Sustainability

Consider the fact that electric vehicle batteries make vehicles significantly heavier. Given the 3.5-tonne threshold currently placed on vehicles in the UK, logistics operators will be faced with the hurdle of reduced payloads to align with current regulations.

The high costs associated with sustainable vehicle technologies such as electric vehicles will also pose a challenge for freight carriers that already operate on narrow profit margins.

Despite the slower progress in decarbonising alternative modes of transport such as rail and shipping, incremental steps should not be underestimated. Indeed, broad shifts towards water and rail transportation will go a long way in helping to reduce emissions, as these options already have lower emission profiles.

Indeed, if electrified road and rail uptake is to increase as needed to reach net zero by 2050, then it’s estimated that demand for electricity could rise as much as 680TWh, requiring up to 380TWh in additional energy. In this scenario, significant improvements will need to be made to the UK’s supporting infrastructure and renewable energy capacity.

Research, development and innovation around alternative fuels – from hydrogen and electric to biofuels and natural gas – continues to accelerate, with sustainable transport solutions increasingly entering the mainstream.

Promisingly, several key industry players are actively leading the charge in this domain. Toyota, for example, is broadening its hydrogen fleet through a key strategic partnership with VDL Groep, converting its logistics fleet of heavy-duty trucks to zero-emission carriers.

Further, opportunities for logistics, transport and supply chain decarbonisation are not just limited to the uptake of alternative fuels. Equally, enterprises can capitalise on several other sustainability improvements.

Here, artificial intelligence will only continue to play a more prominent role. Route optimisation AI, for example, is increasingly being used to device optimum delivery routes to minimise fuel consumption by taking live factors such as traffic and road accidents into consideration.

The ability of these technologies to save a few kilometres per trip should not be understated. When applied to tens of thousands of HGV drivers covering hundreds of thousands of kilometres a year, the domino effect quickly becomes evident.

In logistics, the opportunities are also expanded in other ways. Indeed, operators can and should embrace reusable and recyclable packaging solutions, as well as tap into carbon offsetting schemes where emissions simply cannot be avoided.

Of course, the responsibility to reduce emissions must not stand with end users or the private sector. Equally, the public sector and global bodies alike have a key role to play, providing the right regulations and mechanisms from which sustainability progress can be achieved.

Here, the World Economic Forum (WEF) is spearheading progress, making the case for carbon markets. Crafted as mechanisms for the exchange of carbon credits or permits, these systems play a pivotal role in fostering economic incentives to reduce emissions and encourage the uptake of low-carbon technologies.

Having identified the role that carbon markets could play in addressing the challenges facing the transport and logistics sector specifically, the WEF’s Supply Chain and Transport community backed the creation of both the First Movers Coalition (FMC) and the Sustainable Freight Buyers Alliance (SFBA) – two organisations that are helping to scale the number of industry entities working towards carbon abatement.

The launch of the Global Logistics Emissions Council (GLEC) framework, dedicated to driving the transparent and consistent calculating and reporting of GHG emissions, also provides reason for optimism. Having gained widespread support, it has since evolved into a key industry ISO standard -another shining example of how collective community efforts can drive sustainable change.

Collaborative initiatives such as these will be vital.