Sustainability focus

When managed effectively, supply chains not only reduce costs and boost profitability but also play a crucial role in sustainability. The impact of climate change has underscored the need to improve supply chains to protect our ecosystem and conserve natural resources for future generations.

As the global push for decarbonisation intensifies, both the maritime and aviation sectors are under pressure to adopt sustainable practices. Metro has been at the forefront of these efforts, investing in new fuel technologies that will support the green transition.

Ocean
In July, the International Maritime Organisation (IMO) set a new climate strategy aiming for net-zero greenhouse gas emissions by around 2050. Interim targets include reducing emissions by 20%-30% by 2030 and 70%-80% by 2040, compared to 2008 levels. To achieve the 2030 target with green fuels alone, over one-third of international shipping would need to transition to low or zero-emission fuels within 5-6 years, which is highly challenging.

However, the IMO could meet its 2030 goal with only 10% of ships using green fuels if it also significantly improves energy efficiency. This would require increasing the energy efficiency target from 22% to 38% by 2030, which could involve widespread adoption of wind technologies and reduced operating speeds.

Shipping CEOs have united to push for faster decarbonisation in global maritime transport, advocating for an end date for fossil fuel-only ships and urging the International Maritime Organization (IMO) to establish regulations that will speed up the shift to green fuels.

Their joint declaration outlines four key regulations:
1. Set an end date for new fossil fuel-only ships and establish a timeline for greenhouse gas (GHG) intensity standards to encourage investment in green technologies
2. Implement GHG pricing to make green fuels competitive with traditional fuels during the transition
3. Allow vessel pooling for GHG compliance, where a group’s overall performance counts, accelerating decarbonisation
4. Adopt a Well-to-Wake (lifecycle) GHG approach to guide investments and avoid stranded assets

LNG is seen as the most practical current solution for decarbonisation, with the ability to transition to net-zero carbon fuels like bio-LNG and e-LNG. LNG-fuelled ships are growing in numbers, with over 1,000 expected by 2027, compared to just 36 a decade ago.

Air
The aviation industry is relying on SAF to achieve 65% of its net-zero emissions target by 2050, but current production is a fraction of the 500 million tonnes needed annually by 2050 and the challenge now lies in financing, not engineering.

Investors are being urged to fund large-scale SAF ventures, as this could lead to a new industry that transforms aviation, creates jobs, and offers substantial financial returns.

Redirecting some of the $7 trillion in fossil fuel government subsidies could significantly accelerate the shift to sustainable fuels, with countries like Japan, Singapore, and the US already incentivising SAF production.

Metro has been investing in Sustainable Aviation Fuel for years, and was the first forwarder to join the Air France KLM Martinair Cargo (AFKLMP Cargo) SAF programme.

Grant Liddell, Metro’s managing director said. “We are proud to take this collaborative approach directly with the airlines. Air France and KLM have been pioneering SAF since 2009 and Metro’s participation will help fund the research and development, which can increase production and make SAF available in greater quantities and in more locations.”

Metro has been certified carbon neutral for three years and is committed to extending this zero-emission strategy as far down customers’ supply chains as possible. 

The same toolkit we use to measure, reporting and offset our emissions, to achieve carbon neutrality, is available ‘free of charge’ to our customers.

Part of our MVT supply chain platform, the ECO module monitors the energy emissions, emission costs and CO2 equivalent emissions, of customers’ consignments, by every mode. 

Reports and key eco statistics related to their movements, allow them to see which areas will benefit most from emissions offsetting and where efforts can have the most impact.

To request a demo or discuss your requirements, please EMAIL Ian Powell.