WEBVTT 1 00:00:00.840 --> 00:00:02.280 Okay, Thanks so much, LeAnn. 2 00:00:02.280 --> 00:00:03.880 And good morning, everybody. 3 00:00:03.880 --> 00:00:06.960 So we've got a really great panel here with, 4 00:00:07.200 --> 00:00:10.200 I would say, industry leaders in trade sustainability. 5 00:00:11.160 --> 00:00:13.520 As private sector trailblazers, these executives 6 00:00:13.520 --> 00:00:16.520 are shaping the global supply chain in a way that honors their own 7 00:00:16.760 --> 00:00:20.200 sustainability commitments and inspires others to do the same. 8 00:00:20.760 --> 00:00:23.440 So I quickly introduce our panel. 9 00:00:23.440 --> 00:00:25.640 We're joined by Mr. Mike Parra. 10 00:00:25.640 --> 00:00:28.760 He is the CEO of DHL Express Americas. 11 00:00:29.440 --> 00:00:32.439 Mike brings over 26 years of experience with DHL, 12 00:00:32.720 --> 00:00:35.720 the global logistics and international shipping company 13 00:00:35.720 --> 00:00:39.480 that is actually now rapidly developing in the field of green logistics. 14 00:00:40.440 --> 00:00:43.320 He's responsible for business in over 55 countries 15 00:00:43.320 --> 00:00:46.560 and territories across the Americas, which includes the United States, 16 00:00:46.680 --> 00:00:50.280 Canada, Mexico, Central America, South America and the Caribbean. 17 00:00:50.760 --> 00:00:51.320 Welcome, Mike. 18 00:00:52.720 --> 00:00:53.640 Next, we have Mr. 19 00:00:53.640 --> 00:00:54.720 Matthew Thurston. 20 00:00:54.720 --> 00:00:58.360 He's the vice president of sustainability at REI. 21 00:00:58.440 --> 00:01:01.440 Matthew has served nearly 13 years with REI co-op, 22 00:01:01.680 --> 00:01:05.160 a global brand for top quality outdoor gear and apparel committed 23 00:01:05.160 --> 00:01:08.520 to environmental stewardship and sustainable business practices. 24 00:01:09.840 --> 00:01:12.400 He is a sustainability business leader 25 00:01:12.400 --> 00:01:16.240 with expertise in product, manufacturing and retail, and his team looks 26 00:01:16.240 --> 00:01:21.000 after global sustainability, human rights and sustainable chemistry. 27 00:01:21.480 --> 00:01:23.600 Welcome Mat. 28 00:01:23.600 --> 00:01:24.760 Next, we have Ms.. 29 00:01:24.760 --> 00:01:27.760 Dana Lorenze from Expeditors International. 30 00:01:28.360 --> 00:01:32.520 Dana leads the senior vice president of Global Customs for a worldwide 31 00:01:32.520 --> 00:01:36.720 logistics and freight forwarding company at the head of Sustainable Innovation. 32 00:01:36.920 --> 00:01:40.160 She has over 25 years of experience at Expedited International 33 00:01:40.560 --> 00:01:43.440 and is responsible for policy and strategy 34 00:01:43.440 --> 00:01:46.440 of expediting global customs product. 35 00:01:46.640 --> 00:01:48.600 Welcome, Dana. 36 00:01:48.600 --> 00:01:50.880 A Finally to my right, we have Mr. 37 00:01:50.880 --> 00:01:53.440 Michael Levine of Under Armour. 38 00:01:53.440 --> 00:01:54.720 Michael is Under Armour's Chief 39 00:01:54.720 --> 00:01:58.160 Sustainability Officer, Vice President and managing Counsel. 40 00:01:58.920 --> 00:02:02.280 He joined Under Armour in 2011 and is overseeing the development 41 00:02:02.280 --> 00:02:05.280 and execution of Under Armour's Global Value Chain, 42 00:02:05.280 --> 00:02:08.160 an enterprise wide sustainability program. 43 00:02:08.160 --> 00:02:10.560 As an attorney who began his career in public service, 44 00:02:10.560 --> 00:02:13.800 he specializes in ESG and human rights practices. 45 00:02:14.400 --> 00:02:17.520 He was co-chair of the American Bar Association's Corporate 46 00:02:17.520 --> 00:02:20.880 Social Responsibility Committee and has served on the Fair Labor 47 00:02:20.880 --> 00:02:25.280 Association, Board of Directors and Executive Committee since 2017. 48 00:02:25.320 --> 00:02:26.280 So welcome, Michael. 49 00:02:27.960 --> 00:02:29.520 Okay, let's jump right in. 50 00:02:29.520 --> 00:02:29.880 And Mr. 51 00:02:29.880 --> 00:02:32.880 Parra, why don't you start us off? 52 00:02:36.120 --> 00:02:37.040 Hello. 53 00:02:37.040 --> 00:02:38.640 Good. Good morning. Sorry about that. 54 00:02:38.640 --> 00:02:44.280 Didn't see the little light turned on, so I felt I wasn't portraying my voice. 55 00:02:44.400 --> 00:02:44.880 Good morning. 56 00:02:44.880 --> 00:02:47.600 Thank you to all of you for being here. 57 00:02:47.600 --> 00:02:48.720 I'm being told we're on time. 58 00:02:48.720 --> 00:02:50.760 Thank God for the moment. John. 59 00:02:50.760 --> 00:02:53.560 Thank you for the introduction and your ongoing commitment 60 00:02:53.560 --> 00:02:57.400 to work with DHL and the trade community to find meaningful 61 00:02:57.400 --> 00:03:00.480 and operationally feasible solutions 62 00:03:00.720 --> 00:03:03.640 to the challenges facing Customs today. 63 00:03:03.640 --> 00:03:05.800 So thank you for that. 64 00:03:05.800 --> 00:03:08.800 We go pouncing on it too early. 65 00:03:08.920 --> 00:03:11.400 It's especially exciting for me to be here today. 66 00:03:11.400 --> 00:03:14.760 And when Roger reached out to me and he said, Hey, we have a great opportunity 67 00:03:15.160 --> 00:03:18.000 to share some thoughts with CBP. 68 00:03:18.000 --> 00:03:22.440 As you launched the first ever form of green Trade Innovation Incentive. 69 00:03:22.520 --> 00:03:23.760 So thank you for doing that. 70 00:03:25.200 --> 00:03:26.440 First of all, DHL was the 71 00:03:26.440 --> 00:03:30.000 first logistics company to offer carbon neutral shipping, 72 00:03:31.000 --> 00:03:33.680 the first to make carbon efficiency targets 73 00:03:33.680 --> 00:03:37.720 and the first to make net zero emissions commitment by 2050. 74 00:03:38.680 --> 00:03:41.480 We're making these commitments not because government 75 00:03:41.480 --> 00:03:45.040 mandates them, but in response to three drivers. 76 00:03:45.240 --> 00:03:48.280 The first one is our customers are increasingly 77 00:03:49.440 --> 00:03:53.040 seeking sustainable solutions for their own supply chains. 78 00:03:53.200 --> 00:03:53.840 Number two, 79 00:03:53.840 --> 00:03:58.000 our investors are increasingly looking at the whole picture of a company 80 00:03:58.360 --> 00:04:04.200 with FTSE for good and other indexes driving investments into companies 81 00:04:04.520 --> 00:04:07.560 to see the response as well for global challenges. 82 00:04:07.920 --> 00:04:11.120 And number three, transportation and logistics operations 83 00:04:11.880 --> 00:04:16.720 are heavily carbon intensive, as you all know, and dependent upon energy sources 84 00:04:17.040 --> 00:04:22.000 that are becoming less reliable and subject to massive price fluctuations. 85 00:04:22.560 --> 00:04:25.160 So we need to take the steps to manage our own network 86 00:04:25.160 --> 00:04:28.200 reliability and costs for the foreseeable future. 87 00:04:28.680 --> 00:04:32.280 And the last point that I put here is as a company and we say this everywhere 88 00:04:32.280 --> 00:04:35.720 we go, we have a responsibility to do the right thing, 89 00:04:35.760 --> 00:04:39.400 not only for today, for tomorrow, but also into the future. 90 00:04:41.760 --> 00:04:43.640 In addition to that, when you 91 00:04:43.640 --> 00:04:48.840 contemplate the levers for green trade, they fall into three buckets of action. 92 00:04:48.840 --> 00:04:52.480 The first is around the physical changes that we can make. 93 00:04:52.840 --> 00:04:55.680 And we at DHL are leading in these areas to address 94 00:04:55.680 --> 00:04:58.680 our mobile and fixed source emissions. 95 00:04:59.120 --> 00:05:03.680 We have laid out a timeline for tangible actions by 2030 in line 96 00:05:03.680 --> 00:05:07.720 with science based targets initiatives, and we have committed to invest 97 00:05:07.960 --> 00:05:13.120 roughly $8 billion in this space up to 2030. 98 00:05:13.720 --> 00:05:16.200 Of course, with aviation accounting for 99 00:05:16.200 --> 00:05:20.000 the greatest percentage of emissions, for us, we're focused on purchasing 100 00:05:20.000 --> 00:05:24.600 more energy efficient aircraft, including 28 Boeing 777 aircraft, 101 00:05:25.200 --> 00:05:27.480 as well as buying sustainable aviation fuel. 102 00:05:27.480 --> 00:05:31.560 We made a commitment to buy over 800 million liters 103 00:05:31.560 --> 00:05:33.320 of sustainable aviation fuel. 104 00:05:33.320 --> 00:05:36.720 But 818 months ago, that was the largest purchase of any company. 105 00:05:36.920 --> 00:05:40.040 It's been surpassed as of late, which is a good thing. 106 00:05:40.040 --> 00:05:41.760 We're not in a competition of that. 107 00:05:41.760 --> 00:05:44.320 But again, being someone who surpasses a good thing 108 00:05:44.320 --> 00:05:47.920 and we have a commitment to use 30% of sustainable aviation fuel 109 00:05:47.960 --> 00:05:50.960 blend across our network by 2030. 110 00:05:51.280 --> 00:05:54.320 On the ground, we're committed to greening our last mile line 111 00:05:54.320 --> 00:05:57.600 whole operation with a mix of electric vehicle, e-cargo bikes, 112 00:05:57.880 --> 00:06:01.080 charging stations, micro hubs and walking route. 113 00:06:01.080 --> 00:06:05.920 And we paired when paired with our carbon neutral design for all new buildings. 114 00:06:05.920 --> 00:06:09.120 These investments will pay dividends over the long term. 115 00:06:09.520 --> 00:06:12.840 I was just mentioning to a former colleague that worked with us recently, 116 00:06:13.080 --> 00:06:17.520 we opened up a brand new hub in Atlanta, which is the first ever carbon 117 00:06:17.520 --> 00:06:21.800 neutral hub in our industry and in our business as well. 118 00:06:22.040 --> 00:06:25.440 And then finally, we're continuously expanding our product portfolio 119 00:06:25.640 --> 00:06:28.760 with green alternatives for our core products 120 00:06:28.760 --> 00:06:32.640 solutions, including Go Green Plus solution offer to promote 121 00:06:32.800 --> 00:06:36.360 in setting investments to a greener supply chain. 