BULM 720: The Green Supply Chain
Professor Taylor Wilkerson
Final Report, Group 3
Maersk Group is a Danish company who has activities in a variety of business sectors, primarily within the transportation and energy sectors. It has been the largest container ship operator and supply vessel operator in the world since 1996 and a signatory to the UN Global Compact and its ten principles that guide corporate behavior in the areas of human rights, labor, environment and anti-corruption since 2009. Maersk is now working to implement the body’s Blueprint for Corporate Sustainability Leadership. With a detailed long-time strategy, Maersk is one of the leaders in sustainable development in the business world. Safety
Safety is a core issue in Maersk’s business. It has been taken seriously that employees in Maersk can work safely and securely. The major challenge of safety is fatalities. According to Maersk’s year report, from 2010 to 2012, the number of fatalities increases from 12 to 17, compared to Maersk’s 0 fatalities goal. This upgrade trend provides much caution to Maersk. Maersk’s analysis has pointed that within supply chain operation, there are two kinds of fatal accidents: accidents involve traffic and container movements and mechanics and accidents caused by failure of several processes. Maersk should pay more attention on improving process safety, including preventing fires, explosions and accidental releases of hazardous materials. Maersk has set a series of strategies to improve the sustainability of its supply chain to reach zero fatalities target, including establishing fatality review group to review investigations of fatalities incurred during the year, developing new performance parameters to evaluate potential risks in the production processes and ensure a single or few actions won’t cause a large-scale accident and building a knowledge-sharing framework to let review group share good practice and develop safety initiatives. Environment and Climate Change
Among a variety of environmental problems, climate change is a key issue that could bring the world huge negative effects. As one of the largest supply chain companies, the Maersk Group is always trying to contribute to reducing the effects that climate change causes by operating the company in a sustainable way. Reducing CO2 emissions is one major target the company puts efforts on. Since 2010, 17% CO2 emissions was reduced by accelerated energy efficiency gains in Maersk Line. A target of another 20% CO2 emissions cut was raised to be achieved by year 2020. Not only CO2 emissions, other polluted emissions such as nitrogen oxide and particulate matter were also being noticed by the company. The Maersk Group is devoted to developing new technologies that could reduce polluted emissions that have negative effects on climate change without sacrificing efficiency. A successful example could be the newly developed cylinder lubrication system that reduces oil consumption and PM emissions. In terms of biodiversity, the Maersk Group, have proposed ballast water management plans and logs to ensure proper handling of ballast water on all their ships. Unnecessary ballast usage was continuously being minimized. Internal and mid-ocean ballast water exchange was also being exercised wherever possible. Additionally, equipment recycle and disposal processes were conducted by following the Cradle to Cradle method for the recent years. Once ships retired, all the vessels and the equipment could either be recycled for reusing or be disposed. Social Responsibility
Social responsibility is one of the important issues for the company. Maersk’s priorities for social responsibility include labor, human rights, diversity, disaster response and community involvement. In recent years, the company integrates social responsibility tightly into their business and their operations. The most important one in social responsibility is labor. The company created and...
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