Logistics is a sector that accounts for the majority of carbon emissions. The industry must take responsibility and step up to reduce carbon emissions and combat climate change. The industry must move from ‘business-as-usual’ to “business is green” by lowering its ever-increasing carbon footprint. Our world is changing. Our world, as we know it, is changing.
Logistics is a sector that accounts for the majority of carbon emissions. The industry must take responsibility and step up to reduce carbon emissions and combat climate change. The industry must move from “business as usual” to “business is green” by lowering its ever-growing footprint.
As we know it, our world is changing. The very thing that keeps us alive is eroding before our eyes. Human activity has abused and exploited the environment. In the next ten years, we will witness parts of our planet becoming inhospitable for humans due to unprecedented floods, fires, storms, and heat waves. We experienced the hottest one on record in 2020. The average global temperature was 1.2 degrees Celsius higher than it was during the period 1951-1980. This timeframe represents preindustrial conditions. We are on course to see temperatures rise by 3degC-5degC at the end of this century 4. The COP26 summit, which took place in Glasgow from October 31 through November 12, was a major step in curbing this rise in temperature.
What is the Logistics Sector?
The logistics industry as a group needs to be considered when looking at industries that need to take responsibility and step up. Transport contributes to 24% of global direct CO2 emissions 7, with global transportation burning out the world’s carbon budget. Even more alarming, the report by The International Transport Forum’s Transport Outlook 2021 8 predicts that global vehicles will double in size by 2050. This projection is a warning that emissions from the traffic sector alone could increase by 16 percent compared to 2015. The Paris Agreement and other global agreements will be impossible to achieve if this happens. Logistics is more than just transportation. It includes the entire supply chain from manufacturer to consumer. The logistics sector consists of the way resources are stored and transported, as well as how they are acquired. The packaging of materials (poly/plastic) is harmful to the environment. Plastic waste is a problem in the world, and it pollutes our air because fossil fuels are used to produce it. The logistics industry is complex and multi-locational, affecting the world at many levels.
The E-Commerce Drive
The digital and ecommerce worlds were in a frenzy during the COVID-19 Pandemic. In 2020, the share of e-commerce in global trade increased to 17 percent from 14 percent in 2019 10.
This digital transformation has led to an increase in the amount of transportation required to deliver goods ordered by consumers. According to a report, US online retail sales grew by 32.4% in the last year. This translated into an increase of $105 billion 11 online revenue. The problem is that with the push of e-commerce comes more transportation needed to deliver, more warehouses required to store the products, and more necessary packaging to pack the products–essentially amplifying the carbon footprint of the logistics sector.
The Fashion Industry and the Logistics Sector
COVID-19, also known as ‘fashion’s biggest reset’ 12, has had a huge impact on the fashion industry. Businesses were forced to adapt to the digital world in order to survive. Zara, a Spanish fast fashion retailer, saw its online net sales increase by 64 percent in comparison to 2019 13. Its e-commerce sales totaled EUR5,9 billion. Consumer habits are likely to change forever. People now prefer e-commerce more than ever. What does this shift in consumer behavior mean for the carbon impact of the fashion industry’s logistical processes? The fashion industry accounts for around 10 percent of global CO2 emissions 14. This is enough to make the industry shift to more sustainable practices 15. The sector must reduce its CO2 emissions to 1.1 billion tons by 2030 16 to meet the 1.5-degree path agreed upon by the Paris Agreement. Current projections show that the industry will almost double the target, with CO2 emissions expected to reach 2.1 billion metric tons of CO2 equivalent by 2030 17, unless measures are taken to reduce CO2 emissions throughout the logistics sector.
Apparel Logistics includes the processes that occur during the supply chain. These filter down from the manufacturer to the retailer and, finally, the end consumer. Retailers are now offering customers next-day delivery, free returns, and an abundance of micro-season apparel. What is the cost? Costs are just as high as you thought. Fast fashion is a major problem for the environment. The raw materials used to manufacture clothes are the first step in the process. Online brands are leading the environmental destruction trend, with 50% of fast fashion sold online 18 being made of synthetics such as polyester, nylon, and acrylic. Studies have also shown that only 1% of online clothing is made from recycled material, with the other 99 % being virgin. In a recent study, the carbon footprint of virgin polyethylene was found to be 119.59kgCO2/100kg 19. This is ten times more than pure polyester. A second study found that recycled polyester produces 79 percent less carbon emissions 20than pure polyester. As an oil-based material, polyester does not degrade. It remains in the environment for hundreds, if not thousands, of years.