122 00:06:37.840 --> 00:06:40.080 The next topic is around data, 123 00:06:40.080 --> 00:06:43.200 which is our second bucket, which is key to the next level partnership 124 00:06:43.200 --> 00:06:46.200 between the express industry and CBP, 125 00:06:46.240 --> 00:06:49.240 an effective data management system facilitator, efficient 126 00:06:49.240 --> 00:06:52.920 and sustainable trade while maintaining compliance, which is important to us. 127 00:06:53.280 --> 00:06:57.200 As DHL Express operates in 220 countries and territories worldwide, 128 00:06:57.200 --> 00:07:00.840 acting in an ethically and legally 129 00:07:01.440 --> 00:07:04.680 irreproachable way in our dealing with business partners, shareholders 130 00:07:04.680 --> 00:07:08.080 and in the public is a key factor to our company's reputation 131 00:07:08.080 --> 00:07:11.280 and the basis for the use for the DHL group. 132 00:07:11.280 --> 00:07:12.720 Lasting Success. 133 00:07:12.720 --> 00:07:18.200 Data management not only improves risk assessment to target high risk shipments, 134 00:07:18.200 --> 00:07:23.600 but also it helps reduce emissions by unnecessary steps on legitimate trade. 135 00:07:23.840 --> 00:07:27.520 This does not take away any of the security controls. 136 00:07:27.960 --> 00:07:31.520 Again, all shipments still subject to physical screening for explosive 137 00:07:32.040 --> 00:07:36.600 data analysis, screening for drugs, IPR forced labor 138 00:07:36.840 --> 00:07:39.840 and available for government inspection and seizure, 139 00:07:40.360 --> 00:07:45.120 but data driven facilitations like de minimis informal entry 140 00:07:45.320 --> 00:07:49.720 and trade partnership programs reduce the size of the haystack. 141 00:07:49.720 --> 00:07:52.360 You yourself have been clear, John. 142 00:07:52.360 --> 00:07:55.880 You yourself have been clear that it is inaccurate to call de minimis a loophole. 143 00:07:56.400 --> 00:07:59.560 Facilitations like de minimis are a legitimate process Under U.S. 144 00:07:59.560 --> 00:08:02.640 law to facilitate the entry of low value goods, lower 145 00:08:02.640 --> 00:08:06.920 risk goods, and ultimately easing the burden for CBP and trade. 146 00:08:09.200 --> 00:08:11.280 The final area of operational adjustments. 147 00:08:11.280 --> 00:08:15.800 DHL has been a key partner with CBP across every trusted Trade 148 00:08:15.800 --> 00:08:19.320 and Security Partnership program we see ongoing value both in targeting 149 00:08:19.320 --> 00:08:22.320 threats and maintaining the the free flow of legitimate goods. 150 00:08:22.600 --> 00:08:26.760 And I strongly encourage CBP to look at attracting new members to these programs, 151 00:08:27.120 --> 00:08:30.240 like the individual warehouse operations from three providers 152 00:08:30.480 --> 00:08:35.080 through the development of commercially meaningful, meaningful benefits for trade, 153 00:08:35.720 --> 00:08:39.799 ports of entry, land borders, airport and marine terminals are often 154 00:08:39.799 --> 00:08:43.320 quite tightly packed with limited capacity to grow on site. 155 00:08:43.960 --> 00:08:47.840 If all shipments are treated as unknown and receive formal entry, 156 00:08:47.840 --> 00:08:51.720 there's not enough land or CBP officers to handle the volume. 157 00:08:52.040 --> 00:08:55.080 We need to segment the risk to manage the twin 158 00:08:55.080 --> 00:08:58.080 goals of trade enforcement and trade, facilitate. 159 00:08:58.320 --> 00:09:03.320 So looking at new rules at the border, like those to impose new data on green 160 00:09:03.320 --> 00:09:07.200 nature of product must be something that can be administered easily. 161 00:09:08.400 --> 00:09:10.240 Not only does the risk 162 00:09:10.240 --> 00:09:13.200 imposing a burden on just a provider and customs official, 163 00:09:13.200 --> 00:09:17.040 but this could also be a barrier for micro, small and medium sized companies 164 00:09:17.280 --> 00:09:21.720 that rely on compliance with the simple rules that have a clear impact. 165 00:09:22.080 --> 00:09:25.400 And we believe that the use of de minimis and simplified entry help 166 00:09:25.400 --> 00:09:29.680 maintain security controls while facilitating SMB inclusion. 167 00:09:30.760 --> 00:09:35.280 So in closing, finally, if we want to continue to work collaboratively, 168 00:09:35.920 --> 00:09:38.920 then there are some great steps the government can take in a partnership 169 00:09:39.200 --> 00:09:42.720 with the private sector to accurately to accelerate, I'm 170 00:09:42.720 --> 00:09:44.960 sorry, the changes toward green trade. 171 00:09:44.960 --> 00:09:46.320 Just touching on a few here. 172 00:09:46.320 --> 00:09:50.360 Number one, CBP shares the space with the private sector at port entries, 173 00:09:50.360 --> 00:09:55.080 therefore a commitment to collaborate with industry on EV charging and energy 174 00:09:55.080 --> 00:09:58.440 efficiency in the facilities can move technology forward for all. 175 00:09:58.960 --> 00:10:02.760 Number two, and reiterating the need to manage risk, 176 00:10:02.840 --> 00:10:05.080 CBP should be clear with Congress 177 00:10:05.080 --> 00:10:08.720 about the need to maintain existing trade facilitations in place today 178 00:10:09.000 --> 00:10:13.080 to efficiently manage cargo volumes and avoid greater cost and emissions 179 00:10:13.800 --> 00:10:14.560 equally assessed. 180 00:10:14.560 --> 00:10:17.880 Whereas industry has a lot of data we are required to provide. 181 00:10:17.880 --> 00:10:22.320 CBP Should we work on improved data sharing from government agencies 182 00:10:22.320 --> 00:10:24.120 to reduce the number of bad shipments. 183 00:10:25.280 --> 00:10:25.760 The other one 184 00:10:25.760 --> 00:10:28.840 is operationally, if CBP and other agencies work together 185 00:10:28.840 --> 00:10:33.600 to eliminate conditional releases and facilitate inspections at close ports, 186 00:10:33.600 --> 00:10:37.520 this would help avoid emissions associated with the re 187 00:10:37.560 --> 00:10:41.880 transporting of goods domestically just for inspection at different location. 188 00:10:42.240 --> 00:10:46.680 And then finally, flexible rooting was an absolute necessity 189 00:10:46.680 --> 00:10:47.600 during the pandemic, 190 00:10:47.600 --> 00:10:51.480 and updating the manifest capabilities to allow for multimodal filings 191 00:10:51.720 --> 00:10:55.440 would not only facilitate the flexibility in routing shipments, but it would 192 00:10:55.440 --> 00:11:01.440 simultaneously reduce dwell times and related emissions ports themselves. 193 00:11:01.800 --> 00:11:04.520 So all of this is just scratching the surface, but 194 00:11:04.520 --> 00:11:07.520 we are supremely confident that bilateral communication 195 00:11:07.920 --> 00:11:11.400 and collaborative between CBP and the industry can help us to meet 196 00:11:11.640 --> 00:11:14.760 the twin goals of trade enforcement and trade facilitation. 197 00:11:15.440 --> 00:11:17.280 Thank you. 198 00:11:17.280 --> 00:11:18.240 Great. Thanks, Mike. 199 00:11:18.240 --> 00:11:21.200 And before I ask you a follow on, I just wanted to it 200 00:11:21.200 --> 00:11:25.080 just struck me as I was here and AnnMarie and I were adamant about having this. 201 00:11:25.080 --> 00:11:28.800 I think the four of you guys, you really represent the old system 202 00:11:28.800 --> 00:11:31.840 of what this essence of this this conference is about. 203 00:11:31.840 --> 00:11:35.200 So, you know, REI and Under Armour making goods, 204 00:11:36.320 --> 00:11:38.160 DHL moving goods. Yes. 205 00:11:38.160 --> 00:11:40.960 And Expediter is coordinating a movement and clearing goods. 206 00:11:40.960 --> 00:11:42.800 So it's I think collectively 207 00:11:42.800 --> 00:11:46.320 we got a lot to a lot of good stuff to chat about this morning in this space. 208 00:11:47.040 --> 00:11:47.400 So, Mike, 209 00:11:47.400 --> 00:11:50.800 you touched on some recommendations for changes that government can help with 210 00:11:51.000 --> 00:11:53.480 and like to kind of drill down on that a bit 211 00:11:53.480 --> 00:11:57.920 other than obvious federal investment in incentives in sustaining sustainable 212 00:11:57.920 --> 00:12:01.280 aviation fuel, which you mentioned, 800 million liters, that's impressive. 213 00:12:01.880 --> 00:12:05.600 Um, EV charging green buildings, where do you reckon 214 00:12:05.600 --> 00:12:08.600 CBP itself can support more green trade? 215 00:12:09.840 --> 00:12:12.040 Well, 216 00:12:12.040 --> 00:12:13.480 I would say, 217 00:12:13.480 --> 00:12:16.680 you know, first of all, I mean, we're focused on electrification 218 00:12:17.880 --> 00:12:22.160 and it's not just the final mile electrification, but we're also partnering 219 00:12:22.440 --> 00:12:25.560 with a company in western Washington, Eviation, on 220 00:12:25.800 --> 00:12:30.280 what would be the first electric fixed wing aircraft that we're looking at 221 00:12:31.600 --> 00:12:34.600 in 2026 or 2027. 222 00:12:35.720 --> 00:12:38.720 So that's really on the horizon. 223 00:12:38.960 --> 00:12:43.360 I would say there's also the opportune city to assess 224 00:12:44.040 --> 00:12:47.400 and install components in green buildings as well. 225 00:12:47.400 --> 00:12:51.400 So I guess there's components there of helping us through that process. 226 00:12:51.960 --> 00:12:55.400 From that perspective, really, government 227 00:12:55.400 --> 00:12:58.680 incentives around SAF production, I don't know. 228 00:12:58.680 --> 00:13:00.880 Again, if you said CBP could step in and help us, 229 00:13:00.880 --> 00:13:04.480 but in lightning and bring it to the forefront would help 230 00:13:04.720 --> 00:13:08.480 alleviate the imbalance and also the price. 