Our vision for sustainable transport at InterfaceFLOR Europe
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3 InterfaceFLOR’s seven fronts of sustainability 1. Eliminate waste 4. Closing the loop 6. Sensitising stakeholders Eliminating the concept of Redesigning processes and Creating a community within waste, not just incrementally products so that all resources and around InterfaceFLOR that reducing it. used can be recovered and understands the functioning reused, closing the technical or of natural systems and our 2. Benign emissions natural loop. impact on them. Focusing on the elimination of molecular waste emissions. 5. Resource-efficient 7. Redesign commerce Eliminating waste streams that transportation Redesigning commerce have negative or toxic effects Transporting all of our people to focus on the delivery of on natural systems. and products efficiently and service and value instead of with minimal waste and material. Encouraging external 3. Renewable energy emissions. This includes organisations to create Reducing our energy demands plant location, logistics and policies and market incentives. while substituting non- commuting. renewable sources with renewable ones like solar, wind and landfill gas.
4 Just the facts our vision for sustainable transport at InterfaceFLOR Europe Transport at InterfaceFLOR Europe Our transport can be divided into two main categories: international transport and national distribution. International transport • Inter-company transport of semi-finished products from factory to factory. • Line-haul transport of finished carpet tiles from factory to national distribution centres. National distribution • Transport of products from national distribution centres to our customers
5 InterfaceFLOR has three factories in Europe and national distribution centres in all our major markets. • Craigavon, Northern Ireland • Shelf, England • Scherpenzeel, the Netherlands London and Paris are our two largest city markets and account for the most significant proportion of our transport impact due to the high volume of distribution. Peripheral regions such as Spain or Scandinavia also have a relatively high impact on international transport due to the relatively long distances from our factories.
6 Just the facts our vision for sustainable transport at InterfaceFLOR Europe Understanding our transport impacts
7 We conducted a study in 2008 to establish an accurate baseline for our current performance and quantify opportunities to reduce our transport impacts. The main aim was to develop a tool to measure and monitor transport emissions. Monitoring our impacts gives us a better understanding of the factors that influence our transport emissions levels and enables us to work with our logistics partners to identify areas where we can improve our performance. To calculate the environmental impact of our distribution we collected data on the amount of goods transported, the total distance travelled by our goods and the environmental performance of each mode of transport. We collected data internally and from our logistics partners to calculate transport impacts per m² of carpet delivered. Our current performance is 0.3 kg CO2/m² of carpet delivered.
8 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts Following a review of our entire distribution network, we have identified several areas where we can reduce our transport impacts: 1. Manufacturing regionally demand is growing, we are Sharing transport space with Cutting the distance that our developing local manufacturing goods for other companies products have to travel is one facilities. For example, new rather than sending dedicated of the most effective methods factories were recently trucks or containers for our of reducing our transport completed in China and Uruguay. products can significantly impacts. increase efficiency, particularly 2. Improving load factors for national distribution where In Europe over 99% of Empty and underutilised freight capacity is typically the products sold are vehicles dramatically reduce used less efficiently. This also manufactured in Europe. transport efficiency. A 2009 helps to avoid trucks delivering report by the World Economic our products coming back In addition, the majority of empty. Forum found that 24% of our raw materials by weight freight vehicles in the EU run are sourced from suppliers empty. The research also close to our factories. This found that the rest run with an is especially important for average load of only 57% of heavier raw materials such as capacity (load factor), giving an limestone. overall efficiency of just 43%. Our commitment to regional The report estimates that this manufacturing is not limited inefficiency costs the 27 EU to Europe. As we expand into countries 22 billion a year – emerging markets, where 1.2% of GDP.
9 In the Netherlands, where we have switched from dedicated to grouped delivery, the fill rate of our trucks have increased from 38% towards 60%. Our international line-haul transport uses Groupage, a service that enables us to share space with other goods for international shipping from our factories to national distribution hubs. Load factors are one of the criteria in the annual questionnaire sent to all our logistics partners, and we welcome ideas on how to improve these. We are also looking for ways to pack more products per truck. This is challenging because our products are heavy and their size means the pallets we use are not the standard dimensions (1,06m x 1,06m).