The packaging that is used to wrap and store the clothing comes next in the fashion logistical chain. Sustainable packaging and delivery can be more expensive for the retailer or business. Still, a recent study found that 50% of consumers 21 were willing to pay a little extra to get sustainable packaging and shipping. Companies and retailers must adapt to the changing consumer demands. At least 8,000,000 tons of plastic 22 enter our oceans every year. The dependence on this destructive material must stop. Plastic emits 6 kg of CO2 for every 1 kg 23. It is the most polluting substance in our world.
The impact of transportation on carbon emissions has already been mentioned. Vehicles are one of the major contributors to our carbon budget. Our clothes are manufactured in the least developed and developing countries of the world, where labor costs are relatively low. Vietnam, Bangladesh, and India are the main apparel-exporting nations.
The environmental impact of transporting apparel from these countries to their final destination is significant. Vietnam’s textiles and apparel exports were worth $35.2 billion in 2020.
Bangladesh exported 25 ready-made garments at a rate of 83 percent. The fashion industry globally produces between 80 and 150 billion garments a year. 60% of this clothing is disposed of or burned, 26 adding to its growing carbon footprint. The business model of Next-Day Delivery is aligned with consumer demand for convenience and speed. “Order by 10 pm and you’ll get your clothes tomorrow at 2 p.m.” Workers are pushed to the limit, and the environment suffers in the process. The environmental cost of this is huge. Consumers are promised delivery in a matter of hours.
As more deliveries are made, more vans will be used, causing more traffic and air pollution. Consumers who choose next-day delivery often don’t realize that they are picking speed over the environment. Retailers are so eager to get the consumer goods delivered quickly that they allow their vans go to have them half-empty, prioritizing delivery time and common sense. If a vendor were given a 5-day window for delivery, they could wait until the van was full, reducing the number of trips needed to deliver items and relieving the pressure on staff to meet unrealistic timelines.
Understanding Carbon Footprint
Carbon footprint is simply the amount of greenhouse gases released by an individual, event, organization, or product. When looking for ways to reduce this carbon footprint, identify first the areas that emit the most carbon, and then work your way backward, reducing emissions in the corresponding regions. When looking to reduce emissions, a carbon audit is a great place to begin. Carbon audits help to identify the amount and contributing causes of greenhouse gas emissions. Tracking carbon emissions allows businesses to understand their impact on the environment better. It also promotes transparency so people can be aware of what steps are being taken towards a more sustainable future. Transparency is becoming more important as the world highlights the importance of businesses taking responsibility and prioritizing the planet. Carbon regulations and legal mandates have not yet been fully implemented in society. Consumers trust companies to be environmentally aware and responsible for their emissions until these are fully implemented.
Reducing Greenhouse Gases
We now know that the logistics industry plays a major role in global warming. The supply chain is the entire product and affects manufacturing and distribution globally. Businesses can reduce their carbon footprint. They have to start from the beginning and push for greener chains of events.
Material and Supplier Management
Raw materials used in the manufacturing process release large quantities of carbon dioxide into the atmosphere. Companies that switch to eco-friendly suppliers who use recycled materials and avoid virgin PET will immediately reduce their CO2 emission and their carbon footprint. The process of making the material, as well as the type of material, can contribute to greenhouse gas emissions. It is, therefore, best to avoid suppliers that are still using environmentally intensive processes and instead prioritize those who are moving towards a circular world.
Warehouse Emissions
The energy used to heat, cool, and power large warehouses in global supply chains is, on the whole, very inefficient. Energy efficiency can be easily improved in warehouses, which will reduce costs and carbon emissions. It is estimated that switching to LED lighting in non-refrigerated storage warehouses will reduce electricity costs by 70% 27. Solar panels and renewable energy can also be used to reduce costs instantly. It is possible to reduce the carbon impact of warehouses by reducing the energy used.
Space Utilisation And Transport
We have already discussed the impact of Next Day Delivery. This includes changing the narrative about delivery times and waiting until van vendors are fully stocked before distributing products. Simple actions can instantly reduce environmental and social impacts. When it comes to packaging, we need to ask ourselves if the space is being used effectively. Has the plastic packaging been minimized, and can packages be slotted more efficiently? These factors, when combined, will reduce carbon footprints while improving the well-being of workers. Sustainability is now a necessity. The planet has been treated as an indestructible, non-human object. The planet is responding to years of abuse and exploitation, and it requires that people reflect on and adapt to allow both to coexist. Each industry and sector should consider how to reduce their impact on the environment while still having a positive effect rather than the constant negative that continues the exhaustion of the earth.
