With more industries shifting their corporate social responsibility toward environmental sustainability, the logistics sector is challenged to do its part by improving processes to ensure minimal environmental impact. According to the International Organization for Standardization (ISO), the logistics and transport sector contributes to over a third of the global carbon dioxide emissions. This makes it the largest contributor in many developing countries. However, while international shipping companies strive toward sustainability by limiting their carbon use, they are met with pressures from the ever-growing demands of the e-commerce sector, where efficient transport is vital.
Indonesia, in particular, has a thriving e-commerce sector with a significant increase in online transactions to 23%, per the International Trade Administration. The market size is also expected to grow at a Compound Annual Growth Rate (CAGR) of 10.4% from 2023 to 2028. With this, logistics and transportation companies have to integrate sustainable practices that are aligned with their goals of meeting the needs of the increasing e-commerce market.
This is where DHL Express sets itself apart as a logistics and transport partner that provides green solutions for businesses in Indonesia to transport their goods internationally. Our DHL GoGreen solutions strive to provide your business with several service options that allow you to reduce your carbon footprint, waste, and other environmental impacts throughout your supply chain.
Understanding DHL's GoGreen programme
DHL's GoGreen initiative in Indonesia is a key example of how businesses can actively pursue carbon neutrality in the logistics industry. By applying the Book and Claim Method and choosing Sustainable Aviation Fuel (SAF), DHL Express is directly cutting down on carbon emissions from air transportation. SAF's ability to lower emissions by up to 80% compared to regular jet fuel is a significant step towards reducing the environmental impact of shipping goods. This initiative doesn't just lessen direct emissions (Scope 1) but also tackles indirect emissions (Scope 3) that come from activities outside of your business’s immediate control. This comprehensive approach shows DHL's dedication to not only meeting global standards for carbon reduction but also leading by example in corporate social responsibility.
By engaging in these sustainability practices, DHL is addressing the challenge of being a responsible logistics provider in today's world, where environmental impact is a critical concern. Our efforts to incorporate SAF and reduce emissions across the board are tangible steps towards achieving a balance between being a successful business and being a sustainable one. Overall, these green logistics and supply chain management solutions demonstrate that integrating environmentally friendly practices into business operations is achievable and essential for addressing climate change.
What is the “Book and Claim” method in DHL’s GoGreen initiative?
The Book and Claim method by DHL offers a practical approach for businesses looking to actively contribute to sustainable logistics within the GoGreen programme. This innovative system allows businesses to book sustainable fuels, claim associated benefits, and align with their sustainability targets without a complete overhaul of existing logistics processes.
The process involves DHL purchasing sustainable fuel, a renewable source of energy, from a supplier, which is then stored at an airport or port and eventually delivered to an aircraft or ship. By claiming the benefits of using renewable energy, businesses own the environmental advantages without physically possessing the fuel, receiving independently verified certificates as proof. This virtual solution, based on a chain-of-custody model, facilitates the transfer of specific attributes, such as reduced greenhouse gas emissions, to another party via a dedicated registry.
Rooted in the concept of carbon insetting, the Book and Claim system has the potential to significantly reduce the climate footprint of the transportation sector by funding projects aimed at emissions reduction within the industry. The terminology and accounting rules for this mechanism are still evolving, but the Book and Claim system stands as an innovative solution enabling businesses and individuals to contribute to sustainable logistics and incentivise global suppliers to enhance the production of sustainable fuels.
Key business benefits of the DHL Express’ GoGreen solutions for businesses in Indonesia
These are the benefits of partnering with DHL Express and participating in our GoGreen initiative:
1. Reduced carbon footprint and less waste
Embracing green logistics in your business operations through our GoGreen programme provides substantial environmental benefits. By opting for eco-friendly transportation and supply chain solutions, businesses in Indonesia can actively contribute to the reduction of their carbon footprint. We employ advanced technologies, optimised routes, and eco-friendly vehicles to ensure that every step of the logistics process is conducted with a minimal environmental impact.
2. Improved brand image and customer loyalty
For Indonesian businesses, the adoption of green logistics through our GoGreen programme can also serve as a strategic lever to enhance brand image and foster customer loyalty. In a market where consumers increasingly prioritise sustainability, businesses that actively embrace eco-friendly practices distinguish themselves as socially responsible entities.
By aligning with the values of environmentally conscious consumers, your business can gain a competitive edge and establish itself as a leader in sustainable business practices. This strategic move can contribute to positive perceptions of the brand and foster a deeper connection with customers who appreciate and prioritise businesses that are committed to minimising their environmental impact. Ultimately, the embrace of green logistics becomes a game-changer, influencing consumer choices and solidifying brand loyalty in a market where sustainability holds a pivotal role.
3. Compliance with global standards
Participating in our GoGreen programme not only positions businesses as environmentally responsible but also ensures compliance with international environmental standards and regulations. In an interconnected global trade environment, adherence to these standards is paramount for sustained success. This is because global markets increasingly prioritise sustainable business practices, and compliance with environmental standards becomes a valuable asset. Therefore, businesses in Indonesia can leverage their participation in the GoGreen programme to gain a competitive edge in international trade and export markets.
How to participate in DHL Express’ GoGreen initiative
Participating in DHL’s GoGreen initiative is a simple way to make your shipping more environmentally friendly. The process begins when you choose DHL Express as your shipping provider. By doing so, you can easily add the GoGreen service to your list of selected services. This inclusion allows you to adopt the Book and Claim method for your shipments, a straightforward approach that contributes to reducing your business’s carbon footprint.
DHL’s initiative facilitates a practical way for customers to engage in sustainability practices without complicating their shipping process. This move towards using SAF and reducing emissions demonstrates a commitment to environmental responsibility and promotes a shift towards greener supply chains.
