Sustainability in Logistics

Sustainability is currently of the utmost importance in all trades and markets. In Logistics, this is particularly so as the environmental impact of the logistics sector must be reduced to meet with European and Spanish objectives. Today we will look at how logistics operators can promote sustainability in their operations and assets.

There is an existing set of European regulations regarding sustainability in logistics. Compliance with the current and future regulations will make the difference in the future of many companies.

?Some of the key European regulations regarding sustainability in Logistics are:

• EU Emissions Trading System (ETS): The EU ETS is a key policy tool for reducing greenhouse gas emissions from large industrial and commercial emitters, including those in the logistics sector. It places a cap on the total amount of emissions that can be released by covered entities, and allows them to buy and sell emissions allowances in a carbon market.
• Clean Vehicles Directive: The Clean Vehicles Directive requires that a minimum percentage of public procurement of new vehicles by member states is of low or zero-emission vehicles. This includes vehicles used for public transport, as well as for urban logistics and municipal services.
• Alternative Fuels Infrastructure Directive: This directive requires member states to ensure that an adequate number of publicly accessible refuelling and recharging points are available for alternative fuels, including electricity, hydrogen, and natural gas. This is important for encouraging the uptake of low-carbon vehicles in the logistics sector.
• EU Green Deal: The EU Green Deal is a comprehensive policy framework aimed at making Europe climate neutral by 2050. It includes a range of measures to promote sustainable transport, including the development of a sustainable and smart mobility strategy.
• Sustainable and Smart Mobility Strategy: The Sustainable and Smart Mobility Strategy is a new policy framework that aims to make European transport more sustainable, efficient, and resilient. It includes measures to promote the use of low-emission and sustainable transport modes, such as cycling, walking, and public transport.

In the future, it is likely that we will see more regulations aimed at reducing the environmental impact of the logistics sector. These could include measures to promote the use of renewable energy sources, such as solar and wind power, in logistics operations, as well as regulations around the efficient use of resources, such as packaging materials and fuel. Additionally, we may see more regulations aimed at reducing the environmental impact of e-commerce and last-mile delivery, which are growing rapidly and have significant environmental impacts.

Many logistics operators are anticipating these future regulations by improving their sustainability in their operations. There are a range of actions that can be adopted:

• Adopting low-emission vehicles: Logistics companies can switch to low-emission vehicles, such as electric or hybrid vehicles, which produce lower emissions compared to conventional diesel vehicles. These vehicles can also reduce operating costs over the long-term, due to lower fuel and maintenance costs.
• Improving vehicle efficiency: Logistics companies can improve the fuel efficiency of their vehicles by adopting technologies such as aerodynamic designs, low rolling resistance tires, and engine start-stop systems. These measures can help reduce fuel consumption and emissions.
• Using alternative fuels: Logistics companies can use alternative fuels, such as natural gas or biofuels, which emit less greenhouse gases than diesel or gasoline. This can also help reduce dependence on fossil fuels.
• Utilizing intermodal transport: Intermodal transport involves the use of multiple modes of transport, such as rail, road, and sea, to move goods. This can help reduce emissions by using the most efficient mode of transport for each leg of the journey.
• Implementing telematics systems: Telematics systems can help logistics companies optimize their fleet operations by providing real-time information on vehicle performance, driver behaviour, and traffic conditions. This can help reduce fuel consumption and emissions, as well as improve safety and efficiency.
• Implementing circular economy principles: Logistics companies can implement circular economy principles, such as designing products for longevity and repairability, using recycled materials, and reducing waste. This can help reduce the environmental impact of their operations and products.
• Utilizing renewable energy: Logistics companies can use renewable energy sources, such as solar or wind power, to power their warehouses, offices, and other facilities. This can help reduce greenhouse gas emissions and operating costs.

By implementing these measures and adopting a holistic approach to sustainability, logistics companies can improve the sustainability of their assets and reduce their environmental impact. Additional measures can be taken on the real estate assets of the companies, particularly in the logistics warehouse. There are several sustainability measures that can be implemented in a logistics warehouse to reduce environmental impact and improve sustainability. Here are a few examples:

• Energy efficiency: Logistics warehouses can reduce energy consumption by implementing energy-efficient lighting, HVAC systems, and insulation. Installing motion sensors and timers can also help reduce energy waste.
• Renewable energy: Installing solar panels or wind turbines can help warehouses generate renewable energy on-site and reduce their reliance on non-renewable sources.
• Waste reduction: Logistics warehouses can implement waste reduction measures by implementing recycling programs, composting organic waste, and reducing single-use packaging. They can also partner with suppliers to reduce the amount of packaging used in inbound shipments.
• Water conservation: Implementing water-efficient fixtures and practices can help reduce water consumption in logistics warehouses. This includes low-flow toilets, faucets, and showerheads, as well as rainwater harvesting systems for non-potable uses.
• Green roofs and walls: Installing green roofs and walls can help reduce the urban heat island effect, improve air quality, and provide insulation. They can also provide habitat for pollinators and other wildlife.
• Sustainable materials: Logistics warehouses can use sustainable building materials, such as FSC-certified wood, recycled content materials, and low-emitting materials. This can help reduce the environmental impact of the building and its construction.
• Transportation: Logistics warehouses can promote sustainable transportation by providing electric vehicle charging stations, bike racks, and public transportation information. They can also encourage their employees to carpool or use alternative transportation modes.

By implementing these measures, logistics warehouses can reduce their environmental impact, lower operating costs, and improve the health and well-being of their employees and communities.

?As we have seen there are numerous measures that can be applied by logistics companies to promote sustainability in their operations and assets, working towards a better future.

For more information about how VMT & Associates can help you evaluate your assets to promote sustainability and ESG objectives, please do not hesitate to contact us at: