THE NEW SCENARIO

Due to a growing international mobilization, since the Rio the Janeiro conference held in 1992, sustainability became a topic of growing interest for companies as well as managers. This momentum has been consolidated in 2015, through two major acts:

  • The COP21 Climate conference, held in Paris
  • The 2030 UN “Sustainable development goals” Agenda, which identified 17 sustainability goals

THE TRIAD

In the past, the word “Sustainability” mostly identified the effort towards the reduction of GHG emissions and pollution in the environment. Today, it carries a broader meaning: we now consider sustainability as a triad of values and goals:

SOCIAL | ENVIRONMENTAL | ECONOMIC

AN AGREEMENT FOR SUSTAINABLE LOGISTICS, WHY?

To raise a new awareness in the consumers, providing them with useful tools to acknowledge and consider the differences between products and services in terms of sustainable supply chain and considering all relevant elements: from the production process to the logistic processes along the entire life cycle; from the sourcing to the distribution and sales channels, as well as the desirable final recycle or reuse.

A STRATEGIC GOAL, BORN IN ITALY

Logistics and supply chain processes are today still considered to have a strong environmental, social and economic impact. As a matter of fact, these processes can often cripple sustainability efforts of many products and services that are consumed on a daily basis.

There are many issues related to negative conducts in the transport, storage and distribution fields, mainly due to a strong pressure for cost reductions. This approach is no longer sustainable, and is a consequence of a wrong perception of the value chain contribution that logistics and supply chain activities bring to manufacturing and e-commerce industries.

HOW IT WORKS

IN DETAIL

The protocol needs to be approved in two steps, and validated every year.
The first step is to verify that the organization has a “sustainable strategy” on three levels:

  • stakeholder: is there a sustainable strategy agreed with stakeholders?
  • materiality: in what will your sustainability investment be?
  • governance: is there an internal strategy to guide the process?

If the company manages to reach these strategic requirements, another 21 sustainable logistics requirements (environmental, social and economic) will be analyzed.
Requirements will be evaluated through a model of approximately one hundred open questions that analyze best practices, type of decision making processes are being used by the business. It is necessary to understand the pros and cons of the businesses sustainability for a correct protocol validation.
Lloyd’s Register’s auditors, will then give the company a score (target: 100) which will be translated in a certificate/report that can be used in all of the company’s physical and online channels.

THE 21 CHALLENGES OF SUSTAINABLE LOGISTICS

ENVIRONMENT

Disposal
1
WASTE DISPOSAL. The challenge is the restructuring of waste cycle. Waste can be re-used and can be an added value, through four R’s: Recovery, Reduction of energy, Recycle, Re-Usage.
Production
2
INVERSE MANUFACTURING. The challenge is re-using of products that have ended their life cycle. This can create a new value for the product, and it will greatly reduce the impact of materials that have ended their cycle.
3
CUT HARMFUL EMISSIONS . The challenge is to respect the environment by reducing emissions.
Transport and Distribution
4
IMPROVING THE LOADING FACTOR IN TRANSPORTS. The challenge is to saturate your vehicles loading capacity with transported goods. 100% for both outbound and inbound trips improving what is currently performed in the average of global transport (30%-50% only).
5
EFFICIENCY AND TCO OF VEHICLES The challenge here is to reduce the Total Cost of Ownership, investing on the transportation mix to reduce management costs and reduce environmental impact.
6
INTERMODAL TRANSPORT. The challenge is to balance service and emissions. Developing inter-modal solutions, setting goals and monitoring results.
People and processes
7
TRAINING. The challenge is to be aware of the impact of the company’s sustainable activities. Inform and train on values, sustainable best practices, CSR and sustainability in general. Stakeholders, employees and managers are all addressees.
8
AUTOMATION . The e-challenge is to automate and computerize processes to reduce costs, become time-efficient and optimize all processes involved. This reduces emissions and costs.
9
KAIZEN. The challenge is in constant improving of products quality and processes. Strategic planning and engineering for upgrades are fundamental in order to improve processes, products and results.
10
KPI’s. The challenge here is to apply performance indicators that lead to a best-practice. Translate good results in best practices.
Eco logistics system
11
OPEN-ENGINEERING OF SUSTAINABLE SOLUTIONS. The challenge is to involve stakeholders in solution-seeking activities. Learn from stakeholders, accelerate and innovate ideas and solutions. “Open-engineering” means engaging customers, suppliers and competitors.
12
COMMUNITY and PUBLIC AUTHORITIES. The challenge is to involve the whole citizens and territory in sustainable projects. Exploit ideas from the whole community and public authorities to innovate and improve the business ROI together.
13
SHARING RESOURCES. The challenge is to cooperate with stakeholders, even competitors, to reduce costs. Sharing key resources like processes, warehouses and storage facilities, vehicles and deliveries can greatly reduce costs and environmental impacts.
Energy
14
RENEWABLE ENERGY- NO CARBON FOOTPRINT . The challenge is to use renewable energy in the whole processes, improving the renewable en./total en. Ratio.
15
RENEWABLE ENERGY – SELF-HANDLING . The main challenge is to reduce or avoid price fluctuation risks. Self-handle energy through co-generation, renewable energy usage and energy saving.

