Delivering a climate package
“Everything we do is about moving you to a better place,” says Freightways, and that means bringing decarbonisation along for the ride.
Board chair and self-confessed evangelist Mark Cairns CFInstD says the logistics company is determined to become a less emissions-intensive organisation, being well aware its core business is reliant on transportation powered by fossil fuels.
“Climate change is something that is very real and should be taken seriously,” says Cairns, a converted petrol head now on his eighth electric vehicle. “Ultimately, not doing anything or doing very little will impact a business’s ability to retain customers, and grow.
“Some of our biggest learning has been around the challenge our businesses face implementing material change,” he says, citing the lack of suitable low-emission vehicles (courier vans with reasonable range) and very limited infrastructure for charging (New Zealand rates at 17 per cent of the world average for direct current charging infrastructure).
“In our industry there are currently very few options to replace heavy and light commercial vehicles, and aircraft that are operationally – let alone commercially – viable.”
Cairns says Freightways quickly embraced the Task Force on Climate-related Financial Disclosures (TCFD), created by the Financial Stability Board to improve and increase reporting of climate-related financial information.
“Freightways adopted TCFDs a year earlier than required and began recording and having its emissions certified as far back as 2014.
“It’s a whole board responsibility. We now have climate as an agenda item at every board meeting so it is front of mind and the whole board is kept up to date with the latest developments.”
The board also engages eternal advisors, including Ernst & Young and Tadpole, combined with director experience.
“This gives the board exposure to what a number of other businesses are doing in this space to aid decision-making,” says Cairns.
He says it is important to focus on areas that you can control, and where you can make material change and effect change in a sustainable way.
“Not all areas of carbon abatement are readily able to be accelerated quickly due to other influences, such as availability of suitable low-emission vehicle supply and lack of charging infrastructure. Also, decisions in this space need to be considered holistically – for example, considering the commercial, operational and service impacts alongside the emissions reduction opportunity.”
Engaging with other companies and organisations is important, says Cairns, citing their collaboration with privately owned transport company HW Richardson Group and their hydrogen retro-fitting project for heavy commercial vehicles.
“We are currently assessing whether this fits our operation and where hydrogen retro-fitting could work for us.”
Freightways is an active member of the Climate Leaders Coalition, Sustainable Business Council and the New Zealand Hydrogen Council.
It has partnered with Ara Ake, the national centred focused on future energy development, in developing its total cost of ownership tool for hydrogen-fuelled line-haul vehicles, in conjunction with the Auckland University of Technology.
Cairns, who is also a director of Auckland International Airport and Meridian Energy, sees high value in being involved in the IoD’s Chapter Zero NZ initiative, particularly “networking with other members and understanding their successes and failures”.
