Green Supply Chains Implications and challenges for Rhine-Scheldt Delta Seaports Report prepared for Report prepared by 715783_PDF_Cover_Study_GreenSupplyChains_BAT.indd 1 13/08/2019 10:56 715783_BAT-GREEN SUPPLY CHAINS-IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS T.pdf 1 13/08/2019 11:12 | Green Supply Chains: implications and challenges for Rhine-Scheldt Delta Seaports | 715783_BAT-GREEN SUPPLY CHAINS-IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS T.pdf 2 13/08/2019 11:12 | Green Supply Chains: implications and challenges for Rhine-Scheldt Delta Seaports | GREEN SUPPLY CHAINS IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS FINAL REPORT – 17 JULY 2019 PUBLICATION PREPARED FOR ING Belgium PUBLICATION PREPARED BY Theo Notteboom (University of Antwerp), Larissa van der Lugt (Erasmus UPT), Niels van Saase (Erasmus UPT), Steve Sel (VIL) and Kris Neyens (VIL) 715783_BAT-GREEN SUPPLY CHAINS-IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS T.pdf 3 13/08/2019 11:12 | Green Supply Chains: implications and challenges for Rhine-Scheldt Delta Seaports | DISCLAIMER The views expressed in this report reflect the personal views of the analysts about the subject of this report. No part of the compensation(s) of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific views in this report. This report was prepared on behalf of ING Belgium N.V. (“ING”), solely for the information of its clients. This report is not, nor should it be construed as, an investment advice or an offer or solicitation for the purchase or sale of any financial instrument or product. While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, ING makes no representation that it is accurate or complete in all respects. The information contained herein is subject to change without notice. Neither ING nor any of its officers or employees accept any liability for any direct or consequential loss or damage arising from any use of this report or its contents. Copyright and database rights protection exists with respect to (the contents of) this report. Therefore, nothing contained in this report may be reproduced, distributed or published by any person for any purpose without the prior written consent of the copyright holders. All rights are reserved. Investors should make their own investment decisions without relying on this report. ING Belgium NV is a legal entity under Belgian law and is a registered credit institution supervised by the National Bank of Belgium and the Belgian Financial Services and Markets Authority. ING Bank N.V. is a legal entity under Dutch Law and is a registered credit institution supervised by the Dutch Central Bank (“De Nederlandsche Bank N.V.”) and the Netherlands Authority for the Financial Markets (“Stichting Autoriteit Financiële Markten”). ACKNOWLEDGEMENTS The authors would like to express our gratitude to the members of the Editorial Board of this publication for providing valuable input and comments on earlier drafts of this report. The Editorial Board consisted of Karen Polfliet (North Sea Port), Patrick Van Cauwenberghe (MBZ), Chris Coeck (Port of Antwerp), Dirk Vanhoutteghem (Gosselin Group), Yves De Larivière (Antwerp Euroterminal), Stephan Vanfraechem (VOKA), Yves Goddefroy (ING), Bram Debruyne (ING), Kris Liesse (ING), Pieter Baan (ING) and Marc Callier (ING). Publication commissioned by ING Belgium Marnixlaan 24 1000 Brussels (Belgium) www.ing.be Title: Green supply chains: Implications and challenges for Rhine-Scheldt Delta seaports Authors: Theo Notteboom, Larissa van der Lugt, Niels van Saase, Steve Sel and Kris Neyens Publication date: 17 July 2019 © 2019 – ING Belgium, University of Antwerp, Erasmus UPT and VIL 715783_BAT-GREEN SUPPLY CHAINS-IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS T.pdf 4 13/08/2019 11:12 | Green Supply Chains: implications and challenges for Rhine-Scheldt Delta Seaports | FOREWORD ING is proud to team up with University of Antwerp, VIL and Erasmus UPT to conduct a seventh extensive study on a maritime and logistical topic. The goal of these studies is to contribute to a better understanding, development and growth of our transport and logistics ecosystem. Sharing knowledge is a key element of our customer promise. Climate change is one of the biggest challenges of our time. Scientists and governments alike agree that to mitigate the worst impacts, we must transition to a low-carbon and climate- resilient future, remaining well-below a 2-degree rise in global temperatures. Governments committed to this in what’s known as the Paris Agreement. A global transition to meet this goal will require more than €30 trillion to be invested in clean energy and efficient infrastructure by 2035, according to the International Energy Agency. Bank lending makes up the most significant source of external capital. This means that banks have a major role to play in financing the transition to a low-carbon economy. What about ING? What are we doing to play our part? As