Driving data granularity and supplier engagement: insights from Hapag-Lloyd's Manager of Supplier Sustainability

Driving data granularity and supplier engagement: insights from Hapag-Lloyd's Manager of Supplier Sustainability

In a recent episode of the DVZ Zero podcast, Tim Peters, Hapag-Lloyd’s Manager of Supplier Sustainability, discusses sustainable supply chain practices alongside our CEO and co-founder Helen Tacke. They explore the ways Hapag-Lloyd and Cozero are advancing primary supplier data and emissions transparency.

Valeria Acer
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Valeria Acer
November 11, 2024
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We recently met Frederic Witt, host of the DVZ Zero podcast, in Hamburg to discuss sustainable supply chain practices with our customer Hapag-Lloyd. The episode features Tim Peters, Hapag-Lloyd’s Manager of Supplier Sustainability, alongside our CEO and co-founder Helen Tacke. Together, they explore the ways Hapag-Lloyd and Cozero are advancing primary supplier data and emissions transparency. 

Below, we’ve highlighted key insights from their discussion, along with some background on Hapag-Lloyd’s ambitious sustainability strategy.

Listen to the full podcast episode for a deep dive into these topics.

Podcast host Frederic Witt with Cozero CEO and co-founder Helen Tacke

Meet the guests

Tim Peters has been the Manager of Supplier Sustainability at Hapag-Lloyd since January 2023. Before joining Hapag-Lloyd, Tim worked in the chemical industry, where he managed sustainability efforts, including CO2 reporting and logistics emissions reduction. His experience in chemical distribution and supply chain management helped him transition into his current role, where he now oversees procurement and supplier sustainability at Hapag-Lloyd. A key part of his work involves creating transparency around transport-related emissions and finding ways to decarbonize the supply chain.

Helen Tacke is a German entrepreneur and co-founder of Cozero. She previously worked in the venture capital industry and is now the visionary behind Cozero, leading the transformation into more sustainable business models through data-centric approaches and innovative solutions.

Helen Tacke and Tim Peters at the podcast recording in September 2024

Hapag-Lloyd’s sustainability strategy

Tim breaks down Hapag-Lloyd’s sustainability efforts into two main areas: reporting and decarbonization. Reporting includes annual sustainability reports and compliance with regulatory frameworks like CSRD (Corporate Sustainability Reporting Directive) or CDP (Carbon Disclosure Project), while the decarbonization aspect focuses on reducing emissions from the company’s large shipping fleet. As Tim mentioned, Hapag-Lloyd employs around 16,000 people and operates more than 280 ships, meaning sustainability efforts span across various teams and functions.

In general, Hapag-Lloyd’s sustainability strategy is a key part of its long-term corporate goals, focusing on decarbonization and environmental responsibility. The company has committed to achieving net-zero fleet operations by 2045, with a significant milestone of reducing emissions by one-third by 2030 compared to 2022 levels. This is being achieved through various measures such as modernizing its fleet, adopting cleaner propulsion technologies, and increasing the use of alternative fuels like liquefied natural gas (LNG) and biofuels.

In 2023, Hapag-Lloyd reduced its fleet's GHG emissions by 0.8 million tons by employing these fuels. Moreover, the company is investing in future-proof propulsion systems, including LNG-capable, dual-fuel vessels. Their strategy also includes promoting biodiversity, enhancing transport safety, and reducing air pollutants, aligning with global sustainability goals like the Paris Agreement’s 1.5°C target.

Tackling Scope 3 emissions

Helen and Tim address  the complexity of Scope 3 emissions, which cover the entire value chain—upstream and downstream—from suppliers to customers. They specifically focus on Scope 3.4, which deals with logistics services purchased by Hapag-Lloyd. 

A key challenge in this effort is the reliance on secondary data for emissions, which are typically based on industry averages. Hapag-Lloyd aims to transition to primary data, meaning supplier-specific data, for a more accurate understanding of their supply chain’s environmental impact. This transition is crucial for driving sustainable logistics solutions.

Tim highlights the importance of collaborating with suppliers, especially smaller ones lacking the tools or knowledge to decarbonize independently. Hapag-Lloyd plans to use Cozero’s supplier management module to engage suppliers directly and encourage them to adopt greener practices. This collaboration helps both parties create actionable steps toward reducing emissions.

"Our aim, and the collaboration with Cozero has been crucial to this, is to replace secondary data with primary data as quickly as possible," says Tim. He stresses that this will help obtain reliable data that will allow the company to get closer to reality and select suppliers accordingly in the future.

Helen explained how Cozero helps businesses track and report emissions through their software platform, which breaks down emissions into manageable data points. The platform offers detailed emissions metrics for individual suppliers, products, and services, providing insights that help businesses make better decisions about where to decarbonize.

Cozero’s Climate Management Platform: Helen Tacke outlines the core modules of Cozero’s platform:

  1. Cozero Log: This module focuses on carbon accounting, allowing companies to monitor emissions across their entire value chain.
  2. Cozero Act: This module is aimed at decarbonization strategies, helping companies identify hotspots and shift from secondary data to primary data to make more accurate decisions.
  3. Cozero Share: This supports reporting needs, including sustainability reports, CDP reporting, and other stakeholder communications.

Regional differences in sustainability and future trends

Tim Peters and Helen Tacke explore the varying levels of development in sustainability across regions. While Europe is making significant strides, with innovations like biofuels, electric trucks, and hydrogen-powered barges, regions like South America and parts of Asia are lagging behind. Hapag-Lloyd focuses its sustainability efforts where solutions already exist but is also running pilot projects in less developed regions to foster growth and decarbonization there.

The conversation shifts to the future role of climate performance data in procurement decisions. Both guests see transparency and emissions reduction becoming increasingly critical in the coming years. Tim Peters foresees companies soon basing procurement choices on suppliers’ climate data, though he acknowledges this transition will take time globally.

"We are also seeing a growing interest in data transparency among our clients," says Tim.

Helen notes the growing customer demand for transparency and greener solutions, with many now willing to pay a premium for eco-friendly options. She predicts a trend toward more frequent emissions reporting, possibly moving from annual or quarterly updates to monthly, allowing companies to respond swiftly with more effective sustainability measures.

Wrapping up 

Tim closes the episode by stressing the importance of collaboration, both across departments and with external partners. Helen introduces the idea of emissions intensity—understanding emissions relative to business metrics like revenue or geography. This contextual approach, she argues, can help companies make smarter, more focused decisions on reducing their environmental footprint.

The episode concludes on an optimistic note, with both guests confident in the sustainability progress ahead.