Is the Future of Logistics Green and Sustainable

Aug 29, 2024 • read
eShipper’s Commitment to Sustainability

The European Environment Agency predicts that logistics will account for up to 40% of global carbon dioxide emissions by 2050 unless changes are implemented. 

Recent data paints a concerning picture: in the State of Supply Chain Sustainability 2023 report, over 2,300 global respondents revealed that approximately 65% of their companies lack a net-zero carbon emissions target.

This is not only going to hurt the planet—but their business as well. 

A recent survey has found that 66% of customers consider sustainability when they make a purchase or are choosing a service, wanting to align themselves with brands with the same values and priorities. 

If you’re looking to align your eCommerce business with these values (and your customers), this article will provide you with the key components and strategies in order to do so. 

Environmental Impact of Logistics

Environmental Impact of Logistics

With global commerce humming along, the logistics industry is the quiet engine that keeps things moving, but at what cost to the planet? 

Carbon emissions spiral out of control when we stick to traditional practices, significantly contributing to its environmental impact of logistics.

In 2020, medium and heavy-duty trucks accounted for a quarter of all greenhouse gas emissions from the US transportation sector, which is approximately 420 million metric tons of CO2 annually. 

Because of this, this sector is among the top 10 emissions sources in most industries, according to research based on CDP reporting, contributing to climate change and environmental degradation.

But it doesn't have to be that way. Green logistics is not just about reducing emissions; it’s a holistic approach that encompasses every part of the supply chain that will set your business up for success in the future. Let’s learn what that involves. 

Key Components of Sustainable Logistics

Key Components of Sustainable Logistics

The UN’s Sustainable Development Goals give us a guide to creating a sustainable supply chain. Here are the key components to keep in mind: 

  1. Environmental Responsibility: 

Green logistics solutions will mitigate the impact of transportation, warehousing and distribution on the environment. This will be through reducing carbon emission and pollution, as well as conservation of natural resources.

A serious reboot of the logistics playbook must address one crucial glitch: reckless gas-guzzling habits. By swapping these practices for eco-responsible efficiency, we create a win-win: cleaner air and improved bottom lines for our businesses.

  1. Social Consciousness

Responsible logistics practices don't stop at reducing our carbon footprint—they also mean making sure everyone involved is treated fairly and respectfully, from our workers to our neighbors.

Businesses must commit to social responsibility, letting their actions speak louder than words about what matters most. By embracing eco-friendly tech and practices, we're not just doing the planet a solid, we're also winning over customers who share our values.

  1. Economic Viability

Contrary to common perception, sustainable logistics strategies are not only environmentally beneficial but are also economically smart. Cost savings and supply chain stability, coupled with more customer alignment are possible when businesses cut out the excess and invest in green logistics solutions. 

  1. Innovation and Technology

Sustainability and logistics: it's a match made in heaven when innovative thinkers integrate eco-friendly strategies into the supply chain. As an industry, we need to work together to create systems that work for the environment and our businesses.

Logistics Sustainability Strategies

Logistics Sustainability Strategies

Here are some key strategies for carbon footprint reduction in logistics:

Logistics sustainability strategies page 2
  1. Eco-friendly Transportation

Embracing zero-emission logistics, such as electric vehicles and hybrid fleets, plays a crucial role in reducing carbon emissions and promoting environmental sustainability.

  1. Smart Route Optimization

The fusion of data analytics and AI algorithms gets the job done—optimal routes are carved out, delivery times shrink, and fuel consumption plummets.

  1. Sustainable Warehousing Solutions 

We've also got to look at our warehouses. Investing in solar power, wind energy, and super-efficient lighting, will go far in creating a sustainable future.

This reality is bringing significant savings on resources and a major boost to efficiency.

  1. Recycling and Reverse Logistics

Effective management of product returns through recycling and reverse logistics minimizes waste and supports circular economy principles.

By repurposing materials and reducing landfill contributions, businesses can achieve substantial environmental benefits while enhancing sustainability credentials.

  1. Eco-friendly Packaging

Using environmentally friendly packaging materials, like bioplastics and recyclable cardboard, does more than just shrink waste, it fuels more sustainable habits and results.