231 00:13:08.480 --> 00:13:10.560 It's expensive at the moment. 232 00:13:10.560 --> 00:13:14.400 It's about 4 to 5 times as much as normal aviation fuel. 233 00:13:14.880 --> 00:13:17.360 So that would be from that perspective. 234 00:13:17.360 --> 00:13:19.920 So I would say those would be a couple just to mention. 235 00:13:19.920 --> 00:13:20.400 Okay, great. 236 00:13:20.400 --> 00:13:24.200 And a super quick question, because I am not steeped in this is SAF, 237 00:13:24.200 --> 00:13:25.880 can it be used in any aircraft 238 00:13:25.880 --> 00:13:29.120 or really special aircraft can use to blend right now at the moment? 239 00:13:29.880 --> 00:13:31.720 And you've got to be set up to use it. Got it. 240 00:13:32.880 --> 00:13:33.360 Okay, great. 241 00:13:33.360 --> 00:13:34.800 Thanks, Mike. 242 00:13:34.800 --> 00:13:37.800 Let's pass it over to Matthew, REI Co-op. 243 00:13:45.280 --> 00:13:45.600 Thank you. 244 00:13:45.600 --> 00:13:46.520 And it's a pleasure to be here. 245 00:13:46.520 --> 00:13:47.760 As Declan 246 00:13:47.760 --> 00:13:51.680 had mentioned, I have the privilege of leading sustainability for REI Co-op. 247 00:13:51.840 --> 00:13:56.040 If you are not familiar with REI we are an outdoor retail cooperative 248 00:13:56.040 --> 00:13:59.600 headquartered near Seattle and we have about 180 stores across the US. 249 00:14:00.480 --> 00:14:03.000 Hopefully there's some REI members in the room today. 250 00:14:03.000 --> 00:14:04.080 We can see a few nods. 251 00:14:04.080 --> 00:14:05.760 Thank you. Wonderful. 252 00:14:05.760 --> 00:14:08.240 So we got a lot, a lot of friendly faces here. 253 00:14:08.240 --> 00:14:11.920 I'm ultimately accountable to you as members who own the co op 254 00:14:11.920 --> 00:14:16.080 for guiding our sustainability journey at REI. 255 00:14:16.160 --> 00:14:21.280 At REI, our mission is to connect every person to the power of the outdoors 256 00:14:21.280 --> 00:14:24.280 and to engage them in the fight to protect it. 257 00:14:24.840 --> 00:14:27.480 You don't hear too many corporate mission statements 258 00:14:27.480 --> 00:14:30.480 that have the word fight in them, but for us it's very intentional 259 00:14:30.480 --> 00:14:34.440 and it's because we are seeing and we are feeling the impacts 260 00:14:34.440 --> 00:14:37.840 of the climate crisis and the other environmental trends. 261 00:14:38.200 --> 00:14:41.440 And we're seeing them in our business, in our global supply chains. 262 00:14:41.880 --> 00:14:44.400 We're seeing them in the communities where we operate 263 00:14:44.400 --> 00:14:46.920 and we're seeing them in the outdoor places where Americans 264 00:14:46.920 --> 00:14:50.840 recreate and enjoy the products and the experiences that we bring to them. 265 00:14:51.480 --> 00:14:54.680 So for us, this is really existential to the co-op. 266 00:14:54.680 --> 00:14:56.920 And we view the climate crisis 267 00:14:56.920 --> 00:15:00.440 in particular not as a political football, but as a human issue, 268 00:15:00.760 --> 00:15:04.440 and one that we are going to leverage our business and our community to act 269 00:15:04.440 --> 00:15:05.480 on however we can. 270 00:15:06.520 --> 00:15:08.400 So it's in that spirit that I get to join you today 271 00:15:08.400 --> 00:15:11.400 and talk about some of the opportunities here. 272 00:15:13.040 --> 00:15:13.840 REI has made some 273 00:15:13.840 --> 00:15:17.000 substantial investments in greening our global logistics. 274 00:15:17.280 --> 00:15:21.440 We've set ambitious goals, so above all, this is a science based target 275 00:15:21.440 --> 00:15:25.720 to reduce our emissions by more than 55% by the end of the decade, and we committed 276 00:15:25.720 --> 00:15:29.480 to zero carbon freight by 2040 for all of our global logistics. 277 00:15:29.480 --> 00:15:33.760 As part of that, we also joined the Aspen Institute's COZEV Initiative. 278 00:15:33.760 --> 00:15:39.240 That's cargo owners for zero emissions vessels in order to promote an industry 279 00:15:39.440 --> 00:15:42.520 that is able to move goods across the world using things 280 00:15:42.520 --> 00:15:45.520 like zero emissions trade lanes. 281 00:15:45.600 --> 00:15:47.240 We're focused on decarbonizing our logistics. 282 00:15:47.240 --> 00:15:48.840 So you heard Mike talk about DHL at work. 283 00:15:48.840 --> 00:15:52.880 We partnered with them to purchase more sustainable biofuels for our deep sea 284 00:15:52.880 --> 00:15:53.760 ocean freight, 285 00:15:53.760 --> 00:15:55.400 and that is helping to actually reduce 286 00:15:55.400 --> 00:15:58.400 our emissions of moving products across the world. 287 00:15:58.400 --> 00:16:01.320 And we're trying to take responsibility for our own impacts in our own operations 288 00:16:01.320 --> 00:16:04.800 with scope one and scope two emissions, as you heard him talk about earlier today. 289 00:16:05.280 --> 00:16:07.040 So we've been 100% renewable energy 290 00:16:07.040 --> 00:16:10.200 in all of our owned operations for a decade now, and we built 291 00:16:10.200 --> 00:16:14.120 the industry's first LEED platinum Net zero energy distribution center. 292 00:16:14.120 --> 00:16:17.120 And all of our distribution centers are certified as zero waste facilities. 293 00:16:17.880 --> 00:16:20.600 So we've done, I think, some fantastic work in this space. 294 00:16:20.600 --> 00:16:22.520 But the main message that I want to leave you with today 295 00:16:22.520 --> 00:16:26.280 is that we have to push much deeper into our global supply chain 296 00:16:26.280 --> 00:16:30.440 if we are going to create impact at the scale that it needs to happen 297 00:16:30.720 --> 00:16:34.000 in order to meaningfully decarbonize my industry. 298 00:16:34.960 --> 00:16:36.080 So let me talk a bit about that. 299 00:16:40.600 --> 00:16:41.840 So for REI, 300 00:16:41.840 --> 00:16:45.720 almost two thirds of our total impact on the climate, which is a good proxy 301 00:16:45.720 --> 00:16:50.240 for general environmental impacts, occurs in our product manufacturing. 302 00:16:50.600 --> 00:16:54.280 So this is the embodied emissions that Tim figures mentioned. 303 00:16:55.000 --> 00:16:57.360 It is actually the creation of the raw materials 304 00:16:57.360 --> 00:17:00.960 that become the final product, and that's really typical in our sector. 305 00:17:01.360 --> 00:17:06.319 So for organizations like REI or for Under Armour, usually about ten X, 306 00:17:06.520 --> 00:17:11.200 our direct impact on the planet is residing in our value chain, 307 00:17:11.280 --> 00:17:14.359 and that is really where we have these huge opportunities. 308 00:17:16.680 --> 00:17:21.480 Hopefully some of you have been in our Uline Arena store here in Washington, DC. 309 00:17:21.480 --> 00:17:22.440 This might look familiar. 310 00:17:22.440 --> 00:17:26.760 So Ari, I in addition to selling and importing our own 311 00:17:26.800 --> 00:17:29.880 private label products, we also sell about a thousand brands. 312 00:17:30.000 --> 00:17:33.000 Most of those are small to medium sized companies. 313 00:17:33.240 --> 00:17:36.000 Many of them are really just getting 314 00:17:36.000 --> 00:17:39.160 their first retail orders from a retailer of our size. 315 00:17:39.160 --> 00:17:43.840 And so we're helping to cultivate and grow those brands and really helping to 316 00:17:44.080 --> 00:17:47.560 wherever we can guide them through the process of operating 317 00:17:47.560 --> 00:17:49.680 as more sustainable and responsible companies. 318 00:17:52.560 --> 00:17:54.120 And when we talk about this issue, 319 00:17:54.120 --> 00:17:56.520 this is a bit of an eye chart and that's intentional. 320 00:17:56.520 --> 00:17:57.840 So don't try to read it, 321 00:17:57.840 --> 00:18:01.160 but you can kind of squint and get the idea when we talk about 322 00:18:01.640 --> 00:18:04.560 greening global logistics, I think oftentimes the conversation 323 00:18:04.560 --> 00:18:09.320 that we have starts ex-factory as products move through the value 324 00:18:09.320 --> 00:18:13.400 chain, through brands, and then ultimately to retailers like REI. 325 00:18:13.480 --> 00:18:14.440 But we all know that there's 326 00:18:14.440 --> 00:18:18.480 a much deeper supply chain behind than there are all of the different steps 327 00:18:18.480 --> 00:18:22.280 that it takes to process and transform raw materials into the final product. 328 00:18:22.920 --> 00:18:25.680 And accompanying that is an entire parallel supply 329 00:18:25.680 --> 00:18:28.960 chain of chemical inputs that allow all of that to happen, whether that's 330 00:18:28.960 --> 00:18:32.520 something like dyes and dye stuff, auxiliaries, paints, etc.. 331 00:18:33.000 --> 00:18:35.720 So this is the supply chain and this is what a supply chain 332 00:18:35.720 --> 00:18:38.720 might look like for even a very small brand that we retail. 333 00:18:39.360 --> 00:18:42.000 And so our real opportunity is to think about 334 00:18:42.000 --> 00:18:45.560 what are the impacts that we can have further up this supply chain 335 00:18:45.560 --> 00:18:48.720 where the two thirds of the total footprint actually resides. 336 00:18:49.440 --> 00:18:52.680 And how do we bring that to life in a way that allows particularly small to medium 337 00:18:52.680 --> 00:18:54.080 sized businesses to engage? 338 00:18:58.680 --> 00:19:01.680 Let me jump back one more for our wrap here. 339 00:19:02.320 --> 00:19:06.600 So in REI, we have implemented a set of product impact standards 340 00:19:06.880 --> 00:19:09.880 that we apply to the 1000 plus brands that we retail. 