10 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts Now, orders heavier than three tonnes (around three pallets) are transported Scherpenzeel, Netherlands directly to the customer from our factory in Lille, France Scherpenzeel, the Netherlands. Paris, France There will still be some detouring for small orders (for example, from Scherpenzeel to Paris and back to a customer Optimised delivery route in Lille or Strasbourg), but a Delivery route balance needs to be made in order to avoid small orders 3. Optimising delivery routes travelling long distances on potentially empty trucks. Our products do not travel in a We are working to cut the straight line from our factories amount of de-touring in our Since 2009, deliveries to our customers. Their journey distribution network. In France, of over 1.5 tonnes also is determined by transport for example, all our goods dispatched directly from networks and the location of used to go via our hub in Scherpenzeel to customers national distribution hubs. The Paris because the Paris area in Germany and Austria amount our routes deviate from accounts for around half our In our other major markets, a straight line is called sales in the country. However, such as the UK and Spain, ‘de-touring’. Reducing de-touring this often added unnecessary we are looking for similar can cut environmental impacts mileage. opportunities to reduce of transport, especially for detouring and encourage our larger orders. logistics partners to help us meet our goals.
11 potential reductions in CO2 and Once vehicle efficiency NOX emissions which affect is optimised, the climate change, as well as biggest opportunities for particulates which contribute to InterfaceFLOR are the use of local air pollution. second generation biofuels and hybrid or electric vehicles. ‘Megatrucks’ can improve These are areas where we the efficiency of transport by expect our logistics partners moving more goods per trip, to innovate to cut impacts reducing the overall number dramatically. We look forward of trips needed. However, to new ideas and projects they are not accepted in 4. Using cleaner fuels and to improve efficiency and all European countries emissions of vehicles. For more efficient vehicles and weight restrictions on example, we are exploring Cleaner, more efficient and individual vehicles make the options with our transport alternative vehicles are the use of megatrucks difficult for company in the UK to test most effective way to reduce InterfaceFLOR because our trucks that run on bioethanol. our transportation impacts. carpet tiles are heavy. We are also in discussion with Improved vehicle efficiency, Manufacturers are continually our logistics partners to invest alternative vehicles and the improving the efficiency in hybrid delivery vehicles in use of biofuels will bring the of regular trucks and Paris and London in the future. biggest reductions in CO2 improvements in aerodynamics emissions, according to the and rolling resistance are European Commission. expected to make new vehicles The table on page 14 shows 30% more efficient by 2020. the potential savings that could But there are limits to what can be achieved by implementing be achieved through efficiency a range of new technologies gains while still using fossil or fuels in trucks. It shows the fuels.
12 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts Measures to reduce the environmental footprint of truck transport Material Effect on carbon dioxide Effect on nitrous oxide Effects on particulates (CO2) emissions (NOX) (PM10) 1 Natural gas -3% to -10% -80% -40% 2 Replacement of Euro 1-3 by Euro 5 - -65% to -70% -80% to -95% 3 Retrofit particulate filters on Euro 2/3 +1.5% - -20% to -40% 4 Megatrucks/ Ecocombi -22% -25% -25% 5 Hybride drive -15% to -40% Locally - 100% Locally - 100% Overall 0% Overall 0% 6 Electric drive (for distribution) -3% to -10% Locally - 100% Locally - 100% Overall -70% to -90% Overall -90% to -95% 7 Biofuels +10% to -140% - - The use of hybrid vehicles For the same reason, electric The EU road transport sector reduces the amount of diesel vehicles can significantly reduce accounts for more than 30% of used by running off a battery local air pollution. However, their the total energy consumption which is recharged using energy potential to cut carbon emissions in Europe. It is currently 98% lost in braking. When running depends on the source of the dependent on fossil fuels and in electric mode, there are also grid electricity used to charge the EU has set a target for 25% no particulate emissions. This them. Based on the average of transport fuel needs to be reduces local air pollution, carbon intensity of EU electricity met by biofuels by 2030. especially important in production, electric vehicles can Biofuels are a renewable populated areas. achieve savings of about 40% energy source and a lower- compared with fossil fuels. carbon alternative to fossil
