CONTRACT LOGISTICS& THE ENVIRONMENT

The environment, an important factor of KNs

business strategy.

What do we focus on to reach our yearly

targets?

The tools we use to be more

environmentally-friendly

Measure

Improve

Implem

ent

Comm

unicate

Ensure

Measuring KN’s environmental impact! Yes, but how?

Environmental aspects

Carbon footprint & the GFCC

Targets for 2013

What are KN’s main focuses when setting yearly targets?

Environmental aspects

Electricity and Gas:Usage for:

Lighting, heating, battery-charging, air conditioning,

ventilation, computers, other office facilities (e.g printers,

photocopiers, etc..)

Transport:Fleet of vehicles with many

environmental impacts:Depletion of scarce

resources, Co2 emissions & other emissions leading to

smog and acid rain.

Water:Anything harmful that enters

the surface water drains may pollute streams, rivers

and kill wildlife.

Noise:Noise can have a significant effect on local

communities.

Disposal Only where all other alternatives have been exhausted

Energy recoveryUse of waste as an alternate source of fuel

Recycling- Source segregation of materials - Separation of waste types required by law (Animal by products, Liquids,

Hazardous Waste)- Mechanical or Biological separation of waste

ReuseReturn and refill schemes: Printer Cartridges, bottle/can deposit schemes, etc

Prevention• Damage reduction• Stock control and rotation• Culture Awareness

Minimization

WASTE MANAGEMENT HIERARCHYHow does it work?

Pollution ManagementPollution Risk assessment

The consequences of environmental breach are not just financial. A firm’s reputation is some of the highest risks and could be essential for the survival of a business.

Therefore it is crucial to understand the environmental

aspects on our sites.

What is Pollution? It is the release of chemical, physical, biological or

radioactive contaminants to the natural environment that causes instability, disorder, harm or discomfort to our ecosystem.

The center piece of KN‘s Environmental Management System

Establish an appropriate environmental policy,

Identify the environmental aspects in order to determine the environmental impacts of significance,

Identify applicable legal and other requirements to which the organization subscribes.

Identify appropriate environmental objectives and targets,

Establish a structure and a programme(s) to implement the policy and achieve objectives and meet targets,

Perform audits and take preventive and corrective actions to ensure both that the policy is complied with and that the environmental management system remains appropriate.

Contract Logistics targets for 2013 !K+N UK’s strategy is to deliver growth through innovation. By converting new and innovative ideas into win/win solutions for ourselves and our customers we create real value.

15% reduction / FTEand

15% reduction / m2

Premises C02 emissions

1% improvement each year

Fuel

I

Increase recycling by 40%

RecyclingAt least 30 new ISO14001 certified sites globally &

100% successful renewals of current certifications

ISO 14001

Kuehne + Nagel’s carbon management programme designed to :

Calculate customers’ carbon footprint, Identify carbon reduction potentials in their transport and logistics activities Offset their remaining emissions.

Carbon Intelligence

Definition & content

What ? An inventory of all of the

emission sources

From where? An organisation, product,

process or person.

Its role? To measure, monitor and

reduce Co2 emissions.

Site emissions include:

Office heating, cooling systems & Refrigeration

Lighting, computers and electronic appliances.

Additionally, in some countries Kuehne + Nagel operates fleets of trucks that necessarily need to be accounted for the company’s overall footprint.

Glossary:

Fossil fuels gas, oil, coal Direct & Indirect emissions gas, electricity...

We aim to be the forwarder leader in

environmental measures

Global Transport Carbon Calculator

(GTCC)

Global Facility Carbon Calculator

(GFCC)

Global Strategic Carbon Calculator

(GSCC)

Our Carbon Intelligence toolkit is based on two main components :

• The Global Facility Carbon Calculator (GFCC): A site-level report enabling to prioritise actions to reduce energy, fuel and water consumption• The Global Transport Carbon Calculator

(GTCC):One of the most powerful tools in the industry

for the measurement and reporting of CO2 emissions caused by sea, air and road

transport activities. The GTCC allows Kuehne + Nagel to provide its clients with reports on their carbon footprint by

transportation mode.

Carbon Intelligence

Global facility carbon calculator

Highlights priorities for action, by identifying

and measuring the larger sources of emissions on site

Enables comparison between similar sites through the use of the emex software.

Provides energy usage needed for Carbon Reduction Commitment [will be a

tax] and fuel usage for Logistics Carbon

Reduction Scheme

Tables and graphs give “green” notice-boards

Baseline set up and target achievements

Scope 1: All direct emissions (company owned fleet)Scope 2: Indirect emissions (consumption of purchased electricity) Scope 3: Other indirect emissions (waste generated in operations)

Global facility carbon calculator

Environment champions Who are they?

