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Handbook on Applying Environmental Benchmarking in Freight Transportation (2012)

Chapter: Appendix B - Benchmarking Programs

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Page 63
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
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Page 64
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
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Page 64
Page 65
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
×
Page 65
Page 66
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
×
Page 66
Page 67
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
×
Page 67
Page 68
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
×
Page 68
Page 69
Suggested Citation:"Appendix B - Benchmarking Programs." National Academies of Sciences, Engineering, and Medicine. 2012. Handbook on Applying Environmental Benchmarking in Freight Transportation. Washington, DC: The National Academies Press. doi: 10.17226/22668.
×
Page 69

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63 Benchmarking Programs A p p e n d i x B Exhibit B-1. Freight environmental benchmarking and other related programs. Program Brief Description, Cost, and Link EPA SmartWay Transport Partnership EPA developed SmartWay Transport—an innovative collaboration between the freight industry and government to reduce air pollution and greenhouse gas emissions, improve fuel efficiency, and strengthen the freight sector. SmartWay Transport's goals are to reduce the impact of freight transport on the environment and to help partners see the rewards to their businesses. Working together, the partnership will reduce Fuel consumption from trucks and rail delivering freight, Operating costs associated with freight delivery, Emissions of CO2, and Emissions of NOx, PM, and air toxics. Cost: Free http://www.epa.gov/smartway/transport/index.htm Clean Cargo Working Group, Business for Social Responsibility Connect with 27 leading multinational manufacturers (shippers) and freight carriers and forwarders (carriers) dedicated to integrating environmentally and socially responsible business principles into transportation management. Gain access to the work, tools, and best practices of the group developed over the last 8 years, including a customized, intermodal CO2 calculator and performance survey results. Cost: Unknown fee associated http://www.bsr.org/consulting/working-groups/clean-cargo.cfm American Society of Quality (ASQ) Offers two benchmarking options: technical and competitive. Although these are not specifically focused on environmental issues, the most relevant is competitive. Through ASQ’s competitive benchmarking process, organizations and businesses can compare how well (or poorly) they are doing with respect to the leading competition, especially with respect to critically important attributes, functions, or values associated with the organization’s products or services. Sample questions asked of participating organizations include, “On a scale of one to four, four being best, how do customers rank your organization’s products or services compared to those of the leading competition?” If organizations cannot obtain hard data, marketing efforts may be misdirected and design efforts misguided. ASQ certification required, for a fee http://www.asq.org/learn-about-quality/benchmarking/overview/overview.html Eco Responsible Packaging Program, UPS, Inc. UPS, Inc. has launched a service it says will evaluate customers’ packaging processes based on environmental standards and give a score from its assessment. Under the Eco Responsible Packaging Program, UPS will rate packaging based on damage prevention, the sizing of packaging, and the materials used in the packaging, for shippers who join the program. UPS will then give the shipper a score, and if the shipper meets the program's requirements, the company will allow it to use the program's logo on its packaging. (continued on next page)

64 Handbook on Applying environmental Benchmarking in Freight Transportation Program Brief Description, Cost, and Link The assessment program can drive critical improvement with a detailed roadmap from industry experts. Companies can track performance with customized reports comparing individual fleet performance against best-in-class operations. Cost: Unknown fee associated http://www.nptc.org/index.php?option=com_content&task=view&id=548&Itemid=379 Carbon Disclosure Project The Carbon Disclosure Project is an independent not-for-profit organization holding the largest database of primary corporate climate change information in the world. Thousands of organizations from across the world’s major economies measure and disclose their greenhouse gas emissions, water use, and climate change strategies through CDP. https://www.cdproject.net/en-US/Pages/HomePage.aspx Truckload Carriers Association Benchmarking Program TCA, with the assistance of the company Decisiv Best Practices, conducts a benchmarking program that enables truckload carriers to compare operating benchmarks and identify best practices that contribute to superior performance. Participating carriers are segmented into groups of 12 to 20 companies according to carrier specialties (e.g., refrigerated, dry van, flatbed). Every month, participating carriers submit their financial statements to Decisiv, which in turn produces a financial composite that ranks the carriers according to key factors. Decisiv sends each member a copy of its group's composite that contains the comparative statistics compiled from their statements. The groups meet three times per year for a period of 1 to 2 days each to share their best practices and processes that aid them in reducing costs and improving efficiencies. Environmental performance is not an explicit focus of this benchmarking initiative, but the program monitors fuel efficiency as an operating metric and thus has relevance to air emissions. Supply Chain Consortium Tompkins Supply Chain Consortium is a supplier of supply chain benchmarking and best practices knowledge. With more than 500 participating retail, manufacturing, and wholesale/distribution companies, the consortium sponsors a comprehensive repository of 17,000-plus benchmarks complemented by search capabilities, online analysis tools, topic forums, and peer networking for supply chain executives and practitioners. The program focuses on operations, but includes metrics relevant to environmental benchmarking. Dow Jones Sustainability Index The Dow Jones Sustainability Indexes were launched in 1999 as the first global sustainability benchmarks. The indexes are offered cooperatively by SAM Indexes and Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC. The family tracks the stock performance of the world's leading companies in terms of economic, environmental, and social criteria. The indexes (1) serve as benchmarks for investors who integrate sustainability considerations into their portfolios and (2) provide an effective engagement platform for companies who want to adopt sustainable best practices. American Productivity and Quality Center (APQC) APQC is the leading source for best practices and performance benchmarks. APQC has one of the world’s largest databases that is based on more than 8,500 benchmarking and best-practice studies. Although not specifically focused on environmental issues, some of APQC’s productivity metrics are relevant to environmental performance. International Organization for Standardization ISO (International Organization for Standardization) is the world's largest developer and publisher of international standards. The ISO 14000 family of standards addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO 14031 deals with environmental performance evaluation. These standards are applicable to designing appropriate benchmarking measures and managing environmental performance. The three areas on which the program focuses center on environmental sustainability, UPS said. The service is contractual, and pricing is determined on a project basis. Cost: Free Relevant Article in Transport Topics: http://ttnews.com/articles/basetemplate.aspx?storyid=24219 UPS Site: http://www.ups.com/ecoresponsible?srch_pos=1&srch_phr=eco+responsible+packaging+program Private Fleet Assessment Program The NPTC Private Fleet Assessment Program delivers information needed to optimize the performance of a private fleet. Businesses can benchmark fleet operations with an interactive, Web-based, confidential resource, using world-class standards derived from hundreds of industry benchmarks and subject matter experts. The program allows firms to improve performance, measuring 40 key metrics across eight pillars: safety and fleet organization, network planning, customer management, fleet management, information management, driver management, continuous improvement, and financial management. Exhibit B-1. (Continued).

Benchmarking programs 65 Program Brief Description, Cost, and Link Transport Canada, ecoFreight The ecoFreight program is intended to help the freight sector in finding solutions to help reduce GHG emissions, thereby contributing to meeting Canada's target of a 20 percent reduction in GHG emissions by the year 2020. As part of this program, the Canadian government and several freight industry associations have established voluntary agreements with emission reduction targets, action plans to achieve those targets, and mechanisms for reporting on progress. The Air Transport Association of Canada has agreed to assist its members to improve their energy efficiency by an average of 1.1 percent a year. Through the Railway Association of Canada, the major Canadian railroad companies agreed to meet aggregate GHG emissions intensity levels (emissions per productivity unit). Cost: Free http://www.tc.gc.ca/eng/programs/environment-ecofreight-about-voluntary- voluntaryagreementsrail-83.htm and http://www.tc.gc.ca/eng/programs/environment-ecofreight-about-voluntary-racemissions2007- executivesummary-382.htm Clean Transport (Transporte Limpio), SEMARNAT, Mexico Sister program to US SmartWay program. Clean Transport is a voluntary national program developed by the Department of Environment and Natural Resources (SEMARNAT), the Ministry of Communications and Transport (SCT), the National Commission for Energy Efficiency (CONUEE), and industry representatives with the aim of transporting cargo and passengers traveling on the country's roads. Goals are to reduce: 1. Fuel consumption, 2. Emissions of greenhouse gases and criteria pollutants (NOx and PM10), and 3. Operating costs of transport. This is achieved with the adoption of strategies, technologies, and best practices that make transport more efficient, safe, and sustainable, thus enhancing the competitiveness of the sector. Cost: Free English Translation of Semarnat Site: http://www.semarnat.gob.mx/English/Pages/home.aspx English Translation of Clean Transport Site: http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF- 8&sl=es&tl=en&u=http://app2.semarnat.gob.mx/Transporte/&rurl=translate.google.com&twu=1&u sg=ALkJrhiiUWYVxzqWb8VCdQdRswNpoKpYuQ# Sustainability Covenant, Victorian Transport Association, Australia Australian-based “SmartWay” program launched in September 2009. Designed for VTA member companies and other freight-related business to Recognize industry leadership and excellence in achieving sustainable outcomes. Enhance the development and application of sustainability measurement tools in the freight and logistics industry. Build capacity among VTA members and other freight-related businesses to integrate sustainability principles and continuous improvement processes into core business practices. Encourage innovation and information on sharing in the industry on best practices to achieve sustainability outcomes. Identify new services or initiatives that the parties can develop to reduce the freight sector’s overall contributions to air pollutant emissions and greenhouse gases. Identify opportunities and appropriate mechanisms to encourage waste avoidance and waste reduction and improve overall resource efficiency. Cost: Free http://epanote2.epa.vic.gov.au/EPA/Publications.nsf/2f1c2625731746aa4a256ce90001cbb5/b19c 9bfc0e3bcc73ca25760200254e5c/$FILE/1295.pdf EPA Victoria Main Website: http://www.epa.vic.gov.au/ Exhibit B-2. International freight environmental benchmarking programs. (continued on next page)

66 Handbook on Applying environmental Benchmarking in Freight Transportation Exhibit B-2. (Continued). Program Brief Description, Cost, and Link Natural Resources Canada, ecoENERGY for Fleets ecoENERGY for Fleets is a program, offered by Natural Resources Canada, introducing fleets to energy-efficient practices that can reduce fuel consumption and emissions. Members have access to training and education tools that help owner-operators, commercial and institutional fleet owners, and managers improve the energy efficiency of their operations, which include the following: SmartDriver training provides a unique combination of knowledge sharing, coaching, and/or on-the-road training. The Fuel Management 101 workshop is designed to help the fleet managers prepare a fuel management plan, implement the plan, and measure and monitor its success. Members receive the FleetSmart on the Road newsletter. Web tools offer support to assist with energy efficiency practices and techniques. One study, Fuel Efficiency Benchmarking in Canada’s Trucking Industry, surveyed private and for-hire trucking fleets based in Canada, focusing on transport fleets operating Class 7 and 8 power units. It aimed to measure the effectiveness of fuel efficiency benchmarking in an effort to help the inter-city trucking industry further reduce its energy consumption and curb GHG emissions. This survey confirmed that fuel efficiency benchmarking is an important and valuable exercise. Cost: Free ecoENERGY for Fleets Main Page: http://fleetsmart.nrcan.gc.ca/index.cfm?fuseaction=docs.view&id=5 Supporting tools: http://fleetsmart.nrcan.gc.ca/index.cfm?fuseaction=fleetsmart.fuel&attr=16 Fuel Efficiency Benchmarking Study: http://fleetsmart.nrcan.gc.ca/index.cfm?fuseaction=docs.view&id=2 U.K. Freight Best Practice Program Freight Best Practice is funded by the U.K.’s Department for Transport to promote operational efficiency within freight operations. The program offers free essential information for truck operators covering the following topics: Fuel saving (fuel efficient truck drivers handbook, fuel saving devices, etc.); Equipment and systems (routing and scheduling, truck aerodynamics, etc.); Performance management (key performance indicators, monitoring CO2 emissions, etc.); Multimodal (multimodal solutions, etc.); and Developing skills (safe driving tips, freight quality partnerships guide, etc.) The program has been extended to the van sector and will be extended to the rail and water freight industries in the future. To take the example of external benchmarking, a series of guides have been produced with information gathered by survey from key players in a range of industry sectors. For each, a separate guide has been produced, presenting the results of the same five key performance indicators (KPIs). These are Vehicle fill, Empty running, Time utilisation, Deviations from schedule, and Fuel consumption. The results provide best-in-class information for the transport manager to use to compare, contrast, and target their own operations. The variations between different operations efficiency can be significant; for example, in the next-day parcel delivery sector, the proportion of empty running varies between fleets from zero to 50 percent of the time. Once the factors that influence this can be understood, they can be used to help managers modify their operations to achieve benefits. The FBPP also provides a mechanism for the fleet manager to accurately measure KPIs within their own fleet or internally benchmark. The program also offers a stand-alone and downloadable Fleet Performance Management Tool. This tool allows carriers to monitor their performance for any number of vehicles over any number of years. In addition to traditional operational performance metrics, it calculates CO2 emissions and will show CO2 emission per kilometer or per unit carried per kilometer (e.g., per ton-km).

