“Sustainability is a common task”

How has Hapag-Lloyd managed to lower its emissions?

Jörg Erdmann: First, we have implemented measures to boost the efficiency of our fleet. We’ve been able to realize savings by making technical improvements to both ships and containers. In fact, our refrigerated containers are much more energy-efficient than they used to be, and we have halved the cooling requirements of a 40-foot reefer. But boosting efficiency won’t be enough for us to achieve our goal. We believe that alternative fuels offer great potential for reducing CO2 emissions. We are the first shipping company in the world to convert a large container ship, the “Sajir”, to operate using the more climate-friendly liquefied natural gas (LNG). On top of that, we are currently testing a biofuel to which used cooking oil from the foodservice industry is added. Using this biofuel, CO2 emissions per metric tonne of fuel can be reduced from the current level of around three tonnes to an estimated level of 2.5 tonnes. Speaking of consumption, we have also achieved reductions in the specific bunker consumption of our fleet per slot, from 2.75 tonnes in 2018 to 2.59 tonnes in 2019. In addition to reducing emissions, this also lowers our costs.

When it comes to sustainability, many companies are placing their bets on digitalisation. How is Hapag-Lloyd approaching this issue?

Yves Kaminski: Digitalisation offers us, too, a lot of potential for reducing emissions. For example, our colleagues in the Fleet Support Center analyse weather and current data from across the world. Thanks to this weather routing, our ships always find the best route. What’s more, in 2019, we were able to reduce the drag – i.e. water resistance – on 33 ships by continually monitoring and removing ship fouling. This resulted in fuel savings of around 9 percent – which is my personal favourite in terms of results. In addition, digital tools are used for container stowage planning and trim optimisation. Going forward, we want to make even greater use of the possibilities offered by digitalisation. This is why Fleet Management recently created the new Fleet Analytics and Technical Optimization department, which will focus on the data-driven optimisation of our fleet.

At Hapag-Lloyd, sustainability comprises not only the three “classic” dimensions – i.e. economic, ecological and social issues – but also the aspect of quality. Can you tell us more about this?

Jörg Erdmann: For us, all four of these issues are tightly interwoven. The society in which we live, those around us, our colleagues, customers, business partners and shareholders have different ideas about sustainability, so they also have different expectations of us, as well. So sustainability means reconciling all aspects – while safeguarding our resources and ideally having uniform market conditions. In this context, for us, quality means that we have an ISO-certified quality and environmental management system. This encompasses sustainability aspects – such as occupational safety, employee training, customer focus and assessing service providers – as well as efficiently using resources and reducing negative environmental impacts. For us, quality also means measuring our sustainability-related activities and making the results transparent and understandable. An example of this is our EcoCalc tool, which allows our customers to get an idea of the various emissions of their transportation chain.

The motto of this year’s sustainability report is “On Course”. What does this mean?

Jörg Erdmann: Rather than meaning that we have come to a standstill, “on course” means that we have found our way in terms of our sustainability-related efforts. We were able to lay a good foundation for ourselves with our first report in 2017 (“Cast off!”) and in the second report (“Gathering Pace Together”) in 2018. And now we have charted the course that we want to sail on going forward. We are firmly focused on our sustainability targets and business objectives. And even in these turbulent times, we will continue to work on making container shipping and Hapag-Lloyd more sustainable.

How do Hapag-Lloyd employees put sustainability into practice? And can you provide an example of this?

Yves Kaminski: This is actually an important point. Sustainability is a holistic concept that knows no boundaries, either geographically or with respect to content. Every single one of us can really do something to be sustainable. This is why we have colleagues from very different parts of the company who are already implementing a lot of fantastic sustainability-related projects. For example, in Manila, the electrical engineer Demosthenes C. Quinones and his team are very actively promoting the ideas of “repairing instead of replacing” and sustainable work on board. Our colleagues in Region Middle East have switched to using reusable and glass bottles for their beverages and, in 2019, they will use almost 60 percent less disposable paper cups and 92 percent less plastic bottles compared to the previous year. And our colleagues in India have planted 186 trees to reduce greenhouse gases, and they plan to plant 800 more trees this year. So sustainability is happening at Hapag-Lloyd across the world and on both a small and large scale.

External stakeholders also get a chance to have their say in the current report. What role does dialogue play?

Yves Kaminski: Closely interacting and exchanging with our customers, other business partners and representatives of associations as well as with people from science, politics and government agencies is essential for our work. For us, stakeholder dialogue has many facets. Our customers, for example, have clear ideas about what we have to achieve in terms of sustainability.

Jörg Erdmann: Yes, dialogue with our stakeholders is a very important part of our work. After all, our sustainability measures also take into account the well-being of future generations. This makes it all the more important to bring all relevant parties along on this journey. Sustainability is a common task, and it can only be achieved together with strong partners.

2019 is now behind us. What will our sustainability-related efforts be like this year?

Yves Kaminski: Sustainability is an ongoing process for us and a way of thinking that we would like to internalize more and more with regular campaigns and communication efforts among our roughly 13,000 employees. Specifically, we will continue to work intensively on developing a biofuel product for Hapag-Lloyd. And we need to take more steps on the path towards decarbonising ocean-going shipping. The IMO has set ambitious milestones on this issue, such as to reduce CO2 emissions by 40 percent by 2030 and by 50 percent by 2050 compared to 2008. And the kickoff for the fourth sustainability report is already scheduled for September.

Many plans have changed in the medium term since COVID-19 turned the global economy upside down. Is the coronavirus pandemic also changing our attitudes about sustainability?

Jörg Erdmann: Yes, I think that people are changing their minds somewhat, such as when it comes to low-cost travel and short trips by plane. I’ve also realized myself that I don’t need to fly as much for business reasons. We have fantastic digital tools, and it’s often enough to use the phone or video-calls. But we can’t let the current crisis lead us overlook the issue of sustainability as a whole. After all, even if the COP 26 world climate change conference – which was scheduled to be held in Glasgow in November – has been postponed until 2021, the issue of climate and environmental protection remains urgent.

Yves Kaminski: We hear very often about all the things that can’t be done when it comes to climate protection. The current situation is obviously not something you would wish for. But it shows that we as a society are capable of acting when it really comes down to it. I find this encouraging, and I hope that we can drive forward measures for environmental and climate protection with a similar sense of vigour.

Being sustainable means safeguarding the future, and it will only work if all generations work together. Do you remember the first time you dealt with the issue of sustainability?

Yves Kaminski: I was already familiar with recycling and environmental protection as a child, but I only had my first scientific contact with sustainability during my university studies. For example, I did some work on sustainable urban planning.

Jörg Erdmann: From my childhood, I can remember having my own vegetable and fruit garden with apples that were stored in the pantry for a very long time and weren’t thrown out even when they didn’t look very nice anymore. But I only really became intensely familiar with the issue two and a half years ago, when I took over as head of the Sustainability Management unit.

The 2019 sustainability report is available for download here.