Our vision for sustainable transport at InterfaceFLOR Europe

 
Our vision for sustainable transport at InterfaceFLOR Europe
1

    Our vision for sustainable transport
         at InterfaceFLOR Europe
Our vision for sustainable transport at InterfaceFLOR Europe
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    Just the facts our vision for sustainable transport at InterfaceFLOR Europe
Our vision for sustainable transport at InterfaceFLOR Europe
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.
Our vision for sustainable transport at InterfaceFLOR Europe
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
Our vision for sustainable transport at InterfaceFLOR Europe
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.
Our vision for sustainable transport at InterfaceFLOR Europe
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    Just the facts our vision for sustainable transport at InterfaceFLOR Europe

    Understanding our
    transport impacts
Our vision for sustainable transport at InterfaceFLOR Europe
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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.
Our vision for sustainable transport at InterfaceFLOR Europe
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    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.
Our vision for sustainable transport at InterfaceFLOR Europe
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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).
Our vision for sustainable transport at InterfaceFLOR Europe
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     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.
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                                   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.
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     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
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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)
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     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
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     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

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            >2 tru

                                         00 sh

                                         70 sh

                                         50 sh

                                         80 sh
             le Tr

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                                                                                         rail or waterborne transport
                                       (2 nl.

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                                                                                         by 2030.
          (e
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     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.
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     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%            -
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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.
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     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.
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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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