Driving Logistics Industry towards a Sustainable Future

As Earth Week 2023 is observed around the world, the global logistics industry is stepping up its efforts to reduce its environmental impact and promote sustainability throughout the supply chain. With increasing pressure to address climate change, the industry is taking a closer look at its impact on the environment and implementing innovative solutions to create a more sustainable future.

According to recent data from the International Transport Forum (2021), transportation accounts for 23% of global energy-related CO2 emissions, and this number is projected to increase by 60% by 2050 if no action is taken. The logistics industry, which accounts for approximately 8% of global carbon emissions, is therefore a key contributor to climate change.

However, the industry is taking significant steps toward reducing its environmental impact. The International Air Transport Association (IATA) reports that the aviation industry has reduced its carbon emissions by 13% since 2019, largely due to the adoption of more fuel-efficient aircraft and the increased use of sustainable aviation fuels. Similarly, the trucking industry is transitioning to zero-emission vehicles, with major companies committing to a complete transition by 2035.

In addition to reducing emissions, the logistics industry is also embracing sustainable practices throughout the supply chain. The use of sustainable packaging materials is increasing, with companies such as Amazon pledging to use 100% recyclable or biodegradable materials by 2025. Reverse logistics programs are also gaining popularity, allowing companies to reuse and recycle products that would otherwise end up in landfills.

Furthermore, the logistics industry is investing in innovative technologies, several initiatives, and policies, to reduce its environmental impact, some of which are outlined below:

• Adopting green technologies: The industry is adopting various green technologies like electric and hybrid vehicles, renewable energy sources, energy-efficient equipment, and intelligent transport systems to reduce carbon emissions and fuel consumption. The use of drones and autonomous vehicles can reduce emissions by optimizing routes and reducing the need for traditional transportation methods.
• Using alternative fuels: Green fuels such as biofuels, hydrogen, and electric power are being used in various modes of transport to reduce emissions of pollutants.
• Optimising logistics networks: Freight transporters are collaborating to consolidate their cargo and optimize their routes to reduce their carbon footprint. This includes sharing transport and warehouse facilities, joint loading and unloading, and co-modal transport.
• Measuring carbon footprint: Freight transporters are measuring their carbon footprint and implementing carbon reduction strategies to improve their environmental performance.
• Complying with policies and regulations: Governments and international organizations are introducing policies and regulations that incentivize and promote sustainable freight and logistics practices. Examples include emissions and fuel standards, shipbuilding standards, fuel taxes, and subsidies for low-carbon technologies.

NNR Global Logistics recognises the importance of protecting the environment and mitigating the impact of our operations on the planet. Our team in Philippines recently demonstrated NNR's commitment to environmental sustainability and corporate social responsibility by participating in an initiative called 'Plant a Tree, Plant a Life'. This project involved planting trees in the rural province of Cavite, Philippines, doing so, we also celebrated the first anniversary of NNR Philippines' National Operational Excellence Center (NOEC). We believe that sustainability is not only good for the environment but also good for business, and we will strive to ensure that our operations are sustainable and efficient.