13 fuels. The key to achieving these Key EtOH: Sugar cane (Brazil) targets lies in what are known Conventtional gasoline EtOH: Wheat straw as ‘second generation’ biofuels Conventional diesel EtOH: Wheat, NG GT+ CHP, DDGS as AF as they require less chemical Syn-diesel: Farmed wood RME: Gly as chemicals and energy input and typically Syn-diesel: Waste wood, Black lquor DME: Waste wood, Black liquor produce more fuel per unit of agricultural land used. These Fuels 2010 (source EUCAR/CONCAWE/JRC are produced from cellulosic materials (such as straw or plant waste) rather than the starchy 180 part of plants which could compete with food crops. 160 InterfaceFLOR supports the WTW GHG emissions 9g CO2eq / km) 140 use of second generation biofuels such as: 120 • Biomass to Liquid (BtL) • Cellulosic ethanol 100 • BioDME/Methanol • BioSynthetic Natural Gas 080 (BioSNG) • Bio-oil/Bio-crude 060 • Algal biofuels • Hydrocarbons from catalysis 040 of plant sugars • Biohydrogen 020 • Bioelectricity/CHP • Biobutanol 0 100 200 300 400 500 600 Total WTW energy (MU / 100km)
14 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts CO2 (g/tonne-km); containers/non-bulk; short distance; 2010 160 140 120 100 080 060 040 020 to k tru ted ric n se n EU . TE . 2T ip 6 hip 0 c ct rai ie ai n ck ) l) ) U) >2 tru (3 l. sh (d Tr la T (9 l. s cu d In In gi le rti Ri (e A CO2 (g/tonne-km); containers/non-bulk; long distance; 2010 5. Shifting to lower carbon transport (multimodal) 160 140 Shifting loads from trucks to 120 other modes of transport – 100 such as trains, inland barges 080 and short sea shipping – for 060 part of the journey can reduce 040 CO2 emissions. The EU goal 020 is for 30% of road freight travelling over 300 km should shift to other modes such as to k tru ted ric n se n TE ip. TE ip. TE ip. TE ip. TE . 0 hip 0 c ct ai ie ai rti n ck ) l) U) U) U) U) U) >2 tru 00 sh 70 sh 50 sh 80 sh le Tr (d Tr la 90 s rail or waterborne transport (2 nl. (4 Inl. (1 ea (5 ea (1 Sea cu d gi I S S Ri by 2030. (e A Note: Short distance transport applies to trips of around 150 km
15 We have already made a transported to the port at transport to several countries number of changes to the way Rotterdam by road. in Eastern Europe. We are we transport goods. also looking into the possibility By transferring goods to a of using ships from the port In Italy, for example, we barge for part of this journey of Rotterdam to places such have transferred 98% of our (between Rotterdam and as Bilbao in Spain or Saint shipments from road to rail, Utrecht), we have cut CO2 Petersburg in Russia. reducing CO2 emissions emissions by 39% associated with the Our goal is for 10% of our We are looking for more products (by volume) to be journey from Scherpenzeel opportunities to reduce to Italy by 69%. distributed using multimodal road mileage by shifting to transport by 2015. In the Netherlands, products multimodal transport. We are from our site at Scherpenzeel investigating opportunities have traditionally been to use rail for international
16 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How to reduce our transport impacts 6. Promoting regular 7. Understanding the will allow us to make better training for drivers impacts of every m2 of and faster decisions on our products our transport to optimise Training truck drivers in efficiency. This will help fuel efficient driving can Introducing the Eyefreight us monitor and reduce cut emissions by up to 5%. system will allow us to track, environmental impacts. We encourage our logistics among other things, the partners to provide such environmental footprint of 8. Collaboration with training for their drivers. This each individual delivery. The other companies is one of the criteria in our system will act as a portal supplier questionnaire and for our European distribution Our impact on transport is most of our partners already and will track order intake, very small in comparison with train their drivers regularly. service level, freight costs other multinational companies. We will continue to raise and environmental footprint. We cannot achieve our vision awareness on this. This granularity of information for sustainable transport if
17 there is not demand for green solutions by bigger companies. Influencing other companies is a key part of our Mission Zero and our transport strategy. We are working with other multinationals to develop and share ideas on sustainable transport as well as creating market demand through the Duurzame Logistiek (Sustainable Logistics) programme, which supports 250 leading companies in the field of sustainable transportation of goods. Its aim is to increase the profitability of companies and simultaneously reduce CO2 emissions by more than 20% by 2012. More information on how InterfaceFLOR is working with other companies to reduce the impact of our product transportation is available at www.duurzamelogistiek.nl.
