Amidst the global concern for climate change and rising temperatures, organisations are being assessed for their social and environmental impact on their supply chains. Big businesses are expected to assume responsibility for how their manufacturing and supply affect the planet and its people. Hence, companies are adopting decarbonisation strategies and pushing for greener business solutions, leading to the supply chain becoming more environmentally responsible.
The global transportation sector is a major polluter, and in 2020, it produced approximately 7.3 billion metric tonnes of carbon dioxide (CO2) emissions. Most delivery trucks use diesel since that is the affordable fuel option, but using diesel increases the carbon footprint by releasing 13 per cent more CO2 into the atmosphere.
Smart warehouses that use energy management systems for efficiency, use of electric trucks, green sourcing to achieve carbon-neutral supply chain, and digitisation and automation are some of the measures global logistics majors are adopting to ensure environmental sustainability.
Indian logistics companies, in their effort to reduce carbon emissions, are turning to technology to minimise fuel wastage by introducing GPS-enabled toll payments. Other initiatives such as using electric vehicles for at least 30 percent of their shipments and solar roof-tops for warehouses are on the anvil to ensure green practices. The central government too is planning to promote LNG as an alternative fuel and to set up 1,000 LNG stations over the next three years owing to its lower cost and lesser emissions.
Click here to read the full report by Neeraj Bansal, COO-India Global, National Leader – Supply Chain Re-alignment, KPMG in India.
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