Modern logistics has plenty of trends, such as digitization and automation of warehouses and transportation. But one of the most noticeable trends is green logistics.
The global economy cannot function without logistics. However, endless deliveries from point A to point B can seriously harm our environment. The task of green logistics is precisely to make the movement of goods safer for our planet.
What is green logistics?
Green logistics is an innovative approach to organizing supply chains. The key goal is transportation with minimal negative impact on the environment.
The main components of green logistics are:
- use of environmentally friendly transport;
- recycling and reuse of materials;
- reduction of carbon footprint;
- energy savings;
- efficient use of resources;
- transition to biodegradable materials.
Green logistics covers not only the actual transportation, but all stages of the industry’s work – warehousing, packaging, supply chain management, and eco-friendly culture in company offices.
Eco-friendly transport: the future of transportation
Logistics companies should already be responding to changes, as the EU has approved recommendations on carbon emissions. By 2030, they must be reduced by 55% for passenger cars and 50% for minibuses.
Unfortunately, the transport industry is responsible for approximately 20-25% of global emissions. Therefore, it is critically important to use environmentally friendly transport for deliveries. This includes electric cars, hybrid and hydrogen trucks, and alternative fuel vehicles. It is also possible to modernize the existing fleet and replace old diesel vehicles with new ones with lower emissions.
According to this year’s research, about 70% of companies in the retail logistics sector are in the process of transitioning to green transport or are preparing to take this step. The only thing slowing down the process is insufficient charging infrastructure.
Brands that manufacture electric trucks (environmentally friendly transport):
- Tesla;
- Volvo;
- Mercedes-Benz;
- Renault;
- Scania.
Eco-friendly transport is also available in maritime freight transport — shipping companies such as Maersk are switching to biofuels and green methanol. This is even more important than land logistics, as shipping is the largest source of CO₂ emissions.
It is worth mentioning the environmental standards that are an important condition for customs clearance of cars in Ukraine – Euro 5 and Euro 6.
Advantages of eco-friendly logistics for business
The introduction of green logistics benefits not only the planet but also business. The main advantage is cost savings. Let’s be honest – this is the main benefit for entrepreneurs.
Advantages of green logistics:
- lower electricity bills (for example, due to reduced energy consumption in warehouses);
- lower fuel costs;
- less demanding maintenance for eco-friendly transport;
- improved reputation and brand image in the eyes of customers, partners, and competitors;
- increased innovation and modernity.
In addition, the European Union is already introducing a carbon tax for companies that use non-eco-friendly transport. Therefore, it makes sense to invest in green logistics now to avoid fines and sanctions in the future.
How companies are implementing green logistics
Global business leaders have already set the trend for eco-friendly logistics. Changes are happening everywhere — some faster, some slower — but the direction is clear. That is why it is important to join those who are already making international trade more sustainable and environmentally friendly.
Tech giant Amazon has already made transportation between its own warehouses greener by switching to electric vehicles (EVs) and low-carbon fuels. The company has a more ambitious goal in this regard: a fleet of 100,000 electric vans by 2030. And by 2040, it aims to completely reduce or offset CO₂ emissions in its operations.
Amazon already has special software that builds optimal routes and reduces the number of empty trips.
Global furniture retailer IKEA plans to switch to 100% green energy and achieve net zero carbon emissions by 2050. The company is developing a furniture repair service rather than complete replacement, recycling products, and creating them from recycled and renewable materials.
Optimizing logistics as a path to sustainability
In 2024, the global green logistics market was estimated at approximately $1.5 trillion. This figure is growing every year, so it is very likely that in the coming decade, sustainable logistics will become one of the main areas of development for the global economy.
What can a logistics company do right now to become “green”?
- Switch to biofuels or renewable energy sources.
- Install solar panels in warehouses.
- Optimize delivery routes (reduce the number of “empty kilometers”).
- Use eco-friendly packaging for cargo.
- purchase reusable containers;
- use less paper and switch to digitalization.
Most likely, environmental requirements will only become more stringent—both from governments and international organizations. That is why, in order to stay in the market, it is worth starting to be “eco-friendly” now.
Conclusions
Green logistics is no longer a voluntary initiative, but a mandatory requirement. The future of transportation clearly requires eco-friendly solutions, as this not only means caring for the planet, but also reducing costs and increasing business efficiency.
