Getting More Closer to Sustainable Operations will be a Strategic Imperative for Logistic Companies in 2024

Come 2024, the logistics industry is expected to step up its efforts to become more sustainable and bring down its contribution towards overall global emissions. It is believed that in 2024, shippers will pull out all stops to collaborate with stakeholders to generate green gas emissions reports and fall in line with the GLEC Framework and ISO 14083 requirements.

The reason for the overdrive is obvious - to comply with emission measurement needs and assist the bodies in developing a standard approach towards computing net emissions arising from global logistics. The collateral benefit of complying with these operational needs would be a nod of approval from governments and investors.

What is it All About?

Supply chain emission reporting refers to the process of measuring, analyzing, and disclosing the greenhouse gas (GHG) emissions associated with the entire supply chain of a company. The report entails disclosure such as direct and indirect emissions, information on energy consumption, fuel use, calculation methodologies to convert the collected data into carbon dioxide equivalent (CO2e) emissions, steps taken to review and update emission data, targets, and strategies, measures adopted to reduce emissions (technologies and practices) further, etc.

But before that, logistics companies will have to sit down and work out a proper and detailed plan with suppliers, distributors, and transportation companies to cut down on emissions within their supply chain. This would mean that all stakeholders must be on the same page on issues such as optimized transportation routes, eco-friendly packaging, and using energy-efficient technologies. Adopting such sustainable practices will have a trickle-down effect in their network and inspire all stakeholders to walk hand-in-hand toward the common goal.

Why is it Still a Long Haul?

Having said that, logistics companies still have a long way to go in generating emission reports. This is because the industry needs more specific frameworks to tackle diverse modes of operations and needs verification mechanisms to validate emissions. For instance, diverse transportation modes, complex networks, and varying energy sources make it difficult to set up and maintain a standard framework. Likewise, diverse international regulations, varying data reporting standards, and differing measurement methodologies make emission verification highly inconsistent.

Therefore, the need of the hour is to take small steps toward the goal and stay committed to contributing to the larger cause. To start with, in 2024, logistic companies will explore ways to bank more on renewable energies and recycled materials. Some options to integrate renewable energies include installing solar panels in warehouses and incorporating electric delivery trucks with charging stations for the logistics fleet. Likewise, to promote recycling programs, they will establish systems for returning and recycling packaging materials, implement efficient waste sorting practices in logistics facilities, and invest in recycling infrastructure.

Starting next year, logistic companies will develop a more comprehensive approach toward creating a shared vision for sustainability, fostering a collective commitment. The approach will be geared towards cohesive participation for guaranteed positive outcomes. A few key aspects of the approach will include clear communication with stakeholders to stay perpetually aligned, adequate financial incentives to motivate participants, leveraging technology to identify specific areas for improvement, and a more transparent reporting process to drive widespread engagement.