Benchmarking programs 67 Program Brief Description, Cost, and Link Energy Saving Trust, U.K. Conducts free Green Fleet Reviews for fleets of over 50 vehicles, as well as providing advice to smaller fleets to help them cut costs and emissions. Works to provide organizations with tailored fleet management advice to help lower running costs, reduce environmental impact, and enhance corporate social responsibility. Funded by the Department for Transport, the Welsh Assembly Government, and the Scottish Executive, Green Fleet Reviews are carried out by specialists with a wide spectrum of experience working with a range of fleets. Includes a calculator that allows fleet operators to calculate savings. Cost: Free Green Fleet Review: http://www.energysavingtrust.org.uk/business/Business/Transport- advice/Advice-for-organisations/Fleets-over-50-vehicles/Green-fleet-consultancy Savings Calculator: http://www.energysavingtrust.org.uk/business/Business/Transport- advice/Calculate-your-fleet-savings Safe and Fuel Efficient Driving (SAFED), U.K. Includes eco-driving for van and heavy goods vehicle (HGV) drivers. This program teaches road skills to help industry increase safety as well as reduce fuel costs and emissions. To date, the program has provided most of the cost of training for 800 instructors; 12,000 HGV drivers; and 7,500 van drivers. SAFED was originally launched in 2003 for drivers of HGVs in England. It was developed with the backing of the Department for Transport (DfT) and has since been extended to cover drivers of vans and PCVs (Category D only) and to HGV and van drivers in Scotland. Government subsidies are currently available to support the cost of training of van and PCV drivers and of HGV drivers in the aggregates sector. Since its inception in 2003, SAFED has trained in excess of 25,000 drivers of commercial vehicles. It can even form part of the Driver CPC periodic training that is required for HGV and PCV drivers. Over 200 commercial training providers are currently authorized to deliver SAFED on behalf of the official DfT SAFED programs. A significant number of organizations have taken the “in-house” route, with nominated individuals delivering SAFED to their colleagues. Cost: Free through subsidy Main Site: http://www.safed.org.uk/ U.K., Logmark (Chartered Institute for Logistics and Transport) Logmark is the leading logistics and supply chain benchmarking club in the U.K., helping organizations improve efficiency and save money. Logmark can enable a company to confidentially and anonymously measure internal performance with other Logmark member organisations. It enables best practice and business improvements to be identified by comparing “best in class.” It also provides networking opportunities and the option to discuss widespread business challenges in a non-competitive environment. Logmark members can attend quarterly meetings and complete the annual Logmark survey. The survey covers a variety of business operations including: operations, environmental, HR, economic outlook, inventory, business risk, transport, and lean. A recent addition to the program is a new tool called On Line Benchmarking (OLB). This new system, funded by the Department for Transport, allows truck carriers to benchmark their operations externally and anonymously. This tool includes KPIs related to fuel use and CO 2 emissions. Cost: Free http://www.freightbestpractice.org.uk/ http://www.freightbestpractice.org.uk/performance-management Freight Best Practice Online Benchmarking: http://www.onlinebenchmarking.org.uk/ Van Best Practice Program: http://vanbestpractice.businesslink.gov.uk/cms/ Exhibit B-2. (Continued). (continued on next page)

68 Handbook on Applying environmental Benchmarking in Freight Transportation 29http://www.epa.gov/smartway/transport/documents/international/gerald-lalevee-france.pdf 30http://www.epa.gov/smartway/transport/documents/international/gerald-lalevee-france.pdf Program Brief Description, Cost, and Link ADEME also funded the development of an online benchmarking tool called ConsoComparateur, which allows carriers to calculate the fuel efficiency of individual driver-truck pairs to reference values for similar vehicles in similar operating conditions. Cost: Free to join http://www2.ademe.fr/servlet/KBaseShow?sort=-1&cid=96&m=3&catid=22274 PowerPoint Overview of Program: http://www.climatetransact.eu/Objectif%20CO2.pdf Japan, Green Distribution Partnership In Japan, the Energy Conservation Law obliges large shippers and carriers (more than 200 trucks) to improve the energy efficiency of their operations by 1 percent annually. They have to submit an Energy Saving Plan once a year and to report their annual energy use. Japan’s Green Distribution Partnership was established in 2005 to promote cooperation between shippers and carriers. This partnership includes the promotion of best practices, the establishment of a calculation method for CO2 emissions, and recognition of efforts. Advanced logistics models and freight consolidation projects are funded by the program. The program is managed by the Japan Institute of Logistics Systems; Japan Federation of Freight Industries; the Ministry of Economy, Trade and Industry (METI); the Ministry of Infrastructure, Transport and Tourism (MLIT); and the Japan Business Federation (Nippon Keidanren). The program has about 2,900 members, including carriers, shippers, and related associations. Cost: Free www.greenpartnership.jp English Article: http://www.japanfs.org/en/pages/026766.html Each Logmark member then receives a confidential, tailored report based on the questions they elected to complete. The report details the average, maximum, minimum, and median responses to each question. Cost: Fee associated with becoming a Logmark Member http://www.ciltuk.org.uk/pages/logmark France, Charter of Voluntary Commitments to Reduce CO2 Emissions The Charter of Voluntary Commitments to Reduce CO2 Emissions was developed by the Ministry of Ecology and ADEME (French Environment and Energy Management Agency), in collaboration with the main professional organizations and 15 carriers.29 It allows all carriers, regardless of their size and business, to commit to 3 years in a concrete action plan and customized to reduce fuel consumption and hence emissions of CO2 (the main greenhouse gas). This approach provides companies with a consistent methodological framework, reliable and nationally recognized within the framework of the activities of the Centre for Energy Environment Transport. The program does not yet rank or rate carriers based on environmental performance, but it is working toward that goal. The program is working on a future environmental label for rewarding companies that have a level of environmental performance above average and ranking them according to their level of performance.30 Netherlands, Sustainable Logistics Innovation Program Considered to be a version of the European SmartWay approach. It evaluates ITS, travel information standards for public transport, and logistics. The companies involved in the program are leaders in the network of shippers, carriers, and municipalities in the Netherlands. Exhibit B-2. (Continued).

