Waterloo, 16 th June 2007

1. Department of Business Management and Economics, Chair of Business Administration, esp. Environmental Management „Decision Making in Transportation Processes as a Support for Sustainable stewardship “Requirements and Possibilities for Transport Process Evaluation Edeltraud Guenther, Vera Farkavcová Waterloo, 16th June 2007

2. Content • Responsibility of enterprises for sustainable stewardship in transportation • Instruments supporting sustainable stewardship of transportation in enterprises • Software solutions for an environmental evaluation of the transport processes • Development of an ETIENNE-Tool for an environmental evaluation of logistic process • Implementation and use of ETIENNE-Tool • Conclusion Environmental Management

3. Responsibility of enterprises for sustainable stewardship in transportation Sourcing raw materials Componenets or sub-assemblies Production line Wholesaler Retailers Customer Transport processes are essential parts of the supply chain and perform flow of materials that connects an enterprise with its suppliers and with its customers. Supply Chain Management (SCM) concept • Includes coordination and collaboration with chain partners, which can be suppliers, intermediaries, third-party service providers, and customers. • Integrates supply and demand management within and across companies. • Planning and management of all sourcing and procurement, conversion activities as well all logistics management activities. Logistic process/management (According to: Council of Supply Chain Management Professionals (2007). Online: http://www.cscmp.org/Website/AboutCSCMP/Definitions/Definitions.asp. Date of acces: May 23rd, 2007.) Environmental Management

4. Relevance of logistic processes -Transport growth EU (25) (Notes: (1) - passenger cars, powered two-wheelers, buses & coaches, tram & metro, railways, air, sea; (2) - road, sea, rail, inland waterways, pipelines, air; GDP- at constant 1995 prices and exchange rate) (According to European Commission (2006a). Online: http://ec.europa.eu/dgs/energy_transport/figures/pocketbook/2006_en.htm. Date of access: May 24th, 2007.) Environmental Management

5. Economic risk Lack of acceptance in the own enterprise Difficulties to integrate the environmental aspects into the planning processes Lack of consumer acceptance Quality and price disadvantages in of environmentally friendly vehicles Difficulties to consider environmental aspects parallel with other criteria Hurdles in transport process optimization Question: What hurdles do you see for an environmentally oriented design and controlling of your transport processes? (Survey within the project ETIENNE - Efficient Transports Chains in Disposal Networks - Unitized and Ecologically Designed, for further information see: http://www.tu-dresden.de/wwbwlbu/forschung/abgeschlossene_projekte/etienne/en/frame.htm ) Environmental Management

6. goal and scope definition • goal definition • system boundary • functional unit 1 inventory analysis • material and energy flows - with associated environmental releases - over the product life cycle • qualitative aspects 2 impact assessment • classification • characterization • normalization to evaluate the significance interpretation • priorities • ecological optimization • sensitivity analysis 3 4 Instruments supporting sustainable stewardship of transportation in enterprises (According to: Deutsches Institut für Normung e.V. (Ed.) (2006): Environmental management – Life cycle assessment – Principles and framework (ISO 14040:2006). German and English version EN ISO 14040:2006. Berlin. October 2006. P. 22.) Environmental Management

7. passenger transport passenger transport no LCA methodology too expensive too expensive Software solutions for an environmental evaluation of the transport processes Software tools Considered criteria UmweltMobilCheck EVALENT EcoTransIT SimaPro7 Umberto Type Evaluation scope Environmental aspects Data basis Methodology used (LCA) Availability Environmental Management

8. INPUT energy OUTPUT emissions into air transport process energy consumption CO2 SO2 CO Nox NH3 CH4 N2O NMVOC particle Considered criteria: Data sources (country) Function and valuation possibilities Kind of transport Main environmental aspects Considered years/last update Availability - literature/language Development of an ETIENNE-Tool for an environmental evaluation of logistic process -Databases for inventory analysis Inventory analysis Databasis analysis Ökoinventar Transporte The Handbook Emission Factors for Road Transport (HBEFA) Global Emission Model for Integrated Systems (GEMIS) Traffic Emission Estimation Model (TREMOD) The ecoinvent Database Environmental Management

