The world is moving toward sustainability and the target is to achieve net zero emission by 2050. The global transport and logistics company, Kuehne+Nagel recently hosted first-of-its-kind sustainability event in Pune, India to highlight the initiatives taken toward achieving this goal. Mr. Marcel Fujike, Global Head of Products & Development, Air Logistics, Kuehne+Nagel talks to Vishal Kashyap, Managing Editor, Aviation World more on this. Excerpts from the interaction…
Brief us about the recent sustainable event that was held in Pune,India.
We had our first-ever sustainability event hosted in Pune for our customers across industries giving them an overview of sustainability, global emissions, and initiatives Kuehne+Nagel has taken across the globe.
What is the goal &objectives of Kuehne+Nagel towards sustainability?
At Kuehne+Nagel we have two major pillars inside our forum that are guiding us and leading our way. The first is the strategy that we recently announced in March 2023 at the Analyst Day in London where we clearly defined our core area in ESG (Environment Source and Governance) towards sustainability. The second is our vision for sustainability by 2030. We are working towards becoming the most trusted supply chain partner for a sustainable future.
The second pillar is Science Based Targets and Initiatives (SBTI). Every year there is a climate change conference happening and in 2015 there was a climate change conference by the United Nations in Paris where great insight within various countries to eliminate global warming by 2050 to 1.5 degrees was shared. Now the question is what does that mean ‘up to 1.5 degrees?’ If we break it down to the companies,we get just the degrees figure, therefore we limit global warming basically up to 1.5 degrees. Hence, the SBTI is translating 1.5 degrees into absolute figures.
We became science-based targets in 2021 and then we decided on our targets in mid-last year to become carbon neutral by 2050. Last year, we had 14.2 million tons of CO2e. Our emissions need to be reduced by 33 % by 2030 (against the 2019 baseline) and by 2050 it is our aim to have net zero emissions. While we will still have emissions that cannot be avoided but will compensate them with carbon capture i.e., active carbon removal – not offsetting.
2050 is set as the deadline to achieve net zero carbon emissions. What does that exactly mean?
Net zero means we are still on one side of emissions and on the other side these emissions are reduced or brought to zero by active carbon capture. So, carbon capture means that there will be technologies out there that will help to remove carbon from the atmosphere.
What are the specific steps that you are taking to curb pollution created in the logistics sector, especially in India?
There is only one earth. Whatever we do in India impacts us globally, therefore as an organisation, we are not focusing on single countries. But all the measures we are taking are implemented globally. We are concentrating on our activities for global solutions first and then we have local-specific solutions. So, if we round this to India and we are looking into electric vehicles, warehousing, energy-powering sources, and solar energy. We have started now putting solar panels on the roofs of all our warehouses and offices and over the next two years,100% per cent of our electricity supply would be coming from renewable energy sources (wind, solar, water).
End of last year, we stood at 85 % of the power coming from renewable energy. We have local initiatives running to implement sustainability actions in local Kuehne+Nagel departments and we take on activities supporting the care for the environment in local communities/countries as well.
When you look at the larger picture of emissions unfortunately 98% of the emissions are indirect emissions globally like our airlines, shipping, truckers etc. and these are emissions that we are tackling. Globally in the next 10-15 years, we need to have biofuels which means we are actively promoting and investing in innovations as well as promoting the use of existing use of sustainable aviation fuel.
What are the pertinent challenges that you see in the process of sustainability?
Let’s take air freight as an example where we have three challenges in reducing the usage of carbon emissions. The first challenge is the awareness or knowledge of the industry. Because only a handful of carriers and partner airlines are up to speed on sustainability. This is taking a lot of time to educate and develop the concerned skills. The same is true for customers who are now moving in this direction.
The second challenge we are looking into is the airside and the ability to ascertain aviation fuel because it is making emissions as the aircraft only has a life cycle of 40-50 years. Therefore, it will take some time until the first new technologies hit us and then really gives us any impact. Currently, the volume of bio fuel worldwide is very little and it’s insufficient to have an impact. The price of Sustainable Aviation Fuel is also 2 to 3 times higher than the existing Aviation Turbine Fuel due to several reasons like manufacturing and transportation etc.
From India’s perspective don’t you think airlines are reluctant to adapt to Biofuel or SAF as that might impact their operational cost?
With the support from the Indian govt, we can use SAF for airlines to become more carbon friendly.Methods like subsidising,incentivizing, or putting on mandates by DGCA that airlines need to have one per cent of SAF will help. The tricky part now is we have a limited access to SAF in India,but that can always be sourced from other countries like Singapore.
What are the goals for the reduction in carbon emissions and future investments?
The targets are set by SBTI and as mentioned by 2030 we need to save 33% of our total emissions which means 5.5 million tonnes of reduction of indirect emissions and by 2050 we have net zero emissions.
The investment we are doing is widespread. We are heavily investing in biofuels now. Since bio fuels are very expensive, together with shippers & airlines and sea freight providers we need to invest and work on this as developed companies are now committed to SBTI as well. So, global companies, that are based in India as well as we at Kuehne+Nagel will have the solutions like SAF to support reaching their carbon neutrality mission.
We are now starting to invest in long-term production as well. First time ever we have gone mostly with our airline partner, sea freight partner, we are investing together into production plans from new technology SAF which is coming right now.
Your final observations.
In a nutshell, we are not doing it alone. We need our customers to support, and we will be supporting customer’s solutions. We have our own targets, but it needs to be a joint effort.