a financial institution, we can play a role by financing change, sharing knowledge and using our influence. Being sustainable is not just about reducing our own impact, it’s in all the choices we make - as a lender, as an investor and through the services we offer our customers. That’s why sustainability is inherent to our purpose of empowering people to stay a step ahead in life and in business. That is why the topic of this Port Study fits perfectly in ING’s approach to climate action and knowledge sharing. The Rhine-Scheldt Delta Seaports face a difficult challenge: to drastically decrease environmental footprints against a background of growth in volumes and investments. Green shipping, inland logistics and synchromodality are just a few of the possible sustainable solutions this study analyses and evaluates. But as a bank, ING has the most impact through our financing, via the money we loan to companies and customers. We have a loan book of about €600 billion across many sectors, which we have now begun steering towards meeting the Paris Agreement’s two-degree goal. We call our strategy “the Terra approach”. How does ING’s Terra approach work? ING will focus on the sectors in our loan book that are responsible for most greenhouse gas emissions: energy (oil & gas, renewables and conventional power), automotive, shipping & aviation, steel, cement, residential mortgages and commercial real estate. We will use a specific approach per sector in order to make the most impact, partnering with leading external climate measurement experts where it makes sense. We are convinced that the research and the conclusions of this study are relevant for all kind of maritime companies, port authorities and all the partners and stakeholders of this ecosystem. We want to thank Professor Theo Notteboom, Dr. Larissa van der Lugt, Niels van Saase, Kris Neyens and Steve Sel for their energy and knowhow. The members of the editorial board were a committed and powerful sounding board. Without them, the study would not be as thorough as the actual final result. Bram Debruyne Yves Goddefroy Sector Head Transport, Logistics & Automotive Belgium Business Desk Manager Antwerpen-Haven 1 715783_BAT-GREEN SUPPLY CHAINS-IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS T.pdf 5 13/08/2019 11:12 | Green Supply Chains: implications and challenges for Rhine-Scheldt Delta Seaports | 2 715783_BAT-GREEN SUPPLY CHAINS-IMPLICATIONS AND CHALLENGES FOR RHINE-SCHELDT DELTA SEAPORTS T.pdf 6 13/08/2019 11:12 | Green Supply Chains: implications and challenges for Rhine-Scheldt Delta Seaports | EXECUTIVE SUMMARY Green supply chain management (GSCM) can be defined as integrating environmental concerns into the inter-organizational practices of SCM. The fields of actions in GSCM include product design, process design and engineering, procurement and purchasing, production, energy use and mix and logistics (incl. distribution and transportation). GSCM implies a green logistics approach to connect the environmental concern with transportation, warehousing and distribution activities. The main fields of actions in green logistics are related to eco- friendly packaging, eco-friendly transport mode choice and synchromodality, load and route optimization and green distribution networks and distribution hubs. Co-operation between supply chain partners and the use of digital and integrated data solutions are key to support the above fields of actions. GSCM has gained increased attention within industry as there is a growing need for integrating environmentally sound choices into SCM practices. Tighter regulatory requirements and strong demands for a cleaner and more sustainable environment exerted by communities at large are pushing GSCM practices to the next level. Actors involved in global supply chains are aware of the sense of urgency to move to greener supply chains. Since the early 2000s a slow mental shift is taking place from just being environment friendly to an integration of green initiatives as a way to achieve good business sense and higher profits. This mental shift seems to have accelerated in the past few years. This report deals with the role of seaports in the greening of supply chains. The first chapter set the scene by analysing the concept and practical implementation of GSCM. Next to more theoretical considerations on the origins and components of GSCM, the chapter provides multiple examples on GSCM practices applied by a wide range of companies. Chapter 2 moves the focus to the role and function of seaports in GSCM. The empirical application is focused on the ports of the Rhine-Scheldt Delta region, the most important port region in Europe in cargo throughput terms. Chapter 2 concludes with a detailed overview of green actions and initiatives developed by market players and port authorities in the Rhine-Scheldt Delta ports. A large-scale survey conducted in the Belgian and Dutch logistics and port industry forms the backbone of chapter 3.