Discover the benefits of sustainable shipping and the innovative solutions that can set your business on the path to a greener future.
When it comes to your logistics operations, sustainability should be more than just a buzzword. Green logistics (or sustainable logistics) is all about reducing the environmental impact of your supply chains. Whether it's by adopting eco-friendly packaging, optimizing transportation routes or investing in alternative fuels, you have the power to make a difference.
This guide will walk you through the benefits of green shipping and how – with the help of DHL – you can lead your business into a sustainable future. From carbon offsetting to electric vehicles, it will give you the insights you need to take your logistics operations to the next level.
Benefits of green logistics
Without a doubt, the most important industry trend at the moment is green logistics. And for good reason. Investing in a sustainable logistics strategy can help your business in many different ways.
Enhance your brand’s reputation
Consumers are increasingly concerned with sustainability, and are drawn to brands that align with their values. In fact, 88% of consumers will be more loyal to a company that supports social or environmental issues1. Establishing clear sustainability goals for your business – and being transparent about them on your website – will resonate well with prospects.
Improve your business’s efficiency
A sustainable logistics strategy does more than just cut waste; it streamlines processes, making your business more efficient. For example, using route optimization software ensures that your delivery fleet spends less time on the road, reducing both emissions and fuel costs.
Save money
Yes, some sustainable logistics strategies require upfront investment, but the long-term savings can be huge. McKinsey2 found that campanies adopting Green Supply Chain Management practices – like reducing greenhouse emissions, recycling, cutting waste, and using renewable energy – see a positive impact on their bottom line. Why? Because green logistics means greater efficiency and less waste, – both of which lower your costs.
Mitigate risk and ensure compliance
As sustainability regulations become stricter, it’s more important than ever for your business to stay compliant. By adopting a sustainable logistics strategy, you can protect your brand from reputational damage and avoid costly financial penalties – all while making a positive impact.
Regulations like the EU Emissions Trading System are designed to reward businesses that actively reduce their carbon footprint. By getting ahead of these changes now, you’re not just ensuring compliance; you're positioning yourselves as a business that values both the environment and long-term success.
Green shipping options
With the continued rise of retail-related deliveries and returns, carbon emissions from e-commerce logistics are forecast to hit around 25 million metric tonnes by 2030, according to Statista3.
But still, there are steps your business can take to minimize its negative impact on the environment. And if every company takes these steps, it could make quite a difference to that rather depressing prediction.
Evaluate your green packaging processes
Getting your goods to your customers without damage should be a priority, but reducing 'empty' space should be too. Using excessively large boxes is a waste of materials, not to mention the extra shipping costs incurred.
Instead, ensure your items are packed in correctly sized boxes, or design the packaging yourself according to your products’ unique specifications. You can also highlight to your customers that you’ve cut back on packaging – for example, a sticker with 'Now with 10% less packaging' on the box will show your commitment to sustainability and reflect well on your brand.
Just as important as your packaging sizes are the materials you use. Compostable mailing bags, recycled cardboard, mushroom-based containers…there are all sorts of eco-friendly, green packaging innovations out there, so it’s well worth looking into the options available to you.
Take steps towards carbon offsetting and insetting
Every business has a carbon footprint, which is the total amount of greenhouse gases emitted directly or indirectly by its activities. Carbon offsetting involves “balancing out” these emissions by funding carbon reduction projects outside the sector of impact. Examples include reforestation and conservation projects, investment in renewable energy infrastructure, and providing clean water to disadvantaged communities.
Meanwhile, carbon insetting is when businesses invest in carbon reduction schemes within their own supply chains. Examples include a clothing manufacturer planting trees outside its factory, a restaurant growing its own vegetables (to reduce the emissions of the supplier delivering them), or a business switching to sustainable fuel (which we discuss later in this article.)
You can learn more about other important sustainability trends in logistics here.
“In the long-term, greater decarbonization of transport is key to driving positive change. Future-proofed logistics companies should think now about developing a stringent insetting strategy.”
Tim Scharwath, CEO DHL Global Forwarding, Freight
Offer sustainable returns
It’s estimated that up to 30% of all products ordered online are returned to the sender4. That’s a big hit for your business’s profits. For ways to reduce that hit, and still offer your customers excellent service, make sure you check out our piece on returns management best practices.
Aside from the financial impact to your business, the extra shipping emissions caused by customer returns are bad news for the environment too. But there is a way to make the process more sustainable.
