Carving out a road to more sustainable practices for the eCommerce, transport and logistics industries

Transportation and logistics are the lifeblood of global commerce, connecting businesses and communities. However, this connectivity comes with an environmental responsibility. 

For decades, transportation and logistics relied heavily on traditional fuel sources and operational models that contributed significantly to carbon emissions. The rise of eCommerce has amplified this, leading to more frequent, smaller shipments and increased urban deliveries. Recognising this evolving landscape and the growing global focus on climate change, it is imperative that we invest heavily in innovation and transformation.

We have an ambitious goal and target - achieve carbon-neutral operations globally by 2040. It is a significant undertaking for a business operating over 250,000 vehicles and 700 aircraft globally and transporting an average 17 million shipments on a daily basis. This goal extends across our entire network, from the vehicles on the road to the facilities that power our operations and the digital tools we offer our customers.

We've already deployed numerous strategies and initiatives to reduce our carbon footprint. Most recently, in New Zealand, we introduced 10 electric vehicles (EVs) into our Auckland operations as part of our overall phased approach to a fully zero-tailpipe emission pickup and delivery fleet by 2040. Integrating EVs is a crucial step in reducing our operational impact and steering the industry towards a more sustainable model.

But this is not the responsibility of anyone particular company. The industry as a whole will also need to adopt more sustainable practices to help reduce emissions on a larger scale, such as: 

A shift to cleaner vehicle technologies:

• Electrification: The necessary shift away from vehicles powered by fossil fuels towards zero-tailpipe emission alternatives, such as electric vehicles (EVs), requires accelerated progress across the full spectrum of vehicle types, encompassing everything from express vans to other light-to-medium duty vehicles.
• Alternative fuels: Where electrification is difficult, alternative fuels may fill the gap. Hydrogen, for example, is seen by some governments, including New Zealand's, as playing an important role in the transition to a low emission economy, as outlined in their Hydrogen Action Plan. The government hopes to increase private investment in hydrogen, which may offer a promising pathway for decarbonising long-haul transport, especially air freight. 

Optimise logistics and operations with advanced technologies

• Smart Logistics: With the rise of artificial intelligence (AI), logistics operators can utilise such technology in a variety of ways, including route planning to improve delivery capacity and efficiency. For instance, we've introduced an AI-powered intelligent sorting robot at some of our facilities in South-East Asia that helps us handle ever-growing volumes of eCommerce-related shipments. 

Regulatory and policy measures

• Collaborations and Standards: To ensure effective and implementable emission standards and regulations for vehicles and fleets, stronger consultation and collaboration are needed between the private sector and world governments in their development and enforcement. This maintains competitiveness while providing incentives for more progressive institutions.
• Incentives: Targeted subsidies and financial support for businesses adopting proven low-emission technologies will assist such businesses to accelerate their  transition to low emission operations.

Light at the end of the tunnel

The journey to carbon neutral operations is a marathon, not a sprint. We and a number of our peers are committed to taking tangible steps to help reduce the carbon footprint of our operations across our global business. We understand that sustainability is increasingly influencing consumer choices and is a core strategic consideration for businesses large and small. By investing in electrification, enhancing facility efficiency, embracing digital innovation, and collaborating with industry partners, researchers, and customers, we can contribute to a more sustainable future in transportation and logistics.