Green Logistics: Reducing Your Ecommerce Carbon Footprint
In today's environmentally-conscious world, the concept of green logistics plays a crucial role in promoting sustainability in the ecommerce industry.
This article will delve into the challenges associated with green logistics and the importance of reducing the logistics carbon footprint in ecommerce operations, focusing on last-mile fulfilment and transportation.
So, What is Green Logistics?
Green logistics, also known as sustainable logistics, involves the integration of eco-friendly practices throughout the supply chain to minimise the environmental impact of ecommerce operations. It encompasses sustainable warehousing, transportation, and packaging solutions that aim to reduce carbon emissions and resource consumption.
Why is the Concept of Green Logistics Important?
Green logistics is crucial because it aligns with the broader goals of sustainability and addresses the environmental challenges posed by traditional logistics practices. By implementing eco-conscious strategies, businesses can significantly reduce their carbon footprint, conserve natural resources, and mitigate climate change effects.
Challenges of Green Logistics
While green logistics offers a promising pathway towards sustainability and reducing the carbon footprint of ecommerce operations, it is not without its challenges.
From addressing cost implications and limited infrastructure to ensuring regulatory compliance and meeting customer expectations, the challenges of green logistics demand innovative solutions and collaboration among stakeholders.
Let’s dive into 8 challenges associated with green logistics and explore why overcoming these obstacles is vital for creating a greener and more sustainable future for the ecommerce industry.
1. Cost Implications
One of the primary challenges of adopting green logistics practices is both the initial cost involved in implementing eco-friendly technologies and processes, and the ongoing costs associated with sustainable practices.
Sustainable warehousing, transportation and packaging solutions often require upfront investments, which can be perceived as a barrier for some businesses, especially smaller ones. However, the trade-off in the long-term is usually worth the upfront investment if it can be accommodated - more on this when we explore renewable energy in warehouses.
Warehousing
Storage also plays a crucial role in ecommerce logistics. If your business requires substantial storage space, like a warehouse, going green will mean sustainable energy expenses as you switch to renewable sources, such as solar.
Equipping a warehouse building with solar panels can be a substantial outlay, although they do prove to be cost-effective in the long run:
“A solar panel system is projected to enable commercial settings to reduce energy costs by about 75%. An industrial solar panel system will undoubtedly be beneficial if you pay an average of $1,000 a month for electricity. Your monthly savings would be roughly $750, translating to a $250 reduction in energy costs.” - Coldwell Solar
Large initial investments like these are often easier for bigger businesses with higher cash flow and stable trajectories as they’re able to align their investments in green energy with long-term goals - perhaps 10, 20, 30 years into the future - to see the benefits.
Striking a balance between short-term profitability and long-term sustainability goals is crucial, and when done correctly, they yield substantial long-term benefits.
These benefits can be seen in the form of reduced overheads for warehouse operating costs. Solarsense found that solar panels cut warehousing electricity costs from between 40-80% and could save the warehousing sector £3bn/year! This trade-off between immediate financial gains and sustainable practices should be considered carefully.
Packaging
Making the switch from non-recyclable to recyclable or eco-friendly packaging takes an investment of both time and money.
“Most consumers want green packaging. As far back as 2020, in research by Trivium Packaging1, 74% of those surveyed in the US, Europe and South America were willing to pay more for it.” - DHL
Despite the costs associated with ‘going green’, recent data reveals that 44% of customers choose to buy from brands with a clear commitment to sustainability, so this move should be seen as a long-term return on investment as your business continues to see repeat business and customer loyalty thanks to sustainable initiatives.
One thing to be careful of when promoting green packaging is not to get accused of greenwashing. Businesses should genuinely demonstrate commitment to environmental sustainability which requires transparency, authenticity and consistent actions.
A few ways businesses can ensure they're not just claiming to being environmentally friendly are:
- Transparent Communication: Businesses should provide clear and honest information about their sustainability efforts. Avoid vague or misleading claims. Communicate specific actions taken, goals achieved and challenges faced, transparently.
- Substantiated Claims: Ensure that any environmental claims are backed by verifiable data. Have evidence to support statements regarding carbon emissions reductions, resource conservation and other sustainability metrics.
- Third-Party Certifications: Seek certifications from reputable third-party organisations that validate your sustainability initiatives. Certifications like Energy Star, Fair Trade, or Forest Stewardship Council demonstrate a commitment to genuine sustainability.
Transportation
Haulage for long distance deliveries could see initial investments of tens of millions required to see fleets of lorries replaced with electric trucks like the Semi by Tesla. Although it promises fuel savings of up to $200,000 across 3 years, “at a base price of $180,000 for the longer-range model, these electric transports are certainly not cheap” - Sustainable Brands
2. Limited Infrastructure and Technology
The widespread adoption of sustainable technologies, such as electric vehicles or renewable energy-powered warehouses, might be hindered by the limited availability of infrastructure and suitable technology.
For instance, the lack of charging stations for electric vehicles in certain regions can pose challenges in transitioning to green transportation. Not to mention the fact that most EV charging stations are themselves powered by fossil fuel sources!
“Charging stations are powered by whatever the power grid runs on, which might include oil, coal, and natural gas. If you want to ensure that your car is powered by renewable energy, you'll need to seek out charging stations that are powered by wind or solar.” - JustEnergy
ACEA's findings published in June 2022 revealed a vastly uneven distribution of public EV charging points across the EU. “In 2021, half of the charging infrastructure is located in just two countries, the Netherlands and Germany, which make up only 10% of the EU's land mass, leaving the remaining 90% to share the remaining 51.2% of charging infrastructure.