  1. Ethical Sourcing

Getting products from point A to point B involves a lot of movers and shakers, that's why we commit to ethical sourcing, empowering people and fostering communities every step of the way. When you choose suppliers that treat their employees and the environment with respect, you’re making a statement about what matters.

  1. Fair Labour Practices

Workers who feel seen and valued are more likely to thrive, and companies that prioritize their welfare see benefits across the board.

Sustainable supply chains are becoming the new standard, and these initiatives are right at the forefront—pleasing eco-conscious consumers along the way.

Courier vs. Postal Service

Benefits of Green Logistics Solutions

The adoption of green logistics solutions can trickle down to positively impact a businesses financial health, the environment, and even local neighborhoods, all at the same time.

Green logistics solutions can also instantly trim the fat from operational budgets. By fine-tuning resource allocation, businesses can remake their bottom line. Business owners can expect cost savings and greater market influence by fostering a supply chain that's both robust and fuel-efficient.

According to NielsenIQ, 73% of global consumers say they would change their consumption behaviour in order to align with environmental sustainability. Investing in sustainable infrastructure now is going to set your business up for success into the future. 

Going green also does more than help the environment, it brings people together and energizes employees to do their best work. It's a win-win when businesses prioritize social responsibility and ethical practices, their stakeholders appreciate it, and society benefits too.

Courier vs. Postal Service

eShipper’s Commitment to Sustainability

At eShipper, we are committed to pioneering sustainable logistics solutions that align with our environmental and social responsibility goals.

eShipper’s Commitment to Sustainability in logistics

Since April 22, 2024, we've offset 200.02 tonnes of CO2, equivalent to the climate impact of planting 3,237 new trees, taking 43.6 cars off the road for a year, or covering the annual energy usage of 24.7 homes.

We’ve cut 55% in emissions from our renewable energy initiatives and eco-friendly refrigerant management, a testament to our pledge to make logistics more sustainable.

We are proof that your eCommerce operations don’t have to choose between profit and the planet. If you’re looking for a partner in your sustainability journey, reach out to us today.

Conclusion

Ultimately, what's good for the planet is also good for business: sustainable supply chain logistics equals smaller carbon emissions and leaner, more cost-effective operations. 

Going green means growing stronger. This is your cue to reboot your sustainable practices to prioritize eco-friendliness and set your business up for steady, sustainable growth that benefits both people and the planet.

Courier vs. Postal Service

Frequently Asking Questions (FAQ)

Are sustainable supply chain practices cost-effective for eCommerce businesses?

Sustainable supply chain practices offer significant economic benefits for eCommerce businesses. By implementing green logistics solutions, companies can achieve cost savings through reduced fuel consumption and improved operational efficiencies. Optimal route planning and energy-efficient transportation modes contribute to lower logistics costs over time, while also enhancing supply chain resilience.

How can eco-friendly transportation contribute to carbon footprint reduction in logistics?

Eco-friendly transportation methods, such as electric vehicles (EVs) and hybrid fleets, significantly reduce the carbon footprint in logistics:

  • Zero Emissions: EVs produce zero tailpipe emissions, reducing greenhouse gas emissions during transport.
  • Fuel Efficiency: Hybrid fleets combine conventional engines with electric motors, optimizing fuel consumption and lowering environmental impact.
  • Long-Term Cost Savings: Lower fuel costs and maintenance expenses contribute to overall operational savings and sustainability goals.
What are some sustainable warehousing solutions that businesses can implement?

Businesses can implement various sustainable warehousing solutions to enhance environmental stewardship:

  • Renewable Energy: Use solar panels and renewable energy sources to power warehouse operations.
  • Energy-Efficient Technologies: Implement LED lighting, smart HVAC systems, and automated controls to minimize energy usage.
  • Waste Reduction: Introduce recycling programs and sustainable packaging solutions to minimize waste and promote circular economy principles.
How does eShipper ensure ethical sourcing and fair labour practices in its supply chain?

eShipper is committed to ethical sourcing and fair labour practices throughout its supply chain. We uphold stringent standards for ethical sourcing, ensuring that our partners adhere to fair trade principles and support labor rights. By fostering transparent relationships with suppliers and conducting regular audits, eShipper ensures that all stakeholders uphold ethical standards, promoting social responsibility and sustainability across our operations.

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