341 00:19:10.680 --> 00:19:13.360 Just like CBP, think very carefully about what products 342 00:19:13.360 --> 00:19:15.400 enters the shores of the US. 343 00:19:15.400 --> 00:19:16.440 We try to put a lot of thought 344 00:19:16.440 --> 00:19:19.800 into what brands and what products are entering the doors of our stores 345 00:19:20.240 --> 00:19:23.640 and our product impact standards within can serve in some respects 346 00:19:23.640 --> 00:19:28.680 as a model for some of the opportunities that reside on the CBP side of the House. 347 00:19:29.520 --> 00:19:33.880 For example, we prefer products that have lower impact materials, 348 00:19:33.880 --> 00:19:37.840 so recycled organic or other low carbon materials, We actually give those products 349 00:19:37.840 --> 00:19:44.040 and those brands additional buying support when we are merchandizing products. 350 00:19:44.440 --> 00:19:48.640 Similarly, we think there's a real opportunity to update our agents 351 00:19:49.080 --> 00:19:51.840 codes in order to allow for 352 00:19:51.840 --> 00:19:55.760 potential tariff benefits for products that likewise are doing the hard work 353 00:19:55.920 --> 00:19:58.800 up in the value chain to reduce environmental impacts. 354 00:19:59.840 --> 00:20:02.440 We've required all of our vendors to eliminate 355 00:20:02.440 --> 00:20:06.800 unnecessary chemicals from our products, and this is an area where the current 356 00:20:07.000 --> 00:20:11.480 tax codes are actually incentivizing the continued use of chemicals of concern. 357 00:20:11.480 --> 00:20:14.480 So particularly in water resistant fabrics, 358 00:20:14.760 --> 00:20:17.680 and this is specific to my industry, but if you're here today and you're 359 00:20:17.680 --> 00:20:20.680 wearing clothing, this is also relevant to you and your life. 360 00:20:20.880 --> 00:20:23.360 So making sure that we are not 361 00:20:23.360 --> 00:20:27.400 accidentally creating incentives to use potentially hazardous chemicals 362 00:20:27.600 --> 00:20:28.920 when those chemicals do not need 363 00:20:28.920 --> 00:20:32.280 to be used just to qualify for preferred trade benefits. 364 00:20:32.680 --> 00:20:34.560 And then finally, something that Mike mentioned. 365 00:20:34.560 --> 00:20:34.720 You know, 366 00:20:34.720 --> 00:20:38.880 we really focus on not destroying products that retain residual value. 367 00:20:38.880 --> 00:20:42.480 So even if a product has an air or some sort of issue that creates 368 00:20:42.760 --> 00:20:45.800 what we would call seconds, so products that we can't sell firsthand, 369 00:20:45.800 --> 00:20:49.080 we will always find an outlet for that product if it still has usable value. 370 00:20:49.680 --> 00:20:54.040 Similarly, there's a lot of opportunity that we see to move information further up 371 00:20:54.600 --> 00:20:58.800 the value chain and particularly put it in the hands of importers 372 00:20:59.040 --> 00:21:02.880 so that if products cannot be imported into the U.S., that's discovered 373 00:21:02.880 --> 00:21:06.200 before the products arrive at our shores and oftentimes are then destroyed 374 00:21:06.200 --> 00:21:10.200 as a result of not being eligible for importation to the U.S.. 375 00:21:10.560 --> 00:21:13.520 So those are a few areas where we think that there's opportunity 376 00:21:13.520 --> 00:21:16.800 to continue pushing on this and really just appreciate the opportunity 377 00:21:16.800 --> 00:21:19.800 to speak with you all today and continue to push on this 378 00:21:19.800 --> 00:21:20.720 critically important topic. 379 00:21:21.920 --> 00:21:22.320 Thank you. 380 00:21:22.320 --> 00:21:25.320 Okay. Thank you, Matt. Appreciate that. 381 00:21:25.440 --> 00:21:29.760 So incentivizing more sustainable materials and manufacturing requires 382 00:21:29.760 --> 00:21:33.120 that importers know their supply chain well beyond the final manufacturer. 383 00:21:33.120 --> 00:21:38.040 So you said you got thousands of small brands and manufacturers that you use. 384 00:21:38.520 --> 00:21:41.520 How are they able to engage at that depth of knowledge? 385 00:21:41.960 --> 00:21:42.680 Yeah, it's a great question. 386 00:21:42.680 --> 00:21:44.920 And fundamentally, this is going to be critical. 387 00:21:44.920 --> 00:21:48.240 If CBP is in a position to incentivize 388 00:21:48.440 --> 00:21:51.440 more sustainable products, 389 00:21:51.480 --> 00:21:54.720 importers have to go to demonstrate the provenance of their materials. 390 00:21:54.720 --> 00:21:57.880 So if you are actually claiming that there is recycled organic or other 391 00:21:57.880 --> 00:22:00.920 low carbon manufacturing methods, you have to know your supply chain 392 00:22:00.920 --> 00:22:04.600 well enough to prove that out in order to qualify for that. 393 00:22:05.120 --> 00:22:08.760 And this is where our industry at least has really evolved over the last decade 394 00:22:08.760 --> 00:22:09.600 or so. 395 00:22:09.600 --> 00:22:13.680 Traceability is now widely available even to small and medium sized companies, 396 00:22:13.680 --> 00:22:16.440 so that you're going to hear later today from Textile Exchange, 397 00:22:16.440 --> 00:22:20.400 which is a nonprofit and in our sector that provides traceability certifications 398 00:22:20.960 --> 00:22:25.000 for a number of more sustainable third party labels. 399 00:22:25.560 --> 00:22:29.080 Similarly, we're seeing technology vendors really ramp up their support. 400 00:22:29.080 --> 00:22:33.040 So it is now possible, even for a relatively small organization, 401 00:22:33.240 --> 00:22:36.600 to Understand that, that it's part of a value chain 402 00:22:36.840 --> 00:22:39.520 and be able to demonstrate how choices that they've made 403 00:22:39.520 --> 00:22:43.280 in designing and sourcing materials for their products are actually conveying 404 00:22:43.280 --> 00:22:46.560 through into the final product and provide CBP with evidence of that. 405 00:22:48.680 --> 00:22:49.160 Okay, great. 406 00:22:49.160 --> 00:22:52.120 Thank you. All right. Let's turn to Dana, please. 407 00:22:52.120 --> 00:22:55.120 I have the clicker so 408 00:22:56.320 --> 00:22:58.200 let's get this done. 409 00:22:58.200 --> 00:23:01.200 Nice job 410 00:23:01.760 --> 00:23:02.520 jumping ahead. 411 00:23:02.520 --> 00:23:03.120 All right. 412 00:23:03.120 --> 00:23:05.680 First of all, thank you for having me. I appreciate it. 413 00:23:05.680 --> 00:23:08.840 It is a pleasure to be joined by such knowledgeable experts. 414 00:23:08.840 --> 00:23:12.440 And you will find that my presentation is really from the perspective 415 00:23:12.440 --> 00:23:15.440 of the customs broker, not a sustainability expert. 416 00:23:16.400 --> 00:23:18.480 So at the outset, 417 00:23:18.480 --> 00:23:21.720 I have to point out that I don't have any paper materials with me. 418 00:23:22.640 --> 00:23:23.880 I just want to point that out. 419 00:23:23.880 --> 00:23:25.720 Impressive. Impressive. 420 00:23:25.720 --> 00:23:26.160 Thank you. 421 00:23:26.160 --> 00:23:31.960 But I have to wear my reading glasses so that the complex challenge of climate 422 00:23:31.960 --> 00:23:37.000 change requires change in many directions and actions in several different areas 423 00:23:37.400 --> 00:23:42.080 and the movement of goods with the current technology involves greenhouse 424 00:23:42.080 --> 00:23:45.760 gas emissions, such as governments, manufacturers and consumers. 425 00:23:46.040 --> 00:23:50.920 And they must align to tackle this world's quite large challenge. 426 00:23:51.280 --> 00:23:55.160 Hopefully the transition to cleaner solutions in the trade community can play 427 00:23:55.160 --> 00:23:59.360 a much bigger role in reducing border related environmental impacts. 428 00:24:00.280 --> 00:24:04.000 I've already made it clear that my representation today is from 429 00:24:04.000 --> 00:24:08.640 the perspective of a customs broker, but for your awareness. 430 00:24:08.640 --> 00:24:12.080 Expeditors is a global logistics company 431 00:24:12.400 --> 00:24:16.080 and more broadly as a component of sustainability. 432 00:24:16.080 --> 00:24:19.600 It is a core enabler of our company's strategy. 433 00:24:19.840 --> 00:24:22.680 The details in our efforts in these areas are available 434 00:24:22.680 --> 00:24:26.800 on our Public Sustainability report, so I won't go into too much detail on that. 435 00:24:27.200 --> 00:24:30.400 But from a transportation perspective, we're a non asset 436 00:24:30.400 --> 00:24:35.600 based ocean transportation intermediary or invoke, and as such 437 00:24:35.600 --> 00:24:39.240 that means we operate at the orchestration level of the supply chain. 438 00:24:39.680 --> 00:24:43.120 In this capacity we're able to provide critical carbon emissions 439 00:24:43.120 --> 00:24:47.160 data to our customers, and that data allows our customers 440 00:24:47.160 --> 00:24:51.240 to better Understand the environmental impact of the value 441 00:24:51.240 --> 00:24:55.560 chain and analyze the supply chain impacts on a mood and lane basis. 442 00:24:56.520 --> 00:24:59.920 Separate tools have been developed to show the effects of mode shifting 443 00:25:00.640 --> 00:25:04.160 through the purchase of sustainable aviation 444 00:25:04.160 --> 00:25:07.160 fuel and sustainable marine fuel. 445 00:25:07.280 --> 00:25:10.680 So I will briefly give you an overview of Expeditors 446 00:25:10.680 --> 00:25:13.200 to explain what our perspective is coming from, 447 00:25:13.200 --> 00:25:15.360 and then I'll jump into my comments on green trade. 448 00:25:15.360 --> 00:25:19.160 From my perspective, Expeditors in its capacity 449 00:25:19.240 --> 00:25:22.240 as a global logistics provider and a customs broker. 450 00:25:22.320 --> 00:25:25.960 We were founded in 1979 and we're headquartered also in Seattle. 451 00:25:26.160 --> 00:25:27.360 So we're neighbors. 452 00:25:27.360 --> 00:25:31.800 Actually, some of our corporate officers move to Bellevue as well. 453 00:25:31.800 --> 00:25:34.800 So we're in more than one location in Seattle. 