Clearly, for EV transportation outside of Germany and the Netherlands, there are huge restrictions.
3. Complex Supply Chain Network
In a globalised world, supply chains have become increasingly complex, involving multiple partners and stakeholders across various countries. Coordinating sustainable practices throughout such a complex network can be challenging, especially when each partner may have different sustainability priorities and capabilities.
This is where ecommerce merchants need a solution like Codept which allows for carrier optimisation, allowing e-tailers to decide which logistics service provider to select according to a number of factors such as the location of their end customer or the weight of a package.
If merchants want to prioritise sustainable shipping, they can choose a partner that also shares this same goal, for example, they may use sustainable packaging or leverage micro-fulfilment centres to reduce carbon footprint by implementing local delivery solutions that minimise the last mile journey.
4. Regulatory Compliance and Standards
Green logistics is influenced by environmental regulations and standards imposed by governments and industry bodies. Keeping up with ever-changing regulations and ensuring compliance can be demanding for businesses operating in multiple regions.
5. Customer Expectations and Market Demand
While consumers are increasingly demanding sustainable products and practices, accurately meeting these expectations and staying ahead of market demand can be challenging for businesses.
Meet customer expectations of lightning-fast delivery whilst also offering an environmentally-friendly shipping solution can be difficult to balance; the fastest option isn’t always the greenest. This is typically true for long-haul delivery routes that involve shipping items by plane, however, urban delivery methods like electric bikes can provide extremely quick delivery with limited emissions.
6. Data and Measurement
Accurate measurement and data collection are essential for assessing the effectiveness of green logistics strategies. However, obtaining reliable data on emissions, energy consumption, and other sustainability metrics can be complex, particularly for businesses with diverse operations and supply chains.
7. Consumers’ Limited Awareness of Sustainability
Customers increasingly value sustainable practices and eco-friendly packaging in ecommerce. Studies show that “consumers are willing to pay 16% more for an item packaged in a paper-based package”, further emphasising the importance of green packaging in meeting customer demands.
Despite this growing interest in sustainability, some consumers may still lack awareness of the importance of green logistics, not to mention this can vary widely depending on the target audience. For example, ResearchGate found that “attitudes towards sustainability and the degree to which consumers feel sustainability is important is more positive for younger consumers and women. The Baby Boomer generation is less interested in sustainable consumption and less likely to be persuaded by sustainability claims.”
These different attitudes can pose challenges for companies trying to market their sustainable initiatives effectively and educate their customers about the benefits of eco-friendly practices.
8. Business’ Understanding and Willingness to Change
It’s also important that businesses understand the carbon footprint of their activity, meaning that they have access to data about the total greenhouse gas emissions produced during the process of fulfilling online orders and delivering them to customers. Key components contributing to this carbon footprint include last-mile delivery, order processing, packaging and transportation.
To reduce the carbon footprint of logistics operations, businesses must first measure their emissions accurately. Various methodologies and tools, such as Life Cycle Assessment (LCA) and carbon calculators, can help in assessing and quantifying the environmental impact. Key metrics and indicators, like CO2 emissions per mile or per parcel, aid in evaluating logistics sustainability. That said, this links closely to challenge one; cost implications.
A study by GS1 in 2013 found that an automotive manufacturing company saw increased costs per year of €2,427 to offset one ton of CO2, so it’s not cheap to be kind to the environment when you consider offsetting tens of thousands of tonnes of CO2 on an industrial level.
Transitioning from traditional logistics to green logistics often involves changes in processes, technologies, and company culture. Resistance to change, whether that be from a place of complacency and comfort when staff know and understand existing procedures and technology, or from a place of ignorance, when staff refuse to accept that greener initiatives are needed, can slow down the adoption of sustainable practices.
Ways to Reduce Logistics Carbon Footprint
As businesses and consumers increasingly prioritise environmental sustainability, reducing the logistics carbon footprint has become a critical objective for the modern logistics industry.
Embracing eco-conscious strategies and adopting greener practices in warehousing, transportation, and packaging play a vital role in curbing greenhouse gas emissions and minimising the environmental impact of ecommerce operations.
Let’s explore 3 key areas for reducing the logistics carbon footprint, from implementing energy-efficient technologies in warehouses to embracing sustainable shipping solutions and adopting eco-friendly packaging practices.
1. Warehousing: Reducing Carbon Emissions
Warehousing is a crucial element of the logistics process and adopting sustainable practices within warehouses can significantly contribute to reducing the carbon emissions associated with ecommerce operations.
By optimising warehouse locations, using renewable energy sources, implementing energy-efficient technologies, adopting proper inventory management, and promoting recycling, businesses can make their warehousing practices more eco-friendly and decrease their logistics carbon footprint. Here are a few ways businesses can do this:
Optimising Warehouse Locations
Choosing strategic warehouse locations can have a considerable impact on reducing transportation distances and associated emissions.
By locating warehouses closer to major customer hubs or urban centres, businesses can minimise the distance goods need to travel during last-mile delivery. This can lead to reduced fuel consumption and fewer greenhouse gas emissions from delivery vehicles.
Carrier optimisation plays a big role in selecting the right fulfilment partner, including micro-fulfilment strategies that leverage local networks to reduce transportation implications.
Using Renewable Energy Sources
Warehouses are energy-intensive facilities, consuming electricity for lighting, heating, and cooling. To decrease their carbon footprint, businesses can transition to renewable energy sources such as solar or wind power. Installing solar panels on warehouse rooftops or sourcing electricity from renewable energy providers allows warehouses to operate more sustainably and significantly reduce their reliance on fossil fuels.