Reverse logistics promotes the recycling, repurposing, repairing and resale of products, with the aim of extending their lifecycle. It means less goods end up in landfill, and, with 67% of consumers checking an online retailer’s return policy before committing to a purchase5, it could win you some valuable extra sales. Our dedicated reverse logistics guide will help you create your own strategy.
Partner with a sustainable shipping carrier
In DHL’s Global Online Shopper Survey 2023, 64% of European consumers said sustainable deliveries are important to them, while DHL is seen as the most sustainable of all the leading international delivery companies. So, for a greener final mile, you know who to speak to!
With DHL Express, you have access to a range of dedicated insetting and offsetting solutions (which you can read more about below). Offering such delivery options at your checkout through DHL’s GoGreen Solutions will not only help reduce your carbon footprint but also resonate with environmentally conscious consumers, reflecting well on your brand and driving customer loyalty.
Green shipping with DHL: Your sustainable strategy
It’s no secret that the transportation and logistics industry is a large contributor to global emissions. So, in 2017, DHL became the first logistics company in the world to set a target of reducing its greenhouse gas emissions to net zero by 2050. To achieve this ambitious goal, the company has developed several programs to help businesses like yours implement sustainable shipping strategies.
Here are some of the options available.
Alternative fuels with DHL GoGreen Plus
In 2023, DHL Express launched GoGreen Plus, a dedicated solution to help businesses reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel. SAF is a biofuel that is produced from renewable sources such as vegetable oils, animal fats, waste products, and agricultural crops. SAF is specifically designed to be used as a substitute for traditional jet fuel and can reduce greenhouse gas emissions by up to 80% compared to fossil fuels. The service can be selected for individual shipments, making it a flexible option for SMEs and e-commerce businesses with smaller cargo loads.
GoGreen and carbon offsetting
DHL GoGreen solutions are all about helping you take control of your carbon footprint. With their carbon transparency tools, you can easily measure the environmental impact of your shipments. Plus, GoGreen's logistics experts are ready to work with you to create custom strategies for reducing your supply chain's footprint – whether that's through consolidating shipments or optimizing delivery routes.
On top of that, by purchasing CO2 credits, DHL Express supports high-quality GoGreen climate protection projects around the world. This means, when you use their carbon-neutral GoGreen products and services, you're not just offsetting your carbon footprint, you’re also contributing to meaningful, impactful projects that make a real difference.
Electric vehicles
In the world of logistics, DHL Express is leading the way in the use of electric vehicles. They’ve committed to rolling out 80,000 EVs for last-mile deliveries by 2030, which means 60% of their fleet will be electric by that point. And it’s not just on the roads – in August 2021, the DHL made aviation history by ordering 12 fully electric “Alice” e-cargo planes bringing green technology to the skies too. So when you ship domestically or internationally with DHL, you can feel good knowing your goods are being transported in the most eco-friendly way possible, with reduced emissions every step of the way.
“We are turning our yellow Group into a green company and making an important contribution to our planet and society."
Frank Appel, former DHL Express CEO
Green packaging
Research shows that 24% of an e-commerce package is empty space. DHL saw this as an opportunity to make shipping greener and smarter. Their solution – OptiCarton – is an AI-powered packaging solution that reduces waste and cuts costs. Combining advanced algorithms with a sophisticated on-demand packaging system, Opticarton optimizes how boxes are filled, making shipments more efficient. The result? More eco-friendly shipments and lower transportation costs, helping customers like you save money and reduce your environmental impact.
Green shipping and delivery for a more sustainable tomorrow
In the pursuit of a greener future, the logistics industry has a big role to play. By embracing sustainable shipping practices like eco-friendly packaging, carbon offsetting, and the use of electric vehicles, businesses like yours can significantly reduce their environmental impact.
DHL, a global leader in logistics, is committed to driving sustainability in the industry. Through its various GoGreen solutions, DHL can help you to reduce your carbon footprint and make eco-conscious choices. From offering carbon-neutral shipping options to investing in alternative fuels and electric vehicles, DHL is paving the way for a more sustainable future.
Partnering with a sustainable shipping carrier like DHL is not only a responsible choice but also a strategic business move. It allows you to align with the growing consumer demand for eco-friendly delivery options, enhancing your brand image and fostering customer loyalty. By choosing DHL, you can access a wide range of sustainable shipping solutions that cater to your specific needs and help you achieve your environmental goals.
To access all the industry-leading sustainable shipping solutions discussed above – and many more – open a DHL Express Business Account. Choose a greener future, below.