ECONOMIC FOCUS

Sustainability and Investments
16
DECISIONAL PROCESSES for INVESTMENTS. The challenge is in the approval criteria for the investments in sustainability. ROI in green investments is different to production or marketing ROI; there are different return times and there is some different implicit criteria.

SOCIAL FOCUS

Foreign supplies
17
SOCIAL PROCUREMENT. The challenge is buying in foreign countries where social protection is not regulated following international standards. Child labor, gender equality and occupational safety laws must be in line with the business’s home country.
Relations with territories
18
HEALTH AND SAFETY . The challenge is the social impact on the territory around the production plant of the commercial area- it must guarantee health and security to the local population. Emissions, sound pollution and environmental impact must be in line with standards in the community and possibly even lower than legal requirements.
19
VEHICLE DRIVERS . The challenge is efficiency that leads to energy savings and safety. Safety first: investments in driver training and on performance monitoring is a “must”.

CONCLUSIONS

The system
20
COMPLEX LOGISTICS . The challenge is to understand and react, not to engineer linear processes. Understand and avoid counter-intuitive logistical decisions by applying simulation techniques for complex scenarios and developing a sustainable mind-set.
Innovazione
21
OPEN INNOVATION. The challenge is a global solution: pursue sustainability by accessing talents and technologies in the world, further than your local network.

ADVANTAGES

The protocol aims at giving a feasible solution to businesses in facing the global supply chain and logistics challenges of the next 10 years.

A strategic and operational action to encourage all the players involved in the supply chain to create value through management of intangible assets directly related to the economic and financial issues of the business.

1. WHAT AM I
LOOKING FOR?

Am I leading, in the group,
or am I late?

2. FIND
DIVERSITY

The protocol tells me where
I am and where I can go

3. CONNECTIVITY

With experiences and
the know how

4. IMMEDIATE
APPLICATON

Start planning
straight away

5. WHAT I’M
BUYING

Independent audit tailored
on my specific business profile

6. BEFORE, DURING
AND AFTER

Coaching and
training programs

A TRADEMARK, 4 MAIN BENEFITS

MODEL

The protocol is a reference model for environmental, social and economic sustainability: the triad. The “circular economy” scheme is also part of the model, with the aim of maintain and protect the natural resources of the planet, like biodiversity and natural resources.

IMPACT

The protocol measures the impact of business’s activities on the environment. In tune with today standards, it validates the financial stability of the chosen strategies, including the incomes, according to the business standards.

COMPLETE STRATEGY FOR SUSTAINABILITY

The protocol tells us where we are, where to start, and which journey the business must follow to reach sustainability goals.

BRANDING AND COMMUNICATION

The SOSLOG trademark, which will be released following the positive process of validation performed by Lloyd’s Register, can be applied to products, on vehicles, equipment, logistics assets and in all the corporate communications and external relation tasks, including the relationship with the final customers and consumers.

JOIN THE PROTOCOL

Fill the form to join the SUSTAINABLE LOGISTICS protocol

SUBSCRIBE

Number of relevant production plants
Production plant means a place where operations are performed and contribute substantially to the value chain of the product/service offered.

Employees

Upload document PDF
Upload the corporate financial statement / ethical code

SUSTAINABLE LOGISTICS CHAMPIONS

The list includes the companies who can use the Sustainble Logistics trademark, for the year of latest protocol validation/renewal as per official communication received by Lloyd’s Register
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