As we look to a new sustainable future it is critical that global supply chains commit to structural change. The Logistics & Supply Chain Sustainability Report 2021, in partnership with the Foundation for Future Supply Chain examines the complexities of achieving net zero emissions by 2050, and the role global supply chains will play in this challenge.
The report addresses the impact of Covid-19 on the race to decarbonise, how shippers are trying to become greener and the additional measures required to improve logistics efficiency. The report examines the current impact of road, air and sea freight on environmental targets, and the measures each market must adopt in order to reach net zero.
It is currently very unclear how best to reduce emissions and adopt sustainable and efficient logistics networks. There are political constraints, with large differences in the approach of different nations. There are also market specific challenges, such as phasing out diesel and petrol trucks and reducing freight demand. The report examines each of these challenges and sets out potential strategies for each market.
The report also contains a breakdown of the findings of the Foundation for Future Supply Chain’s 2021 Sustainability survey. The survey addresses current industry attitudes towards net-zero targets, motivating factors for environmental initiatives and the progress already made with regards to emissions measurements.
Finally, the report contains comparative environmental profiles for leading logistics providers.
This report contains:
- The real impact of air, sea and road freight on sustainability targets.
- Unique analysis from the 2021 Sustainability Survey, in partnership with the Foundation for Future Supply Chain.
- Carbon intensity figures for key logistics players.
- Analysis of impact of current supply chain emissions on environmental targets.
- Investment Tracker which provides In depth analysis of logistics sustainability targets.
- Environmental profiles for 10 leading LSPs, including sustainability strategies & targets.
- Analysis of the impact of Covid-19 on sustainability practices.
Key questions the report asks and answers:
- Can net-zero targets really be achieved?
- What role will global supply chains play in the race to net-zero?
- Sustainability is increasingly taking a central position in corporate agendas, but is the industry moving fast enough?
- Are shippers ready to pay to offset CO2 emissions?
- What is the true impact of shipping on the environment?
- Which sustainability strategies are leading logistics players adopting? And what must they do to keep up with the race to net-zero?
- How much progress has been made in the european road freight market with regards to net-zero targets?
- What proportion of companies measure the impact of its business on the environment?
- What impact has Covid-19 had on environmental initiatives?
- Is it feasible to ban the sale of diesel engine trucks by 2040?
Exclusive highlights
- The logistics industry will need root-and-branch transformation over the next ten years if climate change targets are to be met
- There is some evidence of significant moves and heavy investment in green supply chains in 2021
- Establishing 2050 targets relies on a more coordinated approach, further investment and continued technological development
- Almost two fifths of logistics industry professionals believe that net-zero goals are unachievable
- Compliance is the main motivating factor for environmental initiatives
- In order to meet net-zero targets, the freight industry must adopt the so-called ‘avoid-shift-improve’ strategy
- There are currently no existing alternative fuels that can rival diesel engines
- Global transport emissions increased by less than 0.5% in 2019
- Shipping lines emissions data declined 3.1% and 4.4% on average between 2018 and 2020 respectively
