Sustainable logistics describes the attempt to measure and reduce the ecological impact of logistics and transport. These include packaging reduction, transport optimization, CO₂ reduction, energy efficiency, recycling, waste management, as well as sustainable transport solutions.
Find out here why sustainable logistics is becoming increasingly important, what the advantages are for companies and how Amazon Freight contributes to sustainable transport.
What is sustainable logistics?
Sustainable logistics, also known as green logistics, aims to conserve resources in order to reduce the ecological footprint of companies and contribute to the circular economy.
Examples include using renewable energies; efficient logistics management to shorten routes and save fuel; electric vehicles and pays attention to sustainable procurement; and the energy-efficient storage and distribution of goods.
Why is sustainable logistics important?
Europe’s climate goals have been set: by 2050, the EU should reach the net zero target and no longer produce greenhouse gases. To support this, there are new regulations that help measure and reduce companies’ CO₂ emissions.
Achieve climate goals, meet regulatory standards
In the ESG standards (Environmental, Social, and Governance) as part of the CSRD regulations, companies have had to measure their ecological and social impacts since January 1, 2023 and record them in the year-end balance sheet.
This includes, among other things, the entire lifecycle management of products—from production to storage to delivery of goods—along with proper waste management.
It is essential for both shippers and transport companies to take measures for sustainable logistics now, such as sustainable supply chains, carbon-neutral transport routes, a reduction in emissions in production, and the use of an environmentally friendly vehicle fleet.
What aspects does sustainable logistics take into account?
Each link in the supply chain can be more sustainable, and eco-friendly solutions include electric vehicles, bicycles or switching from truck transport to rail and sea transport (intermodal). The time it takes to transport goods also plays a role in the ecological balance.
The faster goods are delivered, the higher CO₂ emissions often are. When companies plan for the long term and therefore accept longer delivery times, they can improve sustainability in logistics.
In comparison:
- Transporting goods by train produces less CO₂ and emissions than by truck
- Transporting goods by ship uses less CO₂ than air freight by plane
Green technologies and sustainable innovations help to increase environmental awareness and reduce emissions. GPS tracking of goods and digital route planning already play an important role in saving time, costs and fuel.
This also includes sustainable storage, the reduction of electricity costs in warehouses through optimal cooling and lighting, as well as an effective goods management system to prevent overstocking.
What challenges does sustainable logistics face?
Improving the circular economy, protecting the environment and recycling resources all sound like excellent ideas, and they are. But there are still a number of hurdles that must be overcome to achieve the net zero climate target by 2050.
The challenges for sustainable logistics include:
- Regulatory requirements, which mean additional work for many companies and are associated with a number of costs
- Logistical and geographical problems, such as a lack of electric charging stations and long charging times
- Lack of time from managers and CEOs to deal with the transition to sustainable logistics
For many people, it is important to first shift their thinking away from money and towards more environmental protection. Because even if new purchases initially burn through the budget, sustainable purchases and restructuring of inefficient processes towards efficient and resource-saving processes will pay for themselves in the long term. Above all with regard to the ESG standards, which require a CO₂ balance of the entire life cycle of a product, the waste and the transport routes.
What are the advantages of sustainable logistics for companies?
Sustainable logistics reduces the consumption of fossil fuels, promotes ecological balance, contributes to the preservation of biodiversity and supports compliance with regulatory standards such as CSRD and ESG. Sustainability has become an integral part of logistics.
In addition to the positive impact on the environment and supply chains, sustainability in logistics also contributes to cost and time savings. Digitalization in particular simplifies many processes through effective route planning, GPS tracking of goods, and fuel calculations. This saves resources and improves fleet management, which in turn reduces operating expenses and leads to lower production costs.
The benefits of sustainability in logistics:
- Time and cost savings
- better company image
- low carbon footprint
- lower production costs through circular economy
- positive impact on the environment
- better employer branding
- Compliance with rules and regulations
Conclusion
In order to ship your goods in an environmentally friendly and cost-effective manner, we are happy to assist you as a partner in sustainable logistics. Amazon Freight has a professional network of thousands of freight forwarders and owned trailers, we always offer the best solution for your needs.
Send us an email at: freight-eu-interest@amazon.com. We would be happy to advise you.