of cleantech, and engineering sustainability through premium product design.

To download Trelleborg’s ‘Serious About Sustainability’ report, visit: https://bit.ly/3jK8iuH

Source: www.maritimejournal.com

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