Discover the benefits of sustainable shipping and the innovative solutions that can set your business on the path to a greener future.
Benefits of Green Logistics
Investing in sustainable logistics strategies can help your business in many ways:
Enhance your brand’s reputation
88% of consumers will be more loyal to a company that supports social or environmental issues1. Establishing clear sustainability goals and initiatives for your business will resonate well with prospects.
Improve business’s efficiency
A sustainable logistics strategy focuses on reducing waste and optimizing processes, leading to improved efficiencies. For example, route optimization software can help cut delivery fleet mileage and fuel consumption.
Save costs
A report by McKinsey2 found a positive correlation between a company’s Green Supply Chain Management practices and its profitability. This is because green logistics increases efficiencies and reduces waste – both of which impact a business’s costs.
Green 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. This is equivalent to the annual energy use of more than 3.2 million homes.
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 green packaging processes
Getting your goods to your customers without damage should be a priority, but you should also focus on reducing waste and cutting costs. Utilizing correctly sized packaging, or even tailor-made packaging, that fits your products’ specifications saves on wasted materials and extra shipping costs.
The packaging material itself is just as important. It is well worth looking into the multitude of options you have for eco-friendly packaging so you can lower your environmental impact, including materials like recycled cardboard and compostable mailing bags.
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 chain of impact. Examples include reforestation and conservation projects and investment in renewable energy infrastructure.
Meanwhile, carbon insetting is when businesses invest in carbon reduction schemes within their own supply chains. Examples include a food and beverage company implementing regenerative agriculture practice, or a business switching to renewable energy and sustainable fuel.
Partner with a sustainable shipping carrier
In light of the Red Sea incident, around 40% of surveyed freight traders in Hong Kong transitioned from ocean to air transport in Q1 2024 to avoid shipment delays and additional costs associated with sea freight, as found in the DHL Hong Kong Air Trade Leading Index (DTI)4. This shows the importance businesses place on reliable logistics options which can mitigate supply chain disruptions. However, this is all at the cost of sustainable shipping.
DHL’s Global Online Shopper Survey 2023 shows that 64% of European consumers find sustainable deliveries important to them. As DHL remains committed to being known as the most sustainable of all leading international delivery companies, you know who to speak to for the greener final mile!
With DHL Express, you will have access to 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 encouragingly shown in the Q2 2024 results for the DTI5, a growing number of air traders in Hong Kong have now also expressed willingness to reduce carbon emissions, reaching its highest level at 77% since Q3 2023. Among these traders, over 90% are willing to allocate up to 10% of their logistical costs towards achieving this goal and actively participate in carbon reduction initiatives.
To further support this pledge to reduce global carbon emissions, DHL has several schemes to help its customers – businesses like yours – employ sustainable shipping strategies. Here are some of the options available.
Sustainable fuels with DHL GoGreen Plus
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). SAF is a biofuel that is produced from renewable sources such as used cooking oils, animal fats, residual raw materials. SAF is specifically designed to be used as a substitute for traditional jet fuel and can reduce greenhouse gas emissions by around 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. Since its launch, the service has successfully been supporting various industries in their mission to reduce their carbon footprint.
Norton Rose Fulbright, a global law firm that has adopted GoGreen Plus in Hong Kong, has been reducing its carbon emissions from time-definite international shipments across all its major overseas trade lanes by 50 percent through the use of SAF. Psyche Tai, partner and Head of Hong Kong at Norton Rose Fulbright, shared, “GoGreen Plus service is an immediate game-changer for us, offering a blend of transparency, and a clear commitment to reducing carbon emissions.”
Strawberrynet, a renowned online beauty products platform that prioritizes sustainability and customer demands for eco-friendly services, has also expressed its appreciation for the new service. “DHL’s GoGreen Plus service has been a reliable partner in this journey, helping us align our logistics with environmental values and reducing our carbon footprint via the use of Sustainable Aviation Fuel in our deliveries. This service ensures our products reach customers with less environmental impact, meeting consumers’ expectations for more sustainable personal care,” said Raymond Fong, Chief Marketing Officer of Strawberrynet Cosmetics (Services) Limited.
Andy Chiang, Senior Vice President and Managing Director, Hong Kong & Macau, DHL Express, shares, “As sustainability is now a huge business priority, we are committed to helping our customers reduce carbon emissions by using SAF, which is currently one of the most viable solutions in the aviation market. Since its launch a year ago, the GoGreen Plus service has seen very positive adoption rates, indicating a strong market demand for such a service. We are delighted that more and more companies see the value of our GoGreen Plus service.”
Electrifying road and air transport
EVs are the future of the road transportation sector and, in that area, DHL has several key achievements. It has committed to electrifying 60% of its pickup and delivery vehicles by 2030. In Hong Kong, the team has been working towards this goal by developing our green infrastructure. Our new DHL Express Hong Kong West Service Center (KWC) incorporates several sustainable features, including expandable electric vehicle (EV) charging stations to support DHL Express’ future demands of EV fleet expansion.
And it’s not just on the roads – in August 2021, the company made aviation history by ordering up to 12 fully electric “Alice” e-cargo planes from aircraft manufacturer Eviation. All of which means customers shipping domestically or internationally with DHL will have their goods transported in the most eco-friendly way possible, with emissions reduced at every mile.
Green packaging
Following research that 24% of the volume of an e-commerce package is empty space, DHL developed an AI-powered packaging solution to make shipments more cost-effective and environmentally friendly. “OptiCarton” combines sophisticated carton optimization algorithms with an on-demand approach to packaging within the distribution center to optimize the filling volume of boxes. This means DHL’s customers benefit from more eco-friendly shipments, with the added benefit of reduced transportation costs.
To access all the industry-leading sustainable shipping solutions discussed above – and many more – open a DHL Express Business Account. Choose a greener future, below.
