Thailand reduces scope 3 emissions using DHL GoGreen Plus

In efforts to minimize environmental impact, tackling Greenhouse Gas (GHG) emissions is a key focus. GHG emissions are divided into three categories:

Scope 1 emissions: These are direct GHG emissions from sources that are owned or controlled.
Scope 2 emissions: This category includes indirect GHG emissions resulting from the production of purchased electricity, steam, heating, and cooling.
Scope 3 emissions: This encompasses all other indirect GHG emissions that occur throughout a company's value chain.

According to PwC, Scope 3 emissions represent the largest share of a company's carbon footprint, ranging from 65% to 95%. To assist businesses in lowering their Scope 3 emissions and minimizing their environmental impact, DHL Express offers GoGreen Plus, a solution that promotes carbon insetting by choosing Sustainable Aviation Fuel (SAF) for shipments.

This article examines the important role of Scope 3 emissions within the logistics supply chain in the Asia-Pacific (APAC) region and how DHL GoGreen Plus assists businesses in effectively managing and reducing these emissions. Based on insights from our whitepaper, Sustainability in Motion: Understanding Carbon Footprint in Logistics and Supply Chains Across Asia-Pacific Regions, we explore the challenges and opportunities associated with decreasing Scope 3 carbon emissions in the APAC logistics industry.

The whitepaper offers a comprehensive examination of the different factors contributing to Scope 3 emissions, along with practical recommendations for businesses and real-life case studies showcasing effective carbon insetting strategies using Sustainable Aviation Fuel (SAF). By utilizing these insights, companies can implement actionable measures to reach their sustainability objectives and make meaningful progress in reducing their Scope 3 emissions.

Grasping the significance of Scope 3 emissions in the APAC logistics industry

Scope 3 emissions refer to indirect emissions that take place across a company's value chain. The Greenhouse Gas Protocol categorizes Scope 3 emissions into 15 distinct 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 serves as a crucial component in many of these categories, especially in transportation and distribution, the manufacturing of goods, the usage of sold products, and the end-of-life management of those products. Considering ways to reduce Scope 3 emissions, the logistics sector presents an excellent starting point due to its vast networks and large-scale operations.

The APAC region is essential to the global logistics and supply chain market, significantly impacting the sector's overall carbon footprint. According to Modor Intelligence, the APAC logistics market is projected to grow at a compound annual growth rate (CAGR) of 5.24% from 2023 to 2029, potentially reaching US$4.56 trillion by 2029.

Within the logistics sectors in APAC, the primary contributors to Scope 3 emissions are:

Manufacturing

The region hosts some of the largest manufacturing centers globally. The processes of producing, assembling, and transporting goods between these hubs and to other parts of the world significantly contribute to Scope 3 emissions, largely due to the energy-intensive nature of these activities.

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 dependence on air travel for quick deliveries leads to substantial emissions from aircraft fuel usage. Although the sector is dedicated to reaching net zero emissions by 2050, it encounters considerable obstacles in minimizing its carbon footprint, primarily due to the gradual progress in the development and implementation of sustainable aviation fuel (SAF) and advanced 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

The APAC region is vital to international seaborne trade, yet the sector grapples with complexities surrounding accountability for sustainable shipping practices, as it involves various stakeholders, including ship owners, ports, and the energy production industry.

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 expected to surge by 46.98% from 2024 to 2029, reaching 2.18 billion users, making it a major contributor to Scope 3 emissions in the future. This rapid expansion in e-commerce leads to a higher demand for transportation, distribution, and associated logistics services, thereby increasing 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 program is designed to assist APAC businesses in managing and reducing their Scope 3 emissions by facilitating the adoption of sustainable aviation fuel (SAF) for shipments. By utilizing SAF, companies can engage in carbon insetting, leading to direct emission reductions within their supply chain that are closely tied to their operations. 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 provides flexible carbon reduction targets, enabling businesses to select reduction levels that align with their sustainability objectives.

Customizable Carbon Reduction Options: Companies can choose from carbon reduction targets of 10%, 20%, 30%, 50%, or even 70%.

Streamlined Pricing Plans: These plans are aligned with the chosen carbon reduction level, simplifying the integration of sustainability into logistics operations.

Furthermore, DHL GoGreen Plus makes it easier for APAC businesses to track and monitor their carbon footprint. At the end of the year, a carbon reporting dashboard with detailed, audited reports will indicate the exact amount of greenhouse gas (GHG) emissions reduced through the use of SAF, helping companies comply with regulations and bolster their green marketing initiatives.

How companies in Asia-Pacific have leveraged DHL GoGreen Plus to lower 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.

Lower your Scope 3 emissions with DHL GoGreen Plus

Tackling Greenhouse Gas emissions is essential for businesses in APAC to meet their corporate sustainability objectives and promote sustainable growth in the region. Given that Scope 3 emissions represent a substantial part of a company's carbon footprint, DHL GoGreen Plus offers an effective solution by facilitating the straightforward adoption of sustainable aviation fuel (SAF), allowing businesses to engage in 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:
1. 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.
2. Customised Offer: For companies with specific shipping requirements and profiles, this option provides a customized CO₂emissions reduction plan with adaptable carbon reduction targets.

By enrolling in DHL GoGreen Plus, businesses can enjoy advantages such as lowered emissions, adherence to regulations, and enhanced 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 find out more about how DHL Express can assist your business in reaching its sustainability objectives, we invite you to download our Sustainability in Motion whitepaper, which offers in-depth insights and strategies for making your logistics operations more sustainable and efficient.