Implementing Energy-Efficient Technologies and Equipment
Energy-efficient technologies and equipment play a vital role in reducing energy consumption within warehouses - even the smallest change across thousands of lightbulbs stacks up to be not only a large cost-saving in the long-run, but also a huge reduction in emissions since LED bulbs use more than 75% less energy than incandescent lighting.
Adopting Proper Inventory Management
Effective inventory management practices can minimise waste and unnecessary storage, thus reducing the overall environmental impact. By maintaining optimal inventory levels and streamlining order fulfilment processes, warehouses can prevent overstocking and reduce the need for excess storage space, ultimately leading to a reduction in energy consumption and carbon emissions.
Using Environmentally-Friendly Packaging Materials and Promoting Recycling
Sustainable warehousing also involves using environmentally-friendly packaging materials and promoting recycling within the facility. Choosing packaging materials that are recyclable, biodegradable, or made from recycled content can significantly reduce waste and contribute to a circular economy.
Furthermore, implementing recycling programs within warehouses ensures that packaging materials and other waste are properly managed and diverted from landfills.
2. Transportation: Sustainable Shipping Solutions
Transportation is a critical component of ecommerce logistics, and adopting sustainable shipping solutions is essential to reduce emissions and minimise the environmental impact of delivery operations.
By embracing eco-friendly transportation options such as electric vehicles (EVs), cycling, crowd-shipping solutions and hybrid transportation, promoting route optimisation and shipment consolidation, encouraging intermodal transportation, and partnering with logistics service providers that prioritise sustainability, businesses can significantly contribute to lowering their logistics carbon footprint and advancing green logistics practices.
Embracing Electric Vehicles (EVs) and Hybrid Transportation
One of the most effective ways to make ecommerce delivery more eco-friendly is by transitioning from traditional fuel-powered vehicles to electric vehicles (EVs) and hybrid transportation.
EVs produce zero tailpipe emissions, reducing greenhouse gas emissions and air pollution. Hybrid vehicles, which combine an electric motor with a conventional engine, also offer significant fuel efficiency benefits, further lowering carbon emissions during delivery routes.
Not only this, but many urban fulfilment strategies now include cycling or electric bikes, minimising carbon footprint even further. An article by The Guardian states that electric cargo bikes cut carbon emissions by 90% compared with diesel vans, and by a third compared with electric vans, not only reducing pollution in cities but traffic, too!
Promoting Route Optimisation and Shipment Consolidation
Route optimisation and shipment consolidation are essential strategies to minimise the distance and number of trips required for deliveries. By utilising advanced routing algorithms and software, businesses can plan the most efficient delivery routes, reducing fuel consumption and emissions.
Shipment consolidation, although it may sound straightforward, involves bundling multiple orders into a single delivery, maximising vehicle capacity and reducing the number of vehicles on the road. Not only does this reduce multiple deliveries to the same destination, often it encompasses properly packaging items together where possible - more on appropriate packaging later.
Encouraging the Use of Intermodal Transportation
Intermodal transportation involves using multiple modes of transport, such as rail, road, and even maritime, to move goods from origin to destination. By choosing intermodal solutions, businesses can take advantage of the strengths of each mode, leading to more energy-efficient and environmentally-friendly shipping options.
For instance, using trains for long-haul transportation can significantly reduce carbon emissions compared to trucks. Stanford University found that rail is over seven times more energy efficient than trucking in terms of greenhouse emissions. This discrepancy carries into fuel efficiency as well. Trains measure in at 477 tonne-miles per gallon of fuel, while for trucks it's only 145 tonne-miles per gallon.
With that in mind, carriers ought to leverage rail transportation where possible, however, it’s not always a feasible method - in the UK, for example, there are 9,864 miles of railway compared to 31,900 miles of major roads meaning there’s much more flexibility in road transportation for reaching rural areas and locations not served by rail.
Partnering with Logistics Service Providers for Sustainability
Partnering with logistics service providers that prioritise sustainability is a strategic move for ecommerce businesses aiming to reduce their carbon footprint.
Collaboration among ecommerce stakeholders, including suppliers, carriers, and logistics providers, is crucial for implementing sustainable practices. By using Codept's integrated carriers and 3PLs, businesses can access sustainable suppliers and eco-friendly solutions that minimise their environmental impact collectively.
Our Tender Management service gives merchants the option to discover 'green' carriers and integrate local carriers with eco-friendly practices.
By partnering with such providers, businesses can ensure that their deliveries are handled by carriers committed to reducing emissions and embracing sustainable transportation practices.
3. Packaging: Eco-Conscious Solutions
Packaging is a crucial aspect of ecommerce logistics and adopting eco-conscious solutions in this area can have a significant impact on reducing the overall carbon footprint. By prioritising sustainable packaging practices, businesses can minimise waste, conserve resources and promote environmental responsibility.
Below are some key eco-conscious packaging solutions that can help ecommerce businesses in their journey towards green logistics…
Use of Recyclable, Biodegradable, and Compostable Materials
One of the most effective ways to make packaging more sustainable is by using materials that are recyclable, biodegradable, or compostable. Traditional plastic packaging can take hundreds of years to decompose, leading to environmental pollution and harming ecosystems.
In contrast, eco-friendly materials like recycled cardboard, paper, or compostable bioplastics break down naturally, reducing the environmental impact and contributing to a circular economy. As we’ve already discovered, consumers are willing to pay a higher ticket price for items packaged in a paper-based package, making this a win-win scenario.