454 00:25:35.040 --> 00:25:38.280 We have been in operation since 79. 455 00:25:38.280 --> 00:25:41.800 As I mentioned, we have over 350 locations globally. 456 00:25:42.040 --> 00:25:45.840 We're a publicly traded company on Nasdaq, and we currently sit 457 00:25:45.840 --> 00:25:48.840 at 1045 on the Fortune 500 list. 458 00:25:49.520 --> 00:25:51.600 So I'm just going to give you a quick overview 459 00:25:51.600 --> 00:25:54.600 of the Customs piece as well, because I think it's relevant. 460 00:25:55.040 --> 00:25:57.120 We're a traditional large 461 00:25:58.080 --> 00:25:58.440 sort of 462 00:25:58.440 --> 00:26:01.440 business to business broker in that business sector. 463 00:26:01.680 --> 00:26:04.680 We actually have over a thousand licensed 464 00:26:04.680 --> 00:26:07.800 brokers supporting 60 countries in which we do business. 465 00:26:08.160 --> 00:26:12.720 We have a CEO or authorized economic operator status pad 466 00:26:13.120 --> 00:26:16.680 being one of those programs in 27 countries 467 00:26:17.000 --> 00:26:20.000 and we actually are 468 00:26:21.120 --> 00:26:25.480 really very fundamentally invested in the customs product globally. 469 00:26:26.000 --> 00:26:31.000 So as a matter of fact, on that front, we wanted to cover three 470 00:26:31.000 --> 00:26:37.760 different challenges and really from a digitization supply chain digitizing. 471 00:26:38.000 --> 00:26:41.320 And that is the first area that I want to talk about. 472 00:26:41.320 --> 00:26:44.600 In the second area, I'm going to talk about where partner 473 00:26:44.600 --> 00:26:47.600 government agencies and border processes connect 474 00:26:47.760 --> 00:26:52.240 and then ultimately how that leads or can lead to resilience. 475 00:26:52.520 --> 00:26:55.280 I'm going to provide the challenges, the recommendations 476 00:26:55.280 --> 00:26:58.280 and sort of what the perceived benefits will be in these areas. 477 00:26:58.560 --> 00:27:01.720 I again, first I'll start with digitization, 478 00:27:02.040 --> 00:27:03.720 so you can see my version of supply 479 00:27:03.720 --> 00:27:06.800 chain is not quite as fancy as the area version, 480 00:27:07.520 --> 00:27:10.520 but for the purposes of green, you'll notice 481 00:27:10.800 --> 00:27:13.720 that in a modern world, 482 00:27:13.720 --> 00:27:18.000 really it's amazing how many documents support a supply chain. 483 00:27:18.000 --> 00:27:21.440 At this point, almost every single process 484 00:27:21.720 --> 00:27:25.040 has paper or data behind it become PDFs. 485 00:27:25.400 --> 00:27:31.240 And just for the record, electronic data creates some energy usage as well. 486 00:27:31.240 --> 00:27:35.920 And I want to be clear that more data in my version of the world of data 487 00:27:35.920 --> 00:27:39.040 is not better data where I'm going to focus 488 00:27:39.040 --> 00:27:43.800 the really the comments are on how to align the document 489 00:27:43.840 --> 00:27:47.680 submission the data needs at the points where it intersects 490 00:27:47.880 --> 00:27:51.640 and be able to pull from accurate sources of this technology. 491 00:27:51.960 --> 00:27:56.640 So the recommendation is digitizing all the data requirements 492 00:27:56.720 --> 00:28:00.960 to minimize redundancy and to get the data right at the first point 493 00:28:00.960 --> 00:28:02.760 and pull it through. 494 00:28:02.760 --> 00:28:05.760 The benefit is really a smooth flow of cargo 495 00:28:06.000 --> 00:28:09.640 and technology and innovation to power and facilitate customs. 496 00:28:09.640 --> 00:28:12.880 The process must be Understood and the technology, 497 00:28:12.880 --> 00:28:16.320 although available, is not necessarily married up with expertise, 498 00:28:16.720 --> 00:28:21.640 the barriers or the disparate processes and the disjointed data requirements. 499 00:28:22.000 --> 00:28:24.920 And that linear supply chain is what 500 00:28:24.920 --> 00:28:28.280 people Understand when they're thinking about supply chain data needs. 501 00:28:28.520 --> 00:28:31.520 But in reality it looks something more like this. 502 00:28:31.720 --> 00:28:35.760 So from a customs data standpoint, complete extensive matrix 503 00:28:35.760 --> 00:28:39.560 of where it's required, when it's required and how it's required, regardless of 504 00:28:39.560 --> 00:28:43.520 whether the package is a courier package or a massive container shipment. 505 00:28:44.280 --> 00:28:48.600 As an example, we have 450 unique document labels within our system, 506 00:28:48.600 --> 00:28:51.200 and these are not documents we generate necessarily 507 00:28:51.200 --> 00:28:54.320 other than to produce for the next responsible party. 508 00:28:54.720 --> 00:28:58.960 But you can Understand that that is thousands of data points. 509 00:28:59.400 --> 00:29:01.840 The challenge is it crosses the borders. 510 00:29:01.840 --> 00:29:05.680 Then in terms of the government interaction is that those interactions 511 00:29:05.680 --> 00:29:09.640 sometimes don't align and that creates dwell time, it 512 00:29:09.640 --> 00:29:13.440 creates storage, it creates idling, which creates gas emissions. 513 00:29:13.800 --> 00:29:17.560 And the recommendation there is to align those processes. 514 00:29:17.960 --> 00:29:20.160 And then lastly, I'll jump into resiliency, 515 00:29:20.160 --> 00:29:24.720 because this last world in the last several years has been anything but easy 516 00:29:25.000 --> 00:29:28.000 and you have pandemics, you have 517 00:29:28.040 --> 00:29:31.040 natural disasters, unfortunately, you have cyber attacks. 518 00:29:31.280 --> 00:29:35.040 You have a lot of different reasons for supply chain disruption. 519 00:29:35.360 --> 00:29:38.920 And our recommendation is that the trade, 520 00:29:39.120 --> 00:29:43.920 the government, all the stakeholders in the supply chain really align 521 00:29:44.240 --> 00:29:48.440 and balance is absolutely fundamentally the most important thing. 522 00:29:48.440 --> 00:29:52.800 So there is cost considerations, there are risks, there's sustainability, 523 00:29:52.800 --> 00:29:54.200 there's communication, 524 00:29:54.200 --> 00:29:57.200 and really the challenge is to work together in the supply chain. 525 00:29:57.400 --> 00:29:58.440 So thank you very much. 526 00:29:59.960 --> 00:30:00.240 Great. 527 00:30:00.240 --> 00:30:01.280 Thanks, Dana. 528 00:30:01.280 --> 00:30:05.840 So you're one of the world's largest customers brokers, and obviously you have 529 00:30:05.840 --> 00:30:09.000 a lot of insight into the complexity of modern supply chains. 530 00:30:09.360 --> 00:30:13.320 So in your view, Dana, what are the greatest sustainability challenges 531 00:30:13.320 --> 00:30:17.320 associated with supply chain operations that could be addressed by U.S. 532 00:30:17.320 --> 00:30:20.320 government agencies, including CBP? 533 00:30:20.840 --> 00:30:23.280 Thank you very much for that question. 534 00:30:23.280 --> 00:30:27.560 I believe that the way that we can work together is really much as you've done 535 00:30:27.560 --> 00:30:32.080 in the past with other programs like CTPAT or 536 00:30:32.720 --> 00:30:36.320 any of the programs that you're rolling out with the ACE rollout. 537 00:30:36.320 --> 00:30:39.000 You have worked with trade quite well. 538 00:30:39.000 --> 00:30:43.320 I think the recommendation, though, is more like along the lines of the BIC, 539 00:30:43.920 --> 00:30:48.600 but where there is a fundamental coordinated effort at government agencies 540 00:30:48.600 --> 00:30:52.920 that are not typically part of the customs processes, again, to align 541 00:30:52.920 --> 00:30:58.320 those processes, the data and the work together and multi government approach. 542 00:30:58.560 --> 00:31:02.320 So work that's being done at the WCO maybe taking more 543 00:31:02.320 --> 00:31:05.160 and more of a leadership role in that as well would be my recommendation. 544 00:31:06.760 --> 00:31:07.160 Great. 545 00:31:07.160 --> 00:31:08.280 Thank you for that. 546 00:31:08.280 --> 00:31:11.640 Okay, so let's close out our presentations with Mr. 547 00:31:11.640 --> 00:31:14.520 Michael Levine to tell us about Under Armour. 548 00:31:14.520 --> 00:31:15.960 Thanks. 549 00:31:15.960 --> 00:31:18.080 So I feel a little ashamed that I use paper, 550 00:31:18.080 --> 00:31:21.720 but I do have a water bottle and I'm not going to use slides. 551 00:31:21.720 --> 00:31:23.880 So they're always trade offs in every interaction. 552 00:31:23.880 --> 00:31:26.480 So positives and negatives. 553 00:31:26.480 --> 00:31:29.760 I do want to start by thanking the CBP team. 554 00:31:29.760 --> 00:31:32.960 Doc Leonard, acting branch chief Claire Every page. 555 00:31:33.120 --> 00:31:36.680 Lee-Ann Bigelow, director for Green Trade and the entire CBP 556 00:31:37.680 --> 00:31:38.040 team. 557 00:31:38.040 --> 00:31:40.840 It takes a team really to make an event like this happen. 558 00:31:40.840 --> 00:31:42.040 We're honored to be a part of it. 559 00:31:42.040 --> 00:31:44.120 I also want to thank the Under Armour team 560 00:31:44.120 --> 00:31:46.680 that I represent here today, including John Scheff, 561 00:31:46.680 --> 00:31:49.320 who's our global head of government relations here in the audience, 562 00:31:49.320 --> 00:31:52.560 as well as Alice Hartley, our director of Circularity, 563 00:31:52.840 --> 00:31:55.960 and Anna Harry, who's our lead for sustainability communications. 564 00:31:56.440 --> 00:31:57.720 I had a dress up like this. 565 00:31:57.720 --> 00:31:59.320 I would normally be sporting my Under Armour. 566 00:31:59.320 --> 00:32:00.600 I do have Under Armour footwear. 567 00:32:00.600 --> 00:32:04.400 So you can look for that during my tunnel walk at the end of my presentation. 