As the concern for climate change increases, many countries are taking initiatives to promote sustainability and achieve net zero emissions by 2050. As per the National Academies of Sciences, Engineering, and Medicine, for countries to meet these emission targets, a dramatic reduction of global carbon emissions combined with active carbon removal from the atmosphere will be required.
In the Philippines’ Nationally Determined Contributions Registry for the United Nations Climate Change, the country has committed to avoiding greenhouse gases by 75% from 2020 to 2030. It has specifically worked to lower carbon emissions in various sectors, including agriculture, waste, industry, transport, and energy. As such, for Filipino businesses, integrating sustainability into business strategies is not just about creating a positive brand image but also contributing to the country’s effort to achieve its decarbonization goals.
One of the ways businesses can reduce their carbon footprint is through sustainable logistics solutions.
The role of logistics in environmental impact
As per Lockton, the logistics sector plays a pivotal role in the Philippine economy, with a compound annual growth rate (CAGR) of 7.3%. This is due to its expanding e-commerce, growing trade activities, and rising consumer demand, among others. However, with its rise comes the growing concern of increasing carbon emissions. In fact, according to Statista, most of the Philippines’ carbon emissions are from the transportation sector, which amounted to 35.42 million tons of carbon dioxide (CO2).
Given the extensive role of transportation in logistics and supply chain operations, the imperative for eco-friendly solutions is more critical than ever. DHL Express acknowledges the importance of offering Filipino businesses sustainable logistics and supply chain management services, highlighting its commitment to environmental protection and CO2 reduction.
DHL’s GoGreen Plus in the Philippines
Our GoGreen Plus service aims to enhance their environmental stewardship through sustainable logistics, enabling the reduction of CO2 emissions within your supply chain. This green logistics initiative utilizes Sustainable Aviation Fuel (SAF), offering a significant benefit to our planet and aiding in your CO2 emissions reporting. This service results from DHL's strategic partnerships with BP and Neste, which supply DHL Express with SAF and are poised to cut down around two million tons of carbon emissions across the aviation fuel cycle.
Moreover, we electrify 60% of our last-mile delivery vehicles and increase the share of sustainable fuels in line haul to more than 30% by 2030. Our GoGreen Plus service now extends to customers shipping Time-Definite International (TDI) parcels, allowing for up to 100% insetting of your carbon emissions on air transport.
Understanding carbon insetting vs. offsetting
When companies develop Green House Gas (GHG) solutions, two common strategies they turn to are carbon insetting or offsetting. Insetting involves changing your company's supply chain to reduce your carbon footprint. On the other hand, offsetting refers to compensating for emissions or aiming for carbon neutrality by investing in environmental projects.
With DHL GoGreen Plus, companies are insetting, which means they are taking the initiative to reduce their Scope 3 emissions, also known as indirect greenhouse gas emissions within the value chain. This approach offers a direct and impactful means of tracking emissions reduction progress. It's suitable for the voluntary emission reporting of DHL customers and aligns with the Science Based Targets Initiative (SBTi) principles.
GoGreen Plus can be chosen for specific shipments, providing a versatile solution for SMEs and e-commerce companies in the Philippines dealing with smaller volumes of cargo.
Why businesses should take part in DHL Express’s sustainability efforts
Engaging in sustainable shipping practices through DHL Express' GoGreen Plus service represents a critical step forward for businesses aiming to contribute positively to environmental protection. This initiative not only plays a pivotal role in safeguarding the planet but also resonates with the evolving preferences of modern consumers. The current market landscape shows a clear trend: customers are gravitating toward companies that proactively adopt sustainability measures. This shift in consumer behavior shows that integrating green logistics and supply chain management into business operations is important.
1. Meeting consumer demand for sustainability
Consumers nowadays are more informed and conscious about the environmental impact of their purchases than ever before. As they have become more aware, it has resulted in the increased demand for products and services from businesses that prioritize eco-friendly practices. By partnering with DHL Express and utilizing the GoGreen Plus service, businesses can directly address this demand. Showcasing a commitment to sustainability through these practices can help attract a broader customer base that values environmental responsibility, thereby driving growth and fostering customer loyalty.
2. Enhancing brand reputation and market position
A commitment to sustainability can significantly enhance a company's brand reputation. Consumers, investors, and other stakeholders increasingly recognize and reward businesses that take genuine action toward environmental conservation. By adopting DHL Express's sustainable international shipping solutions, your business not only demonstrates a commitment to a crucial global cause but also differentiate themselves in a competitive market. This can lead to increased brand loyalty, attracting customers who want to associate with socially responsible companies.
3. Future-proofing the business
As the societal push towards sustainability grows stronger, adopting sustainable practices is a way to future-proof a business. Engaging in DHL Express’s sustainability efforts allows your business to stay ahead of regulatory changes, reduce potential compliance risks, and seize the opportunity to lead in green initiatives within your industry.
Partner with DHL Express for sustainable logistics and supply chain management
Reducing the carbon footprint in the logistics and supply chain management sector is imperative for safeguarding our planet for future generations. DHL Express' GoGreen Plus service presents a golden opportunity for businesses in the Philippines to contribute to this global mission. By choosing sustainable logistics and supply chain solutions, your business can play a role in achieving net-zero emissions by 2050, proving that sustainability and success can indeed go hand in hand.
Start shipping globally by opening a business account with us today. For more sustainable logistics tips, check out our guide on how to reduce wastage along the supply chain and why green packaging is important to your business.
