Logistics contributes substantially to global emissions, and the industry is under pressure to innovate. Sustainable logistics helps companies align with consumer expectations, adhere to new regulations, and enhance efficiency. Here’s a look at trends transforming the logistics landscape.

Decarbonising transportation fleets

Transportation fleets for road, air, and sea are major emission sources in logistics. Companies are moving toward decarbonisation with low or zero-emission vehicles, such as electric and hydrogen-powered trucks.

Thanks to advancements in battery technology, electric vehicles (EVs) offer increased range and efficiency, making them more viable for logistics companies. For longer routes, hydrogen-powered vehicles provide fast refuelling and range comparable to diesel trucks.

Some logistics providers also integrate renewable energy, installing solar panels on vehicle roofs to partially power fleets. The National Grid’s Future Energy Scenarios report underscores that fleet decarbonisation will be crucial for meeting the UK’s net-zero emissions target by 2050.

Enhancing supply chain efficiency through digitalisation

Digitalisation is revolutionising logistics, enhancing efficiency and reducing waste across supply chains.

Technologies such as digital twins, IoT sensors, and real-time tracking offer complete supply chain visibility, helping companies optimise operations and cut emissions. IoT sensors monitor factors like temperature, route conditions, and vehicle performance, giving real-time insights that improve decision-making. Digital twins (virtual replicas of logistics systems) enable companies to simulate scenarios to better identify inefficiencies and streamline routes.

Sustainable packaging solutions

Packaging waste is a major challenge, particularly with e-commerce growth. To reduce waste, companies are turning to recyclable or biodegradable packaging materials. Modular, reusable packaging systems, like reusable pallet wraps, are gaining traction, significantly cutting single-use plastic in shipping. Smaller, customised packaging solutions further reduce waste by minimising unused space and filler materials.

Circular economy practices

Circular economy practices are gaining popularity as companies seek to keep materials in circulation longer, in turn minimising waste.

Sustainable logistics practices include refurbishing shipping materials, extending vehicle and equipment life, and recycling end-of-life components. Repurposing and recycling shipping containers, for instance, reduces demand for new materials. Additionally, reverse logistics (returning products for refurbishment or recycling) helps companies close the loop on resource usage.

Data analytics for environmental impact monitoring

Data analytics is crucial in tracking and reducing logistics’ environmental impact. By monitoring fuel consumption, emissions, and waste, businesses make data-informed sustainability improvements.

Platforms that integrate IoT, vehicle telematics, and warehouse management data help companies track their environmental impact, identify improvement areas, and set sustainability targets. Transparent environmental reporting also enables companies to demonstrate their sustainability efforts to stakeholders, meeting consumer demand for accountability and aiding in regulatory compliance.