Sustainability in logistics and frequently asked questions

These are some of the frequently asked questions. Why is sustainability in logistics this important? What’s the difference between carbon insetting and offsetting? Does low-emissions delivery really exist?

We hear a lot of these questions from our customers at DHL Express as they look for a more sustainable roadmap for their operations. We are willing to guide them towards low-emissions logistics solutions, no matter what size of business.

Hear from our DHL Express’ sustainability experts – Michiel Greeven, EVP Global Commercial; Noelle Froehlich, Senior Expert, Clean Operations; and Bettina Paschke, VP ESG Accounting, Reporting & Controlling – discussing sustainable logistics strategies that can help businesses reach their sustainability goals quicker.

What are important elements of sustainable logistics?

The European Environment Agency predicts that logistics will account for up to 40% of global carbon dioxide emissions by 2050 unless effective measures are taken¹. Businesses of all sizes are starting to consider their own contribution to the carbon emissions statistic, and what changes they can make to reduce their carbon footprint.

Implementing low-emissions strategies can help your business reduce waste and inefficiencies – leading to cost savings. Plus, a survey by McKinsey² found that 66% of consumers consider sustainability when they buy things. It means that your business’s environmental policies could help attract more customers.

What are the differences between carbon offsetting and carbon insetting?

The terms “carbon offsetting” and “carbon insetting” may sound similar but they are not the same.

Carbon offsetting is about calculating the emissions the business produces and then investing in external programs to compensate the footprint – such as a nature conservation or tree planting project.

On the other hand, carbon insetting focuses on direct improvements within the business supply chain; making changes at the source, as it were. For example, switching from fossil fuels to renewable fuels, or improving energy efficiency within manufacturing processes.

Many sources say that insetting is more impactful than offsetting as it’s the only way companies can truly reduce their emissions. As the World Economic Forum states, “The battle with soaring temperatures will not be won until organizations start decarbonizing their own value chains to include more nature-positive solutions and operations.”³ Any business serious about reducing their carbon emissions should be evaluating their supply chain operations to identify where the majority are embedded, and then set targets to reduce their output.

How can I make my logistics sustainable?

Customers expect super fast deliveries. It's no wonder why carbon emissions from e-commerce logistics are expected to reach 25 million metric tons of CO₂ by 2030⁴.

Businesses can help to push back by prioritizing sustainable delivery solutions. 

• Switch to sustainable fuels. DHL Express’ GoGreen Plus is a dedicated solution to help businesses reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel (SAF) – a sustainable fuel that is produced from renewable materials including vegetable oils and animal fats. SAF can reduce greenhouse gas emissions by around 80% compared to fossil fuels.  
  
• Reduce failed delivery rate with DHL Express' On-Demand Delivery (ODD). Every re-delivery attempt costs your business money and increases its transportation emissions. But with ODD, your customers will be able to choose from a wide range of flexible delivery options – including choosing a specific delivery time (when they know they will be home instead of couriers reaching home where no one is around), or opting to have the package left with a neighbor or at a parcel locker. This means that whilst your customers enjoy a convenient experience, your business will increase its first-time delivery rate which will reduce its emissions. 
• Optimize last-mile deliveries with AI. If you’re making several deliveries to customers a day, with your own fleet of vehicles route planning software can help you plan the most efficient sequence, taking in factors such as distance, real-time traffic, vehicle capacity, and delivery time windows. Goods go to customers faster, and your business reduces its fuel consumption. In case you do not operate your own fleet of delivery vehicles, choose a logistics partner, for example, DHL Express, which makes use of this technology.
  

 What are the “Four As” of sustainable logistics?

Take four As as your guide for sustainable logistics. They are Availability, Affordability, Acceptability and Adaptability. Let them guide your business as you plan and allocate resources to new sustainable practices:

What are the first steps to becoming more sustainable?

For SMEs with limited resources, implementing a low-emissions logistics strategy doesn’t have to be complex. There are several low-cost, immediate changes your business can make to become more sustainable:

• Reduce your energy consumption. Turn off lights, computers and machinery when not in use. A utilities management system can help you track and reduce your usage.
  
• Look for suppliers that have dedicated sustainability certifications – such as Fairtrade International.
  
• Install recycling stations around your office and within your warehouse.
  
• Educate your staff. Make “reduce, reuse, recycle” your workplace mantra.
  
• Switch to sustainable packaging. Prioritize recyclable, reusable and biodegradable materials.
  
• Invite feedback from customers about changes they’d like to see from your brand.
  
• Choose a sustainable logistics partner. DHL Express has a range of dedicated delivery solutions to help SMEs reduce their carbon emissions. Our experts will assess your business’s unique needs and suggest the right solution – without compromising on speed or service.