MIT study shows the value of Damco's SupplyChain CarbonCheckTM

MIT study shows the value of Damco's SupplyChain CarbonCheckTM

Madison, NJ (January 2010) - MIT Center for Transportation & Logistics (MIT CTL) has now identified Damco's carbon management approach as potentially up to 25% more accurate than other approaches.

This was announced in a newly published joint study, conducted by Damco and MIT, on supply chain carbon footprint calculations, aiming to develop ways for companies to map their footprint effectively, and identify the most effective opportunities to reduce it.

Erling Johns Nielsen, Global Head of Damco's supply chain development practice, states: "Accurate mapping of the supply chains, identification and management of CO2 hotspots is critical for companies to be able to take the right actions to reduce their carbon emissions, deliver on CSR strategies and significantly cut costs.

"Companies are faced with increased demands to ensure transparency and common understanding of transportation and distribution carbon emissions. However, there have been no common standards across the 3PL industry for how to calculate a company's carbon footprint. Damco, through our work with MIT, has now established a new industry benchmark for how supply chain carbon emissions should be calculated in a uniform way."

The main conclusions in the study are that Damco's approach to carbon footprinting is more comprehensive and accurate than the more generic and predominant carbon footprint assessment when ocean logistics are part of the mix. According to MIT CTL researchers, the generic approach under- or over-estimate carbon emissions by up to 25% at a product level from factory door in Asia to a distribution centre in the United States.

Mr. Nielsen explains. "We compared two methodologies for how to calculate a company's carbon footprint. One was calculated using publicly available emission standards, which is the most common way in the market, and the other using Damco's SupplyChain CarbonCheck™ methodology which is based on operational insights, live data and more detailed emission standards and calculations."

"The work undertaken by MIT to determine the value of the SupplyChain CarbonCheck™ is a further step in our goal to present innovative and valid solutions to our customers in such crucial topics as Green Logistics and Climate Change" says Martin Thaysen, Chief Commercial Officer for Damco. "We have an ongoing commitment to create value for our customers and enable them to reduce their carbon footprint and associated costs. This is something we continue to invest in."

About SupplyChain CarbonCheck™

Damco's SupplyChain CarbonCheck™ service helps companies assess and reduce their supply chain carbon footprint. Since late 2007, Damco has conducted SupplyChain CarbonCheck™ projects for a wide range of companies globally. Our 5-step methodology has proven that CO2 reductions can be achieved through increased supply chain efficiency, which also translates into reduced supply chain costs and improved service levels. To learn more about our green logistics services, please contact us at
With the current strong focus on climate change Damco expect a further surge in customer demands for green supply chain services.

About MIT

The Massachusetts Institute of Technology (MIT) is one of the world's most prestigious universities. Located in Cambridge, Massachusetts, United States, MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological research.

About the MIT Center for Transportation & Logistics

MIT CTL has been a world leader in supply chain management research and education for more than three decades. Combining its cutting-edge research with industry relationships, the Center's corporate outreach program turns innovative research into market-winning commercial applications. And in education, MIT is consistently ranked first among business programs in logistics and supply chain management. For more information, please visit

About Damco

Damco is the new, combined brand of the A.P. Moller - Maersk Group's logistics activities.

Damco offers a broad range of supply chain management and freight forwarding services to customers all over the world, and has 10,500 colleagues in 272 offices, covering over 93 countries in Africa, Asia, North America, Europe, Middle East, and Latin America.

In 2008, the company had a net turn-over of USD 2.8 billion, shipped more than half a million TEUs ocean freight, air freighted over 60,000 tonnes, and handled over 50 million CBMs (equivalent to 2 million TEU) for our supply chain management customers.

Damco is an independent business activity within the A.P. Moller - Maersk Group. For more information, please visit

For more information on Damco's SupplyChain CarbonCheckTM , please contact Mark Byrne, Marketing at +1-973-514-5126 or e-mail at