Navigation and Content
You are in  Panama
or Select a different country
The Logistics Trend Radar 6.0 - Delivering insight today, creating value tomorrow

Trends Filter

Use the toggles below to filter visible trends.

Focus Areas
Trend Clusters
Sectors
Reset Filters Apply & Close

Trend Name

Technology Trend
Impact:
Realization:

Read Full Article

Trend Overview

Show more

Millennials’ satisfaction with their organization’s commitment to sustainability can have a great impact on an organization’s retention of talent.

Source: Deloitte

Relevance to the Future of Logistics

Green Laws & Regulations

In politics, increased awareness around climate change has spurred urgency among general populations and policy makers. Although government environmental protection measures may increase the cost of living, citizens are more supportive than ever before.

Logistics companies should anticipate new regulations and prepare for compliance while also recognizing this as an opportunity for first-mover advantage. Some regulations, like the EU’s upcoming Sustainable Finance Disclosure Regulation (SFDR) and the UK’s Green Claims Code, push for transparency in carbon emissions and other environmental metrics that many logistics players currently lack, despite heavy customer demand. Other pieces of legislation incentivize electrification, with some countries even banning the sale of new gas and diesel cars within the next decade – commercial trucks are likely to be next. Meanwhile, singular policies can affect whole supply chains, like California’s new law to phase out single-use plastics and China’s ban on importing all solid wastes in 2021, prompting new ecosystems of buyers and sellers.

By foreseeing the implementation of these laws and their gradual spread from region to region, logistics organizations can gain competitive edge and benefit from early compliance.

Environmentally Conscious Customers

Logistics players are feeling unprecedented pressure of meeting customers’ environmental stewardship expectations, with many in the logistics industry beginning to commit to zero-waste pledges, new electric fleets, and more to remain competitive.

From a B2B customer perspective, logistics providers are crucial in helping drive corporate sustainability agendas, as about 90% of product emissions derive from supply chains. Today, B2B customers frequently ask about carbon footprint accounting procedures and carbon-neutral operations and transportation modes. Sustainable services are becoming the expectation and not the exception for their end customers, with 85% of consumers shifting purchase behavior in the last 5 years towards more sustainable options. Packaging and last-mile delivery are aspects of the supply chain most visible to B2C customers, and both are scrutinized heavily for environmental friendliness by end users.

Logistics providers whose services meet the sustainable stewardship standards of companies and individuals will see business opportunities grow, while those who do not will become less competitive.

Attracting & Retaining Talent

With the growing labor shortage, it is imperative for the logistics industry to do what it can to attract and retain talent. While there are many levers and areas for improvement, logistics organizations should recognize environmental stewardship is becoming a valued magnet for talent.

Recent studies have shown that younger workers are almost 3 times more likely to leave their jobs within 2 years if they are not satisfied with their employer’s commitment to sustainability, and are equally more likely to stay beyond 5 years if they are satisfied. Many employees are also aware of ‘greenwashing’ (the act of spending more resources on marketing sustainability credentials than on minimizing environmental impact) and are more wary and suspicious of employer claims than ever before. To be in line with these new employee expectations, logistics organizations should take clear positions on environmental topics and provide employees with directional agendas, programs, and training that work towards goals.

By sincerely pursuing environmental stewardship, logistics organizations can better attract and retain talent and stay more relevant in a more sustainable world.

Rise of ‘Buy Local’

There has been a gradual shift in B2B and B2C customer behavior to supporting local producers and suppliers, service providers, and business owners instead of purchasing goods from overseas. This ‘buy local’ movement is propelled by various needs, primarily reducing the carbon footprint in supply chains and also encouraging local entrepreneurship and diverse community economies for better resilience in the face of challenging global events.

Regardless of the motive, the logistics industry will need to adjust to accommodate the growing localization of supply chains. Global connections will still be essential – not all raw materials and products can be harvested or manufactured in a cost-competitive way in every region of the world – but to remain relevant, logistics organizations may need to focus more energy in or shift attention to developing local ecosystems. This includes cultivating, partnering with, and acquiring local logistics services, as well as better understanding the supply chain needs and routines of smaller local businesses and communities.

By doing this, logistics players can provide quality logistics services to ‘buy local’ participants while also reaping the potential environmental and resilience benefits of the ‘buy local’ movement.

Challenges

Logistics organizations wanting to become perfect environmental stewards may lack the necessary technologies; these may not yet be scalable or may not even exist for every aspect and segment of the supply chain.
The overhaul required to meet all customer sustainability demands may be too expensive or disruptive for the logistics organization, forcing small-step implementations at a speed and magnitude that fails to match customer expectations.
The ramifications of policies and regulations can be hard to predict, turning bets on technologies and new markets into potential financial risk.

This trend should be MODERATELY monitored, with some use cases applicable today.

Outlook

The trend of Environmental Stewardship will be a continuous undercurrent to supply chain development globally. As the logistics industry is challenged to meet the extensive sustainability demands of governments, customers, investors, and workers, it is in a unique position to drive and enable change. By embracing a leadership role in this, logistics organizations can facilitate a transformation to more sustainable, efficient, cost-effective, and resilient supply chains.

Stay Connected

Sign up for the DHL Innovation Insights newsletter for more trends direct to your inbox.

Yes, sign me up!

Tell us what you think!

Rate the report and tell
us what else you want to know.

Provide feedback here!

Need support prioritizing high impact trends for your business?

Request a complimentary Trend Radar Mapping session at your regional DHL Innovation Center and prepare for the future today.

Request a Session