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Agility’s Green Steps

Agility’s Green Steps. March 2009 CSR@AGILITYLOGISTICS.COM. The Demand for Green Logistics is Growing. Global Trend: Growing Importance of Green Logistics. Studies Place Green Logistics at the Forefront of Future Success

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Agility’s Green Steps

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  1. Agility’s Green Steps March 2009 CSR@AGILITYLOGISTICS.COM

  2. The Demand for Green Logisticsis Growing

  3. Global Trend: Growing Importance of Green Logistics • Studies Place Green Logistics at the Forefront of Future Success • 86% of respondents agree that a green supply chain is somewhat or very important today • 98% of supply chain executives believe green supply chain initiatives important for future business success • 70% of companies awarding contracts said environmental compliance was either reasonably or very important • What is Driving Shift? • Government compliance • Customer demands • Public opinions and CSR • Cost and natural resource availability Sources: Cap Gemini and Georgia Tech 2008 3PL Study; Eye for Transport Green Transport Survey

  4. Customers not sure how to demand or implement green Only half of 3PL users are optimistic about using green as a selection criteria for 3PL providers, and switching transport modes 50% unsure or pessimistic 3PL providers unsure how much to invest Just over half believe green supply chain initiatives will deliver a positive return on investment, 35% are undecided 14% believe ROI will not be positive. Result: Gap between what 3PL providers “could” do, and what they are currently doing But Uncertainty About How to Proceed Sources: Cap Gemini and Georgia Tech 2008 3PL Study

  5. What is Agility doing? Making operations more energy efficient Raising awareness Internally Working with customers to green their supply chain Engaging in global dialogue

  6. Agility is committed to the preservation and protection of our natural environment, by implementing controls to prevent pollution and harmful emissions, reducing over-consumption of physical resources and energy, and minimizing waste. • - From Agility’s Global Health, Safety and Environment Policy Environmental Responsibility

  7. Internal Awareness Campaign • We are continuing to develop our environmental strategy and have launched a global environmental awareness campaign. Our employees have already taken the lead: Kuwait: Celebrated Earth Day activities for two years in a row, with over 900 people participating in community cleanups and environment lectures. Thailand: Sponsored the food and medication for 100 elephants living in Thailand. 30 of Agility employees already work in an ISO 14001 certified site.

  8. Agility New Zealand will be running an entirely carbon-free operation by: Analyzing operations to see where we can improve operations to be more energy efficient and environmentally friendly. Offering a carboNZero freight service to clients on request; involving the measuring & offsetting of all associated emissions. Achieving Carbon Neutrality in New Zealand • Agility’s New Zealand offices became the first logistics & transport company in the country to become carboNZero certified. “The movement of freight around the globe is a significant contributor to greenhouse gas emissions. As an industry we need to recognise this, and take steps to ensure we are actively looking at ways of reducing our carbon footprint. carboNZero certification is our public commitment to this, and provides our business with a way to make a real difference.” - Anthony Browne, CEO, Agility New Zealand

  9. Case Study: Reducing Energy Use in the Middle East Environmental Challenge: 3 million square feet of warehousing space in Kuwait. Our electricity consumption is a significant part of our carbon footprint. We decided to try to reduce our energy consumption by 20% in 2007. • The Agility Solution: • Conducted an energy audit • Replaced 3,000 regular bulbs with compact fluorescent bulbs • Switched off electricity during off-peak hours for durable goods. • Controlled AC temperatures • Conducted an awareness campaign encouraging employees to be more energy-efficient Our results:30% energy savings, which translates to 239,000 tree seedlings grown for 10 years 9,300 tons of CO2 reduced 823 homes yearly electricity use 9

  10. Case Study: DDKS Goes Green Summary of Impact Year-on-Year 2007 Results 2008 Results

  11. Case Study: Reducing Worldwide Impact of Road Transport Environmental Challenge: Agility owns a fleet of 6,000 vehicles in the Middle East and Asia, and subcontracts road transport in Europe and the Americas. Our challenge is to try to reduce the impact of vehicle emissions • The Agility Solution: • We train drivers to reduce idling time and monitor fuel consumption. • 85% of our Middle East fleet meets Euro III Emissions standards. • 70% of our Middle East fleet uses retread tires in 70%, saving an estimated 168,000 gallons of oil. • In Thailand, 5 natural gas vehicle trucks are currently being piloted. • In Europe, we are creating a system to give preference to suppliers that have environmental management systems in place for their fleets. 11

