Focusing on sustainable logistics and supply chain to continue driving down emissions


Focusing on sustainable logistics and supply chain to continue driving down emissions

More nations are taking the pledge and committing to driving down emissions and working towards reaching net zero by 2050 or sooner. There’s no denying it will be challenging, and many of our industrial processes in industries such as agriculture continue to be highly carbon-intensive and finding an alternative workflow to reach this goal is complicated. 

What incentive is there for businesses to make the necessary changes? Aside from tackling the climate challenge, many countries are imposing or have already implemented carbon taxes to incentivise businesses to make changes. Over 40 governments worldwide have adopted some version of carbon pricing, either via direct taxes on fossil fuels or via cap-and-trade programs. As the world continues to explore ways to curb the impacts of global change, economists suggest that carbon taxes are one of the most efficient and cost-effective ways to manage and address changes to our climate. Implementing carbon tax systems could provide incentives for companies and industries to create a more sustainable and environmentally friendly production process.

The impending threat of carbon taxes isn’t the only reason why businesses should be making net-zero plans. Our thoughts and outlook on the environment and sustainability have transformed significantly over the last few years. Created a structured, robust plan to achieve net-zero has become a major competitive advantage when networking with investors, shareholders and customers.

One of the first steps that any business should consider is taking an accurate measure of all their emissions. Businesses need to understand what emissions they’re producing before they can work on bringing them down. This information is vital to any net-zero plan and provides a baseline to assess future reductions, making it simpler to create realistic and achievable targets and report success.

Measuring Supply Chain of  a Business

Another important way for businesses to assess and focus on reducing their carbon emissions is by examining their supply chains. By determining where in their supply chain is accountable for the bulk of their emissions and where high-risk areas have been detected in the past, businesses can start to work on reducing those areas and plan accordingly.

In an era where customers are demanding goods to be delivered even quicker, the logistics of getting products into people’s hands is becoming increasingly challenging. Added to this pressure is the need to focus on producing a sustainable and environmentally-friendly service.

The E-Commerce Times recently discussed the challenges in the industry and how sustainability can be beneficial to the environment and for business. Sustainable logistics is about creating supply chains that provide long-term value for customers, investors, and the wider society. It is about creating growth and trade opportunities while maintaining a focus on environmental protection, creating fair working conditions and respecting human rights. 

Sustainable logistics make complete sense for our planet, for customers and the businesses themselves. Sustainable logistics is about having an approach that creates positive economic, environmental and social outcomes for business, customers and the wider society. 

Consumer and Environmental Expectations

With customer delivery expectations rising, supply chains will demand more use of various transportations options to move products at an increasingly faster rate. With this in mind, we need to ensure that the logistics strategies used can meet these delivery demands, are scalable and have minimal impact on natural resources and our environment. Sustainable logistics take a relatively simple approach, get the package from its original location to its destination without harming the environment or the surrounding communities. This involves applying a complete sustainable perspective, transforming fleets to electric vehicles, introducing packaging and materials that produce less waste, and so on.

While customers are demanding goods to be delivered quicker, there has also been a rise in consciousness regarding sustainable manufacturing. Consumer shift is now shaping how the supply chain industry operates.

The increase in online sales with rising demand for quicker deliveries has left the supply chain and logistics industry with several challenges relating to the cost and capacity of getting those goods to people.

The logistics industry consists of more than just transport, but also data centres and all of the associated information infrastructure. All of this needs to develop and become more sustainable. Sustainable infrastructure is vital to developing green economic growth within the data centre and networks industry. 

As the commitment to sustainability rises, brands will be increasingly interested in highlighting this focus as part of their marketing plans. Consumers are getting progressively selective with the products and services they purchase and where they source their items.

In the next five years or so, sustainability will become even more of a priority for supply chain companies as brands will increasingly need their affiliated partners to reduce carbon footprints.

To be more sustainable and support additional green initiatives in the future the logistics industry must continue to develop technology that creates clear actionable insights into sustainability targets and continue moving towards a greener supply chain.

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