18 Just the facts our vision for sustainable transport at InterfaceFLOR Europe Our goals for sustainable transport These are the targets set up by the preliminary transport vision of the European Union. Influence factors Target for Sensitivity 2020 2035 2050 GHG FFS 1 Stabilizing the increase of tkm Max. +30% Max. +43% Max. +44% N/A N/A 2 Decreasing vehicle energy -20% -40% -50% 88% - demand 3 Reducing carbon emissions in -37.5% -61% -88% 55% 22% electricity production 4 Electric engines in road transport 0% 10% 25% 41% 5% 5a Increase share biofuels 8% 24% 33% 38% 30% 5b Biofuels upstream emissions -35% -83% -83% 6 Increased efficiency in usage +8% +30% +50% 25% - of veh 7 Improved engine efficiency +21% +40% +45% 21% 2% 8 Higher modal share of Road 75% Road 70% Road 65% 7% - rail ad IWW Rail 19% Rail 22.5% Rail 25% IWW 6% IWW 7.5% IWW 10% 9 Increased share of electrical rail 66% 75% 80% 3% - 10 Usage of larger trucks 2% 8% 10% 2% -
19 By 2015, our vision for Our goals do not stop at InterfaceFLOR in Europe 2015. The table outlines the is this: vision of the European Union on transport for 2020, 2035 • Efficiency is down from and 2050. We seek to be an average of 0.3kg CO2 /m2 well ahead these targets, of carpet delivered to and demonstrate to other 0.2kg CO2 /m2 companies that it is feasible to • 10% of our total volume is reduce environmental impacts intermodal from transport significantly. • 90% of vehicles used in our To achieve our vision on transport is in top Euro Class sustainable transport, we for tailpipe emissions need the support of all our stakeholders. We encourage • 85% of our transport our logistics partners to suppliers are ISO 14001 develop more sustainable certified transport solutions and we are continuing to work with • All forwarders regularly train industry and other companies their drivers on efficient to help drive change within driving the sector.
20 Just the facts our vision for sustainable transport at InterfaceFLOR Europe How does Mission Zero affect our relationship with transport companies? Q&A with David Kers, European Distribution Manager As a transport company, how can I do business for InterfaceFLOR? We select logistics service providers who can help us in our quest to launch a sustainable European distribution organisation and eliminate any negative impact our distribution activities may have on the environment by 2020, in order to reach Mission Zero. Our European distribution model is based on the 4 P’s; Performance (service), Planet, People and Profit. We have developed a supplier assessment model in which our suppliers are assessed on criteria linked to these 4 P’s. Examples of these criteria are: Green Fleet composition, driver training programmes, experience with alternative fuels, profitability etc.
21 How do you ensure the How would you like to What would be your economic sustainability of manage your suppliers? perfect supplier? your transport suppliers? The relation with our The perfect supplier would be Being financially healthy in logistics service providers the supplier that will help us terms of profit and cash flow is based on a performance in realising our Mission Zero. is important for a logistics partnership, where we focus Besides focusing on Service service provider, to become on continuous improvement and Quality, this supplier and stay a sustainable projects. We challenge our will have a strong focus on company. In close cooperation logistics service providers innovation (technological and with our logistics partners we to do better every day. Our social), can adapt to short want to change the European transport management and mid-long term changes transportation market from a system “Eyefreight” enables in the market place and is short term leverage market to us to monitor our KPI’s on demonstrating commitment a long term sustainable market (Service) Performance, Profit to become a sustainable focusing on the 4 P’s. Market and Planet. Annually targets partner. Sustainability developments and financial for KPI’s will be agreed and should be a key element in performance of our logistics the progress on these KPI’s their strategy. Our perfect service providers are reviewed is reviewed in our quarterly suppliers will be or become on a quarterly basis. Through review meetings. leaders in the sustainable collaboration we focus on European transportation eliminating supply chain costs. market, implementing new sustainable logistics concepts, for example: multi modal transportation and trucks using alternative fuels.
22 If you want to know more, please go to www.interfaceflor.eu/transport For more information about our products please visit www.interfaceflor .eu
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