When it comes to reducing environmental impact, addressing Greenhouse Gas (GHG) emissions is always a priority concern. Greenhouse gas (GHG) emissions are categorised into three scopes:
- Scope 1 emissions: Covers direct greenhouse gas (GHG) emissions from owned or controlled sources
- Scope 2 emissions: Includes indirect greenhouse gas (GHG) emissions from the generation of purchased electricity, steam, heating, and cooling
- Scope 3 emissions: Encompasses all other indirect greenhouse gas (GHG) emissions that occur in a company’s value chain.
Among these, Scope 3 emissions account for the largest portion of a company’s carbon footprint, between 65% to 95%, according to PwC. GoGreen Plus is DHL Express' solution to help businesses reduce their Scope 3 emissions and environmental impact via carbon insetting, done by opting to use Sustainable Aviation Fuel (SAF) for their shipments.
This article explores the critical role of Scope 3 emissions in the Asia-Pacific (APAC) logistics supply chain and how DHL GoGreen Plus helps businesses manage and reduce these emissions effectively. Drawing insights from our whitepaper, Sustainability in Motion: Understanding Carbon Footprint in Logistics and Supply Chains Across Asia-Pacific Regions, we dive into the challenges and opportunities for reducing Scope 3 carbon emissions in the APAC logistics sector.
The whitepaper provides an in-depth analysis of the various contributors to Scope 3 emissions, practical recommendations for businesses, and real-world case studies demonstrating successful carbon insetting strategies through the adoption of Sustainable Aviation Fuel (SAF). By leveraging these insights, businesses can take actionable steps toward achieving their sustainability goals and making a tangible effort towards reducing their Scope 3 emissions.
Understanding the impact of Scope 3 emissions in the APAC logistics sector
Scope 3 emissions are defined as indirect emissions that occur throughout a company's value chain. According to Greenhouse Gas Protocol, Scope 3 emissions can be broken down into 15 categories:
- Purchased goods and services
- Capital goods
- Fuel and energy related activities not included in scope 1 or 2
- Upstream transportation and distribution
- Waste generated in operations
- Business travel
- Employee commuting
- Upstream leased assets
- Downsteam transportation and distribution
- Processing of sold products
- Use of sold products
- End-of-life treatment of sold products
- Downstream leased assets
- Franchise
- Investments
Logistics is a major link in many of these categories, particularly in transportation and distribution, manufacturing of goods, use of sold products, and end-of-life treatment of sold products. When we think of how to reduce Scope 3 emissions, the logistics sector is an ideal starting point due to its extensive networks and large-scale operations.
The APAC region plays a pivotal role in the global logistics and supply chain market, contributing to the sector's overall carbon footprint. Modor Intelligence estimates the APAC logistics marketing to grow at a CAGR of 5.24% from 2023 to 2029, reaching US$4.56 trillion by 2029.
Among the logistics sectors in APAC, the biggest generators of Scope 3 emissions are:
Manufacturing
APAC is home to some of the world’s largest manufacturing hubs. The production, assembly and transportation of goods between these hubs and to the rest of the world contribute significantly to Scope 3 emissions due to the energy-intensive processes involved.
From the Whitepaper:
“APAC’s manufacturing sector, particularly in China, is a major contributor to logistics emissions. The production process itself, often reliant on energy from fossil fuels, significantly contributes to greenhouse gas emissions. Additionally, the transportation of manufactured goods adds to the environmental impact.”
Air freight
The reliance on aviation for fast delivery results in high emissions from airplane fuel consumption. Despite the sector's commitment to achieving net zero emissions by 2050, it faces significant challenges in reducing its carbon footprint, mainly due to the slow development and adoption of sustainable aviation fuel (SAF) and newer technologies.
From the Whitepaper:
“Major airports in APAC, like Hong Kong International Airport, Shanghai-Pudong Airport, Incheon International Airport, Taiwan Taoyuan International Airport, and Tokyo Narita International Airport play a substantial role in these emissions due to the high volume of cargo they handle. ”
Maritime shipping
APAC plays a crucial role in global seaborne trade, but the sector faces complexity regarding who is responsible for sustainable shipping practices with multiple stakeholders such as ship owners, ports, and the energy-producing industry all involved.
From the Whitepaper:
“The maritime sector faces challenges in decarbonisation, with most of the fleet still running on fossil fuels. Only a small fraction of vessels are currently using or are on order to use cleaner alternatives like liquefied natural gas, methanol, and hybrid technologies ”
E-commerce
The number of e-commerce users in Asia is projected to skyrocket by 46.98% between 2024 and 2029, reaching 2.18 billion users, positioning it to be a significant driver of Scope 3 emissions in the future. The rapid growth in e-commerce means increased demand for transportation, distribution, and related logistics services, which, in turn, amplifies the environmental impact.
From the Whitepaper:
“As the e-commerce sector in APAC experiences rapid growth due to rising demand for a direct-to-consumer logistics model, it necessitates new infrastructure for logistics and supply chain services. This model often involves multiple stages of warehousing and transportation, each contributing to the overall carbon footprint.”
The DHL GoGreen Plus programme is designed to help APAC businesses manage and reduce their Scope 3 emissions by making it easy to adopt the use of sustainable aviation fuel (SAF) for shipments. By using SAF, businesses can practice carbon insetting and reduce emissions directly within their supply chain for tangible emission reductions directly linked to the company’s activities. This not only supports regulatory compliance, but also meets the increasing consumer demand for sustainable practices — a critical factor for businesses looking to enhance their green credentials.
