We are good to start. We can see, yeah, people still growing. Let's see while people are joining. Let me just present myself. Thank you for joining today for this webinar, this new webinar we are presenting today about Sustainability in Motion, From Strategy to Supply Chain Execution. I'm Julia. I'm Regional Head of Operation and Marketing for Europe Source West, and I'll be your facilitator today for this session. We're really pleased to have you on this specific session talking about sustainability in logistics and supply chain because we know it's been clearly reached a turning point today as an important topic for many companies. The conversation in terms of sustainability has been moving beyond why decarbonization matters and even beyond reporting to a much more practical question. How do we actually make it work day to day at scale and in a commercially viable way? During Smart Freight Week hosted in Amsterdam last month, early insight from the event showed a clear shift from ambition to execution and real world impact. That's what we will be talking today. Before we begin with the topic of the day, just some ground rule here. We'll be having 45 minutes of content, following with a Q&A session at the end. Please submit your question in the Q&A chat, we are able to answer it all along the floor with the webinar, and we'll keep the more specific one at the end. Use the chat box with us just to interact and add any comments, but please just enter your question in the Q&A box only. How you will receive this presentation. After the webinar, you'll receive an email with a survey link. This survey will allow you, after the completion, to download the presentation of today. How you can get more information about our future events or any market updates, information that we are communicating. You can scan this QR code and subscribe to our newsletter, news flash, and upcoming events. Let me go through first our speakers of today. We have Elmar and Juan today with us. Just going through a quick introduction. Elmar is our Director Service Provider Management and Sustainability for Europe at Expeditors. He leads development and execution of the company's sustainability strategy for Europe and also the development of our service provider management program. Before taking on his current role, Elmar had several senior leadership position across program management and service provider management in Europe, giving him a very hands-on and end-to-end view on how sustainability initiatives must integrate with daily logistics, operation to be successful. Our second speaker today, that will be also here to support a specific question about sustainability topic is Juan Posada with us today, our Senior Director of Sustainability at Expeditors Seattle corporate office, where he focuses on building new capabilities and solution across the supply chain and logistics scape. With experience ranging from digital business to enterprise level transformation, Juan brings a strong perspective on how data technology and smarter decision-making enables sustainability to move from vision into everyday execution. With this intro, I'll be handing over to Elmar. Thank you very much. Right. Thank you. It's my pleasure to be here and to talk with you about the Smart Freight Week, the Smart Freight Centre, and what we have learned from them. Let's first talk about what is actually the Smart Freight Week before we go into the agenda. It's, this was, by the way, the fifth time that the Smart Freight Week happened. It was organized by the Smart Freight Centre and Association that brings together all the, all the industry, participants that are, you know, have an impact to decarbonizing, logistics and the entire supply chain. We see shippers, we see carriers, we can see, Expeditors, forwarders, you know, the transporting companies. Together, there are many discussions over the years on what would be the way forward, what could be done for insetting, what fuels would be most likely, how is the calculation done in the best way. I mean, also the software providers on, you know, how to transport, how to calculate CO2 impact and all of this. They are also there as well. I think this year we're about 1,000 participants there over three days, and wholeheartedly recommend you to join one day. It's, if you haven't been there yourself, as part of this webinar, we're gonna give you a quick recap on that. I'm gonna first deep dive a little bit into the European side of things. There was a lot of discussion about zero emission trucking. We're going to talk a little bit about the HVO diesel. I'm going to hand over to my colleague about marine fuel and air, sustainable air fuel, before we close out on this. As we can see here on the agenda, it's also really a little bit of a sneak peek preview about some slides. We see a lot of conversation and have seen a lot of conversation about the European key corridors. Going all the way from Poland, Germany, Belgium, France, down to Iberia. This is part of the network for Milands. Also Nordics, enabling the electric transition. This is pretty much. Also, this is where the trend was, where in previous years there was still discussion about will it be hydrogen, will it be biofuel? Actually, in this one, actually everything zeroed in on zero emission trucking, and there's a reason for that. There was the key panel, I would think, for the entire Smart Freight Week was when actually a representative of the European Union and European Commission for Transport and Energy have been in the room talking with a representative of the ACEA, which are the representatives of the European equipment manufacturers, about