Benchmarking programs 69 Program Brief Description, Cost, and Link Productivity, UIC (Paris, France) background of the study was that, over the last years, the competition in the rail freight sector has been increased by the entrance of new private freight companies as well as that incumbent railways expanding their market into an international level. The increased competition has increased the pressure on the railways to reduce costs as well as improve their performance and productivity. The project, Benchmark Freight Productivity, compares, in a bird’s eye view, the strengths and weaknesses between the participating railway undertakings, with the aim of identifying areas for improvement. The clusters with which the railways compared their productivity were trains, wagons, locomotives, and personnel within the single wagon load and block train transports. The study will be offered to the members on a yearly basis. This will enable the railways to measure the impact of production changes between 2 years. Cost: Member fee associated http://uic.asso.fr/spip.php?article1917 The freight transport strategy includes ensuring access to and from the main ports, stimulating the industry to improve supply chain management competences, reconciling mobility and environment objectives, and programming sustainable logistics. GHG emissions are measured using a “C02 Ruler,” which provides a conceptual reporting scheme to show how participants compare to other co-transporters. Cost: Free to join the network Main website (in Dutch): www.duurzamelogistiek.nl Overview Presentation: http://www.climatetransact.eu/Sustainable%20logistics%20in%20the%20Netherlands.pdf Finland, Energy and Environmental Accounting and Reporting System A voluntary program on energy efficiency in freight transport and logistics was started in 2007 by the Ministry of Transport and Communications, Ministry of Employment and the Economy, Ministry of the Environment, Finnish Transports and Logistics Association SKAL, Association of Logistics Companies, and VR Group Ltd (Finnish Railways). The goal is to have 60 percent of companies commit to this voluntary partnership. The program is focused on road and rail transportation and related logistics. This agreement also applies to rail carriers. An integral part of achieving these reductions is measuring improvements through an effective measurement and monitoring system based on emission data collection, analysis, and reporting. The objective is to implement measures that would save fuel consumption in road and rail transport and related logistics. Stakeholders in the program are Transport users (shippers), Road and rail transport companies, and Public authorities. This program is supported by the EMISTRA tool. The EMISTRA System is a useful and affordable tool for the transport of energy consumption and emissions monitoring and reporting. By using it, Finnish companies can determine their specific energy consumption and vehicle emissions. Carriers can also compare the results of their own activities to the average results obtained from EMISTRA’s statistical database system. The EMISTRA System produces a company database with summary information on a variety of characteristics, including emissions and environmental reports on a schedule specified by the company. It also provides a summary of the individual company’s performance relative to all companies included in the database. This enables companies to benefit from benchmarking techniques across the entire transport mode. Cost: Free for any Finnish company http://www.emistra.fi/index_emistra.asp Statistical Database: http://translate.googleusercontent.com/translate_c?hl=en&sl=fi&tl=en&u=http://www.emistra.fi/lj/E mistra/emi/reports/index.asp&rurl=translate.google.com&twu=1&usg=ALkJrhg2SJc- lJxksRrjpmIvsQ1RO-AEFg Benchmark Freight During 2008, UIC offered their members to participate in a rail freight benchmark study. The Exhibit B-2. (Continued).

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TRB’s National Freight Cooperative Research Program (NFCRP) Report 21: Handbook on Applying Environmental Benchmarking in Freight Transportation explores how benchmarking can be used as a management tool in the freight and logistics industry to promote environmental performance.

The report provides a step-by-step overview of the benchmarking process and describes a framework for applying this process to freight carriers, shippers, and freight hubs.

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