What is Sustainable Shipping & What Are Its Benefits?

Discover the benefits of sustainable shipping and the innovative solutions that can set your business on the path to a greener future.

When it comes to your logistics operations, sustainability should be more than just a buzzword. Sustainable logistics is all about reducing the environmental impact of your supply chains. Whether it's by adopting sustainable packaging, optimizing transportation routes or investing in alternative fuels, you have the power to make a difference. 

This guide will walk you through the benefits of sustainable shipping and how – with the help of DHL – you can lead your business into a sustainable future. From carbon offsetting to electric vehicles, it will give you the insights you need to take your logistics operations to the next level. 

Benefits of Sustainable Logistics

Without a doubt, the most important industry trend at the moment is sustainable logistics. And for good reason. Investing in a sustainable logistics strategy can help your business in many different ways…

Enhance your brand’s reputation

Consumers are increasingly concerned with sustainability, and are drawn to brands that align with their values. In fact, 88% of consumers will be more loyal to a company that supports social or environmental issues¹. Establishing clear sustainability goals for your business – and being transparent about them on your website – will resonate well with prospects.  

Improve your business’s efficiency

A sustainable logistics strategy focuses on reducing waste and optimizing processes – which means your output will be more efficient. For example, by adopting route optimization software, you can cut down the time your delivery fleet spends on the road. This means no excess mileage and lower fuel consumption – reducing both emissions and costs.

Save money 

Yes, some sustainable logistics strategies require upfront investment, but the long-term savings can be huge. McKinsey² found that campanies adopting low-emission Supply Chain Management practices  – like reducing greenhouse emissions, recycling, cutting waste, and using renewable energy – see a positive impact on their bottom line. Why? Because susatinable logistics means greater efficiency and less waste, – both of which lower your costs. 

Mitigate risk and ensure compliance 

As sustainability regulations become stricter, it’s more important than ever for your business to stay compliant. By adopting a sustainable logistics strategy, you can protect your brand from reputational damage and avoid costly financial penalties – all while making a positive impact.  

Regulations like the EU Emissions Trading System are designed to reward businesses that actively reduce their carbon footprint. By getting ahead of these changes now, you’re not just ensuring compliance; you're positioning yourselves as a business that values both the environment and long-term success. 

Sustainable Shipping Options

With the continued rise of retail-related deliveries and returns, carbon emissions from e-commerce logistics are forecast to hit around 25 million metric tonnes by 2030, according to Statista³.

But still, there are steps your business can take to minimize its negative impact on the environment. And if every company takes these steps, it could make quite a difference to that rather depressing prediction.

Evaluate your packaging processes

Getting your goods to your customers without damage should be a priority, but so should be reducing “empty” space. Products shipped to customers in excessively large boxes is a waste of materials, not to mention the extra shipping costs incurred.

Instead, ensure your items are packed in correctly sized boxes, or design the packaging yourself according to your products’ unique specifications. You can also highlight to your customers that you’ve cut back on packaging – for example, a sticker with “Now with 10% less packaging” on the box will reflect well on your brand. And while we’re on the subject, there are many other ways you can use packaging as a marketing opportunity.

The material you select for packaging is just as important as ensuring it’s an appropriate size. Compostable mailing bags, recycled cardboard, mushroom-based containers…there are all sorts of weird and wonderful innovations out there that are less detrimental to the planet than plastic. So it’s well worth looking into the multitude of options you have for sustainable packaging alternatives.

Take steps towards carbon offsetting and insetting

Every business has a carbon footprint, which is the total amount of greenhouse gases emitted directly or indirectly by its activities. Carbon offsetting involves “balancing out” these emissions by funding carbon reduction projects outside the sector of impact. Examples include reforestation and conservation projects, investment in renewable energy infrastructure, and providing clean water to disadvantaged communities.  

Meanwhile, carbon insetting is when businesses invest in carbon reduction schemes within their own supply chains. Examples include a clothing manufacturer planting trees outside its factory, a restaurant growing its own vegetables (to reduce the emissions of the supplier delivering them), or a business switching to sustainable fuel (which we discuss later in this article.)

You can learn more about other important sustainability trends in logistics here.

Offer sustainable returns

It’s estimated that up to 30% of all products ordered online are returned to the sender⁴. That’s a big hit for your business’s profits. For ways to reduce that hit, and still offer your customers excellent service, make sure you check out our piece on returns management best practices.

Aside from the financial impact to your business, the extra shipping emissions caused by customer returns are bad news for the environment too. But there is a way to make the process more sustainable.

Reverse logistics promotes the recycling, repurposing, repairing and resale of products, with the aim of extending their lifecycle. It means less goods end up in landfill, and, with 67% of consumers checking an online retailer’s return policy before committing to a purchase⁵, it could win you some valuable extra sales. 

Partner with a sustainable shipping carrier

In DHL’s Global Online Shopper Survey 2023, 64% of European consumers said sustainable deliveries are important to them, whilst DHL is seen as the most sustainable of all the leading international delivery companies. So, for a more sustainable final mile, you know who to speak to!

With DHL Express, you’ll have access to a dedicated insetting solutions (which you can read more about below). Offering your customers such delivery options at checkout will reflect well on your brand and drive loyalty.

Shipping with DHL: Your sustainable strategy

It’s no secret that the transport and logistics industry is a large contributor to global emissions. So, in 2017, DHL became the first logistics company in the world to set a target of reducing its greenhouse gas emissions to net zero by 2050. As part of this commitment, it has several schemes to help its customers – businesses like yours – employ sustainable shipping strategies. Here are some of the options available.

Alternative fuels with DHL GoGreen Plus

In 2023, DHL Express launched GoGreen Plus, a dedicated solution to help businesses reduce ("inset") the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel. SAF is a biofuel that is produced from renewable sources such as vegetable oils, animal fats, waste products, and agricultural crops. SAF is specifically designed to be used as a substitute for traditional jet fuel and can reduce greenhouse gas emissions by up to 80% compared to fossil fuels. The service can be selected for individual shipments, making it a flexible option for SMEs and e-commerce businesses with smaller cargo loads.

Electric vehicles

In the world of logistics, DHL​ Express​ is leading the way in the use of electric vehicles. They’ve committed to rolling out 80,000 EVs for last-mile deliveries by 2030, which means 60% of their fleet will be electric by that point. So when you ship domestically or internationally with DHL, you can feel good knowing your goods are being transported in the most eco-friendly way possible, with reduced emissions every step of the way.