568 00:32:04.920 --> 00:32:09.120 So turning to Under Armour quickly and I apologize for the breakneck speed, 569 00:32:09.120 --> 00:32:12.120 but I want to do justice to the material that I have here today. 570 00:32:12.520 --> 00:32:14.560 For Under Armour, we are a purpose led company. 571 00:32:14.560 --> 00:32:16.840 We empower those who strive for more. 572 00:32:16.840 --> 00:32:19.840 Our mission Under Armour seeks to make athletes better 573 00:32:20.200 --> 00:32:23.520 and we are grounded in our values, which include sustainably 574 00:32:23.520 --> 00:32:27.520 and stand for equality, which includes the notion of intergenerational access 575 00:32:27.520 --> 00:32:31.080 to the same resources that each of us and our ancestors have enjoyed. 576 00:32:32.040 --> 00:32:35.560 We we were founded, and you might call 577 00:32:35.560 --> 00:32:39.680 an early concept protect this house for us as we do our work in sustainability. 578 00:32:39.680 --> 00:32:42.480 We believe if we protect the people who make our products, 579 00:32:42.480 --> 00:32:45.960 components and materials, our customers, we protect our brand, 580 00:32:45.960 --> 00:32:48.000 we protect our company, our house. 581 00:32:48.000 --> 00:32:52.000 But we also use that in another sense of our our house, all of our house, 582 00:32:52.280 --> 00:32:55.600 which is the planet, our global home, the one and only home feel that 583 00:32:56.400 --> 00:32:57.040 current and future 584 00:32:57.040 --> 00:33:00.160 generations play on and to serve a right to play on in the future. 585 00:33:01.480 --> 00:33:04.480 Building on what Matt said from a GHG accounting 586 00:33:04.520 --> 00:33:06.400 and overall environmental impact perspective 587 00:33:06.400 --> 00:33:08.880 for Under Armour, the majority of our impacts lie in scope. 588 00:33:08.880 --> 00:33:10.560 Three In our supply chain. 589 00:33:10.560 --> 00:33:13.800 So we focus a lot in our work on how we can drive positive action 590 00:33:13.800 --> 00:33:17.840 with our suppliers, with garment factories directly who assemble our products 591 00:33:18.120 --> 00:33:21.840 and more indirectly with fabric mills and material suppliers. 592 00:33:22.440 --> 00:33:23.960 In this, it is a team sport. 593 00:33:23.960 --> 00:33:27.320 The challenges and opportunities we face are greater than any company, 594 00:33:27.520 --> 00:33:30.520 any sector, even across sectors. 595 00:33:30.600 --> 00:33:33.800 So we seek opportunities that Under Armour to play an active role in industry. 596 00:33:33.800 --> 00:33:35.520 Collaborations. 597 00:33:35.520 --> 00:33:40.320 As Matt noted or alluded to, you know, suppliers serve multiple brands, 598 00:33:40.320 --> 00:33:44.000 so it's more effective as we work with our partners if we 599 00:33:45.040 --> 00:33:47.600 align around measurement standards and expectations, 600 00:33:47.600 --> 00:33:51.600 like the measurement tools for facilities, environmental impact for brand 601 00:33:51.600 --> 00:33:54.600 and retailer performance for design, 602 00:33:54.640 --> 00:33:57.640 we see sustainability as a team sport and green trade 603 00:33:57.680 --> 00:34:01.000 that we're here to speak about today can be an opportunity to set 604 00:34:01.000 --> 00:34:04.000 not just a level but an enduring playing field. 605 00:34:04.440 --> 00:34:06.000 We're here at a site of innovation. 606 00:34:06.000 --> 00:34:08.320 Innovation is core to our DNA and Under Armour. 607 00:34:08.320 --> 00:34:12.440 We believe that when it comes to sustainability, when innovators share 608 00:34:12.440 --> 00:34:15.639 with the rest of the industry, sometimes it's called a good for the comments. 609 00:34:15.920 --> 00:34:17.280 Everybody wins. 610 00:34:17.280 --> 00:34:20.040 And I would just direct you to some work that we've done at Under Armour 611 00:34:20.040 --> 00:34:23.880 in partnership with others on a scalable fiber sharing testing 612 00:34:24.520 --> 00:34:27.760 method that we are working actively with others to deploy. 613 00:34:27.760 --> 00:34:28.480 More broadly, 614 00:34:29.440 --> 00:34:31.199 I think it was observed earlier that each of us, 615 00:34:31.199 --> 00:34:35.280 as we sit on today's panel or even the audience, have multiple roles 616 00:34:35.920 --> 00:34:38.960 brand customer supplier, law enforcement authority 617 00:34:38.960 --> 00:34:42.120 regulator of public servant, customer service. 618 00:34:42.120 --> 00:34:44.280 Some of us are trying to be servant leaders. 619 00:34:44.280 --> 00:34:49.080 We have multiple stakeholders we face or set multiple and multiplying standards, 620 00:34:49.360 --> 00:34:53.480 and we engage with many stakeholders, sometimes as an initiator or responder. 621 00:34:53.480 --> 00:34:57.360 So we have a lot of roles in which we have a chance to drive positive impact. 622 00:34:58.000 --> 00:34:59.920 Now let me turn to the heart of the matter. 623 00:34:59.920 --> 00:35:02.360 Some thoughts for your consideration. 624 00:35:02.360 --> 00:35:06.000 We think it's important, speaking of green trade, innovation and incentives, 625 00:35:06.680 --> 00:35:09.400 that there's collaboration between government, industry 626 00:35:09.400 --> 00:35:13.720 and by industry within and across supply chains, value chains and sectors, 627 00:35:14.160 --> 00:35:17.280 building and incentivizing the creation of infrastructure 628 00:35:17.560 --> 00:35:21.320 to pivot from a linear economy, take, make and waste to one 629 00:35:21.320 --> 00:35:23.240 in which there is abundant, scalable, 630 00:35:23.240 --> 00:35:26.760 mechanical and chemical recycling infrastructure is critical. 631 00:35:27.000 --> 00:35:30.040 And that's in addition to the work to green, the grid, 632 00:35:30.600 --> 00:35:33.080 circular economy and circular design principles. 633 00:35:33.080 --> 00:35:37.600 We believe that products that incorporate circular design criteria 634 00:35:37.920 --> 00:35:41.560 should be incentivized, such as those that use textile, textile, 635 00:35:41.560 --> 00:35:45.320 recycled fibers or features that facilitate repair and recycling. 636 00:35:46.480 --> 00:35:46.840 Turning 637 00:35:46.840 --> 00:35:49.840 to the pivot to the circular economy again, textile recycling. 638 00:35:49.840 --> 00:35:53.240 We support inter-agency efforts to remove barriers to and accelerate 639 00:35:53.240 --> 00:35:56.840 the scaling of mechanical and chemical textile recycling. 640 00:35:57.320 --> 00:36:00.880 Many of these technologies are actually proven, but they face challenges 641 00:36:01.160 --> 00:36:02.360 for adoption at scale. 642 00:36:02.360 --> 00:36:06.080 So focused governmental policies could help to address gaps in the market. 643 00:36:06.480 --> 00:36:10.080 And we believe that some of the entities that will speak to you later today, 644 00:36:10.080 --> 00:36:13.520 including textile exchange, as Matt referred to, that 645 00:36:14.280 --> 00:36:17.520 incentives such as expedited CBP processing time or new 646 00:36:17.760 --> 00:36:20.480 harmonized tariff schedule classifications 647 00:36:20.480 --> 00:36:23.520 could recognize products that are, for example, produced at Tier 648 00:36:23.520 --> 00:36:27.920 one, Tier two factories that participate and recognize efficiency programs 649 00:36:28.240 --> 00:36:31.240 like Apparel, Impact Institute or Carbon Leadership program. 650 00:36:31.440 --> 00:36:35.000 These look at how to reduce energy, pivot to renewable energy, 651 00:36:35.000 --> 00:36:39.600 reduce other impacts, recognizing products that are produced in factories at Tier 652 00:36:39.600 --> 00:36:43.800 one and Tier two that are located in clean or green production zones 653 00:36:45.320 --> 00:36:48.120 and supporting efforts that create jobs for U.S. 654 00:36:48.120 --> 00:36:51.120 workers and chemical and mechanical recycling innovation, 655 00:36:51.600 --> 00:36:54.920 funding of related educational and training programs, including 656 00:36:54.920 --> 00:36:58.160 and in particular at community and junior colleges that focus on fiber 657 00:36:58.200 --> 00:37:01.600 production, fabric production and finished good manufacturing. 658 00:37:01.840 --> 00:37:05.320 And we think there's a place to recognize value chain actors or favor 659 00:37:05.320 --> 00:37:08.320 them that have set science based targets. 660 00:37:08.480 --> 00:37:13.200 So I want to end by circling back to our I started just in expressing gratitude. 661 00:37:13.200 --> 00:37:16.200 I have one minute to wrap up my time and I'm going to try to do that. 662 00:37:17.880 --> 00:37:20.520 The discussion today supports job creation, 663 00:37:20.520 --> 00:37:23.520 but most importantly, it supports improving the quality of lives. 664 00:37:23.640 --> 00:37:26.160 And I would caution that our effort and attention should be spent 665 00:37:26.160 --> 00:37:29.920 on our outcomes and goals, not terms or labels or names. 666 00:37:30.560 --> 00:37:33.840 If you look behind the concepts and the terms, you're going to see people 667 00:37:34.080 --> 00:37:35.760 collapsing from heat. 668 00:37:35.760 --> 00:37:38.760 Homes and businesses invaded and ruined by floods. 669 00:37:39.040 --> 00:37:43.520 Businesses and homes laid waste by fires recently, lungs burning, eyes 670 00:37:43.520 --> 00:37:47.520 tearing from fires from hills and plains in which people 671 00:37:47.520 --> 00:37:50.960 and businesses set up and try to live their lives. 672 00:37:53.080 --> 00:37:55.800 That's not the kind of cross-border transaction 673 00:37:55.800 --> 00:37:58.800 we want to smoke from other countries, by the way. 674 00:37:59.000 --> 00:38:03.640 So let's focus on job creation, improving the quality of lives, protect our house. 675 00:38:03.640 --> 00:38:06.360 That's all of our house, our planet, 676 00:38:06.360 --> 00:38:09.360 our one and only home field for current and future generations. 