Adoption of Right-Sized Packaging
The use of right-sized packaging is another essential eco-conscious solution.
Often, packages are unnecessarily large, leading to wasted space and excessive materials - most of us have experienced a surprisingly large Amazon delivery on our doorstep only to find inside a tiny Fitbit, cook book or memory card!
By selecting packaging that fits products snugly, businesses can reduce the amount of packaging material needed and optimise shipping volumes. For example, highly automated warehouses often implement Fit-to-Product (FtP) packaging by creating custom corrugated cases to the exact specifications of a product.
FtP systems protect products during manufacturing, shipping and transportation, plus they eliminate the need to maintain an inventory of multiple carton sizes, since cases of any dimension can be built quickly and easily.
This not only decreases shipping costs and carbon emissions associated with transportation but it also reduces waste - no more bubble wrap, paper rolls or plastic pillows to pad out unneeded space.
That said, for fragile and delicate items, protective packaging is a must. In these cases, it’s vital to explore options such as biodegradable plastic, but be warned, not everything that’s promoted as ‘green’ is truly 100% recyclable.
Eventige explores the truth behind so-called biodegradable plastics, pointing out that in most cases, they present just as much harm and damage as normal plastic since we lack the infrastructure to ‘melt’ down this type of material. Instead they recommend 3 alternatives if additional packaging is truly required:
- Cardboard paper – the most common biodegradable and recyclable product packaging options.
- Bubble wrap – adding an additive to the resin in the bubble wrap helps it break down into biomass, water, and CO2. The material is light and can easily degrade. Using this within your packaging is a great option for sustainable methods.
- Cornstarch – created by using fermented sugars from cornstarch, this ‘plastic’ can quickly biodegrade, providing there is sufficient oxygen and light. This is a wonderful alternative for brands as they design their sustainable packaging.
Implementation of Innovative Packaging Designs
Innovative packaging designs can revolutionise the way products are shipped and received. Reusable containers and packaging solutions that are designed to be returned and reused offer a sustainable alternative to single-use packaging, however, they have to be deployed carefully.
Mckinsey’s outcomes of a German ecommerce delivery study found that reusable packaging would need to make 20 rotations to be competitive from an environmental perspective. Not only this, but they also found that transportation costs and emissions increased dramatically to account for returning and reusing the packaging. In this case, transportation accounted for 75% of costs and 65% of emissions!
For this reason, it would be better to explore package-less solutions, where products are shipped without unnecessary outer boxes, plastic wraps or excess packaging, significantly minimising waste and promoting a greener approach to ecommerce logistics. This is definitely a strategy that should be pursued by more.
The Future of Green Ecommerce
The future of sustainable ecommerce logistics looks promising with emerging trends and technologies. Advancements in renewable energy, automation and circular economy practices offer exciting opportunities to further reduce the carbon footprint.
With 62% of consumers willing to change their purchasing habits to support sustainability (up from 57% two years ago) businesses must continue to prioritise green logistics to meet customer demands and safeguard the planet for future generations.
By prioritising green logistics and embracing sustainable warehousing, eco-friendly transportation, and responsible packaging practices, ecommerce businesses can significantly contribute to reducing their carbon footprint and meet the growing demand for environmentally responsible practices.
FAQs
What is green logistics, and why is it important for sustainable ecommerce?
Green logistics, also known as sustainable logistics, refers to the integration of eco-friendly practices throughout the supply chain to minimise the environmental impact of logistics operations.
It is vital for sustainable ecommerce as it helps reduce carbon emissions, conserve natural resources, and aligns with the broader goals of environmental responsibility. By adopting green logistics practices, ecommerce businesses can showcase their commitment to sustainability, attract environmentally-conscious customers, and contribute to mitigating climate change.
How does sustainable warehousing contribute to reducing the logistics carbon footprint?
Sustainable warehousing plays a significant role in reducing the logistics carbon footprint. By optimising warehouse locations, using renewable energy sources, implementing energy-efficient technologies, adopting proper inventory management, and promoting recycling, businesses can minimise energy consumption and emissions associated with warehousing operations.
Sustainable warehousing practices not only lower the environmental impact but also enhance operational efficiency and cost-effectiveness in the long-term.
What are some eco-friendly transportation options for ecommerce logistics?
Eco-friendly transportation options for ecommerce logistics include:
- Electric vehicles (EVs)
- Crowd-shipping
- Cargo-bikes
- Hybrid transportation
Electric vehicles produce zero tailpipe emissions, while hybrid transportation combines electric motors with conventional engines for improved fuel efficiency.
Additionally, promoting route optimisation, shipment consolidation, and intermodal transportation (combining multiple modes like rail and road) can further reduce carbon emissions during product delivery.
How can businesses adopt sustainable packaging practices to reduce their carbon footprint?
To reduce their carbon footprint, businesses can adopt sustainable packaging practices by using recyclable, biodegradable, and compostable materials for packaging. Choosing right-sized packaging to minimise waste and implementing innovative packaging designs, such as reusable containers or package-less solutions, are also effective strategies.
Sustainable packaging not only reduces waste but also resonates positively with environmentally-conscious customers, enhancing brand reputation.
What role does collaboration play in achieving green logistics and sustainable ecommerce?
Collaboration among stakeholders, including suppliers, carriers, logistics providers, and customers, is pivotal for achieving green logistics and sustainable ecommerce. Businesses can collaborate with sustainable suppliers, logistics service providers, and carriers to access eco-friendly solutions and enhance their overall supply chain sustainability.
Additionally, engaging customers and raising awareness about the importance of sustainable practices fosters a collective effort towards a greener future for the ecommerce industry.
