Green Freight Asia Presentation f - BSR · GREEN%FREIGHTASIA | 2 | Green%Freight%Asia%– who%we%are% Green%Freight%Asiais%anindustry1led%networkfocusedondriving% sustainableroad%freight%in%AsiaPacificto

GREEN FREIGHT ASIA | 21 NOVEMBER 2013

GREEN FREIGHT ASIA | 2 |

Green Freight Asia – who we are

Green Freight Asia is an industry-led network focused on driving sustainable road freight in Asia Pacific to ultimately improve fuel efficiency, reduce CO2e emissions and lower logistics costs

across the entire supply chain.

• Incorporated in Singapore as a non-profit organisation in 2013

• Comprised of a diverse group of large, medium, and small logistics companies (carriers) and customers of logistics companies (shippers)

Shippers are companies that buy road freight transport services for themovement of their own goods and products or the ones of their customers

Carriers are companies that own commercial vehicles for the transport of goods


Current Climate

• SIX out of the TEN countries most affected by climate change worldwide are in Asia.

• More than 20% of global greenhouse gases emissions stem from the transport of goods and people.

• Heavy and medium freight trucks contribute 25% of the world’s transport energy use, as compared to airplanes (12%) and ships (10%).

• Trucks constitute about 9% of the vehicle population in Asia but contribute 54% of road transport CO2emissions.


Industry Outlook

• Logistics costs, as a percentage of GDP, range from 15-25% in Asia. This is significantly higher than the US and Europe where values are below 10%.

• Asia accounts for nearly one in two commercial vehicles (mostly trucks) sold worldwide.

• Asia’s trucking sector is highly fragmented with almost 90% of trucks owned by individual drivers and only 0.1% are companies with more than 100 trucks.


The Green Conundrum

• Motivation for companies to adopt more sustainable road freight practices is obvious : higher cost efficiencies and higher consumer attraction.

• However, the rate of sustainable road freight practices has remained relatively low.

• Commercial insecurity has been curbing the motivation for carriers to invest into ‘green’ – no rewards of new business.

• No recognised green freight standard for carriers to bemeasured against, meaning shippers were unable to make conscious, ‘green’ sourcing decisions.

• The shippers, with the decision-making power of who to award their freight business to, hold the power to accelerate the green transformation.


Green Freight Asia

In order to address the conundrum and drive the green revolution, Green Freight Asia has developed a high-value proposition:

Proposition HowA simple and standardised definition and recognition of Green Road Freight Transport

Green Freight Asia Label

Aligned recognition of Green Road Freight Transport across Asia Pacific and other regions

Green Freight Asia Intermediary Service –connecting organisations with common green objectives and sharing of information between public and private sector

Information sharing about green technologies Green Freight Asia Green Technology & Practice Platform

Proving the positive impact of green practices on fuel consumption and CO2 emissions in a measureable way for its members




The Green Freight Asia Label was firstly designed to address to various factors curbing ompanies motivation to go green.

The introduction of the Label:

• Recognises carriers and shippers for their adoption of ‘Green Road Freight’ based on a clear auditable standard.

• Ties the recognition of a shipper to that of a carrier.

• Creates a green ecosystem whereby shippers can log into a database and make a conscious, ‘green’ sourcing decision.

• The carriers are rewarded for their green practices, providing them with a genuine incentive to attain the GFA Label.


Green Freight Asia Label - rankings

The rankings are determined by the organisations’ commitment to adopting green freight practices, with the GFA Label comprising of four distinct tiers of recognition.

Minimum commitment / adoption

Leaf level Description

Strong commitment / adoption

Outstanding commitment / adoption

Enhanced commitment / adoption


Green Freight Asia Label - benefits

What’s in it for the shippers/buyers?

• More efficient access to services from their carriers, with smaller footprints on the environment.

• Trade in an environment where you know that you are being provided services that are of best practice.

• Be able to now make conscious, green sourcing decisions when selecting a carrier.

• Be able to select a green carrier and earn the Label for your own company.

• Build a higher consumer attraction to your ‘green’ products and services.

• Play a part in helping to lower fuel consumption and CO2e emissions across Asia Pacific sourced freight movement.


What’s in it for the carriers?

• Higher cost efficiencies from more sustainable road freight practices

• Competitive advantage as shippers increasingly award road freight business to green carriers

• Information pipeline – access to green technology information and practices

• Play a part in helping to lower fuel consumption and CO2e emissions across Asia Pacific sourced freight movement

Green Freight Asia Label - benefits


Green Freight Asia Label - Partners

• In order to ensure neutrality and compliance with data security and competition compliance aspects, GFA has engaged neutral Label assessment partners, TÜV SÜD, TÜV Rheinland and BSR (Business for Social Responsibility).

• The assessment partners are responsible for the collection, management and assessment of the data that companies provide as part of the Label application process.

Apply viaBSR

TÜV Rheinland

TÜV SÜD

Business for Social Responsibility

Apply via TÜV SÜD

Apply viaTÜV Rheinland

http://greenfreightasia.org/about-gfa-labelMore info:


Intermediary Service

• Aligns the Green Freight Asia Label with other national programs in Asia Pacific

• Connects organisations whose interests and objectives are to accelerate the adoption of sustainable road freight practices

• Sharing of information between public sector (e.g. subsidies and regulations) and private sector

Green Technology and Practice Platform

• Supports the adoption of Green Freight technologies/practices in an effort to bring them to scale

• Creates a platform for freight and technology industries to share information and provide advice

Green Freight Asia – additional services


Green Freight Asia – annual membership fees

500 USD Companies with less than USD 25 million annual revenue

Fee Company size

5,000 USD Companies between USD 250-1,000 million annual revenue

Companies with more than USD 1,000 million annual revenue10,000 USD

1,000USD Companies between USD 25-250 million annual revenue


1-Leaf

2-Leaf

3-Leaf

4-Leaf

500 USD

1,000 USD

save 125 USD from the 2nd time you apply for the same leaf in the same country (renewal)

per 1 GFA Label discounts per 1 GFA Label

save 125 USD when you apply for multiple countries through one application

save 250 USD from the 2nd time you apply for the same leaf in the same country (renewal)

save 250 USD when you apply for multiple countries through one application

* All GFA Label applicants must firstly be registered members of GFA

Label refers to a GFA Label application for one legal entity and country.

USD is used as reference currency. The GFA Label Assessment Partner applies the exchange rate of the day of the order (received from the applicant) to convert the USD amount into the amount of the currency that the GFA Label Assessment Partner and applicant agreed to.

Green Freight Asia – label fees


Any Questions?


We encourage interested parties to get in touchand learn about the relevant engagement options

Documents

Green Freight Asia Presentation f - BSR · GREEN%FREIGHTASIA | 2 | Green%Freight%Asia%– who%we%are% Green%Freight%Asiais%anindustry1led%networkfocusedondriving% sustainableroad%freight%in%AsiaPacificto