677 00:38:09.520 --> 00:38:13.440 As the environmental stakeholders often observed, there just isn't A planet B 678 00:38:13.840 --> 00:38:16.560 and there's nowhere to run to, nowhere to hide. 679 00:38:16.560 --> 00:38:19.000 As Martha Reeves in the Vandellas said, By the way, 680 00:38:19.000 --> 00:38:21.280 they're the same group that topped the charts with 681 00:38:21.280 --> 00:38:24.680 and I want to channel Assistant Commissioner Highsmith with what song 682 00:38:25.640 --> 00:38:29.400 Heat Wave, which seems ironically and unfortunately appropriate. 683 00:38:29.600 --> 00:38:32.600 So thank you all for being here with us today. 684 00:38:34.080 --> 00:38:37.080 All right, great. 685 00:38:37.840 --> 00:38:38.160 Okay. 686 00:38:38.160 --> 00:38:41.160 So quick question, Michael, for you. 687 00:38:41.480 --> 00:38:44.880 What best practices would you highlight that could become part of U.S. 688 00:38:44.880 --> 00:38:48.320 government conversations with trading partners as part of trade 689 00:38:48.320 --> 00:38:51.320 negotiations or an international standard? 690 00:38:51.560 --> 00:38:52.760 Thanks, John. 691 00:38:52.760 --> 00:38:53.880 So a couple of thoughts. 692 00:38:53.880 --> 00:38:57.720 Familiarity, clarity and consistency can support success. 693 00:38:58.160 --> 00:39:03.120 As an array of regulations emerge, Common Core provisions with clear guidance 694 00:39:03.400 --> 00:39:05.480 can help businesses execute the actions 695 00:39:05.480 --> 00:39:08.760 they need to achieve the outcome stakeholders desire. 696 00:39:09.240 --> 00:39:11.760 Second, sorry, that's my timer here. 697 00:39:11.760 --> 00:39:12.960 Calling may have gone too long. 698 00:39:14.640 --> 00:39:15.920 You have more time. 699 00:39:15.920 --> 00:39:16.480 Thank you. 700 00:39:16.480 --> 00:39:19.480 So like Mission Impossible, I'm going to be eliminated. 701 00:39:20.000 --> 00:39:23.000 Recognizing effort, good intent, and the commitment to improve. 702 00:39:23.280 --> 00:39:23.960 Like the world 703 00:39:23.960 --> 00:39:27.760 around us, businesses face an array of inherently complex challenges. 704 00:39:28.000 --> 00:39:30.960 No one gets it right all the time, and complying with regulations 705 00:39:30.960 --> 00:39:33.960 can particularly be particularly challenging for 706 00:39:34.000 --> 00:39:37.080 SMEs small to medium sized enterprises where the chef, the cook, 707 00:39:37.080 --> 00:39:40.160 the bottle washer often can be and are the same person 708 00:39:41.280 --> 00:39:43.960 borrowing from athletic performance warm up properly. 709 00:39:43.960 --> 00:39:45.600 Give us some warm up time. 710 00:39:45.600 --> 00:39:49.720 Allow or provide a safe harbor or grace period for businesses to test and learn. 711 00:39:50.520 --> 00:39:51.440 Test quickly. 712 00:39:51.440 --> 00:39:54.000 Fail fast to learn quickly from pilots. 713 00:39:54.000 --> 00:39:56.280 It takes for business to implement requirements. 714 00:39:56.280 --> 00:39:59.400 We need time to adapt and implement, and some may be facing 715 00:39:59.400 --> 00:40:02.480 challenges or asking their teams to do more with less. 716 00:40:02.760 --> 00:40:05.760 And finally, favorable conditions favor success. 717 00:40:05.760 --> 00:40:09.600 Support policies that create conditions that incentivize innovation 718 00:40:09.600 --> 00:40:13.280 in the investment in the innovations and infrastructure needed to support 719 00:40:13.280 --> 00:40:16.960 a pivot to a circular Under Armour's here, because our founder, Kevin Plank, 720 00:40:17.400 --> 00:40:20.400 started with a T-shirt that he thought could wick sweat away 721 00:40:20.400 --> 00:40:23.400 perspiration away from the body and solve a performance challenge. 722 00:40:23.560 --> 00:40:25.360 We continue to focus on innovation. 723 00:40:25.360 --> 00:40:28.280 I'm grateful to be here at the seat of innovation. 724 00:40:29.280 --> 00:40:29.600 Great. 725 00:40:29.600 --> 00:40:31.200 Thank you, Michael. 726 00:40:31.200 --> 00:40:33.840 I think we're back on schedule right. 727 00:40:33.840 --> 00:40:36.400 So we wrapping now, John. 728 00:40:36.400 --> 00:40:38.400 Can I offer a quick response? 729 00:40:38.400 --> 00:40:39.360 You may actually. 730 00:40:39.360 --> 00:40:41.920 We have time for a couple of questions. Great. Yeah, please go ahead, Mike. 731 00:40:41.920 --> 00:40:45.640 So you asked me a question and I failed to respond to it appropriately. 732 00:40:46.400 --> 00:40:49.400 And I'm going to take this opportunity to come back 733 00:40:49.680 --> 00:40:53.200 and it's around ACE 2.0, which you're fully aware of. 734 00:40:53.200 --> 00:40:57.120 So today, cargo carriers and Dana mentioned it 735 00:40:57.120 --> 00:41:01.000 still face a range of challenges related to trade facilitation, 736 00:41:01.000 --> 00:41:04.000 including the continued use of paper gilti 737 00:41:05.280 --> 00:41:07.000 forms. 738 00:41:07.000 --> 00:41:10.480 So thank you for the reminder on that and paper based communication, 739 00:41:10.480 --> 00:41:13.480 repetitive data requirements that we have 740 00:41:14.680 --> 00:41:17.520 from various border agencies and outdated 741 00:41:17.520 --> 00:41:22.080 and cumbersome systems for managing data across the organization. 742 00:41:22.560 --> 00:41:26.960 Many of these shortcomings stem from the fact that the automated customs 743 00:41:26.960 --> 00:41:30.400 environment has limited functionality and investments. 744 00:41:30.440 --> 00:41:35.800 Updating to a 2.0 in coordination with the private sector users 745 00:41:35.800 --> 00:41:40.200 would enable a simpler, faster and more effective data sharing across agencies. 746 00:41:40.880 --> 00:41:43.560 This would maintaining an improved risk targeting. 747 00:41:43.560 --> 00:41:48.240 It would still maintain and improve even risk targeting across all entry types, 748 00:41:48.240 --> 00:41:52.080 including de minimis, while facilitating faster, more efficient cargo handling. 749 00:41:52.440 --> 00:41:55.320 I think if there's one lesson we learned from the pandemic 750 00:41:55.320 --> 00:41:58.000 was the importance of flexible routing of shipments. 751 00:41:58.000 --> 00:41:59.120 We knew that. 752 00:41:59.120 --> 00:42:01.880 Yet the existing age separates manifesting by. 753 00:42:03.240 --> 00:42:04.640 So adding functionality 754 00:42:04.640 --> 00:42:08.280 like Multimodal manifest would support the routing of flexibility 755 00:42:08.400 --> 00:42:12.240 and would reduce dwell times and related emissions at the border. 756 00:42:12.360 --> 00:42:14.440 So thank you, sir, for allowing me 757 00:42:14.440 --> 00:42:17.440 that opportunity to come back and answer effectively your question. 758 00:42:18.320 --> 00:42:19.360 Okay. Thanks, Mike. 759 00:42:19.360 --> 00:42:21.680 Message received on ACE 2.0. 760 00:42:21.680 --> 00:42:26.640 I mean, we really intend for this to be a transformational change for ACE, 761 00:42:28.040 --> 00:42:31.120 The ACE 1.0, if you will, was a great start. 762 00:42:31.240 --> 00:42:34.680 We really want to make some changes that can that can help this effort 763 00:42:34.680 --> 00:42:35.360 and other efforts. 764 00:42:35.360 --> 00:42:36.880 So I appreciate that. 765 00:42:36.880 --> 00:42:39.880 Let me throw a question out there 766 00:42:40.000 --> 00:42:42.000 for any of our members. 767 00:42:42.000 --> 00:42:43.080 I think this is a good one. 768 00:42:43.080 --> 00:42:45.760 What significant barriers are you facing 769 00:42:45.760 --> 00:42:48.320 or have you faced in your sustainability efforts? 770 00:42:48.320 --> 00:42:50.040 Maybe, Matt, you take a shot at that. 771 00:42:51.240 --> 00:42:51.680 Yeah, sure. 772 00:42:51.680 --> 00:42:55.680 I'm happy to dive in at this point in our work as an organization. 773 00:42:56.400 --> 00:42:57.280 You know, I mentioned 774 00:42:57.280 --> 00:42:59.760 two thirds of our impact is really in how we manufacture product 775 00:42:59.760 --> 00:43:03.920 and it's things like heating up water in order to die of fabric 776 00:43:03.920 --> 00:43:06.920 before it even goes and gets cut and sewn into a final product. 777 00:43:07.080 --> 00:43:10.720 So our main focus as an organization right now, beyond the work 778 00:43:10.720 --> 00:43:15.080 we've already done in our own business footprint, is to really decarbonize 779 00:43:15.080 --> 00:43:17.400 our global value chain. So that requires a couple of things. 780 00:43:17.400 --> 00:43:21.200 It requires electrifying a huge number of manufacturing processes, many 781 00:43:21.200 --> 00:43:24.760 of which currently run on thermal heat, so actually combust in coal 782 00:43:24.760 --> 00:43:27.960 or natural gas on site to do something like heat up that water. 783 00:43:28.680 --> 00:43:30.600 And then it means greening the grid. 784 00:43:30.600 --> 00:43:33.000 Once you have your systems electrified. 785 00:43:33.000 --> 00:43:37.440 So for us, we are actually in the process of beginning to procure 786 00:43:37.440 --> 00:43:41.080 clean energy in the places, wherever we manufacture product, 787 00:43:41.640 --> 00:43:44.760 buying energy on behalf of our manufacturing partners. 788 00:43:45.240 --> 00:43:47.720 Long term, though, we need our manufacturing partners 789 00:43:47.720 --> 00:43:52.120 to be able to access clean energy instruments themselves on our behalf. 790 00:43:52.120 --> 00:43:53.800 And we basically need to build clean energy 791 00:43:53.800 --> 00:43:55.880 into the bill of materials for our product, 792 00:43:55.880 --> 00:43:59.400 just like we would any other input that actually goes into creating 793 00:43:59.400 --> 00:44:01.080 that final product. Right? 794 00:44:01.080 --> 00:44:03.640 Or just like we think about the human rights associated 795 00:44:03.640 --> 00:44:05.080 with manufacturing product, right? 