In today's environmentally-conscious world, the concept of green logistics plays a crucial role in promoting sustainability in the ecommerce industry.
This article will delve into the challenges associated with green logistics and the importance of reducing the logistics carbon footprint in ecommerce operations, focusing on last-mile fulfilment and transportation.
So, What is Green Logistics?
Green logistics, also known as sustainable logistics, involves the integration of eco-friendly practices throughout the supply chain to minimise the environmental impact of ecommerce operations. It encompasses sustainable warehousing, transportation, and packaging solutions that aim to reduce carbon emissions and resource consumption.
Why is the Concept of Green Logistics Important?
Green logistics is crucial because it aligns with the broader goals of sustainability and addresses the environmental challenges posed by traditional logistics practices. By implementing eco-conscious strategies, businesses can significantly reduce their carbon footprint, conserve natural resources, and mitigate climate change effects.
Challenges of Green Logistics
While green logistics offers a promising pathway towards sustainability and reducing the carbon footprint of ecommerce operations, it is not without its challenges.
From addressing cost implications and limited infrastructure to ensuring regulatory compliance and meeting customer expectations, the challenges of green logistics demand innovative solutions and collaboration among stakeholders.
Let’s dive into 8 challenges associated with green logistics and explore why overcoming these obstacles is vital for creating a greener and more sustainable future for the ecommerce industry.
1. Cost Implications
One of the primary challenges of adopting green logistics practices is both the initial cost involved in implementing eco-friendly technologies and processes, and the ongoing costs associated with sustainable practices.
Sustainable warehousing, transportation and packaging solutions often require upfront investments, which can be perceived as a barrier for some businesses, especially smaller ones. However, the trade-off in the long-term is usually worth the upfront investment if it can be accommodated - more on this when we explore renewable energy in warehouses.
Warehousing
Storage also plays a crucial role in ecommerce logistics. If your business requires substantial storage space, like a warehouse, going green will mean sustainable energy expenses as you switch to renewable sources, such as solar.
Equipping a warehouse building with solar panels can be a substantial outlay, although they do prove to be cost-effective in the long run:
“A solar panel system is projected to enable commercial settings to reduce energy costs by about 75%. An industrial solar panel system will undoubtedly be beneficial if you pay an average of $1,000 a month for electricity. Your monthly savings would be roughly $750, translating to a $250 reduction in energy costs.” - Coldwell Solar
Large initial investments like these are often easier for bigger businesses with higher cash flow and stable trajectories as they’re able to align their investments in green energy with long-term goals - perhaps 10, 20, 30 years into the future - to see the benefits.
Striking a balance between short-term profitability and long-term sustainability goals is crucial, and when done correctly, they yield substantial long-term benefits.
These benefits can be seen in the form of reduced overheads for warehouse operating costs. Solarsense found that solar panels cut warehousing electricity costs from between 40-80% and could save the warehousing sector £3bn/year! This trade-off between immediate financial gains and sustainable practices should be considered carefully.
Packaging
Making the switch from non-recyclable to recyclable or eco-friendly packaging takes an investment of both time and money.
“Most consumers want green packaging. As far back as 2020, in research by Trivium Packaging1, 74% of those surveyed in the US, Europe and South America were willing to pay more for it.” - DHL
Despite the costs associated with ‘going green’, recent data reveals that 44% of customers choose to buy from brands with a clear commitment to sustainability, so this move should be seen as a long-term return on investment as your business continues to see repeat business and customer loyalty thanks to sustainable initiatives.
One thing to be careful of when promoting green packaging is not to get accused of greenwashing. Businesses should genuinely demonstrate commitment to environmental sustainability which requires transparency, authenticity and consistent actions.
A few ways businesses can ensure they're not just claiming to being environmentally friendly are:
- Transparent Communication: Businesses should provide clear and honest information about their sustainability efforts. Avoid vague or misleading claims. Communicate specific actions taken, goals achieved and challenges faced, transparently.
- Substantiated Claims: Ensure that any environmental claims are backed by verifiable data. Have evidence to support statements regarding carbon emissions reductions, resource conservation and other sustainability metrics.
- Third-Party Certifications: Seek certifications from reputable third-party organisations that validate your sustainability initiatives. Certifications like Energy Star, Fair Trade, or Forest Stewardship Council demonstrate a commitment to genuine sustainability.
Transportation
Haulage for long distance deliveries could see initial investments of tens of millions required to see fleets of lorries replaced with electric trucks like the Semi by Tesla. Although it promises fuel savings of up to $200,000 across 3 years, “at a base price of $180,000 for the longer-range model, these electric transports are certainly not cheap” - Sustainable Brands
2. Limited Infrastructure and Technology
The widespread adoption of sustainable technologies, such as electric vehicles or renewable energy-powered warehouses, might be hindered by the limited availability of infrastructure and suitable technology.
For instance, the lack of charging stations for electric vehicles in certain regions can pose challenges in transitioning to green transportation. Not to mention the fact that most EV charging stations are themselves powered by fossil fuel sources!
“Charging stations are powered by whatever the power grid runs on, which might include oil, coal, and natural gas. If you want to ensure that your car is powered by renewable energy, you'll need to seek out charging stations that are powered by wind or solar.” - JustEnergy
ACEA's findings published in June 2022 revealed a vastly uneven distribution of public EV charging points across the EU. “In 2021, half of the charging infrastructure is located in just two countries, the Netherlands and Germany, which make up only 10% of the EU's land mass, leaving the remaining 90% to share the remaining 51.2% of charging infrastructure.
