ST actively manages the social, safety and environmental impacts resulting from transportation and logistics for products, materials and employees, considering overall efficiency and reduction of CO2 emissions.
A range of initiatives and programs are employed to minimize both our direct and indirect CO2 emissions, as covered by Scope 3 of the Kyoto Protocol. We have implemented several company-wide programs to reduce our transport-related carbon footprint for products and for employees’ transportation, while maintaining the operational requirements of our internal and external stakeholders.
Ahmed Elhimdi, Global Logistics and Warehousing Organization Director
"Sustainable management of transportation and logistics to support ST and our customers' manufacturing networks is key. We have implemented several company-wide programs to consistently reduce ST transport-related carbon footprint in line with ST's Sustainability Strategy."
Product transportation and logistics
Product transportation incorporates the movement of semi-finished and finished goods between ST and customer sites and the transfer of equipment during manufacturing processes.
ST’s product transportation strategy focuses on:
- minimizing product weight and volume during packing and shipping to ensure that more products are shipped per cubic meter;
- optimizing internal transport through efficient planning that considers freight footprint efficiency and frequency alignment with internal customers’ needs;
- ensuring that the selected mode of transport is the most appropriate for the requested routing, in terms of cost, speed, quality and environmental impact;
- monitoring changes in customer demand patterns or delivery points and engaging the sales organization in the optimization process;
- introducing direct shipment routes and taking every opportunity to reduce the distance for each kg of product travelled via the ST network.
At a local level, many of our sites deploy employee mobility programs, developing greener means of transport and offering alternative solutions to the use of individual cars.
- Several sites have a complete employee transportation plan, offering a mixture and variety of sustainable options e.g. public transport including urban, extra-urban and train; bikes and electric bikes; car-pooling networks; electric or gas cars;
- Green transport initiatives are frequently promoted through specific campaigns and awareness-raising events Employees are encouraged to test electrical cars, motorcycles or bicycles;
- Incentives are offered to encourage employees to use public transport, coaches or car-pooling networks. Some sites have gone further than this to encourage the deployment of green transport plans by their local catering, cleaning and security subcontractors.
Transport and logistics objectives
- Reduce the carbon footprint of ST product transportation by 15% by 2014.
- Ensure that all sites have a formalized mobility plan to promote alternative and greener modes of transportation and evaluate the benefits.