In an era where environmental sustainability becomes increasingly paramount, businesses are seeking ways to align their operations with decarbonization practices. Known for its vibrant trade and logistics sectors, Hong Kong is at a critical juncture where the imperative to reduce carbon footprint and adopt sustainable business practices has never been more urgent. In this blog, we will delve into the environmental impact of logistics and the importance of adopting sustainable practices for businesses in Hong Kong and beyond, as well as explore how logistics partners such as DHL Express help achieve this green transition.
The environmental footprint of logistics in Hong Kong
The logistics sector, integral to the global trade framework, plays a pivotal role in Hong Kong's economic dynamism — facilitating international trade and connecting the world with the markets of China and Asia. However, the logistics industry is also a considerable contributor to carbon emissions. Given Hong Kong's strategic importance as a hub for international shipping services, the region’s environmental footprint, especially within logistics, demands urgent attention.
The reliance on fossil fuels for transport, a cornerstone of logistics operations, positions the sector prominently in the narrative of environmental impact. In Hong Kong, where the logistics and transport sector is the second-largest emitter - accounting for 18.7% of the total greenhouse gas emissions, the call for a shift towards more sustainable practices is not just imperative but urgent. This statistic underscores the significant role of the logistics sector in contributing to the region’s carbon footprint, catalysing a necessary transition towards green logistics solutions. Embracing environmentally friendly logistics models becomes a strategic move for business efficiency, sustainability, and a critical step in mitigating the adverse effects of logistics operations on the environment.
Understanding Insetting vs. Offsetting
Two pivotal strategies emerge in this quest for carbon reduction: insetting and offsetting. Both approaches offer distinct pathways for companies to manage their carbon emissions and contribute towards the global goal of achieving net-zero carbon emissions.
Insetting involves integrating carbon reduction measures directly within a company's operations or supply chain. For logistics and shipping companies, this could mean adopting sustainable practices such as transitioning to electric or low-emission vehicles, or implementing energy-efficient operations in warehouses and distribution centres. By focusing on insetting, companies can reduce their carbon footprint and realise operational efficiencies and cost savings. This method reflects a commitment to sustainability by embedding it into the core business practices and transforming the industry from within.
Offsetting, on the other hand, allows companies to invest in external environmental projects to compensate for the emissions they cannot eliminate. These projects can range from reforestation and conservation efforts to renewable energy initiatives that contribute to a reduction in greenhouse gases elsewhere in the environment. While offsetting does not reduce a company's direct emissions, it plays a crucial role in funding critical environmental projects and promoting global carbon reduction efforts. For the logistics and shipping sector, offsetting can be a strategy to achieve carbon neutrality, particularly for emissions that are currently challenging to eliminate due to technological and operational constraints.
Together, insetting and offsetting provide a comprehensive approach to carbon management, enabling companies to take responsibility for their environmental impact while contributing to broader efforts to combat climate change.
The business benefits of sustainable shipping practices
The transition towards more sustainable shipping practices represents not only an environmental imperative but also a strategic business decision. According to McKinsey & Co., 66% of all consumers and 75% of millennials take a company's sustainability efforts into account when making purchases, highlighting the significant consumer demand for brands that align with their environmental values. Additionally, the regulatory landscape is increasingly supportive of businesses that demonstrate a strong commitment to environmental stewardship. In Hong Kong, for example, the government has implemented measures to foster environmental responsibility within the logistics sector. These measures include the development of eco-friendly infrastructure, incentives for using electric vehicles, and the promotion of energy-efficient operations — all aimed at reducing carbon emissions, minimising environmental impact, and boosting the sustainability of the logistics industry. Therefore, adopting sustainable logistics and shipping practices that champion these values can greatly enhance a brand's image, foster customer loyalty, and improve regulatory compliance.
GoGreen Plus: DHL's answer to low-emission shipping
DHL Express' GoGreen Plus stands out as a tailored solution for Hong Kong's environmental and logistic demands. It is a direct pathway for businesses in the region to significantly reduce their shipping emissions, aligning with both consumer expectations and regulatory standards. Importantly, it addresses Scope 3 emissions, aiding companies in managing the indirect emissions arising from their value chain activities.
GoGreen Plus capitalises on the use of sustainable aviation fuel (SAF) to offer about 80% reduction in carbon emissions from shipments. This initiative is seamlessly integrated into the MyDHL+ platform, enabling easy adoption for businesses of all sizes aiming for sustainability without sacrificing service quality.
This service is not just about meeting emission targets; it's about offering Hong Kong businesses a practical tool to contribute to global sustainability efforts, enhancing brand reputation, and responding to the growing demand for environmental responsibility, making low-emission shipping accessible and advantageous.