796 00:44:05.080 --> 00:44:08.080 This is has to be an integrated approach to how we design and build 797 00:44:08.520 --> 00:44:10.120 the products we're importing. 798 00:44:10.120 --> 00:44:14.680 So for us briefly, we participated in the Clean Energy Demand Initiative, 799 00:44:15.480 --> 00:44:17.720 which is a fantastic US led 800 00:44:17.720 --> 00:44:20.720 initiative Department of State, USAID and others. 801 00:44:20.920 --> 00:44:24.000 That's actually beginning to bring some of these clean instrument, 802 00:44:24.320 --> 00:44:27.000 clean energy instruments into places like Southeast 803 00:44:27.000 --> 00:44:30.000 Asia, where most of the manufacturing is occurring. 804 00:44:30.120 --> 00:44:33.800 So that's just a wonderful example, and I'd encourage anybody who is active 805 00:44:33.800 --> 00:44:37.720 in managing a global supply chain to look into the study initiative. 806 00:44:37.720 --> 00:44:41.400 And hopefully there's opportunities for us, CBP, to also engage in that. 807 00:44:42.240 --> 00:44:43.880 Great. Thank you for that. 808 00:44:43.880 --> 00:44:44.440 Next question. 809 00:44:44.440 --> 00:44:46.600 I'd actually like Mike and Dana to respond. 810 00:44:46.600 --> 00:44:48.880 And I have I have one from Michael. 811 00:44:48.880 --> 00:44:52.440 What has the internal response to your sustainability 812 00:44:52.560 --> 00:44:55.080 initiatives been like with your own employees? 813 00:44:55.080 --> 00:44:57.840 Do you find there's a strong awareness among them? 814 00:44:57.840 --> 00:44:59.000 Start With Dana. 815 00:45:00.840 --> 00:45:01.680 Thanks very much. 816 00:45:01.680 --> 00:45:04.920 So we outlined in our sustainability report 817 00:45:05.840 --> 00:45:08.160 that is available on our website, 818 00:45:08.160 --> 00:45:10.440 the employees are actively engaged in this. 819 00:45:10.440 --> 00:45:13.920 So from just the company standpoint, our strategy, 820 00:45:13.920 --> 00:45:17.440 one of the enablers of our strategy is really about the environment. 821 00:45:17.840 --> 00:45:21.360 And we have green teams that have been formed in all of our district offices 822 00:45:21.360 --> 00:45:26.200 around the world, and we do charitable giving at a very local level 823 00:45:26.200 --> 00:45:29.200 in all of our locations around the world as well. 824 00:45:29.760 --> 00:45:32.160 We find that our workforce is very young. 825 00:45:32.160 --> 00:45:36.440 Quite frankly, at the beginning we have programs called Opportunity Knocks. 826 00:45:36.440 --> 00:45:39.160 It takes young kids really from high school 827 00:45:39.160 --> 00:45:41.080 and sort of brings them into the supply chain. 828 00:45:41.080 --> 00:45:44.920 We have veterans and all sorts of different in terms of levels 829 00:45:44.920 --> 00:45:45.720 around the world. 830 00:45:45.720 --> 00:45:49.000 And this is one item that absolutely 831 00:45:50.320 --> 00:45:51.720 energizes the workforce. 832 00:45:51.720 --> 00:45:53.320 They feel like they can make a difference. 833 00:45:53.320 --> 00:45:57.000 And we've seen some very good success from that and some creative ideas. 834 00:45:57.840 --> 00:45:58.760 Great. 835 00:45:58.760 --> 00:46:00.920 Mike, you're a big international company like X, 836 00:46:00.920 --> 00:46:03.600 but what is the rank and file think of these efforts? 837 00:46:03.600 --> 00:46:07.760 Yeah, I would say first and foremost, they have everyone is fully aware 838 00:46:07.800 --> 00:46:09.000 of what we're doing. 839 00:46:09.000 --> 00:46:11.680 So our ESG strategy is quite public. 840 00:46:11.680 --> 00:46:15.320 It's quite known we've been vocal about it being a German company, 841 00:46:15.640 --> 00:46:17.640 everything is out in the open. 842 00:46:17.640 --> 00:46:20.240 We're constantly being tested. 843 00:46:20.240 --> 00:46:22.760 From a shareholder perspective, on a quarterly basis, 844 00:46:22.760 --> 00:46:24.560 we report on our progress. 845 00:46:24.560 --> 00:46:27.120 The employees are aware of that 846 00:46:27.120 --> 00:46:30.240 and they're proud of the changes that they're seeing that are unfolding 847 00:46:30.240 --> 00:46:31.800 in the organization. 848 00:46:31.800 --> 00:46:36.080 Just last week when we opened up the new Atlanta hub, which is a completely carbon 849 00:46:36.080 --> 00:46:39.920 neutral hub for us, it's the first of its kind even in Atlanta. 850 00:46:40.320 --> 00:46:43.280 The employees were quite happy that we're the first company at Hartsfield 851 00:46:43.280 --> 00:46:46.280 International Airport that has solar on the roof. 852 00:46:46.320 --> 00:46:50.400 And this is right in the line of sight of aircraft that are arriving and landing. 853 00:46:50.760 --> 00:46:52.520 So it was a pilot with the airport. 854 00:46:52.520 --> 00:46:54.120 The airport is seeing that 855 00:46:54.120 --> 00:46:57.640 the Anti-Reflective Solar panels that we put on place are producing 856 00:46:57.640 --> 00:47:01.200 50% of the energy for the building that we're operating. 857 00:47:01.520 --> 00:47:03.720 And they they're saying they're looking at us 858 00:47:03.720 --> 00:47:08.920 and saying this is what a responsible, great place to work does in the industry. 859 00:47:08.960 --> 00:47:10.640 So quite happy. 860 00:47:10.640 --> 00:47:12.000 We're holding ourselves accountable. 861 00:47:12.000 --> 00:47:12.640 And then finally, 862 00:47:12.640 --> 00:47:16.800 our corporate board members have it as part of their incentive scheme. 863 00:47:16.800 --> 00:47:19.040 So if we don't hit the targets, they don't get paid 864 00:47:19.040 --> 00:47:21.160 their bonus at the corporate board level. 865 00:47:21.160 --> 00:47:24.000 So we said, we're going to put our money where our mouth is from that perspective 866 00:47:24.000 --> 00:47:24.360 as well. 867 00:47:25.320 --> 00:47:26.160 Great. 868 00:47:26.160 --> 00:47:26.600 Interesting. 869 00:47:26.600 --> 00:47:30.720 You both hit on the these are actually ways to attract employees to the company. 870 00:47:30.720 --> 00:47:33.720 We find it with CBP as well. 871 00:47:34.120 --> 00:47:36.520 With the initiatives we're working on with green trade 872 00:47:36.520 --> 00:47:39.520 and forced labor and other initiatives. 873 00:47:39.840 --> 00:47:40.200 Okay. 874 00:47:40.200 --> 00:47:43.200 One for you, Michael, and I think we'll wrap at that. 875 00:47:43.240 --> 00:47:43.560 Yeah. 876 00:47:43.560 --> 00:47:46.480 So if you could just take us home with this, Michael. 877 00:47:46.480 --> 00:47:48.840 One of the key tenants of the green trade strategy 878 00:47:48.840 --> 00:47:51.840 is that it imagines a whole of government approach. 879 00:47:52.400 --> 00:47:55.320 How have you been able to integrate sustainability measures across 880 00:47:55.320 --> 00:47:57.520 your different components within Under Armour? 881 00:47:57.520 --> 00:47:59.840 Have some areas been easier, harder than others? 882 00:47:59.840 --> 00:48:02.840 And how did you manage those challenging areas? 883 00:48:03.080 --> 00:48:03.360 Sure. 884 00:48:03.360 --> 00:48:04.440 So I think a big help 885 00:48:04.440 --> 00:48:08.400 for us was work that we did after what we call our materiality assessment 886 00:48:08.640 --> 00:48:12.280 to look at material issues to us internally, externally to then develop 887 00:48:12.280 --> 00:48:15.360 a framework of goals and targets, many of which are aspirational. 888 00:48:15.640 --> 00:48:19.880 We then matrix them across the business and assign ownership and accountability 889 00:48:19.880 --> 00:48:21.400 in different business units. 890 00:48:21.400 --> 00:48:24.480 There's often when you are in my role at a company or match role 891 00:48:24.480 --> 00:48:27.480 or discussion of sustainability in the business, and what we've worked 892 00:48:27.640 --> 00:48:30.000 hard to communicate is that there's just one business. 893 00:48:30.000 --> 00:48:32.080 We're all part of that team doing that. 894 00:48:32.080 --> 00:48:36.600 And as my current boss, Colin Brown, our chief operating officer, always says 895 00:48:36.600 --> 00:48:40.400 that sustainability at our company and this is supported by Stephanie 896 00:48:40.400 --> 00:48:41.560 Lennox, our CEO. 897 00:48:42.720 --> 00:48:45.360 You know, has indicated this is a strategic priority. 898 00:48:45.360 --> 00:48:49.560 Can't be the sustainability team doing sustainability to the rest of the company. 899 00:48:49.760 --> 00:48:53.640 It really needs to be owned and live within other business units. 900 00:48:53.640 --> 00:48:54.480 And that's what's happened. 901 00:48:54.480 --> 00:48:58.240 We've allocated roles and responsibilities where we've seen people 902 00:48:58.560 --> 00:49:01.320 have sustainability become part of their title, 903 00:49:01.320 --> 00:49:03.400 their job descriptions and responsibilities. 904 00:49:03.400 --> 00:49:06.000 We have places that we're moving ahead on. 905 00:49:06.000 --> 00:49:08.600 We have a lot of challenges and open space ahead of us. 906 00:49:08.600 --> 00:49:11.480 I think it's hard work. It's not important. 907 00:49:11.480 --> 00:49:12.560 It's not perfect work. 908 00:49:12.560 --> 00:49:16.080 But we we're trying to move ahead to drive the positive impact. 909 00:49:17.240 --> 00:49:19.080 Great. Thank you. 910 00:49:19.080 --> 00:49:22.400 So I just want to wrap and thank all of you. 911 00:49:22.440 --> 00:49:26.760 As I indicated earlier, you're in my mind, the heart of international trade, 912 00:49:26.760 --> 00:49:29.760 the manufacturing, the clearance and movement of goods 913 00:49:30.200 --> 00:49:34.720 and really appreciate the insight that you have that you all have provided. 914 00:49:35.040 --> 00:49:37.280 So thanks so much. And let's give him a round of applause.