Kuehne + Nagel employees who volunteer to become Site Environment Champions.

They act as a 2-way channel for advice and information, conduct trials, be an

advocate for change, prepare and publish the GFCC monthly performance report.

What do they do?

Raise awareness on environmental issues.Provide guidance to staff and influence site

activities to reduce CO2 emissions and costs arising from fuel, energy and water

usage and the disposal of waste.

Glossary – Environmental Law Duty of care: A person is responsible for

avoiding acts or omissions that could be likely to cause harm to the environment.

“Polluter pays” principle : Those who pollute should bear the costs of damaging the environment.

Producer responsibility: Making sure businesses that manufacture and sell certain products are responsible for those products once they become waste.

Water Resources Act 1991

Regime set up to conserve, manage and control pollution of water resources and

abstraction. “A little guidance” :

Only put rain water down the surface water drain!

Water Industry Act 1991

Set up private water authorities.“A little guidance”:

Don’t put anything into a fowl drain but sewage without the permission

of the water authorities!

Classifies waste management according

to their desirability. The 3Rs (Reduce, Use & Recycle) are meant to

be a hierarchy, in order of importance.

CO2 reporting

Scheme designed to reduce carbon emissions How does it reduce them? Charges public and private sector organizations that consume large amounts of electricity and gas.

Pollution prevention Guidelines

Their objective: Prevent pollution entering

watercourses and groundwater by means of

guidance, rather than legislation.

Hazardous Waste regulations

Sets out a regime for the control and tracking of

the movement of hazardous waste.

WHAT HAVE WE DONE?Cardboard re-processing - over 200,000 tonnes of cardboard reprocessed per annum

Plastic re-processing - over 15,000 tonnes of plastic reprocessed per annum

Over 800 million "units" handled

through recycling units per annum

Repairs and maintenance of RTPHygiene - in house and independent

bacterial swab testing

Bio degradable cleaning agents

Water recycling

Recycling of steam energy

Latest technology in low energy consumption

Kuehne + Nagel commitment to the environment

Kuehne + Nagel UK has been awarded the Carbon Trust Standard, a mark of

excellence awarded to organisations in recognition

of their measurement, management and reduction

of carbon emissions.

WHAT HAS BEEN SET UP WITHIN CONTRACT LOGISTICS ?CONTRACT LOGISTICS, THE EXTENSION TO YOUR BUSINESS !!

The extension?

KN has set up supply chain and environmental solutions:

Reverse Logistics (Returned-goods management, inventory repair/ return, testing & billing)-Services include container/ returns management, re-working/ re-packing / re-labeling , testing, repair data integration for repair services vendor, shelf-life management, billing and receivables.

Packaging solutions: The Packaging Solution Centre (PSC) is our expert organisation for the design and development of professional packaging solutions according to highest industry standards and governmental regulations.

HOW CAN YOU BE MORE SUSTAINABLE AT HOME?

On average every person in the UK throws away their own body weight in rubbish every

three months.

Over a third of all UK energy use, and 38% of its carbon emissions, are accounted for by transport - mostly road traffic.

Housing in the UK

accounts for 30% of

total fuel use and

energy-related CO2

emissions.

How can you help at KN?Controls are set incorrectlyIn some cases timers and

thermostats are set to switch equipment or lighton when it is not needed.

Equipment is not switched offAll equipment including lights, computers, heaters and catering equipmentshould only be switched on when needed.

· Heated or cooled air is lost

Unnecessarily leaving

warehouse doors, office

windows or cold stores

open when they no longer need

to be causes excess air to be

lostunnecessarily.

Equipment is

damaged or faulty

When equipment

Energy efficient floodlighting and street lighting 50-75% reduction in energy use.

LED lighting high efficacy Properly engineered LED has a comparatively long life – in the order of 50,000 hours thus reducing maintenance

costs

LEDs reach full light output instantly≠ SON or SOX lamps

Various ways of saving energy in KN buildings

The benefits of environmental improvements

More attractive to outside investors

Increased productivity and

reduced overheads

Enhance employee satisfaction

Company reputation

Why change?

For our future as individuals, families and communities

Global warming will be a direct threat to the business, in terms of reductions in trade due to natural disasters

and increased poverty

Our existing customers demand environmental improvement and our potential customers regard it as a

key criterion when selecting a partner

To ensure KN’s environmental targets are reached, and that the company remains as competitive as possible in

a greener environment

THANK YOU FOR YOUR TIME AND ATTENTION !