Clearly, for EV transportation outside of Germany and the Netherlands, there are huge restrictions.
3. Complex Supply Chain Network
In a globalised world, supply chains have become increasingly complex, involving multiple partners and stakeholders across various countries. Coordinating sustainable practices throughout such a complex network can be challenging, especially when each partner may have different sustainability priorities and capabilities.
This is where ecommerce merchants need a solution like Codept which allows for carrier optimisation, allowing e-tailers to decide which logistics service provider to select according to a number of factors such as the location of their end customer or the weight of a package.
If merchants want to prioritise sustainable shipping, they can choose a partner that also shares this same goal, for example, they may use sustainable packaging or leverage micro-fulfilment centres to reduce carbon footprint by implementing local delivery solutions that minimise the last mile journey.
4. Regulatory Compliance and Standards
Green logistics is influenced by environmental regulations and standards imposed by governments and industry bodies. Keeping up with ever-changing regulations and ensuring compliance can be demanding for businesses operating in multiple regions.
5. Customer Expectations and Market Demand
While consumers are increasingly demanding sustainable products and practices, accurately meeting these expectations and staying ahead of market demand can be challenging for businesses.
Meet customer expectations of lightning-fast delivery whilst also offering an environmentally-friendly shipping solution can be difficult to balance; the fastest option isn’t always the greenest. This is typically true for long-haul delivery routes that involve shipping items by plane, however, urban delivery methods like electric bikes can provide extremely quick delivery with limited emissions.
6. Data and Measurement
Accurate measurement and data collection are essential for assessing the effectiveness of green logistics strategies. However, obtaining reliable data on emissions, energy consumption, and other sustainability metrics can be complex, particularly for businesses with diverse operations and supply chains.
7. Consumers’ Limited Awareness of Sustainability
Customers increasingly value sustainable practices and eco-friendly packaging in ecommerce. Studies show that “consumers are willing to pay 16% more for an item packaged in a paper-based package”, further emphasising the importance of green packaging in meeting customer demands.
Despite this growing interest in sustainability, some consumers may still lack awareness of the importance of green logistics, not to mention this can vary widely depending on the target audience. For example, ResearchGate found that “attitudes towards sustainability and the degree to which consumers feel sustainability is important is more positive for younger consumers and women. The Baby Boomer generation is less interested in sustainable consumption and less likely to be persuaded by sustainability claims.”
These different attitudes can pose challenges for companies trying to market their sustainable initiatives effectively and educate their customers about the benefits of eco-friendly practices.
8. Business’ Understanding and Willingness to Change
It’s also important that businesses understand the carbon footprint of their activity, meaning that they have access to data about the total greenhouse gas emissions produced during the process of fulfilling online orders and delivering them to customers. Key components contributing to this carbon footprint include last-mile delivery, order processing, packaging and transportation.
To reduce the carbon footprint of logistics operations, businesses must first measure their emissions accurately. Various methodologies and tools, such as Life Cycle Assessment (LCA) and carbon calculators, can help in assessing and quantifying the environmental impact. Key metrics and indicators, like CO2 emissions per mile or per parcel, aid in evaluating logistics sustainability. That said, this links closely to challenge one; cost implications.
A study by GS1 in 2013 found that an automotive manufacturing company saw increased costs per year of €2,427 to offset one ton of CO2, so it’s not cheap to be kind to the environment when you consider offsetting tens of thousands of tonnes of CO2 on an industrial level.
Transitioning from traditional logistics to green logistics often involves changes in processes, technologies, and company culture. Resistance to change, whether that be from a place of complacency and comfort when staff know and understand existing procedures and technology, or from a place of ignorance, when staff refuse to accept that greener initiatives are needed, can slow down the adoption of sustainable practices.
Ways to Reduce Logistics Carbon Footprint
As businesses and consumers increasingly prioritise environmental sustainability, reducing the logistics carbon footprint has become a critical objective for the modern logistics industry.
Embracing eco-conscious strategies and adopting greener practices in warehousing, transportation, and packaging play a vital role in curbing greenhouse gas emissions and minimising the environmental impact of ecommerce operations.
Let’s explore 3 key areas for reducing the logistics carbon footprint, from implementing energy-efficient technologies in warehouses to embracing sustainable shipping solutions and adopting eco-friendly packaging practices.
1. Warehousing: Reducing Carbon Emissions
Warehousing is a crucial element of the logistics process and adopting sustainable practices within warehouses can significantly contribute to reducing the carbon emissions associated with ecommerce operations.
By optimising warehouse locations, using renewable energy sources, implementing energy-efficient technologies, adopting proper inventory management, and promoting recycling, businesses can make their warehousing practices more eco-friendly and decrease their logistics carbon footprint. Here are a few ways businesses can do this:
Optimising Warehouse Locations
Choosing strategic warehouse locations can have a considerable impact on reducing transportation distances and associated emissions.
By locating warehouses closer to major customer hubs or urban centres, businesses can minimise the distance goods need to travel during last-mile delivery. This can lead to reduced fuel consumption and fewer greenhouse gas emissions from delivery vehicles.
Carrier optimisation plays a big role in selecting the right fulfilment partner, including micro-fulfilment strategies that leverage local networks to reduce transportation implications.
Using Renewable Energy Sources
Warehouses are energy-intensive facilities, consuming electricity for lighting, heating, and cooling. To decrease their carbon footprint, businesses can transition to renewable energy sources such as solar or wind power. Installing solar panels on warehouse rooftops or sourcing electricity from renewable energy providers allows warehouses to operate more sustainably and significantly reduce their reliance on fossil fuels.
