Announcement! Smart Freight Centre joins the Getting to Zero Coalition
In 2018, FM Logistic designed and implemented a sustainable development program based on three priority areas: caring for its employees, improving the environmental footprint of its activities and developing services for a more sustainable supply chain. The program involves employees, customers and communities, and is designed to support the UN Sustainable Development Goals and the UN Global Compact principles.
The company’s 63,000 tonnes CO2e direct emissions stem from warehousing activities (storage, handling, picking and co-packing). Indirect emissions of 6.5 million tonnes CO2e have their origin in road-transport services (95%) and warehouse activities (5%) which have been outsourced to partners. Outsourced trucking also generates an estimated 490,000 tonnes of fine particles which is a public health issue, particularly in urban areas.
“Sustainable development is revolutionizing our industry. FM Logistic wants to be at the forefront of this revolution and combines carbon transparency through the GLEC Framework with solutions to reduce emissions in collaboration with our clients.”
Charlotte Migne
FM Logistic’s Sustainable Development Director & chair of The Alliance for Logistics Integration through Collaboration in Europe (ALICE) working group on urban logistics
FM Logistic’s sustainability strategy consists of three broad areas:
Report and set targets
- Calculates own emissions and gives clients insight into the carbon footprint of their logistics activities to identify opportunities for improvement, using the EcoTransIT World tool for the transport activities, in conformance with the GLEC Framework
methodology. - Estimates the ‘social cost of carbon’ (SCC), the theoretical economic and social cost of an additional tonnes of CO2 emitted: $6 million for direct activities and $560 million for indirect activities for the 2018-19 financial year.
- Aims to achieve carbon neutrality for its warehouse and co-packing activities by 2030 and the reduction of its indirect emissions. Interim targets for 2022 are: 20% reduction of the warehousing carbon footprint compared to 2018, 70% of transport flows use Euro 5 trucks or higher or renewable energy; 100% of customers are equipped with a sustainable development dashboard; and 20% of revenue is generated by sustainable products and services.
Reduce
- Optimizes the energy performance of its road fleet and buildings. All warehouses built since 2012 are HQE or LEED certified and have 100% LED lighting. Citylogin fleet is increasingly deployed in cities in which green delivery is an increasing matter - over 500 European cities now impose access restrictions for polluting vehicles.
- Pioneers ‘pooling’: sharing of storage space and grouping goods of several clients into shared trucks. One pooling project for 6 retailers at 40 locations resulted in 2.5 higher delivery frequency, 30% fewer dockings at customer warehouses, 20-30% less stock storage, and 30% lower CO2e emissions. Citylogin is the urban version that involves distribution hubs near the city center and pooled deliveries using hybrid or electric trucks. Citylogin is available in 20 cities in Italy, Spain, France, Poland and Russia.
Collaborate
- Works with carriers and partners to improve performance. The Trailer View project in collaboration with Mines ParisTech uses sensors to monitor the volumes and content of urban trucks and then use this information to optimize delivery flows. TK’Blue measures carriers’ energy performance in line with French regulatory requirements.
- Chairs the urban logistics group of the European ALICE platform dedicated to urban logistics and supported the development of France’s CSR Guidelines for Logistics.
About FM Logistic
Founded in France in 1967, FM Logistic is a family-owned independent logistics company with revenue of €1.3 billion in the fiscal year to March 2019. It is active in 14 countries across Europe, Asia, and Latin America (Brazil) and employs more than 27,200 people.
FM Logistic invests in innovation to offer logistics, transport, and co-packing solutions that answer changing consumer demands, the rise of e-commerce and omni-channel distribution. It serves a balanced portfolio of international and local companies in the FMCG, retail, perfume & cosmetics, industrial manufacturing, and healthcare industries.
You can follow FM Logistic on Twitter at @FMLogistic
Find out more on: www.fmlogistic.com
Reference:
FM Logistic Annual Report 18-19
FM Logistic Sustainable Impact Report
FM Logistic White Paper: Alternative Energy for Road Transport