Authored by: Anish Kumar Jha, Managing Director Kuehne+Nagel India, Sri Lanka and the Maldives
The logistics industry plays a critical role in global trade and economic development, but it also has a significant environmental impact. In India, freight activity is expected to grow fivefold by 2050, highlighting the need for urgent adoption of more sustainable practices. As countries work towards their net-zero commitments, the logistics sector must evolve by integrating low-emission technologies, alternative fuels, and efficient supply chain strategies.
More Sustainable Logistics Practices: Reducing Carbon Emissions
Freight transport accounts for 8-10% of global greenhouse gas (GHG) emissions. In India, achieving net-zero emissions by 2070 requires a shift towards more sustainable logistics solutions. Key strategies include transitioning to low-carbon fuels such as sustainable aviation fuel (SAF), sustainable marine fuel (SMF), use of electric vehicles, as well as investing in renewable energy to power logistics operations.
Several companies are already experimenting with electric and hybrid vehicles, optimizing delivery routes, and shifting freight from road to rail to cut emissions. The Indian government has also been setting regulatory targets to encourage more sustainable freight practices, including SAF blending mandates.
Eco-Friendly Packaging and Transportation
Sustainability in logistics extends beyond fuel choices to packaging and transportation methods. Many businesses are adopting biodegradable and recyclable materials to minimize waste. Pre-stretched plastic wrap film, for example, is being used to improve efficiency while reducing plastic consumption.
Electric vehicle (EV) adoption is gaining momentum in last-mile delivery services, helping cut emissions in urban areas. Some companies have partnered with clean energy firms to establish dedicated EV charging infrastructure, ensuring a reliable power supply from renewable sources. Additionally, intermodal transportation—integrating rail, road, and sea freight—has proven effective in optimizing efficiency and reducing environmental impact.
More Low-Carbon Fuels and Electric Vehicles:
Alternative fuels and electric mobility are at the forefront of logistics transformation. The deployment of SAF in aviation, hydrogen fuel in trucking, and SMF in shipping are reducing dependence on fossil fuels. However, the impact of EV adoption depends on the energy mix used for charging. Countries investing in renewable energy are better positioned to maximize the carbon reduction benefits of electrified logistics.
Government policies continue to drive advancements in more sustainable transportation. India, for instance, has introduced EV incentives and mandates for increasing SAF use, contributing to low-carbon supply chains.
Leveraging Technology for Environmental Impact Reduction
Technology plays a pivotal role in low-carbon supply chain practices. Companies are increasingly using artificial intelligence (AI), machine learning, and big data analytics to optimize routes, consolidate shipments, and improve load planning. Reverse logistics—recycling and reusing products—has also gained traction, reducing waste and extending product life cycles.
Smart warehousing solutions, such as energy-efficient lighting, automated inventory management, and real-time tracking, contribute to reducing emissions and operational costs. Blockchain is being explored for enhancing supply chain transparency, helping businesses track carbon footprints and meet regulatory compliance.
Regulatory and Industry Trends
Global and local regulations are shaping the future of more sustainable logistics. Policies such as RefuelEU Aviation and the IMO’s GHG strategy set clear targets for emission reductions in shipping and aviation. In Asia, several countries, including India, are establishing their own emissions regulations, SAF mandates, and EV adoption targets to drive more sustainable logistics operations.
Sustainability is also becoming a business imperative, with investors, consumers, and regulators demanding greater accountability. According to the Science-Based Targets initiative, there has been a significant increase in companies committing to carbon reduction goals, particularly in Asia. As these commitments translate into action, businesses are prioritizing more sustainable logistics solutions to align with long-term sustainability targets.
Conclusion
Sustainability is a responsibility for the logistics industry. As companies, governments, and stakeholders work towards decarbonization, the adoption of sustainable fuels, electric mobility, optimized supply chains, and eco-friendly packaging will drive meaningful change. The transformation of logistics towards more sustainable practices is a collective effort that will not only reduce carbon emissions but also enhance efficiency, resilience, and long-term profitability in the sector.
