Climate change is escalating and causing severe disruptions worldwide due to the increasing emissions from various sources such as vehicles, factories, farms, and more. As a result, Environmental Social and Governance (ESG) goals have gained significant importance for organizations, as reported by ET.
Measures to decrease emissions
To address these goals, organizations are striving to become more sustainable by reducing emissions, fostering diversity and equity within their workplaces, and adhering to governance policies focused on sustainability. The global logistics industry, responsible for about 8% of global greenhouse gas emissions, has already implemented several measures to decrease its emissions.
How logistics companies are becoming sustainable
The logistics industry plays a vital role in global trade, with a market size of USD 9.52 trillion in 2021. It comprises both the physical and digital supply chains. The physical supply chain involves the transportation and storage of goods, while the digital supply chain deals with the movement of digital documentation. Greening the physical supply chain involves the adoption of eco-friendly fuels like biofuels and electric vehicles, as well as renewable energy sources such as solar power. While these technologies are not yet widely implemented, advancements in automation, machine learning, blockchain, GPS tracking, integrated logistics, and remote digital access solutions are already making the digital supply chain more sustainable.
Real-time data
The global shipping industry, responsible for 3% of global emissions, is utilizing digital technologies to improve efficiency and reduce carbon emissions. Real-time data on engine and route efficiency helps optimize shipment speed and lower emissions. These technologies are also used to monitor chemical levels and temperatures, reducing spoilage and waste. Shipping companies are providing customers with precise CO2 emission information for each container, meeting the demand for carbon accounting. Digital tools generate valuable data, enabling businesses to access sustainability metrics, measure their impact, and report information accurately. Efficient logistics networks benefit the economy by reducing both the logistics industry’s carbon footprint and the price of transported goods. The Indian Government aims to enhance the logistics sector’s efficiency through the National Logistics Policy (NLP), aiming to lower its share in India’s GDP from 14% to single digits, highlighting the importance of supply chain digitization.
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Source: ET
