Climate change is an environmental phenomenon that negatively impacts our planet. Everyday natural greenhouse gases are being produced but the increased levels of these greenhouse gases by human activity are the cause of Earth’s degradation. The logistics industry is unfortunately a contributor to increased levels of greenhouse gases and specifically carbon dioxide (CO2).
Now you may be wondering how do the logistics and supply chain industries negatively impact the environment? Well inbound and outbound logistics movements produce a considerable amount of CO2. These movements include fuel used for domestic, air, sea freight, and the electricity generated from offices and warehouses.
Currently, in Australia transport is the second largest contributor to greenhouse gas emissions. A 2019 report from the National Greenhouse Gas Inventory showed that the transport sector released about 102 million tonnes of CO2.
Transport includes shipping, aviation, trucks, cars and rail which are directing burning fuel. Fun Fact, 11% of global carbon emissions stem from freight transport.
Sustainable and actionable solutions for a Logistics business
There are various Logistics companies which are utilising sustainable practices to strive towards being a zero-emissions industry. What steps can they take to achieve this? Let’s explore.
Green Transport
Trade is a fast-growing business especially in emerging markets. In 2018, Seaborne trade in developing economies rose to 64%. Now that’s a lot of cargo being shipped from different regions, with Asia being the largest trade region. Overall, international maritime shipping accounts for about 2-3% of the world’s total annual greenhouse gas emissions. This is an example of a transport method that should become sustainable to combat the elevated CO2 emissions.
The Norwegian company, YARA International created the world’s first zero-emission, autonomous cargo ship. This is a hydroelectric-based zero-emission fueled ship designed to reduce emissions and move cargo from the road to the sea. The vessel is known as YARA Birkland and is set to make its first journey at the end of 2021.
Whilst having a zero-emission, autonomous cargo ship is ideal it’s not a feasible solution for every logistic company, so the next best thing is to invest into electric vehicles for domestic shipping. DHL is a logistics company that is striving towards having net-zero emissions by 2050. Whilst the company already utilises e-vehicles they have a goal to have more than 80,000 e-vehicles on the road by 2030.
Green Warehouses
Warehouses are also a contributor to CO2 emissions mainly through lighting and heating which is powered by generators that release carbon emissions. Some great ways to re-vamp your warehouse in a sustainable style are:
Solar panels and high efficiency lighting such as LED
Solar panels are one of the cleanest sources of energy. With the power of the Australian Sun, Aussie warehouses should harness its power to improve sustainability, efficiency and cost savings. International brands such as Nike and Linfox are utilising solar panels and high efficiency lighting to improve their warehouse sustainability.
Plastic Pallets
Swapping your wooden pallets for plastic pallets is a decision all logistic businesses should consider. Plastic pallets are recyclable and eco-friendly, they are also more durable and lighter compared to wooden pallets. Wooden pallets can only be recycled into firewood or mulch but eventually end up slowly decomposing in landfill.
Waste Management
Whilst most warehouses do recycle when it comes to plastics and cardboard, there are some harder to recycle materials which end up going to landfill. A company known as Terracycle is a waste management company that believes in recycling everything. They’ve created the Zero Waste Box system which is an all-in-one recycling program that can be used by anyone including businesses.
Electric Forklift
Companies such as Toyota have manufactured Forklifts that are powered by electricity rather than diesel. These electric forklifts have zero emissions which make them environmentally friendly. TGL currently uses the TOYOTA electric forklift in their Sydney warehouse.
This list is just a few ways that your company can make a switch to a zero emissions journey but there are many more avenues that can be explored.
Zero Emissions Website
Logistic businesses use websites to educate and offer services to their customers, but did you know that websites emit CO2? Every time you load a website page, you emit CO2, the more complex the website the more CO2 is released.
So, make the switch! Websites such as carbonneutral help you calculate, reduce and offset your carbon emission so your business can start using a zero emissions website.
B-Corp Certificates
The B-Corp Certificate is a certification which defines a business who meets the highest standards within sustainability, public transparency and legal accountability. It’s a company that can balance profit and purpose. This certificate proves that the efforts within your business are helping to drive a positive impact on employees, communities, and the environment.
At TGL we’re striving to achieve a B-Corp certificate to show our determination in balancing profit and purpose. To show we have a high regard for environmental sustainability, we’ve currently implemented recycling stations in the office, we’ve gone paperless, manage our energy usage by utilising sensor lights and use eco-friendly products around the office.
We still have a long way to go but our environmental sustainability journey is just getting started. Making actionable and gradual steps to becoming a zero-emissions logistics company is the first step for all logistics companies to better assist our environment.