Implementing Energy-Efficient Technologies and Equipment
Energy-efficient technologies and equipment play a vital role in reducing energy consumption within warehouses - even the smallest change across thousands of lightbulbs stacks up to be not only a large cost-saving in the long-run, but also a huge reduction in emissions since LED bulbs use more than 75% less energy than incandescent lighting.
Adopting Proper Inventory Management
Effective inventory management practices can minimise waste and unnecessary storage, thus reducing the overall environmental impact. By maintaining optimal inventory levels and streamlining order fulfilment processes, warehouses can prevent overstocking and reduce the need for excess storage space, ultimately leading to a reduction in energy consumption and carbon emissions.
Using Environmentally-Friendly Packaging Materials and Promoting Recycling
Sustainable warehousing also involves using environmentally-friendly packaging materials and promoting recycling within the facility. Choosing packaging materials that are recyclable, biodegradable, or made from recycled content can significantly reduce waste and contribute to a circular economy.
Furthermore, implementing recycling programs within warehouses ensures that packaging materials and other waste are properly managed and diverted from landfills.
2. Transportation: Sustainable Shipping Solutions
Transportation is a critical component of ecommerce logistics, and adopting sustainable shipping solutions is essential to reduce emissions and minimise the environmental impact of delivery operations.
By embracing eco-friendly transportation options such as electric vehicles (EVs), cycling, crowd-shipping solutions and hybrid transportation, promoting route optimisation and shipment consolidation, encouraging intermodal transportation, and partnering with logistics service providers that prioritise sustainability, businesses can significantly contribute to lowering their logistics carbon footprint and advancing green logistics practices.
Embracing Electric Vehicles (EVs) and Hybrid Transportation
One of the most effective ways to make ecommerce delivery more eco-friendly is by transitioning from traditional fuel-powered vehicles to electric vehicles (EVs) and hybrid transportation.
EVs produce zero tailpipe emissions, reducing greenhouse gas emissions and air pollution. Hybrid vehicles, which combine an electric motor with a conventional engine, also offer significant fuel efficiency benefits, further lowering carbon emissions during delivery routes.
Not only this, but many urban fulfilment strategies now include cycling or electric bikes, minimising carbon footprint even further. An article by The Guardian states that electric cargo bikes cut carbon emissions by 90% compared with diesel vans, and by a third compared with electric vans, not only reducing pollution in cities but traffic, too!
Promoting Route Optimisation and Shipment Consolidation
Route optimisation and shipment consolidation are essential strategies to minimise the distance and number of trips required for deliveries. By utilising advanced routing algorithms and software, businesses can plan the most efficient delivery routes, reducing fuel consumption and emissions.
Shipment consolidation, although it may sound straightforward, involves bundling multiple orders into a single delivery, maximising vehicle capacity and reducing the number of vehicles on the road. Not only does this reduce multiple deliveries to the same destination, often it encompasses properly packaging items together where possible - more on appropriate packaging later.
Encouraging the Use of Intermodal Transportation
Intermodal transportation involves using multiple modes of transport, such as rail, road, and even maritime, to move goods from origin to destination. By choosing intermodal solutions, businesses can take advantage of the strengths of each mode, leading to more energy-efficient and environmentally-friendly shipping options.
For instance, using trains for long-haul transportation can significantly reduce carbon emissions compared to trucks. Stanford University found that rail is over seven times more energy efficient than trucking in terms of greenhouse emissions. This discrepancy carries into fuel efficiency as well. Trains measure in at 477 tonne-miles per gallon of fuel, while for trucks it's only 145 tonne-miles per gallon.
With that in mind, carriers ought to leverage rail transportation where possible, however, it’s not always a feasible method - in the UK, for example, there are 9,864 miles of railway compared to 31,900 miles of major roads meaning there’s much more flexibility in road transportation for reaching rural areas and locations not served by rail.
Partnering with Logistics Service Providers for Sustainability
Partnering with logistics service providers that prioritise sustainability is a strategic move for ecommerce businesses aiming to reduce their carbon footprint.
Collaboration among ecommerce stakeholders, including suppliers, carriers, and logistics providers, is crucial for implementing sustainable practices. By using Codept's integrated carriers and 3PLs, businesses can access sustainable suppliers and eco-friendly solutions that minimise their environmental impact collectively.
Our Tender Management service gives merchants the option to discover 'green' carriers and integrate local carriers with eco-friendly practices.
By partnering with such providers, businesses can ensure that their deliveries are handled by carriers committed to reducing emissions and embracing sustainable transportation practices.
3. Packaging: Eco-Conscious Solutions
Packaging is a crucial aspect of ecommerce logistics and adopting eco-conscious solutions in this area can have a significant impact on reducing the overall carbon footprint. By prioritising sustainable packaging practices, businesses can minimise waste, conserve resources and promote environmental responsibility.
Below are some key eco-conscious packaging solutions that can help ecommerce businesses in their journey towards green logistics…
Use of Recyclable, Biodegradable, and Compostable Materials
One of the most effective ways to make packaging more sustainable is by using materials that are recyclable, biodegradable, or compostable. Traditional plastic packaging can take hundreds of years to decompose, leading to environmental pollution and harming ecosystems.
In contrast, eco-friendly materials like recycled cardboard, paper, or compostable bioplastics break down naturally, reducing the environmental impact and contributing to a circular economy. As we’ve already discovered, consumers are willing to pay a higher ticket price for items packaged in a paper-based package, making this a win-win scenario.
Adoption of Right-Sized Packaging
The use of right-sized packaging is another essential eco-conscious solution.
