Green logistics can help businesses realise sustainability benefits across their entire organisation and supply chain, supporting them in achieving their emissions reduction goals and minimising their impact on the environment.

The freight and logistics sector has historically been a major contributor to carbon emissions. Sourcing and shipping goods can have a harmful impact on the natural environment, releasing pollutants into the air and waterways. The increased utilisation of intermodal shipping options has worked to improve freight’s environmental footprint, but there is still a long way to go. Green logistics seeks to fill this gap and help the sector make progress towards its sustainability objectives.

There are a variety of ways in which shippers and freight providers can optimise their logistics practices and reduce their environmental footprint. While there are no one-size-fits-all solutions, explore key practices that shippers are already using for greener logistics.

A commonly overlooked element of shipping is the way in which goods are stored in warehouses. Inventory that is improperly stored, managed, or monitored can result in excess waste sent to landfill. Ensuring an optimised warehouse management system and correct stock storage reduces waste.

Before implementing changes throughout an entire supply chain, first take a look at the product itself. Packaging is one of the biggest contributors to waste output from the freight industry—investing in environmentally friendly packaging saves unrecyclable materials from ending up in landfills.

Empty miles—or miles driven by freight trucks without actually hauling goods—are a major contributor to the industry’s carbon footprint. Reducing empty miles cuts down on fuel consumption and carbon emissions. Freight providers can invest in digital tools and AI to help them identify ways in which they can utilise empty miles and reduce unnecessary emissions.

The most pressing and obvious benefits of green logistics are environmental. However, there are a range of secondary advantages for businesses that turn their focus to more sustainable logistics strategies.

As consumers increasingly align their loyalties with organisations that prioritise sustainability action, green logistics can act as a key strategy for businesses to gain and retain customers. Greenwashing is a practice of the past—customers now demand to see tangible results and strategies that prove companies are taking their sustainability targets seriously. Companies that are transparent about their environmental practices often experience more satisfied, loyal customers.

Similarly to consumers, professionals want to work for companies whose values align with their personal morals and principles. Sustainability action is a major concern for many potential employees; companies that don’t have environmental targets or strategies in place are likely putting themselves at a disadvantage and missing out on—or even outright losing—quality talent.

Across the globe, large enterprises are already being required to disclose their environmental practices, and many countries have begun talks about including smaller organisations in these requirements. Getting on the front foot by improving sustainability action and being transparent about green logistics strategies can do wonders for companies’ overall reputations. On the flip side, companies that are unwilling to do so risk putting themselves at a reputational and competitive disadvantage.

All of the above factors contribute to overall profitability. However, green logistics itself can also have a remarkable impact on business profitability. An investment in green logistics means that over time waste is minimised and emissions are reduced, both of which result in significant long-term cost savings.

Despite its undeniable benefits across businesses, implementing green logistics isn’t without its challenges.

Green logistics requires a significant investment to begin with. It often requires businesses to adopt new technology, implement unfamiliar processes, and train their teams on new ways of working. None of this is easy, nor does it come for free. However, the upfront investment results in impressive cost savings in the long run.

One of the most complex parts of green logistics is navigating the implementation throughout all levels of the supply chain. Supply chains can be comprised of many different suppliers across various locations. Traditional suppliers may resist any changes to the supply chain, particularly if they are located within a jurisdiction with different sustainability regulations.

Just like many other areas of the industry, green logistics and transportation are largely powered by AI and other digital tools. Predictability and reliability are paramount in the freight sector, and the emergence of AI enables freight providers to access deeper insights and bigger data sets than ever before. As AI matures, the industry will become increasingly reliant on it as a source of truth to predict trends and patterns that can inform their sustainability strategies.