Logistics sector agrees on climate solutions but struggles to scale them – survey

Logistics companies and their clients are largely in agreement on which measures reduce emissions, but solutions that allow for achieving major progress are lagging behind, according to the Global Sustainable Logistics Survey (GSLS), published by Hamburg-based Kühne Logistics University (KLU) and its associated Kuehne Climate Center (KCC). 

Germany, famed for its industry and export prowess, is located at the heart of an increasingly integrated Europe. Transporting goods by road, rail, waterways and air today produces around a third of Germany’s total transport emissions, and freight volumes are expected to grow rapidly in the years to come. However, the sector has struggled to reduce its emissions in recent years, lagging behind decarbonisation efforts in energy production and industry. 

The report was based on responses from more than 1,000 people working in logistics across 64 countries and found widespread agreement on the need for solutions that require heavy investment, public infrastructure or policy support, such as expanding charging networks and rail transport.  However, many of these are not implemented fast enough, meaning companies struggle to scale emissions reduction efforts. 

The report offered recommendations for policymakers and company executives for scaling sustainability solutions and accelerating the decarbonisation of logistics. On the policy side, GSLS called for measures that focus on solutions rated effective but rarely adopted, such as low-carbon fuels, electrification and intermodal transport. Indeed, the transformation of freight transport is largely seen as an energy policy challenge by the German logistics sector. 

In addition, raising standards for widely adopted and effective operational and supply-chain solutions could help companies get more out of existing solutions, such as data-sharing rules and stricter green public procurement, the survey found. Policymakers should likewise harmonise regulations to enhance multimodality and cross-border freight, it added. This could include setting modal-shift targets for freight transport and investing in intermodal terminals, ports, and multimodal corridors. 

Recommendations for companies include moving ahead with capital-intensive solutions while demanding changes in policy frameworks. “Companies that move early build know-how and meet customer expectations before regulation requires it,” the report notes. It also calls for logistics providers to work with peers, customers and suppliers through industry initiatives and buyers’ alliances, which pool demand and give suppliers a basis for investment. The use of an internal carbon price to guide investment decisions and prepare for external carbon pricing would also make climate impact part of the business case. 

The report adds that not every measure will fit every context or deliver the same benefit for the same effort and also points out regional variations, as Asia, South America and Europe start from different positions in infrastructure, geography, regulation, skills and climate risk.