3. Environment GEODIS is developing the use of electric, biogas and biofuel vehicles for road freight. The Group is also investing in innovation seeking to extend electric technology to new uses, particularly for heavier vehicles, and is exploring the option of hydrogen. GEODIS offers its customers a range of sustainable fuels for air and sea transport that can reduce greenhouse gas emissions by at least 75%. The fuel used for airfreight, SAF (Sustainable Aviation Fuel) and for ocean freight, SMF (Sustainable Marine Fuel) is mainly made from recycled oil. The use of SAF and SMF for GEODIS’s customers’ transportation operations in 2023 avoided 4,800 tonnes of CO2e emissions. Grundfos reduces maritime freight emissions with GEODIS alternative fuel offer Grundfos is a world leader in water technology. Every year, the company ships over 20,000 containers across the world’s oceans. To do this more sustainably, Grundfos sources Sustainable Marine Fuel (SMF) through GEODIS and its Sustainable Fuel Program. This program aims to replace fossil fuels with alternative and renewable fuels to reduce greenhouse gas emissions. These reductions are expressed in the form of certificates issued to cargo owners, by means of a mass balance. The sustainable marine fuels offered by GEODIS are supplied by the Dutch company GoodShipping and are made from waste products such as recycled cooking oil. In 2023, Grundfos managed to reduce its shipping emissions by more than 2,500 tonnes of CO2, and by more than 6,500 tonnes since the beginning of the initiative. The five pillars of decarbonization Approaching the decarbonization issue in a holistic manner, GEODIS has developed its thinking around the five pillars resulting from the work(1) of the Alliance for Logistics Innovation through Collaboration in Europe (ALICE), a European platform, and the Smart Freight Centre. The five pillars are as follows: ● freight demand growth is managed; ● transport modes are smartly used and combined; ● fleets and assets are shared and used to the max; ● fleets and assets are energy-efficient; ● fleets and assets use the lowest emissions energy source feasible. Growth in transport flows (1) and the choice of transport modes (2) are both dimensions that depend essentially on customers’ decisions. To help them make their choice, GEODIS has developed in-house tools to predict emissions and thus compare several different configurations. In addition, there is an online emissions calculator that allows customers to compare different transport alternatives between two points. GEODIS is also constantly enhancing its offer, in particular by strengthening its multimodal road-rail solutions for long distances and cycle logistics for downtown deliveries. Optimizing loads (3) and increasing warehouse density are among the drivers that transport and logistics companies can use, in view of the consolidation of the flows and storage entrusted to them. At GEODIS, these optimizations are based on the expertise of our teams, a very close dialogue with our customers and increasingly sophisticated information systems. The road transport activities – those of Distribution & Express, the European Road Network or trans-o-flex – apply digital tools for planning transport plans, in order to optimize the choice of vehicles, loads and kilometers traveled. In addition, delivery routes are monitored and adjusted in real time – thanks largely to geolocation – to take account of unforeseen events and reduce failed deliveries, for example. Supply Chain Optimization teams put their know-how to work for the Group’s customers’ supply chains, with tools for optimizing flows and loads. Energy efficiency (4) is a driver that has been used by GEODIS for a long time. It means both a reduced environmental footprint and lower energy costs. Energy efficiency was high on the COP28 agenda, with the global commitment to renewable energies and energy efficiency signed by over 120 countries. It includes a 2030 target to double energy efficiency improvements worldwide(2). Research by the IRU (International Road Transport Union) echoes this commitment, acknowledging how crucial it is to speed up energy efficiency measures now to decarbonize commercial road transport(3). Today’s technologies enable the Group to take action both to improve the monitoring of energy consumption and to optimize its use. This enables GEODIS teams to ensure that energy is used as efficiently as possible, while at the same time improving the energy efficiency of operations. The technological transition (5) to low-carbon energy sources is gathering momentum. GEODIS has been investing for the past ten years in technological innovations to progressively decarbonize its fleet of vehicles. Several different technologies are needed to cover the various modes of transport and uses, from long-distance transport to last-mile delivery, and to support the trajectory of decreasing greenhouse gas emissions to a carbon neutral economy by 2050. Regulations and the availability of renewable energies have changed considerably in recent years. Back in 2018, European leaders had set a target of 32% renewables in final energy consumption by 2030. In March 2023, in line with the European Union’s ambition to achieve climate neutrality by 2050, legislators decided to increase the share of renewables to be achieved by 2030 to 42.5%, with the aim of reaching 45%. (1) https://www.etp-logistics.eu/wp-content/uploads/2019/12/Alice-Zero-Emissions-Logistics-2050-Roadmap-WEB.pdf (2) https://www.iru.org/news-resources/newsroom/new-iru-study-maps-best-net-zero-2050-plan-less-disruption-lower-cost (3) https://www.cop28.com/en/global-renewables-and-energy-efficiency-pledge 44 - 2023 ACTIVITY AND SUSTAINABILITY REPORT
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