In India, freight is likely to grow five-fold by 2050, highlighting need for adoption of sustainable practices. As nations work towards net zero commitments, the industry must evolve by integrating low-emission technologies, alternative fuels and efficient supply chain strategies.
Sustainable practices
Reducing carbon footprint: Freight transport accounts for 8 to 10 per cent 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 EVs and investing in renewable energy to power logistics operations.
Many firms are experimenting with EVs and hybrid vehicles, optimising delivery routes, and shifting freight from road to rail to cut emissions. The government has been setting regulatory targets to encourage sustainable freight practices, including SAF blending mandates.
Eco-friendly packaging, transportation: Sustainability in logistics extends beyond fuel choices to packaging and transportation methods. Many businesses are adopting biodegradable and recyclable materials to minimise waste. Pre-stretched plastic wrap film, for example, is being used to improve efficiency, while reducing plastic consumption.
Adoption of EVs is gaining momentum in last-mile delivery services, helping cut CO2 footprint 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 optimising 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. The impact of electric vehicles adoption depends on the energy mix used for charging. Countries investing in renewable energy are better positioned to maximise carbon reduction benefits of electrified logistics. Government policies continue to drive advancements in sustainable transportation. India, for instance, has introduced EV incentives and mandates for increasing SAF use, contributing to low-carbon supply chains.
Environmental impact reduction: Technology plays a pivotal role in low-carbon supply chain practices. Companies are increasingly using AI, Machine Learning, and big data analytics to optimise routes, consolidate shipments, and improve load planning. Reverse logistics—recycling and reusing products—has gained traction, reduced 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 to enhance supply chain transparency, help businesses track emissions 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 IMO’s GHG strategy set clear targets for emission reductions in shipping and aviation. Sustainability is a responsibility for logistics industry. As firms, govts and stakeholders work towards decarbonisation, adoption of sustainable fuels, electric mobility, optimised supply chains, and eco-friendly packaging will drive meaningful changes.
