Partnering to Reduce Greenhouse Gas Emissions in our Supply Chain

Photo: Lavinia Oldendorff, a Newcastlemax size vessel from the Oldendorff Carriers Eco fleet

At Teck, we believe that we have a responsibility to help address the global challenge of climate by reducing emissions not only at our operations but also in our value chain. That’s why part of our climate strategy is a commitment to working with transportation providers to reduce emissions downstream of our business, also referred to as Scope 3 emissions.

In 2021, Teck partnered with Oldendorff Carriers in an innovative initiative to use energy-efficient bulk carriers for shipments of Teck steelmaking coal from the Port of Vancouver to international destinations, reducing CO₂ emissions in our steelmaking coal supply chain. This industry-leading initiative is estimated to reduce CO₂ emissions by 30 - 40% for shipments handled by Oldendorff.

Optimizing our shipments to realize environmental benefits

This value chain initiative is the result of the long-term relationship between Teck and Oldendorff. In early 2021, the companies began discussing ways to work together to reduce the GHG footprint of Oldendorff shipments of Teck’s steelmaking coal. As part of their own sustainability commitment, Oldendorff has been looking into efficiency and sustainability improvements including engine and hull design modifications, and scrubbers for reducing sulfur emissions, which reduce emissions of GHGs and other pollutants during transportation.

In addition to taking advantage of these improvements, the initiative involves optimizing Teck’s shipments of steelmaking coal, allowing for vessels to travel at reduced speeds while maintaining the same volume of shipments to customers. This is further supported by the completion of upgrades at Teck’s Neptune Terminals, which allows for larger, Newcastlemax size vessels to be used, further improving efficiency. Oldendorff provides a fleet of approximately 700 bulk carriers from Handysize to Capesize (which includes Newcastlemax). This variety allows Teck shipping flexibility and emissions reduced up to 40% on each voyage, with an estimated savings of up to 45,000 tonnes of CO₂ per year, which is equivalent to removing nearly 10,000 passenger vehicles from the road.

“Oldendorff Carriers is very pleased to collaborate with Teck on this effort to reduce CO₂ emissions in the bulk supply chain. By working together with the Teck logistics team and challenging fundamental logistic concepts, we were able to develop an environmentally optimized delivery program. Using our fleet of ‘eco’ bulk carriers in this re-envisioned delivery program will reduce CO₂ emissions significantly,” says Peter Twiss, CEO of Oldendorff Carriers.

Looking ahead at further value chain emissions reductions

This innovative initiative also aligns with work being done by the International Maritime Organization, which has set new GHG emissions standards for 2030 to reduce global shipping emissions. As Teck works to set a Scope 3 emissions reduction target, this project, along with other initiatives with our customers, transportation providers and industry associations, helps us advance towards our commitment to reducing value chain emissions.

Learn more about our approach to reducing emissions in the Climate Change section of our website.