Table of Contents
01 INTRODUCTION
02 COP26 AND NET-ZERO EMISSION TARGETS
2.1 Key Themes of the COP Agenda
2.1.1 EU
2.1.2 Japan
2.1.3 China
2.1.4 USA
2.2 The ‘Net-Zero’ Emissions Target
2.2.1 The Path Towards NetZero Emissions
2.2.1.1 The Reduction of Underlying Volumes by Restructuring Supply Chains
2.2.1.2 Moving Freight from Carbon Intensive Modes
2.2.1.3 Improving Capacity Utilization through Digital Technologies
2.2.1.4 Improving Energy Efficiency through Automatio2.2.1.5 Reducing Carbon Intensity with Alternative Fuels
2.3 Are Shippers Ready to Pato Offset CO2 Emissions?
03 THE CHALLENGE OF MEETING AND MEASURING CARBON EMISSIONS
3.1 Science Based Targets Initiative (SBTi)
3.1.1 United Nations
3.1.2 OECD
3.1.3 European Union
3.2 Industry Sector Targets
3.2.1 Shipping
3.2.2 Aviation
3.2.3 International Post Corporation (IPC) IPC
3.3 Selected Major Logistics Companies Targets
3.3.1 CH Robinson
3.3.2 DP DHL
3.3.3 DSV Panalpina
3.3.4 Kuehne + Nagel
3.3.5 Maersk
3.3.6 FedEx
3.3.7 UPS
3.4 Hydrogen-Powered Vehicles in Logistics
3.4.1 Hydrogen-Based Propulsion Technology for Vehicles
3.4.2 Hydrogen Production
3.4.3 Hydrogen Logistics
3.4.4 Economics
3.4.5 Storing Hydrogen on Vehicle Fuel Tanks
3.4.5 Storing Hydrogen on Vehicle Fuel Tanks
3.4.7 Truck Manufacturers & Hydrogen
3.4.8 Energy Company Solutions
04 THE IMPACT OF SHIPPING ON THE ENVIRONMENT
4.1 International Maritime Organization
4.2 Emissions Trading System
4.2.1 The Cap and Trade System
4.2.2 Smarter and More Sustainable Slow Steaming
05 SHIPPING LINES AND DECARBONIZING
5.1 Carbon Tax
5.2 Lower Emitting Fuel Technologies
5.3 ‘Creation Destruction’
5.4 The Minimum Global Corporation Tax Rate
5.5 Alternative Fuels and Ship Propulsion Methods
5.5.1 Alternative Fuel Options
5.5.1.1 Ammonia
5.5.1.2 Manufacture
5.5.1.3 Development as a fuel
5.5.1.4 Liquified Natural Gas / Liquified Petroleum Gas
5.5.1.5 Di-Methyl Ether
5.5.1.6 Synthetic Fuels (Fischer-Tropsch)
5.5.1.7 Biodiesel & Biogas
5.5.1.8 Use of electricity for charging batteries and cold ironing
5.5.1.9 Hydrogen
5.5.2 Engine and Ship Design
5.5.3 Fuel Logistics and the Shipping Market
5.6 Ports and Net zero
06 LSP SUSTAINABILITY INVESTMENTS
6.1 Investment Focus
6.2 Electric Trucks
6.3 Targets and Trials
07: CARBON EMISSIONS DATA
7.1 Global CO2 Emissions by Mode 2021
7.2 Shipping
7.3 European Road Freight
08 SUSTAINABILITY SURVEY 2021
8.1 Attitude to Sustainability
8.2 Carbon Emissions Measurements and Targets
8.3 Factors Driving Adoption and Perceived Benefits
8.4 Corporate Environmental Initiatives
8.5 Out-Sourcing
8.6 Future Fuels
09 ENVIRONMENTAL PROFILES
9.1 DHL
9.1.1 Overall Policy and Goals
9.1.1.1 Management Systems
9.1.2 Emissions
9.1.3 Total Carbon Emissions
9.1.4 Carbon emissions intensity
9.1.4.1 Supplier Environmental Assessment
9.1.5 Emissions Reduction Strategies
9.1.5.1 Warehousing
9.1.5.2 Air
9.1.5.3 Road
9.1.5.4 Sea
9.1.5.5 Multimodal
9.1.6 Local Air Pollution
9.1.7 Green Products
9.1.8 Offset Projects
9.2 UPS
9.2.1 Overall Policy and Goals
9.2.2 Environmental Achievements
9.2.3 Emissions
9.2.4 Emissions reduction strategies
9.2.4.1 Warehousing
9.2.4.2 Air
9.2.4.3 Road
9.2.4.3.1 Digitalization
9.2.4.3.2 Alternative Fuel Propulsion
9.2.4.3.3 Alternative Fuels
9.2.5 Green Products
9.2.6 Circular Solutions for Customers
9.2.7 Offset Products
9.3 FEDEX
9.3.1 Overall Policy and Goals
9.3.2 Milestone Goals for 2040
9.3.3 Total Emissions