Often, packages are unnecessarily large, leading to wasted space and excessive materials - most of us have experienced a surprisingly large Amazon delivery on our doorstep only to find inside a tiny Fitbit, cook book or memory card!
By selecting packaging that fits products snugly, businesses can reduce the amount of packaging material needed and optimise shipping volumes. For example, highly automated warehouses often implement Fit-to-Product (FtP) packaging by creating custom corrugated cases to the exact specifications of a product.
FtP systems protect products during manufacturing, shipping and transportation, plus they eliminate the need to maintain an inventory of multiple carton sizes, since cases of any dimension can be built quickly and easily.
This not only decreases shipping costs and carbon emissions associated with transportation but it also reduces waste - no more bubble wrap, paper rolls or plastic pillows to pad out unneeded space.
That said, for fragile and delicate items, protective packaging is a must. In these cases, it’s vital to explore options such as biodegradable plastic, but be warned, not everything that’s promoted as ‘green’ is truly 100% recyclable.
Eventige explores the truth behind so-called biodegradable plastics, pointing out that in most cases, they present just as much harm and damage as normal plastic since we lack the infrastructure to ‘melt’ down this type of material. Instead they recommend 3 alternatives if additional packaging is truly required:
- Cardboard paper – the most common biodegradable and recyclable product packaging options.
- Bubble wrap – adding an additive to the resin in the bubble wrap helps it break down into biomass, water, and CO2. The material is light and can easily degrade. Using this within your packaging is a great option for sustainable methods.
- Cornstarch – created by using fermented sugars from cornstarch, this ‘plastic’ can quickly biodegrade, providing there is sufficient oxygen and light. This is a wonderful alternative for brands as they design their sustainable packaging.
Implementation of Innovative Packaging Designs
Innovative packaging designs can revolutionise the way products are shipped and received. Reusable containers and packaging solutions that are designed to be returned and reused offer a sustainable alternative to single-use packaging, however, they have to be deployed carefully.
Mckinsey’s outcomes of a German ecommerce delivery study found that reusable packaging would need to make 20 rotations to be competitive from an environmental perspective. Not only this, but they also found that transportation costs and emissions increased dramatically to account for returning and reusing the packaging. In this case, transportation accounted for 75% of costs and 65% of emissions!
For this reason, it would be better to explore package-less solutions, where products are shipped without unnecessary outer boxes, plastic wraps or excess packaging, significantly minimising waste and promoting a greener approach to ecommerce logistics. This is definitely a strategy that should be pursued by more.
The Future of Green Ecommerce
The future of sustainable ecommerce logistics looks promising with emerging trends and technologies. Advancements in renewable energy, automation and circular economy practices offer exciting opportunities to further reduce the carbon footprint.
With 62% of consumers willing to change their purchasing habits to support sustainability (up from 57% two years ago) businesses must continue to prioritise green logistics to meet customer demands and safeguard the planet for future generations.
By prioritising green logistics and embracing sustainable warehousing, eco-friendly transportation, and responsible packaging practices, ecommerce businesses can significantly contribute to reducing their carbon footprint and meet the growing demand for environmentally responsible practices.
FAQs
What is green logistics, and why is it important for sustainable ecommerce?
Green logistics, also known as sustainable logistics, refers to the integration of eco-friendly practices throughout the supply chain to minimise the environmental impact of logistics operations.
It is vital for sustainable ecommerce as it helps reduce carbon emissions, conserve natural resources, and aligns with the broader goals of environmental responsibility. By adopting green logistics practices, ecommerce businesses can showcase their commitment to sustainability, attract environmentally-conscious customers, and contribute to mitigating climate change.
How does sustainable warehousing contribute to reducing the logistics carbon footprint?
Sustainable warehousing plays a significant role in reducing the logistics carbon footprint. By optimising warehouse locations, using renewable energy sources, implementing energy-efficient technologies, adopting proper inventory management, and promoting recycling, businesses can minimise energy consumption and emissions associated with warehousing operations.
Sustainable warehousing practices not only lower the environmental impact but also enhance operational efficiency and cost-effectiveness in the long-term.
What are some eco-friendly transportation options for ecommerce logistics?
Eco-friendly transportation options for ecommerce logistics include:
- Electric vehicles (EVs)
- Crowd-shipping
- Cargo-bikes
- Hybrid transportation
Electric vehicles produce zero tailpipe emissions, while hybrid transportation combines electric motors with conventional engines for improved fuel efficiency.
Additionally, promoting route optimisation, shipment consolidation, and intermodal transportation (combining multiple modes like rail and road) can further reduce carbon emissions during product delivery.
How can businesses adopt sustainable packaging practices to reduce their carbon footprint?
To reduce their carbon footprint, businesses can adopt sustainable packaging practices by using recyclable, biodegradable, and compostable materials for packaging. Choosing right-sized packaging to minimise waste and implementing innovative packaging designs, such as reusable containers or package-less solutions, are also effective strategies.
Sustainable packaging not only reduces waste but also resonates positively with environmentally-conscious customers, enhancing brand reputation.
What role does collaboration play in achieving green logistics and sustainable ecommerce?
Collaboration among stakeholders, including suppliers, carriers, logistics providers, and customers, is pivotal for achieving green logistics and sustainable ecommerce. Businesses can collaborate with sustainable suppliers, logistics service providers, and carriers to access eco-friendly solutions and enhance their overall supply chain sustainability.
Additionally, engaging customers and raising awareness about the importance of sustainable practices fosters a collective effort towards a greener future for the ecommerce industry.
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