  12. Case Study: Recycling and Reusing Environmental Challenge: With 550 offices in 100 countries around the world and ten million square feet of warehousing, many metric tons of waste are generated each year. Our goal is to reduce how much consume in the first place, and recycle and reuse as much as possible from the rest. • The Agility Solution: • 13 branch offices in the United States have begun or are implementing a recycling program for paper, plastic, and glass. • At DDKS, a major warehousing facility in Kuwait which receives over 335 inbound containers per week, we recycled 31 tons of cartons, 19 tons of metal, and 9 tons of plastic in 2007; and saved the customer $400,000 by repairing and reusing wooden pallets. • In our Singapore logistics hub, we recycled 210 tons of carton boxes and 24 tons of plastic waste last year 12

  13. Case Study: Handling Dangerous Goods Environmental Challenge: In the UK, we process 20,000 dangerous goods consignments per year, most involving compressed gases, inflammable liquids, and corrosives. Our challenge is to meet our customer needs for speed and efficiency with minimal incidents and environmental damage. • The Agility Solution: • External auditor carries out annual inspection at all sites handling dangerous goods • Extensive and systematic internal safety checks • Mandatory and comprehensive training for all staff that handle dangerous goods, and training of other operational employees as additional back-up (30% of total workforce trained) Our results:One of the best safety records in the UK In 20,000 consignments, only four minor incidents in 2007 13

  14. Working With Customers to Green Supply Chain • Agility worked with a leading customer to send drinks to the Middle East in flat plastic envelopes with nozzles, known as "bibs" (for "bag in box"). Each bib holds the equivalent of 120 bottles, or five cases, of bottled drinks. • The bibs save $20 million a year, because they are half the cost of bottles. They also cut an additional $16 million a year from transportation costs because they're 98 percent lighter than bottles. • Just as importantly, switching to bibs has an enormous positive effect on the environment. It took 13,268 barrels of oil to make enough plastic for the 53 million bottles we shipped in 2007. That's more than $1.6 million in oil at today's prices. By comparison, the same amount of Gatorade in concentrated form fits in just 443,000 bibs. Making those takes just 240 barrels of oil, for a price tag of less than $30,000. And when they're empty, they fold down into thin, flat bundles that take up far less room than bottles in a landfill. Impact: Cut plastic waste in the Gulf region by 5.5 million pounds every year.

  15. Dialogue on Climate Change • Agility is one of 100 companies, globally that have signed the World Economic Forum’s Climate Change letter; delivered to the G8 leaders. The Letter Outlines environmentally effective and economically efficient long-term policy frameworks, with regards to: • Speedy development and diffusion of low carbon technologies • Mobilizing financial support to help developing countries adopt said technologies • Spurring changes in consumer purchasing behaviour • Establishing common metrics for decisions related to GHG mitigation • Setting long-term & short-term goals with relation to emissions and climate change

  16. Global Corporate Citizenship Initiative • Agility actively participates in the World Economic Forum’s Logistics & Transportation Corporate Citizenship Initiative. The initiative places corporate citizenship as one of our core business strategies, and asks us to uphold the following 8 principles: 5. Human rights Respecting the rights of all human beings. 6. Community investment Being responsive in times of need. 7. Customers, suppliers & subcontractors Taking responsibility in our business relationships. 8. Environment Take a precautionary approach to sustainability. 1. Governance Working with integrity and fairness. 2. Financial responsibility Optimizing shareholder value over time. 3. Stakeholder engagement Ensuring transparency & accountability 4. Employees Pledging social justice in the workplace. Read More: http://www.weforum.org/en/ip/LogisticsandTransport/index.htm

  17. Supply Chain Decarbonization Report • Agility contributed to the World Economic Forum’s Supply Chain Decarbonization Report, the first research effort of its kind to quantify and rank opportunities to reduce supply chain carbon intensity. Read the report: https://sharepoint.pwclogistics.com/C18/CorporateSocialResponsibility/Pages/Green%20Steps.aspx

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