9.3.4 Carbon Intensity
9.3.5 Emissions Reduction Strategies
9.3.5.1 Aviation
9.3.5.2 Road
9.3.5.3 Intermodal
9.3.5.4 Facilities and materials
9.3.5.4.1 Renewable energy and alternative infrastructure
9.3.5.5 Sustainable materials, recycling, and the circular economy
9.3.6 Technology
9.3.7 Carbon offsetting and environmental schemes
9.3.8 Fuel and Energy Saving Initiatives and CO2 Emissions Avoided
9.4 GEODIS
9.4.1 Overall Policy and Goals
9.4.2 Milestone Goals for 2040
9.4.3 Total Carbon Emissions
9.4.4 Emissions by Type
9.4.5 Carbon intensity
9.4.6 Emissions Reduction Strategies
9.4.6.1 Sea
9.4.6.2 Road
9.4.6.2.1 First and Last Mile Delivery
9.4.6.2.2 TMS
9.4.6.2.3 Upply
9.4.6.3 Rail
9.4.6.4 Multimodal
9.4.6.5 Road/Rail
9.4.6.6 Warehousing
9.5 DSV PANALPINA
9.5.1 Overall Policy and Goals
9.5.2 Environmental Achievements 2020
9.5.3 Targets 2021
9.5.4 Total Carbon Emissions
9.5.5 Carbon Emissions Intensity Scope 1-3
9.5.6 Emissions reductions strategies
9.5.6.1 Warehousing
9.5.6.2 Road
9.5.6.3 Air
9.5.6.4 Sea
9.5.6.5 DSV Sea-air
9.5.6.6 Rail
9.5.7 Digitization
9.5.8 CNG
9.5.9 Hydrogen and e-fuel
9.6 MAERSK
9.6.1 Overall Policy and Goals
9.6.2 Emissions
9.6.3 Total Carbon Emissions
9.6.4 Carbon emissions by scope
9.6.5 Carbon intensity
9.6.6 Emissions reduction strategies
9.6.6.1 Sea
9.6.6.2 Road
9.6.6.3 Warehousing
9.6.6.4 Digitization
9.6.7 Climate Change Research
9.6.8 Sustainable fuels
9.6.8.1 LEO Fuel
9.6.9 New Carbon Neutral Products
9.7 Lufthansa Cargo
9.7.1 Overall Policy and Goals
9.7.2 Total Emissions
9.7.2.1 Total Fuel Consumption for Freight by Operator, 2020
9.7.3 Specific Fuel Consumption and Emissions
9.7.3.1 CO2 Emissions
9.7.3.2 NOx Emissions
9.7.3.3 CO Emissions
9.7.3.4 UHC Emissions
9.7.4 Emissions reduction strategies
9.7.4.1 Take off
9.7.4.2 Landing
9.7.4.3 During the Flight
9.7.4.5 In the warehouse
9.7.4.4 At the aircraft
9.7.4.6 Technology and innovation
9.7.4.7 Sustainable mobility
9.7.4.8 Alternative fuels
9.7.5 Carbon offsetting
9.8 DB SCHENKER
9.8.1 Overall Policy and Goals
9.8.2 Total Emissions
9.8.3 Carbon Intensity
9.8.4 Emissions Reduction Strategies
9.8.4.1 Rail
9.8.4.2 Air/Ocean
9.8.4.3 Road
9.8.4.4 Warehousing
9.8.5 Technology
9.8.5.1 Internet of Things
9.9 Amazon
9.9.1 Overall Policy and Goals
9.9.2 Milestone Goals 2040
9.9.3 Total Emissions
9.9.4 Total Emissions by Scope
9.9.5 YOY Percentage Change in Emissions Scope 1 – 2
9.9.6 YOY Percentage Change in Emissions Scope 3
9.9.7 Carbon Intensity
9.9.8 Emissions Reduction Targets
9.9.8.1 Fulfilment
9.9.8.2 Renewable energy
9.9.8.3 Road
9.9.8.3.1 Electric delivery vehicles
9.9.8.3.2 Batteries
9.9.8.3.3 Alternative Delivery Methods – Last Mile
9.9.8.3.4 Long Distance Freight Transport
9.9.8.4 Air Transport
9.9.8.4.1 Sustainable Aviation Fuels
9.9.8.4.2 Design of Aircraft and Facilities
9.9.8.5 Facilities
9.9.9 Carbon Offsetting and Nature-Based Projects
9.10 Kuehne + Nagel
9.10.1 Overall Policy and Goals
9.10.2 Milestone goals
9.10.3 Total Carbon Emissions
9.10.4 Carbon Intensity
9.10.5 Emissions Reductions Strategies
9.10.5.1 Sea
9.10.5.2 Air
9.10.5.3 Road
9.10.5.4 Rail
9.10.5.5 Intermodal
9.10.5.6 Warehousing
9.10.5.7 Sustainable Fuels
9.10.5.8 Renewable Energy
9.10.6 Carbon Offsetting
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Amazon
- CH Robinson
- DB Schenker
- DP DHL
- DSV Panalpina
- FedEx
- Geodis
- Kuehne + Nagel
- Lufthansa Cargo
- Maersk
- UPS
