Worldwide logistics adapting to the new norm of net zero carbon footprint in record time.

The logistics and transport sector contributes just over a third of global carbon dioxide (CO2) emissions, making it the largest-emitting sector in numerous developed countries. And that share keeps growing.

A sector that makes such a significant contribution to global emissions can play a critical role in the transition to a decarbonized future, as well as adapting to the impacts of climate change. To meet the world’s net-zero targets, transport needs to reduce its emissions by around 20?%, to less than 6?Gt by 2030, in anticipation of the projected growth in demand for global trade.

Freight transportation, in particular, plays an important role in our global economy. Billions of tonnes of cargo are transported around the world each year by trucks, planes, ships, and trains. According to researchers from the Massachusetts Institute of Technology Supply Chains Initiative, freight transportation contributes approximately 8% of global greenhouse gas emissions. Add warehousing operations and this figure inflates to 11?%.

Carrying billions of tonnes of freight annually needs masses of energy and a lot of CO2 emissions. A “business as usual” approach would see CO2 emissions from freight grow, yet this scenario is unlikely to happen. And here’s why. The sector is already tackling head on its carbon footprint, with standards playing a key part in the process. Recent data reveals several countries are reducing their carbon emissions. Many freight forwarders and transport companies are targeting net zero by 2050, or even earlier.

On a worldwide scale, logistics companies are adapting to the net-zero carbon footprint in record time by implementing various strategies, including:

1. Electrifying Fleets: Companies like DPD are electrifying their first and last-mile delivery fleet, with plans to increase the share of alternative solutions, such as cargo bikes and delivery on foot, to 85% by 2030 and 100% by 2035.
2. Investing in Renewable Energy: Companies are switching to renewables to power their infrastructure, with DPD on track to achieve 70% renewables by 2030.
3. Energy Efficiency: Improving energy efficiency by using energy-efficient equipment, adopting renewable energy sources like solar power, and reducing energy consumption in warehouses and distribution centers
4. Shift to Alternative Powertrain Technologies: DPD is diversifying its linehaul fleet to include alternative powertrain technologies such as electric, hydrogen, biogas, and biofuel-powered trucks, as well as shifting more parcels to rail to increase the share of alternative linehaul solutions to 50% by 2030.
5. Urban Depots and Electric Charging Points: DPD is setting up urban depots and installing electric charging points to support its fully low-emission deliveries in 350 cities across Europe by 2025.
6. Carbon Calculator: Geopost/DPD developed a carbon calculator to help businesses report and reduce their CO2 emissions, enabling more sustainable decisions.
7. Customer Visibility: Companies are helping customers gain better visibility of the emissions generated by their supply chains, providing tools and resources to make more sustainable decisions.
8. Carbon Offsetting: Logistics firms are offsetting their remaining emissions by investing in GHG reduction projects like reforestation, renewable energy, and energy efficiency projects.
9. Low-Carbon Materials and Packaging: Logistics firms are working with suppliers to source sustainable materials and using recyclable or biodegradable packaging to reduce carbon emissions.
10. Route Optimization: Optimizing delivery routes using AI and IoT to avoid delays and decrease fuel consumption, which also encourages multimodal transportation to reduce carbon emissions.
11. Collaboration: Collaborating with trusted third-party logistics providers to increase visibility into supply chain operations and share knowledge about ESG plans proactively

These strategies are helping logistics companies reduce their carbon footprint and contribute to a more sustainable future for the industry.

Some of the top sustainable transport and logistics companies include:

1. XPO Logistics: Committed to carbon neutrality by 2040 and net-zero emissions by 2050, XPO has been recognized as the first parcel delivery company to have both near- and long-term SBTis approved.
2. Geopost/DPD: A parcel delivery company that has become the first to have both near- and long-term SBTis approved, intending to reduce its carbon emissions by 90% by 2040 at the latest and to compensate the remaining 10% through projects that remove carbon dioxide from the atmosphere.
3. Brambles: A global leader in supply chain solutions, operating under the CHEP brand, with a focus on moving more goods to more people and reducing its carbon footprint.
4. Smart Freight Centre (SFC): Developed the Global Logistics Emissions Council (GLEC) Framework to help multinationals monitor, report, and eventually reduce their CO2 emissions.
5. AIT Worldwide Logistics: A signatory of The Climate Pledge, aiming to reach net-zero carbon emissions by 2035, five years ahead of the pledge's 2040 target.

These companies are adopting various strategies to reduce their carbon footprint, including electrifying their fleets, investing in renewable energy, and implementing carbon offset programs.

Sam Larios | Author

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