the future. With this, I'm now going to give you a little bit of an sneak peek into how this is going to develop in terms of impacts to our transportation requirements. This starts, and a key factor here is with the Regulation 1610, which is also known as the EU CO2 emission standard for truck producers. This will impact us as a transporter and you as a shipper in regards that as of 2030, Mercedes-Benz, Daimler Truck, Benz, Chrysler, MAN SE, all the big stuff, all the big companies, they will have to pay a fine of 4,250 EUR per gram of CO2 that the trucks, the diesel trucks that they produce and put out there on the road would not hit this emission target that has been set by the European Union. There also were talks about that, how they have been improving the trucks since 2019 baseline going forward till today, and then they have forecasted it. Based on this forecast, if everything stays the same, which the European Commission has said they would do so, then by 2030 a truck, a diesel truck that costs nowadays EUR 120,000 to buy, or like EUR 100,000, would at that point cost EUR 200,000. This would have a massive impact on the total cost of ownership, but also be a massive enabler for zero emission trucking, and I'll show you more about this in the next two, three slides. Another regulation that is an enabler that was talked about was AFIR, the 1804 EU regulation, which mandates that between 2025 and 2030 there will be truck charging stations every 60 km on a trans-European highway. Remember the slide that I showed already on the previous, the map there? We need a higher density of truck chargers because they need 150 kW, 450 kW. They can't just go with what we need for our electric cars. This is the big challenge to get even the capacity out of the grid. Now, this could be a solution enabler so that more people can even provide the zero emission trucking. Another enabler that is happening right now, so if you have not been aware, made aware of, maybe you will be soon. For instance, a new road toll is starting in Europe in July in the Netherlands. The good news there for electric trucks is that they're exempt. Just like there's a zero emission trucking exemptions for the European dictated for the European Union that there should be in every country, this is being applied in Germany as well. This would make electric trucking much more cheaper than diesel already today. There will be also further air pollution surcharges coming in in regards to Euro 7. ETS2 is going to also be supportive in regards to that, which will impact the fuel price, which I'll show you a little bit later. Let's not forget there are these enablers like cities of Paris, Amsterdam, Copenhagen, that have plans to even ban diesel trucks altogether to go into the city center. The only way to even get freight there will be electric. It is the time. This gives the business case. Like, there were many conversations on the Smart Freight Week about how can we make a positive business case to go from all the way from Poland, with companies like Pragma Charge, enabling the fast charging for trucks over Midlands down to Iberia. In the past this was more about market analysis, and then there was about the feasibility studies, now it's about getting commitments and to actually get trucks on the road. They are even going so far to say if service providers feel a fear of committing to buying electric truck, they even make the commitment to say, "If you don't need this electric truck anymore, we promise to buy it back from you as long as you charge with our charging stations." Yeah. There are those European key corridors, they looked at the data there in terms of the total cost of ownership. Now remember this conversation about the costs of an ICE truck doubling. We have here the cost of a diesel truck. Oops. Right now it costs about $100,000-$120,000 if you buy them. Yeah. Now, if you have a battery electric truck, yeah, then this could cost around $285,000-$300,000, depending how many trucks you take and how well you negotiate. Yeah. This, you know, if the moment you remove the toll, the road toll, or there is a road toll like it will come in the Netherlands, yeah, and there's exemptions for battery trucks, then. Cost parity. There's a business case, and this can help us to get our service providers, hopefully in the next year or so, to transform more and more of their diesel trucks into electric trucks, and talk with them about how can we get them charged at the depot or on the highway. They made calculations that even today, thanks to certain impacts, they see that 38% of all the transport done in these key corridors, yeah, this Western key corridor, if you look at information from Eurostat where transport start and where they end, could theoretically drive already at parity with what diesel transports cost. It's only five percent more expensive to drive green. There's still a little bit of a surcharge to driving green, but more than half already for the first time, it's already technically possible to get there. Their forecast is that we will see almost 7,600 heavy-duty trucks to be rolled out onto road very soon. More than half of them should operate at cost parity. Key focus of investment they see is in Germany and Belgium because the infrastructure is there. Let's talk now about infrastructure. There were many discussions about port drayage at Smart Freight Week. That right now is a good time to get your drayage transformed into electric if this is something that you want to think of. Because right now there is still a bit of capacity for the grid in the ports, but they also made the case that if more and more and more trucks want to fast charge, they mostly do all want to charge at the same time. That's in the night, yeah. When, well, during the day they drive and at night they wanna charge. This could increase the electricity demand so much that then also if continuous demand from electrified vessels and all of this comes together, that there might not be enough electricity anymore. If we have access to electric trucks in Hamburg, Rotterdam, or Long Beach in our U.S., Europe, we already have secured some service providers that can work with us on that, so feel free to reach out. I'm saying is that if, you know, if you want to secure this electricity for yourself and you have warehouses in those areas, then this would be a time to secure electricity. Electricity is becoming a bit of an asset at this point, and that by 2030, it might take between three or seven years lead time just to get another megawatt or two into your facility. That was here a warning and forecast in regards to that. Hey, Elmar? Yes, please. Sorry to interrupt you. We've got a question from Celine in the chat. Yes she's asking whether everything you've discussed will also apply to LTL services. Oh, you mean like, in terms of? Less than truckload Less than truckload. If you have part load electric trucking. Yeah. I mean, right now, obviously the easy one is, of course, dedicated. The moment that there will be a strong enough highway network to charge on the highway at a reasonable cost, we'll also see part loads to become possible. Right now the range of a truck is 500 km, yeah? You will need, actually, you will need to be able to charge this truck with at least a 450 kilowatt charger to have it back full within 45 minutes at a reasonable distance, and then you can mix distance. Will part load trucking with unfixed routes become feasible? I would say yes, soon, especially if you see the range of trucks increase. I mean, like, we got our first electric truck in 2021. That had a range of 200 km. Nowadays they drive 500-600 km. My hope is that in one or two battery technology has come up enough to make LTL possible. This leads also right into this slide here, where we say this is another part of the total cost of ownership. Remember those two bars, diesel versus electric trucking, yeah? Highway fast charging can cost us nowadays with everybody around EUR 0.80 per kWh. This obviously drives up the total cost in order to get this run. Where we or anybody else has depot charging and we have solar roof panels on the roof, you know, you can get those costs down to, like, EUR 0.39, EUR 0.30 per kWh, if not cheaper. This is here now, a chart where they have done some research together with the Smart Freight Centre and Pelotis, where in Europe they see the highest density of not only, you know, highway chargers, but also chargers for trucks that are at random warehouses. Yeah. If, for instance, your warehouse has a truck charger, you become part of the solution, and you make it easier for those truck owners to come to your warehouse, because then they can get a couple of extra distance into their. You know, every kilometer counts. Especially if you can make it cheaper for the transport, you make it cheaper for yourself as well. There are also the representations about CapEx and OpEx options to that. Which means, hey, if you, if you invest a lot of money, then this is often not a feasible solution, yeah? We are talking here just upgrading to three, four electric chargers. You might have to get a permission. Getting a permission in Germany or Netherlands or France can sometimes take one year or one year and a half. The cost of the wires alone, yeah, to, for the charging equipment, but also the cable canals and every, all the other wiring. The copper alone could cost you $100,000 or $200,000 if the transformer is at the wrong side of the warehouse. You might have to go all the way underneath. You might have to tear up roads, yeah? The fuse box needs to be upgraded, yeah? Even just for getting a 50-kilowatt charger, this could cost $50,000, could cost EUR 10,000 to upgrade to a strong enough fuse box. Now there's the alternative options. Shell is one of them. There's VSP, there's Milands. In the U.S., there's TerraWatt, Greenland. Again, Shell. Where they come and say, "If there's enough, you know, if you as a shipper or as a forwarder commit to having enough pickup and delivery trucks or line haul trucks that run on electric, they will make this heavy CapEx investment as long as there are enough electric trucks charging." It's your choice on whether you wanna open this up to the road or not. If you open it up so that also other trucks can come and charge on your depot, then they make it cheaper. If you close it down, that only trucks that load in regards to your business would be allowed to charge there, then obviously more commitments would have to be made. There are ways on how you can secure yourself a little bit resilience here. Think about the current global energy crisis and how this has impacted our costs of going to the fuel stations. I have a hybrid car, and I feel it myself whenever I am running out of electricity. Driving with a heavy duty truck in Germany did cost, in March 2026, around $0.45 per kilometer. With an electric truck, yeah, if you make some highway charging and depot charging, remember $0.80, $0.30, yeah, then you could have already, in March, been cheaper off to go electric. Because of the highway toll exemptions. Also here you can see some impact there. What the impact was on those who drove diesel versus those who drove electric. Sustainability in these regards, you know, is now not only a question of saving CO2. At this point it can also become a topic of resilience, because what if the diesel keeps on rising? It will so by design. We don't foresee the HVO diesel to come back down, so let's talk about that. First let's talk about the positive side of things. Yeah? HVO, so sustainable trucking fuel, is becoming more available. So as you can see there, from 2024 to 2025, and now it's 2026, it is now possible to safely go with electric trucks on biofuel sorry, to go with diesel trucks on HVO in Italy, Spain, Netherlands, Germany, Sweden, Finland. You can easily go from anywhere to anywhere and ensuring that you will always find biofuel to fuel up with. This can reduce the impact by 90%. It costs more. It costs about 10%-15% more and not foreseen to come down. Even not if the scale is going to go up by which is being produced because of this effect. There is another legislation called RED III. This one demands that countries require their fuel producers to blend in more and more of this biofuel into the standard diesel. Which means that even if you own a diesel car and you go to the fuel station, and you just pump up with normal diesel, you will still get 10% or 20% or 30% of biofuel into your car. You cannot claim the cost with the CO2 reduction for it. Yeah. If you want to claim it for your freight, yeah, we can get you in connection, we can get you this insetting, how it is called, CO2 certificates, yeah, for this fuel that has been put into this pump. This also means in terms of price impact, that we now don't see things like the HVO fuel price to jump up in things like that. Because here, the blend was, for instance, mandated to be higher. Even if you say like, "Okay, is your zero emission trucking maybe still a little bit too early, but we can do something about biofuel?" The answer is yes, but I would rather say it's a transition, not a ongoing solution. It's a very feasible low investment on a, from a CapEx side solution that we can do straight away. You know, very, very quickly. Yeah. Now, there is though also another thing if you still think about diesel, ETS2 is coming. It was postponed by one year, but it wasn't canceled. Yeah. As per the global e- economics, the diesel rates have gone up this year already. Should have gone up more if ETS2 would not have been postponed, but they will next year. Just think about this chart and offset it by one year, by definition and by design, fuel will get more and more and more expensive. Now, think back at the total cost of ownership comparison that I showed you between an ICE and a battery electric truck. This is the level, this is the leverage on together with this CO2 emission standard that, you know, truck producers will have to pay. Electric trucking is the future. Without any wonder, nobody's talking hydrogen anymore. Nobody was talking CNG on a Smart Freight Week. Everybody was talking either HVO as it becomes more available and is a great solution right here, right now to reduce the impact the that you and me as a shipper and forwarder can make together. Diesel price increases are going to come by design. This is what the Euro Commission is out, you know, to bring to the European market, not only from diesel price, but also truck costs will impact us. The future is electric. That's my takeaway from the Smart Freight Week. With that, I'll hand over to Juan. Thank you, Elmar. Good evening or afternoon, everybody. Pleasure to be here. I'm in the Seattle office, so a little early for me. I'm speaking to you from the past. You guys are in the future. I wanna share the perspectives that we've learned on sustainable aviation fuel or on sustainable fuels in general. However, the main focus is on the aviation side because the intensity of aviation transportation is just so much so much higher. The truth is, you know, sustainable aviation fuel is the strongest lever we have in order to impact transportation emissions at this time. Sustainable aviation fuel alone cannot really carry our goals related to Scope 3 decarbonization in the near term. This slide explains why. This is a practical example based on about 30 large global fashion companies. We're using it to illustrate why what I'm sharing with you is true, that SAF on its own cannot carry our decarbonization goals. If you look across these 30 companies, their total Scope 3 emissions are estimated to be around 90 million tons of CO2E. Of that, the transportation and distribution accounts for roughly 8 million tons. That's about nine to 10% of their Scope 3 emissions. That's probably similar to what it is for many of you in your businesses. What we find is generally, category four, so upstream transportation and distribution emissions might account for between nine and 12% of your overall Scope 3 footprint. Of those emissions, a large percentage are driven by aviation for air cargo. If you assume a modest goal, let's say that you wanted to mitigate 10% of those transportation and distribution emissions using sustainable aviation fuel, that would mean that you're looking to mitigate about 800,000 tons of CO2E. To achieve that reduction, you would require about 320 million liters of jet fuel per year, assuming about an 80% lifestyle emissions reduction, life cycle emissions reduction compared to conventional jet fuel. That's about average. Click the right button. Here's the quirk. Do it. The production of SAF has been doubling year over year for the last three years. It's expected to slow down a little bit in 2026. In 2025, it doubled over 2024 and reached about 1.9 million tons of fuel, and that's equivalent to about 2.4 billion liters. We remember, we're talking about it takes 320 million liters to offset 