DHL GoGreen Plus also offers flexible carbon reduction goals, allowing businesses to choose the level of reduction that aligns with their sustainability targets.
Customisable Carbon Reduction Options: Businesses can select from 10%, 20%, 30%, 50% or even 70% carbon reduction targets.
Simplified Pricing Plans: These plans correspond to the selected carbon reduction level, making it easy to integrate sustainability into logistics operations.
Additionally, DHL GoGreen Plus also simplifies the process for APAC businesses to track and monitor their carbon footprint. A carbon reporting dashboard at the end of the year with detailed, audited reports show exactly how much greenhouse gas (GHG) emissions have been reduced by using SAF, making it easier for companies to comply with regulations and enhance their green marketing efforts.
How businesses across Asia-Pacific have used DHL GoGreen Plus to reduce their Scope 3 emissions
Yeonho Electronics
Country: South Korea
Industry: Electronics manufacturing
Yeonho Electronics met the sustainability expectations of major clients like Samsung, LG, and Hyundai while maintaining operational and cost efficiency. By subscribing to DHL GoGreen Plus programme, Yeonho achieved significant reductions in carbon emissions, solidifying its status as a preferred vendor and complying with sustainability requirements in the competitive electronics manufacturing sector.
Megagen Implant
Country: South Korea
Industry: Dental implants
Megagen Implant, a leader in Korea's dental implant market, aimed to reduce its environmental impact without disrupting operations or increasing costs. By transitioning to eco-friendly packaging, digitalizing operations, and partnering with DHL Express GoGreen Plus programme, Megagen bolstered its global market reputation and met its ESG goals.
SCREEN Semiconductor Solutions
Country: Japan
Industry: Semiconductor manufacturing
SCREEN Semiconductor Solutions set science-based emission reduction standards but faced challenges in reducing its Scope 3 emissions, especially with increased sales volume post-COVID-19. DHL GoGreen Plus and its carbon insetting approach helped bridge gaps in SCREEN’s sustainability strategy, resulting in visible drops in emissions per shipment and comprehensive monitoring of carbon emissions throughout the shipping journey.
Sato Seni
Country: Japan
Industry: Apparel manufacturing
Sato Seni, a Japanese apparel manufacturer with a global customer base, frequently exports large, bulky shipments internationally while striving to minimise environmental impact. By adopting DHL GoGreen Plus and using SAF, Sato Seni balanced efficiency with corporate sustainability, reducing their carbon footprint during air transportation while maintaining optimal delivery and fulfillment speed, satisfying both internal and external stakeholders.
Kasikornbank Public
Country: Thailand
Industry: Banking
Kasikornbank aims to operate sustainably by reducing its services' carbon footprint while engaging its business customers in sustainability efforts without additional costs. Partnering with DHL Express’ GoGreen Plus, the bank became the first to offer customers the option to dispatch their shipping documents internationally using SAF at no extra charge, helping both the bank and its customers contribute towards reducing their carbon footprint.
The Board Factory
Country: Thailand
Industry: Surfboard manufacturing
The Board Factory, a surfboard manufacturer in Thailand, aligns its production practices with environmental best practices but needed an effective method to track and communicate its environmental efforts. Through DHL Express' GoGreen Plus, The Board Factory found a way to measure and report on its Scope 3 carbon emissions and savings, validating its sustainability claims with data and supporting its practices of on-demand production, material reuse, and recycling, demonstrating its commitment to reducing environmental impact.
Standard Chartered
Country: Singapore
Industry: Banking
As one of the world’s leading cross-border banks, Standard Chartered has a unique perspective on the challenges and opportunities clients face in the shift towards sustainability. The bank's global partnership with DHL Express' GoGreen Plus allows them to reduce carbon emissions while ensuring seamless delivery of crucial trade and shipping documents. By co-investing in sustainable aviation fuel (SAF), they aim to reduce aviation fuel lifecycle emissions by up to 80%, balancing CO₂ emissions linked to the bank’s upstream logistics with high-quality Verified Emission Reductions (VER) carbon credits and scaling the use of SAF within DHL's network.
Reduce your Scope 3 emissions with DHL GoGreen Plus
Addressing Greenhouse Gas emissions is crucial for businesses in APAC to achieve their corporate sustainability goals and ensure sustainable growth for the region. With Scope 3 emissions accounting for a significant portion of a company's carbon footprint, DHL GoGreen Plus provides an effective solution by enabling the easy adoption of sustainable aviation fuel (SAF) for businesses to practise carbon insetting.
Businesses can opt to use DHL GoGreen Plus in two ways:
- Select the SAF option when booking a shipment on MyDHL+
- Sign a contract to use DHL GoGreen Plus with the following options:
- Basic Contract: This plan allows businesses to choose from four levels of CO2 emissions reduction: Bronze (10%), Silver (30%), Gold (50%), or Platinum (70%), depending on their specific needs.
- Customised Offer: For businesses with unique shipping profiles and needs, this option allows for a more tailored CO2 emissions reduction plan, offering flexible carbon reduction targets.
By signing up for DHL GoGreen Plus, businesses can reap the benefits of reduced emissions, regulatory compliance, and improved brand reputation.
Join over 40,000 customers who have already embraced sustainability with DHL GoGreen Plus, and take the next step towards a more sustainable logistics for your business.
To learn more about how DHL Express can help your business achieve its sustainability goals, we encourage you to download our Sustainability in Motion Whitepaper to discover detailed insights and strategies to make your logistics operations more sustainable and efficient.
Download the Sustainability in Motion Whitepaper
Understanding carbon footprints in logistics and supply chains across Asia-Pacific regions
