3 questions to Ted Lundström at Ovako about Emission Tariffs
October 22, 2020
Emission Tariffs is an innovative way of calculating emissions that use the proven format of traditional transport tariffs. The concept has been developed in close collaboration with the Network for Transport and the Environment (NTM), and Ovako, which has been the first TMS customer to implement Emission Tariffs in its operations.
Ovako has now, after a period of development together with Unifaun, optimized its use of Emission Tariffs and started using the function in its daily work. Thanks to Emission Tariffs, Ovako can fully take emissions into account in decision-making and thereby actively control shipments of freight to also take climate impact into account.
The work is completely in line with Ovako’s strategic position as one of the world’s most sustainable steel producers. We have asked three questions to Ted Lundström at Ovako about his thoughts on Emission Tariffs and transport-related environmental impact.
Why is Emission Tariffs interesting as a concept?
For Ovako, it has been important not to invest in a reactive follow-up where an outcome is evaluated long afterwards without creating a working method that enables continuous development. This means that by using Emission tariffs, Ovako is investing in proactively calculating our emissions in advance so that we can work more controlling in our daily work. This gives Ovako a visibility and speed in addressing the challenges that society has before it regarding the climate issue.
In what way is it important for Ovako to work proactively in reducing transport-related emissions?
Sustainability is an integral part of our business, and we are constantly working to reduce our climate impact, where we already have 80% lower carbon footprint compared to the global average. An important part of this work is to work with our transports. The data is to some extent a fresh product, especially when the rate of change is high. It is therefore very important that we at Ovako create models that can provide us with decision-making as frequently and early as possible. It is not only the major decisions that are made annually at a strategic level that are in line with our goals, but also the daily small decisions.
What do you think is important for the Emission Tariffs or other similar solutions to be used more widely by companies?
A good method development is the most important key to success. It requires an efficient process and a method that is transparent and also perceived to reflect reality in the best way possible. The goal must be that improvements are not achieved by screwing too much on the method, but rather by actual changes that have a real effect on the emissions we generate. This is a challenge that Ovako is prepared to tackle.