Green Logistics: The Net-Zero Journey Transforming Supply Chains

Introduction

Did you know? More than 8% of global greenhouse gas emissions come from freight transport alone! When considering supply chains in their entirety, that number can exceed 50% of many companies' total emissions. 

The destructive potential of supply chains is alarming. In fact, more than half of an organisation’s carbon footprint often doesn’t come from manufacturing, it comes from how products move.

Despite the growing pressure for sustainability, Green Logistics is often considered a challenge reserved for large enterprises with vast resources. In reality, however, organisations of all sizes and industries are already taking practical, effective steps toward decarbonising their supply chains.

Green Logistics

Green Logistics goes beyond electric trucks and carbon offsets. It fundamentally redesigns how goods are moved, packaged, stored, and returned through a sustainability lens.

Key elements include:

• Cleaner Transport: Transitioning from diesel fleets to electric vehicles, rail, or sea freight.
• Smarter Routing: Using real-time data and AI to reduce empty miles and optimise fuel use.
• Sustainable Packaging: Minimising waste through reusable, compostable, or low-impact materials.
• Low-impact Warehousing: Designing distribution centres with renewable energy, better insulation, and strategic locations.
• Efficient Reverse Logistics: Improving how returns and product repairs are managed to reduce unnecessary transport.

The result is not only a reduction in economic impact, but also greater operational efficiency and resilience.

Companies Implementing Green Logistics

• Maersk – Decarbonising Global Shipping

Maersk launched the first carbon-neutral container ship powered by green methanol, setting a new standard for maritime logistics. Their goal is full net-zero operations by 2040, supported by carbon tracking tools that give customers visibility into their freight emissions.

• DHL – Electric Fleets and Sustainable Hubs

DHL is electrifying its delivery fleet, integrating biofuels in aviation, and optimising routes using data. The company is further investing in solar-powered logistics hubs and offering carbon-neutral delivery options to clients, turning sustainability into a competitive advantage.

• IKEA – Local Fulfilment and Emissions Reduction

IKEA is using smaller, urban warehouses to reduce last-mile distances. In several regions, 100% of home deliveries are made with zero-emission vehicles. Packaging redesigns also help reduce transport volume and improve efficiency.

• Patagonia – Circular Supply Chain Thinking

Patagonia embeds sustainability into logistics by using recycled materials, local suppliers, and offering repair services through its Worn Wear programme. Reverse logistics help extend the lifespan of products while keeping emissions low.

• Zedify and Startups – Urban Innovation

Zedify uses electric cargo bikes for zero-emission urban deliveries. Sendle offers carbon-neutral shipping for small businesses, while platforms like Olio reduce food waste through hyperlocal redistribution. These nimble models are proving that sustainability doesn’t require scale — just smart design.

Challenges to Green Logistics:

•  Infrastructure Gaps

Many companies face infrastructure limitations. Yet, partial implementations—like switching one facility to solar or piloting an EV delivery route—can build momentum without requiring complete overhauls.

•  Upfront Investment

Initial costs for vehicles, buildings, or software can be high. However, many companies recover these costs through long-term savings in energy, fuel, maintenance, and logistics efficiency.

•  Customer Behaviour

Not all customers will pay extra for green delivery. But studies show a growing segment values sustainability, even at a premium. Green logistics also creates brand equity, helping companies stand out in competitive markets.

• Complexity

Carbon accounting, supply chain audits, and emissions tracking can be overwhelming. Starting with one area like transport or packaging—makes the process manageable and reveals early wins.

Addressing the Challenges:

•  Reduced Operating Costs

Fuel, energy, and packaging make up significant logistics expenses. Optimising routes, switching to EVs, and using renewable energy in warehousing can lower operational costs over time.

• Brand Differentiation and Customer Loyalty

Consumer demand for sustainable brands is rising. Offering low-emission shipping or eco-friendly packaging strengthens brand trust and can increase customer retention—especially among climate-conscious demographics.

•  Improved Efficiency

Sustainable practices often align with operational improvements. Less packaging, fewer delivery miles, and more local warehousing lead to faster, leaner logistics with fewer disruptions.

•  Regulatory Compliance

Governments around the world are enforcing stricter emissions regulations and disclosure requirements. Businesses that act early will be better prepared and less exposed to future carbon-related costs or penalties.

•  Access to Green Finance

Sustainability performance is becoming a key factor in attracting investment. Lenders and investors increasingly favour businesses with strong ESG credentials, offering better terms and long-term value.

Final Thoughts

Sustainable logistics is no longer a futuristic ideal – it’s an active transformation reshaping industries today.

Organisations that begin now, regardless of size, position themselves ahead of incoming regulation, shifting market expectations, and rising resource costs. Green logistics not only reduces environmental impact; it also enhances supply chain agility, customer satisfaction, and long-term viability. Whether it means auditing carbon emissions from transport and warehousing or testing low-emission delivery solutions across regions, each improvement contributes to a broader shift that benefits not just the business, but the planet.

References:

• Freight Emissions – MIT Climate Portal
  https://climate.mit.edu/explainers/freight-transportation 
• Supply Chain Emissions Scope 3 – CDP
  https://www.cdp.net/en/press-releases/corporates-supply-chain-scope-3-emissions-are-26-times-higher-than-their-operational-emissions 
• Maersk Methanol Ship – Maersk News
  https://www.maersk.com/news/articles/2021/02/17/maersk-first-carbon-neutral-liner-vessel-by-2023 
• DHL Green Strategy – DHL Delivered
  https://www.dhl.com/global-en/delivered/responsibility/decarbonization-strategies-from-diy-to-do-it-together.html 
• IKEA EV Delivery – IKEA Sustainability News
  https://www.ikea.com/in/en/this-is-ikea/sustainable-everyday/zero-emission-vehicle-pub00d952a0/ 
• Patagonia Worn Wear – CircularX
  https://www.circularx.eu/en/cases/34/patagonia-worn-wear-program 
• Zedify Cargo Bikes – Cycling Industry News
  https://cyclingindustry.news/cargo-bikes-save-80-more-carbon-per-km-than-electric-vans-finds-study/