The concept of "net zero" has become an essential initiative in the fight against climate change. It represents a commitment to balance greenhouse gas emissions with carbon removal, effectively achieving a state of carbon neutrality. And while achieving net zero is a crucial step, Thai businesses can go beyond simply offsetting their emissions and lead the way in sustainable logistics.
In this article, we'll explore how Thai businesses can leverage sustainable logistics practices. Plus, we’ll discuss how partnering with DHL GoGreen Plus not only reduces their carbon footprint but also drives innovation and positive change in the industry.
The state of sustainable logistics in Thailand and beyond
The growing relevance of sustainability in the logistics industry is undeniable. In fact, the European Environment Agency predicts that global logistics could be responsible for a staggering 40% of global carbon emissions by 20501 without intervention. And with the increasing awareness of climate change and its impact, businesses and consumers are demanding greener solutions.
For instance, a Statista survey revealed that 67% of Thai consumers strongly agree that companies should be transparent and proactive in addressing environmental and social issues. Furthermore, PwC's 2024 Voice of the Consumer Survey indicates that consumers are not just talking. Instead, they are willing to put their money where their mouth is, with many prepared to pay 9.7% more for sustainable business practices. This growing consumer consciousness presents both challenges and opportunities for Thai businesses.
Challenges and opportunities
Thai businesses face unique sustainability challenges in the logistics sector. For one, the transportation sector in Thailand heavily relies on fossil fuels, contributing to significant carbon emissions. Additionally, complex and fragmented supply chains often result in unnecessary transportation and a heightened environmental impact. And because of high upfront costs and lack of awareness, the adoption of green technologies is also limited.
However, these challenges also present growth and innovation opportunities. For instance, businesses prioritizing sustainability can distinguish themselves in the market and attract consumers opting for eco-friendly brands. Plus, improved efficiency and reduced waste through sustainable practices can contribute to long-term cost savings.
The role of technology
Emerging technologies are also revolutionizing logistics and enabling a more sustainable future. Some key examples and trends include:
- Electric Vehicles (EVs): EVs offer a cleaner alternative to traditional diesel trucks, reducing greenhouse gas emissions and air pollution.
- Route Optimization Software: This technology helps to plan the most efficient routes, minimizing fuel consumption and carbon emissions.
- Green Packaging: Sustainable packaging materials, such as biodegradable plastics and recycled cardboard, reduce waste and environmental impact.
Going beyond carbon offsetting: A holistic approach to sustainability
While carbon offsetting plays a valuable role in mitigating emissions, it's crucial to recognize that it's not the only solution. After all, businesses can achieve significant carbon footprint reduction by implementing a holistic approach to sustainability that covers various aspects of their logistics operations. This includes exploring options like carbon insetting. Carbon offsetting vs carbon insetting is a matter of where the emission reduction occurs: offsetting focuses on compensating for emissions by funding external projects, while insetting prioritizes reducing emissions within a company's own operations and supply chain.
Here are some examples of promoting eco-friendly practices beyond carbon offsetting:
Supply chain optimization
Sustainable logistics and efficient supply chain management go hand in hand. And by optimizing your processes, you not only reduce costs but also minimize your environmental impact. Consider these key strategies to streamline your supply chain and make it greener:
- Consolidating Shipments: Combine multiple smaller shipments into larger ones to minimize transportation demands and fuel consumption, especially when shipping parcels overseas.
- Optimizing Routes: Utilize route optimization software to plan the most efficient delivery routes and reduce travel distances.
- Choosing Sustainable Transportation Modes: One example here is choosing logistics providers that use fuel from sustainable resources.
Sustainable packaging
The materials and practices used in packaging significantly impact a product's environmental footprint. And businesses can incorporate these sustainable processes into their operations:
- Using Eco-Friendly Packaging Materials: Choose biodegradable, recycled, or reusable packaging materials to minimize your waste and reliance on virgin resources.
- Reducing Packaging Size and Weight: You can also lower your resource consumption and transportation emissions by reducing the amount of packaging used per product.
- Implementing Waste Reduction Strategies: Encourage your customers to reuse or recycle packaging materials to further minimize environmental impact.
Warehouse efficiency
Warehouses also play a crucial role in logistics operations. At the same time, their efficiency directly impacts their environmental footprint. Thankfully, you can promote eco-friendly warehouse practices by:
- Installing Energy-Efficient Lighting: Switch to LED lighting to reduce your energy consumption and associated emissions.
- Utilizing Renewable Energy Sources: Invest in solar panels or other renewable energy sources for your warehouses and reduce your reliance on fossil fuels.
- Implementing Waste Reduction Strategies: You can also lessen your warehouse’s environmental impact by minimizing waste generation through recycling, composting, and other practices.
DHL GoGreen Plus: Your partner in sustainable logistics
Indeed, achieving sustainable logistics can be challenging. Fortunately, you can make the process easier with DHL Express’s GoGreen Plus. Here are some ways this initiative can empower your business to actively contribute to environmental protection while maintaining operational efficiency:
Carbon-neutral shipping
DHL Express’ GoGreen Plus ensures your local and international shipments are carbon-neutral through a combination of innovative shipping approaches. For example, we use Sustainable Aviation Fuel (SAF) derived from sustainable resources like animal fats, used cooking oil, and agricultural waste. Additionally, we invest in carefully selected climate protection projects worldwide, effectively offsetting the remaining carbon footprint of your shipments. By taking up DHL Express’ GoGreen Plus services for their logistics, businesses can practice carbon insetting and directly reduce the emissions within their supply chain.
Transparent carbon reporting
Understanding and tracking your carbon footprint is also vital in your business’s sustainability journey. As such, GoGreen Plus provides detailed carbon reports, offering transparency into the emissions associated with your shipments. These reports empower you to monitor progress, make informed decisions, and communicate your environmental commitment to stakeholders.
DHL Express' GoGreen Plus empowers businesses to embrace sustainable logistics by offering carbon insetting and transparent emissions tracking. This initiative has already helped over 40,000 businesses in Asia-Pacific adopt carbon-neutral shipping options. By choosing GoGreen Plus, businesses can actively reduce the environmental impact of their shipments. This is considered more sustainable than traditional carbon offsetting because it directly reduces emissions from the aviation sector, a major source of greenhouse gas emissions, rather than relying on potentially less impactful external projects.
So, if you want to discover how to embrace sustainable logistics and become more environmentally friendly, open a DHL Express business account today and choose GoGreen Plus for all your shipping needs. With every shipment, you'll actively reduce your carbon footprint and help build a greener future.