9. Selection Instruments supporting sustainable stewardship of transportation in enterprises - Evaluation methodology selection Methodology Ecopoints (ecological scarcity) Material Input per Service Unit (MIPS) UBP Impacts indicators (UBA approach ABC evaluation Critical Voluminous CED - Cumulative Energy Demand Verbal evaluation CML 2 baseline method (2000) Problem orientated approach Eco-Indicator 99 (95) Criteria Consideration of Inputs Consideration of Outputs Data availability Results expressiveness Multi / one dimensional Consideration of all environmental media Quantitative / qualitative Environmental Management

10. STEP 1:Transport task STEP 2:Transport alternatives STEP 3:Transport chain determination STEP 4b: Economic data STEP 4a: Life cycle inventory analysis STEP 5b: Economic evaluation STEP 5a: Ecological evaluation STEP 6:ecological and/or economic assessment Implementation and use of ETIENNE-Tool Environmental Management

11. STEP 2:Transport alternatives Alternatives STEP 3:Transport chain determination Type of the way Price Loading Transport distance Kind of transport Implementation and use of ETIENNE-Tool Environmental Management

12. STEP 6:ecological and/or economic assessment Implementation and use of ETIENNE-Tool Environmental Management

13. Conclusion Flexible Tool not only for the waste management enterprises Software application on the Access level Expansion of evaluated objects reloading, air transportation Deeper economic evaluation application of economic method Environmental Management

14. Thank you for your attention! The Technische Universität Dresden is validated according to the EMAS regulations since January 2003, revalidation in December 2006. Information: http://tu-dresden.de/die_tu_dresden/umweltschutz Environmental Management

15. Ecological Concernment Betroffenheit External environment: Legal conditions Technological conditions Economic conditions Task environment: Customers Suppliers Competitors MANAGEMENT SYSTEM Realisation and checking Task Fulfilment of the task System of objectives Decision making Environmental policy Environment protection Evaluation tool (a technical support in EXCEL) Bewertungstool die technische Umsetzung mit EXCEL Field of the company Logistic Responsibility of enterprises for sustainable stewardship in transportation Environmental Management

16. Relevance of logistic processes - Energy consumption by sector and CO2 emissions by sector (Notes: Mtoe - 1000 000 Tonne of oil equivalent; (1) Includes "own use" by power and heat generation sector) (According to European Commission (2006). Online: http://ec.europa.eu/dgs/energy_transport/figures/pocketbook/2006_en.htm. Date of access: May 24th, 2007. ) Environmental Management

17. Energy consumption Material emissions (e.g.oil, waste water) Loading grade of vehicle Noise Direct emissions into air Environmentally friendly power sytems Environmental risk /transport safety No environmental evaluation Hurdles in transport process optimization Question: Which criteria do you use to assess environmental impacts of your transport processes? Environmental Management

18. Depending on higher acceptance of their environmental management by customers, suppliers etc. Depending on an increased political acceptance of environmental management in terms of tax reduction or subsidies etc. Depending on the specific economic development of the enterprise Depending on the possibility to enlarge the own indirect competitive advantage Hurdles in transport process optimization Question: On which factors does depend your further environmental commitment? Environmental Management

19. Amount to transport Goods to transport Start Direction Implementation and use of ETIENNE-Tool STEP 1:Transport task Environmental Management

20. STEP 4a: Inventory analysis STEP 4b: Economic data Emissions into air Transport costs Energy consumption Implementation and use of ETIENNE-Tool Environmental Management

21. STEP 5b: Economic evaluation STEP 5a: Ecological evaluation - Energy consumption (KEA) - Impact indicators method - Eco-points method Total price Implementation and use of ETIENNE-Tool Environmental Management