10% of the emissions by 30 companies. The overall production of jet fuel is 2,400 million liters. There's simply not enough SAF to go around to get us to where we need to be in terms of keeping, you know, to within one and a half degree Celsius. As an interesting kind of factoid, the entire jet fuel, sustainable jet fuel production, for 2025 was equivalent to zero point six percent of the entire jet fuel consumption for the year. It's literally a drop in a bucket. It's the best lever that we have at this point. Elmar, if you can move to the next slide, please. Yes. If you look at sustainable, you know, trucking fuels, HVO, Elmar addressed it a little bit, sustainable marine fuels, similar situation. This slide kind of highlights the role of, you know, these other types of sustainable fuels, as part of a strategy stack, to help us achieve our kind of near term decarbonization goals. Both are very, very important, because asset turnover and full electrification will take a lot more time than, you know, we can, than we have time for, frankly. Sustainable fuels have to be a part of your decarbonization portfolio in the near term. Next up, next slide. Let's talk about kind of book and claim. This slide explains the market conditions that make book and claim not only useful but necessary in today's decarbonization landscape. These conditions kind of show up repeatedly across fuels, freight, and heavy transport. The first one is the supply of the green commodity. Whether we're talking about aviation, marine, or low emission trucking fuels, including electric, availability remains very constrained. The production capacity, the feedstocks, and the infrastructure are still scaling, which means that physical matching isn't always possible, even when the demand exists. In second place, there's the cost burden aspect of it. Decarbonizing heavy industry and transport requires significant upfront investments, new vessels, vehicles, new infrastructure, and new fuel production facilities. What book and claim does is it allows these higher costs to be shared across the value chain, because instead of forcing matching one-to-one and every participant to absorb them individually, or wait for full physical availability, it can be shared. Book and claim systems decouple the actual production or consumption of a commodity from the environmental benefits of that commodity. It enables us to trade separately on them both, which means that we can, we can find the reductions without necessarily having to find the actual consumption of the commodity directly, in our conveyances. What this means is that it results in disaggregating the demand. You know, early markets, or, you know, frequently suffer from geographic mismatch, meaning, you might have aviation fuel, but not in the origins where you ship out of. Or we may have, you know, EV incentives in certain parts of the world, but not in others. You know, a book and claim system enables us to kind of spread out, you know, and take advantage of the demand where it is and the supply where it is, and matching those two together, even if those two locations don't match. This is critical to getting these new markets off of the ground and, you know, getting to the point where they can scale individually on a global basis. Next slide, Elmar. The last thing that I'd like to share is, we recently released our 2025 sustainability report. It talks about, you know, our efforts to decarbonize our own operations, our efforts to work with customers as well as our service providers to decarbonize or reduce the emissions associated with transportation and the value chain. It talks about, you know, the impact that we try to bring to the communities that we operate, we operate in, as well as a lot of detail around our, you know, governance and ethics framework. I strongly encourage you to take a look at it. It, the link will be in the slides that will get distributed to you shortly after we wrap here today. If there's any questions that can come up, after you review it, you can reach out to me personally, or through your account manager. Get in touch. Let us know what you're thinking. Let us know what your priorities are and how we can support your, your own efforts on decarbonizing your supply chain. With that, I think we can open it up to Q&A. Yes. Thank you. Yes. Let's open it here. I don't see specific question in the Q&A box, but just posing here if you want to address any question, in the Q&A box now, we can take a couple of minute to answer them. Yeah. Otherwise, on the survey link that you will receive just after, you will be also able to add any comments, any question. As also Juan mentioned, feel free to reach out to your Expeditors contact or us in the audience now. I don't know if we are getting some question. I don't see them dropping in the chat in any case. If there is no specific question or I can see maybe people raising hands, but feel free to drop the question if you have in the Q&A or the chat if you are not able to do it in the Q&A. Otherwise, thank you everybody for joining, and it would be a pleasure to meet you in person at the next Smart Freight Week when it comes around. I wholeheartedly recommend going. This is something for everybody, for the shippers, for the transporters, for the importers and the goods receivers. Then we can meet up in person there. If you have questions, feel free to reach out to also myself directly, you know, and happy to help with enabling this transition. Great. All right. Thank you everyone. Have a good day. Thank you all, and good day. Thank you. Bye-bye. [crosstalk] Bye. What they've essentially done is taken all those different.